-----Original Message-----
From: Cook, Mary
Sent: Thursday, October 25, 2001 5:34 PM
To: Jones, Tana
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

-----Original Message-----
From: Gray, Barbara N.
Sent: Thursday, October 25, 2001 3:31 PM
To: Koehler, Anne C.; Cook, Mary; Shackleton, Sara; Taylor, Mark E (Legal); Sayre, Frank; Hendry, Brent
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

FYI
-----Original Message-----
From: Lees, Lisa
Sent: Thursday, October 25, 2001 3:05 PM
To: Gray, Barbara N.
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

-----Original Message-----
From: Denny, Jennifer
Sent: Wednesday, October 24, 2001 1:43 PM
To: Lees, Lisa
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

-----Original Message-----
From: Puthigai, Savita
Sent: Wed 10/24/2001 11:11 AM
To: Engel, Thomas; Denny, Jennifer
Cc:
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

 -----Original Message-----
From:   McKinney, Lara
Sent:   Wednesday, October 24, 2001 8:43 AM
To:     Enron London - EOL Product Control Group; Puthigai, Savita
Subject:        FW: Texas Monthly (November 2001): How Enron Blew It

FYI - it is a good article

 -----Original Message-----
From:   Connelly, Angela
Sent:   24 October 2001 10:59
To:     McKinney, Lara
Subject:        FW: Texas Monthly (November 2001): How Enron Blew It

This is a long one - but definitely worth reading.

Cover title: Enron's Cutthroat Culture
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How Enron Blew It
Less than a year ago, the Houston-based energy behemoth had everything: money, power, glitz, smarts, new ideas, and a CEO who wanted to make it the most important company in the world. Now its stock is down, wall street is bearish, and the CEO is gone. What went wrong?

by Mimi Swartz < <http://www.texasmonthly.com/mag/issues/authors/mimiswartz.php>>
THE ENRON SKYSCRAPER NEAR THE SOUTH END OF HOUSTON'S DOWNTOWN feels like the international headquarters of the best and the brightest. The lobby in no way resembles the hushed, understated entryways of the old-fashioned oil companies, like Shell and Texaco nearby. Enron, in contrast, throbs with modernity. The people hustling in and out of the elevators are black, white, brown; Asian, Middle Eastern, European, African, as well as American-born. They are young, mostly under 35, and dressed in the aggressively casual uniform of the tech industry-the guys wear khakis, polo shirts, and Banana Republic button-downs. Almost preposterously fit, they move through the building intently, like winners. Enron is nothing if not energetic: A Big Brother-size TV screen frantically reports on the stock market near a bank of elevators, while another hefty black television relaying the same news greets people entering from the garage. A sculpture of the corporate symbol, an E tipped at a jaunty angle, radiates colors as it spins frenetically on its axis; a Starbucks concession on the ground floor keeps everyone properly caffeinated. Multicolored, inspirational flags hang from the ceiling, congratulating Enron on its diversity and its values; one more giant banner between elevator banks declares Enron's simple if grandiose goal: "From the World's Leading Energy Company to . . . The World's Leading Company!"

For a while, that future seemed guaranteed, as Enron transformed itself from a stodgy, troubled pipeline company in 1985 to a trading colossus in 2000. It was a Wall Street darling, with a stock price that increased 1,700 percent in that sixteen-year period, with revenues that increased from $40 billion to $100 billion. "The very mention of the company in energy circles throughout the world creates reactions ranging from paralyzing fear to envy," notes a 2001 report from Global Change Associates, a firm that provides market intelligence to the energy business.

This Enron was largely the creation of Jeff Skilling, a visionary determined to transform American business. Hired sixteen years ago as a consultant by then-CEO Ken Lay, Skilling helped build a company that disdained the old formula of finding energy in the ground, hauling it in pipelines, and then selling it to refineries and other customers. Instead, it evolved into a company that could trade and market energy in all its forms, from natural gas to electricity, from wind to water. If you had a risky drilling venture, Enron would fund it for a piece of the action. If you wanted your megacorporation's energy needs analyzed and streamlined, Enron could do the job. If you were a Third World country with a pitiful infrastructure and burgeoning power needs, Enron was there to build and build. Basically, if an idea was new and potentially-and fantastically-lucrative, Enron wanted the first crack. And with each success, Enron became ever more certain of its destiny. The company would be the bridge between the old economy and the high-tech world, and in February of this year, Skilling reaped his reward when he succeeded Lay as chief executive officer. Enron, says Skilling, "was a great marriage of the risk-taking mentality of the oil patch with the risk-taking mentality of the financial markets."

The Enron story reflects the culture that drove American business at the end of the twentieth century. Like the high-tech companies it emulated, Enron was going to reinvent the American business model and, in turn, the American economy. Maybe it was natural that this Brave New World also produced a culture that was based on absolutes: not just the old versus the new, but the best versus the mediocre, the risk takers versus the complacent-those who could see the future versus those who could not. The key was investing in the right kind of intellectual capital. With the best and the brightest, a company couldn't possibly go wrong.

Or could it? Today Enron's stock trades at around $35, down from a high of $80 in January. The press cast Enron as the archvillain of California's energy crisis last spring, and Skilling caught a blueberry pie in the face for his relentless defense of the free market. A long-troubled power plant project in India threatened the company's global ambitions. Telecommunications, in which Enron was heavily invested, imploded. Wall Street analysts who once touted the company questioned its accounting practices. Some of the change in Enron's fortunes can be attributed to the economic downturn in uncertain times that has afflicted all of American business. But the culture that the company created and lived by cannot escape blame.

ENRON, JEFF SKILLING SAYS, HAD "a totally different way of thinking about business-we got it." At Enron, in fact, you either "got it" or you were gone-it was as simple as black and white. It is not coincidental, then, that the color scheme of Skilling's River Oaks mansion mirrors the corporation he once headed. Here, the living room's white walls shimmer against the mahogany floors. Black leather trims the edge of snowy carpets. Billowy sofas set off the jet-black baby grand. In the entry, white orchids cascade from a black vase on a black pedestal table that in turn pools onto cold, white marble. There is only one off-color note: After almost twenty years, Jeff Skilling is no longer associated with Enron, having resigned abruptly after just six months as CEO. Once, Skilling was hailed as the next Jack Welch (General Electric's masterful CEO), as one of Worth magazine's best CEO's in America (anointed in 2001), and even as a daredevil who hosted the kind of unchained adventure junkets in which, a friend told BusinessWeek, "someone could actually get killed." Today, he sounds more like Ebenezer Scrooge on Christmas morning. "I had no idea what I'd let go of," Skilling says of all the personal sacrifices he made while retooling Enron.

From a black chair in the white library, across from a huge black and white photograph of his daughter and two sons, Skilling clarifies. The demands of working 24-7 for Enron caused him to ignore his personal finances. Divorced, he lived in a 2,200-square-foot house without a microwave or a dishwasher. He almost missed his brother's wedding. "Learning a foreign language-I never learned a foreign language!" he exclaims. He never once took his youngest son to school. "I'm interested in the kids. You don't do kids in fifteen-minute scheduling." Travel: "You can't go to Africa for a week and get anything out of it!" Skilling includes the study of architecture and design on his list of missed opportunities, then he stops and sighs. "I'm not sure that fulfillment in life is compatible with a CEO's job," he says, finally. Then his eyes lock on mine, and his voice, which had softened, regains its pragmatic edge. "It would have been easy to stay," he says. "But that would not have been good for me."

He's a smallish, ruddy-faced man who keeps himself at fighting weight, handsome in the way of corporate titans, with piercing cheekbones and that assiduously stolid gaze. But the impatience Skilling once reserved for cautious underlings and dull-witted utility company executives is now targeted at reporters who have labeled his resignation "bizarre" and associates who are bitterly skeptical of his need for family time. His shrug stretches the limits of his shimmering blue button-down, and his matching blue eyes look put upon. "I'm surprised," he says, "that people have so much trouble understanding this."

PEOPLE WHO PASSED THROUGH DOWNTOWN HOUSTON in the late eighties or early nineties couldn't help but notice a funny and, for its time, novel scene unfolding throughout the workday at the base of the Enron Building. From nine to five and before and after, you could see people slipping out of the pristine silver skyscraper to smoke. They perched on the chrome banisters or lurked near the glass doors at the entry, puffing like mad. They always looked hurried and furtive, even ashamed. Whatever people knew about Enron in those days (and most people didn't know much), it was often associated with that scene: Enron boasted one of the first nonsmoking corporate headquarters in Houston, and there couldn't have been clearer evidence of its break with the energy world of the past. What macho engineer would have put up with such humiliation?

But this company was a child of another time, that period in the mid-eighties when chaos enveloped the gas business. Federal deregulation of natural gas turned a steady, secure industry, in which gas pipeline companies frequently enjoyed a monopoly in portions of the areas that they served, into a volatile free-for-all. The situation was compounded five years later by federal deregulation of the pipeline business. So it happened that a gentlemanly gas pipeline company, Houston Natural Gas (HNG) found itself under attack from Coastal Corporation, Oscar Wyatt's less than gentlemanly firm. HNG was then run by Lay, a sturdy, taciturn former economics professor and Transco chief operating officer who had a passion for military strategy. (His doctoral thesis at the University of Houston was on supply and demand in the Vietnam War.) Lay, who was from Missouri and never succumbed-at least outwardly-to Texas brashness, had done well enough: Thanks to canny expansions, HNG's pipelines stretched from Florida to California and throughout the state of Texas.

HNG fended off Coastal, but to protect the company from other takeover attempts, Lay nimbly engineered the sale of HNG in 1985 to a friendly Nebraska pipeline concern called InterNorth, one of the largest pipeline companies in the country at the time. Then, a funny thing happened: HNG started acting in a way that would characterize the company for years to come-a lot like Coastal. What the Nebraskans blithely labeled "the purchase" was being called "the merger" back in Houston, and before long, following some particularly brutal politicking between Omaha and Houston, the company's center of gravity started shifting toward Texas, and shortly after that, Ken Lay was running a new company called Enron. "Over time it became clear that Lay had a better vision of the future," says one person associated with Enron at that time. "He never fought change. He embraced change."

Lay had won, but what exactly did that mean? Enron was saddled with massive debt from the takeover attempt, and thanks to deregulation, no longer had exclusive use of its pipelines. Without new ideas-for that matter, a whole new business plan-the company could be finished before it really even got started.

LIKE MANY PEOPLE WHO TEAMED UP WITH ENRON IN THE EIGHTIES, Jeff Skilling had spent a lot of time in the Midwest, and he was self-made-at fourteen he had been the chief production director at a start-up TV station in Aurora, Illinois. (His mother would drop him off there every day after school.) "I liked being successful when I was working, and I was smart," he told BusinessWeek earlier this year. But unlike many of his Enron colleagues, Skilling wasn't deliberate and soft-spoken and happy to go home at five o'clock; he was anxious and excitable, and nothing, but nothing excited him more than what he would come to call "intellectual capital." He loved being smart, and he loved being surrounded by smart people. He graduated from Southern Methodist University, went into banking-assets and liability management-and took on Harvard Business School, where he graduated in the top 5 percent of his class. Then Skilling took the next step on what was then the new, souped-up path to American success: He joined Manhattan's McKinsey and Company as a business consultant, and that is where Ken Lay found him in 1985.

