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February 7, 2001

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ocean view


Here is some information that will be of use to you.  Please give me a call
Wednesday or Thursday to talk about meeting on Friday.  See ya.
Ben
---------------------- Forwarded by Benjamin Rogers/HOU/ECT on 11/07/2000
09:36 AM ---------------------------

Brandon Neff@EES
11/06/2000 10:43 PM
To: Brandon Neff/HOU/EES@EES
cc: Benjamin Rogers/HOU/ECT@ECT, tragar@texas.net, Chris_Porter@Dell.com,
Chris Hilgert/HOU/ECT@ect, DMartin <dmartin@imperialcapital.com> @ ENRON
Subject: Re: Vegas

72 hours until G-Day.  I will be in Vegas at 7:30 on Thursday - let me know
when you are going to arrive so we can be at the tables at our hotel.   I am
going to get a tee time for Friday around 12 or 1.   I'll call tomorrow while
I am glued to CNN watching the election.  Martin, make sure you vote for GW,
your the only one whose vote is going to matter here.   The rooms are going
to be around $100 per person.

The only planned activity is golf on Friday afternoon, the rest will be up to
our collective wisdom.

Hotel:  Flamingo
BN Cell:  713-502-1920
BN Work:  713-853-3462 or 1800-97-ENRON, press 0 for the voice directory.

BN


The following EEAC Mailings have been added to the O:\HR\OLER\Everyone\EEAC Mailings\2001 Mailings Directory.

N01-38  EEAC'S 2001 FALL MEETING, Revised Program & Registration Information, OCTOBER 17-19, 2001, Radisson Hotel, Scottsdale, Arizona <http://www.eeac.org/private/N01-38.pdf>

01-199  Topical and Chronological Lists of EEAC Memoranda (January-September 2001) <http://www.eeac.org/private/01-199.pdf>  All EEAC memos issued since the beginning of the year are conveniently organized.

01-198  Eight OFCCP Enforcement Cases Currently Pending Administrative Review Include Newly Filed Pay Discrimination Complaint <http://www.eeac.org/private/01-198.pdf>  Our memorandum summarizes the eight active OFCCP enforcement cases that currently are winding their way through the complex administrative review process.

01-197  Quitting Because of Intolerable Working Conditions Can Result in Employer Liability for "Constructive Discharge" <http://www.eeac.org/private/01-197.pdf>  EEAC's special memorandum takes a look at the law of "constructive discharge," under which an employee who quits still can have a valid discrimination claim.

01-196  Ninth Circuit's Ruling in Little v. Windermere Relocation, Inc., Serves as Reminder That Employers Have Duty To Protect Employees Against Third-Party Harassment <http://www.eeac.org/private/01-196.pdf>  This recent appeals court decision reminds employers that they can be liable for unlawful harassment committed against their employees by third parties, including clients, customers, and service contractors.

01-195  Recent Events Have Prompted Member Inquiries on How To Make Certain Race/Ethnic Classification Determinations Involving "Middle East" Origins <http://www.eeac.org/private/01-195.pdf>
There is no consensus definition within the federal government on what constitutes the "Middle East," raising questions about how applicants and employees with origins in that part of the world should be classified for race/ethnicity recording purposes. Regardless, however, such individuals still are protected under federal antidiscrimination law.


Before you know it, we're gonna start outnumbering you guys.

 -----Original Message-----
From: 	Haughn, Jarrod
Sent:	Thursday, July 26, 2001 3:55 PM
To:	Scott, Susan M.; Sanchez, Monique
Subject:	RE: Aggie Happy Hour--tomorrow (7/26)

You're not going to be alone.  I'm going to invite two friends who graduated from texas University.  Not to mention, that Aimi Friend went there as well.

 -----Original Message-----
From: 	Scott, Susan M.
Sent:	Thursday, July 26, 2001 3:42 PM
To:	'jmenconi@adv-eng-ser-inc.com'; 'Friend, Trip \(JW\)'; 'Robert A. Parry, M.S., DABMP'; 'aimee girl'; Haughn, Jarrod; Sanchez, Monique
Subject:	RE: Aggie Happy Hour--tomorrow (7/26)

I know I've thoroughly enjoyed all the commentary.  I can honestly say, I think this is the first time I've been invited to an Aggie happy hour....and to that end, kudos to all those who opted out of Sam's Boat...you now may be forced to deal with a longhorn interloper.

 -----Original Message-----
From: 	"John Menconi" <jmenconi@adv-eng-ser-inc.com>@ENRON [mailto:IMCEANOTES-+22John+20Menconi+22+20+3Cjmenconi+40adv-eng-ser-inc+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Thursday, July 26, 2001 3:36 PM
To:	'Friend, Trip \(JW\)'; 'Robert A. Parry, M.S., DABMP'; 'aimee girl'; Haughn, Jarrod; Scott, Susan M.; Sanchez, Monique
Subject:	RE: Aggie Happy Hour--tomorrow (7/26)

This was all very entertaining.  Did I miss the meeting time?

-----Original Message-----
From: Friend, Trip (JW) [mailto:JWFriend@dow.com]
Sent: Thursday, July 26, 2001 3:29 PM
To: 'Robert A. Parry, M.S., DABMP'; aimee girl; Haughn, Jarrod; Scott, Susan M.; jmenconi@adv-eng-ser-inc.com; Sanchez, Monique
Subject: RE: Aggie Happy Hour--tomorrow (7/26)

sorry mo. i had not read your e-mail until after i had sent mine.  oops!

tony's sounds like fun to me, it's in the neighborhood, and i hear they have kick-ass ritas.

the friends are in.  see you at tony's.

-----Original Message-----
From: Robert A. Parry, M.S., DABMP [mailto:rparry@bcm.tmc.edu]
Sent: Thursday, July 26, 2001 2:38 PM
To: Trip (Work); aimee girl; Haughn, Jarrod; Scott, Susan M.; jmenconi@adv-eng-ser-inc.com; Sanchez, Monique
Subject: Re: Aggie Happy Hour--tomorrow (7/26)
By looking at the clock, it would appear the Mo beat Trip to the punch by 1 minute.  Accompany that with the fact that we have not gone to Tony's as a group, and just recently went to the Front Porch, and haven't been to Cahill's in a long time and it's crappy outside.  Therefore I have to give the nod to...

the Sanchezcamp, barring a major uproar from the Friend camp.

What say ye?

----- Original Message -----
From:Sanchez, Monique
To:"Friend, Trip (JW)" <JWFriend@dow.com>@ENRON ; Robert A. Parry, M.S., DABMP ; jmenconi@adv-eng-ser-inc.com << File: mailto:jmenconi@adv-eng-ser-inc.com >>  ; Scott, Susan M. ; Haughn, Jarrod << File: mailto:Jarrod.Haughn@enron.com >>  ; aimee girl
Sent:Thursday, July 26, 2001 1:59 PM
Subject:RE: Aggie Happy Hour--tomorrow (7/26)

I would personally...be up more for drinks and dinner at the same
time...than separate...but i'm a lush...can't hold my liquor.
>  -----Original Message-----
> From: "Friend, Trip (JW)" <JWFriend@dow.com>@ENRON
> Sent: Thursday, July 26, 2001 1:55 PM
> To: 'Robert A. Parry, M.S., DABMP'; jmenconi@adv-eng-ser-inc.com;
> Scott, Susan M.; Haughn, Jarrod; Sanchez, Monique; 'aimee girl'
> Subject: RE: Aggie Happy Hour--tomorrow (7/26)
>
> to avoid jay-rod's imminent brain implosion, here are my thoughts...
>
> for margaritas, how about tealas.
> if the rain holds up, how about the front porch pub - farrago combo.
>
> - tripas
>
----- Original Message -----
From:Sanchez, Monique
To:Haughn, Jarrod ; Robert A. Parry, M.S., DABMP << File: mailto:rparry@bcm.tmc.edu >>  ; Trip (Work) << File: mailto:JWFRIEND@dow.com >>  ; jmenconi@adv-eng-ser-inc.com ; Scott, Susan M. << File: mailto:Susan.M.Scott@enron.com >>
Sent:Thursday, July 26, 2001 1:54 PM
Subject:RE: Aggie Happy Hour--tomorrow (7/26)

TONY's on Ella.....730.....awesome mex food......strong margaritas....we
can do cahills after or all go home.  Any other suggestions????weather
looks crappy.
> -----Original Message-----
> From: Haughn, Jarrod [mailto:Jarrod.Haughn@ENRON.com]
> Sent: Thursday, July 26, 2001 1:50 PM
> To: Robert A. Parry, M.S., DABMP; Trip (Work);
> jmenconi@adv-eng-ser-inc.com << File: mailto:jmenconi@adv-eng-ser-inc.com >> ; Scott, Susan M.; Sanchez, Monique
> Subject: RE: Aggie Happy Hour--tomorrow (7/26)
>
>
> Somebody make a decision.  The suspense is killing me.
>
> I've just had my second Freebird's in the last 24 hours.  Life is
> good.
>
>
>
> -----Original Message-----
> From: Robert A. Parry, M.S., DABMP [mailto:rparry@bcm.tmc.edu]
> Sent: Thursday, July 26, 2001 1:40 PM
> To: Trip (Work); jmenconi@adv-eng-ser-inc.com << File: mailto:jmenconi@adv-eng-ser-inc.com >> ; Scott, Susan M.;
> Haughn,
> Jarrod; Sanchez, Monique
> Subject: Re: Aggie Happy Hour--tomorrow (7/26)
>
>
> So what is the status on all this brouhaha?  Anyone?  Anyone?
>
>
> ----- Original Message -----
> From: Sanchez, Monique <mailto:Monique.Sanchez@enron.com << File: mailto:Monique.Sanchez@enron.com >> >
> Sent: Thursday, July 26, 2001 10:17 AM
> Subject: RE: Aggie Happy Hour--tomorrow (7/26)
>
> how bout berryhill if it is nice outside?  i also leaning towards
> somewhere close to home.  we could also all go eat and drink ritas at
> Tony's on Ella if it is dreary.
>
>
> >  -----Original Message-----
> > From: "Friend, Trip (JW)"
> > > Sent: Wednesday, July 25, 2001 4:35 PM
> > To: Haughn, Jarrod; rparry@bcm.tmc.edu << File: mailto:rparry@bcm.tmc.edu >>  <mailto:rparry@bcm.tmc.edu << File: mailto:rparry@bcm.tmc.edu >> > ;
> Sanchez, Monique
> > Subject: RE: Aggie Happy Hour--tomorrow (7/26)
> >
> > maybe, maybe not.
> >
> > what about another location later in the evening (circa 7:30)?
> >
> > - mr. non-committal inside-the-loop
>
>
> > -----Original Message-----
> > From: Haughn, Jarrod [mailto:Jarrod.Haughn@ENRON.com]
> > Sent: Wednesday, July 25, 2001 12:35 PM
> > To: rparry@bcm.tmc.edu << File: mailto:rparry@bcm.tmc.edu >>  <mailto:rparry@bcm.tmc.edu> ; Sanchez,
> Monique;
> jwfriend@dow.com << File: mailto:jwfriend@dow.com >>  <mailto:jwfriend@dow.com>
> > Subject: Aggie Happy Hour--tomorrow (7/26)
> >
> >
> > Hey guys....
> >
> > Aggie Happy Hour is tomorrow night at Sam's Boat.  It's probably the
> > only time you can go there and not be surrounded by topless dancers,
> > muscleheads on roids, club freaks and 18 year olds.....
> >
> > If anyone is interested, lemme know....
> >
> > JROD


It was a beautiful day (and evening).  Congratulations to you both.  It is a
very sweet thing for two very sweet people, and I'm sort of choked up for
being asked to be in the wedding party.  It was a great day for everybody.
Congratulations.

