> >
Author and lecturer Leo Buscaglia once talked about a > > contest he was
asked to judge. The purpose of the contest was > > to > > find the most
caring child.

> > The winner was a four year old child whose next > > door neighbor was an
elderly gentleman who had recently lost > > his wife. Upon > > seeing the
man cry, the little boy went into the old > > gentleman,s yard, > > climbed
onto his lap, and just sat there. When his mother > > asked him what he > >
had said to > > the neighbor, the little boy said, &Nothing, I just helped >
> him cry.8
> > _________________________
> > Teacher Debbie Moon,s first graders were > > discussing a picture of a
family. > > One little boy in the picture had a different > > color hair
than the other family members. One child suggested > > that he was > >
adopted and a > > little girl said, &I know all about adoptions because I >
> was adopted.8 &What does it mean to be adopted?8 asked another > > child.
&It > > means,8 said the girl, &that you > > grew in your mommy,s heart
instead of her > > tummy.8
> > ________________________
> > A four year old was at the pediatrician for a > > check up. As the
doctor looked down her ears with an otoscope, > > he asked, &Do> > > > you
think I,ll find Big Bird in here?8 The little girl stayed > > silent. Next,
> > the doctor took a tongue > > depressor and looked down her throat. He
asked, &Do you think > > I,ll find the Cookie Monster down there?8 Again,
the little > > girl was silent. > > Then the doctor put a stethoscope to her
chest. As he > > listened to her heart beat, he asked, &Do you think I,ll
hear > > Barney in > > there?8 &Oh, no!8 the little girl replied. &Jesus is
in my > > heart. Barney,s > > on my underpants.8
> > _____________________
> > As I was driving home from work one day, I > > stopped to watch a local
Little League baseball game that was > > being played > > in a park near my
home. > > As I sat down behind the bench on the first-base line, > > I asked
one of the boys wha the score was. We,re behind 14 to > > nothing,8 he > >
answered with a smile. > > &Really,8 I said. &I have to say you don,t look
very > > discouraged.> >
> > &Discouraged?8 the boy asked with a puzzled > > look on his face. 8Why
should we be discouraged? We haven,t > > been up to bat > > yet.8
> > ______________________
> > Whenever I,m disappointed with my spot in > > life, I stop and think
about little Jamie Scott. Jamie was > > trying out for a > > part in a
school play. > > His mother told me that he,d set his heart on > > being in
it, though she feared he would not be chosen. On the > > day the parts > >
were awarded, I went with her to collect him after school. > > Jamie rushed
up > > to her, eyes shining with pride > > and excitement. &Guess what Mom,8
he shouted, > > and then said those words that will remain a lesson to me: >
> &I,ve been chosen> > > > to clap and cheer.8
> > ______________________
> > A lesson in &heart8 is my little 10 year old daughter, Sarah, > > who
was born with a muscle missing in her foot and wears a > > brace all the
time. > > She came home one beautiful spring day to tell me she > > had
competed in &field day8 > > That,s where they have lots of races and other >
> competitive events. > > Because of her leg support, my mind raced as I
tried > > to think of encouragement for my Sarah, things I could say to > >
her about not > > letting this get her down, but before I could get a word
out, > > she said > > &Daddy, I won two of the races!8 I couldn,t believe
it! And > > then Sarah said,> > > > &I > > had an advantage. &Ah. > > I knew
it. I thought she must have been given a head > > start...some kind of
physical advantage. But again, before I > > could say > > anything, she
said, > > &Daddy, I didn,t get a head start... My advantage was I > > had to
try harder!8
> >> > _________________________
> > An Eye Witness Account from New York City, on > > a cold day in
December: A little boy about 10 years old was > > standing > > before a shoe
store on the roadway, barefooted, peering > > through the > > window, and
shivering with cold. A lady approached the boy and > > said, &My > > little
fellow, why are you looking so earnestly in that > > window?8 &I was > >
asking God to give me a pair of shoes,8 was the boy,s reply. > > The lady
took > > him by the hand and went into the store > > and asked the clerk to
get half a dozen pairs of socks for the > > boy. > > She then asked if he
could give her a basin of water > > and a towel. He quickly brought them to
her. She took the > > little fellow to > > the back part of the store and,
removing her gloves, knelt > > down, washed his > > little feet, and dried
them with a towel. By this time the > > clerk had > > returned with the
socks. > > Placing a pair upon the boy,s feet, she purchased him a pair > >
of shoes. She tied up the remaining pairs of socks and gave > > them to him.
> > She patted him on the head and said, &No doubt, my little > > fellow,
you > > feel more comfortable now?8 > > As she turned to go, the astonished
lad caught > > her by the hand, and looking up in her face, with tears in
his > > eyes, > > answered the question with these words: > > &Are you God,s
Wife?8


We will agree to "shall" for netting section.

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


John,

It seems to me that using a risk-free rate is not appropriate. I shall
elaborate on my
position and send you a longer message this afternoon (my time).

Vince

	Enron Capital & Trade Resources Corp. - Europe

	From:  John Bottomley                           06/19/2000 05:55 AM

To: Vince J Kaminski/HOU/ECT@ECT
cc: John Sherriff/LON/ECT@ECT, Dale Surbey/LON/ECT@ECT
Subject: Equity investment Fair Value in Turkey

Vince,

John Sherriff recommended that I contact you regarding an interesting (and
potentially contentious) option valuation issue we are currently dealing with
in London.  We hold longish term options in a private company in Turkey which
is currently seeking to IPO.  The issue we are discussing with RAC is which
discount rate (i.e., risk-free? and if so Turkish or US?) should we use to
value these options

First, some additional information.

Option characteristics:
-- 116,000 options (representing 9% of the company)
-- Term:  minimum of 3 years but possibly longer -- still being renegotiated
-- Strike price:  20% below the upcoming IPO price (either priced in US$ or
Turkish Lire)

We currently hold the above number of options with a fixed price of $118.75
per option but 34,800 expire on July 15, 2000 with the remainder expiring on
December 15, 2000.  The company's investment bankers (ABN / AMRO Rothchilds)
are concerned regarding the strike price because it values the company at
$118 million and they believe the company is worth approx $300 million.  Due
to such a large "valuation gap", they originally encouraged us to exercise
all of the options by the end of June (IPO target date in late Sept / early
Oct).  Our counter-proposal is to "swap" instrinsic value for time value by
repricing the options strike higher while extending their term.

We are currently negotiating with RAC the most appropriate discount rate to
use to value the options.  We are arguing that the US risk free is the most
appropriate discount rate and their current position is that the company's
historical senior debt cost (18%) is the more appropriate number to use
(although admit that this is not justifiable -- only a proxy)

A few key points:
-- RAC is valuing the options via Crystal Ball simulations such that this "to
be negotiated" discount rate is used to calculate the PV of the future
options intrinsic value in 3 years
 (i.e., for Black-Scholes, a higher discount rate yields a higher value but
the opposite is true using Crystal Ball simulation)
-- The model simulates both an IPO / no IPO case and in the case of no IPO we
have put options for our equity priced at a fixed 17% return
-- The model assigns a 30% illiquidity discount
-- In the simulated cases where the options are out-of-the-money, we
obviously do not exercise.

We understand that for Black-Scholes option valuation, one needs to be able
to construct a comparable portfolio of cash flows using equity futures and
the risk free in order for the valuation to hold.  And here is where we reach
our difficulty:  since the company doesn't currently trade on a public market
and since equity futures do not exist for Turkish equities, RAC is arguing
that a US risk free is not appropriate to use.  Our argument is that the
non-IPO scenario, a 30% illiquidity discount and a US$ based option
volatility are already in the factored into the simulation.  As such, we feel
RAC's approach is double counting.

If you managed to get through the above, your a patient man!  I'll give you a
call today or tomorrow after you've had a chance to digest the information.