It is often said of Lay that his instincts for hiring the best are flawless, and his choice of Skilling probably saved the company. Skilling was above all an expert at markets and how they worked. While everyone else was worrying about the gluts and the shortages that defined the gas industry, he alone saw the parallels between gas and other businesses. And so in a world where credit was nearly impossible to come by, Skilling came up with what he called the Gas Bank, which contractually guaranteed both the supply and the price of gas to a network of suppliers and consumers. Enron would not be a broker but a banker. It would buy and sell the gas itself and assume the risk involved. And Enron would make money on transactions, much like an investment bank would.

Skilling worked up some numbers and found them "absolutely compelling." Then the McKinsey consultant took the idea to a meeting of about 25 Enron executives. He had a one-page presentation. "Almost to a person," Skilling says, "they thought it was stupid." Almost. After Skilling left the meeting dejected, he walked Ken Lay to an elevator and apologized. Lay listened and then said, "Let's go."

The Gas Bank was not an overnight success. For months Skilling woke up in a cold sweat, sure he had ruined not only his career but the careers of dozens of colleagues who had assisted him. In fact, he had come upon one of those divides that seem to define his life: "I believed this whole world would be different, a huge breakthrough" is the way Skilling puts it today, and even if he is typically immodest, he was right. Fairly soon after launching, the company sold $800 million worth of gas in a week. True to Skilling's character, success turned out to be a matter of old versus new: He says the joke around Enron was that if a company's CEO was under fifty, "We were in." And he was in too: In 1990 Skilling finally left McKinsey and joined Enron as the head of Enron Finance Corporation, a new division created just for him. In 1991 that company closed a deal that earned $11 million in profit. After that, says Skilling, "we never looked back."

Skilling and Lay also realized that the Gas Bank couldn't work unless it had a trading component. Myriad trades were needed to build the market that would make the project go. But by buying and selling enormous quantities of gas, Enron not only constructed a market but almost instantly came to dominate it. The company had the best contacts, the best intelligence, and the best access to supplies. That, in turn, attracted more customers who wanted to be part of the play. With so many customers in its pocket, Enron could better predict the direction of the market and could use that knowledge to make trades for its own benefit-Enron could in effect bet on which way the price of gas would go, as one might do with pork bellies or soybeans, but with startling accuracy, thereby generating profits higher than anyone could have ever imagined.

THIS CHANGE COULD NEVER HAVE OCCURRED without another change Skilling had made: He created, within Enron, a new culture to match its new trading business. The idea was to build a "knowledge-based business," which demanded a skill set not exactly prized by Enron's employees from the old HNG days. Most were deliberate, cautious, responsible, somewhat defensive people, most of them men, of course-the kind of people you'd expect to find working in an industry regulated by the federal government. But now the company needed bolder people for its bold new era: that included anyone who wanted to make money-lots of money-for themselves and for the company. "Enron was going to create a niche for itself or die," one former executive explains. "The people who had narrow views eventually were forced out, because if they had narrow views about other things, they had narrow views about the market."

Skilling wanted smart people but not just any smart people. He wanted the smartest people from schools like Harvard, Stanford, and maybe, Rice. And because his firm was now acting more like a bank than a pipeline company, he wanted to draw from the pool of recruits that would be attracted to the biggest and best investment banks, like Merrill Lynch or Credit Suisse First Boston. In addition to being smart, Enron people were also supposed to be "aggressive." You were right for Enron if you didn't want to wait until you were thirty to close your own deals or move up in an organization.

You could see what he was looking for on "Super Saturdays" at the Houston headquarters: eight fifty-minute interviews with ten minute breaks in between-the company might herd as many as four hundred people through in just one day. They were scored from 1 to 5 on their smarts, their problem-solving ability, their passion for hard work, and what at Enron was called "a sense of urgency." People who scored less than 2.5 were scratched. The shrewdest candidates knew how to work Enron before they were even hired: These were the types that automatically turned down the company's first offer, knowing Enron would come back with more. The starting salary was around $80,000. Maybe it wasn't a fortune-yet-but the signing bonus, about $20,000, was more than enough for a lease on the obligatory Porsche Boxster or one of the lofts being renovated close to downtown. (Enron people didn't live in far-flung suburbs. Suburbs were uncool and too far from the office.)

For the lucky winners, Enron offered the corporate equivalent of a gifted-and-talented program. New associates learned the latest techniques for structuring energy deals, and there were rotations at Enron offices around the globe. The hours were long, but every possible need was taken care of. A company concierge handled all the things important people couldn't be bothered with: picking up dry cleaning or prescriptions, shining shoes, cleaning the house, planning a vacation. Of course, a lot of people who worked for Enron never got to take vacations-they were too busy making money-but they could use the company gym and the company's personal trainers. If they were overweight or wanted to quit smoking, they could join Enron's Wellness Program. Massages were offered six days a week, from seven in the morning until ten at night. "They were so cutting edge," rhapsodizes someone involved with the company health care program at the time. "They really thought about the psychology and what it took to keep these people going."

Skilling handed out titles analogous to those at Wall Street firms-analysts, associates, directors, and managing directors-but everyone knew that those titles didn't really matter. Money did. Instead of competitive salaries and decent bonuses, Enron offered competitive salaries and merit-based bonuses-with no cap. "If you really worked hard and delivered results, you could make a lot of money," says Ken Rice, who stayed with Enron for 21 years until resigning recently as the head of the company's faltering broadband division. Or, as the saying goes, you got to eat what you killed. Gas traders with two or three years of experience could wind up with a $1 million bonus. And the more you produced, the closer you got to Jeff: Real hot dogs joined him glacier hiking in Patagonia, Land Cruiser racing in Australia, or off-road motorcycling in a re-creation of the Baja 1,000 race, ending at a spectacular Mexican villa. "Every time he'd speak, I'd believe everything he'd say," one loyalist says.

And why not? By 1995 Enron had become North America's largest natural-gas merchant, controlling 20 percent of the market. But at a company where the buzzword was "aggressive," that was no place to stop: Skilling and Lay believed the Gas Bank model could easily be applied to the electricity business. Firmly committed to the notion that a deregulated market meant better service at lower prices for consumers (and untold profits for Enron), they began barnstorming the country, pressing their case with entrenched power company presidents (who, with their multimillion-dollar salaries and monopoly service areas, had little incentive to change) and energy regulators (who were somewhat more receptive, thanks in part to Enron's generous lobbying efforts).

But the biggest winner of all was probably Jeff Skilling. In 1997 Ken Lay made him the president and chief operating officer of the company. By then, the division known as Enron Capital and Trade Resources was the nations largest wholesale buyer and seller of natural gas and electricity. The division had grown from two hundred to two thousand employees, and revenues from $2 billion to $7 billion. "Mr. Skilling's experience so far with the turmoil in the industry has convinced him that he is on the right track," the New York Times noted. Everyone would certainly have thought so: Enron and Skilling had totally transformed one industry and were well on their way to transforming another.

"FIRING UP AN IDEA MACHINE; Enron Is Encouraging the Entrepreneurs Within," sang the New York Times in 1999. "In the staid world of regulated utilities and energy companies, Enron Corp is that gate-crashing Elvis," crowed Fortune in 2000. Wall Street was demanding tech-size growth on a tech timetable, and Enron, in 2000, obliged with second quarter earnings of $289 million, up 30 percent from the previous year. That year the company seemed to discover a market a minute: Under Skilling, Enron was trading coal, paper, steel, and even weather. No one blinked when a London wine bar became an Enron client. People drank more in warm weather than cold, so why not buy a hedge against the usual winter downturn?

But most exciting to the financial world was Enron's entry into high-tech communications. Because of the company's marketing dominance, EnronOnline became another overnight success, handling $335 billion in commodity trades online in 2000. Enron, as usual, made its money on the spread between the bid price and the asking price. Then there was the broadband business: To Enron, trading excess capacity in large, high-speed fiber-optic networks (empty lanes on the fabled information highway) wasn't that different from trading the capacity of natural gas pipelines. So Enron created a market for what the industry calls bandwidth. Soon after, it also announced a twenty-year deal with Blockbuster to deliver movies on demand electronically to people in their homes. Enron looked like a company that couldn't lose. "Its strategy of building businesses, shedding hard assets, and trading various commodities can help it do well even in an uncertain market," BusinessWeek insisted.

There was, however, another reason Enron did so well in such a short time: the company's hard-nosed approach toward its customers. The old notion of customer service was based on the long haul-you had to nurse and coddle customers to keep them. But Enron had new markets and new ideas-customers had to come to it. Over time, the company stopping referring to its business clients as customers and began calling them "counterparties."

Skilling wanted the biggest profits on the shortest timetable: Gains were maximized by creating, owning, and then abandoning a market before it became overtaxed and overregulated. So if you wanted to launch a high-risk venture quickly-such as Zilkha Energy's new high-tech approach to drilling for oil-you got your financing from Enron because a bank would take forever to underwrite the project, if it ever would. But because Enron invented its markets and subsequently dominated them, Enron could set the terms of its deals, from the timeline to the method of accounting to whether the deal happened at all.

While many businesses used what was known in the industry as "mark-to-market accounting," for instance, Enron used it on an unprecedented scale. The company priced their deals at current market value-but it was always Enron's idea of the market value; companies that balked at their pricing didn't get deals. And while old-fashioned companies spread their profits out like annuities over a period of years, Enron took most of its profit up-front. However many millions would be made on a deal that covered several years, they went on the books in the current year. If a few analysts thought there might be something fishy about what they called "subjective accounting," investors didn't particularly care as long as the profits rolled in. As the market fluctuated and the landscape changed, the company might abandon a project that had been in the works for months because its profit margins weren't going to be high enough. "Enron is known for leaving people at the altar," says one former employee. Winning the highest possible profits for the company could even extend to Enron's attitude toward charity. When a fundraiser for the Houston READ Commission, a literacy group, called on Enron for a contribution, it was suggested that he start raising money for Enron's competing literacy charity: "Even the person who was supposed to give money away for Enron was supposed to make money for Enron," he says.

As Enron became more and more successful, the culture Skilling had created took on a dark side: The competition turned inward. As one member of the Enron family put it, "It became a company full of mercenaries." The change started at the bottom. As Enron's domination of the energy market grew, most of the recruiting frills fell away. New associates were treated much like the commodities the company traded. Global Change's Enron spies reported overhearing orders like "I need a smart person-go buy me one" or "Buy me an intelligent slave, quick." Enron had never been the kind of place where people sang to you on your birthday, but now the workaholism bordered on self-parody: A Random Acts of Kindness program lasted only a few months. It was too disruptive. People couldn't get their work done.