Best,
Jeff

Beware, the mighty reefer....


Hi,

I got your message.  I am at my desk if you want to call me back.


It is amazing and yet not surprising how much Enron has accomplished in the
first six months of this year. You continue to make it happen.  We recognize
that you work hard every day to accomplish Enron,s business goals, and we are
pleased that many of you have shared in the company,s financial success
through Enron stock options.

As you may know, the current employee stock option program (also known as the
All Employee Stock Option Program or AESOP) began in 1994 and provided value
to participants through 2000.  Employees who have participated in this
program from its inception have realized a 1,119% increase in the value of
their stock options (assuming a stock price of $70) over the life of the
program.

Enron stock options are a valuable part of your total compensation package
and a contributing factor to your performance and to Enron,s continued
success.  Therefore, the Enron Executive Committee and the Compensation and
Management Development Committee of the Enron Board of Directors have decided
to continue to offer stock options as a part of your compensation package.

On May 1, 2000, the Committee approved an employee stock option program for
calendar years 2001 - 2005 (EnronOptions ) Your Stock Option Program).  It is
expected that EnronOptions ) Your Stock Option Program will be granted,
effective on or about December 29, 2000, for those employees who are eligible
on that date (please see note below).  The new program, which is subject to
final approval by Enron,s Board of Directors, is as follows:

? EnronOptions ) Your Stock Option Program will give stock options to
eligible full-time and part-time regular employees in domestic and
international companies/locations.
? The grant of non-qualified stock options will equal 25% of annual base
salary (5% of annual base salary for each year of a 5-year period) on
December 29, 2000. (Salary calculation and value may vary in some
international locations.)
? The Board will grant the stock options on December 29, 2000.
? Eligible employees hired in subsequent years will receive a prorated grant
of stock options.

Why commit your talent and energy to Enron?  EnronOptions ) Your Stock Option
Program, among other good reasons( that,s why.

In the coming weeks, you will be receiving more details about EnronOptions )
Your Stock Option Program.  To provide information and answer your questions,
we will introduce a special link on the Human Resources web-site, host
several eSpeak sessions and continue to communicate with you on a regular
basis.  In the meantime, if you have immediate questions, please contact your
Human Resources representative.

Note: In addition to final approval by Enron,s Board of Directors, granting
of options will be subject to New York Stock Exchange and state and federal
regulatory requirements.  It is expected that EnronOptions ) Your Stock
Option Program will be available to most Enron employees; however, some Enron
companies, employees may not be eligible due to legal, accounting, tax, labor
or business issues.  As you know, Enron changes to meet the needs of the
marketplaces we serve.  Given that need to change, we will continue to refine
the eligibility for EnronOptions ) Your Stock Option Program and will
communicate more details throughout the year with final eligibility being
determined on December 29, 2000.


Dear all,

If you recall, several months ago we held a meeting to discuss the bonus
planning needs for Commercial and Commercial Support Analysts now that they
have been combined into one program under the A/A Program umbrella.

I was asked to put together some information on how bonuses in 1999 compared
between Merchant Service Analysts, Commercial Analysts and Commercial Support
Sr. Specialists (and possibly even Managers) so that we could determine if
there would be a 2000 bonus compression problem in Analysts being placed in
Commercial Support positions and then having lower bonuses.  Attached below
you will find the results of that research.

In short the conclusions are these:
The 2000 system allows a difference between Commercial and Commercial Support
Analyst bonus matrices preventing the compression problem.
In 1999, Commercial Analyst and Commercial Support Sr. Specialist bonus
matrices were comparable - and this can still occur in 2000.
Bonus structures can easily be planned for 2000 so that no compression
problem occurs.

The data above is being sent to help you understand the concepts we discussed
and put closure to the meeting.  The 2000 bonus planning system allows for a
variation within Analyst categories (commercial and commercial support) and
will meet the business needs.  Please let me know if you want to discuss
further or would like to see the raw data used in the research.

Regards,
Kim


I will check with Prebon asap.

   Kate Symes @ ECT                05/02/2001 10:56 AM

To: Evelyn Metoyer/Corp/Enron@ENRON
cc:

Subject: Re: Prebon deal errors from yesterday

I double-checked with Bob, and he said Prebon reported these two trades as
peak. The other two were in fact reported as off-peak - he just entered them
incorrectly. But as far as this sleeve goes, there's no way one side is peak
and the other isn't - Prebon has to make up their minds!

Again, let me know what you find out. Until then, we recognize the two trades
as they are.

Thanks,
Kate

Evelyn Metoyer@ENRON
05/02/2001 08:59 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Re: Prebon deal errors from yesterday

That's what I was confused about because Prebon shows this deal as peak and
we show it as peak and I know it is the other side of a sleeve.  Can you
double check with Bob for accuracy.

Evelyn

   Kate Symes @ ECT                05/02/2001 10:43 AM

To: Evelyn Metoyer/Corp/Enron@ENRON
cc:

Subject: Re: Prebon deal errors from yesterday

Does this mean that 598738 should be off peak hours as well? Because 598739
is only one side of a sleeve deal for EES. I would think that both sides need
to have the same hours......

Let me know, and I'll change them accordingly.

Thanks,
Kate

Evelyn Metoyer@ENRON
05/02/2001 08:43 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Re: Prebon deal errors from yesterday

sorry it is 598739

   Kate Symes @ ECT                05/02/2001 10:25 AM

To: Evelyn Metoyer/Corp/Enron@ENRON
cc:

Subject: Re: Prebon deal errors from yesterday

598736 and 598737 have been changed to off-peak hours. But I can't pull up
306927. Is this the right deal number?

Kate

Evelyn Metoyer@ENRON
05/02/2001 08:03 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Prebon deal errors from yesterday

Bob Badeer
deal 306927
Prebon shows as off-peak hours....enpower has peak hrs

Bob Badeer
deal 598737
Prebon shows as off-peak hours....enpower has peak hrs

Bob Badeer
deal 598736
Prebon shows as off-peak hours....enpower has peak hrs


Hi,

ANGELA BARNETT would like you to see this Web page:

A Few Reasons to be Thankful
(By Funny Greetings)

Click below to see this page and to join the Funny Greetings mailing list:
http://www.flowgo.com/rsubf.cfm?id=efxbzDggorvtwmqStzecyPlgt&s=21&p=2349&d=11-
21-00

To just visit the recommended page, click here:
http://www.flowgo.com/refer/redir.cfm?page_id=2349&d=11-21-00

================================================

NO Cost Evaluation!  No Credit Checks!  Pre-qualify Online Instantly!  Click
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AOL LINK

================================================

The flowgo.com mail referral system is meant to be used exclusively as a way
to forward preferred pages to friends.

One of your friends sent this email through our website.
Friend's name: ANGELA BARNETT
Friend's IP address: 192.152.140.9
Date and Time: 11/21/00 3:38:41 AM Pacific

If you feel this email was sent to you in error, or you do not know the
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If you wish to never receive a referral from a friend, click the link below.

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David,

When do you need my signature. I missed the presentation last Tuesday
(I was sick) and would like a day or two to review the product.

Vince

From:  David Port @ ENRON
        11/08/2000 02:43 PM

To: Vince J Kaminski/HOU/ECT@ECT, Robbi Rossi/Enron Communications@Enron
Communications, Tanya Rohauer/HOU/ECT@ECT, James Ginty/Enron
Communications@Enron Communications, Kristin Albrecht/Enron
Communications@Enron Communications
cc: Ted Murphy/HOU/ECT@ECT, Barry Pearce/Enron Communications@Enron
Communications, Michael Moulton/Enron Communications@Enron Communications
Subject: DRAM Trading Authority

Here is the latest trading request:

Specifically it requires the following to get it over the line:

Vince, your concurrence with a simplistic VAR calculation the start - up
period

Everybody else, your signatures, or agreement to sign via email

In addition, here is the commercial presentation which wil be attached to the
request on its way to EB5007

Many thanks
DP


thanks


Colleen,

 Please add Mike Grigsby to the distribution.

 On another note, do you have any idea how Patti is holding up?

Phillip


Joni, I was wondering if you could find out for me who the Marketer is for Post Rock Gas.  The reason I would like to know is they are the last hold-out shipper as far as signing their extension agreement so that we can send them their Rate Case Refund invoices which are dated September 1, 1999.  I would like to see if a Marketer could call them to see if we could get them to sign so that we could finally get the last of these invoices sent out and cleared from our accounts receivable account.  If you have any questions, please let me know.

Thanks,

Raetta


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


The report named: West Power Position <http://erv.corp.enron.com/linkFromExcel.asp?report_cd=29&report_name=West+Power+Position&category_cd=6&category_name=WEST&toc_hide=1&sTV1=6&TV1Exp=Y&current_efct_date=10/22/2001>, published as of 10/22/2001 is now available for viewing on the website.


$51 is the right price.  The deal has been changed.

Thanks

 -----Original Message-----
From: 	Purcell, Mike
Sent:	Friday, July 27, 2001 11:30 AM
To:	Alonso, Tom
Cc:	Salisbury, Holden; Fischer, Mark
Subject:	SRP deal 683455.1

Tom,

Can you confirm our price on this deal.

SRP is telling us that they see this deal at $51.  We have it at $41.  I have requested the tape from SRP.

MP


Please call me if you have questions.

Shona Wilson
Director - Risk Operations
713 853 9123


---------------------- Forwarded by Mark Taylor/HOU/ECT on 04/18/2000 07:27
PM ---------------------------

	Enron North America Corp.

