Greetings All:

First, I am apologizing in advance for any typos in this email.  Schedule is
very tight, but I wanted to make sure that everyone had it first thing this
morning, with some back-up info that I've included below.

Attached is the email that was sent to Ken Lay's office yesterday evening for
delivery to Sen. Brulte.  It's of course confidential.  Few points:

I don't have Bev's email, so if you could please forward to her, that would
be appreciated.
As we discussed (Jim, Mike, Bev, Scott, Hedy) on our lengthy call on
Wednesday, I'm assuming that the plan is still to "wallpaper" Sacramento with
our proposed legislation.
This email does not contain the legislation.  Mike sent the "final" versions
of our legislation out yesterday, except for the siting piece, which I
believe Brian Cragg of Mike's office is finalizing today.
You'll note that we promise Senator Brulte in the email that we'll deliver to
his office today the proposed legislation.  Again, based on our call on
Wednesday, I'm assuming that we would simultaneously release the proposed
legislation to the rest of the world at the same time.
When we spoke on Wednesday, we decided that the Sacramento team would
determine to whom we would circulate the proposed legislation at the same
time that we deliver the Senator Brulte. I'm assuming that you folks will
handle that end of things.  Please let us know at your convenience to whom
you've decided to circulate.
This email does, however, include a "summary" of our proposed legislation.
But I'm not certain that the summary included in this email is the
appropriate language to distribute "to the world," or if we'll need instead
to tailor some new language.  I think we all agreed that we need a "one
pager" to accompany the legislative package so that we can communicate the
package effectively.
We also discussed the need to quickly develop a coalition to support our
proposals.  We didn't finalize that plan.  Perhaps the Sacramento team could
propose a plan to do that.  Perhaps we could start with our friends in the
Direct Access coalition?
We also talked about the need at this point to engage in PR and to get the PR
machinery activated, also with the goal of effectively communicating our
legislative package/message.  We're in a meeting with folks today where we
can discuss getting that side of things going and Karen Denne has contacted
Marathon and they're pondering some things that we can do in the near term.
You'll note that there's a considerable amount of information about the DWR
credit issue.  As I recollect, we discussed the issue in depth on the call.
You note that attached to the email is a "legislative fix" to AB1X that could
solve the credit issue and an attached set of "taking points" related to a
second alternative to solving the credit issue:  a PUC order clarifying that
DWR will get its money for power purchase costs.
Note also that Steve Kean reminded me that we've got to continue to push to
get the utilities out of the merchant function.  Accordingly, I've put a
brief paragraph on that issue in the note to Brulte in the last section
(legislative solution) under the topic "create a real competitive retail
market in California."  To the best of my knowledge, we don't have
legislative language on that piece yet, and it seems that we'll need to
discuss it in considerably more depth before doing so.

If you have any questions about any of the materials in the email, please
don't hesitate to contact me or Jim or Sandi to discuss.  I can be best
reached to day by pager at 888.916.7184.

Thanks to all for helping pull this together.

Best,
Jeff

----- Forwarded by Jeff Dasovich/NA/Enron on 02/16/2001 08:27 AM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	02/15/2001 06:11 PM

		 To: jdasovic@enron.com, skean@enron.com, Richard Shapiro/NA/Enron@Enron,
James D Steffes/NA/Enron@Enron
		 cc:
		 Subject:

Steve:
Here's a substantially more cleaned-version, with attachments.  There's a
hard copy on your chair.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 02/15/2001 05:57 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	02/15/2001 05:56 PM

		 To: jdasovic@enron.com
		 cc:
		 Subject:

Jim:
It was a pleasure speaking with you yesterday.  Based on our conversation,
this email includes the following:

An Enron contact to discuss developing small-scale generation on Tribal lands.

Our views on the impediments to distributed generation and suggestions on how
to remove those impediments.

A description of the credit issues that continue to impede DWR,s ability to
sign contracts with power suppliers, and options to resolve them. Two
possible options for addressing the credit issue are 1) a California PUC
order clarifying that DWR will recover its power purchase costs through
rates, and 2) an amendment to AB1X designed to accomplish the same goal.  I
have attached talking points regarding the California PUC order and proposed
amendments to AB1X.  We believe that an amendment to AB1X is the preferable
option.

Our assessment of the supply/demand picture in California.

Our suggestions for a legislative package designed to solve both the near-
and long-term electricity crisis in California.  We will deliver to your
office tomorrow detailed legislative language.  In those materials we will
also identify existing bills that we believe can easily accommodate our
proposed language.

I hope that the information is useful.  Please do not hesitate to contact me
if you would like to discuss these materials further, or if there is anything
else that I can do to assist you.

Regards,
Ken

Contact Information to Discuss Interest Expressed by Native American Tribes
in Installing Small-scale Generation on Tribal Lands

David Parquet, Vice-President
Enron North America
101 California Street, Suite 1950
San Francisco, CA 94111
Phone: 415.782.7820
Fax: 415.782.7851

2. Key Barriers to Distributed Generation

Excessive and Unnecessary Utility Stand-by Charges

Solution: The executive orders issued by the Governor on February 14th took a
step in the right direction.  Utility stand-by charges have always been
designed by the utilities to protect their monopoly position, extract
monopoly prices from customers, or both.  But there is no reason to limit the
elimination of these charges to generation facilities that are less than
1MW.  These limits will only lengthen unnecessarily the time it takes for
California to close the significant gap between supply and demand and reduce
the risk of black outs this summer.  We would propose lifting the cap by
offering amendments to SB27X, which is designed to facilitate development of
distributed generation.

Excessive delays and costs related to interconnecting facilities with
investor-owned and municipal utilities

Solution:   The Governor,s executive order regarding interconnection is a
step in the right direction*D-D-26-01 requires utilities to complete
interconnection studies within 7 days.  California should ensure that this
requirement applies to all generation facilities, including distributed
generation.  In addition, the financial conflicts the utilities face when
interconnecting generation facilities are simply too powerful to overcome
through executive orders or other regulations.  To the greatest extent
possible, California should shift control over interconnection away from the
utility and place that control with the California ISO.  This could be
accomplished through amendments to SB 27X.

Permitting and Air Quality Issues
Developers of distributed (i.e., &on-site8) generation that is 50 MWs or
greater must receive certification from the California Energy Commission and
therefore face all of the impediments to development that large-scale
generation faces.

Solution: California should ensure that the executive orders (D-22-01 thru
D-26-01) issued by the Governor to expedite plant siting and maximize plant
output apply equally to smaller scale, &distributed generation8 facilities.
In addition, distributed generation that is less than 50 MWs continues to
face local opposition.  The State should ensure that local, parochial
interests cannot block otherwise beneficial distributed generation projects.
These objectives could be accomplished through amendments to SB27X.

3. Credit Concerns Regarding Authority Granted to DWR in AB1X to Purchase
Electricity on Behalf of the Utilities

Enron responded to the RFP issued by DWR to enter into power contracts with
suppliers.
Enron is in active discussions with DWR to establish contract terms with the
goal of entering into a power purchase agreement as soon as possible.
However, ambiguities contained in AB1X have created significant credit risk
concerns that need to be resolved in order to finalize contract terms.
We understand that the lion,s share of counterparties share Enron,s credit
risk concerns.
Enron has proposed several options for resolving the credit risk issues and
is working with DWR to arrive at a solution that is mutually agreeable to
both sides and that might serve as a template for power purchase agreements
going forward.

Summary of the Source of the Credit Risk Issue

Ambiguous Ratemaking Authority
The language in AB1X is ambiguous as to whether DWR has any authority to
charge California ratepayers for the costs of purchasing power.  From our
analysis of the bill, the language in AB1X appears to leave intact the
California PUC,s exclusive jurisdiction over ratemaking in California.  As
such, suppliers have no assurance that the PUC will agree to include in rates
adequate charges to cover DWR,s costs of power purchases.