Regards,
John Bottomley


[IMAGE]
 Anna Kournikova Exclusive Fantasy Offer!  Save 10% on Anna's 2002 Calendar! Yes 12 months of Anna!  Simply enter the coupon code FNTSYCAL in step 5 of the checkout process to receive your discount.  Offer expires 11/30/01.  http://www.sportsline.com/links/6/1/135/sffer1120tr.cgi   Attention Fantasy Fans!  Subscribe to The Sporting News  now and get 4 FREE issues! Hurry!   Brought to you by   Sponsorship Bar You are receiving these e-reports because you have signed up for CBS SportsLine.com Fantasy Football.  To customize, reschedule, or turn off these reports please  click here    Standings, Summary  [IMAGE]East Division Team W L T Pct Back Strk Div Wks PF Back PA Martin  6 5 0 0.545 0.0 W1 3-3-0 2.0 976.0 13.0 895.0 JWillie  6 5 0 0.545 0.0 W1 3-2-0 2.0 952.0 37.0 948.0 Hunter  5 6 0 0.455 1.0 W2 3-2-0 0.0 983.0 6.0 977.0 Frank  5 6 0 0.455 1.0 L1 4-2-0 2.0 923.0 66.0 997.0 Neal/McKay  1 10 0 0.091 5.0 L9 1-5-0 0.0 788.0 201.0 978.0 West Division Team W L T Pct Back Strk Div Wks PF Back  PA Russell  9 2 0 0.818 0.0 W1 4-2-0 1.0 989.0 0.0 843.0 Matty  6 4 1 0.591 2.5 L1 3-1-1 2.0 987.0 2.0 1015.0 Tori  6 5 0 0.545 3.0 L1 4-2-0 1.0 907.0 82.0 839.0 Bass/Hull  5 5 1 0.500 3.5 W2 1-3-1 1.0 947.0 42.0 922.0 Giggles  5 6 0 0.455 4.0 L2 1-5-0 0.0 865.0 124.0 903.0  Statistics, Scoring  [IMAGE]Neal/McKay Actives Player Pos Scoring Score Manning, Peyton  QB 370 PaYd (18 Pts), 1 PaTD (15) (4 Pts), 4 PaInt (-8 Pts) 14.0 Anderson, Mike  RB 118 RuYd (11 Pts), 1 RuTD (1) (6 Pts), 13 ReYd (1 Pt) 18.0 Smith, Lamar  RB 37 RuYd (3 Pts), 1 RuTD (1) (6 Pts) 9.0 Hakim, Az-Zahir  WR 29 ReYd (2 Pts) 2.0 McCardell, Keenan  WR 80 ReYd (8 Pts) 8.0 Rice, Jerry  WR 65 ReYd (6 Pts) 6.0 Stover, Matt  K 1 FG (41) (4 Pts), 3 XP (3 Pts) 7.0 Broncos  DT 4 SACK (4 Pts), 2 DFR (4 Pts), 191 YDS (4 Pts) 12.0    [IMAGE] TOTALS     76.0 Neal/McKay Reserves Player Pos ST Scoring Score Barber, Tiki  RB RS 124 RuYd (12 Pts), 1 RuTD (12) (6 Pts), 41 ReYd (4 Pts) 22.0 Bryson, Shawn  RB RS 26 RuYd (2 Pts) 2.0 Dayne, Ron  RB RS 26 RuYd (2 Pts) 2.0 Jones, Freddie  TE RS   0.0 Richardson, Tony  RB RS 18 RuYd (1 Pt), 1 RuTD (1) (6 Pts), 28 ReYd (2 Pts) 9.0 Testaverde, Vinny  QB RS   0.0     [IMAGE] TOTALS       35.0  NFL Reports, Player Updates  [IMAGE]Latest NFL Player News  Mark Brunell , QB JAC - JWillie Updated 11/27/01 Brunell is questionable for Monday's game against Green Bay, the third straight week his status has been in question due to continued pain in his quadriceps muscle. He will be limited again in practice, and it's probably a good idea to keep him on reserve for Week 12 in your league.  Terrell Davis , RB DEN - JWillie Updated 11/27/01 Davis should be able to return from arthroscopic knee surgery in time for Sunday's game agains! t ! Miami. He will practice this week before a final decision is made, but we're skeptical the Broncos won't have him split carries with Mike Anderson, limiting both players' Fantasy values.  Keith Poole , WR DEN - Free Agent Updated 11/27/01 Poole has bruised ribs that will likely keep him on the sidelines for Sunday's game against Miami. If he can't play, Kevin Kaspar would start in his place, and the Denver passing game would further suffer.  Rod Smith , WR DEN - Matty Updated 11/27/01 Smith now has two sprained ankles, and is questionable for Sunday's game against Miami. If he can't play, then the Broncos might have to start Kevin Kaspar and Chris Cole at wideout, depending on Keith Poole's recovery from a rib injury.  James Jackson , RB CLE - Hunter Updated 11/27/01 Jackson's ankle remains sore, and he will be re-evaluated Wednesday to determine his status for Sunday's game against Tennessee. Benjamin Gay and Jamel White would continue to split carries if Jackson can't go.  Neil Rackers , K CIN - Free Agent Updated 11/27/01 Bengals Head Coach Dick LeBeau said Monday he has not yet made a decision on the status of Rackers, who missed two field-goal chances Sunday. He is 9-for-18 in field goals this season, and Jaret Holmes has been on the practice squad since Nov. 1. Rackers will likely retain the job for Sunday's game against Tampa Bay, but he's a very risky Fantasy starter based on his struggles.  Akili Smith , QB CIN - Free Agent Updated 11/27/01 Bengals Head Coach Dick LeBeau said Monday that Smith might be promoted to No. 2 quarterback, according to The Cincinnati Enquirer . "If that's what they're going to do, maybe the Bengals need to get rid of me," Smith said, citing a desire to be traded if he's used in a mop-up role. He's not a recommended Fantasy choice, although it's important to note that he's now likely next in line if Jon Kitna gets hurt.  Terry Allen , RB BAL - Tori Updated 11/27/01 Allen, who remains out with a broken hand, could return to the lineup on Dec. 16. With the Ravens losing Jason Brookins to an injury, don't be surprised if Allen takes back the starting job once healthy. Hold onto him if you have the room on your reserve list or play in a deeper league.  M! o! e Williams , RB BAL - Free Agent Updated 11/27/01 Williams becomes the Ravens' featured back after the injury to Jason Brookins. If you play in a deeper league or are desperate for a running back, consider picking up Williams, although you shouldn't expect him to post great stats unless the matchup is very favorable.  Jason Brookins , RB BAL - Tori Updated 11/27/01 Results of X-rays on Brookins' foot revealed a fracture of a bone in his small toe, which will sideline him for at least four weeks and possibly the rest of the season. Moe Williams becomes the Ravens' starting running back, and might be worth adding to your roster in a deeper league.  Wayne Chrebet , WR NYJ - JWillie Updated 11/27/01 Chrebret did not practice Monday because of a shoulder injury. However, The New York Newsday reports that he is expected to play in Sunday's game.   Jake Arians , K BUF - Free Agent Updated 11/27/01 Arians has been released by the Bills. Buffalo has signed Shayne Graham to replace him.   Edgerrin James , RB IND - JWillie Updated 11/2! 7/! 01 Colts coach Jim Mora said James' surgery to repair a torn ligament in his left knee was successful Saturday in Miami.  Mora said he received the news from orthopedic surgeon Dr. Arthur Rettig, a team physician. "I spoke with him Saturday and he told me it went very well," Mora said. James, the two-time NFL rushing champion, injured the knee when he was tackled awkwardly late in a game at Kansas City on Oct. 25. He was placed on injured reserve last week. James' rehabilitation is expected to take seven months. He is not expected to take part in either of the Colts offseason minicamps. Team president Bill Polian has not said whether James will be ready for the start of training camp.     Terry Glenn , WR NE - Matty Updated 11/27/01 Glenn could be put on injured reserve if he doesn't recover from a hamstring injury soon. That would mean the end of his season, and perhaps the end of his Patriots career. "I haven't reached it yet," coach Bill Belichick said Monday when asked when he would decide if the roster spot would be better spent on someone other than Glenn. "But as each day goes by, it gets a little bit closer."      Shayne Graham , K SEA - Free Agent Updated 11/27/01 The Buffalo Bills signed Graham as their kicker Tuesday, a day after Jake Arians was released following a missed point-after against the Miami Dolphins. Graham had been released by the Seattle Seahawks before the start of the season.   Stephen Alexander , TE WAS - Free Agent Updated 11/27/01 Alexander, who has been hampered by a ankle injury, returned to action on Sunday. He didn't start, however, and may lose playing time to both Walter Rasby and Zeron Flemister for the rest of the season. Unless you play in a deeper league, dropping Alexander is advisable.  Az-Zahir Hakim , WR STL - Neal/McKay Updated 11/27/01 Hakim, who is dealing with an ankle injury, played in Monday night's 24-17 loss to Tampa Bay. He had three catches for 29 yards in the game.   Kevan Barlow , RB SF - Tori Updated 11/27/01 Barlow suffered a dislocated shoulder during Sunday's win over Indianapolis. "It's throbbing," Barlow told the Contra Costa Times. "I couldn't really sleep last night. I had to sleep sitting up. It's hurting." Barlow is listed as doubtful for Sunday's game against Buffalo, so be sure to place him on reserve.     Terrell Owens , WR SF - Martin Updated 11/27/01 Owens suffered a sprained right foot on Sunday to go along with his sprained left ankle. X-rays were negative, but Owens' foot was placed in a protec! ti! ve boot as a precaution. He is expected to miss some practice time this week, but he will be in the starting lineup on Sunday when the Niners face Buffalo.   Jeff Thomason , TE PHI - Free Agent Updated 11/27/01 Thomason suffered a hyperextended knee during Sunday's loss to Washington. He missed practice on Monday, and is status for Week 12 is uncertain at this time. The reserve tight end has very little value as a Fantasy player.   Donald Driver , WR GB - Free Agent Updated 11/27/01 Driver, who has been inactive for three straight weeks due to a thigh injury, returned to practice on Monday. His status for Week 12 remains unclear, but he's not worth starting on your Fantasy team in any event.   Tyrone Davis , TE GB - Free Agent Updated 11/27/01 Davis, who has been out all year due to a hamstring injury, will likely find out what his status with the Packers will be this week. Depending on his health, the team will either activate him, place him on injured reserve or cut him altogehter.   James Stewart , RB DET - Hunter Updated 11/27/01 Stewart, who suffered a neck stinger in last Thursday's game against Green Bay, is expected to be available for Week 12. He'll have a tough time posting good Fantasy numbers against Chicago's tough run defense, but the lack of depth at running back in the league makes it tough to bench him.   Charlie Batch , QB DET - Free Agent Updated 11/27/01 According to the Detroit Free Press , Batch is expected to start Sunday's game against Chicago despite a groin injury. "This is Charlie's offense," coach Marty Mornhinweg said. "He practiced a little bit today...he was in all weekend getting (the injury) treated...I would expect him close to full speed Wednesday." He'll likely lose snaps to rookie QB Mike McMahon, however, so starting Batch is a risky proposition.   Jackie Harris , TE DAL - Free Agent Updated 11/27/01 Harris missed last week's game against Denver due to a hamstring injury. The veteran tight end is listed as day to day.   Anthony Thomas , RB CHI - Martin Upda! te! d 11/27/01 According to coach Dick Jaroun, Thomas' status for Week 12 is still uncertain. In fact, the Bears don't expect to know if Thomas, who is dealing with a hamstring injury, will be available until later in the week.   Brad Hoover , RB CAR - Free Agent Updated 11/27/01 Hoover (neck) will likely be held out of practice this week. However, the Panthers are hopeful that he'll be available for Sunday's game against New Orleans.   Chris Weinke , QB CAR - Tori Updated 11/27/01 Despite his inconsistent play and 14 interceptions, Weinke's job as Carolina's No. 1 quarterback is secure. "There've been quarterbacks who have gone on to be very successful that have gone through times like this," coach George Seifert told the Charlotte Observer. "Even though there are a number of these plays that haven't turned out and there have been disruptions in his play, I think, ultimately, it will be more beneficial than not." While he may be the starting quarterback in Carolina, Weinke isn't worth a roster spot in most Fantasy leagues.   Frank Sanders , WR ARI - Free Agent Updated 11/27/01 Sanders, who left Sunday's game against San Diego due to nagging hamstring injuries, is questionable for the Cards' Week 12 matchup at Oakland. However,! h! e is optimistic that he'll be available for the game. "I'll be there," Sanders told the Arizona Republic. "They're just real sore from doing a lot of running and jumping - normal wear and tear." In any event, keeping Sanders on your bench may be a good idea against the tough Oakland secondary.   Rob Moore , WR ARI - Martin Updated 11/27/01 Moore (hamstring) was supposed to begin some light running last week, but he ended up doing nothing of the sort. "He hasn't made a lot of progress," coach Dave McGinnis told the Arizona Republic. "We're going to come to a point where we're going to have to make a decision." Moore, who has missed the entire season due to injury, could be placed on the injured reserve list this week.   More Updates [IMAGE]  Copyright 2001 Commissioner.COM Inc and SportsLine.com Inc. Your site can be reached from http://fantasy.sportsline.com   FB10SP


The Suits Tell the Tale
Cato's Regulation, 07/27/01
Wholesale-Energy Units Lifted Profit at Reliant, Peoples Energy
Dow Jones Business News, 07/27/01
Enron Wants India to Buy Dabhol, Still Eyeing Options (Update2)
Bloomberg, 07/27/01

Godbole panel-DPC meet makes little progress
Business Standard, 07/28/01

INDIA: Enron's Dabhol rejects Indian offer on tariffs.
Reuters English News Service, 07/27/01
Unamerican Activity? California Power Probe Gets Rough
Dow Jones Energy Service, 07/27/01

India Dabhol Pwr Rejects States' Price Proposals -Report
Dow Jones Asian Equities Report, 07/27/01

Venture capital chasing next big - and little - thing in energy
Associated Press Newswires, 07/27/01

USA: Brazil moves to head off energy crunch, recession.
Reuters English News Service, 07/27/01

Talking Stocks
CNNfn: The Money Gang, 07/27/01

Buenos Aires Invents `Patacon' Currency to Pay Bills (Update1)
Bloomberg, 07/27/01