	From:  Mark E Haedicke                           04/18/2000 01:10 PM

To: Michael R Brown/LON/ECT@ECT, Mark Taylor/HOU/ECT@ECT, kraisler@sc.com
cc:
Subject: Site Structure Diagram

For your review -- the latest diagram for the paper website.  Michael, I am
free to discuss this at your convenience.  I am hopeful this structure will
be unregulated in Europe as well.  Mark
---------------------- Forwarded by Mark E Haedicke/HOU/ECT on 04/18/2000
01:03 PM ---------------------------

	Enron North America Corp.

	From:  Brandon Wax                           04/18/2000 11:48 AM

To: Mark E Haedicke/HOU/ECT@ECT
cc: Greg Piper/Corp/Enron@Enron
Subject: Site Structure Diagram

Mark,

Attached is the site structure diagram we were looking at earlier.  Let me
know if you have any questions or would like to discuss the credit interface
more thoroughly.  I will also forward the clean presentation copy with I get
it back from graphics.

       -Brandon


I have to look for the house key at home.  I know I don't have it on my
keyring.

To: Chris Germany/HOU/ECT@ECT
cc:
Subject: EB Location

Chris,

I need to get your EB location so that I can forward the owner's manual to
you for your drill.

Also, I need to get my house key back from you if you still have it.

Thanks!  md


For Microsoft -- I will most likely be unavailable today and tomorrow as we work through our options..

I'll call you later.

John D. Suarez
Enron Broadband Services
(713) 853-5267 work
(713) 443-5267 mobile
(877) 597-0646 pager
email: john.suarez@enron.com


OUCH!  I guess Kerri won't be inviting me to go to a Dolphins game next month.

 -----Original Message-----
From: 	Mann, Kay
Sent:	Wednesday, November 28, 2001 3:38 PM
To:	Krause, Greg
Subject:	RE: GT

I suspect (don't know) over $100k (or 200k) considering the burn rate.

 -----Original Message-----
From: 	Krause, Greg
Sent:	Wednesday, November 28, 2001 3:27 PM
To:	Mann, Kay
Subject:	RE: GT

how much do we owe them?

 -----Original Message-----
From: 	Mann, Kay
Sent:	Wednesday, November 28, 2001 1:57 PM
To:	Clark, Barton; Tweed, Sheila; Pais, Randy
Cc:	Hodge, Jeffrey T.; Jacoby, Ben; Krause, Greg; Krimsky, Steven
Subject:	GT

I have suggested to Greenburg Traurig that they stand down for the next few days until the path forward becomes more clear.

Kay


a good one

 -----Original Message-----
From: 	Dabraver@aol.com@ENRON
Sent:	Saturday, November 17, 2001 6:32 PM
To:	pcc@springmail.com; andy@braversports.com; LBraver@aol.com; craigc@compushine.com; gallery@historicaldesign.com; STEPHANIE@shill15.freeserve.co.uk; richard@fgguk.com; caroline.lang@sothebys.com; Donandpats@aol.com; neilmcd2000@yahoo.com; murphyt@bloomberg.net; RNeffPCCNYC@aol.com; FRANKIE@frankie.homechoice.co.uk; lesliepacker@hotmail.com; bill@rauantiques.com; RUZHNIKOV@russianarts.com; WCarsonS@aol.com; will_schollaert@acsdataline.com; Shankman, Jeffrey A.; andrew.simon@db.com; Tarastom@aol.com; gordonwatson@btinternet.com
Subject:	Fwd: An old hillbilly farmer

Content-Transfer-Encoding: 7bit
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From: WalterGuru@aol.com
Full-name: WalterGuru
Message-ID: <aa.129ddf3.2917e3d2@aol.com>
Date: Mon, 5 Nov 2001 07:45:06 EST
Subject: An old hillbilly farmer
To: AudCraw6@aol.com, Devilprint@aol.com, Dabraver@aol.com,	bnbromson@mindspring.com, anitajoy@earthlink.net, rmfurman34@yahoo.com,	ginnykiley@hotmail.com, Herzkoning@aol.com, Nickpet@aol.com,	BocaBelly@aol.com, jbstarkman@earthlink.net, drs94115@yahoo.com,	RWeiss9191@aol.com
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An old hillbilly farmer had a wife who nagged him unmercifully.  From
morning 'til night (and sometimes later), she was always complaining about
something.  The only time he got any relief was when he was out plowing
with his old mule.  He plowed a lot.

One day, when he was out plowing, his wife brought him lunch in the field.
He drove the old mule into the shade, sat down on a stump, and began to eat
his lunch.  Immediately, however, his wife began haranguing him again.
Complain, nag, nag; it just went on and on.  All of a sudden, the
old mule lashed out with both hind legs and caught her smack in the back of
the head, killing her dead on the spot.

At the funeral several days later, the minister noticed something rather
odd.  When a woman mourner would approach the old farmer, he would listen
for a minute then nod his head in agreement; but when a man approached him,
he would listen for a minute then shake his head in disagreement.  This was
so consistent, the minister decided to ask the old farmer about it.

So after the funeral, the minister spoke to the old farmer, and asked him
why he nodded his head and agreed with the women but always shook his head
and disagreed with the men.

The old farmer said, "Well, the women would come up and say something about
what a wonderful person my wife was, so I'd nod my head in agreement."

"And what about the men?" the minister asked.

"They all wanted to know if my mule was for sale."

  >>


Karen - thanks for getting the word out!

PowerPlus

------------------------------------------------------------------------------
--

Seeking to eliminate price caps as solution
Enron Pushes Four-Point Fix To CA Wholesale Power Market

Broad-scale power marketer Enron, on the eve of the release of a proposed
FERC remedy, has delivered a four-point plan of its own to remedy structural
problems in the California wholesale power market.

Observers say that the power marketer is seeking to push FERC into preempting
state rules with structural changes for the California market, rather than
continue reliance on price caps and other bidding controls as an interim
solution to nascent wholesale power markets. In a white paper submitted to
the commission for consideration, Enron tells the commissioners that the
"problem in California is not that competition cannot work but that it has
not been given a chance to work because the existing structure of the
California market is only half complete."

Enron's proposal, developed by two experts who are intimately familiar with
the California Independent System Operator (Cal-ISO), suggests that FERC
order four specific structural remedies:

-- Removing Barriers to Market Transparency. Enron argues that the Cal-ISO
"must release more information to the public in order to allow for efficient
arbitrage." The absence of this information "is thwarting critical elements
necessary for a vibrant and competitive electricity market;"

-- Development of Forwards Markets and Risk Management. Here Enron places
some of the blame on state regulators, stating that the "rules established by
state authorities make the wholesale market in California overly reliant on
real-time and spot market supplies." This has prevented the development of an
adequate forwards market. "Virtually all observers agree that forwards
markets are critical for whole market efficiency and competitiveness." Enron
urges FERC to "preempt state policies that are interfering with the use of
forwards markets" by utility distribution companies. [On the same day that
Enron filed its white paper with FERC, Cal-ISO filed a plan with the
commission intended to shift power sales from the higher-priced spot market
to the forward market. The plan would cap generators' bid prices to $100 per
megawatt hour (MWh) unless they offered a minimum of 70 percent of their
power for sale in the forward markets.];

-- Removing Distortions on Prices That Affect Supply and Investment.
According to Enron, generation supply and electricity demand signals "are
distorted in the California market." Arguing against continued use of price
caps, Enron states unequivocally: "Dealing with this through continuous and
increasingly severe price caps causes price discrimination and creates
disincentives for the development of needed generation." Enron says there are
changes that can be made to the bidding process that will make the California
market "more efficient, with undermining its long-term development through
short-sighted price caps;

-- Revising Cal-ISO and CalPX Governance Structures to Ensure Independence.
Enron argues that the Cal-ISO and the California Power Exchange Corporation
(CalPX) are governed by stakeholders that are not independent from local
political forces and from the incumbent utilities that formed the basis for
the ISO. "This conflicts with the 'bedrock' policy of [FERC] Order No. 888
that ISOs must be independent," Enron asserts. "The commission should
therefore change the California ISO's board from a stakeholder board to an
independent board comprised of industry experts."

Enron tells the commission that structural changes are needed instead of
continuation of short-term price caps and bidding controls. FERC is
considering whether to implement a policy of price caps and bid controls
being pushed by incumbent utilities for the California market and possibly
for the New York market as a solution to shaky wholesale bidding markets.
Power marketers are pressing hard for FERC to propose a more pro-competitive
solution. Enron tells FERC that its proposed changes will prevent the
commission from abandoning "its pervasive scheme of regulation (under Order
No. 888 and Order No. 2000) to increase competition in the wholesale
electricity market, as it would if it maintains perpetual price caps, or
worse yet, it implements a return to cost-based generation rates." FERC is
considering a proposal by the California Municipal Utilities Association for
just that, based on the argument that reregulation is required until more
generation capacity is brought on line in California.

The Enron white paper comes just as FERC commissions begin to review a report
by FERC staff on what went wrong in the California market last summer and a
proposed remedy scheme. The commission is scheduled to release the findings
of the report on November 1, along with a proposed remedy. There will be a
three-week period of public review and comment before FERC makes a final
decision.

There has been much controversy over whether FERC should release the findings
of the FERC probe immediately for stakeholders to review before they comment
on a proposed FERC remedy. But FERC chairman James Hoecker has held hard,
even in the face of criticism by fellow commissioner Curt Hebert, arguing
that the commission needs time to review the document before releasing it.