And, of course, Enron had a program for institutionalizing creative tension. The Performance Review Committee, which had initially been installed by Skilling in the Capital group, became known as the harshest forced ranking system in the country. Employees were rated on a scale of one to five, and those with fives were usually gone within six months. (The PRC's nickname quickly became "rank and yank.") It was a point of pride that Skilling's division replaced 15 percent of its workforce every year. As one Skilling associate put it, "Jeff viewed this like turning over the inventory in a grocery store." Skilling's approach to business-get in and get out-had become Enron's attitude toward its workers. In time, it would become many workers' attitude toward the company. Teamwork, never that valuable in a trading culture, went the way of the eyeshade and the abacus. If protocol required an Enron higher-up to come from Europe to help with a project in the Third World, he might help-or he might not, depending on whether another, potentially more lucrative project was pending elsewhere.

Everyone felt the pressure to perform on a massive scale at massive speed: "They were so goal oriented toward immediate gratification that they lost sight of the future," says one former employee. Anyone who couldn't close deals within a quarter was punished with bad PRC scores, as were the higher-ups who had backed them. Past errors and old grudges were dredged up so often as new ammunition in PRC meetings that the phrase "No old tapes" became an Enron clich?. "People went from being geniuses to idiots overnight," says one former Enron executive.

In such a hothouse, paranoia flowered. New contracts contained highly restrictive confidentiality agreements about anything pertaining to the company. E-mail was monitored. A former executive routinely carried two laptops, one for the company and one for himself. People may have been rich at Enron, but they weren't necessarily happy. One recruiter described the culture this way: "They roll you over and slit your throat and watch your eyes while you bleed to death."

BEFORE JEFF SKILLING COULD TRANSFORM ENRON from the world's leading energy company into the world's leading company, he had to make one more change: Just as he had done ten years before, Skilling had to purge the company of its remaining old order. Where Enron once prized cautious executives who dealt with tangible assets like pipelines, it now valued bold executives who dealt with intangible assets. Pipelines, power plants-they may have been Enron's pride, but Skilling wanted them gone. Expensive, long-term building projects had no place when Wall Street was devoted to quick profits and enormous returns on investment capital, and Skilling knew it. "It wasn't the time for long-term approaches," an Enron executive says of Wall Street's mood. "It was the technology era."

To rid Enron of the last vestiges of its past, Skilling had to take on Rebecca Mark, long considered his rival for the CEO's job. Mark was for many years the poster child for the Enron way: Young, attractive, aggressive-her nickname was Mark the Shark-she came from sturdy Midwestern stock but had the requisite Harvard MBA. Mark was largely responsible for the success of Enron International, the asset-heavy side of the company where she developed $20 billion worth of gas and power plants, which accounted for 40 percent of Enron's profits in 1998. For this she reaped breathtaking compensation-one Enron executive estimated $10 million-and adoring press clips, including two appearances on Fortune's list of the fifty most powerful women in corporate America.

But then Mark ran into trouble with a gas-fired power plant in Dabhol, India, one of the largest ever constructed. She had played the game the Enron way: Taking Enron into a new market, she had finagled low import taxes (20 percent instead of the usual 53) and hung in through 24 lawsuits and three changes in government. But the time and expense needed to make India and other Enron plants around the globe successful did not mesh with Enron's goals, and Skilling's impatience with Mark grew.

Forcing Mark out, however, was no easy matter. Key executives left, divisions were dismantled, but she remained. The truth was Enron didn't mind firing lower-level employees, but it hated to fire the kind of aggressive, relentless people it tended to promote. The company preferred humiliation-keeping a director in his cubicle, say, but failing to include him in the glamour deals, or kicking someone upstairs with a fancy title. (One particularly difficult executive won a few years at graduate school, gratis.) A company as smart as Enron could probably deduce too that dispatching one of the most visible businesswomen in the country would provoke a public-relations disaster. So Lay and Skilling did something classically Enronian: They gave Mark her own company. Despite Skilling's contempt for asset-heavy businesses, Enron spent more than $2 billion to buy a run-of-the-mill British water utility that could serve as Enron's entry into the emerging world of water privatization. Mark was put in charge of making Enron, yes, the world's greatest water company. Azurix, as the new business was called, looked like another sure thing: Its IPO in 1999 raised $695 million.

But Mark had to succeed on Enron's increasingly abbreviated timetable in a business fraught with political and emotional complexities. Water is not like gas or electricity-owners and governments are a lot less willing to give it up, even for lots of money. The company stumbled, layoffs commenced, and confidence evaporated. By August 2000 the stock price, which had started out at $19, had fallen to $5. Mark's resignation followed, and Azurix, much diminished, was folded into Enron. "I think it's best for Rebecca to start afresh," Lay, who had been a mentor to Mark, told the Wall Street Journal. Or as one critic put it, "They were more interested in destroying the old culture than running a business."

As 2000 drew to a close, Skilling was in total command. In December Ken Lay announced the inevitable: "The best time for the succession to occur is when the company is doing well," he told the press. "Enron is doing extremely well now." In February 2001 Jeff Skilling took over the CEO's job.

ALMOST IMMEDIATELY THE TROUBLE STARTED. Enron's domination of the electric-power market made it an instant target in the California deregulation debacle. Both PBS's Frontline and the New York Times took on Enron, portraying the company as a heartless colossus that used its influence in Washington (Lay and Enron's political action committee are the top contributors to George W. Bush) to force old people on fixed incomes to choose between buying food or electricity. Skilling and Lay appeared on camera singing belligerent anthems to the free market, while another memorable scene juxtaposed one of the company's jackallike traders against a hapless state employee in California, as both tried to buy power online. The Times reported that Lay had tried to persuade a new federal commissioner to change his views on energy deregulation. The bad press was, to say the least, ironic: Just as the media was pounding Enron for its omnipotence, Wall Street was discovering its weaknesses. By late March the stock price had slid to $50 a share from $80 in January.

Within Enron, the asset-based divisions took the rap for the decline. (The India plant continued to be enormously costly, at least in part because of constant turnover within Enron's management team.) But the California situation was more visible and therefore more damaging, despite Enron's claim that the state had never built enough power plants to service its population and never properly managed those it had. "For three months Gray Davis did a very good job of blaming us," says Mark Palmer, a vice president for corporate communications. "We were a Texas company. There was a Texan in the White House. California was a state that didn't put him in office, and his biggest contributor was a Texas energy company. Performance is going to take care of our stock price. The truth will take care of Gray Davis." (California utilities still owe Enron $500 million, another reason stockholders might be panicky.) But more problematic than the crisis itself was Skilling's all too apparent lack of contrition. Facing down his critics, he cracked a joke comparing California with the Titanic. ("At least the Titanic went down with its lights on.")

But the biggest problem was Enron's telecommunications division, which had been responsible for at least one third of its heady stock price. Investors believed that Enron could revolutionize high-speed communications, just as it had revolutionized gas and power. Enron estimated the global market for buying and selling space over fiber-optic cable would grow from $155 billion in 2001 to $383 billion by 2004-but then the tech bubble burst. So too did the much-hyped movies-on-demand deal with Blockbuster. For the first time in its confoundingly successful life, Enron had nothing new to take to market. Like the popular high school girl who suddenly packs on a few pounds, Enron suddenly looked less alluring to Wall Street.

Skilling launched a campaign to keep Enron's most important cheerleaders, the stock analysts, in the tent, but he wasn't cut out to be a supplicant. During the reporting of first quarter profits, he called an analyst who challenged Enron's financial reporting an "asshole." When the company reported hefty second quarter profits, many analysts questioned whether those profits had come from the generation of new business or from the sale of old assets. Ignoring the growing chorus critical of Enron's accounting, Skilling promised, as he always had, that innovations were just around the corner. "There wasn't any positive news," Carol Coale, of Prudential Financial, says now. "Basically, he talked me out of a downgrade."

The business press, so generous in the past, turned surly. Fortune had asked in March whether Enron was overpriced. ("Start with a pretty straightforward question: How exactly does Enron make its money?") The routine cashing in of stock options that were about to expire by key executives was portrayed in the media as a fire sale. (Skilling had sold $33 million worth, Ken Lay and Ken Rice close to four times that amount.) Then the Wall Street Journal reported on a fund run by the CFO that had been a source of strife within the company. (It was essentially risk management against Enron's possible failures.) Every negative story seemed to produce a concurrent drop in the stock price: By late August it had fallen below $40. Enron, so institutionally unforgiving, finally got a taste of its own medicine. "When Wall Street is in love with a stock, they're forgiving of something like accounting," says Carol Coale. "When a company falls out of favor, all these issues carry more weight."

This fact was not lost on people inside the company, who suddenly started experiencing an attack of conscience. Those who had looked the other way as the most powerful Enron executives dumped their wives and married their secretaries or carried on flagrant interoffice affairs now saw the error of their ways. "It just created an attitude," one executive still at Enron says. "If senior people are doing that, why are we held to a higher standard? There was a real culture of 'We're above everyone else.'"

Loyalty had never been prized at Enron, so there was no reason to expect it now. An old-fashioned, slow-moving company like Exxon could demand hardship duty in Baku with the promise of greater rewards down the road. "But," as one Houston oilman explains, "if you have to negotiate a hardship duty with someone who doesn't have loyalty and has money, then you have a corporation that's better suited for good times than bad."

As it turned out, that description applied to Jeff Skilling too. As the stock price stubbornly refused to ascend, he made no secret of his unhappiness and frustration. Then, after a trip to visit the families of three employees killed at a plant in England, he had an epiphany: Life was short; for him, Enron was over. Ever stoic, Ken Lay returned to the CEO's office, named a new president, arranged a trip to New York to calm analysts and investors, and promised a kinder, gentler Enron in the future. Trading anything and everything was out. The company, Lay says, will still innovate but "innovate much closer to our core." As for the culture: "Things like the Performance Review Committee, I think we could have applied better. By trying to categorize people into so many different categories, you ended up creating a morale problem."

That Skilling's supposedly brilliant colleagues were as shocked at the news of his departure as the rest of the business community may be testament to their lack of emotional intelligence. Despite Skilling's lengthy tenure with Enron, he'd always been contemptuous of the long haul; he'd always believed in cutting losses and moving on. But now that he was abandoning them when the company was in trouble, it was different. "Even Jeff's biggest detractors wouldn't have wanted him to walk out the door," one loyalist admits.

But on the day we meet, Skilling is looking forward, not back. "Look," he says with finality, "ninety percent of my net worth is in Enron. Were my interests aligned with the shareholders? Absolutely."

Free of falling stock prices and shareholder pressures, he is nestling himself back into the world of ideas. His eyes flash as he talks about new technologies. "The first wave never gets it right," he says. "The stand-alone dot-coms didn't work, but the technological applications will create a second wave that will change the world." Houston, he promises, will become the world's center of commodity trading, and he intends to be a part of it. In fact, he is already shopping for office space.

