Democrats Prepare to Duel Bush Over Energy Price Caps in West
The Wall Street Journal, 06/01/01

Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
Los Angeles Times, 06/01/01

Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
The Wall Street Journal, 06/01/01

Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
The Wall Street Journal, 06/01/01

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL
Asia Pulse, 06/01/01

GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001

INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS
Asia Pulse, 06/01/01

Thomas E. White becomes Secretary of the Army
M2 Presswire, 06/01/01

Some light at last!
The Economic Times, 06/01/01

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
Associated Press Newswires, 06/01/01

California Lawmakers Eye Billing Businesses for Edison Rescue
Dow Jones Business News, 05/31/01

Construction of power plant in DeSoto County is underway
Associated Press Newswires, 05/31/01

Politics & Policy
Democrats Prepare to Duel Bush Over Energy Price Caps in West
By John Harwood and Jeanne Cummings
Staff Reporters of The Wall Street Journal

06/01/2001
The Wall Street Journal
A16
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -- If you talk to economists, many will say President Bush is on
solid ground in opposing caps on soaring electricity prices in California and
elsewhere. But if you talk to voters, many will suggest he has political
problems.
And now that Democrats control the U.S. Senate, they are poised to make those
problems a lot worse.
Mr. Bush got a taste of what is coming in his widely touted showdown with
California Gov. Gray Davis in Los Angeles this week. The Republican president
repeated his familiar argument that capping wholesale electricity prices
would do nothing to curb demand or increase the supply of power for
California. But the Democrats' Mr. Davis, fortified by polls showing that 70%
of Californians favor price caps, managed to get equal billing during Mr.
Bush's visit for his argument that they are needed to keep the state from
slipping into recession and threatening the national economy in the process.
Because Sen. Jim Jeffords of Vermont left the Republican Party last week and
changed control of the Senate, Democrats now have a more effective national
platform to press the same arguments -- and to threaten Mr. Bush's political
standing beyond the already hostile turf of California. The incoming chairman
of the Senate Energy and Natural Resources Committee, Democratic Sen. Jeff
Bingaman of New Mexico, says he plans to move soon on legislation capping
prices for California and other Western states, a bill that has attracted
some GOP support as well.
"I think it's clear to anybody that the prices being charged for wholesale
power are excessive," said Sen. Bingaman, in an interview while he was
heading toward California on a fact-finding mission. "I don't believe it's
going to be adequate to get us through this summer, to just continue saying
that eventually supply will come into line with demand and the problems will
be resolved."
Meantime, the incoming chairman of the Permanent Subcommittee on
Investigations, Democratic Sen. Carl Levin of Michigan, plans to investigate
the role of oil companies in higher gas prices. "This is the manipulation of
prices, and we've got to investigate it because our people in Michigan are
absolutely furious," Sen. Levin says. Just as Republicans once used the
machinery of Congress to probe then-President Clinton's problems, Democrats
see ripe opportunities for embarrassing an ex-oilman president with strong
links to Texas energy-producing companies that are profiting from today's
supply squeeze.
During the 2000 presidential campaign, five of the major companies now
supplying power to California -- Duke Energy Corp., Dynegy Inc., Enron Corp.,
Reliant Energy Inc., and Williams Cos. -- gave some $3.6 million to Mr. Bush
and the GOP, more than triple the amount donated to Democrats. Three of those
companies are based in Mr. Bush's home state of Texas, which only adds to the
political tensions.
The Democratic offensive has the GOP worried. Price caps amount to "terrible
policy, but good politics," frets Republican pollster Neil Newhouse. Mr. Bush
now faces "a difficult job" overcoming the Democratic arguments for caps, he
adds, because "control of the Senate has given them a megaphone on issues
that they just didn't have before."
That doesn't necessarily mean Mr. Bush ultimately will suffer grave damage.
As congressional Republicans learned to their chagrin in battles with Mr.
Clinton, the presidential bully pulpit remains the most potent weapon in