Bob, Mark and Jorge,
here is a pretty cute email from Gina regarding the status of her visit to
Mexico.
I've just sent her your emails so she can send you future updates directly.
Dave

---------------------- Forwarded by Dave Guzman/AV/FD/FluorCorp on
02/28/2001 02:26 PM ---------------------------

lageegi@netscape.net on 02/28/2001 02:05:01 PM

To:   Tina.Casados@qwest.com, sodasac@onebox.com, timbartel@onebox.com,
      defitzpatrick@juno.com, harlley_quinn@comic.com,
      bartelfamilia@home.com, phyr@yahoo.com,
      masterpeaceproductions@home.com, Dave.Guzman@fluor.com
cc:

Subject:  disfrutando mexico

hi mi familia...
im here in mazatlan, enjoying the warm beach wheather. last night was the
carnaval, the biggest event in mazatlan, but i had a fever, so we%re just
taking it easy...we decided not to feel the pressure of driving to our
destination, rather we just are playing it safe...no stress. yesterday we
were in culiacan and we spent the whole day with the family. they are
soooooo nice!!! i contacted Jorge, the son of citas brother, guillermo. he
came to meet us for what i thought was just going to be breakfast. he and
his wife (i forget her name) and grandson Jorgito the 3rd drove us around
Culiacan to the registro civil, where i was looking for mom%s birth record.
we were directed to go to navolato, which is about a half hour away, they
had no problem driving us there. it was going to take 3 days to have the
procces done, but since Jorge knows the people there, we had it done in 2
hours!!! we got some videos of the navolato, including where cito used to
work at the sugar refinery, and th!
e street where cito, cita, Uncle Jorge and mom used to walk. we then went
to visit Socorro, citas sister, her husband, and her sons Oscar and Carlos.
Socorro is so sweet and looks a lot like cita, inluding the use of a walker
due to a problem with her right hip. she was so extatic to see me and
immediately hugged me and didn%t let me go. her face was so lit up, i think
it meant a lot to her to have family come and visit, even though she hadnt
seen me since i was a child. she also asked about Beto!!! "hows Beto?", she
said.."Is he married yet?" the whole family was very nice and accomidating,
and we got lots of pictures and video, including a greeting from Socorro to
Cita and Ram?n. then we left from there and went to a bay nearby called
Altata where we ate the freshest seafood imaginable! by  the time jorge
dropped us of at my car, it was already night time, where we said our
goodbyes and planned to have another reunion in a few months, when we can
spend more time. it was trul!
y a "padrisimo" experience to see the area where mom was born, and dont
worry, Bob, i didn%t leave the pictures behind!!! i%ll be in contact again
soon, as we are planning to be in mexico city by friday night or saturday
morning to get to the concert "Unidos Por La Paz".. a benefit for peace in
Chiapas. Calling from here is very expensive, so i will  try to do more
emails. well, i love you all, and i hope you are all doing great!!
love Gina
ps..DAD!!! phone number to reach me in Mexico: 5-90-34-70  i love you!!!
__________________________________________________________________
Get your own FREE, personal Netscape Webmail account today at
http://webmail.netscape.com/

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


Let's discuss further, but I believe that the tariff would be a "generic" one
for network service, with the price, terms and conditions dependent upon the
size and other attributes of the customer.  Not aware of any negotiated rates
available from the US/Mex border to the burner tip in S.D.

Best,
Jeff

	Kurt Lindahl/ENRON@enronXgate
	06/18/2001 04:31 PM

		 To: Jeff Dasovich/NA/Enron@Enron
		 cc: Robert Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jody
Crook/ENRON@enronXgate, Mingcheng Lian/AP/Enron@Enron, Les
Webber/ENRON@enronXgate
		 Subject: Backhaul from the Baja to Socal

Jeff,

We've obtained a tariff filing that Sempra made with the CRE in Mexico to
determine the transportation rates charged by Sempra International to
transport gas in Mexico.  Can you help us determine the transport rate
charged to move gas from the California border to the Mexican border through
Socal and SDG&E?  I understand that SDG&E may be able to negotiate a rate
that includes the fee paid to Socal?  Is that correct?

What I'm trying to determine is what will be the rate for us to obtain a
backhaul from a new LNG regas terminal in Mexico, through the Sempra
International pipeline in Mexico and through SDG&E, to an end user behind
Socal?  Do you know how this works or do you have a suggestion on how we can
determine the max rates, plus determine what "actual" rates have been
negotiated?  We have discussions with Sempra this friday and want to table
the issue of firm backhauls.

Thanks

Kurt


March 23, 2001

Enron North America Corp.
1400 Smith Street
Houston, TX  77002-7361
Attention:  Benjamin F. Jacoby
                 Executive Director

Re:  Acquisition of General Electric 7EA Turbines

Ladies and Gentlemen:

Pursuant to our discussions last week, the following summarizes the main
commercial terms agreed to by NorthWestern Corporation (&NorthWestern8) and
Enron North America Corp. ("ENA") regarding NorthWestern,s purchase through
the LLC referred to below or as otherwise accomplished without violation of
the Turbine Contract referred to below (the &Purchase8) of two (2) General
Electric (&GE8) 7EA combustion turbines (the &Turbines8), the first of which
is presently located at a GE storage facility, and the second of which is
scheduled to be available for delivery in February, 2002, and both of which
are subject to purchase from GE under an agreement with GE dated as of May
31, 2000 (the &Turbine Contract8) with respect to which ENA has the right to
cause a joint venture limited liability company in which, prior to commercial
operation of the Turbines, ENA holds a 20% equity interest and a wholly-owned
NorthWestern subsidiary (the &NorthWestern Subsidiary8) holds an 80% equity
interest (the &LLC8) to become the purchaser:

1.  Purchase Price:  NorthWestern will pay ENA $48.0 million for the Turbines
(subject to adjustment as described below). [Adjusted how?  Need specific
reference. Is the statement that the payment is for the turbines consistent
with the structure?  Definitely sounds like a UCC deal,  for what that,s
worth.]
2.  Closing Date of Purchase:  The Purchase will close on a date on or prior
to September 1, 2001, as selected by NorthWestern by not less than 30 days,
written notice to ENA,(provided that such notice may not be given less than
30 days after the signing of a definitive agreement relating to the
Purchase).  [What happens at closing?  Payment of the balance?  In the
interim are we going to be obligated to perform under the GE contract in a
certain manner?  Are we taking on implied obligations to NW?]
3.  Cash Down Payment:  NorthWestern will pay ENA an $8.0 million down
payment for the Turbines.  The first installment ($3.0 million) of the $8.0
million down payment will be due upon the signing of a definitive agreement
with ENA providing for the Purchase.  The second installment ($5.0 million)
of the $8.0 million down payment will be due at the earlier of (i) closing of
the Purchase, or (ii) July 15, 2001. [The remaining $40m due at closing, as
well as any other amounts due to changes, etc?]
4.  Liquidated Damages:   If, prior to the assignment of the Turbine Contract
[is proper reference to closing?], the purchaser under the Turbine Contract
receives any liquidated damages under the Turbine Contract, then ENA will
give notice thereof to NorthWestern as promptly as possible. [Then what?]
5.  Carry Period:  ENA will provide an interest-free carry on the unpaid
purchase price of the Turbines until July 15, 2001. If the closing of the
Purchase occurs after July 15, 2001, then the unpaid purchase price of the
Turbines will be increased by interest at the rate of 7.5% per annum on the
unpaid purchase price of the Turbines ($40.0 million) for each day from, and
including, July 15, 2001 to, but excluding, the closing date.
6.  Dual Fuel Conversion on Unit 2:  ENA will not proceed with this change
order to effect the conversion.  Instead, it will be the responsibility of
NorthWestern to effect the change order with GE.  [does this mean they will
be negotiating a change order while E Next is still the purchaser? Are we
committing to pay for the increase?  Does the purchase price increase?  Is
there a limit?]
7.  Unpaid Price of Second Turbine:  At the time of closing, one or more
installments of the purchase price of the second Turbine will be payable to
GE under the Turbine Contract (the &Unpaid Installments8).  ENA will be
obligated to pay the Unpaid Installments to GE as they become due under the
Turbine Contract.
8.  Guarantees:   There will be no guarantee by Enron Corporation of any of
the representations, warranties, covenants, indemnities or other obligations
of ENA in connection with the Purchase.  All obligations of the LLC under the
Turbine Contract, as well as all obligations of the NorthWestern Subsidiary
to ENA in connection with the transaction, will be guaranteed by NorthWestern
Corporation.

[governing law? Limit on remedies/damages for this letter? Dispute resolution?

NorthWestern and ENA have acknowledged that, subject to review and approval
of the structure of the Purchase and the negotiation of final documentation
relating to the Purchase (which documentation will incorporate the commercial
terms set forth above), the above commercial terms have received all
necessary NorthWestern and ENA internal approvals. [Is this true for Enron?]
In light of this acknowledgement, NorthWestern and ENA (by signing this
letter in the space provided below and returning the same to NorthWestern)
agree to negotiate, in good faith, to agree upon such structure and such
documentation, with a view to executing and delivering a mutually acceptable
definitive agreement relating to the Purchase as promptly as practicable. For
the avoidance of any doubt, it is expressly stated, acknowledged and agreed
that each of NorthWestern and ENA must be satisfied with such structure and
such documentation in its own discretion.

[I question whether there is enough wiggle to keep this from being a binding
obligation to sell]

By agreeing to the commercial terms set forth in this letter (by signing this
letter in the space provided below and returning the same to NorthWestern),
ENA grants NorthWestern, and NorthWestern grants ENA, an exclusive &no shop8
period through the close of business on Friday, April 13, 2001; and ENA
agrees that, during such &no shop8 period, ENA will not discuss or negotiate,
directly or indirectly, with any person or entity other than NorthWestern for
or in respect of the purchase or other acquisition by such person or entity
of the Turbines; and NorthWestern agrees that, during such &no shop8 period,
NorthWestern will not discuss or negotiate, directly or indirectly, with any
person or entity other than ENA for or in respect of the purchase or other
acquisition by NorthWestern of turbines from such person or entity..  As
consideration for ENA agreeing to such &no shop8 period, NorthWestern will
pay to ENA, via wire transfer on the date of receipt by NorthWestern of ENA,s
signed agreement, $1.0 million (the & No Shop Payment8).  The No Shop Payment
will not be subject to refund by ENA for any reason or upon any circumstance
(including, without limitation, failure of NorthWestern and ENA to agree upon
the structure of, and enter into a definitive agreement relating to, the
Purchase).

If ENA is in agreement with the foregoing, then please so indicate by signing
this letter in the space provided below and returning the same to
NorthWestern (by facsimile at 605/978-2840 and to the attention of the
undersigned).

       Very truly yours,

       NORTHWESTERN CORPORATION

       _____________________________
       By: Michael J. Young
       Title: Senior Corporate Counsel

AGREED AS AFORESAID AS OF THIS 23rd  DAY OF MARCH 2001:

ENRON NORTH AMERICA CORP.

________________________________
By: Benjamin F. Jacoby
Title: Executive Director

[Need a different Enron signatory]


TASK ASSIGNMENT

Status:		completed

Task Priority:		1
Task Due On:		8/9/2000
Task Start Date:	8/9/2000


Read about the Enron Xcelerator in eBiz.

Also in this issue:
An update on Dabhol Power Company
Northern Border Partners & Global Strategic Sourcing team up online
Enron's latest accolades

It's all in the latest eBiz.  Go to home.enron.com, click Publications, then
click eBiz, and "eBiz February 16, 2001."