"This is the second wave, and Enron's got it," he says, almost breathless. "There are thousands of people running around the streets of Houston that get it."


My understanding (as of yesterday evening) is that it's on its own.  I'll
check and get back to you.

Best,
Jeff

	Jennifer Rudolph@EES
	04/03/2001 07:35 AM

		 To: Jeff Dasovich/Na/Enron@ENRON
		 cc:
		 Subject: Re: Priority Legislation

Jeff---
I am confused.
I thought the SDG&E rate freeze was now wrapped up with 3 other pieces of
legislation in ABX 8?
Now, I see it below....still as the Alpert bill....SBX 43.

Please give me the low-down.
Thank you.
---Jennifer
713-345-8206

From: Jeff Dasovich@ENRON on 04/02/2001 06:56 PM
Sent by: Jeff Dasovich@ENRON
To: Alan Comnes/PDX/ECT@ECT, Angela Schwarz/HOU/EES@EES, Beverly
Aden/HOU/EES@EES, Bill Votaw/HOU/EES@EES, Brenda Barreda/HOU/EES@EES, Carol
Moffett/HOU/EES@EES, Cathy Corbin/HOU/EES@EES, Chris H Foster/HOU/ECT@ECT,
Christina Liscano/HOU/EES@EES, Craig H Sutter/HOU/EES@EES, Dan
Leff/HOU/EES@EES, Debora Whitehead/HOU/EES@EES, Dennis Benevides/HOU/EES@EES,
Don Black/HOU/EES@EES, Dorothy Youngblood/HOU/ECT@ECT, Douglas
Huth/HOU/EES@EES, Edward Sacks/Corp/Enron@ENRON, Eric Melvin/HOU/EES@EES,
Erika Dupre/HOU/EES@EES, Evan Hughes/HOU/EES@EES, Fran Deltoro/HOU/EES@EES,
Gayle W Muench/HOU/EES@EES, Ginger Dernehl/NA/Enron@ENRON, Gordon
Savage/HOU/EES@EES, Harold G Buchanan/HOU/EES@EES, Harry
Kingerski/NA/Enron@ENRON, Iris Waser/HOU/EES@EES, James D
Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES, James Wright/Western
Region/The Bentley Company@Exchange, Jeff Messina/HOU/EES@EES, Jeremy
Blachman/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Joe Hartsoe/Corp/Enron@ENRON,
Karen Denne/Corp/Enron@ENRON, Kathy Bass/HOU/EES@EES, Kathy
Dodgen/HOU/EES@EES, Ken Gustafson/HOU/EES@EES, Kevin Hughes/HOU/EES@EES,
Leasa Lopez/HOU/EES@EES, Leticia Botello/HOU/EES@EES, Mark S
Muller/HOU/EES@EES, Marsha Suggs/HOU/EES@EES, Marty Sunde/HOU/EES@EES,
Meredith M Eggleston/HOU/EES@EES, Michael Etringer/HOU/ECT@ECT, Michael
Mann/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, mpalmer@enron.com, Neil
Bresnan/HOU/EES@EES, Neil Hong/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Paula
Warren/HOU/EES@EES, Richard L Zdunkewicz/HOU/EES@EES, Richard
Leibert/HOU/EES@EES, Richard Shapiro/NA/Enron@ENRON, Rita
Hennessy/NA/Enron@ENRON, Roger Yang/SFO/EES@EES, Rosalinda
Tijerina/HOU/EES@EES, Sandra McCubbin/NA/Enron@ENRON, Sarah
Novosel/Corp/Enron@ENRON, Scott Gahn/HOU/EES@EES, Scott Stoness/HOU/EES@EES,
Sharon Dick/HOU/EES@EES, skean@enron.com, Tanya Leslie/HOU/EES@EES, Tasha
Lair/HOU/EES@EES, Ted Murphy/HOU/ECT@ECT, Terri Greenlee/NA/Enron@ENRON, Tim
Belden/HOU/ECT@ECT, Tony Spruiell/HOU/EES@EES, Vicki Sharp/HOU/EES@EES,
Vladimir Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES, William S
Bradford/HOU/ECT@ECT, Kathryn Corbally/Corp/Enron@ENRON, Jubran
Whalan/HOU/EES@EES, triley@enron.com, Richard B Sanders/HOU/ECT@ECT, Robert C
Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Greg Wolfe/HOU/ECT@ECT, James
Wright/Western Region/The Bentley Company@Exchange, Dirk vanUlden/Western
Region/The Bentley Company@Exchange, Steve Walker/SFO/EES@EES, Jennifer
Rudolph/HOU/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, Douglas
Condon/SFO/EES@EES, wgang@enron.com, Scott Govenar <sgovenar@govadv.com>,
Hedy Govenar <hgovenar@govadv.com> @ ENRON, jklauber@llgm.com, Mike D
Smith/HOU/EES@EES, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janel
Guerrero/Corp/Enron@Enron, Eric Letke/DUB/EES@EES, Richard B
Sanders/HOU/ECT@ECT, gfergus@brobeck.com, Michael Tribolet/ENRON@enronXgate,
Robert Frank/NA/Enron@Enron
cc:
Subject: Priority Legislation

----- Forwarded by Jeff Dasovich/NA/Enron on 04/02/2001 06:55 PM -----

	Scott Govenar <sgovenar@govadv.com>
	04/02/2001 06:13 PM

		 To: Hedy Govenar <hgovenar@govadv.com>, Mike Day <MDay@GMSSR.com>, Bev
Hansen <bhansen@lhom.com>, Jeff Dasovich <jdasovic@enron.com>, Susan J Mara
<smara@enron.com>, Joseph Alamo <JAlamo@enron.com>, Paul Kaufman
<paul.kaufman@enron.com>, Michael McDonald <Michael.McDonald@enron.com>,
David Parquet <David.Parquet@enron.com>, Rick Johnson
<rick.johnson@enron.com>, Marcie Milner <mmilner@enron.com>, Sandra McCubbin
<Sandra.McCubbin@enron.com>, Tim Belden <Tim.Belden@enron.com>, Rick Shapiro
<rshapiro@enron.com>, Jim Steffes <james.d.steffes@enron.com>, Alan Comnes
<acomnes@enron.com>, Chris Calger <ccalger@enron.com>, Joe Hartsoe
<Joe.Hartsoe@enron.com>, Donna Fulton <Donna.Fulton@enron.com>, Steven Kean
<Steven.J.Kean@enron.com>, Karen Denne <kdenne@enron.com>, Beverly Aden
<beverly.aden@enron.com>, Bill Votaw <bill.votaw@enron.com>, Carol Moffett
<carol.moffett@enron.com>, Debora Whitehead <debora.whitehead@enron.com>,
Dennis Benevides <dennis.benevides@enron.com>, Don Black
<don.black@enron.com>, "dblack@enron.com" <dblack@enron.com>,
"emelvin@enron.com" <emelvin@enron.com>, "ehughes2@enron.com"
<ehughes2@enron.com>, "gweiss@enron.com" <gweiss@enron.com>,
"gsavage@enron.com" <gsavage@enron.com>, "Harry.Kingerski@enron.com"
<Harry.Kingerski@enron.com>, "kgustafs@enron.com" <kgustafs@enron.com>, Mike
D Smith <msmith1@enron.com>, "sgahn@enron.com" <sgahn@enron.com>,
"vsharp@enron.com" <vsharp@enron.com>, "wcurry@enron.com" <wcurry@enron.com>,
"William.S.Bradford@enron.com" <William.S.Bradford@enron.com>, Leslie Lawner
<Leslie.Lawner@enron.com>, John Neslage <john.neslage@enron.com>, Ken Smith
<ken@kdscommunications.com>, Bob Frank <bfrank@enron.com>, Jennifer Thome
<Jennifer.Thome@enron.com>
		 cc:
		 Subject: Priority Legislation

Assembly Speaker Bob Hertzberg has circulated the following list of
priority bills which he would like to pass out of the Assembly this
week:

SBX 5 (Sher) - This bill provides a total of $1, 039,500,000 from the
General Fund to implement energy efficiency programs and supplement
existing energy efficiency programs.

SBX 43 (Alpert) - This bill extends the SDG&E rate freeze to users over
100kw.

ABX 29 (Kehoe) - This bill This bill creates a variety of new programs
relating to energy
efficiency and distributed generation.

SBX 6 (Burton) - This bill creates the California Consumer Power and
Conservation Financing Authority (CPCFA), (2) authorizes the issuance of
bonds up to $5 billion, and (3) specifies that the CPCFA shall not
undertake any new projects after January 1, 2007.

SBX 28 (Sher)   This bill contains a series of provisions intended to
accommodate increased construction and operation of power plants.  The
bill also provides a 10-year waiver of standby charges for specified
distributed generation (DG) installations.


Hotline
Enron generates anger London 10 May 2001 09:14 * An Enron executive was
greeted with lots of scepticism and even some anger at the Steel Service
Center Institute,s annual meeting in California this week. Enron Industrial
Markets ceo Jeffrey McMahon included amongst his top ten reasons for Enron,s
&market making8 foray into the steel business a perceived lack of
dependability amongst US mills as well as their practice of treating
customers (except automakers) as &annoyances8. An unidentified mill executive
in the crowd rose during the Q&A session to pointedly challenge McMahon,s
accusations. Another mill executive was overheard complaining that he felt as
though he had just been held up as a &liar and a cheat8. Enron seems to
relish its role as enemy of the steel status quo. The final slide of McMahon,
s presentation to the SSCI touted its recognition as the &pushiest8 company
in the metals business last year * an award bestowed, somewhat
tongue-in-cheek, last December by MB...


David:
Enclosed is a new draft of the Kennecott amendment letter.  Mark and I have
discussed the counterparty termination language and have come up with the
language that I have high;lighted.  Upon your approval, I plan to use the
same language for the Duke and Cinnergy letters.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/08/2000
07:15 PM ---------------------------

Alex Huang@ENRON
12/08/2000 02:08 PM
To: Vince J Kaminski/HOU/ECT@ECT, vkaminski@aol.com
cc:
Subject: Slightly revised verstion


I've ordered the 1999 Annual Report for Scottish Power, as I noticed it was
not in the company file. It should be here tomorrow or Friday at the latest.
If you need the information sooner than that, I can download the report from
the company's website, although the document is understandably bulky. Please
let me know if you'd like a print-out.

Also, if you'd like, I can talk to Sue about CASA's financial needs. Mollie
and I had discussed splitting the auction proceeds between two charities; in
that way we can share the wealth and not inundate an organization with more
than they can manage. It's something to think about in case CASA doesn't need
much help.