The Suits Tell the Tale
Gov. Davis deceived Californians about the energy crisis.
By Jerry Taylor & Peter VanDoren. Jerry Taylor is director of
natural-resources studies at the Cato Institute <http://>. Peter VanDoren is
editor of Cato,s Regulation.
July 27, 2001 8:25 a.m.
or at least nine months now, California Gov. Gray Davis has been screaming
bloody murder about how corporate power pirates out of Houston have
economically raped and pillaged the state of California, creating an
artificial electricity crisis out of thin deregulated air. The story didn't
appear to add up. But because the governor's office refused to release
information about how much the state paid to whom for electricity over the
past several months, who was to say?
Lawsuits finally pried that information out of Davis last week and * lo and
behold! * "the biggest snakes on the planet" (Davis's words) were charging
less than the publicly owned utilities of California itself and even less
than the price charged by his right-hand man, David Freeman, head of the L.A.
Department of Water & Power. And Davis turns out to have known it all along.
Until Davis coughed-up the data, the Left was in hog heaven, scoring point
after point about how socialism * at least in the electricity business * was
far preferable to capitalism. Alan Richardson, president of the American
Public Power Association, recently told an audience that, "California is a
great example of municipal utilities that have ( taken care of their
customers while investor-owned utilities have taken care of their
shareholders ( Every customer of a private utility is seen as a profit
center. With public power, every customer is seen as our owner and neighbor."
Anti-utility activist Harvey Wasserman wrote in The Nation that, "dereg
apologists are having a hard time explaining why two California power
companies were immune to the crisis: the Los Angeles Department of Water &
Power and the Sacramento Municipal Utility District. Both are owned by the
public ( during the crisis, rates charged by both companies have been stable."
It turns out, however, that publicly owned utilities charged the state an
average of $344 for a megawatt of electricity during the first three months
of the year. Private companies were meanwhile charging less than an average
of $250 per megawatt. And those Houston-based "snakes" * Reliant, Dynergy,
and Enron * were charging less than the publicly owned utilities, less than
the sainted and celebrated L.A. Department of Water & Power ($292 per
megawatt), less than the Sacramento Municipal Utility District ($330 per
megawatt), less than other investor-owned California-based power marketers,
and less than the overall market average. Other more ambitious sellers
include those municipal "good neighbors" at Seattle's City Light Department
($634 per megawatt), BC Hydro ($498), and virtually every other socialist
power entity that bellied up to the California wholesale power market.
But that's not to say that the municipals did anything wrong. They had an
obligation to local taxpayers to maximize their revenues. Moreover, it turns
out that the markups weren't all that great. The cost of producing
electricity at the margin was so high because of the run-up of natural gas
costs; most of the asking price reflected the cost of spinning electrons back
at the plant. "It's insulting to ask for any money back. We weren't part of
the problem, and we helped the state in a crisis," Peter Fletcher of the
Sacramento Municipal Utility District told theSan Francisco Chronicle. "And
it's not like we're doing well."
Another interesting revelation is how inept California state agents were when
they tried to run a power system previously managed satisfactorily by the
utilities. The state "called us and said, 'we're looking for power at $500 a
megawatt hour for a seven-hour period,'" Kate Hora of the Modesto Irrigation
District told the Chronicle. "There was no negotiation. We just helped them
out at the price they named." These are the business wizards that Davis wants
to take over the whole system?
It should go without saying that this doesn't help the governor's
price-gouging argument. The story Hora tells of how the state behaved with
her utility is consistent with the stories related by the private marketers.
The state asks for power and names a price. The company agrees. And several
weeks later, Davis & Co. scream about "the gougers." The story Fletcher tells
* of prices mostly reflecting costs * likewise belies Davis's contention that
greed explains all. If Sacramento's municipal utility found it hard to make
any money even with sales of emergency power at $330 a megawatt, what makes
anyone think it was easier for Enron et al.?
The Left's entire California story, it turns out, was built upon a
breathtaking series of gubernatorial falsehoods and demagoguery. If Davis and
his duplicitous henchman, David Freeman, have an ounce of credibility left,
it's only because the nation is too riveted on the Chandra Levy matter to pay
any attention to the bomb that went off in Sacramento last week.

Wholesale-Energy Units Lifted Profit at Reliant, Peoples Energy

07/27/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Power companies Reliant Energy Inc. and Peoples Energy Corp. on Friday
reported higher quarterly profits and strong revenue, easily topping Wall
Street forecasts.
The two utilities in their reports attributed the strong performance to
increased profitability at their wholesale-energy units. But both Reliant
Energy and Peoples Energy said uncharacteristically warm weather during the
period and weaker-than-expected natural-gas operations cut into profit.
Houston-based Reliant Energy (REI) said net income rose 22% to $273.7
million, or 93 cents a diluted share, compared with $223.9 million, or 78
cents a share, a year earlier.
Excluding nonrecurring items, the company earned $247 million, or 84 cents a
share, up from $236 million a year earlier. The results exceeded analysts'
expectations of 77 cents a share, according to Thomson Financial/First Call.
The adjusted results excluded several extraordinary items, including the
effects from an accounting change, gains from early retirement of debt,
losses from the disposal of discontinued operations in Latin America, and a
noncash charge related to the spinoff of 20% of Reliant Resources Inc.
Revenue at the utilities holding company more than doubled to $11.97 billion,
compared with $5.76 billion a year earlier.
Earnings at Reliant Energy's electric operations came to $342 million, up
from $325 million, mostly due to lower expenses. The increase was partially
offset by increased taxes and lower revenue due to milder weather and lower
rates. The company's wholesale-energy unit posted a strong quarter, with
earnings rising to $205 million from $173 million on higher volumes and
margins from its trading and marketing activities.
Reliant Energy also took small hit from the ongoing energy crisis in the
Western U.S., where it operates primarily through Reliant Resources. Reliant
Energy, an electricity generator, said at the end of the quarter it was owed
$318 million from wholesale-energy buyers in California. The company also
said its reserves had a net negative effect of $12 million due related to
refunds ordered by the Federal Energy Regulatory Commission.
Reliant Energy struggled with natural-gas distribution and its European
operations. Its natural-gas segment's loss widened to $49 million from $12
million a year earlier due to increased expenses for bad debt and changes in
estimates of nonbilled revenue, the company said. Results from European
energy operations fell to $9 million, compared with $24 million, because of
lower margins from increasing competition in the Netherlands.
Reliant Energy reiterated its expectations for 2001 growth of 10% to 12%,
putting earnings at between $3.23 to $3.29 a share. Analysts expect earnings
of about $3.29 a share. Last week, Reliant Resources reported a 57% increase
in earnings but said it would be difficult to sustain that level of
profitability as energy companies deal with new price caps in the West.
Investment Gains Lift Peoples Energy
Peoples Energy (PGL) reported fiscal third-quarter profit rose 6.6%, topping
expectations, on a large jump in investment income and strong growth in its
diversified-energy businesses.
Net income for the quarter ended June 30 came to $11.6 million, or 33 cents a
share, compared with $10.9 million, or 31 cents a share, a year earlier. A
consensus of analysts expected Peoples Energy to post earnings of 28 cents a
share, according to First Call.
Revenue at the Chicago energy company jumped 22% to $318.5 million from
$261.2 million in the same quarter of 2000.
Looking ahead, Peoples Energy still expects to report full-year earnings of
between $3.15 and $3.25 a share, and the company expects its strong
diversified segments to account for about 20% of the total. Analysts surveyed
by First Call expect the company to earn $3.19 in 2001.
Peoples Energy said results reflected continued growth in its
diversified-energy businesses, but that profit was offset by increased costs,
short-term debt and an investment write-off. Still, the company received a
big lift from equity-investment income, which more than tripled due in part
to a joint venture with Enron Corp.
The company said the largest contributions came from its midstream services,
which include pipelines, and its oil-and-gas production businesses. Peoples
Energy said midstream results benefited from a solid performance at Enovate,
the venture with Enron, while oil-and-gas earnings were buoyed from
operations recently acquired in southern Texas.
Operating income at its midstream-services segment grew more than fourfold to
$5.1 million from $1.1 million a year earlier. The strong quarter primarily
was the result of equity-investment income from Enovate, as well as other
wholesale activities.
In the oil-and-gas segment, operating income for the current quarter more
than doubled to $8 million, up from $3.4 million. The gains primarily were
due to the impact of reserve acquisitions, including the recent pickup of
working interests in South Texas, and positive results from several drilling
programs.
However, profit was pressured by lackluster performance at its
gas-distribution operations. Warm weather and higher gas prices ate into
profit, as did customer-account balances that were significantly higher than
a year earlier. Weather during the third quarter was 14% warmer than normal,
and 9% warmer than the same period last year.
Operating income for the segment came to $23.2 million, compared with $26
million for the second quarter. Also, retail-energy operations posted a
slight $700,000 loss, which narrowed from $900,000 a year earlier.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.

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

Enron Wants India to Buy Dabhol, Still Eyeing Options (Update2)
2001-07-27 16:27 (New York)

Enron Wants India to Buy Dabhol, Still Eyeing Options (Update2)

     (Adds closing share price.)

     Houston, July 27 (Bloomberg) -- Enron Corp., the world's top
energy trader, wants the Indian government to buy out its 65
percent stake in the Dabhol Power Co. project, but it's still
looking at other options, a spokesman said.
     ``We do believe the best solution to this problem would be to
have the government or some related body buy us out of the
project,'' spokesman John Ambler said. ``We're still pursuing
other remedies, in case the buyout doesn't come through on
acceptable terms.''
     Enron and the Maharashtra State Electricity Board, Dabhol's
sole customer, are in a seven-month dispute over $64 million in
unpaid bills. The board stopped buying Dabhol's power in May,
saying it's too expensive. The move came days after Dabhol
announced it was beginning a six-month notice period to end its
contract with Maharashtra. Dabhol halted production after the
board stopped buying power.
     The Financial Times reported earlier today that Enron is
interested in selling the stake, quoting Enron Chairman Ken Lay,
who was in India earlier this month. Lay told the newspaper that
partners General Electric Capital, a unit of General Electric Co.,
and closely held Bechtel Group might also want to exit the
project.
     GE Capital spokesman Ken Koprowski said the company ``would
give serious consideration to credible offers which would enable
us to realize our financial objectives for this investment.'' In
general terms, he said, GE has a ``long-term commitment to doing
business in India.''
     Indian Prime Minister Atal Bihari Vajpayee was quoted in the
Business Standard last week saying he wants to resolve the Dabhol
dispute before he visits the U.S. in September.
     Madhav Godbole, the chief negotiator on the Indian side of
the payment dispute, said earlier today that eight Indian states
would be interested in buying power from Dabhol, but not at
``anywhere close'' to the rates the utility charged under the
Maharashtra contract. Dabhol rejected the proposal as
``unrealistic.''
     Shares of Houston-based Enron fell 74 cents to $46.10.

Godbole panel-DPC meet makes little progress
Our Corporate Bureau Mumbai

07/28/2001
Business Standard
2
Copyright (c) Business Standard

The meeting between the Madhav Godbole-headed committee and the Enron
-promoted Dabhol Power Company (DPC) made little headway today. "DPC just
stopped short of saying that they would walk out of the project," said a
source who attended the meeting. The immediate provocation for this was the
price at which various state electricity boards were prepared to buy power
from DPC.
On Thursday, the Godbole panel had met the representatives of four state
electricity boards. The states are Karnataka, Delhi, Madhya Pradesh and
Punjab. They offered to buy power from DPC at Rs 1.65 to Rs 2.60 per unit.
"The Godbole panel communicated this offer to the DPC representatives who
found it unacceptable," sources said.

