Larry,

This looks like all of the comments.

Jon

-----Original Message-----
From: Larry.Campbell@enron.com [mailto:Larry.Campbell@enron.com]
Sent: Tuesday, October 09, 2001 3:57 PM
To: Ruth.Jensen@enron.com; William.Kendrick@enron.com;
jfields@argentinc.com
Subject: TW Comments to air permits for Stat3 and 4

Jon and Ruth, presented below are the comments to the air perimts at 3 and
4.  Please review for clairty and content.  I have spoken to Roger Kohn
about all of these issues and the only one which may be a problem is with
No. 2.  He is checking on what the EPA can do about this.  I have spoken to
Arnold Eisenstein about what we can do with the strict 25 ppmvd requriement
for NOx and CO and he has said that we can hold to the 25 ppm value by
doing some major gas recycling.  This is a fuel waste and costly.  Anyway,
depending upon how long this issue delays the issuance of the permit will
undoubtably determine whether we give in to the 25 ppmvd or hold out for 40
ppmvd.  Id like your comments asap.

              1.     The responsible official name change to  Danny
Pribble.

                         2..  The draft permit limits NOx and CO emissions
to 25 ppmv at 15% O2, based on a 3-hour average, except during periods of
startup        and shutdown.  At 60F and above the GE data indicates that
these rates are achievable under all operating conditions.  However, GE
     data indicates that NOx and CO may be as high as 40 ppmv during
low-load conditions of 60%and lower.

           The permit application represented turbine operations at base
        load 80% of the time with reduced load operations (64% load)
        occurring    no more than 20% of the time.  The potential to emit
        calculations presented the emissions in the application in units of
        lb.hr and ton/yr.      These values were accepted by the EPA for
        the netting analysis, and  took were taken into account by the EPA
        (See EPA Statement     of Basis document).  Because the permit
        conditions hold us to ppmvd values and not lb/yr or ton/year
        values, Transwestern is          concerned that under low load
        conditions of less than 60%, the emissions of NOx and CO would be
        40 ppmvd.  Transwestern is       requesting that  a provision be
        made in the permit conditions that  emissions of NOx and CO be held
        to 40 ppmvd during the 20 % of   the time that the turbines
        operating conditions is less than or equal to 60%.

        3.      The word "Catepillar" is mispelled throughout the permit.

        4.      Permit conditions for sulfur testing in the fuel gas
        requires Transwestern to use methodologies (wet chemistry
        technology) that are not         normally used to monitor and
        measure sulfur in the natural gas.  Transwestern has received
        approval from the EPA for other custom     fuel monitoring
        schedules to use  "GPA Standard 2377" (length of stain tube) or gas
        chromatography as the proposed methodology  to  monitor sulfur in
        the natural gas.

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


Ruth,

Per Gerald Nemec's request, attached are the disclosure letter agreements for
Pastoria.  We are forwarding executables to you.

Thanks,

Eric Gillaspie
713-345-7667
Enron Building 3886


Ben/Kay:
;
After our call, we had a few more;discussions with the City regarding the
guarantee, etc.; We think we have them convinced that the only gurantee Enron
North America will provide is a payment obligation for Section 4 ($1.5 mm up
through issuance of the building permits).; Debbie will draft accordingly.; ;
;
The City would like the base document agreed to and signed by DBEC on Monday
am the 11th (prior to the DRC hearing at 1:00 pm) and will allow the opinions
and guarantee to follow.; Their only request is that the opinions and
guarantee be;submitted well in advance of the;Commission Hearing (scheduled
for 4:00 pm on;the 14th) so as to have sufficient time to review and comment
- morning of the 13th should work
;
The City is insisting the initial payment of $500k needs to occur before its
fiscal year-end (Sept 30).; Debbie will revise accordingly.
;
Debbie will issue a new draft tonight - lets plan to;discuss it tomorrow am.
;
Regards,
Steve
;
;
;

-----Original Message-----
From: Mann, Kay
Sent: Thu 6/7/2001 3:04 PM
To: OrshefskyD@GTLAW.com
Cc: Jacoby, Ben; OrshefskyD@GTLAW.com; MedleyB@gtlaw.com; Krimsky, Steven
Subject: RE: Deerfield Beach Energy Center sections 6 and 7

6. Default By DBEC. Should DBEC default on the payment obligations contained
herein,; it shall be liable for interest on the amount outstanding at a rate
of one and one/half percent; per month or each portion thereof.; Should the
City of Deerfield Beech obtain enforcement of the payment obligations
contained herein through judicial action, then, in that event, the City of
Deerfield Beech shall be reimbursed by the DBEC for all costs and attorneys
fees including the costs of any appeals.;;;

7.; Default By the City of Deerfield Beech.; Should the City of Deerfield
Beech default on the obligations contained herein, and DBEC obtain
enforcement of any rights or obligations set forth herein through; judicial
action, then, in that event, DBEC shall be reimbursed by the City of
Deerfield Beech for all costs and attorneys fees including the costs of any
appeals.;;;


Ken Lay has approved the attached expense report for Rosalee Fleming.


In Search of Winning Stocks

This Week: Searching for January Effect Hopefuls
1.  Searching for the Year's Best Nasdaq Stocks
2.  Search Criteria
3.  One January Effect Hopeful
4.  Disclaimer

***********************Our Sponsor*************************
Learn Proven Trading Techniques from a Wall Street Pro

If you are interested in learning the specific trading
techniques that generated consistent profits for the top
trader for Fidelity Capital Markets, click here to take
advantage of a unique and timely opportunity.
http://subs.wallstreetcity.com/c/go/XTRO/WSCE-xtroTA2?s=S201&D=XWSC
**********************************************************

Wall Street City,s Stock Search of the Week

1.  Searching for January Effect Hopefuls

The "January Effect" is an oft-discussed phenomenon that
occurs when stocks that have sold off near the end of one
calendar year outperform the broader markets at the
beginning of the following year.   Typically, these stocks
decline late in the calendar year due to tax selling, but
are repurchased after the wash sale period expires.
Candidates for an early calendar year rebound are often those
stocks with favorable fundamental characteristics.

January Effect Hopefuls is a search strategy that screens
for such candidates.  Primary criteria include a negative
26-week return and a market capitalization of between
$50 - $750 million.  The January Effect tends to occur more
often with small to mid-cap stocks than it does with
large-cap stocks.  Utilizing the current ratio and
debt-to-equity criteria in the restrictive mode screens for
balance sheet strength.  Companies with high current ratios
and low debt-to-equity ratios have lower levels of financial
risk.  The two revenue percentage change criteria screen for
companies with acceleration in their quarterly revenue growth
rates.  Positive forecast earnings growth is then sought to
improve the chances that the companies will continue their
growth trends in the future.  As a final criterion, positive
earnings surprises are sought for the past four reported
quarters; companies that have a history of exceeding analysts'
expectations tend to outperform their peers.

Though the search strategy is designed with the January
Effect in mind, it works well throughout the year for
investors who follow contrarian strategies.  Investors who
are eyeing the results with the January Effect in mind should
note that back testing showed material divergences in
individual stock returns, therefore, selecting a basket of
securities instead of one or two stocks may reduce risk.

Click below to see the results.

http://clyde.investools.com/T/A24.133.320.1.42265

2.  Search Criteria

Using WallStreetCity,s ProSearch tool, investors can
build a search like the one below created by WallStreetCity
analysts to find stocks that potential candidates for a
January Effect rebound.

Indicator                      Mode
------------------------------------------------------------
Rel Performance 26 Wk          Between 0.0 - 99.0
Market Capitalization          Between 50.0 - 750.0
Current Ratio                  Between 2.0 - 1000.0
Debt/Equity Ratio              Between 0.0 - 50.0
Rev. Increase Last Qtr         Between 102.0 - 10000.0, High
Rev. Increase 2 Qtr ago        Between 101.0 - 10000.0
Proj EPS Next FY               Between 1.0 - 1000.0, High
EPS Surprise Pos Last 4        Between 4.0 - 4.0

Investors can click below to view screen results.

http://clyde.investools.com/T/A24.133.320.2.42265

3.  One January Effect Hopeful

Shares of Globespan {GSPN} declined by 70 percent during
October and November.  The decline was caused by the mass
exodus out of tech stocks, profit warnings from Lucent {LU}
- a major customer - and comments out of Cisco {CSCO} - also
a customer - that it would be reducing inventory.  Despite
these market events, GSPN has not issued a profit warning
and Bloomberg News Services is reporting that an analyst
with Morgan Stanley Dean Witter is predicting that GSPN will
meet revenue forecasts in 2001.  Though GPSN, a developer of
DSL integrated circuits, continues to trade a P/E ratio
untypical of many January effect candidates, the extent of
the decline could be more than enough to buffer the stock
from a potential earnings warning, creating the possiblity
of a bounce in 2001.

Click below to view screen results.

http://clyde.investools.com/T/A24.133.320.3.42265

***********************Our Sponsor*************************
These 8 Fiber-Optics Can Change Your Financial Future!

Spending on fiber is soaring -- it's the only practical way
telecoms can handle exploding Internet traffic. Fiber will
create "a new class of millionaires," says Don Rowe. His top
8 all have robust sales, earnings, fundamentals. FREE trial:
http://www.investools.com/c/go/WALL/WSCE-wallTR2?s=S600
**********************************************************

4. Disclaimer

WallStreetCity,s Stock Search of the Week is published
solely for informational purposes and is not a solicitation
or an offer to buy or sell any stock, mutual fund or other
security.  The information obtained from internal and
external sources is considered reliable, but has not been
independently verified for accuracy and completeness.
WallStreetCity, its employees, and/or officers and directors,
may from time to time have a position in the securities
mentioned and may sell or buy such securities.
Trading involves risk, including possible loss of principle
and other losses.  Trading results may vary. No
representations are being made that these techniques will
result in or guarantee profits in trading.  Past performance
is no indication of future results.

REMOVE ME FROM THIS FREE EMAIL LIST
To be removed from the email distribution list for the FREE
WallStreetCity,s Stock Search of the Week Commentary, simply
click the link below and hit "Send" on the email that is
launched. (Or copy and paste the email address below to a
new outgoing email message and hit "Send" on the email that
is launched).

mailto:U-A24.133.42265@newsletter.wallstreetcity.com

If you have tried unsubscribing in the past -- and believe
that you received this message in error -- please send an
email to

mailto:yourfeedback@wallstreetcity.com

to voice your concerns and be removed from the list.


----- Forwarded by Sara Shackleton/HOU/ECT on 12/15/2000 08:58 AM -----

	Susan Musch@ENRON_DEVELOPMENT
	12/14/2000 08:18 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Re: FX Product

Sara,

Given my discussion with Sheila Glover and Darren Delage last night, I think
this is the structure we're going to use.  We just need to set up the service
agreement.