Ambiguous Regulatory Authority Regarding Contract &Prudence8
The language in AB1X leaves open the possibility that the California Public
Utilities Commission could determine that power purchases made by DWR are
&imprudent.8  On the basis of such a finding, the CPUC could then refuse to
allow DWR to collect from ratepayers the costs associated with its power
purchases.  Consequently, suppliers have no assurance that the PUC will agree
to include in rates the charges to cover the costs of power contracts that
DWR has entered into with suppliers.

Ambiguous Language Regarding the Ratemaking Mechanism that Will Be Used to
Recover DWR,s Costs of Power Purchases
In addition to the ambiguity regarding ratemaking and regulatory authority
noted above, the language in the bill is equally ambiguous with respect to
the specific ratemaking &mechanics8 that AB1X directs the PUC to employ to
permit DWR to recover its power purchase costs. Based on our analysis, it is
extremely difficult to determine how the PUC would design the rates to ensure
DWR recovers its power purchase costs.  Moreover, as currently drafted, it is
difficult to determine whether AB1X would even permit the PUC to include in
rates all of the charges necessary to fully recover DWR,s power purchase
costs.  Again, this ambiguity raises significant credit risk concerns since
suppliers have little assurance that DWR will have the ability to recover
from ratepayers the costs of purchasing power.

Options to Resolve Concerns Regarding Credit Risk

We have been working diligently with DWR officials to resolve the credit risk
issues.  We have identified three options:

Amend AB1X
The amendments, which are attached to this email, would clarify that a) the
PUC would accept as &prudent and reasonable8 all purchase costs incurred by
DWR, and b) the PUC is obligated to include in rates the charges necessary to
ensure that DWR fully recovers its costs of power purchases.  This is the
preferred option, though we understand that the there may be some political
challenges standing in the way of amending AB1X.  (See attached file
entitled, &AmendAB1X.doc8.)

Clarify the Ambiguities in AB1X through an Order Issued by the PUC, and
through Contract Language
This is the option that we are currently working with DWR officials to
implement.  However, it is more complicated and could take significantly more
time to implement than the "legislative" fix.  We have attached electronic
copies of the talking points related to the order that the California PUC
would need to issue under this option.  (See attached file entitled,
&cpuctalkingpoints.doc.8)

Make Use of Other Instruments Designed to Address Credit Risk
As indicated in our letter responding to DWR,s RFP, we are willing to accept
other forms of credit from DWR.  Those options include a letter of credit,
cash prepayment, or an acceptable form of collateral.  DWR officials have
indicated to us that DWR prefers to pursue the second options. That is, DWR
prefers to clarify the ambiguities in AB1X through a PUC order and through
contract amendments.

4. California,s Supply-demand Picture Heading into Summer 2001

Both the California Energy Commission and Cambridge Energy Research
Associates (CERA), a private sector energy think tank, have issued reports
showing that California faces a severe supply-demand imbalance.  They differ
only on how much and how soon additional supply will be made available.  All
credible sources agree that supply will be very tight throughout the Summer
of 2001 and that unless a solution is found immediately, blackouts are
likely.

CEC and CERA both forecast that California will be short of supply this
summer by approximately 5,000 MW.   These numbers are in line with our
estimates.  California,s supply base currently has a 6% capacity margin, well
below the average 15-20%, which is recommended for reliable system operation
in the West.  Since the West relies more heavily upon hydroelectric power
than other regions, reserves are particularly important, owing to the
unpredictability of the weather and the dry year the West has experienced to
date. In the event of a low rain and snow period, the system must possess the
flexibility to respond to the reduced availability of power supply.
California,s very low reserve margin makes it especially susceptible to this
requirement.

Other reasons for reduced supply for the Summer of 2001 include the early
draw-down of reservoirs in the continual effort to manage California's severe
supply-demand gap; emissions restrictions on existing plants; and a reduced
number of customers who can be curtailed under their contracts with the
utilities.  Cambridge Energy Research Associates asserts that at the current
pace of siting, permitting and construction, adequate supplies will not be
added to correct the market imbalance until 2003 at the earliest.

CERA predicts that California is likely to face approximately 20 hours of
rolling black outs this summer.  The CEC paints a considerably more
optimistic scenario, betting that California will bring an additional 5,000
MWs on line to meet peaking summer demand.  It is our view that California
should view the CEC's "rosy scenario" with considerable skepticism.

5. Suggested Package of Legislative Proposals Designed to Solve California,s
Electricity Crisis

This email offers an overview of our proposed legislative solution.  We will
deliver to your office tomorrow specific legislative language and existing
bills that we believe can accommodate our proposals.

As we have suggested throughout the crisis, any solution to California's
crisis must focus on four issues:

Increase supply
Decrease demand
Establish a truly competitive retail electricity market
Return California,s Investor-owned utilities to solvency

Increase supply--Legislative vehicle: SB28X (Sher)
To site and construct a power plant in Texas takes approximately 2 years.
Enron and others have completed the entire process in other states in less
than a year.  In California, it takes about six years, or longer.

The Governor,s executive orders and Senator Sher,s siting reform legislation
are steps in the right direction.  Our suggested amendments can improve those
efforts by further addressing the difficulties that project developers face
in securing air emission reduction credits to meet the air permit
requirements included in the CEC's certification requirements.  Enron,s
proposal seeks to streamline the process for 1) obtaining credits and 2)
transfering credits between air districts.  In addition, it creates an
innovative emissions reduction bank to allow project sponsors to fund
emissions in advance of obtaining certification, and permits the affected air
districts to use those funds to finance projects that will produce the
required reductions in pollution emissions.

Decrease demand*Legislative Vehicle:   AB31X (Wright)
Because of the delay in getting a solution in place in California, closing
the supply-demand gap through energy conservation and efficiency offers the
best chance of avoiding blackouts this summer.  This can be accomplished most
effectively and quickly in two ways:

Buy-down demand
California is tapping into an enormous amount of money from the General Fund
to finance DWR,s power purchases.  California could likely reduce demand more
economically by running an auction to determine the payments businesses would
be willing to receive to reduce their demand for a sustained period (e.g.,
through the summer months).  DWR could easily run an on-line auction to
determine the price it could pay for these demand reductions.  To
participate, businesses would be required to have the metering equipment
necessary to monitor and verify that they are actually achieving the
reductions.  Enron has developed an on-line auction software package, &Deal
Bench,8 that it would be willing to contribute to the effort.

Use Price Signals to Incent Voluntary Curtailment
To be successful, customers need access to the following key elements:

An internet based hour-ahead price posting system to track the market price
for hour-ahead power in real time.
Real-time metering systems for baseline demand and voluntarily curtailment
verification.
Settlement process that allows for market clearing prices of energy to be
paid for load reduction (&Negawatts8).

The potential benefits of an effective demand response program would include:

&creation8 of additional summer peaking capacity in California, particularly
in the short term, without requiring construction of additional generation
resources.
reduction of  peak or super-peak load on the over-stressed California
electric system, thus potentially reducing the overall cost of electricity in
the state.
fostering of demand elasticity without subjecting customers to the full risk
of hourly market price volatility by passing market price signals to
customers and allowing them to voluntarily shed load and be compensated for
responding.

We estimate that we could generate a summer 2001 on-peak demand response in
excess of 400 MW during certain high cost hours, and a demand response for
summer 2002 on-peak hours that could exceed 1000 MW.  We further estimate
that the market response to this program from all ESPs could be 2 to 3 times
that amount.  We recommend that the State of California provide rebates
directly to customers to fund the installation of advanced metering and
control systems that would support load curtailment implementation.

Establish a truly competitive retail electricity market*Legislative vehicle:
SB27X
The only customers who were protected from price volatility in San Diego were
customers who chose Direct Access and signed fixed price deals with energy
service providers.  Ironically, AB1X takes that important option away from
customers and businesses.  It is critical that AB1X be amended to remove the
prohibition against Direct Access.

Enron's legislative proposal would give customers freedom to enter into a
direct access transaction, while simultaneously addressing the Department of
Water Resources' concerns about stranded power costs that might result from
customer migration.