Cathy:  I will be working in the London office during the week of January 15,
so I will not be at the staff meeting on January 16.  --Sally

From: Cathy Phillips on 01/12/2001 01:53 PM
To: Mark Frevert/NA/Enron@Enron, Mike McConnell/HOU/ECT@ECT, Jeffrey A
Shankman/HOU/ECT@ECT, 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, Kathryn
Corbally/Corp/Enron@ENRON, Stephen H Douglas/HOU/ECT@ECT, Jennifer
Fraser/HOU/ECT@ECT, Shanna Funkhouser/Corp/Enron@ENRON, Eric
Gonzales/LON/ECT@ECT, Gary Hickerson/HOU/ECT@ECT, Vince J
Kaminski/HOU/ECT@ECT, Larry Lawyer/NA/Enron@Enron, Chris Mahoney/LON/ECT@ECT,
George McClellan/HOU/ECT@ECT, Thomas Myers/HOU/ECT@ECT, John L
Nowlan/HOU/ECT@ECT, Jere C Overdyke/HOU/ECT@ECT, Beth Perlman/HOU/ECT@ECT,
Brent A Price/HOU/ECT@ECT, Daniel Reck/HOU/ECT@ECT, Cindy
Skinner/HOU/ECT@ECT, Stuart Staley/LON/ECT@ECT, Mark Tawney/HOU/ECT@ECT,
Scott Tholan/Corp/Enron@Enron, Lisa Yoho/NA/Enron@Enron
cc: Nicki Daw/NA/Enron@Enron, Cathy Phillips/HOU/ECT@ECT, Jennifer
Burns/HOU/ECT@ECT, DeMonica Lipscomb/Corp/Enron@ENRON, Yvonne
Francois/Corp/Enron@Enron, Angie Collins/HOU/ECT@ECT, Donna
Baker/HOU/ECT@ECT, Helen Marie Taylor/HOU/ECT@ECT, Chantelle
Villanueva/HOU/ECT@ECT, Betty J Coneway/HOU/ECT@ECT, Patti
Thompson/HOU/ECT@ECT, Cherylene R Westbrook/HOU/ECT@ECT, Candace
Parker/LON/ECT@ECT, Joya Davis/HOU/ECT@ECT, Sharon Purswell/HOU/ECT@ECT,
Gloria Solis/HOU/ECT@ECT, Brenda J
Johnston/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kim
Hickok/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Susan McCarthy/LON/ECT@ECT, Paula
Forsyth/Corp/Enron@ENRON, Kristy Carnes/NA/Enron@ENRON, Shirley
Crenshaw/HOU/ECT@ECT, Jody Underwood/NA/Enron@ENRON, Kathleen D
Hardeman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stuart
Cichosz/Corp/Enron@ENRON, Judy Zoch/NA/Enron@ENRON, Sunita
Katyal/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: EGM Staff Meeting - Reminder

Just a reminder that the next EGM weekly staff meeting will take place on
Tuesday, January 16th, from 8:30 - 9:30 a.m., in video conference room EB
30C1.  Due to the company holiday in observance of Martin Luther King day on
Monday, January 15th, the staff meeting has changed dates and locations for
next week only.  The staff meetings will resume their regular schedule on
Monday, January 22nd, in EB 32C2, and will continue on a weekly basis on
every Monday at the same time and location unless notified otherwise.  The
schedule for the next two weeks is as follows:

 Tuesday, January 16th 8:30 - 9:30 a.m.  EB 30C1
 Monday, January 22nd  8:30 - 9:30 a.m.  EB 32C2

Please let me know if you will be unable to attend the meeting on Tuesday,
January 16th.  Thank you.

Cathy Phillips
X-36898


-----Original Message-----
From: 	Dicarlo, Louis
Sent:	Tuesday, June 04, 2002 3:01 PM
To:	Germany, Chris
Cc:	Gregory, Paul
Subject:	Physical Deal Research

These physical CPs show up as live.  However myself and others are not aware of any activity with these CPs.  Please investigate.  (Any gas taken or delivered?  Last month of activity? Etc.)

CP Short Name		CP Name
KLJ			K.L.J., Inc.
RICELANDPETCOM	Riceland Petroleum Company
WISEROILCOM		Wiser Oil Company, The

Thanks

Louis R. DiCarlo
ENA Gas
Phone: 713-345-4666
Email: louis.dicarlo@enron.com


FURTHER CLARIFICATION TO THE MESSAGE BELOW, for PERSONAL AIRCRAFT USE, the
members of the Office of the Chairman must approve the requests.  In addition
to Ken and Jeff, Joe Sutton will also approve personal requests.

This is the revised list of persons authorized to approve use of the company
plane.  If there is a duplicate request for a plane, one of the members of
the Office of the Chairman  (Ken, Jeff or Joe) will determine priority.

Cliff Baxter
Mark Frevert
Kevin Hannon
Ken Harrison
Joe Hirko
Stan Horton
Ken Lay
Rebecca Mark
Mark Metts
Lou Pai
Ken Rice
Jeff Skilling
Joe Sutton
Tom White

Please call if you have any questions.

Rosalee


Mary:  Mieco is one of Carol's "Top Tens".  Would you please take this one?
Ed Sacks will be calling you shortly.  Thanks.  Sara


Dale,

My recommendation is to make Steve the head of the research unit in London.
We were talking originally about September but I think we should accelerate
this process.
Of course, Anjam will be very unhappy about it, but we cannot manage around
him
any longer.

I think that the promotion should be combined with a salary increase.
I would like to offer him a significant increase that
goes with expanded responsibilities and much higher visibility.
A salary increase will also bring him closer to the market.
 We see the market for  technical people going through the roof in
practically every location
where we operate.

A contract is not a good solution in my view. It creates a sense of false
security for
both an employee and the company.

I shall send a message to John Sherriff with my recommendation. I shall cc
you.
I would appreciate if you could bring it up with John as well.

Vince

Dale Surbey
07/11/2000 10:23 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Steve Leppard

Hi Vince,

HR is working on a mid-year salary review for London people that have a
noticeable gap between their compensation at Enron and what we would have to
pay in the market for a replacement.  They highlighted Steve as someone with
a potential gap - particularly in light of what we're seeing in our quant
recruiting effort for credit trading and research.

I'd like your opinion on the best way to make sure we keep Steve happy and
keep him at Enron.  There are several things I see we can do:

1)  Give him a mid-year pay increase to move him closer to market.  I'm not
sure this is the best way to go, especially if we only offer him a token
salary increase.

2)  Offer him more responsibility:  What are your thoughts on timing for
making Steve the official head of the London research team?  With my move to
EBS, should we accelerate this?  I think this is good way to keep him happy
and motivated, and then follow up with a more meaningful salary review at
year-end (as part of the regular process) that takes into account his greater
responsibility.

3)  We have some people that we're trying to get under long-term (3-yr)
contract with a 12-month notice clause.  Obviously anyone signing one of
these will want significant up-front compensation for being handcuffed.
We've not had a lot of success with these here in London, and I would prefer
to keep Steve happy so he wants to stay with Enron rather than contractually
binding him to the job.

I'd value your thoughts on this.

Thanks,

Dale


$4.14 and $4.155


Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 03/20/2001 12:59 PM -----

	"Yaish, Yair (OGC)" <YYaish@exchange.ml.com>
	03/19/2001 01:59 PM

		 To: "'kpolozie@mwe.com'" <kpolozie@mwe.com>, "Yaish, Yair (OGC)"
<YYaish@exchange.ml.com>, Janice.R.Moore@enron.com, sshackl@enron.com,
TeiglandL@sullcrom.com, gilbergd@sullcrom.com, "McMurray, Locke (OGC)"
<LMcMurray@exchange.ml.com>
		 cc: ppantano@mwe.com, rpaul@mwe.com, darezina@mwe.com
		 Subject: RE: Transfer and Assumption Agreement.

Attached are my comments to the transfer agt.  I think it makes sense to
attach the form of each side letter to the agreement for clarity.

I have just gotten off the phone with Lauren and Ken Blasko.  There were
minor comments to LOC Facility that have been faxed to ABN Amro.  We expect
that ABN Amro will execute the LOC shortly as soon as they pick up the fax.

The LOC will be sent to Lauren.  If there are no further commetns to the
various contracts, we shoudl be prepaerd to exchange signature pages upon
conclusion of the LOC Facility.  Lauren will send the LOC together with the
Side Letters to Enron and Kate.

Lauren is the ALlegheny point person.  Pls direct all correspondence to her.
Locke, should signature pages be sent to you as well as to Kate?

Janice and Sara, to whose attention and which number should all
correspondence be directed?

Thank you all for your cooperation and help in moving this toward closing.

-----Original Message-----
From: kpolozie@mwe.com [mailto:kpolozie@mwe.com]
Sent: Monday, March 19, 2001 1:26 PM
To: YYaish@exchange.ml.com; Janice.R.Moore@enron.com; sshackl@enron.com;
TeiglandL@sullcrom.com; gilbergd@sullcrom.com; LMcMurray@exchange.ml.com
Cc: ppantano@mwe.com; rpaul@mwe.com; darezina@mwe.com
Subject: Transfer and Assumption Agreement.

Ladies and Gentlemen:

Attached please find the revised Transfer and Assumption Agreement.  Please
note
that in the interest of time I am sending this document to all parties
simultaneously, thus there may be additional comments.  For your convenience,
I
am attaching both a clean copy and a marked version showing changes from the
most recent draft you received.

Best regards,

Kate Polozie

Katarina B. Polozie
McDermott, Will & Emery
kpolozie@mwe.com
(202) 756-8130
(See attached file: WDC99_407041_1.DOC)

(See attached file: WDC99_406261_8.DOC)

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

This message is a PRIVATE communication.   If you are not the intended
recipient, please do not read, copy, or use it, and do not disclose it to
others.  Please notify the sender of the delivery error by replying to this
message, and then delete it from your system.  Thank you.
******************************************************************************
*******

For more information on McDERMOTT, WILL & EMERY please visit our website at:
http://www.mwe.com/

 - Transfer Agt -- YY comments 3.19.01.doc


Enron Would Accept Less Money in a Calif. Settlement (Update1)
Bloomberg, 06/06/01

Business World: California's Ship of Fools
The Wall Street Journal, 06/06/01

Commentary 'Hi, My Name Isn't Justice, Honey,' and Shame on Lockyer
Los Angeles Times, 06/06/01

California Squeaks By
The Wall Street Journal, 06/06/01

Top Bush Adviser Moves to Sell Stocks
The Washington Post, 06/06/01

What Really Counts? EPS.
Merrill Lynch Report, 06/06/01

India: MSEB unruffled amid power talk
Business Line (The Hindu), 06/06/01

OMAN LNG STRIKES DEALS WITH INT'L ENERGY COS ON SPOT SALES
Asia Pulse, 06/06/01

AES looks to recover Rs 209 cr Gridco dues
Business Standard, 06/06/01

MSEB refuses DPC power at 90% PLF
Business Standard, 06/06/01

MEXICO: Enron Corp. to sell energy in Mexico in 2002.
Reuters English News Service, 06/05/01

US Democrats Seek Hearing On Cheney Energy Task Force
Dow Jones Energy Service, 06/05/01

Enron Would Accept Less Money in a Calif. Settlement (Update1)
2001-06-06 01:57 (New York)

Enron Would Accept Less Money in a Calif. Settlement (Update1)

     (Adds spokesman's comment in fourth to sixth paragraphs.)