Best regards,
Susan

From: Sara Shackleton@ECT on 12/14/2000 04:40 PM
To: Susan Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Re: FX Product

Susan:

Thanks for the update.  Gary Hickerson wants this product available on EOL
now (which explains why I am called daily by the trading desk).  Do you know
when a decision on the Japanese FX principal will be forthcoming?

Sara

	Susan Musch@ENRON_DEVELOPMENT
	12/14/2000 03:56 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Janine Juggins/LON/ECT@ECT, Melba Lozano/HOU/ECT@ECT, William
Stuart/HOU/ECT@ECT, Steve Jacobellis/NA/Enron@Enron@ECT, Jeff
Blumenthal/HOU/ECT@ECT, Rhett Jackson/HOU/ECT@ECT
		 Subject: Re: FX Product

Sara,

Attached are two e-mails that I sent yesterday and today on the Japanese FX
trader.  In short, we are pursuing the dependent agency approach.  The
specifics are set forth in the e-mails.

Please let me know if you have any questions or need any additional
information.

Best regards,
Susan

Susan Musch
12/14/2000 09:46 AM
To: Heidi Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Jan-Erland Bekeng/AP/Enron@Enron, Sheila Glover@ECT, Darren Delage@Enron,
Scott Gilchrist/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janine Juggins@ECT, Rod
Sayers@ECT (bcc: Susan Musch/ENRON_DEVELOPMENT)

Subject: FX Trader in Tokyo

Heidi,

In response to your attached e-mail, I am attaching the e-mail message that I
sent out yesterday regarding the structure for the FX trader in Tokyo and the
EM-Japan traders.  (You were already copied on this but I want to make sure
that you got it.)

In this e-mail, I explain that PWC-Tokyo has recommended following a
dependent agent approach for these traders (which is what you reference in
your attached e-mail).  I recommend this approach saying that it is a
pragmatic approach and should be easily implemented.  I talked with Sheila
Glover and Darren Delage about this approach yesterday evening and they like
it as well.  (In fact, they were also copied on the e-mail regarding the FX
trader and the EM-Japan traders.)

The following points should be kept in mind in following the dependent agent
approach, which I have already discussed with Sheila and Darren:

(1) Agency approach:  Enron Japan would be considered to be an agent of ENA.
In this role, it would facilitate trades that would be entered into between
ENA and the third party counterparties.  The trades would be entered into in
the name of ENA.  Under this approach, Darren is limited in what he is
authorized to do, and his trading parameters will need to be reduced to
writing.  These parameters must restrict his activities so that they
constitute activities that have a preparatory or auxiliary character.  The
advice that we received for the FX trader's activities in Australia should
equally apply to our facts here.  The following is an excerpt from a memo
that I wrote last year summarizing this advice:

Guidelines and boundaries must be established on what the financial trader
can do (e.g. price parameters, product parameters, etc.). Activities cannot
include the negotiation of terms of master contracts, forwards and other
derivatives with counterparties. If a master contract must be executed in
Australia, then it should be executed by an independent agent (such as a
lawyer) having a power of attorney from the hedging party. Confirmations
should be issued by the hedging party, rather than by EA Finance in Sydney.
The Australian tax advisor recommended that the financial trader say:  &My
principal will deal with you within these parameters (.8

(2) Darren's employment:  Darren must be considered an employee of Enron
Japan so as to avoid ENA being treated as having a permanent establishment in
Japan.
(3) Darren's agency role:  Darren should not identify himself as an employee
of ENA Houston.  He should make it clear that the third parties are entering
into the transactions with ENA as principal.
(4) Service agreement:  A service agreement must be put in place between
Enron Japan and ENA (similar to what we did for the FX trader in Sydney).
Enron Japan should at least initially  be compensated at a cost plus 5%
mark-up.  Yesterday evening I also forwarded to Sheila and Darren by e-mail
the old service agreement that we put in place for the FX trader in Sydney so
that they could review what terms have been previously used.  (Incidentally,
the service agreement we put in place between Enron Australia and ENA was
very similar (almost identical) to the one that was put in place between
Enron Europe and ENA for the FX trader in London.)
(5) Potential issues upon Japanese tax audit:  Notwithstanding that this
approach is easier to implement, more workable and more pragmatic in
approach, we need to be aware that there could be questions upon a Japanese
tax audit.  In that event, transfer pricing issues could be raised.  That is,
the auditors could question whether a cost plus 5% mark-up is commensurate
with what an unrelated third party would charge for similar services.  We
would then need to justify that service fee, or if unsuccessful, try to work
out a commission fee that would be acceptable to the Japanese tax auditors.
Management needs to be aware of this potential.

I guess I wasn't clear in my attached e-mail.  I am sorry for any
inconvenience this may have caused you.  I hope this e-mail better explains
the recommended structure.  Please let me know if you would like to set up a
conference call to discuss this further (and let me know who you would like
on the call).

Best regards,
Susan

Susan Musch
12/13/2000 06:07 PM
To: Jan-Erland Bekeng/AP/Enron@ENRON
cc: Jane McBride@Enron, Tina Ward@ECT, Paul Simons@ECT, Alan Aronowitz@ECT,
Rod Sayers@ECT, Janine Juggins@ECT, Heidi
Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joseph P Hirl/AP/ENRON@ENRON,
Sheila Glover@ECT, Darren Delage@Enron (bcc: Susan Musch/ENRON_DEVELOPMENT)

Subject: Enron Metals & FX Traders in Japan

Jan-Erland,

I have not yet received the 2001 projections/budget for the Enron Metals
trading in Japan.  If you have already sent it, could you please re-send it?

Also, I talked with PWC-Tokyo late last night about structuring for the FX
trader and Japanese Metals traders to confirm Baker & McKenzie's advice on
not using a dependent agent structure in Japan.  PWC has advised that
although Baker & McKenzie's approach is more technically correct, foreign
traders usually set up their Japanese trading operations through the use of a
dependent agent in Japan.  The Japanese dependent agent is usually reimbursed
using cost plus 5%, at least initially.  Then, if the Japanese tax
authorities raise questions upon audit, a commission arrangement is generally
used, with the question being what should the profit split be between the
agent and the foreign company.  Whether the Japanese tax authorities raise
questions upon audit is dependent upon the volume of trades and the magnitude
of the trades.  The PWC Japanese tax partner suggested that we use this
arrangement for both the FX trader and the EM Japan trades.  I have asked PWC
to send this advice in writing by tomorrow.

This seems to be a much more pragmatic approach than the one suggested by
Baker & McKenzie.  And it should be easy to implement by year-end.  However,
management must be aware of the fact that PWC's approach could raise
questions upon a Japanese tax audit.  Note that if we follow this approach,
we would need to set up a services agreement between Enron Japan (whichever
the appropriate entity is) and ENA.

Please let me know if you have any questions or need any additional
information.

Best regards,
Susan

HEIDI MASON
12/13/2000 08:38 PM
To: Susan Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Jan-Erland Bekeng/AP/Enron@Enron

Subject: Re: Japanese Financial Subsidiary

Thanks for the note Susan. Like you, I would love to get the funding resolved
before year-end as we have finalised the amounting owing to Houston etc
(subject to some invoices etc being received) so it would be a good time to
get this done.

Re the FX trader, I have been harassing Sheila a bit this week, so I was
hoping to hear from you or her on the progress here. At this stage I
understand that the deals are still being done in the name of ENA, but there
have not been alot, so again if we can get this addressed before the volume
grows it would be best for all. I was reviewing this matter with JEB
yesterday and he indicated that his preference is for an agency style
agreement which avoids the need for the back to back deals.

With thanks

Heidi Mason
Chief Financial Officer
Enron Australia

From: Sara Shackleton@ECT on 12/14/2000 01:22 PM
To: Janine Juggins/LON/ECT@ECT, Susan
Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Melba Lozano/HOU/ECT@ECT, William Stuart/HOU/ECT@ECT, Steve
Jacobellis/NA/Enron@Enron, Jeff Blumenthal/HOU/ECT@ECT, Rhett
Jackson/HOU/ECT@ECT

Subject: Re: FX Product

Janine:

Thanks for the update.  Any word on the Japanese FX desk principal?  Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 12/14/2000 01:23 PM -----

	Janine Juggins
	12/13/2000 04:04 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Jeff Blumenthal/HOU/ECT@ECT, Rhett Jackson/HOU/ECT@ECT, Melba
Lozano/HOU/ECT@ECT, Susan Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: Re: FX Product

Your summary is correct based on information to date (in this regard the
agreement between ENA and EEFT still requires amendment in respect of RMT and
I undertake to get this done).

However, please note that there have been some last minute changes in the
Japanese tax advice, received I understand only as of last night. Susan Musch
will be following up on these changes at a meeting today with Sheila Glover
and Darren Delage, and has undertaken to keep you appraised of the position.
The effect of the change would be to permit RMT to be the principal for the
Japanese FX desk, with a Japanese entity acting as agent to arrange the
transactions.

Best regards
Janine

From: Sara Shackleton on 13/12/2000 13:52 CST
To: Janine Juggins/LON/ECT@ECT
cc: Jeff Blumenthal/HOU/ECT@ECT, Rhett Jackson/HOU/ECT@ECT, Melba
Lozano/HOU/ECT@ECT

Subject: FX Product

Janine:

With respect to the attached (internal) FX product for EOL, I just wanted to
verify with you that internal counterparties should transact on EOL with:

(1)  RMT  (as principal for Houston FX desk)

(2)  EEFT as agent for RMT (as principal for London FX desk).  In this
regard, was the services agreement between ENA and EEFT ever extended to
include RMT for internal trades?

(3)  Enron Japan Corp. (as principal for Tokyo FX desk)

There appears to be some confusion since our meeting of November 3.  Thanks.
Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 12/13/2000 11:22 AM -----

	Melba Lozano
	12/11/2000 05:59 PM

		 To: Sara Shackleton/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT
		 cc: Robert B Cass/HOU/ECT@ECT, Steve Jacobellis/NA/Enron@Enron, Kevin
Meredith/Corp/Enron@ENRON, Steve Jacobellis/NA/Enron@Enron
		 Subject: FX Product

Sara / Mark,

I need an approval as soon as possible from you for the FX Description
attached.  Steve Jacobellis is requesting that this gets out on the web as
soon as possible.