American politics for framing policy debates. Even with that advantage,
though, the Clinton administration found that the initial appeal of arguments
on issues such as tobacco regulation and prescription drugs faded under
sustained counterattack by Republicans and affected industries.
And so far, polls are showing that Mr. Davis also is paying a political price
in California for the crisis. Still, Mr. Davis, who faces re-election next
year and may later seek the 2004 Democratic presidential nomination, believes
he can limit the damage by emphasizing his efforts to expand supply and
spotlighting the actions of energy companies in Texas and elsewhere. On CNN's
"Larry King Live" this week, he complained that "money sucked out of this
state" amounts to "a massive transfer of wealth" from Californians to the
industry.
Whatever the political ramifications, they aren't limited to California.
Consumers in Washington, Idaho and Montana that are serviced by the same
electric grid have seen 30% increases in their utility rates. That is why Mr.
Davis, with support from some GOP governors in the West, is asking the
Federal Energy Regulatory Commission to impose short-term wholesale price
caps to help protect electricity consumers from soaring rates until new power
plants approved for construction in California increase supply enough to
bring prices down through market forces. California Democratic Sen. Dianne
Feinstein and Oregon Republican Sen. Gordon Smith are offering legislation to
accomplish that in the committee that Mr. Bingaman now will chair.
As a matter of policy, most economists probably would agree with Mr. Bush's
free-market position on price caps, though that sentiment is hardly
unanimous. As he met with the president this week, Mr. Davis released a
letter from 10 prominent economists backing price caps as a temporary remedy
for a market "not characterized by effective competition." One of the
signatories was Alfred Kahn, architect of airline deregulation under
President Carter.
But Bush economic advisers, heeding the free-market arguments that have held
the high ground in regulatory policy debates since the Reagan era, insist
that such caps would distort the energy market and be difficult to abandon
even when market conditions turn more favorable for consumers. "Price caps do
nothing to reduce demand, and they do nothing to increase supply," Mr. Bush
said in California this week.
Mr. Davis says the Federal Energy Regulatory Commission is obliged under law
to assure "just and reasonable" prices, and he says he will sue the agency to
force it to act despite the dismissal earlier this week of a similar lawsuit
filed by California's Democratic legislative leaders. Whether the governor's
effort succeeds, it could provide another forum in which supporters of price
caps can make their case. In discovery, for instance, California attorneys
may be able to get industry data on how much the wholesalers are paying to
produce electricity and their real costs of delivering it.
Such transactions are drawing attention because of the significantly higher
prices being charged in California compared with other states. This week, for
instance, the price of a million British Thermal Units of natural gas in the
San Juan Basin in New Mexico was $2.80, said one economist for the Senate
Energy Committee. But when that gas arrived at the Southern California
border, she said, the price was $10.20 per million BTUs.
Mr. Bush himself voiced concern about such differentials in his meeting with
Mr. Davis, and ordered the FERC to step up monitoring for price gouging. He
has designated Pat Wood, a recent FERC appointee who headed the Texas Public
Utilities Commission during his governorship, as the administration's lead
liaison to California.
Mr. Wood, in fact, could end up an increasingly important player as the
crisis in California and other Western states plays out this summer. Mr.
Wood, who supported some price caps in Texas, is considered more flexible on
the issue than is FERC's current chairman, free-market champion Curtis
Hebert. During his confirmation hearings, Mr. Wood said it may be too late
for price caps because the commission would need months to study materials
and determine an appropriate market rate.
If the administration continues resisting caps, Democrats vow to score
political points heading into the 2002 congressional elections. "Bush is the
individual who ginned this up into a crisis" by frequently calling attention
to the nation's energy problems, says Jim Jordan, executive director of the
Democratic Senatorial Campaign Committee. "Yet the administration won't
consider any serious short-term action to alleviate the problem for the
public."
--- Energy Problems?