In addition, California will only achieve a competitive retail market when
the utility is removed completely from the procurement function.  Procurement
is not a utility core competency, as evidenced by the dire financial
condition in which the utilities now find themselves.  California should
therefore begin immediately to phase the utility out of the procurement
function entirely, with the goal of having all customers served by a
non-utility provider within 36 months.  To execute the transition, California
should hold a series of competitive solicitations over the 36-month period in
which competing service providers would bid for the right to serve segments
of utility load.

Return California,s Investor-owned utilities to solvency*Legislative vehicle:
AB18X
Utility bankruptcy will not increase supply and it will not decrease demand.
In short, bankruptcy does nothing to solve California,s supply-demand
imbalance.  In addition, bankruptcy increases the likelihood that consumers
and businesses will bear the significant financial risks of having California
State government assume the role of &electricity buyer8 for an extended
period of time.  Finally, bankruptcy will undermine both investor confidence
in California's energy markets and the private sector's willingness to
participate in that market.

California can return the utilities to financial solvency by implementing a
series of staged rate increases.  California should design those rate
increases with the dual goal of returning the utilities to solvency without
&shocking8 the economy or household budgets For example, California could
amortize the recovery of the utilities, past debt over a 5-10 year period.
In addition, the magnitude of the rate increase can be reduced in two ways:
First, the utilities could absorb some portion of their existing debt in
recognition of the risk they accepted when they agreed to the structure of AB
1890.  Second, California can &net8 the revenues the utilities have received
from selling electricity into the Power Exchange against the debts they have
accrued due to the retail price cap.


I need a volunteer.  The "Vol" will be responsible for pricing all of The New
Power deals in the market area.   99% of this activity takes place on CGAS.

Who wants it?  Certain people have expressed an interest in learning  more
about pricing, Tricia Spence, Joe Casas, and Beverly  Beaty.

I estimate it will take about 15 minites a day during the month, and about
4-6 hours during bidweek.  I also believe this deal will go away effective
4/1/2001.

Pros
Will learn the concept of a physical bookout - will become a Sitara pricing
guru like myself.
Will learn a great deal about transport pricing.
May lead into executing capacity on CGLK and CGAS - I will not turn this over
until I am satisfied with the Vol's performance on pricing.
Can easily be done after the work day crunch (this may be a pro or a con)
Will learn more about the pricing curves and how physical deals impact the
desk P&L.

Cons
Somewhat tedious - not as bad as it used to be.
May have to anwser Dick Jenkins questions.
I will have to assign this to Scott or Vickie if I don't get a volunteer.
I will do the training - possibly in the evening or on the weekend, AND I'm
very detail oriented.
I will provide feedback on this persons progress and I take this part of the
job very serious.


Please plan to attend a meeting on Tuesday, November 7 from 3:00 - 4:30pm in
EB4194.  Jim and Sean want to touch base with you on the TW throughput
analysis and ask you a few additional questions as they prepare to meet with
you on November 21 with final results.  Thanks, Kim.


Mont, thanks for the status report.  I will stand by.  JIm

"Hoyt, Mont" <hoytm@HughesLuce.com> on 12/12/2000 11:37:46 AM
To: "James V. Derrick (E-mail)" <james.derrick@enron.com>
cc:

Subject: Your Calls on My Behalf

Jim,

This is a note to let you know what happened as per your calls on my behalf.

The short answer is not much.

I had lunch with John Keffer and Randy Coles of King & Spalding.  We had a
cordial conversation, but I concluded and stated that the firm was well
covered regarding the skills that I might offer.

John Klauberg and I had a most enjoyable breakfast.  He seemed interested.
However, I haven't heard any thing.

Pat Oxford didn't return my call. I spoke with Lynn Coleman, but didn't hear
any thing back.

Vicky Price and I have exchanged calls, but haven't had a chance to speak.

On another fronts, I was contacted by Strasburger regarding their Mexico and
other Latin work.  They claim to have done a little work for Enron.  Also, I
am still in discussions with Shook, Hardy & Bacon, the Kansas City firm with
about 40 lawyers here in Houston.

Before anything get finalized, I would like to run it by you just to get an
independent reaction.

Thanks for your support and help.

Mont


Everything is usually dated as of the last business day.  We definitely publish and export as of the last business day, and usually, we just do a file save as of the dpr as of the last day of the month.  All clear?!

 -----Original Message-----
From: 	White, Stacey W.
Sent:	Friday, October  19, 2001 4:20 PM
To:	Evans, Casey
Cc:	Postlethwaite, John
Subject:	FW: Power Month End Procedures

Casey,

Can you remind me of all this?

Thanks,
Stacey

John,

Good questions, when I figure it out I will add to the Month End Procedures.

Stacey

 -----Original Message-----
From: 	Postlethwaite, John
Sent:	Friday, October 19, 2001 3:51 PM
To:	White, Stacey W.
Subject:	RE: Power Month End Procedures

Just as confirmation, is the last pwrdpr for the month dated as the last business day or the day of the calculation? Also, do we export for the last business day or the effective date?

John

 -----Original Message-----
From: 	White, Stacey W.
Sent:	Friday, October 19, 2001 12:05 PM
To:	Reeves, Kathy; Dusek, Ryan; Loibl, Kori; McLaughlin Jr., Errol; Casimir, Reno; Kelly, William; Keiser, Kam; Carter, Tim; Chapman, Tom; Chen, Hai; Dahlke, Andrea; Estrada, Israel; Evans, Casey; Franklin, Warrick; Lewis,  Jon Paul; Mattox, Michael; Vinson, Donald Wayne; Chang, Fran; Dunton, Heather; Law, Samantha; Postlethwaite, John; Warner, Nicholas
Cc:	Lee, Norman; Yang, Zhiyun; Glover, Sheila; Gossett, Jeffrey C.; Hedstrom, Peggy
Subject:	Power Month End Procedures

In order to have consistency among all power calculations, please follow the procedures outlined below.  Please feel free to forward this e-mail to anyone I may have missed.

Power Month End Calculation Procedures

?	At each month end the officialized power calculations are dated effective the last day of the month, even when that day is a weekend.
?	Power curves are populated as of the business day the calculation is performed and the effective date of the calculation.  For example, curves were produced for both Friday, September 28, 2001 (the day the calculation was performed) and Sunday, September 30, 2001 (the effective date of the calculation).
?	RisktRAC IT rolls the results of our calculation back to the last business day in order for the information to map to the business day's date.

This procedure is followed because power trading is on a daily liquidation timetable.  The calculation engine is instructed to liquidate based on the effective dates of the calculation.

Below is an example of the PortCalc screen as set up for a calculation at month end where the month end is on a weekend.
	Choose Non-exact Libor Based Curve so that the calculation engine will pick up the last business day's interest rate curve.

	Choose the Valuation Date as the last day of the month.

Choose the Prior Val Date as the last time you ran a calculation (normal procedures).

In addition, if you are the owner of the power curves, you must contact PortCalc IT to copy the curves as of the last business day over to a file dated the last day of the month.

 << OLE Object: Paintbrush Picture >>


Go to the first website shown below (http://www.enerfax.com).  Scroll down once you get to this website and you will see an article about fuel cells.

---------------------- Forwarded by Chris Germany/HOU/ECT on 05/09/2001 08:00 AM ---------------------------

"Enerfax Energy" <enerfax1@bellsouth.net> on 05/09/2001 06:32:20 AM
To:	<e@enerfax.com>
cc:
Subject:	Gas Futures Up

Enerfax Daily
NORTH AMERICA'S FREE POWER AND GAS INFORMATION SOURCE
Wednesday, May 9, 2001 No. 736
Visit our website at: http://www.enerfax.com,
if you would like to receive our daily free email write
Enerfax-subscribe@egroups.com.

For Oil Prices & News write enerfaxgold-subscribe@egroups.com
or go to http://www.enerfaxgold.com

Please view in a fixed-width font such as Courier.