Kate


PLEASE READ THIS IMPORTANT INFORMATION CONCERNING THE ENRON STOCK FUND IN THE ENRON CORP. SAVINGS AND ESOP PLANS

On Friday, January 11, trading of Enron stock was suspended on the New York Stock Exchange (NYSE).  All Savings and ESOP Plan transactions, including 401(k) payroll contributions,  involving this fund were placed in a pending status until trading resumed.

As announced by Enron's Office of the Chair on Wednesday, January 16, Enron stock would now be traded Over The Counter (OTC).  Upon receiving this information, work began immediately to develop a process that allows for OTC trades in the plans.

On Thursday, January 17, Enron initiated a process to facilitate OTC trades of Enron stock inside the 401(k) and ESOP and all pending transactions were processed using Thursday's closing price.

Now that trading has resumed, we urge you to review your investment elections to ensure that they are consistent with your investment goals.

As things change, we will continue to update you.

Enron Benefits Department


anytime after 4:00pm would work.

Geynille Dillingham
01/03/2001 04:20 PM
To: Kimberly Brown/HOU/ECT@ECT
cc: Scott Neal/HOU/ECT@ECT
Subject: Professor's visit - Howard

Kimberly,

Please see if Scott will be able to meet with some Howard finance professor's
on January 25, 2001.  The latest appointment in the evening will work if it
is at all possible for Scott to meet during that time.  If I can even get 30
minutes I would be greatly indebted to you and Scott forever.  If not, is
there anyone else on the trading floor able to give me some time.

Please advise as soon as possible?

Thanks, Geynille


Approve as written. Rick

 -----Original Message-----
From: 	Johnson, Kelly
Sent:	Monday, July 30, 2001 2:45 PM
To:	Buy, Rick; Fastow, Andrew
Subject:	Board of Directors Meeting - May 1, 2001

Please review the attached excerpt from May 1st Board of Directors meeting by August 6th. If you approve as written, please let us know. Regards, Rebecca

 << File: FINANCE EXCERPT.COM.doc >>

Kelly M. Johnson
Executive Assistant
Enron Corp.
1400 Smith Street, EB4923
Houston, TX 77002
Tel: 713-853-6485
Fax: 713-853-2534
E-Mail: kelly.johnson@enron.com

CONFIDENTIALITY NOTICE

The information contained in this email may be confidential and/or privileged. This email is intended to be reviewed by the individual or organization named above. If you are not the intended recipient, you are hereby notified that any review, dissemination or copying of this email or its attachments, if any, or the information contained herein is prohibited. If you receive this email in error, please immediately notify the sender by return email and delete this email from your system. Thank you.


Please proceed with Stacey on taking the prudency you are comfortable with.   Stacey will have to get approval from Louise and/or Lavo.

Thanks.

 -----Original Message-----
From: 	Gilbert-smith, Doug
Sent:	Wednesday, October 24, 2001 12:44 PM
To:	Presto, Kevin M.
Subject:	schedule C

Kevin,

The actual numbers are $2.9 for LCRA and 2.09 for Green Mountain. The LCRA number was for the transmission spread to Austin and can be released as we have Sandhill and the transmission market is no longer set up as it was in Sept 2000. On the Green Mountain side, $950 K is for scalar risk which may be high, $1 MM for ancillaries and $150 for the QSE exposure I underwrote for the services desk.

I feel comfortable releasing the LCRA and a portion of the Green Mountain scalar and a/s reserves. We have some idea of the a/s risk now but I need to keep some of that in reserve. Obviously the QSE part I need to keep.

Let me know,

Doug


Some of my very exclusive furniture is now available at www.circline.com/21
in very limited numbers, produced one at a time.

Yours sincerely, Karim Rashid

Karim Rashid Inc.
357 W 17th Street
New York NY 10011
p 212 929 8657
f 212 929 0247

www.karimrashid.com


FYI

-----Original Message-----
From: Seksan Kiatsupaibul [mailto:skiatsupaibul@hotmail.com]
Sent: Saturday, January 05, 2002 11:21 PM
To: Crenshaw, Shirley
Subject: My contact

Dear Shirley:

This is my current contact.  Please forward it to the research group.

Seksan Kiatsupaibul
65 Soi Sukhumvit 7
Bangkok, 10110
Thailand

Best wishes,
Seksan.

_________________________________________________________________
Send and receive Hotmail on your mobile device: http://mobile.msn.com


Yo, are we doin lunch tommorow still?


The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  , 2001 Carr Futures

The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.

Crude     http://www.carrfut.com/research/Energy1/crude48.pdf
Natural Gas     http://www.carrfut.com/research/Energy1/ngas48.pdf

Distillate and unleaded charts to follow.

Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG48.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG48.pdf

Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL48.pdf

Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606  USA
Tel:  312-368-6149
Fax:  312-368-2281
soblander@carrfut.com
http://www.carrfut.com


Tana,

  If I understand the enclosed e-mail correctly, a license is only required
if they resell the bandwidth.  If its for internal use, there is no licensing
requirement.  The agreement includes reps that the parties have all necessary
licenses.  Accordingly, I do not think you need to freeze Japanese Cos. from
bandwidth.

  Cynthia and Michelle  -   please let Tana know if you have a different view
or are able to provide additional information.  Thanks


Call me with any questions.

Gary H


I just talked to Chris about this. Apparently, the Reliant trader thought he
was clicking an SP-15 trade, and called immediately afterward to ask Chris if
it could be adjusted. It was more lucrative for Chris to do this deal at
SP-15 than NP-15 anyway, so he agreed. I guess I'm unclear about the exact
EOL guidelines in a situation like this, but please let me know if there's
anyone you'd like me to talk to. Chris didn't have the trader's name offhand,
but I could probably get him to research it a bit more. Just let me know what
you need from us.

Thanks,
Kate

From: Kimberly Allen on 04/05/2001 10:43 AM CDT
Sent by: Kimberly Indelicato
To: Kate Symes/PDX/ECT@ECT
cc:
Subject: Changed an EOL trade

Kate,
#562373 was an EOL trade that Chris Mallory did. When it was done on line the
delivery point was NP-15 now in Enpower it has been changed to SP-15. Could
you check with Chris if this is correct. I thought that we were not allowed
to change EOL trades. If he did then I will have to get with Legal to find
out what our next step would be.

Thanks,

Kimberly

Enron Power Marketing, Inc.
Kimberly Indelicato Office:713-853-3031
Trading Support Fax:713-646-2443
kallen3@enron.com


Buddy, we need to chat.

---------------------- Forwarded by Chris Germany/HOU/ECT on 01/09/2001 12:17
PM ---------------------------

Chris Germany
01/04/2001 04:25 PM
To: Beverly Beaty/HOU/ECT@ECT, Clarissa Garcia/HOU/ECT@ECT, Robert
Allwein/HOU/ECT@ECT
cc: Darla Saucier/NA/Enron@Enron, Sherry Anastas/HOU/ECT@ECT
Subject: Re: Oglethorpe

Hey gang.  Attached is the maualy invoice for Oglethorpe.  I have fixed the
pricing and the volumes on the top part of deal 516907 to match the maual
invoice.  Can we adjust the expected volumes in Sitara to match the manual
invoice?  If yes, how do you balance Unify since these are deal volumes and
not actual flow volumes.

AND Sherri, how this be entered from the accounting side in Unify, since
scheduling vs actual flow vs billing are all different?

---------------------- Forwarded by Chris Germany/HOU/ECT on 01/04/2001 04:18
PM ---------------------------

Darla Saucier@ENRON
01/04/2001 03:50 PM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: Oglethorpe

Can the Sitara ticket be updated to match this invoice?


Seabron -

Here is an outline of the work product we would like you to consider --

1. How much did the LACK OF POLITICAL LEADERSHIP / LUNACY cost California
consumers?
 + LUNACY = CPUC did not accept $60/Mwh last year
 + unwillingness to fix credit problems
 + Bad CDWR buying habits
 + other

2. Analyze key Cal ISO studies dealing with "overearning" and market abuse.
 + Methodological faults
 + Analyze Key Findings
 + Develop appropriate "Enron" responses

3. Develop framework to assist in responding to political "calls" for market
controls
 + Understand better who "won" from the WEALTH TRANSFER
 + How much was transferred to "Texas generators"?

4. Other fixes still needed
 + A/S markets in California
 + Governance issues
 + other?

I hope this helps frame the work.

Jim


CALENDAR ENTRY:	APPOINTMENT

Description:
	 Staff Mtg. Conference room EB4102

Date:		2/12/2001
Time:		11:00 AM - 1:00 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Ron and I discussed your comments. We don't have a problem with a 3-
business day requirement for posting cash collateral nor a 3-business day
requirement for " transfer date" interest posting.

 We have a question into our counsel (who has been out sick) on whether we
need some form of Board approval for posting collateral.

Our main concern (and the reason we would like a 10- business day time
period) is if we choose to provide credit support with a LOC, we don't have
the staffing and bank pre-arrangements to be able to put an LOC in place
within a shorter period. Since we don't currently exchange collateral,
posting a LOC would not be something we do in the normal course of business.
As such, if the need should arise, we would like to have sufficient time to
allow staff to look at our alternatives and provide the form collateral that
best suits the situation.

> -----Original Message-----
> From: Carol.St.Clair@enron.com [SMTP:Carol.St.Clair@enron.com]
> Sent: Wednesday, May 16, 2001 8:47 AM
> To: GRichar@smud.org
> Cc: Tracy.Ngo@enron.com; Stewart.Rosman@enron.com
> Subject: Re: EEI Changes
>
>
> Gary:
> These changes look fine.  I have had further discussions with Tracy on
> this
> 10 day issue and we have a change that we would like to make. We would
> like
> to add language that would require SMUD within 3 Business Days of our
> collateral request to send us an Officer's Certificate certifying that
> Board Approval is required in order to post the collateral requested.  If
> no approval is required, we feel that the extension of time is not
> necessary.  Also, if you are posting cash,  should the extension apply?
> If
> so, why?
>
> Also, I still don't understand why the 10 day requirement should apply to
> the "Transfer Date" concept which only requires the non-posting party to
> pay the posting party interest each month on cash collateral that has been
> posted.  Please explain.
>
>
> Carol St. Clair
> EB 3889
> 713-853-3989 (Phone)
> 713-646-3393 (Fax)
> carol.st.clair@enron.com
>
>
>
>
>                     Gary
>
>                     Richardson           To:     "'Carol St. Clair'"
> <Carol.St.Clair@enron.com>, "'Tracy Ngo
>                     <GRichar@smud        (Enron)'" <Tracy.Ngo@enron.com>
>
>                     .org>                cc:     Ron Jelicich
> <RJelici@corporate.smud.org>
>                                          Subject:     EEI Changes
>
>                     05/15/2001
>
>                     06:03 PM
>
>
>
>
>
>
>
>
>
> I made changes to  (h) Sections 8.1 (c) and 8.2 (c) changing the days for
> providing Performance Assurance form 3 to 10. I also changed (i)
> "Downgrade
> Event "  to 10 days to make it consistent with (j).
>
>  <<SMUD Redline EEI (5.15.01).doc>>
>
> (See attached file: SMUD Redline EEI (5.15.01).doc)
>  << File: SMUD Redline EEI (5.15.01).doc >>


---------------------- Forwarded by Jane M Tholt/HOU/ECT on 04/03/2001 06:56
AM ---------------------------

"Karen Swett" <kswett@TMVGAS.COM> on 04/02/2001 03:42:35 PM
To: <jane.m.tholt@enron.com>
cc:
Subject: Fwd: Enron worksheet for 2/01 Penalties

Attached is penalty spreadsheet our Accounting put together.? Let me  know if
any questions.? Thanks.
Date: Mon, 26 Mar 2001 10:13:03 -0600
From: "Theresa Johnson" <tjohnson@TMVGAS.COM>
To: "Karen Swett" <KES@tmvgas.com>
Subject: Enron worksheet for 2/01 Penalties
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_0E55F170.F293FFDA"

 - ENRONFEBPENALTY ON TWPL.xls


Enron Recruitment Technology is launching a new, easy to use, web-based
Employee Referral Program.