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

INDIA: Enron's Dabhol rejects Indian offer on tariffs.
By Sriram Ramakrishnan

07/27/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, July 27 (Reuters) - U.S. energy giant Enron Corp's Indian unit, which
is locked in a bitter battle with a local utility, on Friday rejected offers
from other utilities to buy power if it lowered its tariff.
Dabhol Power Company (DPC), which is 65 percent owned by the Houston-based
Enron, said the new proposals put forward by four Indian states were
"unrealistic and unattainable".
DPC had signed a contract to supply power to a state-owned utility, the
Maharashtra State Electricity Board, from its gas-based plant on the state's
west coast.
But the future of the $2.9 billion project, the largest single direct
investment in the country, turned uncertain after the utility defaulted on
payments and stopped buying power, which it says is too expensive. Enron says
the Board is going back on its contractual commitments.
Several alternatives have been suggested to end the dispute. The latest one
was suggested at a meeting on Thursday.
Four other Indian states said they would buy power from Dabhol if it sold the
electricity at between 1.65-2.25 rupees per unit, instead of the 7.0 rupees
charged at some levels of utilisation.
"These are totally unrealistic proposals, unattainable by new-generation
liquid plants, including those set up by the public sector," a Dabhol
spokesman told Reuters.
"Talks with DPC have reached a stalemate, similar to a chicken-and-egg
situation, wherein interested states had quoted lower prices than the U.S.
energy major's expectation," M. Godbole, the chairman of a committee set up
to resolve the dispute, told the Press Trust of India.
TARIFF, STUMBLING BLOCK
One of the main problems is the state's ability to buy all the power DPC can
supply. The contract has been structured in such a way that the utility pays
more per unit of power the less it uses.
DPC's power plant is being built in two phases. The first phase of 740 MW is
up and running and the second phase of 1,444 MW is 97 percent complete.
Since the MSEB has said it cannot buy power, one alternative is to sell the
power to other states.
Though the four states of Madhya Pradesh, Rajasthan, Karnataka and Delhi had
indicated interest, they also stipulated they would not be able to buy the
entire output of 1,444 MW. "The states have made it clear there was certainly
a demand for DPC power, but only at a particular price. The higher the price,
the lower the demand," Godbole told the PTI.
TEST CASE
Some analysts say India's attempts to resolve the Enron dispute is a test
case of its ability to attract more foreign investment.
The power project is India's largest foreign direct investment.
Last week U.S. assistant secretary of state on South Asian affairs, Christina
Rocca, said the problems surrounding India's investment climate could be
summed up in a five-letter word, "Enron".
"I have to emphasise that it will be difficult for international investors to
view India favourably until it (Enron issue) is resolved and in a reasonable
manner," she told a meeting in New Delhi.
The dispute was triggered off last year when MSEB defaulted on payments.
This prompted Dabhol to issue a preliminary notice to cancel its contract and
sparked a similar response from the utility, the Maharashtra State
Electricity Board (MSEB).
The dispute has affected India's efforts to attract more investment in the
power sector, where analysts say more plants are needed to meet growing
demand.
Four foreign companies have already pulled out of the country, citing legal
and bureaucratic hassles.
($1=47.13 Indian rupees).

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

Unamerican Activity? California Power Probe Gets Rough
By Arden Dale
Of DOW JONES NEWSWIRES

07/27/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- Think 1929, price fixing, cement companies.
That was the scenario the last time California lawmakers used a weapon
they're now wielding against a pair of Texas energy companies as part of an
electricity market investigation.
Lawmakers are also weighing whether to take strong action against Wall Street
firm Morgan Stanley, and they are using a method to corral witnesses that is
so unusual it may never have been used by the California Legislature before.
The actions -- bringing contempt charges and deposing witnesses -- are rare
for legislatures anywhere in the U.S. They could result in large fines for
some companies, but earlier reports that corporate executives might be jailed
as a result of the investigation are probably overblown.
"I wouldn't be surprised to see this go to the California Supreme Court and
even the U.S. Supreme Court," said state Senator Joe Dunn, (D-Santa Ana),
chairman of the California Senate Select Committee to Investigate Market
Manipulation, which is conducting the investigation.
In June, the committee subpoenaed electricity trading documents and financial
records from Duke Energy Corp. (DUK), Mirant Corp. (MIR), Dynegy Inc. (DYN),
Williams Cos. (WMB), AES Corp. (AES), NRG Energy (NRG), Enron Corp. (ENE) and
Reliant Energy Inc. (REI). It was looking for evidence that the companies
knew years ago they could take unfair advantage once the state deregulated
its power markets, Dunn said.
Enron and Reliant, two big companies headquartered in Texas, have still not
complied with the subpoenas, though Mirant did soon after the committee
started a contempt proceeding against it, Dunn said.
"This is real defiance of the Legislature's power to issue subpoenas," said
Clark Kelso, a professor of law at University of the Pacific McGeorge Law
School in Sacramento. "When somebody openly defies the court's power it then
has to make a decision about how best to coerce compliance."
The committee has cited Enron and Reliant for contempt, and recommended to
the full Senate that Enron be charged fines in increments that increase daily
until it complies with the subpoenas. The company may be liable if the full
Senate upholds the finding when it returns from a recess in August.
Enron sued California this month in a federal court in an effort to stop the
state from subpoenaing its documents. The suit is still pending.
"This is clearly a witch hunt, it's scapegoating and demagoguery," said Mark
Palmer, a spokesman for Enron.
State legislatures rarely issue subpoenas, and even more infrequently find
entities in contempt, according to Brenda Erickson, a senior research analyst
at the National Conference of State Legislatures. Most of the time, "people
are willing to come in and open records and talk to a committee," she said.
Sometimes companies hesitate because of confidentiality issues, but
legislative committees can go into a closed session to address that concern,
she added.
Wall Street firm Morgan Stanley, which advises some power generating
companies, has also come under fire by Dunn for failing to give the committee
documents it used to prepare power plant prospectuses, the senator said. The
papers could provide evidence that companies knew certain plants would give
them an unfair advantage in electricity markets, according to Dunn.
"We're trying to determine what we can do about the fact that Morgan Stanley
has destroyed documents, but a contempt finding is not an option at this
point," Dunn said. That's because the committee didn't initially subpoena the
documents.
Morgan Stanley said through a spokesperson that it disposed of documents many
years before, in accordance with the firm's document retention policy. "We
assured the Senator that no documents had been disposed of since he issued
his request," the spokesperson said.
The firm has become more cooperative after a period of not communicating
clearly with the committee, Dunn said, and added that "in the past 24 hours,
we have had significant progress in resolving our dispute with Morgan
Stanley."
Enron's Palmer said Dunn's committee is putting energy companies at the mercy
of their competitors by not providing adequate confidentiality regarding
sensitive market data.
"Just give us the level of protection that any court in the U.S. would give
us," Palmer said. "We're happy to cooperate so that they can have a
fact-finding mission instead of a witch-hunt."
Enron also objects to the fact that some entities, including the Los Angeles
Department of Water and Power and energy company Calpine Corp. (CPN), aren't
part of the investigation, according to Palmer. Calpine has very lucrative
long-term power supply contracts with the state, and LADWP has charged the
state high prices for surplus power. Enron's profits from power sales to
California are only a fraction of some other companies', according to Palmer.
The California state Senate has allowed the committee to depose witnesses in
the investigation, a move never before taken by the Legislature, according to
Kelso and Dunn. The state can take testimony from several witnesses at once
behind closed doors in various locations, instead of having them present all
testimony directly to the committee, as a result.
"From our perspective in the Legislature, it is a return to the time period
when legislative investigations were pursued vigorously with the full tools
available to lawmakers," said Dunn. "In the past decades, there's been a
reluctance to move in an aggressive manner."
- By Arden Dale, Dow Jones Newswires; 201-938-2052; arden.dale@dowjones.com

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

India Dabhol Pwr Rejects States' Price Proposals -Report

07/27/2001
Dow Jones Asian Equities Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- Dabhol Power Co., a subsidiary of the U.S. energy
major Enron Corp. (ENE) has rejected price proposals from India's four state
electricity boards that sought to buy electricity from the 1,444-megawatt
Dabhol second phase power plant, Press Trust of India said in a report
Friday.
The report said DPC had found the proposals from the states of Karnataka,
Delhi, Madhya Pradesh and Karnataka unrealistic.
"Unfortunately, these are totally unrealistic proposals, unattainable by new
generation liquid plants, including those set up by the public sector," the
report quoted DPC as saying.
As reported, Karnataka Power Transmission Corp. had proposed the purchase of
300 MW from Dabhol plant at 2.80 rupees ($1=INR47.1350) a unit, while the
Punjab State Electricity Board had offered to purchase 100-150 MW at INR2.50
a unit.
In addition, the Madhya Pradesh State Electricity Board had expressed its
interest in buying 200 MW at INR1.65 a unit, while Delhi Vidyut Board had
said it was interested in buying 200 MW at no more than INR3.00 a unit.
Enron holds a controlling 65% stake in Dabhol Power. The DPC pahse one plant
is located in the western Indian state of Maharashtra and has a capacity of
740 MW. Construction work on the 85% completed Dabhol phase II was stopped
mid-June because of financial difficulties.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9426;
himendra.kumar@dowjones.com

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

Venture capital chasing next big - and little - thing in energy
By JUSTIN POPE
AP Business Writer