GAS FUTURES
Henry Hub
12 Month Strip  4.5322  +0.0236
18 Month Strip  4.4734  +0.0115
| Month | High  |  Low  | Close | Change |
| JUN   | 4.320 | 4.200 | 4.279 | +0.040 |
| JUL   | 4.380 | 4.270 | 4.353 | +0.039 |
| AUG   | 4.457 | 4.360 | 4.425 | +0.035 |
| SEP   | 4.487 | 4.390 | 4.455 | +0.030 |
| OCT   | 4.527 | 4.440 | 4.493 | +0.028 |
| NOV   | 4.710 | 4.625 | 4.673 | +0.023 |
| DEC   | 4.885 | 4.800 | 4.853 | +0.018 |
| JAN   | 4.960 | 4.860 | 4.923 | +0.018 |
| FEB   | 4.820 | 4.820 | 4.803 | +0.018 |
| MAR   | 4.640 | 4.570 | 4.613 | +0.018 |
| APR   | 4.320 | 4.250 | 4.293 | +0.013 |
| MAY   | 4.260 | 4.190 | 4.223 | +0.003 |

PHYSICAL GAS PRICES
| Gulf/Eastern Region              |        |
| Agua Dulce                       |  4.13  |
| ANR SE                           |  4.13  |
| Carthage TG                      |  4.16  |
| Chicago Citygate                 |  4.36  |
| Columbia Gulf Onshore            |  4.17  |
| Dominion TTT South(CNG S. Point) |  4.45  |
| Henry Hub                        |  4.21  |
| Houston Ship Channel             |  4.26  |
| Katy Hub                         |  4.22  |
| NGPL - Midcontinent              |  4.16  |
| NGPL STX                         |  4.11  |
| NGPL TX/OK                       |  4.17  |
| Niagara                          |  4.48  |
| Sonat Tier 1                     |  4.17  |
| TCO IPP Pool                     |  4.44  |
| Tetco ELa                        |  4.16  |
| Tetco M-3                        |  4.57  |
| Tetco STX                        |  4.10  |
| TGP Zone 0                       |  4.11  |
| TGP Zone 1                       |  4.19  |
| TGT Zone SL                      |  4.18  |
| New York Citygate                |  4.58  |
| Transco Station 65               |  4.23  |
| Transco Zone 6 (NY)              |  4.58  |
| Trunk ELa                        |  4.05  |
| Western Region                   |        |
| California Border                | 12.60  |
| El Paso Permian                  |  4.12  |
| El Paso San Juan                 |  3.76  |
| Waha Hub                         |  4.16  |
| Canadian/Rockies Region          |        |
| Nova/Aeco (in C$/GJ)             |  5.76  |
| Dawn Hub/Union                   |  4.48  |
| Northwest Stanfield              |  4.28  |
| Wyoming Pool                     |  3.76  |
| Opal                             |  3.76  |
| PGT-Malin                        |  5.01  |
| Sumas                            |  4.22  |

POWER FUTURES
| Month |   COB   |  Change  |    PV    | Change  |
| JUN   | 350.00  |  +0.00   |  365.00  | +10.00  |
| JUL   | 420.00  |  +45.00  |  430.00  | +10.00  |
| AUG   | 515.00  |  -10.00  |  535.00  |  -5.00  |
| SEP   | 305.00  | -120.00  |  295.00  | +10.00  |
| OCT   | 325.00  |  +0.00   |  190.00  |  +0.00  |
| NOV   | 285.00  |  +0.00   |  135.00  |  +0.00  |
| DEC   | 315.00  |  +0.00   |  140.00  |  +0.00  |
| JAN   | 255.00  |  +0.00   |  130.00  |  +0.00  |
| FEB   | 250.00  |  +0.00   |  120.00  |  +0.00  |
| MAR   | 190.00  |  +0.00   |  110.00  |  +0.00  |
| APR   | 117.00  |  +0.00   |  114.00  |  +0.00  |
| MAY   | 117.00  |  +0.00   |  114.00  |  +0.00  |
| Month | Entergy |  Change  | Cinergy  | Change  |
| JUN   |  71.25  |  +4.25   |  62.75   |  -3.50  |
| JUL   | 110.00  |  +6.00   |  97.50   |  -5.00  |
| AUG   | 110.00  |  +6.00   |  97.50   |  -5.00  |
| SEP   |  45.50  |  +1.50   |  38.75   |  -1.75  |
| OCT   |  40.25  |  +0.75   |  38.25   |  -1.25  |
| NOV   |  40.25  |  +0.75   |  38.25   |  -1.25  |
| DEC   |  40.25  |  +0.75   |  38.25   |  -1.25  |
| JAN   |  43.75  |  +0.75   |  42.50   |  -1.00  |
| FEB   |  43.75  |  +0.75   |  42.50   |  -1.00  |
| MAR   |  38.00  |  +0.25   |  36.00   |  -1.00  |
| APR   |  38.00  |  +0.25   |  36.00   |  -1.00  |
| MAY   |  45.00  |  +0.50   |  41.75   |  -0.25  |

POWER FUTURES
| Month |   PJM   | Change |
| JUN   |  65.50  | +3.50  |
| JUL   | 101.50  | +4.50  |
| AUG   | 101.50  | +4.50  |
| SEP   |  40.25  | -2.50  |
| OCT   |  39.00  | +0.25  |
| NOV   |  39.00  | +0.25  |
| DEC   |  39.00  | +0.25  |
| JAN   |  43.00  | -1.50  |
| FEB   |  43.00  | -1.50  |
| MAR   |  37.00  | -0.75  |
| APR   |  37.00  | -0.75  |
| MAY   |  42.25  | +1.50  |

NATURAL GAS OPTIONS
|       | Closing | Days | Implied ATM |
| Month |  Price  | Left | Volatility  |
| JUN   |  4.279  |  18  |   53.83%    |
| JUL   |  4.353  |  50  |   54.67%    |
| AUG   |  4.425  |  80  |   54.45%    |
| SEP   |  4.455  | 113  |   54.21%    |
| OCT   |  4.493  | 141  |   55.41%    |
| NOV   |  4.673  | 172  |   55.52%    |
| DEC   |  4.853  | 204  |   55.01%    |

PHYSICAL POWER PRICES
|            |  High   |   Low   | Average |
|            |  $/MWh  |  $/MWh  |  $/MWh  |
| Cinergy    |  30.00  |  25.75  |  27.50  |
| ECAR       |  32.15  |  26.50  |  28.25  |
| ERCOT      |  43.50  |  42.50  |  43.00  |
| Entergy    |  39.00  |  34.00  |  36.35  |
| TVA        |  27.25  |  27.00  |  27.15  |
| ComEd      |  28.50  |  27.00  |  27.40  |
| PJM West   |  36.00  |  32.75  |  33.55  |
| Main       |  28.00  |  27.25  |  27.65  |
| MAPP       |  34.00  |  28.50  |  32.00  |
| Palo Verde | 370.00  | 265.00  | 299.95  |
| Mid C      | 360.00  | 285.00  | 327.95  |
| COB        | 360.00  | 360.00  | 360.00  |
| 4 Corners  | 330.00  | 300.00  | 315.00  |
| Mead       | 330.00  | 315.00  | 322.50  |
| NP 15      | 312.00  | 310.00  | 311.00  |
| SP 15      | 270.00  | 270.00  | 270.00  |
________________________________________________

For a Free White Paper Report from FAME:

Forward Curves Managing Price Risk

Go to http://www.fame-energy.com/fcreg.htm
_________________________________________________

Today's Power Bulletins
 * California Says BC Hydro Withholds Power on Credit Concerns
 * California Senator Feinstein Praises Williams Support of Interim Power
Price Caps
 * FPL Group Capital Sells $500 Million 6-Year Notes
 * California Power Prices Soar a Day After Rolling Blackouts
 * AES Suspends $2.5 Billion in Brazilian Investments
 * Enron Bidding on UK Power Plants to Increase Profit and Reduce Risk
 * Lenders to Enron's Troubled Dabhol Power Project in India May Cut
Interest Rate on Almost $2 Billion in Loans to Prevent Default
 * Enron Moves Executives Families Out of India
 * India's Maharashtra State Electricity Board May Fine Dabhol $158 Million
for Allegedly Failing to Generate Power to Full Capacity within 3 Hours of
Starting Plant After 12-Hour Break
 * New World Power Terminates Discussions to Acquire Block Island Power
Company, a Regulated Rhode Island Utility
 * American Electric Power Supplements Investment in Altra Energy
Technologies
 * Niagara Mohawk Files Proposed Settlement on Sale of Nine Mile Point
Nuclear Stations
 * Fitch Encouraged By Nuclear Regulatory Commission's Recent Actions

More stories with bulletins at http://www.enerfactsdaily.com
____________________________________________________

GET REAL about energy risk management with KWI

In today's fast moving energy markets you need to be able to manage risk in
real time.