Thank you,

Melba
58986
---------------------- Forwarded by Melba Lozano/HOU/ECT on 12/11/2000 05:53
PM ---------------------------

From:  Melba Lozano
  11/30/2000 06:41 PM

To: Sara Shackleton/HOU/ECT@ECT, William Stuart/HOU/ECT@ECT
cc: Robert B Cass/HOU/ECT@ECT
Subject: FX Product

Sara:  Please approve on the attached language for the FX Product.

William:  There is a gap between hour ending 3:00 and 4:00 .  Do you want to
go ahead and set up Central time to trade until Hour Ending 4:00?  Please let
me know.

Thank you,

Melba


Notice No. 00-402
November 21, 2000
TO:    ALL NYMEX MEMBERS AND MEMBER FIRMS
ALL NYMEX CLEARING FIRMS
ALL NYMEX OPERATIONS MANAGERS
FROM:   Neal Wolkoff
     Executive Vice President
SUBJECT:     MARGIN RATE CHANGE
Effective Date:  Wednesday, November 22, 2000 (close of business)
Futures Contract: Henry Hub Natural Gas Futures
Contract Months: All Months
Rate Change:
NYMEX Division Margins on Henry Hub Natural Gas Futures Contracts
Effective Date: Wednesday, November 22, 2000 (close of business)
Clearing Member (Maintenance Margin):      Old:  $5,500  New:  $6,500
Member Customer (Initial Margin):        Old:  $6,050  New:  $7,150
Non-Member Customer (Initial Margin):      Old:  $7,425  New:  $8,775
Should you have any questions regarding these changes, please contact Arthur
McCoy at (212) 299-2928 or Joe Sanguedolce at (212) 299-2855.  This notice
supersedes all previous notices regarding outright margins for the NYMEX
Henry Hub Natural Gas Futures Contract.

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

"http://208.206.41.61/email/email_log.cfm?useremail=tana.jones@enron.com&refdo
c=(00-402)"

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


---------------------- Forwarded by Chris Germany/HOU/ECT on 04/27/2000 04:41
PM ---------------------------

	  Enron In Action	 Week of 04.24.00

From: Enron In Action@ENRON on 04/24/2000 08:36 AM
Sent by: Enron Announcements@ENRON
To: All Enron Houston
cc:
Subject: Enron In Action 4.24.00

IVOLUNTEERI
Join U of H legend and former Houston Rocket Clyde Drexler for the 9th Annual
Epilepsy Summer Stroll at  Terry Hershey Park Saturday, May 13th.  We are
looking for team captains and walkers.  For more details, please contact
Sherri Saunders at 3-6107 or Stephanie Nikolis at 3-1967.

IHAPPENINGSI
Aeros Playoff Hockey Tickets- The Houston Aeros will begin their defense of
the Turner Cup April 29th at Compaq Center.  Enron Employees can purchase
discounted tickets in advance in the Enron Building lobby on Wednesday, April
26th from 11 AM - 1 PM.  You can also go to the Community Relations website
for an order form-http://home.enron.com/cr/.  Any questions, call the Houston
Aeros at (713) 361-7937.

Get into the spring of things with the blooming plant sale in the Enron Lobby
Wed., April 26th from 11:00 a.m. - 1:00 p.m.

Enron Spring Volleyball Tournament 2000 is scheduled for May 13th at 9:00
a.m.   For more information contact Jodi Dziadek at x34301.

Get CPR/First Aid Certified this month!  Learn the lifesaving techniques for
you and your family.  Learn how to perform adult & infant CPR and how to use
an AED (automatic external defibrillator).  April 25, 1:00 - 5:00 p.m.  Cost
is $10.  To register call the Health Center at x36100.

Enron Company Picnic Astroworld tickets can only be used on the day of the
picnic - May 7, 2000. If any questions or still need to buy tickets, please
contact Rachel at X57629.

IWORKPERKSI
 Enron has a free shuttle service to parking garages, surface lots, and Metro
bus stops in the immediate downtown area.  Route maps and time information
are available at the Transportation Desk on Level 3 of the Enron Building.
The program will soon be evaluated  for improvements.  Your comments and
suggestions are welcome.  Comment cards are available on the shuttle and at
the Transportation Desk.

ISAVE THE DATEI
May 6th -  Kremlin Gold Collection at the Museum of Natural Science, dontate
a new or gently used book and receive a discount on admission plus a free
pass to the IMAX film "Gold Fever".
June 9th - Bring Your Child To Work Day.


MARK HAEDICKE,
?
The PEP system will be open through Friday, June 1st so that you may complete
or decline your reviews.
?
Our records indicate that you have one or more requests for feedback that
have not yet been submitted.  Please complete or decline these requests as
soon as possible by logging into PEP at http://pep.enron.com and selecting
Complete Feedback from the Main Menu.
?
If you have any questions, please contact the PEP Help Desk at:
Houston:  713.853.4777, Option 4 or email: perfmgmt@enron.com
London:  44.207.783.4040, Option 4 or email: pep.enquiries@enron.com
?
Thank you for your participation in this important process.


SDG&E filed a Complaint with the FERC that requests an "emergency order
capping at $250 per MWh the prices" for all parties selling into the Calif
ISO and the Calif PX.   SDG&E claims that the Calif ISO and the Calif PX are
"fundamentally flawed and inherently incapable of producing workable
competition".

EPMI is directly impacted by this Complaint.   Even though FERC has approved
EPMI's Market-Based Rate certificate after a finding that we had no market
power, this Complaint would restrict us from selling at above $250 per MWh
into the Calif ISO and Calif PX.

Government Affairs is responding in two ways --

1. A direct response from EPMI to FERC responding that there has been no
finding that EPMI has market power and therefore we should not lose our
market-based rate authority.

2. A response through WPTF (Western Power Trading Forum) and EPSA to argue
more broadly the facts of what is going on in California (bad hedging by
SDG&E) and poor market structure rules.

The fundamental problem is that the FERC is running scared about price spikes
and may, without any real thinking, approve such a Complaint.  SDG&E has
asked for expedited treatment and a decision could be out as early as mid
August.

This issue again highlights how important the on-going FERC Investigation in
Market Issues is for Enron.  We are putting together a detailed plan of how
Enron will present our recommendations to FERC in this Investigation and will
discuss this with you.

Call with questions.

Thanks,

Jim


Please find attached the above referenced report.

Please let me know if you have any questions.

Thank you,
Shelly Butler
ENW-Energy Operations Global Services Management
713-853-4584
shelly.butler@enron.com


I heard.  I'm just pulling intop garage and will call back in a minute
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)


John,

My new E-mail address is   vkamins@enron.com.

I am compiling the  information for you. I should be able to send it in a few
days.

Vince

"John D. Martin" <J_Martin@baylor.edu> on 07/28/2000 02:41:42 PM
To: Stinson Gibner/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Reminder

Stinson (and Vince--don't think your e-mail address is correct)

This is just a reminder about the "care package" of Enron cases and
materials that you guys were going to send to me.

Stinson, please convey this request on to Vince because I think the e-mail
address I have is an old one.

Thanks and have a great weekend.

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


what do you guys think.  Jeff
If he is good, we have a lot to do in Japan.
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 10/02/2000
01:47 PM ---------------------------

"Chris Handte" <handtec@wharton.upenn.edu> on 09/26/2000 10:06:14 PM
To: <jeff.shankman@enron.com>
cc:
Subject: Opportunities in Japan

Hi Mr. Shankman,

I am a second year finance major at Wharton.  I left a voice mail for you
the other day in which I mentioned my interest in pursuing finance
opportunities in Japan.  I have extensive experience in Japan and am looking
to go back and take advantage of some of the fascinating changes that are
occurring over there.  I will try calling you again this Thursday to
hopefully discuss Enron's strategies and opportunities more specifically.  I
have attached my resume for your consideration.  I look forward to talking
to you.

Sincerely yours,

Christopher Handte
________________________________

Christopher Handte
Wharton MBA Candidate, Class of 2001
4300 Spruce Street, Apt. C-104
Philadelphia, PA 19104
215-382-8744
E-Mail: Christopher.Handte.wg01@wharton.upenn.edu

 - RESUME - Christopher Handte.DOC


Start Date: 12/18/01; HourAhead hour: 2;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001121802.txt


What do you think?  Is this worth my or someone else's time?
m
---------------------- Forwarded by Mike McConnell/HOU/ECT on 11/30/2000
01:27 AM ---------------------------

"Wright, April" <awright@ceri.ca> on 11/29/2000 03:28:09 PM
To: mike.mcconnell@enron.com
cc: cathy.phillips@enron.com
Subject: Petrochemical Conference

June 10, 11 ,12 the Canadian Energy Research Institute will host a
petrochemical industry conference in a mountain resort 60 miles from Calgary.
Our steering committee (Dow Nova, Williams, Shell chemicals, Canadian Pacific
Railway, BP) has suggested that we ask you to address delegates on Enron's
leadership role in e-business. I am making initial contact to explore this
possibility, and to ask if is possible for you to recommend an alternative
person within Enron, as I have lately learned you have changed positions.
This is a high level conference for industry decision makers, which will give
you an idea for this presentation: not necessarily the IT approach, more of a
business strategy approach. I look forward to hearing from? you.

Best Regards.
April Wright


As Final Exams Begin, Power Is a Big Question
The New York Times, 05/13/01

British Telecom
The Times of London, 05/12/01

Houston needs to think small about future technology
Houston Chronicle, 05/13/01

Panel plots new course for area's future / Education, economics, quality of
life top group's list of needed improvements
Houston Chronicle, 05/13/01

MSEB not to pick up 15 pc in DPC after phase II completion
Press Trust of India Limited, 05/13/01

Enron plans to pull out of Gulf gas project: MEED
Agence France-Presse, 05/13/01

SMALL BUSINESS / Pleasure cruisin' / Yacht fleet owner offers customers what
amounts to limo service on the lake
Houston Chronicle, 05/13/01

More power to reform agenda
The Economic Times, 05/13/01

India Power Min: New Power Deal With Enron Unit Possible
Dow Jones International News, 05/12/01

India: Talks begin on Dabhol issue
Business Line (The Hindu), 05/12/01

India to allow 3rd party sale if DPC, MSEB jointly approach
Press Trust of India Limited, 05/12/01

DEFAZIO CALLS FOR STATE TO BUY PGE TO PROTECT RATES
Portland Oregonian, 05/12/01

Congressman suggests state buy PGE
Associated Press Newswires, 05/11/01

National Desk; Section 1
As Final Exams Begin, Power Is a Big Question
By JODI WILGOREN