07/27/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

BOSTON (AP) - Not so long ago, investing in the energy industry meant buying
pieces of oil wells, hydroelectric dams and big, clunky utility companies.
But power deregulation broadened the possibilities, and the headlines from
the California power crisis have drawn entrepreneurs and investors into the
sector.
While traditional energy companies are attracting most of the attention,
there's growing interest in smaller companies in an emerging sector called
"energy technology:" software, microturbines, Web-based electricity trading,
and more.
The companies and venture capitalists are after the "$300 billion jump ball"
made possible by electricity deregulation, said Todd Klein, managing director
of Kinetic Ventures, a Chevy Chase, Md.-based VC firm.
Their monopolies gone, power companies are being forced to improve
productivity. Start-ups are trying to help with a new generation of high-tech
gadgets.
Meanwhile, technology companies are demanding cheaper and more reliable power
sources. Entrepreneurial talent is drifting to energy, and several
technologies developed in government labs are now commercially viable.
"We have been following these technologies 10 years, and they never were
anything more than science experiments," said Jeff Miller of Boston's Beacon
Group, which manages $1.6 billion in two energy VC funds. "Now you've got the
demand coming from the marketplace and very serious managers with very
focused business plans."
Offsetting the flurry of enthusiasm is tighter funding from the VCs.
According to research firm Venture Economics, 77 companies took in more than
$1.2 billion in funding in the sector last year, but so far this year just 17
companies have raised a total of $132 million.
David Lincoln, founder of EnerTech Capital in Wayne, Pa., told entrepreneurs
at a recent tech conference in Boston that nobody is in a hurry to make
deals, and the conditions that VCs impose now "were virtually unheard of 18
months ago."
The California power crisis has grabbed the attention of the entire
investment community - every major investment bank is now tracking a sector.
"Everybody's backing out of the dot-coms and telecoms," said Bradley Johnson,
president of Washington-based Pepco Technologies. "They're saying the next
new thing is energy, but they haven't figured it out yet."
They are chasing some minor success stories like Chatsworth, Calif.-based
Capstone Turbine Corp., which makes freestanding microturbines that allow
businesses to produce their own electricity. Company shares have traded as
high as $100, but have fallen to under $20, and the company still hasn't
turned a profit.
The next little thing is on the minds of VCs as much as the next big one.
That means technologies that don't necessarily revolutionize how electricity
is produced so much as help traditional companies produce it and customers
use it more efficiently.
"With the events which occurred in California and which are threatening to
occur in other parts of the company, people are focused on immediate
solutions to those problems," Klein said.
These solutions include systems to help companies manage their electrical use
and flywheels that store electricity on site to guarantee a steady stream of
power to sensitive equipment. Other companies target the power companies
themselves, with everything from software to satellite meter-readers.
At the venture capital level, backers tend to be looking for smaller
investments and quicker returns. That's been an obstacle for some early-stage
"green" companies.
"Everybody's supply-side," lamented R.W. Cushing, an entrepreneur whose
Austin, Texas, alternative energy marketing company got the cold shoulder
from VCs at the Boston tech conference. "Nobody thinks in demand terms."
But in fact, alternative energy firms raised $2 billion last year from IPOs
and VCs, according to research firm Clean Edge, based in Oakland, Calif.
Renewable energy requires deep pockets and patience, and tends to be backed
by big power companies that, if they can make alternative energy work, have
the infrastructure in place to distribute it.
Many big power companies are ensuring that they get the needed technology by
backing start-ups themselves. Houston-based conglomerate Enron Corp., for
instance, has invested $90 million in 12 companies it sees as strategic
partners.
"I don't think there is a dearth of interest or investment in renewable
technologies," Lincoln said. "(But)... the reason why you see such a strong
level of interest in helping the supply-side companies is, right now, that's
where the capital is being spent."

AP Photo NY1398 of July 23
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

USA: Brazil moves to head off energy crunch, recession.
By Chris Baltimore

07/27/2001
Reuters English News Service
(C) Reuters Limited 2001.

WASHINGTON, July 27 (Reuters) - Pedro Parente, Brazil's energy czar and close
adviser to President Fernando Henrique Cardoso, assured U.S. officials on
Friday that South America's largest economy can still meet its growth targets
despite the double whammy of energy shortages and a potential economic
meltdown in Argentina.
Brazil's gross domestic product is on track to grow at 2.7 percent in 2001
and 3.6 percent in 2002, Parente said, speaking at a event sponsored by the
U.S. Chamber of Commerce and the Brazil-U.S. Business Council.
The growth is partly enabled by an aggressive plan Parente instigated for
mandatory energy usage cuts across every sector of Brazil's economy amid a
severe energy shortage.
Brazil is in the teeth of an energy crunch spurred by a drought that has
crimped the nation's hydroelectric-dependent energy supply. Some 93 percent
of Brazil's power comes from hydroelectric projects, with only 4 percent from
thermal generation.
"Our system is highly dependent on hydrological conditions," Parente said.
Flows on Brazil's San Francisco River are the lowest in 30 years, he said.
Unlike California, which is struggling with its own power crisis, Parente's
program sets blackouts as a last resort.
The plan requires residential users to cut demand 20 percent, industrial
customers 20-25 percent, and commercial customers 20 percent from year-ago
levels.
Users pay penalties for exceeding targets and get rebates for consuming below
them.
PLAN ALLOWS POWER RIGHTS TRADING
The plan also creates a "transfer of rights" trading scheme where businesses
and residents that conserve can sell their surplus power for a profit.
The trading program will be instrumental in staving off GDP growth
reductions, Parente said.
Government reports indicate Parente's plan is working. In Southeast Brazil,
the country's most populous region, demand fell about 27 percent from May to
July, Parente said. "For the next four to six weeks we will not need to
resort to blackouts because residential levels are doing quite well," he
said.
Brazil plans to build 6,523 megawatts of new thermal generation through 2003
and 7,803 MW of new hydro generation, and will spend about 30 billion reais
($12 billion) in the process, Parente said. New generation will total about
20,000 MW by 2003, including imports, cogeneration and alternative energy
sources like wind and solar.
Part of the growth could be through foreign joint ventures, which attracted
many U.S. companies to Friday's presentation. AES Corp. ., Duke Energy Corp.
, Exxon Mobil Corp. , Enron Corp. , CMS Energy Corp. , and Unocal Corp.
attended the meeting.
Global investors are souring on Brazil's growth prospects after a 4.5 percent
jump in GDP in 2000. Salomon Smith Barney recently lowered its 2001 growth
forecast to 2 percent from 2.5 percent, and 2002 growth estimates to 2
percent from 4.5 percent because of interest rate hikes and the energy
shortage.
The Brazilian real currency has shed over one-fifth of its value against the
dollar this year, mostly due to investor concerns over Argentina. Brazil is
trying to extend a loan package from the International Monetary fund that
expires at the end of 2001. ($1=2.50 reais.

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

Business
Talking Stocks
David Haffenreffer, Pat Kiernan

07/27/2001
CNNfn: The Money Gang
(c) Copyright eMediaMillWorks, Inc. (f/k/a Federal Document Clearing House,
Inc.). All Rights Reserved.

DAVID HAFFENREFFER, CNNfn ANCHOR, THE MONEY GANG: Now let`s start Talking
Stocks.
PAT KIERNAN, CNNfn ANCHOR, THE MONEY GANG: John Eade of Argus Research is our
guest today. You can call or e-mail your questions, the phone number
1-800-304-fnet (3638).
HAFFENREFFER: Snail mail might take too long, but e-mail is good, address
here is moneygang@CNNfn.com. John, welcome back to the program.
JOHN EADE, ARGUS RESEARCH: Thank you.
HAFFENREFFER: Market behaving in what manner?
EADE: Day to day, it`s quite volatile and kind of frightening-- but if you go
back and look at where we were in March and April, the NASDAQ at 1600, S&P at
1100, we`re moving up from there and I think it`s the tentative wavering
steps of a baby bull market. It`s where we are in the cycle. And I`m pleased
so far that we haven`t gone back to touch those lows that we saw earlier this
year. I don`t think we will.
(COMMERCIAL BREAK)
HAFFENREFFER: Time now for more Talking Stocks here on THE MONEY GANG. With
us is John Eade of Argus Research.
KIERNAN: You can give us a call at 1-800-304-fnet (3638); or you can e-mail
your questions to moneygang@CNNfn.com. Let`s get back to it. We have an
e-mail.
HAFFENREFFER: We do have an e-mail from Moise in California with a question
about the short and long-term outlook for Tellabs (URL:
http://www.tellabs.com/) .
EADE: Long term, it`s fine. Clean balance sheet, good management team, solid
products. Short term, I`m not going to say no visibility, but estimates are
all over the place for how this company`s going to do in the next quarter or
so. Their customers are still working off inventory and I think it could be a
"market performer," kind of flat at best, for the next few weeks and months.
KIERNAN: We`ve got Larry in New York on the line.
CALLER: How`re you doing? Thanks for taking my call. Long term: buy, sell or
hold-- Enron (URL: http://.www.enron.com/) ?
EADE: Enron is a I think a "long-term buy." Their chart doesn`t look good. It
looks like it`s unable to make new highs and still heading lower. I think
it`s about to bounce off. Maybe we`ve got a double bottom there in the month
of July. However, the long-term outlook for the energy business, particularly
in the generation and the trading area, which is what Enron does so well, I
think is quite positive. Enron is the leader in that area and I think the
long-term outlook is very good for Enron.
KIERNAN: They got wrapped up in the broadband business there and ended up
taking some quite a hit like anybody else in that business the last little
bit, and I think they`re trying to steer clear of that and get back to a lot
of what they have been successful at in the past.
EADE: Sure, and what they`ve been successful at is a system at building a
trading and marketplace operation, and they applied it to natural gas and
they applied it to electricity and they applied it to broadband. Now let`s
supply it to some other areas.

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

Buenos Aires Invents `Patacon' Currency to Pay Bills (Update1)
2001-07-27 15:15 (New York)

Buenos Aires Invents `Patacon' Currency to Pay Bills (Update1)

     (Adds patacon to begin circulating Aug. 3 in ninth
paragraph. Adds other possible origins of word patacon to 15th
paragraph.)

     Buenos Aires, July 27 (Bloomberg) -- Buenos Aires,
Argentina's most populated province, has resorted to printing its
own currency to settle its bills.
     Governor Carlos Ruckauf has ordered the provincial mint to
print a new bill to pay part of his workers' paychecks. The $500
million of new notes will also pay interest of 7 percent when the
government redeems them in a year's time.
     For those who want to spend them ``they'll be accepted just
like pesos,'' he said.
     Not everyone shares Ruckauf's optimism. Grocery stores such
as Coto Cicsa, Argentina's No. 3 supermarket chain, and electric
utility Edenor SA said they haven't committed to accepting the
patacon, as the new currency is called.
     ``We'd like to think we'll be able to spend these,'' said
Juan Cosino, a worker at the Buenos Aires legislature who next
month will receive $500 of his $1,400 monthly wage in patacones.
``Nobody knows exactly what they'll be good for.''
     Paying its workers with patacones helps Buenos Aires comply
with a central government demand for provinces to reduce spending,
while avoiding the political cost of wage cuts. Argentina needs to
slash public spending to avoid defaulting on $153 billion in debt
that national and regional governments owe.
     The plan may also erode trust in the Argentine peso, whose
one-to-one peg to the dollar has helped maintain confidence among
international and local investors in the country for the past
decade, said economists.

                           `Quasi-Money'

     ``There are uncomfortable implications to having a new stock
of quasi-money,'' said Ernest ``Chip'' Brown, chief Latin America
economist for Banco Santander Central Hispano SA in New York.
``It's deficit spending.''
     The Patacon will begin circulating August 3, when the
province pays workers. One patacon is worth one peso, the
government said.
     Buenos Aires opted to print money as its coffers were hit by
the same realities that have squeezed the central government: a
budget deficit and a limited ability to raise new funds. The
province is projected to run a $1 billion deficit in the second
half of the year. With its bonds yielding 37 percent, few
investors are willing to lend the province fresh cash.
     ``I wish we didn't have to pay our workers this way,'' Anibal
Fernandez, Buenos Aires Labor Minister, said in an interview.
``Frankly, we didn't have a choice.''
     In creating the patacon, Buenos Aires is doing something the
Federal government cannot: Argentina's currency regime forbids the
central bank from printing pesos unless the increase in money
supply is matched by a rise in foreign currency reserves.