That means knowing before you hit a risk problem, not afterwards when it may
be too late to prevent big losses spreading right through your enterprise.

With kW3000(tm), our multi-commodity, integrated front to back office
software, you can monitor your Profit At Risk(tm), counterparty risk and
mark-to-market all in real time.

Keep alert to risk. Do it in real time. Call KWI - http://www.kwi.com

Americas: +1-281-681-3301 / Europe: +44 (0) 20-7386-2700 / Asia Pacific:
+61(0) 2-9976-6111
________________________________________________

Today's Gas Bulletins
 * Canadian Natural Resources 1st Quarter Earnings Up 86% on Higher Sales
and Prices
 * Anderson Exploration 1st Quarter Profit Jumps 350%, Beating Expectations
 * National Fuel Gas Expects Acquisition of Player Petroleum to Raise 2002
Earnings Past Analysts' Current Expectations
 * Statoil Says EU Rules May Reduce European Natural Gas Supplies
 * EU Sues French Government to Force Opening of Natural Gas Market
 * Canadian Rigs Drilling Up 7 in Past Week
 * Soaring Natural Gas Prices Help BP to 7th Consecutive Record Quarterly
Profit; Up 52% from a Year Ago
 * Ultramar Raised to Strong Buy on Valero Bid
 * FERC Approves El Paso Plan to Convert 785 Miles of Existing Crude Oil
Pipeline to Transport 230 MMcf per Day of Natural Gas from Texas to
California Border

More stories with bulletins at http://www.enerfactsdaily.com
__________________________________________________

North American Gas Storage Conference
Storage 2001 - 2002:
Source of Stability or Chaos?
June 22, Houston

Find the answers at Ziff Energy's natural gas storage conference.  A
blockbuster roster of industry leaders from the utility, trading, pipeline
and storage sectors in each of the North American storage regions will
present timely, relevant information you can use. This conference will
assist you in making critical decisions about your natural gas storage
strategy for peaking and the remaining seasonal base fill. The game has
changed - storage strategy has been kicked up a notch from buying for
seasonal fill to real-time risk management.

Session 1 Supply Shortage or Storage Inefficiencies: Last Winter's Saga
El Paso Corporation - Byron Wright, VP
Energy Information Administration, DOE - Jim Thompson, Industry Analyst
Keyspan Energy - David Manning, Senior VP, Corporation Affairs
Axia Energy - David Modesett, VP

Session 2 The Changing Storage Paradigm:
Dynamic Storage Service vs Seasonal Fill
AEC Storage & Hub Services Inc. - Rick Daniel, President
Williams Energy Marketing & Trading - Blake Herndon, Director, Risk
Management
NiSource Inc. - T.J. Aruffo, VP Energy Supply Services
Enron North America - Paul Bieniawski, Director
Duke Energy Gas Transmission - David Nightingale, VP MHP

Session 3 Pricing it Right and Reducing Risk:
Can We Expect Stability or Chaos in Winter 2001 - 2001?
Aquila Energy - Mark Cook, VP The Exchange Center Conoco Gas and Power
Marketing - Brad King, VP Storage
Sempra Energy Trading - Dan Guertin, Meteorologist

For more information or to register visit
http://www.ziffenergyconferences.com, call 1-800-853-6252,
or email us at gasconference@ziffenergy.com
________________________________________________

Natural Gas Futures End Higher

    Natural gas futures on the NYMEX closed higher yesterday as traders
sought to cover their short positions due to a feeling that the market was
oversold following the steep decline of the last several days. The June
contract climbed
$0.04 to $4.279 per MMBtu. June rose $0.039 to $4.353 per MMBtu. The market
was basically just marking time until the AGA releases the latest storage
injection figures this afternoon. The AGA is expected to announce an
addition to storage of about 100 Bcf. A somewhat lower injection could spark
a rally because the market has already discounted a triple digit build.
However, an injection of over 115 Bcf could send the market to $4.00 in a
hurry. A year ago, stocks for the same week rose 58 Bcf, and the five-year
average injection is 61 Bcf. Since the AGA began reporting storage data, the
highest ever recorded was 78 Bcf in 1998. If current weather models hold up,
the Midwest and Texas will escape much of the summer's hottest temperatures,
and right now, temperatures are mild across most of the nation. Look for
technical support at the $4.20 level, and resistance is expected at $4.40.
Natural gas for next day delivery across the US and Canada generally slipped
$0.10  $0.15 per MMBtu yesterday, except in the west where most spot prices
rose due to hot weather. Natural for next day delivery at the Henry hub
dropped $0.12 to $4.21 per MMBtu.
________________________________________________

25TH Annual CIS Conference
May 15-18, 2001
Albuquerque, NM

The CIS Conference provides utility management personnel unequaled insight
and current information on customer relationship management (CRM),
e-commerce, technologies and marketing. Fifty-four workshops conducted by
utility industry representatives will focus on issues facing the industry
with over 125 companies exhibiting the latest technologies and services.
Former President George Bush is this year's honored keynote speaker.

Plan now to attend the CIS Conference, May 15 to May 18, in Albuquerque, New
Mexico. To learn more about the Conference and register on-line, please
visit our website at http://www.cisconference.org
_________________________________________________

Natural Gas NYMEX Volume
01JUN   31,687
01JLY    8,252
01AUG    3,731
01SEP    2,665
01OCT    2,878
01NOV    1,411
01DEC    1,912
02JAN    2,614
02FEB    2,190
02MAR    1,617
02APR    2,027
02MAY      998
02JUN       73
02JLY      175
02AUG      128
02SEP       45
02OCT      255
02NOV      176
02DEC      115
03JAN      870
03FEB       87
03MAR       86
03APR       26
03MAY       23
_______________________________________________

ENERGY.
@ENERGY, FEA's Complete Suite of Energy Products,
BUILT FOR THE FUTURE.

*Manage all your energy risks.
*Build and Price deals.
*Value physical assets (generation, storage, etc.)
*Report and reduce your energy risks

FEA
FINANCIAL ENGINEERING ASSOCIATES
http://www.fea.com
_________________________________________________

Fuel Cells 2000 Unveils New Career Center

     Fuel Cells 2000 has launched an online resource center for individuals
interested in pursuing a professional career in the fuel cell industry.  The
resource was created in response to the hundreds of emails and letters
inquiring about employment opportunities in the growing fuel cell job
market. The Fuel Cell Career Center
(www.fuelcells.org/careercenter/fccenterhome.html) provides information in
three separate areas of activity - Education, Employment Opportunities, and
Professional Development - to service every stage of the job search, from
laying the groundwork with a fuel cell-focused degree to training and
workshops at the professional level. * The Educational Activities section
includes background information for students interested in pursuing an
undergraduate or graduate degree involving fuel cell technologies,
internship opportunities and information on curriculum materials and
educational kits for teachers. * For job seekers, the Employment
Opportunities section of the Career center has listings and links to
websites offering jobs within the fuel cell industry, company profiles to
learn more about individual fuel cell companies and their activities, and
will soon have job posting boards for companies to display employment
listings. * For Professional Activities, Fuel Cells 2000 has compiled a
listing of workshops and seminars to provide opportunities for information
exchange and networking in the fuel cell industry as well as links to
Professional Associations related to engineering, fuel cells and renewable
energy.
__________________________________________________