05/13/2001
The New York Times
Page 16, Column 4
c. 2001 New York Times Company

For final exams, prepared students pack extra pens, calculators, bottled
water, granola bars. And, at the University of California's Berkeley campus
this year, a flashlight.
As state officials and utilities struggle to maintain the power supply during
California's continuing energy shortage, administrators and professors at the
31,000-student campus are planning for the possibility that rolling blackouts
may disrupt exams, which began on Friday and run through next Saturday.
''People here are used to interruptions,'' Sara Abbas, 21, a senior
communications major, said with a shrug as she studied in a cafe near campus.
''People walking in, people running around buck naked and whatnot. People
have cut the power lines. They just reschedule.''
In an e-mail message sent Wednesday, the executive vice chancellor, Paul R.
Gray, advised instructors to use ''individual discretion to decide the
disposition of their examinations once the exam has started.'' Among the
options: delay the test until the lights return; postpone it until a
Saturday; grade the incomplete test; or cancel the exam altogether.
Professors are also encouraged to check a Web site to see if their exam rooms
have windows. ''In some classrooms,'' Mr. Gray noted, ''students may have
sufficient natural light.''
The rolling blackouts could hit most of the campuses of the University of
California and California State University. The two systems are embroiled in
a legal dispute with Enron Energy Services, a Houston-based company that, in
February, cut short a four-year contract to provide electricity directly to
the universities. For now, the two systems -- among the largest energy
consumers in the state -- are being supplied by Pacific Gas and Electric and
Southern California Edison.
Though several medical centers and the Davis, Los Angeles and Riverside
campuses of the University of California system are exempt from the
blackouts, the rest of the campuses have been put on alert.
At Berkeley, the warning from Mr. Gray only heightened pre-exam stress
levels.
''Stopping in the middle of a final would be detrimental to my grade because
I save the hardest questions until the end,'' said Heidi West, 20, a
sophomore majoring in political science.
Aaron Chung, a senior studying cognitive science, said it would be unfair to
grade half-finished exams because he often circled answers instinctively,
planning to return later with more care. ''The only thing I don't have a
problem with is if the professors give everyone A's,'' Mr. Chung, 23, said.
''You have to be under a lot of duress for that to happen.''
Gary L. Firestone, a biology professor, said he would move his 500-member
class out into the sunshine and tell students to spread their blue books on
the grass. But Jeff Good, a graduate student who teaches Introduction to
Syntax and Semantics, said he would probably cancel the exam because the
final counts for only 20 percent of the grade.
That is what Michelle Chen, a junior linguistics major in Mr. Good's class,
is hoping for.
''I would love a blackout,'' Ms. Chen said. ''I'm going to turn on my
air-conditioner. My toaster, too.''

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

Business
British Telecom
Patience Wheatcroft

05/12/2001
The Times of London
News International
Final 4
55
(Copyright Times Newspapers Ltd, 2001)

BRITISH TELECOM has inflicted enough damage on itself in the past year. But
others are still lining up to put the boot in. Hours after the company
announced a Pounds 5.9 billion rights issue and the separation of cash-hungry
BT Wireless, Moody's Investors Service lowered BT's credit rating. This
thumbs-down will cost BT an extra Pounds 35 million a year on existing loans
as well as making future working capital more expensive.
The timing is odd. One of the two other main agencies presented with the same
BT proposals maintained its rating and the other edged it down so little that
change-of-rating clauses were not triggered. In the meantime, the market
prices of BT debt have been rising. The Enron Cost of Credit, which measures
the overall risk premium on BT borrowing, has halved since mid February. Such
costly inconsistencies must focus more critical attention on the agencies,
whose power has grown out of proportion to their accountability.
Moody's verdict is, however, peanuts compared with the cost to BT of the
whims of Stephen Byers and the UK competition authorities. Moody's will no
doubt be aghast to learn that Yell could be worth Pounds 1 billion less as a
result.
In 1996 the Monopolies and Mergers Commission found that BT's Yellow Pages
had an 85 per cent monopoly of its market and made it sign undertakings to
cut prices by 2 per cent a year in real terms. The Office of Fair Trading has
reviewed this report; predictably, it has found that the enforced price cuts
have kept competition down and kept Yell's market share up.
The reasoning behind OFT advice that annual real price cuts should be doubled
is closed to scrutiny until Mr Byers has a new BT undertaking. But it appears
to argue that the market is still a monopoly, so Yell must be charging too
much, so prices should fall further.
The result, according to those formerly eager to buy Yell, is that a growth
business has been turned into a stagnant one, losing all momentum. This
sounds typical of the dead hand of UK regulation. It must strengthen the
resolve of BT's new leaders to remodel what the authorities so hate to the
greater advantage of shareholders.

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

OUTLOOK
Outlook
Houston needs to think small about future technology
WILLIAM DYLAN POWELL

05/13/2001
Houston Chronicle
2 STAR
4
(Copyright 2001)

OK, it's test time - sort of like a breakfast-time Rorschach test for Outlook
readers. Here we go: What's the first thing that comes to mind when someone
mentions Houston?
Time's up. Your answers may have been energy, medicine or seemingly random
acts of highway closure. But how about something very, very small? While
Houston may not exactly be synonymous with all things tiny, we may want to
start giving more mind share to the world of the miniature. As technology
advances, Houston may owe a great deal to the study of small substances.
Nanotechnology is the study of creating functional structures on a molecular
scale (the prefix "nano" means one billionth, or 10 to the ninth power
numerically). Its theories and practices give scientists the means to
construct useful entities using the smallest known particle of unaltered
matter.
Before your eyes glaze over in a terminology-induced science class flashback,
you should hear some of the possibilities that this technology could afford
residents of the Bayou City and their respective commercial enterprises. The
possibilities give the works of science fiction author Ray Bradbury a run for
their money, and include producing computers the size of viruses or factories
that could fit neatly on your desk. Cancer-destroying robots could roam a
patient's innards like mounted police at a spring break celebration.
Eventually, all diseases and mutations could be eliminated. And all
manufacturing processes would become waste-free, both in terms of the
environment and from a business process standpoint.
Sound like science fiction? Maybe, but truth is rapidly catching up with
fiction. A team of university researchers recently figured out how to make a
functional switch out of a single organic molecule. Discoveries such as these
have spawned several branch fields of study including nanobiotics, NEMS
(nanoelectromechanical systems) and nanomedicine.
This technology would surely change the world. But it would especially affect
Houston. Applications for nanotechnology are a great fit for Houston's
economic landscape. The chemical industry already has begun conducting
research in small-sizing certain chemical compounds. And the energy industry,
still our darling, has great interest in the power management possibilities
of nanotech. This could be Houston's next great vehicle for economic
development.
Nay-sayers have expressed caution regarding progress in this field on two
separate fronts. First on how distant potential commercial offerings remain;
and secondly on the potential dangers of combining genetic engineering,
nanotechnology and robotics (for fear of creating self-assembling intelligent
machines as often portrayed in science-fiction movies). But too much
technological progress is happening at once for the possibilities not to whet
the appetites of the entire scientific and business communities.
Already, developmental overtures have been heard from Houston's little sister
to the north. The Dallas-Fort Worth region and its growing base of
semiconductor, light assembly and defense industries are keeping a close eye
on developments in small science. In March, a private-sector company donated
$2.5 million to the University of Texas at Dallas for nanotech research. And
a handful of Dallas-area groups have been quietly conducting research of
their own. This money augments the federal government's nearly half-billion
dollar allotment of 2001 research funding for nanotechnology. Houston has its
own projects, but they receive far less publicity.
Houston's public nanoscience efforts have been centered mostly on Rice
University's grand Turks of academia. Pushing the envelope of academic
excellence as usual, Rice's heavyweight research barons continue to generate
and distribute knowledge on the many potential applications of this exciting
technology. But as successful as they are, they receive far less publicity
and support than other less commercially significant disciplines.
On May 29, leaders from the energy, medical and technology sectors will
converge at the Houston Technology Forum to discuss various technology trends
that will affect Houston's future. Will the keynote speakers (chief
executives from Compaq, the Texas Medical Center and Enron) address the issue
of what Houston is doing to prepare for advances in nanotechnology and its
potential economic impact on the region?
I certainly hope so. Energy, medicine and technology are the terra firma of
Houston's economy. Each of these industry sectors could reap profound
benefits by bringing nanotechnology's concepts to light.
Sure, the fruits of this nascent science are still a long way off. But it's
going to become remarkably important sooner than we think. So while
Houstonians are well known for our love of largeness, it's time to think
small. Let's take a careful evaluation of what this technology could mean to
our city and its economic development.

Drawing

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

A
Panel plots new course for area's future / Education, economics, quality of
life top group's list of needed improvements
MIKE SNYDER
Staff

05/13/2001
Houston Chronicle
4 STAR
33
(Copyright 2001)