 This new site will help you to help Enron find the talent it needs.
Referrals are one of the best sources of talent for Enron in terms of quality
and fit with Enron's culture. We have found that referrals stay with the
company longer and adapt faster than those hired through other sources. This
site will help us run a world-class employee referral program with less work
and better results.

 There are also incentives for you. If you refer a candidate who is hired,
you could be eligible to receive a cash reward of up to $5,000.

 So help someone accelerate their career, make yourself some money, and help
us realize our mission of being the World's No. 1 Company.

 Check out the site - http://enron.referrals.com/promo.asp - let us know what
you think -- we want to hear from you. This application should make referring
easier for you so if you have suggestions that would enhance the program,
send us an e-mail (Referral.Station@enron.com) or contact the Referral
Station at (713) 345-3254, option 2.

 David Oxley

;


Cc list suppressed...

Oh thank you FERC, in chaos there is opportunity...dsg

Please see the following URLs...

http://news.excite.com/news/r/000803/19/energy-power-ca
lifornia

http://www.sacbee.com/news/calreport/calrep_story.cgi?N
340.HTML


Date:  August 31, 2000
   Day:  Thursday
   Time:  3:00 p.m.
   Place:  27C1


Use this file:  I have dated the forward price curve chart so that it is
clear it is prices as of today.

GAC

Alan Comnes
12/22/2000 01:39 PM
To: Steven J Kean/NA/Enron@Enron, Ginger Dernehl/NA/Enron@Enron
cc: Tim Belden/HOU/ECT@ECT, Robert Badeer/HOU/ECT@ECT

Subject: Charts

Steve, Ginger:

The first file has the charts and data you requested.

I am also forwading some charts on price caps.  You may be interested in the
charts on California Stage 1/2/3 emergencies.

Alan Comnes


Katherine:

Mr. Lay is planning on attending in person.

Tori

Katherine Brown
07/05/2000 01:15 PM

To: James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cliff
Baxter/HOU/ECT@ECT, Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Rick Buy/HOU/ECT@ECT, Richard Causey/Corp/Enron@ENRON, Diomedes
Christodoulou/SA/Enron@Enron, David W Delainey/HOU/ECT@ECT, James
Derrick/Corp/Enron@ENRON, Andrew S Fastow/HOU/ECT@ECT, Peggy_Fowler@pgn.com,
Mark Frevert/NA/Enron@Enron, Ben F Glisan/HOU/ECT@ECT, Kevin Hannon/Enron
Communications@Enron Communications, David
Haug/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joe Hirko/Enron
Communications@Enron Communications, Stanley Horton/Corp/Enron@Enron, Larry L
Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J Kean/HOU/EES@EES, Mark
Koenig/Corp/Enron@ENRON, Kenneth Lay/Corp/Enron@ENRON, Rebecca P
Mark/HOU/AZURIX@AZURIX, Mike McConnell/HOU/ECT@ECT, Rebecca
McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey McMahon/HOU/ECT@ECT, J
Mark Metts/NA/Enron@Enron, Cindy Olson/Corp/Enron@ENRON, Lou L
Pai/HOU/EES@EES, Ken Rice/Enron Communications@Enron Communications, Jeffrey
Sherrick/Corp/Enron@ENRON, John Sherriff/LON/ECT@ECT, Jeff
Skilling/Corp/Enron@ENRON, Joseph W
Sutton/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Greg Whalley/HOU/ECT@ECT, Thomas
E White/HOU/EES@EES, Brenda Garza-Castillo/NA/Enron@Enron, Marcia
Manarin/SA/Enron@Enron, Susan Skarness/HOU/ECT@ECT, Stacy
Guidroz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Beena
Pradhan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Karen K Heathman/HOU/ECT@ECT,
Sharron Westbrook/Corp/Enron@ENRON, Kay Chapman/HOU/ECT@ECT, Molly
Bobrow/NA/Enron@Enron, Rosane Fabozzi/SA/Enron@Enron, Stephanie
Harris/Corp/Enron@ENRON, Bridget Maronge/HOU/ECT@ECT, Mary_trosper@pgn.com,
Nicki Daw/NA/Enron@Enron, Inez Dauterive/HOU/ECT@ECT, Carol Ann Brown/Enron
Communications@Enron Communications, Elaine
Rodriguez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Nancy Young/Enron
Communications@Enron Communications, Ann Joyner/Corp/Enron@ENRON, Cindy
Stark/Corp/Enron@ENRON, Mary E Garza/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Maureen McVicker/HOU/EES@EES, Joannie Williamson/Corp/Enron@ENRON, Rosalee
Fleming/Corp/Enron@ENRON, Vanessa Groscrand/Corp/Enron@ENRON, Marsha
Lindsey/HOU/AZURIX@AZURIX, Cathy Phillips/HOU/ECT@ECT, Loretta
Brelsford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sue Ford/HOU/ECT@ECT, Dolores
Fisher/NA/Enron@Enron, Karen Owens/HOU/EES@EES, Dorothy Dalton/Enron
Communications@Enron Communications, Jewel Meeks/Enron Communications@Enron
Communications, Christina Grow/Corp/Enron@ENRON, Lauren Urquhart/LON/ECT@ECT,
Sherri Sera/Corp/Enron@ENRON, Katherine Brown/Corp/Enron@ENRON, Pam
Benson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jana Mills/HOU/ECT@ECT, Liz M
Taylor/HOU/ECT@ECT, Judy G Smith/HOU/EES@EES, Bobbie Power/Corp/Enron@ENRON
cc: Suzanne Danz/Corp/Enron@ENRON, Videoconference@enron, Vanessa
Groscrand/Corp/Enron@ENRON
Subject: EXECUTIVE COMMITTEE MEETING - MONDAY, JULY 10

Executive Committee Weekly Meeting
Date:  Monday, July 10
Time:  11:00 a.m. (CDT)
Location: 50th Floor Boardroom
Video:  Connections will be established with remote locations upon request.
Conf call: AT&T lines have been reserved.  Please contact Sherri Sera
(713/853-5984)
  or Katherine Brown (713/345-7774) for the weekly dial-in number and
passcode.

Please indicate below whether or not you plan to attend this meeting and
through what medium.

 Yes, I will attend in person _______

 By video conference from _______

 By conference call  _______

 No, I will not attend  _______

*  *  *

Please return this e-mail to me with your response by 12:00 p.m., Friday,
July 7.

Thank you,
Katherine


I'm going to Jay Blaine's taylor at 6:30 PM, maybe after.

	From:  Jim Homco                           11/29/2000 12:14 PM

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

Is meredith buying us a drink tomorrow ?


Dear Susan,

We have great news for you!

7 of your old friends from University Of Texas - At Austin have
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Return to http://Gradfinder.com to see who's new from your school:

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 * Post and reply to messages
 * Organize a class reunion
 * Contact other members safely and anonymously

You can login using:

   Email: sscott5@enron.com
   Password: <can be requested from http://gradfinder.com>

If you have any further questions, please contact our friendly
Customer Support staff at team@gradfinder.com

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

GradFinder is anti-spam. This email was sent to you
in association with your email address, sscott5@enron.com,
and membership at http://gradfinder.com.  If you wish
to remove your account, just login and follow the links.
---------------------------------------------------------------


I am preparing for Mike Burke's signature resignation notices that provide
for his resignation as an officer of various EOTT entities.  Mary Ellen
Coombe has advised me that Mike will also be resigning from EOTT's Board of
Directors, so his resignation notice for EOTT Energy Corp.  will provide that
he is resigning as a director and as President and Chief Executive Officer of
EOTT Energy Corp.

Mike's resignation from EOTT's Board of Directors creates a vacancy on the
Board.  We have two (2) options.  EOTT's Board of Directors can either (a)
appoint someone to fill Mike's unexpired term or (b) reduce the number of
directors to six.   I will be preparing a unanimous consent for the EOTT
Board to sign which provides for the designation of Stan as Chief Executive
Officer and the election of Dana as President and Chief Operating Officer.
If possible, I would like to cover the issue of the vacancy on the EOTT
Board  in the same unanimous consent.

Please give me your thoughts on this "vacancy issue."


BUSINESS HIGHLIGHTS

Enron Industrial Markets
The Transaction Development group (TD) is responsible for corporate
development, transaction execution and portfolio management activities within
EIM.  TD is responsible for asset and corporate acquisitions to support EIM,s
efforts in the Forest Products and Steel industries.  TD works with EIM,s
Forest Products and Steel Origination groups to structure and execute complex
transactions for EIM,s customers.  TD also manages EIM,s equity investments,
such as EIM,s ownership position in Papier Masson, Ltee, a paper mill in
Quebec, Canada.

TD is comprised of approximately 20 professionals with a wide range of
backgrounds including investment banking, commercial banking, management
consulting, law, project development, accounting and engineering.  In
addition, the majority of the analysts and associates within EIM work in TD
since it provides a strong base of deal experience for junior members of our
organization.

Enron Freight Markets
Enron Freight Markets has continued to expand the transportation services
offered to its customers and completed several flatbed truck moves outbound
from Georgia this week.  There was a shortage of flatbed equipment supply in
this market and EFM was able to obtain more than three times the normal
margin on each move.