"New Horizons Solutions for the 21st Century"

An Energy Efficiency Workshop and Exposition
Kansas City, Missouri
June 3 - June 6, 2001

For more information go to http://www.energy2001.eee.doe.gov
_________________________________________________

TransCanada to Sell Natural Gas Marketing Unit

    TransCanada PipeLines plans to sell its money losing natural gas
marketing unit to concentrate on more profitable power generating plants and
pipelines. It expects to begin the sale process within the next couple of
months. The natural gas marketing unit had a C$6 million loss in the first
quarter, compared with a C$10 million profit a year ago. Last year,
TransCanada shed C$3.4 billion in unprofitable businesses.
_________________________________________________

SUNGARD

Solutions for Success in Energy Trading

Epsilon and Panorama Energy
Risk and complexity are inevitable components of every trading transaction
within today's volatile energy market.  Having the right tools to manage and
control those risks has become a determining success factor.  SunGard
provides those tools with Epsilon and Panorama Energy - comprehensive
solutions designed to create measurable competitive advantages for energy
trading organizations and utility companies worldwide.

To receive more information or a free demonstration, we invite you to
contact us at 713-266-7771 or visit our web site at
http://risk.sungard.com/energy.
________________________________________________

Weather

    NOAA says last week's total of 26 heating degrees days was 22 less than
the previous week, 26 below normal and 12 below the same week last year. It
also reported a total of 24 cooling degree days last week, 12 more than the
previous week, 12 above normal and seven above the same week last year. The
latest NWS 6 to 10-day forecast calls for above-normal temperatures for most
of the West and Southeast, with below normal readings expected in the
Northeast. Seasonal temperatures were predicted for the Mid-Atlantic, upper
Midwest and parts of Texas, Florida and the Northwest.
________________________________________________

Upcoming Energy Seminars

Power Techniques for Power Purchasing
Baltimore May 10-11, Kansas City Oct 4-5, Las Vegas Nov 29-30

Gas Contracts A - Z 101 & 202
Houston - Fall(see web page for update)

Natural Gas 101
Dallas June 4-5, Houston July 17-18, Philadelphia Aug 9-10,
Houston Sept 13-14, Atlanta Oct 11-12, Houston Nov 27-28,
Oklahoma City Dec 6-7

FASB 133: Accounting for Derivatives
Houston June 15

Basis Trading - Natural Gas
Houston June 13-14, Philadelphia July 12-13,
Houston Aug 16-17, Toronto Sept 20-21, Houston Oct 16-17,
Atlanta Nov 8-9, Houston Dec 13-14

Petroleum Products Hedging
Houston June 26-27, Houston Sept 27-28, Houston Nov 27-28,

Gas Processing Contracts
Oklahoma City Sept 11-12, Houston Nov 13-14

Electricity 101
Houston Jun 13-14, Houston Sept 5-6, Washington DC Oct 23-24, Houston Dec
5-6

Electricity 202
Houston May 8-9, Houston Nov 6-7

Energy Seminars, Inc
Phone 281-362-7979
See http://www.energyseminars.com for more details.
________________________________________________

Enron's Lay Calls for Open Access to Transmission Grid

    Ken Lay, chairman of Enron, says that generators should have easier
access to the power grid. Lay spoke after receiving the US Energy
Association's 2001 US Energy Award, saying that today we don't have open
access to the transmission grid, and we could get more power into the West
if we had open access. He says the FERC should open up the power grid
throughout the nation so generators no longer have to pay a series of
separate fees to move electricity from one region to another. He also says
FERC has the authority to open up the power grid in the same way that
natural gas pipeline transmissions work. It's clear we've under-invested in
energy infrastructure in the last 10 to 15 years, and it's going to take a
few years to correct that.
________________________________________________

And now there's FASB 133.  So history will affect reported earnings, because
hedge efficiencies and derivative valuations will hit the bottom line.

At FAME, we deliver quality historical information and analysis. For your
FREE copy of the recent report, Protecting Your Earnings: Managing the FASB
133 Challenge, visit www.fame-energy.com
_______________________________________________

Kinder Morgan and Calpine Offer 2 Open Seasons
for Sonoran Pipeline

    Kinder Morgan Energy Partners and Calpine have announced that two open
seasons have begun and will continue through June 1st on the recently
announced Sonoran Pipeline.  A binding open season is being held on Phase
One of Sonoran - which would run from the San Juan Basin in New Mexico to
the California border - to give shippers the opportunity to commit to firm
capacity on the pipeline.  A non-binding open season is being held
simultaneously on Phase Two of the project - which would extend the pipeline
from the California border to the San Francisco Bay area - to give potential
shippers the opportunity to express their interest in obtaining firm
capacity to California delivery points.  Sonoran has received a binding
commitment from Calpine Energy Services for 400,000 Dth per day on Phase One
and a non-binding commitment for 500,000 Dth per day for Phase Two. The
proposed pipeline will be a 1,030-mile, high-pressure interstate natural gas
pipeline from the San Juan Basin in northern New Mexico to markets in
California and is projected to be in-service date by the summer of 2003.
_______________________________________________

Progas Storage Services, Inc

was recently organized to offer specialized natural gas storage services to
marketers and end users servicing the upper Midwest and Northeast market
regions along the major transmission systems in Indiana, Illinois, Kentucky,
and Michigan. PGSMI has 10 bcf of potential working capacity which will
offer service along TXG, ANR, Midwestern, and is currently evaluating for
purchase another 21 bcf of potential working capacity which can be serviced
by these and other systems in the region. PGSMI also explores for natural
gas in the Gulf Coast region through a wholly owned subsidiary. Progas
intends to go public through a route of private industry offerings, and an
IPO or registration. For more information on services or the company mail
to: gastorage@aol.com or for AOL mail to gastorage@aol.com; web site
currently under construction at: http://www.progas.net/wip.

The company's executive and administrative office is located in Abilene,
Texas with storage operations in Owensboro, KY and exploration operations in
Corpus Christi, TX.

Progas Storage Services, Inc
8610 S. Hwy 277
Abilene, TX 79606

Ph 915 698 3699
Fx 915 698 2859
_____________________________________________

Power Suppliers to Meet with California Governor

    Executives from energy suppliers are meeting with Californias governor
today, and several are willing to discuss concessions that include price
limits on power sold within the state. Last week the governor said he would
seek to force the suppliers to accept reduced payment for billions of
dollars owed by the states utilities. In the face of a state investigation
into alleged market manipulation, some generators are willing to discuss
limits on prices for some electricity sold to the state. Williams says it is
prepared to support temporary price controls that would extend through the
summer of 2002. Williams is also willing to discuss a range of possible
alternatives for repayment of past debts owed to it. Reliant will reiterate
an earlier offer to sell some electricity to the state at $20 per MWh if the
buyer will pay for the natural gas to generate the power. Duke Energy has
proposed accepting less than full payment for power sold to the state in
return for an end to state and federal investigations into the prices they
charged. Duke, Enron, AES, Dynegy, Mirant, El Paso Energy, Reliant, and
Williams will all send executives to Sacramento to the meeting.
______________________________________________

GasTrader.Net

BULLS CAUTIOUS
In spite of slip sliding natural gas prices, analysts are still cautiously
bullish. There seems to be little incentive to abandon the bullish cause
with the prospects of hot summer weather looming."This is a weak market, but
I think that below $4.60 you have to anticipate the return of industrial
demand. It's really a wild card as to whether that demand will take the edge
off the current large injections. Over the past month, the market has gone
through a major change. Production has increased, storage  is higher, and
the injection last week at 102 BCF was the largest since June of 1998,' says
George Ellis, broker analyst with BNP Paribas, New York. "I was skeptical of
 the whole concept of demand erosion, but it's obviously real and when you
combine that with an increase in production, the supply demand balance
becomes clear. There is potentially more room to the downside, but the wild
card is weather and if that kicks in, prices could move sharply higher. If
prices fell to $4.38 then that would be a reason to put on another 25%
hedge. As long as we're holding these prices I think there's a good chance
prices will rally higher. I'm cautiously bullish. I would not be an
aggressive seller," he said.