A group of prominent business executives, worried that Houston's reputation
as an unpleasant place to live imperils its future, is developing a plan to
transform the city's educational system, urban design and economic base.
The work of the Center for Houston's Future, a nonprofit group affiliated
with the Greater Houston Partnership, reflects growing concern that Houston
must reposition itself as a vibrant, desirable destination if it is to
compete in an economic climate that empowers skilled workers to live wherever
they choose.
Creating such a "livable city," leaders of the effort say, would in turn
enrich the lives of every Houstonian.
"The interests of the business community are fully aligned with the interests
of the community at large," said Eugene H. Vaughan, a money management
executive and board chairman of the Center for Houston's Future.
A report prepared for the organization by a business-based task force
recommends that local leaders challenge long-held assumptions that have
discouraged meaningful land-use planning. It sketches a vision of Houston 20
years from now in which technology and other tools have revolutionized public
education, "livable city centers" have changed the physical landscape and
current civic leaders have groomed a new, more diverse generation of
successors.
The report argues that the business community's traditional leadership role
in Houston's civic affairs should continue. But it suggests the models of
business influence that prevailed in "the old days" should be re-examined.
"Those were the days when oil was king, and Houston was the energy capital of
the world - the days when a handful of `big' leaders, including CEOs of major
corporations, could meet in a room together and decide on the future of
Houston," the report states.
"But times have changed, and there is far less tolerance in Houston's highly
diverse, egalitarian society for a hidden oligarchy to run things, no matter
how benevolent those leaders might be."
The center's board includes top executives of some of Houston's most
successful and influential companies, including Enron Chairman Ken Lay; Ned
Holmes, chairman and CEO of Parkway Investments/Texas Inc.; James Royer,
president and CEO of Turner, Collie & Braden Inc.; William White, president
and CEO of WEDGE Group Inc.; and Jim Kollaer, president and CEO of the
Greater Houston Partnership.
Vaughan said the stature of the board members is an indication that the group
is not likely to generate plans that will simply sit on a shelf.
"They've got so many demands on their time that they're not going to fool
around with something that is ill-conceived," he said.
Rice University sociology professor Stephen Klineberg, one of the experts who
advised the task force that generated the report, agreed that the center's
work could be very influential.
"This is the first time there's been a systematic, coordinated effort on the
part of the business community" to improve Houston's quality of life,
Klineberg said.
The Center for Houston's Future was created in the early 1990s primarily as a
source of research information for the partnership, Houston's premier
business organization. But its role changed about two years ago, Vaughan
said, when Holmes became chairman of the partnership and encouraged the
center to take an aggressive approach to planning for the region's future.
Last summer, the center organized three workshops attended by 36 people
representing a cross section of the business community. These 10-day,
seven-night events, led by professional facilitators and featuring various
guest speakers, produced a report outlining four possible future Houston
scenarios.
James D. Calaway, a member of the center's board, said the details outlined
in the four scenarios are intended to be "illustrative" and are not
necessarily the actions the organization ultimately will recommend. However,
they provide insight into the direction of the group's thinking, he said.
In the first scenario, based on the assumption that local planning and
decision-making proceed much as they have in the past, the workshop
participants speculate that tension between the city and suburbs increases to
the point that the Legislature strips Houston of its annexation power.
Development is greatly restricted because of failure to meet clean-air
standards, property values plummet and the City Council must pass a large tax
rate increase.
Houston becomes a stronghold of low-wage, service-sector employment, and the
gap between rich and poor widens: "For many who live there, it's simply a
large urban sprawl, adrift in the global economy, or it's a three-year
hardship post on the way to something more desirable."
Scenario two suggests that Houston's leaders transform the educational system
by developing a "Teacher Network" that delivers Internet-based educational
resources into every classroom and teacher's home in the region. This in turn
leads to a communitywide electronic educational network, with every home in
the Houston area connected to the Internet by 2007.
These efforts, combined with universal, full-day preschool care, lead to
state-of-the-art local schools by 2010, with almost universal high school
graduation rates and 75 percent of these graduates going on to college or
technical training programs.
The report does not estimate the cost of these measures or identify how they
would be funded. Potential sources, Calaway said, include local, state and
federal tax money, private grants and reallocation of funds now being spent
on more traditional educational programs.
In scenario three, local leaders take bold steps to overcome Houston's
reputation for sprawl, dirty air and lack of green space - perceptions that
hamper efforts to attract the talent needed to keep the region economically
competitive.
These leaders develop a vision of Houston based on the creation of "livable
city centers" - major activity centers targeted for redesign and
redevelopment - and the connection of these centers through "personal and
public transport in corridors that delight the eye."
Within the centers, streets are reconstructed to better accommodate
pedestrians. Financial incentives prompt developers to provide a wide range
of housing styles, including substantial affordable housing. The Main Street
light rail line is built, succeeds spectacularly and is followed by more rail
lines extending in various directions.
To accomplish these goals, the report states, local leaders must overcome
their "ingrained suspicion of planning," and the City Council must adopt
"new, more prescriptive development standards" within the livable city
centers. Early successes lead to a public referendum authorizing the
expenditure of $8 billion over 20 years to create the "livable city."
Scenario four focuses on making Houston a "crossroads of the world economy."
The city's business leadership becomes broader and more diverse, and it turns
its energy toward diversifying the economy.
The energy industry, adapting to the new economic climate, transforms its
business model and creates new, high-tech enterprises. Space, nanotechnology
and biotechnology research help launch hundreds of companies that quickly
become significant global players.
The workshop participants concluded that Houston must accomplish key elements
of scenarios two, three and four if it is to become a "true world-class city
in which to live and conduct business."
Calaway and Vaughan said the next steps will include designating committees
to develop specific recommendations in each of the broad areas studied, such
as education and quality of life. Working groups then will be established to
begin translating these ideas into policy, they said.
Although the center is focused on the long term, they said, it must produce
results as soon as possible.
"If we do not get serious about this, 20 years from now we're going to be a
low-wage environment, putting people in very, very dead- end jobs," Calaway
said during a recent presentation on the group's work to members of the
nonprofit Gulf Coast Institute.
"We've got to get the quality of life right, but we've also got to make sure
that we educate these kids for our future."

Mugs: 1. Ken Lay (p. 45); 2. Ned Holmes (p. 45); 3. James Royer (p. 45); 4.
Jim Kollaer (p. 45)

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

MSEB not to pick up 15 pc in DPC after phase II completion

05/13/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Mumbai, May 13 (PTI) Maharashtra State Electricity Board (MSEB) has decided
not to pick up the remaining 15 per cent equity in Enron-promoted Dabhol
Power Company (DPC), which it was earlier supposed to, after the complete
construction of the entire USD three billion power project in Dabhol.
"It is true that we had promised to take the 15 per cent, translating into
infusion of around USD 65 million and given the serious financial stress the
board is facing, it is not going to be possible for us to participate in the
phase II of the project", a senior MSEB official told PTI here Sunday.
Currently, Enron International owns 65 per cent, MSEB -15 per cent, General
Electric and Bechtel 10 per cent each.
However, MSEB is yet to send an official intimation to DPC in this regard,
the official said adding the board would inform the company soon after the
completion of the project.
DPC's USD 1.87 billion phase II would be fired on June seven, 2001, thus
marking completion of the 2,184 MW project.
DPC, which received a Foreign Investment and Promotion Board clearance in
last December for its 10.83 billion foreign Direct Investment, has not been
able to scout an alternative fifth partner for MSEB's equity.
The company had decided to off load the 15 per cent of its current holding of
65 per cent to a new entity, as according to the company's global
debt-consolidation it needed to maintain its stake at 50 per cent in DPC
after its completion.
In order to avoid any delay, Enron had agreed to meet up with the equity
shortfall as per the former's agreement with its lenders.
(THROUGH ASIA PULSE) 13-05 2001

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

Enron plans to pull out of Gulf gas project: MEED

05/13/2001
Agence France-Presse
(Copyright 2001)

DUBAI, May 13 (AFP) - Enron Corp. of the United States plans to pull out of a
project to deliver Qatari gas to the United Arab Emirates (UAE), Middle East
Economic Digest (MEED) reported on Sunday.
Enron is a partner in the Dolphin Energy project along with the
Franco-Belgian company TotalFinaElf and the Abu Dhabi government- owned UAE
Offsets Group (UOG). Its role is to build a pipeline under the Gulf between
Qatar and Abu Dhabi.
"The profit margin for Enron would be low. At present, the Dolphin project is
being developed primarily as an upstream venture," an industry source told
MEED.
Another industry publication, Middle East Economic Survey (MEES), reported
last week that the two other partners regarded Enron's estimated cost for
constructing and laying the 350-kilometre (220- mile) undersea pipeline as
too high.
"There is talk of new partners," a source with TotalFinaElf, whose role is to
develop a block in Qatar's giant North Field, told MEED. "But whatever
happens, we are staying."
On March 14, Qatar and the UAE inked a 25-year term sheet agreement on the
project, setting the volume at two billion cubic feet (20 million cubic
metres) of natural gas per day.
Differences over pricing and volumes had put back the signing of the
agreement for two years after a first statement of principle for Dolphin was
inked by Qatar and UOG in March 1999.
According to MEES, Qatar Petroleum and UOG have finally agreed on a gas price
formula of 1.3 dollars per million BTU (British thermal units) following
"high-level political intervention from Qatar and Abu Dhabi".
TotalFinaElf and Enron are strategic partners in the multi- billion-dollar
project, each holding a 24.5 percent share in Dolphin Energy Limited (DEL),
with UOG retaining a controlling 51 percent stake.
From Abu Dhabi, the gas is to be distributed inside the emirate and on to
Dubai and Oman. An extension to Pakistan through an undersea pipeline is also
planned, as part of a regional gas network.
hc/rp

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

BUSINESS
SMALL BUSINESS / Pleasure cruisin' / Yacht fleet owner offers customers what
amounts to limo service on the lake
CAROL RUST
Special to the Chronicle

05/13/2001
Houston Chronicle
2 STAR
1
(Copyright 2001)