     Houston, June 6 (Bloomberg) -- Enron Corp. Chairman Kenneth
Lay said the world's largest energy trader would accept less than
100 percent of the money it's owed for power sold to California if
it could reach a settlement with the state.
     Lay, who spoke on PBS's ``Frontline'' television program,
which aired nationwide this evening, refused to say how much of a
``haircut'' the company would accept.
     ``I'm not going to negotiate with the governor through you,''
Lay said on the program. Enron is currently owed $400 million to
$500 million by California power purchasers, he said.
     Most of that money is owed by PG&E Corp.'s Pacific Gas &
Electric utility, which declared bankruptcy April 6, so it
wouldn't be covered in a settlement with the state, spokesman Mark
Palmer said after the broadcast, adding that there are currently
no settlement talks going on between Enron and the state.
     Palmer said a settlement to the California power crisis would
have to include issues beyond prices, such as long-term power
contracts and retail electricity choice.
     ``There would have to be a settlement of all the issues in
the market before anyone would agree to take a `haircut,''' he
said. ``For anyone to even talk settlement, we have to talk about
structural issues.''
     The ``Frontline'' broadcast also said Duke Energy Corp. has
been in secret settlement negotiations with the state for six or
seven weeks, which would require that all pending litigation
against the company be dropped. The program, a joint production of
PBS and the New York Times, said that Duke pledged political and
public support for California Governor Gray Davis as part of the
settlement.
     ``I will not do anything that is unseemly or anything that
will bleed California dry,'' Davis said, adding that he won't give
up legal avenues. He said he gave Duke ``high marks,'' though, for
proposing a settlement in the first place.
     Davis has accused California's major generators and Enron - a
state power marketer, but not a generator - of price gouging
California consumers. Duke, which produces about 5 percent of the
power used in California, recently admitted it charged $3,800 a
megawatt-hour for power sold to the state in January and February.
That's 15 times above average levels in January.
     Shares of Houston-based Enron fell 79 cents to $53.75. Shares
of Charlotte-based Duke, the top U.S. utility owner, fell $1.70 to
$42.50.

Business World: California's Ship of Fools
By Holman W. Jenkins Jr.

06/06/2001
The Wall Street Journal
A27
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Lamenting the politician's lot in "Profiles in Courage," John F. Kennedy
wrote that "In no other occupation is it expected that a man will sacrifice
honors, prestige and his chosen career on a single issue." Of course, no
politician would last long if he didn't blow with the wind nine times out of
10. But on the tenth occasion even California has the right to expect some
courage.
We don't know what happens when an advanced economy like California's suffers
day after day of blackouts. We may be about to find out. Modern office
architecture becomes uninhabitable without air-conditioning and elevators.
Old people and asthmatics may die in the heat. So may drivers at unlit
traffic crossings.
Steps could still be taken to lessen the blackouts, but voters wouldn't know
the difference, and it's so much easier to cast blame. Gov. Gray Davis prates
about a "war with Texas." And who knows what secret failures as a human being
led Bill Lockyer, the attorney general, to threaten Enron's Ken Lay with
homosexual rape in the California prison system.
California has found itself singularly lacking in heroes in its hour of
crisis. Mr. Lockyer and Mr. Davis harp on price, but the true problem is the
unavailability of power at any price to meet the demand that exists under the
current structure of retail rates.
Both must know the solution they noisily advocate, federal price controls
slapped across Western electricity markets, wouldn't bring power into
existence to close the gap. Their proposal would simply saddle the feds with
the dirty job of apportioning blackouts from California's mistakes across
half a dozen other states.
In California itself, municipal utilities in Santa Clara, Palo Alto and other
towns have already announced they won't participate in rolling blackouts. The
Los Angeles Department of Water and Power certainly isn't volunteering. Why
should voters in other states? Why not just cut the lines and let California
monopolize the darkness? A state review board in Washington has already
vetoed a proposed plant rather than suffer local pollution for power destined
for California.
Mr. Davis knows this; he knows price controls would create a new problem
without solving the shortages. Meanwhile, the specter nobody wants to talk
about is the state of California itself headed for bankruptcy if it continues
to be willing to pay any price to satisfy the demand of consumers shielded
from the true cost of power.
Mr. Davis's version of the Big Lie is that Texas is to blame. Texas companies
account for just 12% of California's supply, having bought 7,000 of the
20,000 megawatts that local utilities were forced to sell under
"deregulation." Being in the right place at the right time has always been
profitable, but any windfall has been spread widely among suppliers of gas,
pipeline capacity, storage and ancillary services. Take Enron: Its revenues
quadrupled in the past year, but so did its costs, and profits are up only
31%.
A leaked California memo names as two of the biggest "gougers" BC Hydro,
owned by Canadian taxpayers, and the U.S. Bonneville Power Administration.
Their sin was letting their reservoirs fill up overnight while meeting local
needs with spot-market power, so they could sell their own production for
higher prices to California during the day.
These are precisely efforts that might stop if price controls were imposed
across the West, making the shortages worse, probably much worse.
Northwestern smelters might be better off reclaiming the cheap hydro they've
been passing on to California -- 3,000 megawatts, enough for two million
homes. Farmers could resume irrigating. Seattle, Tacoma, Boise and other
neighbors have all done what California has failed yet to do, hiking rates to
curb demand.
Rather than emulate them, Gov. Davis's peacock of an energy czar, David
Freeman, babbles about "public power," the answer to a question nobody asked,
the solution to a nonexistent problem.
Prices of electricity and natural gas for future delivery are already falling
as investors race to build new plants and pipelines to meet the state's
future needs. Markets foresee the crisis ending without Mr. Freeman's antique
New Deal schemes. What's been missing while folks like him ride their hobby
horses, though, is the courage to take steps necessary to minimize the
suffering this summer.
One large source of untapped power is California's own small generators,
known as qualifying facilities. Their fee scale is set by the state, but
California couldn't even summon the political competence to keep them in
business, so 3,000 megawatts sit idle.
People have tried to attach all kinds of ideological baggage to the
California mess, but we wouldn't be here if water flows in the Columbia River
system weren't down 54% from normal. Last summer, California's fossil-fuel
generators increased their output by a whopping 62% to make up the shortfall,
mostly by running existing plants harder.
Yes, there have been flaky prices, partly because, mysteriously, California
continues to use a discredited computer program to book a large chunk of its
power one hour in advance. But the flaky prices also represent a system
pulling out all stops to save California from itself.
We said back in December there's only one solution: Jack up rates to stop
consumers trying to burn more power than the state can beg, borrow or steal.
The only question was when Gov. Davis would find the courage. Hard to
believe, but the price hikes his regulators approved in March are still on
the drawing board and busily being watered down.
Someone should point out to Gov. Davis that the author of "Profiles in
Courage" wasn't endorsing career suicide but suggesting that politicians must
husband their leadership for times when it really counts. Not a few people in
public life understand this. Al Gore openly yearned for the day when he could
justify the compromises and trimming he's done in his life. But Mr. Davis is
perhaps too lost in the dark to understand he is blowing the whole reason to
have a political career.
What borders on the stupefying, though, is the failure of any other
Californian of prominence to step forward and speak truth about the power
crisis. By all rights Gov. Davis should be a political leper, yet he actually
stands a microscopic chance of being re-elected because of the sheer poverty,
in a state of 34 million people, of the Republican opposition. Arnold
Schwarzenegger is looking better all the time.

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

California; Opinion Desk
Commentary 'Hi, My Name Isn't Justice, Honey,' and Shame on Lockyer
TOM G. PALMER
Tom G. Palmer is a senior fellow at the Cato Institute in Washington. E-mail:
palmert@cato.org

06/06/2001
Los Angeles Times
Home Edition
B-11
Copyright 2001 / The Times Mirror Company

Here's what California Atty. Gen. Bill Lockyer said at a press conference
about Enron Corp. Chairman Kenneth Lay: "I would love to personally escort
Lay to an 8-by-10 cell that he could share with a tattooed dude who says,
'Hi, my name is Spike, honey."'
Here's why Lockyer should be removed from his office of public trust: First,
because as the chief law enforcement officer of the largest state in the
nation, he not only has admitted that rape is a regular feature of the
state's prison system, but also that he considers rape a part of the
punishment he can inflict on others.
Second, because he has publicly stated that he would like to personally
arrange the rape of a Texas businessman who has not even been charged with
any illegal behavior.
Lockyer's remarks reveal him to be an authoritarian thug, someone wholly
unsuited to holding an office of public trust.
But his remarks do have one positive merit: They tell us what criminal
penalties really entail.
Contrary to some depictions of prisons as country clubs, they are violent and
terrible places. More and more politicians propose criminal sanctions for
more and more alleged misdeeds, and as a result ever more kinds of behavior
are sanctioned by criminal penalties, perhaps now even selling electricity.
Those found guilty of such crimes are put into cages, where they are deprived
of their liberty and dignity and, as Lockyer so clearly acknowledged, raped
and brutalized. What's worse, Lockyer has indicated that he believes that
rape is an appropriate part of the system of punishments he administers.
Should it matter that Lay is a businessman? Imagine the outcry if the head of
Enron were female. What would Lockyer's fellow Democrats have said to that?
Should it matter that Lay is chairman of an electricity generator? Does the
nature of his business justify threats to escort him to his own rape? Lockyer
told the Los Angeles Times that he had singled out Enron's chairman because
the Houston-based company is the world's largest energy trader.
So apparently singling out a man for a heinous threat is OK because he's the
chairman of the world's largest energy trading company. That's according to
the man who, as a state senator, sponsored California's 1984 hate-crimes law.
Evidently the crusader against intimidation on the basis of race, religion
and sexual orientation feels no hesitation at all about intimidating someone
and threatening him with the brutal use of physical force simply because he
heads the world's largest energy trading company.
Lockyer and Gov. Gray Davis seem to think that the best way to keep the
lights on is to threaten electricity producers with brute force, rather than
to offer to pay competitive rates in competitive markets. Are energy
producers to blame for California's energy problems? No. Bad policies,
including rigid controls on retail prices of electricity, are the cause of
the problem, not the people who generate energy. Scapegoating producers and
threatening them with violence is an old ploy of authoritarians. Californians
should not stand for it.
An Enron spokesman said that Lockyer's chilling stated desire to arrange the
rape of Lay does not merit a response. The spokesman is wrong. Lockyer's
remarks merit public disgrace and removal from office. After all, rape is not
a form of legal justice in America--is it?