For a Complimentary 5 week GasTrader Subscription go to
http://www.gastrader.net or call 303/761-7470
_____________________________________________________

TRENTON/BLACKRIVER "BOOM" IN WEST VIRGINIA

Land and Mineral Development LLC., Vienna, West Virginia, owns 85,000 acres
of mineral rights in Southeastern West Virginia. The first
Trenton/Blackriver production found in the state, was in a well drilled in
1962 by Tidewater Oil Company adjoining our property. We need an industry
partner. Geophysicist report and other information available.  The 85000
acres would also make a great gas storage field.

We also have another small storage field for sale near the new Trenton
Wells.

Email - Driller@wirefire.com
Qualified Industry Principals only please.
This is not an offer to sell anything to anyone.

Land and Mineral Development LLC.,
P.O. Box 5370
Vienna, West Virginia, 26105
(304) 295-3333
_______________________________________________

Blackouts Hit California Again

    California residents suffered through a second day of rolling blackouts
yesterday as temperatures soared, driving demand ahead of supply. The
California ordered that as of 3:10 PM the state's utilities must cut 400 MW.
Blackouts had been forecast by the ISO since early in the morning with the
heat coming at a time when many power plants are still off-line for
maintenance. The Los Angeles Department and Power, was as usual was excluded
from the blackouts. The LADWP is not under the ISO's control and has more
than enough generation to meet its demand. The ISO said demand was running
about 1,000 MW above Monday's levels. Earlier Tuesday, the ISO had projected
blackouts could be ordered before noon, but the return to service of two
500-kilovolt lines operated by BC Hydro meant more power was able to flow
south. About 700 MW produced by small suppliers, known as Qualifying
Facilities, are currently offline because they have not been paid. The hot
temperatures are likely to continue today, with the threat of more
blackouts.
_______________________________________________

CAMINUS
ENERGY SOFTWARE
SHOWCASE 2001
HOUSTON, TEXAS

You're Invited
To a four hour exposition of software and services that will set the new
standard for the energy trading, scheduling, and risk management. Join us
and compare your existing system with our latest product offerings.

Thursday, June 14, 2001. 3p.m. to 7p.m.
Houston Petroleum Club
800 Bell Avenue, 43rd Floor

For more information or to register on-line, visit http://www.caminus.com.
You may invite up to two qualified colleagues to join you.

Nucleus Software . ZaiNet Software
ZaiNet Gasmaster 2 . ZaiNet WeatherDelta
___________________________________________________

FINANCIAL SUMMARY
The TSE 300 gained 41.60 points to 8064.20
The CRB Index lost 0.02 points to 214.60
The US Dollar increased 0.69 points to 116.08
The Dow declined 51.66 points to 10883.51
The S&P 500 lost 2.31 points to 1261.20
The Nasdaq was up 25.20 points to 2198.77
June NYMEX Crude Oil dropped 0.47 to 27.39
Canadian-US Exchange rose .0041 to 1.5444
___________________________________________________

EnerfactsDaily Job Center at http://www.enerfactsdaily.com

New Job Postings Include:
 * Sales-Business Development
 * Operations Specialist
 * Account Director -Marketing/Transportation
_____________________________________________________

Need a past issue of Enerfax Daily or Enerfax GOLD. Past issues are
available on Sagewave at
http://www.sagewave.com/D2/autolog/common/log.asp?KEY=enerfax
______________________________________________________

Please welcome our advertisers by visiting these websites.
http://www.kwi.com
http://www.fea.com
http://www.caminus.com
http://www.progas.net/wip
http://www.fame-energy.com
http://www.cisconference.org
http://www.energyseminars.com
http://risk.sungard.com/energy
http://www.energy2001.eee.doe.gov
http://www.ziffenergyconferences.com

Enerfax Daily is North America's gas and power information source. it is
sent to you free of charge. Enerfax Daily may be copied and redistributed in
its entirety to all interested energy professionals. Please e-mail us at
enerfax@enerfax.com, or for AOL e-mail to enerfax@enerfax.com with the
e-mail addresses of other energy professionals that would like to be added
to Enerfax Daily's growing distribution list of thousands of energy
professionals in the US and Canada, or to be removed. The information
contained herein was obtained from sources which Enerfax Daily believes to
be reliable, but does not guarantee its accuracy. Your support of our
advertisers is greatly appreciated and will keep Enerfax Daily free. Thank
you. Your comments are welcome.

For information on advertising, please write advertise@enerfax.com, or for
AOL write to advertise@enerfax.com


The above meeting has been rescheduled for Thursday, November 9, at 9:00 AM
in the video conference room (49C2 in Houston).

Martha (x7330)


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

----- Forwarded by Debra Perlingiere/HOU/ECT on 05/30/2001 03:29 PM -----

	Stephanie Panus@ENRON
	05/30/2001 02:25 PM

		 To: Debra Perlingiere/HOU/ECT@ECT
		 cc:
		 Subject: Confidentiality Agreement for Southwest Offset Printing Co. Inc.

Debra,
Please see the attached request from Aparna in credit.   This is for a CA for
a physical transaction.

----- Forwarded by Stephanie Panus/NA/Enron on 05/30/2001 02:24 PM -----

	Aparna Rajaram/ENRON@enronXgate
	05/30/2001 11:26 AM

		 To: Susan Bailey/HOU/ECT@ECT, Stephanie Panus/NA/Enron@Enron
		 cc:
		 Subject: Confidentiality Agreement for Southwest Offset Printing Co. Inc.

Could you please draft up a CA for Southwest Offset Printing Co. Inc.This is
solely for the purpose of establishing a credit line after reviewing their
financials. Clint Commeaux is the commercial contact for this c/p.

The CA may be sent to:

Art Spear, Controller
Southwest Offset Printing Co. Inc.
13650, Gramercy Place
Gardena, CA 90249

Ph: (310) 323-0112 ext. 116
Fax: (310) 232-6927

I would appreciate it if this could be faxed to the customer by the end of
the day as we would like to speeden the preocess for a pending deal. Thanks.

Aparna Rajaram
Ph: (713) 345-4563
Fax: (713) 853-9476
Aparna.Rajaram@enron.com


Mariella,

Attached is a spreadsheet that calculates the Energy Payment received from PREPA and the cost of LNG from Cabot for the year 2001. It can also be used  for future years. A not-so-obvious revelation from the attached calculations is that for the year 2000, the Energy payment and the cost of LNG per kwh are equal if the heat rate for Eco @ 100% dispatch is 7473 BTU/kwh (i.e., before application of the Fuel Cost Correction Curve). Since Eco's heat rate at 100% of 507MW is lower than 7473 BTU/kwh, the PPA pays a little above the actual fuel cost.

I will be happy to review this with you or with Remi. Also, I will FAX to you the handwritten pages mentioned.

Regards,

Paul

 -----Original Message-----
From: 	Sierra, Rick
Sent:	Monday, August 20, 2001 6:48 PM
To:	Mahan, Mariella
Cc:	Y'Barbo, Paul
Subject:	RE: LNG cost and energy revenue matching

M,

One of the papers you reference was prepared by Paul Y'Barbo, the other by me.  In essence, as long as the PR-CPI is higher than the basis, we maintain a positive energy margin.  I am not sure I can find the documents - they may be in my new office or in the files I have asked Cynthia to keep in a file cabinet on your floor - last time I was on your floor they were still in boxes.

Paul - please see if you have the documents Mariella is asking for.  If you are not sure what she is talking about, please contact her and provide what she needs (you may have to reproduce the mathematical equations).