KEMAH - Tom Lober trundled home from second grade with a three- tiered wooden
box he'd made at school.
"This is my houseboat," he told his mother 35 years ago. "When I grow up, I'm
going to live on a boat."
His practical-minded mother put the "boat" to work as a patio plant stand
until it finally rotted from a decade of exposure.
On a recent evening, Lober stood on the bow of one of his four charter
yachts, enjoying the sunset-tinted water and a mild breeze as the 100-foot
luxury boat moved quietly from Clear Lake into Galveston Bay.
"This is what I love," Lober said, scanning a horizon dotted with distant
boats. "The others are here to party, but this is it for me."
The founder and owner of Star Fleet Entertainment Yachts spoke calmly against
the din of a mini-Mardi Gras heating up on middeck, where bead-clad
executives were letting their hair down at their annual appreciation party
for a major customer. A Mae West look- alike hired for the event meandered
among them, handing out cigars and sultry comments in her mermaid-cut white
dress studded with faux pearls and a white feather boa twirled about her
neck.
In the eight and one-half years since the 42-year-old Lober started Star
Fleet, he's seen everything from fire-eaters to hula dancers as entertainment
on the hundreds of custom cruises his staff of 70 puts together each year.
Last year, the company booked 400 cruises, which translated into $2.3 million
in gross sales, in events ranging from Gulf Coast versions of company picnics
to a bat mitzvah with a Gilligan's Island theme. One guy recently plunked
down $2,000 to charter an entire boat for a date.
One of Lober's seven captains is, handily, a licensed minister for weddings.
Star Fleet staff recently added squirt guns, Hula Hoops and limbo sticks as
regular on-board equipment.
"It's a bizarre business," Lober said. "Nothing seems unusual anymore."
Nearly all Star Fleet's cruises include dinner. His kitchen staff does the
prep work for hors d'oeuvres and main courses on land near the marina,
transferring them to a generous galley on board before customers arrive. The
galley crew does the final cooking.
Star Fleet Entertainment Yachts is one of about a dozen businesses of its
size in the country that provides strictly private charter yacht cruises, but
Lober has hundreds of competitors locally.
"I'm competing with caterers, hotels, restaurants - anyone in the eating,
drinking and party business," he said. "People say there are two things
you're never supposed to own: a boat and a restaurant. I put a restaurant on
a boat."
Last month, he launched what he believes is the first-ever water limousine, a
30-foot yacht complete with wet bar, sound system, leather couches, TV and
VCR that takes small groups to waterfront restaurants and bars, just like a
limo does on land.
Sometimes, his clients hop off and dine at one of the restaurants on the
Kemah Boardwalk while the limo is anchored beside it. In other cases, waiters
deliver the food to the boat, equipped with removable dining tables that can
seat 14, and the customers dine while cruising Clear Lake.
Lober was a natural shoo-in for a career on the water. His father owned a
supply boat business in Houston and a fleet of shrimp boats based in
Trinidad. He eventually became president of his dad's supply boat business
after getting a master's degree in maritime management from Texas A&M
Maritime Academy in Galveston in 1981.
But he still had that idea from second grade that grew from living on a boat
to providing exclusive entertainment on the water.
In 1986, he joined the Passenger Vessel Association, a national group of
vessel owners that provides public or private cruises for gaming, ecotourism
or other entertainment. He attended seminars, talked to boat owners,
researched trends in the industry and tried to figure out what it would take
to float his idea.
Lober drew up plans for a boat big enough to accommodate up to 150
passengers, but with a three-foot draft to keep from running aground in the
notoriously shallow Clear Lake and Galveston Bay.
"I wanted to be able to take that boat anywhere on the lake," which is five
feet deep in places, he said.
Bankers were skeptical when he approached them for a loan.
"This was a new business in Houston that had never been done before," Lober
said. "They had no confidence.
"I finally got to the point where I'd just take my business plan into a bank
and say, `I know I'm not going to get a loan - just look at what I've got and
tell me what it needs,' " he said.
Even without a loan in place, Lober began hands-on research. During the week,
he still worked at his father's supply boat business, but flew to Fort
Lauderdale, Fla., on weekends to work as a deck hand and food server for a
charter yacht company to learn the business from the bottom up.
After a year of loan seeking, he found a lender at the Passenger Vessel
Association's annual meeting. Caterpillar Finance agreed to lend him 60
percent of the $950,000 in construction costs if he installed Caterpillar
engines on the boat.
Construction took a year, during which Lober continued his research, serving
drinks on weekends aboard a charter boat on the Detroit River and Lake St.
Clair.
Finally, Lober launched Star Gazer in October 1993.
The maritime academy might have taught him how to navigate by the stars, but
it didn't prepare him for marketing.
"I didn't know what I was doing," Lober said. "The first year, I spent
$125,000 in marketing blunders," including a $50,000 mass mail campaign that
he called "a total flop."
Marketing was twice as expensive as he thought it would be and took twice as
long for potential customers to understand the concept he was trying to sell,
he said. Meanwhile, his boat sat in the stall for up to three weeks at a
time.
Lober had a $30,000 monthly overhead in debt service, office rental,
insurance and slip fees, and "I still had to pay it if the boat didn't leave
once," he said.
Panicked, he joined the Greater Houston Partnership to seek out ideas, and he
got one: target marketing.
He and his small staff scrutinized every detail about the people who used the
boat and set out to find more like them. He set his sights on the corporate
client, which makes up about 70 percent of his business today. Corporate
customers include Enron, Exxon Mobil, Shell, Continental Airlines and Katy
Mills mall.
"We have had our party with Star Fleet every year for five years," said Ravi
Lal, director of ethylene division of Technip, based in San Dimas, Calif.
"The first year, I wanted to do something special that I hadn't seen before.
Everybody likes it, and everybody wants to come back."
Business slowly began to build, and word spread. Lober added the 90-foot Star
Cruiser in 1997, the 74-foot Star Spirit in 1999, and brought in a fourth,
the Lake Limo, last month. Also in 1999, he bought 6 acres with 600 feet of
waterfront and built Star Fleet Marina. While part of that land is still
undeveloped, it eventually will become a parking lot for 500 cars when Lober
adds a fifth large yacht, Star Ship, sometime in the future.
"We plan to add Star Ship when we're turning down enough business from the
other boats," he said.
After more than eight years, Lober has yet to take home a salary, putting
everything back into the business.
The more he puts back, the more business he can accommodate.
But Lober and his staff still keep close tabs on their customers.
"We track everything - which individuals, what type of event, whether they
prefer sit-down dinners, how they heard about us - you name it," he said.
It's a lot of details. He knows that blackout shades, pull-down projector
screens and multiple microphone jacks are needed for presentations, and that
some clients like to be picked up at one of the Galveston hotels or other
locations on the Houston Ship Channel.
If a customer hires a deejay, a crewmember provides padding to put underneath
the CD player on the bandstand because dancing on the steel dance floor
causes the player to bounce.
Lober's three full-time cruise consultants handle charter buses to and from
the marina, limos, menus, photographers and decorations. They work with Star
Fleet's in-house florist and theme designer to provide floral arrangements
for sit-down dinners and Hawaiian leis of fresh orchids and hibiscus for a
major retailer's party, for which the florist helped transform the boat's
stanchions into palm trees.
And consultants have their own suggestions, such as bestowing captains' hats
instead of the usual corsages to employees with top sales who were being
honored at a recent floating awards banquet.
Lober believes his company's custom service brings customers back.
"They handle all the details once, and after customers go on that first
cruise, they're sold on the concept," he said. "People love something
different. We provide a different kind of party. If they do it once, they
usually want to do it again."
But cruises aren't limited to parties, Lober said. Customers have chartered
boats for banquets, retreats, new product introductions, incentive awards
dinners and for scattering loved ones' ashes.
About 60 percent of Star Fleet's business is repeat and referral. The recent
corporate party featuring the Mae West look-alike was the fifth the company
has chosen to have with Star Fleet.
Part of Lober's initial marketing problem - which continues today - is that
Houstonians just don't realize how close to the water they are.
"It's not like Fort Lauderdale, where water is part of the landscape," he
said. "In Houston, there's no high-visibility location to see the water, just
one spot on Loop 610 that overlooks the Port of Houston. Even in Clear Lake,
there are only one or two places when you drive around the lake that you can
actually see the water. We don't have a San Francisco Bay or New York Harbor.
So people have to be reminded."
He also has to deal with the misconception that only the very rich can afford
cruises, Lober said.
"Some people think they can't afford a luxury yacht, but when they compare
our complete package with upscale restaurants, hotel banquet facilities,
country clubs and wedding manors, we are quite competitive," he said. "And
our food is gourmet quality. Just like a five-star hotel, we never cut
corners."
Event cruises start at $40 per guest including food, bar, entertainment, tax
and gratuities.
Lober depends heavily on customer surveys to develop the service he and his
crew provide. And customers informally give Star Fleet staff new ideas with
some of the extras they bring aboard, such as the squirt guns, Mardi Gras
beads, Hula Hoops and limbo sticks.
"We learn a lot from our customers," he said. "We see what they do, take the
best and give it back to them."
Because customer surveys indicate that about 20 percent of Star Fleet's
business comes from being seen on the water, Lober and his captains make
their crafts as visible as possible whenever they take them out. The real
opportunity for hot-dogging comes when a customer charters two or three
boats, and they raft up to become the Star Fleet flotilla, with customers
moving from one boat to another. A three-boat charter can handle up to 375
guests.
But one boat can still do a lot of advertising.
At the recent corporate party, Mae West joined the other revelers who were
slinging Mardi Gras beads at al fresco diners as Capt. Tony DeFore edged Star
Gazer close to the Kemah waterfront. They may not have known it, but they
were doing a little of Lober's public relations work for him.
As the boat pulled back into the Star Fleet Marina, Lober pointed out a barge
under construction. When it is finished - by the end of the year, he hopes -
the bottom floor will be a galley for food preparation, the second the Star
Fleet office and the third floor an 1,800-square-foot apartment.
It will kind of resemble that three-tiered wooden box he brought home from
school years ago, Lober says.
And he's going to live at the top.

Photos: 1-2. Left: Star Gazer, first of the Star Fleet Entertainment Yachts,
launched in 1993, sets sail for Southshore Harbor earlier this month. From
left to right are bartender Bridget Byous, server Leona Clark, Cruise
Director Edith Mitchell and President Tom Lober. Below: Cruise Director Edith
Mitchell unties the Star Gazer's bow line (color); 3. Star Fleet
Entertainment yachts President Tom Lober watches server Leona Clark polish
silverware for a buffet dinner aboard the Star Gazer. Last year, the company
booked more than 400 cruises, generating $2.3 million (color, p. 4)

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

More power to reform agenda
Soma Banerjee

05/13/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

THE electricity industry is often identified as the black sheep in the
infrastructure sector which has continued to lag behind despite an overdose
of government support.
Despite being one of the earlier industries to be opened up, private
investments in this sector have failed to take off.
Worse, the only sizeable project which was something to write home about
Enrons Dabhol Power plant in Maharashtra is currently a under cloud with its
promoters involved in a legal battle with the state entity and its sole
consumer for non-payment of bills. Policy makers and investors in the energy
sector are still groping to find ways and means to improve the performance of
this key industry.
Although private investments were expected to come in a big way in creating
new capacities, policy uncertainties and above all the poor financial health
of the consumer, in most cases the SEBs, have posed major problems for power
plant developers.
After about ten years of liberalisation, the private sector has to its credit
only about 5000 MW and according to projections by experts investments in
greenfield projects are unlikely before four to five years.
The factors that have been taken into consideration in the current projection
are almost inbuilt into the system. For one, there is a general agreement
that stressing on generation alone without doing much on the distribution
front has eroded the financial health of most SEBs.
``Private power developers cannot be expected to invest in projects till they
are assured that they will be paid for the energy produced, experts say.
But like the recent Montek Singh Ahluwalia report maintains, such reforms
cannot be done overnight and will require minimum five to seven years before
they break even.
The sector has already seen major exits like Cogentrix and Powergen and if
the current trends are anything to go by it would not be long before Enron
too says Sayonara India, claim sources in the power industry.
IPPAI, an association for private power investments, feels that the flip-flop
by the government as far as power policies are concerned have made it
difficult for investors to take decisions.
``Take this as an example at one time there were more than 200 MoUs signed up
for private power projects, the government provided counter guarantees for
eight projects, of which only three have taken off. Of this the Enron project
is already facing problems of nonpayment, says a senior source.
According to estimates drawn up by financial institutions like Power Finance
Corporation an organisation responsible for monitoring the financial health
of the SEBs and helping them with their reform programmes almost all the SEBs
have registered a negative turnover. Which is why the financing or
escrowability of SEBs across the country has been reduced to zero.
According to Union power minister Suresh Prabhu, the states are now
responsive to changes and reforms and the recent drive initiated by the
Centre to work with the state governments was expected to yield results.
But this sector has seen far too many committees which have failed to yield
much hope and it is only sheer determination of SEBs and political will that
can help this backbencher.