GRAPHIC-DRAWING: "Is being raped part of my sentence?", Paul Conrad;

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

REVIEW & OUTLOOK (Editorial)
California Squeaks By

06/06/2001
The Wall Street Journal
A26
(Copyright (c) 2001, Dow Jones & Company, Inc.)

The California energy crisis is now more than a year old and Governor Gray
Davis has done nothing but squeak at it. At first, he attacked out-of-state
power generators for being pirates and marauders. But lately he has focused
on FERC and President Bush, demanding that the federal government place price
caps on the sale of wholesale power. He's even rustled up 10 economists --
including the dad of deregulation, Alfred Kahn -- to support him.
Well, as most everybody knows -- including the economists who have come out
in favor of them -- price caps don't work. If caps are set too low, (as
politics often dictate), existing supply will shrink and demand will grow,
making the situation worse. Even "correctly" set price caps will discourage
additional supply and do nothing to moderate demand. The usual result is an
aggravation of shortages and rationing. Indeed, the history of price caps,
particularly during the energy crisis in the early 1970s -- when oil prices
were capped and lines at gasoline stations were long -- bears this out.
The pro-price-caps argument however is a clever one. It rests on the notion
that there is no "effective competition" in the California energy market.
According to one of the 10 pro-price-cap economists, Paul Joskow at MIT, the
energy market in California is characterized by inelastic demand and very,
very tight supplies, which conspire to produce, at certain times, prices
above those that would have obtained under competitive conditions.
Mr. Joskow examined the California energy market during the summer of 2000,
looking at market fundamentals (the broad forces determining supply and
demand); he found that 25% to 30% of the wholesale prices of electricity
during June, July and August cannot be explained by market fundamentals and
should be attributed to market imperfections.
As an argument for price caps, this is hardly overwhelming. Especially since
there are several perfectly respectable and compelling reasons to look no
further than market fundamentals. Such as the fact that the price of the most
important input for almost half the electricity generated in California,
natural gas, has been rising over the past year. Such as the fact that
natural gas pipelines are filled to capacity, thus bidding up the price to
transmit. Such as the fact that the worst drought in the Northwest in 60
years has reduced the amount of hydroelectric power in the market, putting
even more demands on natural gas generation. Such as the fact that imports
into the state, which were running 20% and up to 25% during peak usage, have
declined. And the fact that the price of tradable permits for NOx emissions
-- which must be held by plants generating electricity -- has skyrocketed.
Not least the fact that demand in California during the past several years,
unfettered by rate increases, has zoomed dramatically.
At any rate, electric power is increasingly expensive all over the country;
indeed, California's neighbors, the states of Washington, Idaho, Wyoming,
Arizona, Nevada, Oregon, Utah and Montana, have had to bump up utility rates
30% to 50%. So where is the tablet of stone saying that California, with its
especially restrictive environmental regulations, should be any different?
The bad news for California is that, poor dears, it can't be different.
Market fundamentals, like supply and demand, rule. But that's also the good
news. High wholesale prices (and necessary profits) have done their job; they
have brought forth a number of suppliers, in the form of more than a dozen
plans for significant new generating plants; in fact, plans have even been
announced to build more natural gas transmission pipelines. Too, demand has
started to abate; peak demand on a monthly basis has fallen 4% to 9% from
last year, doubtless a response to a "temporary" 10% rate hike in January and
the California Public Utilities Commission's decision in March to finally
really, really raise rates by as much as 50% on average. (The details of that
plan were announced in May and rate increases will show up on this month's
bills.)
So California's blame-shifting pols can point fingers til the state freezes
over. The market is working, and imposing price caps would not only interrupt
that process, but would be unnecessary. Of course, there is a painful lag
between the market signals of high prices due to shortages and the market
remedies of increased supply and lower demand. And California will probably
feel lots of that pain this summer in the form of continued high prices and
blackouts.
But, in the long run, the market will be successful in creating new supply
and lower prices. Unfortunately California's energy glut will probably come
too late to avoid a siege of political spinning and demagoguery. Ultimately
we have to hope Californians will understand it is their politics that has
served them poorly.

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

A Section
Top Bush Adviser Moves to Sell Stocks
Mike Allen
Washington Post Staff Writer

06/06/2001
The Washington Post
FINAL
A10
Copyright 2001, The Washington Post Co. All Rights Reserved

Karl Rove, President Bush's senior adviser, acted yesterday to sell his
stocks in energy, defense and pharmaceutical companies with stakes in
administration policies.
An administration official said Rove has long planned to sell his stocks, and
made a final decision at an April 24 meeting with White House lawyers, but
has been unable to complete the process because of the complex paperwork and
legal issues.
A financial disclosure form released by the White House on Friday showed Rove
owned holdings worth more than $100,000 each in Boeing Co., one of the
nation's three largest defense contractors; Enron Corp., a Houston energy
conglomerate; General Electric Co., a supplier for nuclear and fossil fuel
power generators; and Pfizer Inc., a pharmaceutical manufacturer. A notation
dated May 18 said, "All individual stock holdings to be sold."
Rove yesterday sought a certificate of divestiture from the Office of
Government Ethics, which allows deferral of capital gains taxes on sales that
are made to avoid conflicts. The holdings would be rolled into government
securities or diversified accounts.
Bloomberg News reported Monday that Rove had not yet sought the certificate.
An administration official said yesterday that Rove had submitted a draft
request.
Democratic Senate aides said they would determine if a hearing might be
warranted, since Rove had retained his holdings throughout the
administration's deliberation on its energy policy, which Bush announced May
17.
The administration official said Rove has "intended to sell all of his stock
from the very beginning, and was told not to proceed" by the White House
counsel's office until his situation was thoroughly examined. At the April 24
meeting, lawyers outlined several options and Rove chose divestiture.
"Mr. Rove has followed the instructions of the White House counsel's office
and has avoided discussions that could specifically or materially affect his
holdings while consultations regarding his financial situation were ongoing,"
the official said.

http://www.washingtonpost.com

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

What Really Counts? EPS.
2001-06-06 07:49 (New York)

                      M E R R I L L  L Y N C H        Research Comment
  Natural Gas - Diversified                           Reference Number
30215707
  United States                                       Jun/06/2001 07:49
  Donato J. Eassey                                    (1) 713 759-2591

Reason for Report:  Take Advantage of CA-Related Market Weakness in Energy
Merchant Conglomerates

Who Let The Bears Out? CA
Every once in a while issues and allegations become larger than life. That
seems to be the case in California.

While many issues beyond CA are negatively impacting the Energy Merchant
Conglomerates (EMCs), in our opinion it is the CA issues themselves which
appear to be at the very root of the problems. These issues include the
uncertainty at the FERC, the threat of CA legislated Windfall Profit Taxes
(WPT), Congressional examination of price caps and, to a lesser extent, the
turnover of Senate control to the Democrats.

As for the allegations of market manipulation and abuse, ultimately such
charges may have to be settled in the courts. Unfortunately, the legal system
is rarely swift, and consequently our EMCs may remain under near term pressure
as media examinations and political rhetoric heat up with summer temperatures.

In short, public discussions have already taken a large toll, with Enron,
Dynegy, El Paso and Williams down a combined $36 billion in market cap value
or
21% since the beginning of the year.  Yet at worse, we assess the CA exposure
for these players to be only a bit over $1.6 billion!

Bottom line, however, is that with EPS growth rates remaining strongly intact,
it is exactly during these periods of weakness that we would be aggressively
building positions.  We think we are there.  Case in point, Table 1 below
illustrates valuations for our EMCs relative to the S&P500 over the last 10
years; the EMCs are now trading below their 10-year average to the S&P, while
we believe their growth prospects are the strongest they have ever been during
this time.

Maintain Perspective
At the risk of flogging Economics 101 once again, high prices begin as a
function of supply relative to demand.  When there are overwhelming forces at
work for a commodity with no readily available substitution, the situation can
get out of hand as is the case in California.  While demand was rapidly
increasing the past 10 years and consumer prices were either frozen or reduced
since '97 (few discuss the fact that California consumers benefited for
several
years without a rate increase) the CA environment virtually prohibited any new
supplies from being built.  At the same time, end users (including the
utilities) were forced to buy primarily on the spot market, exacerbating
market
volatility.  While hindsight is 20/20, it should be no surprise that given
zero
price feedback from consumers and a flawed bidding process, it was only a
matter of time before this quasi-regulated market became unraveled.

Laws generally do not prohibit people from making money in the U.S. in a tight
supply/high demand marketplace, particularly in volatile markets such as
commodities on the Nymex or stocks on the NYSE. This is key because anyone
willing to except trading risks and that have the financial and risk
management
wherewithal can and do participate in these markets - freely.  It should be no
different in the secondary energy commodity OTC market.  To suggest price caps
or a WPT are the answer is to suggest that we put a cap on stock prices and
place a WPT on stock trading profits if they are higher than one's liking,
despite the risks involved!

In our view many parties have participated in creating California's energy
deficiency problems.  A dysfunctional market that is inefficient due to
ignorance of market realities is hardly against the law - as painful as it
might be to correct.  Obviously, if any direct, collusive or illicit form of
market manipulation is involved that would be a different story.

And once the facts are allowed to unfold, we are likely to see just who was
responsible for the current situation - hopefully before CA takes an even
greater toll on the nation's energy infrastructure, or worse, on the national
economy.

As the lightning rod to the California Troubles - our four EMCs as a group
have
lost a combined $36 billion in market cap value or 21% since the beginning of
the year. Yet at worse, we assess the CA exposure for these players to be only
a bit over $1.6 billion in gross receivables (and likely only half this on a
net basis)!

Despite the challenges, however, it is exactly during these periods of
weakness
that we are reiterating our ratings. Our EMCs are now trading below the S&P
500's relative P/E, off from their recent high of 199% and more notably their
104% 10-yr average.

Unfortunately, with further noise and political uncertainty likely to remain
in
vogue, more collateral damage is likely.  Bottom line, however, is that EPS
growth prospects not only remain intact, they are the strongest the EMCs have
experienced in their history; ultimately, we believe this will be the last
dynamic left standing.  Those seasoned energy investors that recognize reality
over rhetoric should, in our view, realize gains for stepping up at today's
levels.