                            Precedents

     Buenos Aires, home to 40 percent of Argentina's 37 million
population, isn't the first Argentine province to create its own
currency. Local bonds can be used to pay at restaurants and
supermarkets in some less populated provinces, particularly in the
poverty-stricken north.
     Nor are local currencies unique to Argentina. Ithaca, New
York, issued the ``Hour'' in 1991 to help the town get through a
recession. During the Great Depression in the 1930's, hundreds of
such currencies were created in the U.S.
     By some accounts, Patacones are named after South American
Indians who resided in Argentina's desolate Southern Patagonia
region. Others say the name derives from the patacoon, a Spanish
silver coin that circulated in the 18th century. The new bills
look like pesos and come in denominations of as little as $5.
     Ruckauf said patacones will be paid to the 30 percent of
provincial workers who earn more than 740 pesos ($740) a month.
They will receive as much as 600 pesos worth of the new bills for
part of their salary that exceeds 740 pesos.

                        Limited Acceptance

     The government has limited success in persuading companies to
accept as legal tender notes that Alberto Bernal, Latin American
economist at IDEAglobal dubbed ``funny money.''
     Water utilities such as Azurix SA and Aguas Argentinas SA,
and phone companies Telefonica SA and Telecom Argentina Stet-
France Telecom SA have said they'll accept Patacones as partial
payment, though some were less than enthusiastic about the change.
     ``We'll take only as many patacones as we need to pay our
obligations to the provincial government,'' said Azurix spokesman
Gustavo Pedace.
     Carlos Serrano, a spokesman for the utility Edenor, said his
company wasn't convinced.
     ``The Governor talked about the grave situation in the
province and said the only way to avoid ceasing payments was with
this patacon bond,'' said Serrano. ``We didn't sign on. We want to
help but we need more information.''
     Since it's unclear whether the bills will be widely accepted,
analysts said some workers may sell them at a discount for pesos
or dollars.
     ``If it's hard to spend this money people will create a black
market if history is any guide,'' said Dustin Reid, a currency
strategist at UBS Warburg Llc in Stamford, Connecticut. ``They
will still want dollars under their mattresses.''


Pat,

Please schedule both the June 14 and July 18 on my calendar.

Thanks
----- Forwarded by Steve Van Hooser/HOU/ECT on 05/23/2000 03:55 PM -----

	"Doug John and Kim Clark (Kim Clark)" <kclark@jhenergy.com>
	05/23/2000 02:19 PM

		 To: jsarikas@foster-FA.com, pgibbs@foster-FA.com
		 cc: Dorothy_Mersereau@br-inc.ca, lmarlatt@br-inc.com,
rebecca.w.cantrell@enron.com, steve.van.hooser@enron.com, jpaganis@hess.com,
GJPorter@midamerican.com, s.halfin@pecorp.com, egrenier@sablaw.com,
rmaywalt@sablaw.com, gknowles@schiffhardin.com
		 Subject: Data Responses

We have been served with the data responses of Northern Border to requests by
PAGUS, NGPL, Staff, and others.  Some of this information would be useful to
John in preparing for his testimony at the hearing, and also for the purpose
of crafting the cross examination of opposing witnesses.  These data
responses are available in our office for you to peruse it at your leisure.

In terms of scheduling, the next important date is June 14, which is when
Northern Border submits rebuttal testimony, and when Staff, PAGUS, and NGPL
file rebuttal in response to John's answering testimony.  Discovery on that
testimony is due June 23.  Your help in formulating discovery will be needed.

The hearing is presently scheduled for July 18 (absent settlement).
Obviously we will need to get together to prepare cross of the opposing
witnesses and to prep John for his testimony.

In terms of progress on settlement, you should be aware that while there have
been some private settlement talks among certain parties, there is no
presently scheduled settlement conference.  Nevertheless, we expect some or
all of the parties will be working to try to achieve some form of settlement
until the hearing starts.  However, whether a full or partial settlement of
the rate case issues will occur before the hearing is too speculative to
predict at this time.


Shirley,

Please, put it on my schedule.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 05/02/2001
10:23 AM ---------------------------
From: Jennifer Fraser/ENRON@enronXgate on 04/20/2001 09:10 AM
To: Cathy Phillips/HOU/ECT@ECT, Mark Frevert/ENRON@enronXgate, Mike
McConnell/HOU/ECT@ECT, Jeffrey A Shankman/ENRON@enronXgate, Doug
Arnell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Alan Aronowitz/HOU/ECT@ECT,
Pierre Aury/LON/ECT@ECT, Sally Beck/HOU/ECT@ECT, Rick
Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stephen H
Douglas/ENRON@enronXgate, Shanna Funkhouser/ENRON@enronXgate, Eric
Gonzales/LON/ECT@ECT, Gary Hickerson/HOU/ECT@ECT, Vince J
Kaminski/HOU/ECT@ECT, Larry Lawyer/ENRON@enronXgate, Chris
Mahoney/LON/ECT@ECT, George Mcclellan/ENRON@enronXgate, Thomas
Myers/ENRON@enronXgate, John L Nowlan/HOU/ECT@ECT, Beth
Perlman/ENRON@enronXgate, Brent A Price/ENRON@enronXgate, Daniel
Reck/ENRON@enronXgate, Cindy Skinner/ENRON@enronXgate, Stuart
Staley/LON/ECT@ECT, Mark Tawney/ENRON@enronXgate, Scott
Tholan/ENRON@enronXgate, Lisa Yoho/NA/Enron@Enron, Neil
Davies/ENRON@enronXgate, Per Sekse/NY/ECT@ECT, Stephen H
Douglas/ENRON@enronXgate, Scott Vonderheide/Corp/Enron@ENRON, Jonathan
Whitehead/AP/Enron@Enron, Michael K Patrick/ENRON@enronXgate, Chris
Gaskill/ENRON@enronXgate, John Arnold/HOU/ECT@ECT
cc: Nicki Daw/ENRON@enronXgate, Jennifer Burns/ENRON@enronXgate, DeMonica
Lipscomb/ENRON@enronXgate, Yvonne Francois/ENRON@enronXgate, Angie
Collins/ENRON@enronXgate, Donna Baker/ENRON@enronXgate, Helen Marie
Taylor/HOU/ECT@ECT, Chantelle Villanueva/ENRON@enronXgate, Betty J
Coneway/ENRON@enronXgate, Patti Thompson/HOU/ECT@ECT, Cherylene
Westbrook/ENRON@enronXgate, Candace Parker/LON/ECT@ECT, Sharon
Purswell/ENRON@enronXgate, Gloria Solis/ENRON@enronXgate, Brenda J
Johnston/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Susan McCarthy/LON/ECT@ECT,
Paula Forsyth/ENRON@enronXgate, Shirley Crenshaw/HOU/ECT@ECT, Kathleen D
Hardeman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stuart
Cichosz/ENRON@enronXgate, Judy Zoch/NA/Enron@ENRON, Sunita
Katyal/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cherry Mont/NY/ECT@ECT, Lydia
Reeves/HOU/ECT@ECT, Kristy Armstrong/ENRON@enronXgate, Nita
Garcia/NA/Enron@Enron, Christina Brandli/ENRON@enronXgate, Yolanda
Martinez/Corp/Enron@ENRON, Michele Beffer/ENRON@enronXgate, Shimira
Jackson/ENRON@enronXgate
Subject: PIRA Global Oil and Natural Outlooks- Save these dates.

PIRA is coming in May to do their semi-annual energy outlook.

Greg Shuttlesworth- North American Natural Gas --- May 14th 3-5 pm (30 C1)
? New Production Outlook
? Price Direction
? Demand Fundamentals

Dr. Gary Ross - World Oil Outlook --- May 16th 7-8:30 am --32C2
? OIl/ Demand/ supply Outlook
? Regional balances
? OPEC Rhetoric

Jen Fraser
34759


IT IS SUPPOSEDLY NOT WAPA CRISP THAT IS THE PSE,  IT IS SAN ??? IRRIGATION DISTRICT. Make sure everybody agrees on who the PSE is as this was a huge pain. thanks..

Geir


print
----- Forwarded by Steven J Kean/NA/Enron on 10/16/2000 10:15 AM -----

	John Ambler@ENRON_DEVELOPMENT
	10/13/2000 04:39 PM

		 To: Jimmy Mogal/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: Steven J Kean/NA/Enron@Enron, Mark Palmer@ENRON, Johan
Zaayman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: EGEP Sale Announcement

Jimmy,

I'll be working up a limited statement and Q&As, which we will need to run by
Jeff Sherrick and Mark Metts.  Once we have an approved statement I'll let
you know.  Of course, we would prefer to avoid publicity if possible.  Until
we have an approved statement, please call me to discuss if you have pressing
demands.

Thanks,

John
---------------------- Forwarded by John Ambler/ENRON_DEVELOPMENT on
10/13/2000 04:26 PM ---------------------------

Jeffrey Sherrick@ENRON
10/13/2000 03:04 PM
To: Steven J Kean/NA/Enron@Enron, John
Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jimmy
Mogal/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Stephen Wallace/Corp/Enron@ENRON, Larry Morse/Corp/Enron@Enron, Mike
Stewart/Corp/Enron@ENRON, Mark Koenig/Corp/Enron@ENRON, Sanjay
Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: EGEP Sale Announcement

On Friday (last night Houston time) we announced Enron's decision to sell
Enron Oil & Gas India Ltd. (EOGIL), our subsidary that owns a 30% interest in
the Panna, Mukta and Tapti concession areas.    We now have bankers involved
and a data room is being prepared in Houston which  made it extremely
difficult to keep the deal quiet any longer.  There were a rumors circulating
through the office, but the reality of the announcement was still a shock to
most of the employees in India and Houston.  Attached is a memo we handed out
to employees, but basically we said the following:
 1) Selling assets or companies is a routine part of Enron's strategy to
redeploy capital in the higher return opportunities.  The company has
exposure to a number of tremendous opportunities today that were not
envisioned even twelve months ago.  In line with this strategy, we are
placing EOGIL in the market.
 2) Depending on the success of finding an acceptable buyer for EOGIL,  we
will be reviewing the balance of our portfolio for transfer to other Enron
entities or for sale as separate packages.  We anticipate closing the EOGIL
transaction and rationalizing the remaining portfolio by March 31, 2001.
 3) Pending the success outlined in item #2, we will eliminate Enron Global
E&P as an Enron business unit on March 31, 2001.
 4) We announced some interim staff changes to facilitate the process.
  a) Jeff Sherrick would re-focus his time largely on the sale process
  b) Mike Stewart will be responsible for all India activity except the sale
process
  c) Steve Harper will be responsible for EGEP's sale activity and
coordination with our bankers and Corporate Development
 5) Commented on the potential impact to employees in general terms.  We told
them it was pre-mature to outline all of the possibilities until we signed a
PSA with a buyer.  However, in general, there is a good likelihood that many
people will either have opportunities for future employment with the buyers
or through redeployment within Enron.  Those people that do not remain with
the assets or are not redeployed in Enron will be involuntarily terminated
March 31, 2001 unless they are needed to close a transaction or to provide
transition services to a buyer.

I would like to keep this as low-keyed as possible.  Last year when we were
for sale there were not a lot of comments, but you never know.  If anyone in
the media picks up on this I would expect it to happen early next week.  Mike
Stewart is currently in India in the Mumbai office (01191228395841) and can
be reached at the Mariott after-hours(01191228577878).  He is fully briefed
on our position regarding the activities within EGEP and EOGIL.  Mike will be
traveling offshore and to Baroda over the weekend and on Monday.  I will be
available all weekend and next week at the following numbers; (work)
713-853-5934, (home) 281-320-2198, (cell) 713-569-4713.  I would suggest
talking with Mike or I before making any comments to the media if possible.