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

India Power Min: New Power Deal With Enron Unit Possible
By Himendra Kumar
Of DOW JONES NEWSWIRES

05/12/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- India is hopeful the Maharashtra State Electricity
Board's power purchase agreement with the U.S. energy company Enron Corp.'s
(ENE) Indian unit Dabhol Power Co. can be renegotiated and the DPC's dispute
over payments be settled, the country's federal Power Minister Suresh Prabhu
said.
In a weekend interview with Dow Jones Newswires, Prabhu said the very fact
that the DPC had come to the negotiating table for discussions on its power
price was an indication that Enron was keen to save its India project.
A special panel, set up by the Maharashtra state government, met with
representatives of the DPC, for the first time Friday and agreed to another
meeting May 23.
Friday's meeting lasted for more than two hours.
"I am of the view that a negotiated settlement is possible since the first
meeting of DPC with the Maharahtra state expert panel went off well. There
has been a positive response both from the DPC and the MSEB after the
meeting. The central government will also reciprocate by participating in a
meaningful dialogue. The next meeting will really decide on how it all goes,"
Prabhu said.
Earlier this week, in an e-mail to Dow Jones Newswires from Houston, Enron
Vice President John Ambler however, said, "While we have constantly
maintained that we are open to continuing a dialogue towards resolving
issues, this (Friday) meeting should in no manner be construed as an open
offer from DPC to renegotiate the terms of the contract."
The Maharashtra state government contends that the price paid for electricity
from the Dabhol power plant, India's biggest-ever foreign investment at $2.9
billion, is "unaffordable" and seeks to renegotiate tariffs.
A recent committee appointed by the government, the Godbole panel,
recommended that the power purchase agreement be renegotiated.
Dabhol has come under fire because of the relatively high cost of its power.
Critics object to Dabhol charging 7.1 rupees ($1=INR46.8825) a kilowatt-hour
for its power, compared with INR1.5/kwh charged by other suppliers.
The 2,184-megawatt DPC project in Maharashtra has been mired in financial
disputes after the Maharashtra State Electricity Board, its main customer,
failed to pay the December 2000 and January bills. The Godbole panel is
working toward lowering the DPC's power tariff and allowing the sale of
excess power to the federal government or its utilities. A restructuring of
the DPC's stakeholding may also be on the agenda.
The Maharashtra government has asked the committee to try to negotiate a
revised agreement within a month. The DPC currently operates a 740-megawatt
naphtha plant contributing about 0.7% to India's installed capacity. Enron
has maintained that work will be completed by the year-end in the second
phase of the Dabhol project that will add 1,444 MW to its capacity. The plant
will switch from naphtha to liquefied natural gas as a fuel source in 2002.
Texas-based Enron has a 65% stake in the DPC and is the project's largest
shareholder. Other shareholders include the MSEB with 15%, and General
Electric Co. (GE) and Bechtel Enterprises (X.BTL) with 10% each.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9427;
himendra.kumar@dowjones.com

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

India: Talks begin on Dabhol issue

05/12/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, May 11. OFFICIALS of Enron India today met the expert committee
headed by Dr Madhav Godbole to discuss the fate of Enron's Dabhol Power
Company.
Mr A.V. Gokak, Union Government representative, who was appointed only last
night, could not attend the meeting due to the short notice.
Lenders to the project who were to attend the meeting stayed away.
Instead, Mr A.G. Karkhanis, former Executive Director, Industrial Development
Bank of India, attended as observer on behalf of foreign and Indian lenders,
Mr Vinay Mohan Lal, Energy Secretary, told reporters here after the meeting.
When asked about Enron's reluctance to renegotiate, Mr Lal said: "They are
coming again on May 23. What does that mean?"
Though none of those present at the meeting was willing to give more details,
senior State Government officials had earlier told Business Line that the
State would be willing to discuss phase II only after a decision on the
rebate slapped on DPC.
"Basically our strategy will be to bring the Rs 401- crore rebate payable by
DPC to the centre-stage," the official said. "The company has not mentioned a
single word about the rebate in any of their letters to either the MSEB or
the State. And we, on the other hand, have discussed anything but the rebate
in our letters to DPC," he said.
Mr Wade Cline, Managing Director, Enron India, did not comment on whether the
company would issue the preliminary termination notice.
The Maharashtra State Electricity Board (MSEB) Chairman, Mr Vinay Bansal, and
Mr Lal had last evening briefed the Democratic Front constituents about their
stand vis-a-vis Enron.
They are understood to have told the political brass of the State that MSEB
does not need the second phase of the Dabhol power project.
They categorically said MSEB would not buy power from DPC-phase II, it is
learnt.
MSEB also reiterated its stand that DPC should adjust the dues owed by it
against the non-performance penalty.
Senior MSEB officials said the board had replied to the arbitration notice
issued by DPC and made its position clear. The board is of the opinion that
DPC should adjust Rs 213 crore - the December and January bills - against the
Rs 401 crore penalty for performance default.
The State Government also has backed the MSEB in its replies to the three
arbitration notices served on it. It has said that since MSEB does not accept
the charges - non-compliance with the power purchase agreement (PPA) -
leveled against it, the State is not bound to pay.
The Centre too is understood to have backed MSEB in its preliminary reply to
the conciliation notice from DPC.
Today's meeting was attended by Mr Cline, Mr Neil McGregor, President, DPC,
Mr Mukesh Tyagi, Vice-President, DPC, and Mr Sanjeev Khandekar, VP, DPC, and
Mr Mohan Gurunath, Chief Financial Officer, DPC.
Among the renegotiation panel members, Mr Deepak Parekh, Mr E A S Sarma and
Mr Kirit Parikh were also unable to attend. The next meeting is scheduled on
May 23, Mr Lal said.
Gokak nominated to panel: The Government has nominated former fertiliser and
telecom secretary, Mr A.V. Gokak, to the arbitration committee involving
Dabhol Power Company (DPC).
The Power Ministry had earlier mooted the additional solicitor general, Mr
Harish Salve's candidature for the job.
The conciliation process, however, has been hanging fire as the third
conciliator is yet to be appointed. Dabhol Power Company had written to the
Centre last month seeking six names for selection of a mutually acceptable
conciliator to kick- start the conciliation process.
DPC's letter to the Finance Ministry was seen in the context of the
substantial delay between the initiation of the conciliation process three
weeks ago and the finalisation of the conciliators. Soon after the
conciliation process was initiated, DPC decided to invoke political force
majeure and moved in for arbitration - a prelude to termination of the
project.
Our Bureau

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

India to allow 3rd party sale if DPC, MSEB jointly approach

05/12/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Mumbai, May 12 (PTI) The Federal Government will allow sale of power to a
"willing buyer" if the Enron-promoted Dabhol Power Company (DPC) and
Maharashtra State Electricity Board (MSEB) will together approach the power
ministry with a concrete proposal for their 2,184 mw project in Dabhol.
"I will give whatever status they want, including a mega project one, if DPC
and MSEB jointly approach the Centre (Federal Government) for the same",
Indian Power Minister Suresh Prabhu told reporters here Saturday.
He said the Indian Government would extend its cooperation to the Maharashtra
government (western state) "in every way" to resolve the imbroglio between
MSEB and DPC.
When pointed out that both the state government and DPC were of the opinion
that federal power utility National Thermal Power Corporation (NTPC) should
buy the power, Prabhu said NTPC cannot do so as it was power selling entity
and not buying one.
"There is no question of NTPC buying power from the project since long term
power purchase agreements (PPAs) have been signed by NTPC with the buying
states", he reiterated.
Prabhu said the Indian Government would also try and find out potential
buyers of DPC power "if other states were willing to buy the same".
Earlier in his meeting with state chief minister Vilasrao Deshmukh, the
latter had suggested that NTPC sell the excess power over and above the
300-400 MW needed for the state from the 740 MW phase-I and soon to be
commissioned phase-II of 1,444 MW, to other needy states.
(THROUGH ASIA PULSE) 12-05 2001

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

LOCAL STORIES
DEFAZIO CALLS FOR STATE TO BUY PGE TO PROTECT RATES
DAVE HOGAN AND JEFF MAPES of the Oregonian Staff

05/12/2001
Portland Oregonian
SUNRISE
C01
(Copyright (c) The Oregonian 2001)

Summary: The suggestion generates little enthusiasm and critics suspect it's
motivated by the lawmaker's possible race for governor
"I believe this is an extraordinary opportunity and a way that we can
insulate almost a quarter of our population and a core of Oregon's business
community from the craziness that is going on in the energy wholesale
markets." -- U.S. REP. PETER DeFAZIO D-ORE.
The state of Oregon should consider buying investor-owned Portland General
Electric to help protect Oregonians from gyrations in the electricity market,
U.S. Rep. Peter DeFazio declared Friday.
Gov. John Kitzhaber reacted politely and said he'll explore the idea, but
others said it's a long shot because of political, financial and timing
factors.
Critics said the proposal appeared aimed more at attracting attention to
DeFazio's potential candidacy for governor than anything else.
Several companies already are considering buying the utility, but DeFazio
said state ownership could help keep PGE customers' electricity rates low and
generate profits that could help the rest of Oregon.
"I believe this is an extraordinary opportunity and a way that we can
insulate almost a quarter of our population and a core of Oregon's business
community from the craziness that is going on in the energy wholesale
markets," said DeFazio, D-Ore.
PGE serves about 725,000 retail customers, mostly in the Portland area, and
is owned by Houston-based Enron Corp. PGE's sale to Nevada's Sierra Pacific
Resources for $3.1 billion officially fell apart last month. Other possible
buyers include Northwest Natural and ScottishPower, which owns PacifiCorp.
While Enron and PGE officials declined to comment Friday, legislative leaders
showed no particular enthusiasm for DeFazio's idea.
"I appreciate his efforts, but I don't think it's the right idea at this
time," said House Speaker Mark Simmons, R-Elgin. He said the state already
has a package of bills aimed at spurring more energy production and
conservation.
Senate President Gene Derfler, R-Salem, said he'd be willing to sit down and
talk with DeFazio. "I would not just shut the door," he said, but he doesn't
plan to devote much work to the proposal. Derfler questioned whether state
government could run a utility as efficiently as a business.
DeFazio said a PGE purchase would offer several benefits. State ownership
would put control of PGE in local hands instead of those of a faraway
corporation such as ScottishPower. For PGE customers, state ownership would
provide some protection and stability in electricity rates. It also would be
a good investment that would pay for itself and perhaps pump revenue back
into the state's coffers.
The purchase could be financed with tax-exempt bonds sold by the state.
DeFazio said state Treasurer Randall Edwards had told him the idea was "in
the realm of possibility."
DeFazio's idea is an intriguing one and could provide some benefits, said Bob
Jenks, executive director of the Citizens' Utility Board, which represents
customers of investor-owned utilities such as PGE.
Jenks said the primary benefit would be that, if the state bought PGE, the
utility would be able to buy lower-priced electricity from the Bonneville
Power Administration, which is required to sell power at lower rates to
publicly owned utilities. However, a publicly owned PGE wouldn't be able to
buy the lower-priced BPA power for about five years because of electricity
sales contracts that already are in place.
And even if PGE were able to buy lower-priced BPA power, that wouldn't
necessarily translate to lower electricity bills for PGE customers, Jenks
said. In addition, he said it could increase rates for other publicly owned
utilities because the BPA has a shortage of cheap hydropower.
The state Public Utility Commission would have to approve any sale of PGE,
but outgoing PUC Chairman Ron Eachus criticized DeFazio's proposal, saying it
had the potential to increase rates both for PGE customers and for publicly
owned utilities. He also said it seemed designed to get political attention
for DeFazio's potential candidacy.
"I think we're in the political season where people are proposing grandiose
schemes that aren't very well thought out, and this seems to be one of
those," Eachus said.
DeFazio conceded that a high-profile proposal focused on a Portland-area
issue such as the ownership of PGE would be a good way for a candidate to
build support for a run for governor, but he said that had nothing to do with
his plan.
You can reach Dave Hogan at 503-221-8531 or by e-mail at
davehogan@news.oregonian.com.