Rick

 -----Original Message-----
From: 	Mahan, Mariella
Sent:	Monday, August 20, 2001 5:48 PM
To:	Sierra, Rick
Cc:	Collonges, Remi
Subject:	LNG cost and energy revenue matching

Hi Rick,
Believe it or not it was only two days ago that I threw away the analysis you performed for me when I asked the question of: is Eco exposed to fuel risk because it's PPA energy pricing formula (including indexing) appears different than its LNG cost formula (including indexing)?  I know the conclusion reached by you, Doug R. and the folks from ECT who helped put the transaction together at the time was: No.  In fact, we have a small positive energy margin.  Conditions would almost have to be unimaginable for the margin to become negative, etc.

In today's staff meeting I was asked to involve Remi Collongues (he heads our trading efforts in Brazil) in taking a look at the revenue-cost aspects of our LNG project in Puerto Rico to confirm or correct the conclusions reached earlier.  Do you still have a copy of the analysis you prepared for me?  It was a hand-written analysis together with copies of the pertinent PPA and FSA provisions.

Thanks in advance. Mariella


first water (furst WA-tuhr) noun

   1. The highest degree of quality in a precious stone, especially diamond.

   2. The best grade or quality.

   "Anne-Sophie Mutter: The German-born former prodigy was once known
   more for her strapless gowns and her glamor, but she has matured into
   a musical diamond of the first water."
   Melinda Bargreen, Strings of Success, The Seattle Times, Jan 17, 1999.

............................................................................
There is a foolish corner in the brain of the wisest man. -Aristotle,
philosopher (384-322 B.C.)

Q: Can I make a link from my Web site to the AWAD site?
A: Certainly. You may use this HTML:

Pronunciation:
http://wordsmith.org/words/first_water.wav
http://wordsmith.org/words/first_water.ram


Regarding, Managers and Directors who are rated Needs Improvement or Issues
in ENA...
Dave Delainey is requesting from each Business Consultant a copy of the
review and a written plan to rectify performance or counsel them out.
Thanks,
hgm


Sue and I attended an ARM meeting on Friday in which we focused on default
provider role for the utilities.  The outline of the proposal is attached.
As SDG&E (and believe it or not, PG&E) have indicated an interest to be a
wires only company, the structure proposed for default provider may have some
potential.  Essentially, it is modeled after the gas industry:

1.  No utility default for large customers (need to define, 50 kW and
above?);  UDC provides a PLR role only.
2.  Default for res and small commercial is a fixed price.  Utility has
unlimited ability to hedge.  No ex-poste reasonableness review.
3.  Create a phase-in for competitive default provider.

What it does:

1.  Creates a more competitive environment for large C&I.  (EES)
2.  Provides stability for res/commercial with a transition period to full
competition.  (ENA)
3.  Provides the utility with more certainty around regulatory treatment
(live and die by the fixed price)
4.  May also provide a mechanism for limiting exposure for SCE & PG&E for
uncollectibles, going forward.  Does not solve existing balance.  Needs
further discussion.

Please review and comment.  This is a strawman.  May be useful in our
strategy development.

Mona

---------------------- Forwarded by Mona L Petrochko/SFO/EES on 09/18/2000
10:15 AM ---------------------------

"Leslie, John" <jleslie@LUCE.com>@LUCE.com> on 09/18/2000 10:01:35 AM
Sent by: "Johnson, Roseann" <RJohnson@LUCE.com>
To: "ARM Members (E-mail)" <ARM@phaser.com>, "Leslie, John" <jleslie@LUCE.com>
cc:
Subject: Proposal for Transition to New Default Service Provider

To ARM Members:

 I have enclosed two documents that are based upon our discussions at
Friday's ARM meeting.  First, I have enclosed a reproduction of the
flip-charts that we created during the meeting.  Admittedly, these are a bit
difficult to understand.  Second, I have drafted an outline of the proposal
to provide a transition mechanism to bring on new default service providers.

 Please circulate your comments on the proposal by Wednesday,
September 20.

    -John

 <<#1556435 v1 - SES-ELECTRIC - Discussion at 9-15 ARM meeting.doc>>
<<#1556343 v1 - SES-ELECTRIC - Transition Proposal (9-18-00).doc>>
**************

CONFIDENTIAL

Luce, Forward, Hamilton & Scripps LLP
600 West Broadway
Suite 2600
San Diego, CA 92101-3391
(619) 236-1414

The information contained in this electronic mail transmission is
confidential and intended to be sent only to the stated recipient of the
transmission.  It may therefore be protected from unauthorized use or
dissemination by the attorney-client and/or attorney work-product
privileges.  If you are not the intended recipient or the intended
recipient's agent, you are hereby notified that any review, use,
dissemination, distribution or copying of this communication is strictly
prohibited.  You are also asked to notify us immediately by telephone and to
delete this transmission with any attachments and destroy all copies in any
form.  Thank you in advance for your cooperation.

 - #1556435 v1 - SES-ELECTRIC - Discussion at 9-15 ARM meeting.doc
 - #1556343 v1 - SES-ELECTRIC - Transition Proposal (9-18-00).doc


Taffy - please print this for Ken to take away with him today.
----- Forwarded by Mark Taylor/HOU/ECT on 09/15/2000 08:48 AM -----

	Chris Long@ENRON
	09/15/2000 08:29 AM

		 To: Mark Taylor/HOU/ECT@ECT, Tom Briggs/NA/Enron@Enron, kraisler@sullcrom.com
		 cc:
		 Subject: FR: Leslie Woolley--Shad/Johnson agreement documents

---------------------- Forwarded by Chris Long/Corp/Enron on 09/15/2000 09:37
AM ---------------------------

Verlene.Joseph@do.treas.gov on 09/14/2000 06:56:26 PM
To: barb@fiafii.org, chris.long@enron.com, cjur75@cbot.com,
dmoorehead@pattonbogg.com.treas.gov, fclark@pmainc.net,
fhampton@bondmarkets.com, jillmay@erols.com, jlseidel@wms-jen.com,
jmd@fiafii.org, litafrazier@erols.com, mark.young@dc.kirkland.com,
michael_stein@msdw.com, mlwhalen@wms-jen.com, pkim@ms.com,
rsroyer@royerandbabyak.com, scarey@isda.org,
tadavis@davis-harmon.com.treas.gov
cc: Leslie.Woolley@do.treas.gov

Subject: FR: Leslie Woolley--Shad/Johnson agreement documents

Date:  09/14/2000  06:51 pm  (Thursday)
From:  Verlene Joseph
To:  EX.MAIL."jmd@fiafii.org", EX.MAIL."tadavis@davis-harmon.com",
     EX.MAIL."jillmay@erols.com", EX.MAIL."litafrazier@erols.com",
     EX.MAIL."fhampton@bondmarkets.com", EX.MAIL."cjur75@cbot.com",
     EX.MAIL."pkim@ms.com", EX.MAIL."chris.long@enron.com",
     EX.MAIL."dmoorehead@pattonbogg.com",
     EX.MAIL."jlseidel@wms-jen.com", EX.MAIL."michael_stein@msdw.com",
     EX.MAIL."mlwhalen@wms-jen.com", EX.MAIL."barb@fiafii.org",
     EX.MAIL."mark.young@dc.kirkland.com",
     EX.MAIL."fclark@pmainc.net", EX.MAIL."scarey@isda.org",
     EX.MAIL."rsroyer@royerandbabyak.com"
CC:  woolleyl
Subject:  FR:  Leslie Woolley--Shad/Johnson agreement documents

Attached please find the following documents for the Shad Johnson
agreement.:
Legislative Language
Section-bySection
Summary
Transmittal letters

Also, please send me your name and date of birth for the 10:00 a.m.
meeting with Lee Sachs in the Diplomatic Reception Room of Treasury
tomorrow.

Thank you.

Leslie
 - SECTION.DOC
 - LEGIS.DOC
 - SJSUMF~1.DOC
 - LEADER~1.WPD
 - LETTERS.DOC