This afternoon I notified our partners and thr Gov't of India of our
intention to market our assets.  I will be making a trip to India soon to
visit with the appropriate people in these organizations within the next two
weeks.  While I wouldn't expect this to happen, please refer any inquiries
from our partners (ONGC and Reliance) or the GOI to Mike or me.  As you might
expect, we want to be careful and consistent in our message to these
groups.

I will keep you informed regarding any changes to the above.  If you have any
questions, contact me at the above numbers.

jeff


I don't even want to go close to what that dream is supposed to me.  You
looked pretty good in it though! :)  Anyway whats the story one minute you
tell me its a good idea for me to move the next you say I should stay!  Good
thing I don't listen to your advice.


Joan--With respect to CES's TCO storage for the COH choice program, please
schedule 48,000 dth/day to be withdrawn for the last 6 days of Februray.  If
necessary, CES will sell back flowing gas to Enron in order to maintain the
storage withdrawal at this level.    If TCO imposes some sort of operational
limits that prevent us from pulling this amount, please pull as much as you
can
up to this amount without violating the limits or otherwise incurring
penalties.

Thanks and please call me if you have questions, comments, etc.

Doug Kinney
Ph:  703-561-6339
Fax:  703-561-7317


I think the message Christi prepared is great.  Check with her one last time
and then let it  go.
---------------------- Forwarded by Steven J Kean/HOU/EES on 07/17/2000 07:54
AM ---------------------------

Mary Clark@ENRON
07/14/2000 07:51 AM
To: Christi L Nicolay/HOU/ECT@ECT
cc: Steven J Kean/HOU/EES@EES@ECT, Maureen McVicker/HOU/EES@EES@ECT, Christie
Patrick/HOU/ECT@ECT
Subject: Re: United Way

Christie, great job on Steve's message below.  Also, check with Marge Nadasky
for items from the Signature Shop that could be used as giveaways to our
group.

	From:  Christi L Nicolay @ ECT                           07/13/2000 06:03 PM

To: Steven J Kean/HOU/EES@EES, Maureen McVicker/HOU/EES@EES, Christie
Patrick/HOU/ECT@ECT, Mary Clark/Corp/Enron@ENRON
cc:

Subject: United Way

I attended the kick off and coordinator committee meetings for UW today.  The
"Who wants to help Millions" game begins next Wed. (7/19) via email.  I think
Steve could encourage participation from his group with an email sent out
Tues. 7/18 similar to this:

Subject:  Millionaire Game!

Want to have fun?  Want to get on a game show?  Want to help Millions?
Tomorrow you will receive an email that allows you to answer 15 questions via
email responses (about United Way, Enron, and other fun items).
Participation with correct answers puts you in the drawing for the employees
to represent Corp. in a "Who wants to be a Millionaire?" game that will be
played to benefit United Way on August 9.  The lucky and smart
representatives will be playing for great prizes.  I encourage your
participation in the game, but more importantly, encourage your generous
participation in Enron's United Way campaign.  Thanks for your help and HAVE
FUN!

Other items:

Corp. will be sponsoring DePelchin Children's Center through Day of Caring
and other activites during the year.  Other Enron business units will choose
other UW agencies to sponsor through activities.
We need to provide promotions/prizes for our group during the campaign.  Do
we have Enron Field tickets, dinner at Ruggles at Enron Field, use of Steve's
car, etc. that we could use for drawings a couple days after the kick off on
August 9?  We could send emails to Steve's group encouraging them to get
their pledge cards (now online) in early and draw from the early participants.


Any instructions?
----- Forwarded by Steven J Kean/NA/Enron on 01/18/2001 05:34 PM -----

	Linda Robertson
	01/16/2001 04:54 PM

		 To: Steven J Kean/NA/Enron@Enron
		 cc: Richard Shapiro/NA/Enron@Enron
		 Subject: Ken Lay as NASA Administrator

I received a call today from Rep. John Culberson about a nascent campaign
underway to nominate Ken Lay as NASA Administrator.  Rep. Culberson has
broached this idea with Eugene Cernan, who liked the idea .   The Congressman
asked that we check to see if Ken is interested, as he would like to
orchestrate a campaign on Ken's behalf.  I promised the Congressman to check
as to Ken's interest.  Steve, should I snuff this out?  Give him
encouragement?  I need to call the Congressman back very soon.  Thanks.


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 09/06/2000
02:04 PM ---------------------------

Shirley Crenshaw
09/06/2000 12:56 PM
To: ludkam@aol.com
cc:  (bcc: Vince J Kaminski/HOU/ECT)
Subject: Vince's Travel Itinerary

Ludmilla:

Here is Vince's travel itinerary for Sunday to New York.

                                           DATE 06SEPTEMBER00
                                           BOOKING REF ZE56TX

                                           KAMINSKI/WINCENTY  S0C0011R10

  ENRON CORP                               KAMINSKI/WINCENTY
                                           EB 1962
                                           E-TKT RECEIPT
                                           **REVIEW UPGRADE BELOW**

SERVICE               DATE  FROM           TO             DEPART  ARRIVE

CONTINENTAL AIRLINES  10SEP HOUSTON TX     NEW YORK NY    539P    1000P
CO 1672    A          SUN   G.BUSH INTERCO LA GUARDIA
                            TERMINAL C     TERMINAL M
                            DINNER                        NON STOP
                            RESERVATION CONFIRMED         3:21 DURATION
                  AIRCRAFT: BOEING 737-800
                            SEAT 01F NO SMOKING CONFIRMED KAMINSKI/WINCEN
                    FIRST CLASS UPGRADE IS CONFIRMED

HOTEL                 10SEP HILTON MILLENIUM
                      11SEP 55 CHURCH STREET
                            NEW YORK, NY 10007
                            UNITED STATES OF AMERICA
                            TELEPHONE: 212-693-2001
                            FAX: 212-571-2316
                            TELEX: TLX NONE
                            CONFIRMATION: 3110994415
                            SINGLE ROOM QUEEN SIZE BED
                            RATE: RA1 USD 339.00 PER NIGHT
                            GUARANTEE GIVEN
                            NONSMOKING KING ENRON CORP
      TO AVOID BILLING CANCEL 24 HOURS PRIOR TO ARRIVAL HOTEL TIME

CONTINENTAL AIRLINES  11SEP NEW YORK NY    HOUSTON TX     745P    1033P
CO 1963    A          MON   LA GUARDIA     G.BUSH INTERCO
                            TERMINAL M     TERMINAL C
                            SNACK                         NON STOP
                            RESERVATION CONFIRMED         3:48 DURATION
                  AIRCRAFT: BOEING 737-300
                            SEAT 01F NO SMOKING CONFIRMED KAMINSKI/WINCEN
                    FIRST CLASS UPGRADE IS CONFIRMED

MISCELLANEOUS         10NOV HOUSTON TX
                      FRI   ** THANK YOU FOR USING THE TAP **

KAMINSKI/WINCENTY  S0C0011R1000

CO  FREQUENT FLYER COWT472179
SHIRLEY CRENSHAW: 853-5290
INTL TVLRS: CARRY SOS WALLET CARD W/ENRONASSISTANCE INFO
CALL SOS: IN U.S 800 523-6586/INTL 215 245-4707 (COLLECT)
*******************************************
THIS IS THE PASSENGER RECEIPT FOR YOUR ELECTRONIC TICKET


Davis demagoguing?  jeff


Bill,  Per Mark Whitt's request, attached is our form dedicated reserves
purchase agreement.


Here is the presentation I was talking about.  No changes need to be made to
it.  We need 15 color copies, bond at the top with a spiral binding and clear
front cover.  We need it by 6:00pm tonight.  Thanks

Ben Rogers
3-7998


Dawn -

Now that the fixed price deals are working: what are we working on now?
(Canadian counterparties I hope.)


fyi 2
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 11/13/2000
04:46 PM ---------------------------

	Enron North America Corp.

	From:  Katherine Brown @ ENRON                           11/13/2000 03:43 PM

To: James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cliff
Baxter/HOU/ECT@ECT, Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Jeremy Blachman/HOU/EES@EES, Philippe A Bibi/HOU/ECT@ECT, Raymond
Bowen/HOU/ECT@ECT, Michael R Brown/LON/ECT@ECT, Harold G
Buchanan/HOU/EES@EES, Rick Buy/HOU/ECT@ECT, Richard Causey/Corp/Enron@ENRON,
Diomedes Christodoulou/SA/Enron@Enron, Wade
Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David Cox/Enron
Communications@Enron Communications, David W Delainey/HOU/ECT@ECT, James
Derrick/Corp/Enron@ENRON, Steve Elliott/Enron Communications@Enron
Communications, Jim Fallon/Enron Communications@Enron Communications, Andrew
S Fastow/HOU/ECT@ECT, Mark Frevert/NA/Enron@Enron, Ben F Glisan/HOU/ECT@ECT,
Kevin Hannon/Enron Communications@Enron Communications, David
Haug/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rod Hayslett/FGT/Enron@ENRON,
Stanley Horton/Corp/Enron@Enron, James A
Hughes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Larry L
Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J Kean/NA/Enron@Enron,
Louise Kitchen/HOU/ECT@ECT, Mark Koenig/Corp/Enron@ENRON, Kenneth
Lay/Corp/Enron@ENRON, John J Lavorato/Corp/Enron@Enron, Dan Leff/HOU/EES@EES,
Danny McCarty/ET&S/Enron@Enron, Mike McConnell/HOU/ECT@ECT, Rebecca
McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey McMahon/HOU/ECT@ECT,
Mark Metts/NA/Enron@Enron, Mark S Muller/HOU/EES@EES, Cindy
Olson/Corp/Enron@ENRON, Lou L Pai/HOU/EES@EES, Ken Rice/Enron
Communications@Enron Communications, Matthew Scrimshaw/LON/ECT@ECT, Jeffrey A
Shankman/HOU/ECT@ECT, Jeffrey Sherrick/Corp/Enron@ENRON, John
Sherriff/LON/ECT@ECT, Jeff Skilling/Corp/Enron@ENRON, Marty
Sunde/HOU/EES@EES, Greg Whalley/HOU/ECT@ECT, Thomas E White/HOU/EES@EES, G G
Garcia/NA/Enron@Enron, Marcia Manarin/SA/Enron@Enron, Susan
Skarness/HOU/ECT@ECT, Stacy Guidroz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Beena Pradhan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Karen K
Heathman/HOU/ECT@ECT, Sharron Westbrook/Corp/Enron@ENRON, Kay
Chapman/HOU/ECT@ECT, Molly Bobrow/NA/Enron@Enron, Rosane
Fabozzi/SA/Enron@Enron, Stephanie Harris/Corp/Enron@ENRON, Bridget
Maronge/HOU/ECT@ECT, Nicki Daw/NA/Enron@Enron, Inez Dauterive/HOU/ECT@ECT,
Carol Ann Brown/Enron Communications@Enron Communications, Elaine
Rodriguez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cindy Stark/Corp/Enron@ENRON,
Mary E Garza/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Maureen
McVicker/NA/Enron@Enron, Joannie Williamson/Corp/Enron@ENRON, Rosalee
Fleming/Corp/Enron@ENRON, Vanessa Groscrand/Corp/Enron@ENRON, Tori L
Wells/HOU/ECT@ECT, Cathy Phillips/HOU/ECT@ECT, Loretta
Brelsford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sue Ford/HOU/ECT@ECT, Dolores
Fisher/NA/Enron@Enron, Karen Owens/HOU/EES@EES, Dorothy Dalton/Enron
Communications@Enron Communications, Mercedes Estrada/Enron
Communications@Enron Communications, Christina Grow/Corp/Enron@ENRON, Lauren
Urquhart/LON/ECT@ECT, Sherri Sera/Corp/Enron@ENRON, Katherine
Brown/Corp/Enron@ENRON, Liz M Taylor/HOU/ECT@ECT, Judy G Smith/HOU/EES@EES,
Bobbie Power/Corp/Enron@ENRON, Suzanne Danz/Corp/Enron@ENRON, Peggy
McCurley/HOU/ECT@ECT, Marsha Schiller/HOU/ECT@ECT, Fiona Stewart/LON/ECT@ECT,
Jana L Paxton/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Connie
Blackwood/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tammie Schoppe/HOU/ECT@ECT,
Kimberly Hillis/HOU/ECT@ect, Jennifer Burns/HOU/ECT@ECT, Sharon
Dick/HOU/EES@EES, Beverly Aden/HOU/EES@EES, Kathy Dodgen/HOU/EES@EES, Kerry
Ferrari/LON/ECT@ECT, Carol Moffett/HOU/EES@EES, Jennifer Adams/Enron
Communications@Enron Communications, Leah Rijo/Enron Communications@Enron
Communications, Lucy Marshall/Enron Communications@Enron Communications,
Kathy Campos/GPGFIN/Enron@ENRON, Julie Armstrong/Corp/Enron@ENRON, Kathryn
Greer/HOU/EES@EES
cc:
Subject: LATEST VERSION - Executive Committee List