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

Congressman suggests state buy PGE
By CHARLES E. BEGGS
Associated Press Writer

05/11/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SALEM, Ore. (AP) - Congressman Peter DeFazio on Friday proposed that the
state buy Portland General Electric as a way to hold down power costs.
The Democrat outlined his plan after presenting it to Gov. John Kitzhaber,
who said he would ask his energy advisers to analyze it.
PGE is Oregon's biggest electric utility, serving more than 700,000
customers. DeFazio said a state purchase of the company could insulate many
Oregonians from "the craziness in power markets."
DeFazio said the state could buy the company by issuing revenue bonds and
have the utility operate as a public power entity.
He said the purchase would give the state a diverse mix of transmission
rights along with hydropower, gas, coal and renewable energy sources.
"While I have not exhaustively researched the proposal, it does appear to be
feasible," said DeFazio, an opponent of electric deregulation.
Enron Corp., the Texas-based owner of PGE, is trying to sell the utility.
Sierra Pacific last month abandoned its plan to buy PGE for $3.1 billion,
citing increasing difficulties in the current market and the political
environment in the West.
Kitzhaber said he's not opposed to the idea of the state buying a private
utility, as long as it would benefit consumers.
DeFazio said PGE has been a profitable company, and putting it in public
ownership could give it preference over private utilities for the Bonneville
Power Administration's hydropower.
The congressman's suggestion wasn't welcomed by the Legislature.
"Thanks, but no thanks," said House Speaker Mark Simmons.
"Philosophically, I think it's the wrong approach," he said. "We have a
bipartisan package of bills dealing with the issue."
Among those are his measure to delay partial electric deregulation for large
businesses and a bill to speed up the process for siting temporary generating
plants.
Senate President Gene Derfler didn't reject the idea, but said the
Legislature doesn't have enough time in the current session to take on a job
like a utility purchase.

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


Did you send the fax?  I do not have it?

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


Attached are new draft responses to the Frontera Notices of Force Majeure/
Uncpontrollable Forces, for dispatch today if the your desk deems
appropriate.   Please review and comment.  Also please let me know who would
sign these letters for the desk. I will distribute to each of you hard copies
of Frontera's notices.  -David


I haven't done any feedback on anyone and I don't know how and I have a good excuse. If Sheila teaches me this week I will do it. Tx Rick

 -----Original Message-----
From: 	Cox, Shirley
Sent:	Wednesday, September 12, 2001 5:49 PM
To:	Buy, Rick
Subject:	Performance Evaluations
Importance:	High

Below are the names of employees for whom we have not yet received Mid-Year 2001 Performance Evaluations from you.  Please do these ASAP.  Also, remember that all consolidated feedback on employees will be purged from the system effective 9/15/01.  Thanks.

CARSON, RICHARD L
GORTE, DAVID
HEATHMAN, KAREN K

Shirley Cox
Assistant to Sheila Walton
51721


In case you enjoy looking at this stuff, please see attached.
Date: Thu, 24 May 2001 09:08:49 -0400
From: "Richard Abraham" <rsabraham@tecoenergy.com>
To: "Claude DeMars" <cedemars@tecoenergy.com>, "Frank Busot"
<flbusot@tecoenergy.com>, "John Duff" <jtduff@tecoenergy.com>, "Kevin E.
Fleming" <kefleming@tecoenergy.com>, "Lucinda J. Saporta"
<ljsaporta@tecoenergy.com>, "Yogesh  Patel" <ympatel@tecoenergy.com>
Cc: "George D. Jennings" <gdjennings@tecoenergy.com>
Subject: Fwd: Frontera Pictures
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_104A2B56.D0B1FF44"

Attached are some excellent pictures taken by David Kiepke of Frontera's
rotor at the Alstom repair facility in Richmond.

Abe
Date: Thu, 24 May 2001 08:20:16 -0400
From: "David E. Kiepke" <dekiepke@tecoenergy.com>
To: "Richard Abraham" <rsabraham@tecoenergy.com>
Cc: "Yogesh  Patel" <ympatel@tecoenergy.com>
Subject: Frontera Pictures
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_104A2B56.D1B0FE45"

Frontera Rotor Pictures in Alstom Power Repair Facility.

 - Frontera Rotor Inspection, Alstom Shop.doc
 - Frontera Rotor Parts, Alstom Shop Inspection.doc


458712 .0075
458718  .0075
457489  .0075
459812  .0075

the broker shows the fees on these trades, we have 0.  can you check this out?

thanks


Was Reilly crawling home when he saw you at the underpass? Be happy to get together either in office or breakfast/lunch. Give me a call. Rick

-----Original Message-----
From: Cordell, Gary [mailto:GCordell@HCCEB.com]
Sent: Tuesday, September 18, 2001 9:27 AM
To: Buy, Rick
Subject: Brotherhood of Banker Trust is Alive

Jim Reilly said he had spoken to you recently after he saw me holding a sign
under an I10 overpass.  Would love to get together with you to catch up and
figure out what's going on at Enron and elsewhere.  I have attached my
resume'.  We've all come along way since the BT days.  I'll call you in the
near future to see when we can get together.

 <<Resume081401.doc>>


What I am really looking for is a way to save monthly production data by
county for the entire state for all of the data.  Unfortunately, saving the
data like you mentioned wouldn't save me that much time.

Thanks for your help.

Eric Bass

"Kathy Way" <kathy.way@rrc.state.tx.us> on 04/12/2000 02:02:55 PM
To: Eric Bass/HOU/ECT@ECT
cc:
Subject: Re: Production Data

When you call up the production save the file as a txt file then open it in
excel as a delimited file.
If you need any help please feel free to give me a call or email me your
phone number and I will be happy to walk through the steps with you.

Thanks,

Kathy Way
Statewide Statistics
(512) 463-6729
(512) 463-6955 FAX

>>> <ebass@ect.enron.com> 04/12/00 11:23AM >>>
I was wondering if there was a downloadable format(excel format) to the
gas production data.  Could you advise as to how to receive this info
without having to type it out manually?

Thanks,

Eric Bass

 - Kathy Way.vcf


The Emergency Call-Out List is on the attached Excel file:
"EmerCallList.XLS" and is being sent to all #1's and #2's in the escalation
order.  The complete list is ten pages and includes in the following order:

 Page 1-3 Enron Building
 Page 4-5 Three Allen Center
 Page 6  600 Jefferson
 Page 7   Enron Hanger
 Page 8  Navigation Warehouse
 Page 9   Ardmore Building
 Page 10 Shepherd Warehouse

Future updates will be sent around the 1st of each month.

Note:  It is the responsibility of those individuals listed on the Emergency
Call-Out List to verify the information and advise me via cc:Mail or
NotesMail ONLY of any phone number or contact name changes.  Include the line
number corresponding to the requested change(s).  PLEASE  DO NOT forward a
corrected sheet to me.

Thank you for your co-operation.  If you have any questions or comments,
please call Randy Lord at ext. 5-7707 or send cc:Mail/NotesMail messages.


Sorry I missed your email. Have been working from home, with Bob assisting from the office. If you need me, please call my home number: 281 992 2713.

Dave

-----Original Message-----
From: Kitchen, Louise
Sent: Sat 2/2/2002 1:56 PM
To: Forster, David
Cc:
Subject: RE: Day 1 list additions

ARe you in the office?

-----Original Message-----
From: Forster, David
Sent: Saturday, February 02, 2002 1:12 PM
To: Bradford, William S.; Brackett, Debbie R.; 'pat.odonnell@ubsw.com'; 'louis.eber@ubsw.com'; 'william.glass@ubsw.com'; 'colette.dow@ubsw.com'
Cc: Shults, Bob; Kitchen, Louise
Subject: Day 1 list additions

As per my email from yesterday;

Attached are Pipeline companies, Transmission Company (Ercot) and Canadian companies not on the prior "Louise Approved" list which credit has been working on.

We have been having difficulty tracking down the full legal name for some of the storage and transmission companies, and for AEC storage, there are two names - I assume only one may be required. For any cases where the full legal name cannot be found today, we have included the group name. We will resolve the remaining full legal names on Monday morning, when other staff are available.

Dave


Attached please find the regulatory filing summary and a summary of
interventions ENA has filed on the various Order 637 compliance filings.  If
you have any questions, please call me at x35514.


You're probably gone anyway.  I'll think of this as "my note in a bottle".

Stumpy and his wife Martha went to the state fair every year. Every year
Stumpy would say, "Martha, I'd like to ride in that there airplane." And
every year Martha would say, "I know Stumpy, but that airplane ride costs
ten dollars, and ten dollars is ten dollars."

One year Stumpy and Martha went to the fair and Stumpy said, "Martha, I'm
71 years old. If I don't ride that airplane this year I may never get
another chance." Martha replied, "Stumpy that there airplane ride costs ten
dollars, and ten dollars is ten dollars."

The pilot overheard them and said, "Folks, I'll make you a deal. I'll take
you both up for a ride. If you can stay quiet for the entire ride and not
say one word, I won't charge you, but if you say one word it's ten
dollars."

Stumpy and Martha agreed and up they go. The pilot does all kinds of twists
and turns, rolls and dives, but not a word is heard. He does all his tricks
over again, but still not a word.

They land and the pilot turns to Stumpy, "By golly, I did everything I
could think of to get you to yell out, but you didn't." Stumpy replied,
"Well, I was gonna say something when Martha fell out, but ten dollars is
ten dollars."