India: MSEB unruffled amid power talk

06/06/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, June 5. EVEN as officials from various financial institutions and
banks split hairs in Singapore on whether to sink or sail with the Dabhol
power project, the Maharashtra State Electricity Board (MSEB) is cool about
the entire affair.
Unlike previous instances when the odds were stacked against it, this time
MSEB knows pretty well that whatever happens, it will remain unscathed. If
someone has to take a hit, it has to be the financiers and maybe the
Governments.
At the hearing before the Maharashtra Electricity Regulatory Authority
(MERC), the Advocate-General, Mr Goolam Vahanvati, had said on behalf of the
board that MSEB was being kind towards Enron when it rescinded the contract
for "material misrepresentation". One more step, and it's fraud, he had told
MERC.
Knowing this fully well, MSEB has kept its cool throughout the altercation.
It firmly believes that if nothing else, it can pin down the company on just
this one point at any forum. Enron too has not said at any point of time that
it can actually perform as per the "cold-start graph" in the power purchase
agreement. In fact, it has said such performance - making available full
power in 180 minutes - is "not possible" by any such plant in the world.
In a way, it was MSEB's defiant posturing coupled with the Maharashtra
Government's passing the buck up that got the Central Government to act.
One thing evident throughout the crisis is that all the players are trying to
save their own skin. In spite of the developments, Enron has played its cards
close to its chest, and hinted to institutions at taking a hit on its returns
only a few days ago. Even that, Mr Wade Cline, Managing Director, Enron India
Pvt Ltd, is reported to have told Indian lenders, would hinge on substantial
give and take.
Indian lenders have a genuine case in that they are the ones without any
assurances apart from the plant itself.They cannot do much except try get the
players to somehow shake hands.
They had tried to convince the Government some time ago to get MSEB to
activate the escrow and increase the letter of credit amount. But they were
told off by MSEB which was in no mood to relent. Tomorrow, Enron will make
presentations at Singapore on what it feels can be done to move ahead.
Whatever the outcome of the meeting, MSEB is unlikely to let anything queer
its pitch.
- Dinesh Narayanan

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

OMAN LNG STRIKES DEALS WITH INT'L ENERGY COS ON SPOT SALES

06/06/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

MUSCAT, June 6 Asia Pulse - Oman LNG has signed agreements with a several
major international energy companies for future short term sales of liquefied
natural gas to the United States and Europe.
The company has also clinched a deal with Enron Corporation to sell a
shipload of LNG to the US market in August this year.
This is in addition to six LNG cargoes that the US-based energy giant will be
lifting from Oman LNG's Qalhat plant between March and December this year,
using its own vessel, the Hoegh Galleon.
The deals, according to a senior marketing official of the company, mark a
significant breakthrough in Oman LNG's efforts to consolidate its presence in
the fiercely competitive transatlantic energy market. Master Agreements,
which broadly set out terms governing transactions between two entities, have
now been signed with TotalfinaEif (France), Sempra Energy (US), and Cabot LNG
(US), said Adnan J Rajab, OmanLNG's Gas Marketing Negotiator. Similar
agreements are also being finalised with CMS Energy of the US, British
Petroleum, GAz de France and Shell North America, he added.
We are very encouraged by these agreements because Western markets have
traditionally been the stronghold of more established LNG producers. By
signing Master Agreements with most of the biggest players in the US and
European energy markets, Oman LNG stands a far better chance of exporting
some of its surplus volumes in remarks to the Observer.
Until exports to India commence early next year, Oman LNG will have some
excess capacity on its hands, which it is aggressively looking to sell in
short term and spot sales. The trasatlantic market appears to be the most
prospective at present.
Meanwhile, Enron Corporation has signed a contract to lift 135,000 tonnes of
LNG to the US market in August this year.
It is the second such spot deal signed with Enron, which lifted a similar
quantity of gas from Oman LNG's Qalhat facility in August last year, Rajab
said.
Enron's Dabhol Power project in India is also committed to buying 1.6 million
tonnes per annum (mtpa) of Omani LNG over a 20-year period. The first
shipment to Dabhol is due early next year.
According to Rajab, the successful export of spot cargoes to the US through
Coral Energy and Enron led to Master Agreements being signed with a number of
International energy firms, with discussions under way with several other
majors.
Exports to the European and American markets, Rajab explained, largely hinge
on the availability of LNG carriers, which are invariably in short supply
throughout the year. Without carriers of its own, Oman LNG has to depend on
chartered vessels.
(ONA)l 06-06 1009

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

AES looks to recover Rs 209 cr Gridco dues
Santosh Tiwary NEW DELHI

06/06/2001
Business Standard
2
Copyright (c) Business Standard

After Enron-promoted Dabhol Power Company in Maharas-htra, it is now AES'
turn to explore various options for recovering the Rs 209 crore dues from the
state-run Grid Corporation of Orissa (Gridco).
AES is the 49 per cent stake holder in Orissa Power Generation Company (OPGC)
owning two units of 210 mw each in the Ib valley complex. It supplies power
through Gridco, the transmission company.
"We are currently considering various options, keeping OPGC's best interest
in mind," a company spokesman told Business Standard.
The company gave an ultimatum to Gridco last month by not reopening one unit
for a week after the scheduled outage. AES spokesman said that after verbal
assurance by the Orissa energy minister and energy secretary on taking
concrete steps to pay the outstanding dues, the unit was restarted.
With no such steps in sight, AES is forced to explore the options available
under the power purchase agreement (PPA), he added. Incidentally, the PPA
between the two parties, also provides for arbitration in India.
AES acquired 49 per cent stake in OPGC in December 1998 by paying $145
million on the basis of secured payments from Gridco and full control of the
day-to-day management.
In the absence of timely payments from Gridco to OPGC, AES decided to curtail
generation to around 68.5 per cent annual PLF against 90 per cent as demanded
by Orissa, said the spokesman. The decision was taken to prevent further
increase in the receivables and protect cash flow, he added.
He added that linking distribution company Cesco's default to Gridco with the
whole issue was not justified. "We acquired OPGC on secured payment backed
escrow arrangement for 100 per cent of OPCG's dues. Our subsequent
acquisition of Cesco in no way dilutes Gridco's payment obligations in terms
of our PPA, escrow and other contractual arrangements," he said.

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

MSEB refuses DPC power at 90% PLF
Renni Abraham MUMBAI

06/06/2001
Business Standard
1
Copyright (c) Business Standard

The Maharashtra government will not buy power from the first phase of the
Dabhol Power Company's (DPC) project at a 90 per cent plant load factor
(PLF), a senior state government official said here today. The statement
represents a hardening of Maharashtra's position on talks with DPC and
virtually kills the latter's proposal to split tariffs for the Centre and
Maharashtra.
The Maharashtra State Electri- city Board (MSEB) is now required to buy 90
per cent of the power generated by the first phase (740 mw) of the project.
But during negotiations with the Godbole Committee, it has been demanding
that the requirement be cut to 35 per cent.
At the last Godbole Committee meeting, DPC had put forward a plan to split
tariffs for the Centre and Maharashtra, with the Centre paying Rs 3.30 per
unit of power and MSEB paying Rs 3.50. The Centre, DPC suggested, could buy
two-thirds of the power it generated, once the second phase (1,444 mw, taking
the total capacity to 2,184 mw) was completed.
Maharashtra's latest position undermines DPC's proposal since the Enron
-promoted company's tariff hinges on MSEB absorbing 90 per cent of the power
it generates in the first phase.
A senior state government official said: "The Centre has been talking a lot
about playing the role of a facilitator. What we need is a buyer for the
second phase."
Despite recent central government pronouncements, state government officials
privately argue that the Centre is not playing an active role in resolving
the problems that have plagued the DPC project. At the very first Godbole
Committee meeting he attended, the Centre's nominee, AV Gokak, adopted a
non-committal stand.
The Maharashtra government official added: "Gokak said he was merely
attending the meeting in the capacity of a messenger and would communicate to
the Centre any solution worked out by the renegotiation committee. The Union
power ministry has stated that a solution worked out by the renegotiation
committee would be acceptable to it. Unless the Centre takes an active part
and assures the offtake of the second phase, no solution can be worked out."

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

MEXICO: Enron Corp. to sell energy in Mexico in 2002.

06/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

MONTERREY, Mexico, June 5 (Reuters) - U.S. energy giant Enron Corp. said on
Tuesday its Mexican subsidiary would begin selling electrical power in Mexico
late next year, after construction of its Nuevo Leon plant is completed.
Enron Mexico President Jaime Alatorre said the unit began building the
co-generation plant in May to supply energy to supply Mexican glassmaker
Vitro SA , industrial conglomerate Grupo IMSA and No. 2 Mexican cement maker
Apasco .
He said the $200 million project would eventually generate 245 megawatts and
supply varying amounts of energy to each of the Mexican industrial giants.
"Vitro will consume 110 megawatts, IMSA 90 and Apasco the remaining 45
megawatts," Alatorre said at a forum for Mexican business executives in the
northern city of Monterrey.
According to Vitro, the new plant will provide energy to at least 12 of its
production units in Mexico and will save it some $10 million in annual energy
costs.
IMSA President Eugenio Clariond Reyes told Reuters the new plant will cut
annual energy costs at the industrial conglomerate by about 13 percent.
Alatorre said Enron is looking at other co-generation projects but would not
provide further details.
Mexican law reserves the sale and distribution of electricity to the state,
and only allows private investment in projects meant for co-generation, or
for co-generation of energy meant for personal consumption.
Alatorre said that would have to change if Mexico is to continue providing
for its energy needs into the near future.
"Congress must be made conscious of the fact that the issue of sector reform
can wait no longer," he said.

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

US Democrats Seek Hearing On Cheney Energy Task Force

06/05/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON (AP)--Democrats on a House committee urged Rep. Dan Burton,
R-Ind., to look into U.S. Vice President Dick Cheney's energy task force,
which met privately with major Republican donors in formulating the Bush
administration's energy policy.
California Rep. Henry Waxman, the ranking Democrat on the Government Reform
Committee, asked chairman Burton to conduct a congressional hearing on what
took place at the Cheney group's secret meetings and the identities of all
participants.
"The Cheney task force has conducted its meetings in private, and reportedly
has obtained input from private citizens and groups, including political
contributors," Waxman wrote Burton.
The Associated Press reported last month that GOP contributors, including
executives from power wholesaler Enron Corp. (ENE) and the Edison Electric
Institute, the utility industry lobbying group, had met with Cheney to
discuss energy policy.
Committee spokesman Mark Corallo said the Republican staff hasn't had a
chance to discuss the letter with Burton.
Democrats criticized Burton's aggressive congressional investigations of the
Clinton administration, especially the campaign fund-raising scandal
surrounding the 1996 presidential election. Waxman and other Democrats said
Burton's fund-raising probe was conducted in a highly partisan fashion that
ignored Republican fund-raising excesses.

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