Calif Senate Takes Up Bill On Deal With Small Generators
?
02/23/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
(This article was originally published Thursday.)

NEW YORK -(Dow Jones)- California Republican Sen. Jim Battin on Thursday
introduced legislation that will enable the state's electric utilities and
small, independent generators to proceed with a new deal on pricing power
supplies.
The bill, if enacted, would lower the prices paid to so-called qualifying
facilities to about 8 cents a kilowatt-hour from about 17 cents/kWh and would
require California utility regulators to ensure that utilities could recover
those costs from ratepayers.
The new pricing would be retroactive to Feb. 1, 2001, and would run until
June 30, 2006.
"This bill is a linchpin to solving the California energy crisis," Battin
said in a press release.
Qualifying facilities produce almost 30% of California 's electricity. While
the individual power plants are relatively small, some big energy companies
own several qualifying facilities each in California . These owners include
Calpine Corp. (CPN), FPL Group (FPL), Chevron Corp. (CHV), Ogden Corp. (OG),
Thermo Electron (TMO) and MidAmerican Energy Holdings, which was bought out
last year by Berkshire Hathaway Inc. (BRK.A,BRK.B).
Passage would allow several companies to restart some 1,000 megawatts of
gas-fired generators that have been off line for several weeks. Those
generators shut down their gas-fired plants, because they were unable to pay
gas suppliers after the utilities fell behind on their power payments.
The bill, SB47X, encompasses an agreement reached among the parties and is
expected to be enacted. The generators and PG&E Corp's (PCG) Pacific Gas &
Electric Co. and Sempra Energy's (SRE) San Diego Gas & Electric Co. reached
an agreement on the new prices two weeks ago. It wasn't clear Thursday if
Edison International's (EIX) Southern California Edison had signed off on the
agreement, according to one of the lead negotiators.
Edison wasn't able to comment immediately.
Under the legislation, gas-fired cogeneration plants, which account for
two-thirds of California 's qualifying facilities, will be paid based on the
cost of signing a five-year gas supply contract. The producers will negotiate
five-year contracts, subject to approval by the utilities, or accept a
benchmark five-year gas price still to be determined.
To take effect immediately as an emergency act, the bill requires approval by
two-thirds of both the state Senate and Assembly. If the bill is passed, a
process for quickly determining the five-year gas price would begin.
Most of the small power plants that run on renewable sources such as solar
panels, windmills and hydroelectric generators, will be paid a fixed price of
5.37 cents per kilowatt-hour, according to the bill. The non-gas plants will
also be paid about 2 cents/kwh for having the capacity available for the
utilities.
Previously, qualifying facilities were paid based on the spot price of
natural gas at the California border, or, if the generator had elected, the
California Power Exchange daily clearing price. But generators conceded that
the California gas spot market had risen so sharply over the past six months
that their power prices had become insupportable. The CalPX has stopped
operating its market.
Both PG&E and Edison have defaulted on qualifying facility payments, but the
bill sets up a schedule for recovery of missed payments. The utilities are to
pay for November 2000 deliveries by April 2, for December deliveries by May
1, and for January 2001 deliveries by June 1. PG&E paid its November bill on
time.
Calpine owns the most qualifying facilities in California . Of Calpine's
4,400 MW of total U.S. operational power plants, 575 MW are qualifying
facilities under contract with PG&E. FPL Group's FPL Energy owns a little
more than 500 MW of the plants.
U.S. utilities have been forced under federal law to buy power from such
generators since the oil crisis in the 1970s.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com


On the trigger, our system calculates as follows:

NX1 (Jan 2000)  $6.016
Trigger price               - $5.180
Trigger credit  $0.836

Trigger credit            $0.836
Scheduled volume       x465,000
Credit to invoice  $388,740.00

Southwest Gas is saying that the trigger credit should be on the physical
flow, not the scheduled volume.  Can you please advise.

Thanks
Laurie

Jane M Tholt@ECT
01/25/2001 09:51 AM
To: Laurie Ellis/NA/Enron@ENRON
cc:

Subject: Re: December Gas

price on the 7th was 9.55
I don't understand the trigger question.  We need to get the back-up on the
penalty.  Patti needs to give you info regarding a penalty we wanto tocharge
them for February.  Please get with her ondetails.


Attached AS AN EXAMPLE ONLY is a "Transition Memo" which Marie prepared to
capture her current workload.  Could you please utilize that format and
prepare a summary of your current workload?  Mark, Carol and I would like to
receive your lists as soon as possible, but no later than Thursday evening.
Thanks.  Sara
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 03/28/2000
05:03 PM ---------------------------

	Enron North America Corp.

	From:  Marie Heard                           03/28/2000 12:53 PM

To: Mark Taylor/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Carol St
Clair/HOU/ECT@ECT
cc:
Subject: Transition Memo

Attached is a memo I prepared regarding those items I am currently
responsible for and their status.  Please let me know if you have any
questions or need anything else.

Marie


Hi Ami,

Sorry for not getting to you earlier. I am at home today. I don't think I have the MTH prices. I have requested those from RISI today so hopefully they will send them to me fast. The other prices are in the folder o:/Industrial Markets/Fundamentals/Paper/Pulp/RISI PRICES

Thanks,
Monika

-----Original Message-----
From: Thakkar, Ami
Sent: Wed 10/10/2001 12:30 PM
To: Causholli, Monika
Cc:
Subject: RISI

quick question....which report in RISI do i look at for these numbers? thanks!!

Conduct an correlation analysis between NBSK and Mixed Tropical Hardwood (MTH) price  and between BEK (Bleached Eucalyptus Kraft) and MTH


I don't know, babe.  What did you get?

	Enron North America Corp.

	From:  Shanna Husser @ EES                           09/21/2000 11:36 AM

To: Eric Bass/HOU/ECT@ECT
cc:
Subject:

I ordered your mom a present yesterday.  It should get here before her
birthday- I would think- because they said it was in stock.  Anyway- I didn't
know if you had her anything yet or not- but your welcome to give it to her
if you want-  I just read about it- and thought it would be something that
she would enjoy- and that you might enjoy giving to her.   But- like I said-
I ordered it on-line- so I haven't been able to examine it in person- but
sounded really neat.

Shanna


Chris,

Please come see Carlos and I about the transaction.

Kay

	From:  Chris Booth                           03/06/2001 12:00 PM

To: Carlos Sole/NA/Enron@Enron
cc: Kay Mann/Corp/Enron@Enron, Ben Jacoby/HOU/ECT@ECT, Fred Mitro/HOU/ECT@ECT

Subject: Blue Dog Amended LLC

Carlos,

I am working with NorthWestern in a negotiation similar to the Panda or Delta
deal regarding the placement of a turbine.  NorthWestern has requested a
draft of what the amended LLC document will look like, in particular, what
rights and control will Enron have?  I would appreciate if you could send me
a draft that I can forward to NorthWestern to further our negotiations.  We
are working on an expedited schedule and would appreciate a quick response.
Please advise when the document will be ready.

Thanks

Chris


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definately.  let me know.

 -----Original Message-----
From: 	"Allen, Jill (US - Houston)" <jilallen@deloitte.com>@ENRON
Sent:	Monday, October 22, 2001 10:38 AM
To:	Lenhart, Matthew
Subject:	RE:

oh - i forgot you said that you were going to N.O.
i'm not driving in for the game either.  a lot of people are though.
let me know what ya'll do for the game.
some people are going to a happy hour at Baker Street Pub on Wednesday - if any of you
are interested.
-----Original Message-----
From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com << File: mailto:Matthew.Lenhart@enron.com >> ]
Sent: Monday, October 22, 2001 9:47 AM
To: Jilallen
Subject: RE:
i was in new orleans for tim blanchard's wedding.  we watched it and then
went out in the french quarter.  i will probably watch the game this
saturday at woodrows.  i don't think i want to drive in for the game.
    -----Original Message-----
   From:   "Allen, Jill (US - Houston)" <jilallen@deloitte.com>@ENRON
   Sent:   Monday, October 22, 2001 8:32 AM
   To:     Lenhart, Matthew
   Subject:  RE:
   the weekend was pretty good.  one of my friends was in from austin and
   some of us went to Cafe Adobe and Sherlock's on Friday night.
   saturday night i had a date - dinner and then to downing street.
   i had to work all day on sunday.
   what did you do?  did you watch the game at woodrow's?
   -----Original Message-----
   From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com << File: mailto:Matthew.Lenhart@enron.com >>  <<
   File: mailto:Matthew.Lenhart@enron.com << File: mailto:Matthew.Lenhart@enron.com >>  >> ]
   Sent: Monday, October 22, 2001 7:54 AM
   To: Jilallen
   Subject: RE:
   thurs night was ok.  we went to taco milagro.  that place is full of old
   folks now.  how was the weekend?
   - This message (including any attachments) contains confidential
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   protected by law.  - If you are not the intended recipient, you should
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Hey ol buddy..
   call me 800-220-3333-ex2149.
                  BRETT

__________________________________________________
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Scott, I am leaving Virginia power and going to work at FP&L starting June 4,
2001.  I will then set myself up with this message center.