IN THE NEWS

"Enron's bilateral internet trading platform, EnronOnline, was launched in
November 1999 and is the largest e-commerce site on the planet based on the
value of its transactions.  As EPRM went to press, it had average daily
trading volume of $3.5 billion, accounting for nearly 50% of the company's
revenues from wholesale marketing activities." -- Energy Power Risk
Management, May 2001

WELCOME
New Hires
EIM   - Cheryl Lindeman
ENA  - Chris Bystriansky, Paula Craft, Eugene Lee, Bhalachandra Mehendale,
Sarah Wooddy

Transfers (to or within)
ENA - Grace Taylor, Steven Irvin, Dina Snow

NUGGETS & NOTES

Enron is hosting the Chicago Energy Risk Management Seminar at The Drake
Hotel in Chicago on June 14, 2001.  Topics include: Power Outlook, Natural
Gas Outlook, Hedging Strategies, Weather Risk Management and Pulp and Paper
Risk Management. The RSVP deadline is June 8th so please contact Laura Pena
as soon as possible at x 3-5376.  This is a great event for "new" as well as
established customers.  There will be a cocktail reception immediately after
the presentations.  Enron will also be hosting seminars in Atlanta, Houston,
Denver and San Francisco.  Dates to be announced soon.

Travel tip of the week:
Flights reserved through Travel Agency in the Park provide you with $150,000
of flight insurance at no additional charge.

EnronOnline Statistics
Below are the latest figures for EnronOnline as of May 29, 2001.

* Total Life to Date Transactions >  1,015,000
* Life to Date Notional Value of Transactions > $610 billion

NEWS FROM THE GLOBAL FLASH

Enron arranges first gas pipeline import into Italy
Enron has continued its pioneering activities in the Continental gas market
by arranging the first gas import into Italy.  The Italian team worked with
the Continental Gas desk to arrange this strategically important agreement
with Blugas SpA., the wholesale gas company formed by the municipalities of
Cremona, Lodi, Mantova and Pavia in north-eastern Italy.  Enron has sourced
100,000 cubic metres per day of natural gas from northern Europe to transport
to Italy, transiting it through Germany and Switzerland, despite fierce
resistance from Ruhrgas and TransitGas respectively.

Aside from isolated LNG imports by incumbent monopolies this is the first
time that any company has managed to import natural gas by pipeline into
Italy since the Italian gas sector was officially liberalised in August 2000.
The gas, which started flowing at 06.00 on Thursday 17th May 2001, will be
used to meet the needs of two thirds of Blugas' residential customers within
the four municipalities. The current contract lasts for five months.

Congratulations to Fabio Greco, Carsten Haack, Didier Magne, Michael Schuh,
Marco Lantieri and Daniela Uguccioni.

Enron in the Middle East
Enron has relinquished its stake in Dolphin Energy, the joint venture company
formed to develop gas reserves in Qatar.
Enron has agreed to transfer its 24.5 per cent stake in the project to the
United Arab Emirates Offset Group (UOG), the majority shareholder. The
agreement allows Enron to deploy capital elsewhere and gives UOG the
opportunity to seek new partners before the project moves into its next phase.

Development of the Emden/Oude gas hub moves ahead fast
An important milestone in the evolution of the new gas trading hub on the
Dutch-German
border was reached last week. Last Friday some of the major European gas
players held a meeting to officially establish the Emden/Oude gas hub.
Although Enron had already initiated the development of the Emden/Oude hub by
making a market through EnronOnline as early as December 2000, the goal of
this meeting was to set up a working group similar to the Zeebrugge focus
group who can  work on setting a legal framework for the Emden/Oude hub.

Enron was elected as the only new market entrant in this group, reflecting
the high level of respect industry peers have for Enron as a major player in
the Continental gas market -- even from incumbents!

LEGAL STUFF
The information contained in this newsletter is confidential and proprietary
to Enron Corp. and its subsidiaries.  It is intended for internal use only
and should not be disclosed.


----- Forwarded by Tana Jones/HOU/ECT on 10/30/2000 05:04 PM -----

	Bradley Diebner
	10/30/2000 04:43 PM

		 To: Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Bernice Rodriguez/HOU/ECT@ECT,
Brant Reves/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, David
Hardy/LON/ECT@ECT, Lesli Campbell/HOU/ECT@ECT, Molly Harris/HOU/ECT@ECT,
Cynthia Clark/Corp/Enron@ENRON, Mary G Gosnell/HOU/ECT@ECT, Enron Europe
Global Contracts and Facilities, Enron Europe Global CounterParty, Stephanie
Sever/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT, Stacey
Richardson/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Adnan Patel/Corp/Enron@ENRON,
Claudia Clark/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Lisa
Lees/HOU/ECT@ECT, Juana Fayett/Corp/Enron@Enron, Jana Morse/Corp/Enron@Enron,
Trang Le/HOU/ECT@ECT
		 cc:
		 Subject: EOL 10/30/00

Here are the approvals for 10/30/00


CALENDAR ENTRY:	APPOINTMENT

Description:
	Weekly Priority Mtg./Raetta

Date:		12/20/2001
Time:		9:30 AM - 10:30 AM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Group,

Our discussion forum notes as a group are significantly improved in the past
3 weeks in many areas.  I believe communication in the group at shift changes
is improving and is quite good in general.  However, there is always room for
more improvement.  Specifically, other traders in the group and on the floor
would benefit from more detailed information regarding outages.  Please try
to include the reason for a plant derate as well as the ETR when a unit is
lost.  I would also highly recommend notifying the cash desk in the region
affected by the outage, either by email or verbally.  An important outage was
recently missed by both the real-time group and another cash desk on the
floor.  Real-time had ready access to the information concerning the outage
but did not pass that information on to others in the group at the shift
change or others on the floor.  In this case, such poor communication simply
made us look foolish.  We work hard for (and justly deserve) the solid
reputation we have on the floor.  Let's make sure we do the little things to
maintain it.

Again, keep up the good work.
Bill


Shirley,

I shall come. I shall bring a cake.
I may be late, coming around 2:00.
I expect some people who will
come to give me an estimate
and they come when they come.

Vince


---------------------- Forwarded by Darron C Giron/HOU/ECT on 02/15/2001
10:23 AM ---------------------------

From:  Veronica Espinoza @ ENRON
               02/15/2001 09:47 AM

To: Larry Joe Hunter/HOU/ECT@ECT, Bob Bowen/HOU/ECT@ECT, Kim S
Theriot/HOU/ECT@ECT, Melinda Whalen/CAL/ECT@ECT, Dianne Seib/CAL/ECT@ECT,
Janie Aguayo/HOU/ECT@ECT, Derek Bailey/Corp/Enron@ENRON, Kevin
Meredith/Corp/Enron@ENRON, Ellen Wallumrod/NA/Enron@ENRON, Celeste
Cisneros/NA/Enron@Enron, Diane Anderson/NA/Enron@Enron, Tiffany
Williams/NA/Enron@Enron, Cindy Feldman/CAL/ECT@ECT, Patricia
Boulanger/CAL/ECT@ECT, Linda Sietzema/CAL/ECT@ECT, Sharon
Crawford/CAL/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Tanya
Rohauer/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT,
Russell Diamond/HOU/ECT@ECT, Lesli Campbell/HOU/ECT@ECT, Nidia
Mendoza/HOU/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT, Kam Keiser/HOU/ECT@ECT,
David Baumbach/HOU/ECT@ECT, Errol McLaughlin/Corp/Enron@ENRON, Darron C
Giron/HOU/ECT@ECT, Walter Guidroz/NA/Enron@Enron, Leslie Reeves/HOU/ECT@ECT,
Veronica Gonzalez/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Jean
Bell/HOU/ECT@ECT
cc:
Subject: Credit Report--2/15/01


Here is the latest presentation Don and I have put together.  I will be out
till Jan 2nd so have a good holiday.  Thanks
Ben


Kathy/Brian,

Here is the new text file format.  This will enable you to send only one text
file each night.  If you have any questions give me a call.

Thanks,
Robin
57478


Jason-

What is up?  My datebook says it is your birthday (I always write
yours and Tara's in at the same time 3/8 and 3/18...they are easy
to remember that way...random.)  Anyway, I have not had a chance
to shop, so I was thinking of making you some kleenex box shoes.
Sounds good right?

Stop by Matt's for a beer sometime...I have not seen you since
we played TP...I won right, jk.

Later,
Tami


Lisa,

I've made some preliminary suggestions on the term sheet. We will have some
comments on the asset management attachment, but I don't have those together
yet.

In looking through our files I don't find a confidentiality agreement.
Therefore, I'm attaching a draft of what we would like to have executed so
that we can send you other documents.

Thanks,

Kay


Attached is the CSC TTC & ATC calculations and backup data performed by
Henrik Roycourt.

Your cooperation in this matter is appreciated.

Kenneth A. Donohoo, PE
Manager of System Planning, Technical Operations
ERCOT
2705 West Lake Dr.
Taylor, TX 76574-2136
(512)248-3003, FAX(512)248-3082

The Electric Reliability Council of Texas, Inc. is the
corporation that administers the state's power grid. ERCOT
serves approximately 85 percent of the state's electric load
and oversees the operation of approximately 70,000 megawatts
of generation and over 37,000 circuit miles of transmission
lines.

?
 - ATC_TTC_year01_onpeak_ToBePosted.zip


Please note the following meeting set for tomorrow:
 Date: 02/01/01
 Time:10:30 until 11:30
 Subject: ETS
 Invitees: Susan Scott
       Drew Fossum
       Gerald Nemec
 Chair: Mark Knippa

Please feel free to contact me with any questions that you may have.

Thank you,
Lacye Trevino
713-853-4887


Start Date: 3/7/01; HourAhead hour: 21;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001030721.txt
###Cannot locate a Preferred or Revised_Preferred Schedule that matches the
FINAL Individual Interchange Schedule.  Unable to assign deal number.


---------------------- Forwarded by Scott Neal/HOU/ECT on 08/14/2000 05:07 PM
---------------------------

Scott Neal
08/14/2000 05:05 PM
To: William Kelly/HOU/ECT@ECT
cc:
Subject: Re: CES Update

fyi.

Please follow up to make sure these $ are going to the correct p&l.

---------------------- Forwarded by Scott Neal/HOU/ECT on 08/14/2000 05:02 PM
---------------------------
From: Molly Sumrow on 08/14/2000 04:35 PM
To: Robert Superty/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT
cc:
Subject: Re: CES Update

The first invoice for $5.4 million went out a couple of weeks ago.  CES came
back to us and said they were not going to pay.  They claimed that the total
of all of the invoices to this date that they have already paid had covered
that amount.  I have researched all of their invoices, and it looks like
there was a demand invoice in the system for the month of June for
approximately $6 million to much.  CES incorporated a credit for that invoice
in with the charge for $5.4 million, netting out to approximately $600,000.
I am meeting with CES on Thursday to see if we are in agreement.  The other
invoice for $7.5 million was sent out last week, CES is in agreement and the
payment should be here shortly.
   If you have any questions don't hesitate to call me.

Molly
x34249

Robert Superty
08/14/2000 04:06 PM
To: Molly Sumrow/HOU/ECT@ECT
cc:
Subject: Re: CES Update

Molly, please see Scott's note below and give us an update.

Thanks - Bob
---------------------- Forwarded by Robert Superty/HOU/ECT on 08/14/2000
04:01 PM ---------------------------

Scott Neal
08/14/2000 03:18 PM
To: Robert Superty/HOU/ECT@ECT
cc:
Subject: Re: CES Update

What is the status of these invoices/payments?

Robert Superty
08/03/2000 04:02 PM
To: Sally Beck/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT, Brent A
Price/HOU/ECT@ECT, Bryce Baxter/HOU/ECT@ECT
cc: Molly Sumrow/HOU/ECT@ECT
Subject: CES Update

FYI - ongoing CES reconciliation. At this point we will be receiving app.
$5.4M (invoice sent on 7/27) with another $7.5M to be billed to them next
week.

Still more to come, for details read the attached from Molly.

Bob
---------------------- Forwarded by Robert Superty/HOU/ECT on 08/03/2000
03:52 PM ---------------------------

	From:  Molly Sumrow                           08/03/2000 03:47 PM

To: Robert Superty/HOU/ECT@ECT, Victor Lamadrid/HOU/ECT@ECT, Beverly
Beaty/HOU/ECT@ECT
cc:
Subject: CES Update

Attached is the current status of the CES reconciliation.  Please call me if
you have any questions.

Thank You,

Molly


Houston, TX Hobby
 Jacksonville, FL
 $92
 each way

 Midland/Odessa, TX
 $52
 each way

 Nashville, TN
 $66
 each way

 New Orleans, LA
 $40
 each way

 Tampa Bay, FL
 $92
 each way


you guys should be up here

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 10:43 AM
To:	Maggi, Mike
Subject:	RE:

all you have to do is come down the escalator silly.  how hard is that?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 10:42 AM
To:	Nelson, Michelle
Subject:	RE:

i dont know its a long way

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 10:41 AM
To:	Maggi, Mike
Subject:	RE:

on our floor?  ofcourse.  why wouldn't you be?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 10:40 AM
To:	Nelson, Michelle
Subject:

so am i allowed down there


John,

As per Steve Kean's request, please find attached the documents that I
currently have on my system.  Hal Means and I are working together to manage
the flow of documents and to ensure everyone on the Project Teams is on the
same page.  Therefore, Hal will cross-reference with my documents and send
you the documents that you are missing.

Please let Hal and me know if you would like a master binder created (it will
be exactly like the binder that the Project Team currently has).  This would
ensure that your tabs, and documents within the tabs, would exactly mirror
the project team's binders.  If so, in the future we will send you additional
documents indicating which tab it should be inserted after.

Note to Hal Means: Please cross-reference with the attached documents and
forward any that are not included in this email.


5:30

 -----Original Message-----
From: 	Lavorato, John
Sent:	Tuesday, October 23, 2001 10:35 AM
To:	Mckay, Jonathan
Subject:	RE: Run?

yes

 -----Original Message-----
From: 	Mckay, Jonathan
Sent:	Tuesday, October 23, 2001 12:26 PM
To:	Lavorato, John
Subject:	Run?


Well, I'm finally settled in over here at Dynegy.  It sucks going back full
time and they don't have a gym.  I'm going to talk to my manager about
working out during lunch because there is no way I can after work.  Anyway,
I was looking at the Enron gym schedule and there are a few classes that
last 30 minutes.  That would work for me!  It's not really enough, but it
will have to do.
So far, so good.  I think the job will be interesting and I'm excited about
the experience.  Working full time is just really hard for me right now.
If I quit, or try to find another part-time position, I think I would be
shooting myself in the foot.  This is a great opportunity to get experience
if I can hack for at least a year.  I am going to approach them about a
9-80 schedule, though.  We'll see.  I'm supporting the traders, so that
might be difficult.
Let me know when you want to get together for lunch.  I have plans Thursday
and Monday so far.  By the way, did you ever have your housewarming party?
I saw that in my calendar and realized we never talked to you further about
it.  Things were pretty chaotic the last few weeks.

Hope all is well!
Jana
713-767-0495


just wanted to say goodbye. i truly appreciate all you've done for me. you've
been a great manager. i hope you'll keep in touch and let me know if you are
ever in san francisco. good luck with whatever you decide to do.

take care,
ami


Hi Joe & Jackie-
Joe, when I spoke to you last night, the email below is what I wanted Jackie
to see.  Also I can't put my finger on Jerry and Danise's #.  Will you guys
forward this message to Danise for me.  Thanks a lot and I look forward to
seeing you guys on Wednesday.

God Bless,
Dana
---------------------- Forwarded by Dana Davis/HOU/ECT on 10/10/2000 11:20 AM
---------------------------

"Moore,Denise I" <denise.moore@dhs.state.tx.us> on 10/09/2000 02:12:55 PM
To: abraham5@flash.net, cmontgomery@kmg.com, ddavis@enron.com,
bettynance@dellnet.com, cashley@poha.com, hill8314@aol.com,
editherica@aol.com, gjack3@hotmail.com
cc:
Subject: Blue Jean Shirts

All,

      Here is the information on the blue jean shirts.  The exact price is
as follows:

M - XL         $22.65
XXL             $23.90
XXXL           $25.15

Please turn in your money to me as soon as possible.  The total for all the
shirts we have ordered is $551.  I have already made arrangements to pay for
half up front, due to such a high dollar order.

Pass the word on to those not on e-mail (Evelyn Morris, Evelyn Jackson, Nina
Nazir-ud-Din, Pamela Watts, Annette Richardson, Georgia Gillum, Danise
Johnson, Jackie Stewart, Marylyn Green, Ethel Ford, Cheryl Sumbler, and
Cheryl Curry). We need to try and have the money by Powertime on Wednesday.
If you need an accomodation, please let me know.

If you know of anyone else wanting a shirt, please get with me as soon as
possible.  I thought maybe the following might want a shirt (Rev Jacque,
Bobbie Poledore, Katherine Dailey, Valerie Piper).  It would be nice if all
women had one.

Also, thank Joe Stewart when you see him, for making all the arrangements
for us.

Thanks,
Denise


you dont like my ideas

"Eva Pao" <epao@mba2002.hbs.edu> on 05/09/2001 05:06:50 PM
Please respond to <epao@mba2002.hbs.edu>
To: <John.Arnold@enron.com>
cc:
Subject: RE: in

i'll call

-----Original Message-----
From: John.Arnold@enron.com [mailto:John.Arnold@enron.com]
Sent: Sunday, April 29, 2001 8:15 PM
To: epao@mba2002.hbs.edu
Subject:

pookie:
check this out:
www.sailmainecoast.com/index.html


Hey Ben! It's your Ma!? We just got back from  a nice dinner in Boston. It
was good to get out. We're going over to the  Vineyard for the weekend, if
you're looking for us. Do you have Monday  off?? Kara is home now. You might
want to give her a call. I think she's  glad to be home but she has a lot to
go through before she's in good  shape.? Have a good weekend! Love ya, Mom


Dave,

Greg is requesting Enron Americas' 2001 Goals & Objectives (no more than 3 to
4 each) asap.

Many Thanks,

Liz Taylor x31935


I am very interested in pursuing this and I believe Enron presents an ideal
case study for the purposes you outlined.  I am copying Christie Patrick on
this message and asking her to coordinate this for us.  Christie has worked
on other case studies and will be very helpful in navigating Enron for you.

	Don Sull <dsull@hbs.edu>
	11/03/2000 10:46 AM

		 To: skean@enron.com
		 cc: pmarshall@hbs.edu, wsahlman@hbs.edu
		 Subject: Possible Harvard Business School event

Steve,

Wanted to thank you again for reviewing the strategy as simple rules
article.  It is forthcoming in the next Harvard Business Review and will send
you some reprints once the magazine hits the newsstands.

Also wanted to gauge your interest in a possible even at the Harvard Business
School in April 2001.  We are currently finalizing our plans for the
Entrepreneurial Manager--a first year course on entrepreneurship taken by all
1,000 of our MBA students.  As part of the course, we will feature an
entrepreneurial company as the capstone class in the course.  Last year we
featured Intuit, taught an Intuit case study and hosted Scott Cook who spoke
to the entire MBA class.  The session was a huge success--the highest rated
class in our course and had a lasting impact on how our students think about
entrepeneurship.  We were wondering whether you and your colleagues might be
interested in being our featured company this year.

If you decided to proceed, we would first write a case study focused on the
process of creating new ventures within Enron.    The case would probably
consist of three portions:  an overview of the Enron corporation, an in-depth
description of one or two ventures successfully formed in the past, and a
profile of someone currently attempting to start a new venture within
Enron.   In preparing the case, we would draw heavily on existing case
studies, articles, and book chapters profiling Enron to avoid duplicating
effort.   We would then supplement our desk research by interviewing
approximately 15-20 Enron employees, including top management team members
(especially Ken Lay and Jeff Skilling), some folks involved in past ventures,
and the people currently attempting to start a new venture.  Each interview
would take approximately 60 minutes.  We could probably complete the bulk of
the interviews in a two to three day visit to Enron, supplemented by
telephone interviews.  The ideal timing for these interviews from our
perspective would be the last week of November or the first few weeks of
December.  We would then return to Boston, write a draft of the case and then
submit that to you for review and clearance in January.  We could then make
any last minute changes before distributing the case to the students for the
April discussion.

In addition to writing the case study, we would like to invite a group of
Enron executives to HBS when we discuss the case in April.    The ideal date
would be the 27th of April, but we could schedule the Enron day the 23rd,
24th or 25th if the 27th were impossible for you.  Last year Intuit sent
along six folks--some junior, some senior--each of whom sat in at least one
of our class discussions.  In addition, Scott Cook spoke to the entire MBA
class.  We would like to follow the same format this year, so it would be
super if either Jeff or Ken (or in the best of all worlds, both!) could speak
to the MBAs as a whole.  With Intuit last year, we kicked off at about 8:30
and wrapped everything up by approximately 1:00.  We would shoot for roughly
similar timing this year.

Many of our students equate entrepreneurship with start-ups, and this day is
designed to show them that it is possible (although extremely difficult) for
large companies to be entrepreneurial.  As such, you and your colleagues
would be providing an invaluable service to our students, and we would be
deeply grateful for your contribution.  The event might also have some direct
benefits to Enron in terms of increased profile among our students.  If you
were interested, we could also explore opportunities to leverage this event
to further increase Enron's profile as a leader of the New Economy.  We
might, for instance, bundle the case study with a teaching note and edited
video as a module on "entrepreneurship in large companies" and distribute it
to other business schools through Harvard Business School press.  My
colleagues and I would be most grateful for your cooperation and would be
happy to explore ways that you might increase your return on the time
invested.

Please let me know if this opportunity might be of interest to you and your
colleagues and how you would like to proceed.  I very much look forward to
hearing from you.

Don

Donald N. Sull
South Hall 211
Harvard Business School
Boston, MA  USA  02163
dsull@hbs.edu
telephone:  617 496 7179
fax:  617 495-3817
home page:  http://www.people.hbs.edu/dsull/bio.html
assistant:  Maurie SuDock (617 495-6473)