Public views of President Bush and energy problems, nationally and
among Californians:

Nationally
Q: In general, do you approve or disapprove of the way President Bush
is handling his job as president?

Approve 52%
Disapprove 38%

Q: Based on what you have read or heard, do you favor or oppose
President Bush's plan to deal with the country's current energy
problems?

Poor job 49%
Good job 38%

Q: How do you think President Bush is handling energy?

Oppose 42%
Favor 38%
Unsure 20%

In California
Is it a good or bad thing for the federal government to cap energy
prices?

GOOD THING BAD THING NO OPINION

All adults 70% 24% 6%
Registered voters 68 26 6
Democrats 79 17 4
Republicans 57 37 6
Other 63 29 8

Sources: National poll numbers from CNN/Time poll; California numbers
from the Field Poll

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

California; Metro Desk
Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
RICH CONNELL; ROBERT J. LOPEZ
TIMES STAFF WRITERS

06/01/2001
Los Angeles Times
Home Edition
B-1
Copyright 2001 / The Times Mirror Company

California officials are probing a vast private network of electricity
trading floors suspected of being a central culprit in California's spiraling
energy prices.
A special state Senate panel investigating alleged manipulation of the energy
market is zeroing in on hundreds of thousands of secretive transactions each
year that help determine whether California will have the power it needs--and
what it will have to pay to get it. Those activities also are central to a
lawsuit by the San Francisco city attorney, who has accused power companies
of using unfair business practices to reap huge profits from the state's
volatile and vulnerable energy market.
A single electron may be traded nearly a dozen times, often at escalating
prices, before reaching California. By then, the actual cost of producing the
electricity may have no relation to its price.
Unlike other commodity and stock exchanges, the frenzied daily activity on
the energy trading floors escape any independent oversight, which critics
contend makes the operations ripe for collusion and price-fixing.
"They're playing the California power game," said attorney Michael Aguirre, a
former federal prosecutor now suing power companies on behalf of Lt. Gov.
Cruz Bustamante. "The trading is the epicenter of the whole enchilada. They
trade and inflate the value."
Power company representatives say their trading floors operate legally and
ethically. "I don't think there has ever been the slightest shred of evidence
[of] something illicit or wrongdoing," said Gary Ackerman of the Western
Power Trading Forum, an industry trade group.
Ackerman and players in the market say prices are not always ratcheted up
through the trading. Often, they say, traders can match supply and demand to
help stabilize prices through daily transactions and long-term contracts.
Still, Aguirre and others say, these sophisticated trading operations have
outmaneuvered bureaucrats at Cal-ISO and the state Department of Water
Resources, the agencies responsible for buying billions of dollars worth of
power over the past several months.
The sprawling trading floors, scattered across the country, are marvels of
high technology. Amid banks of computers and huge wall screens that track
weather, electricity prices and demand across vast regions, mathematicians,
meteorologists and rows of gung-ho traders try to optimize profits buying and
selling one of the world's most volatile commodities.
"These are trading floors that are well outside any regulatory format," state
Sen. Joseph Dunn (D-Santa Ana) said Thursday. "What impact do these trading
floors have on the situation in California?"
Plant Operations Also Scrutinized
Although trading floors are an important focus of state authorities, the
probes of the power companies include an array of issues. Investigators are
digging into the operations of power plants to determine whether unnecessary
shutdowns have been used to tighten supplies and hike prices. Dunn, a onetime
consumer attorney, is heading the Senate investigation panel that is trying
to unravel these issues and the role of the trading floors, operated by the
nation's largest power marketers: Enron, Mirant, Duke Energy, Dynegy Inc.,
Williams Cos. and Reliant.
The committee is seeking records that could determine whether the power
companies have swapped information on trading tactics to maximize prices.
Among dozens of categories of documents Dunn's committee has requested--and
may ultimately subpoena--are computer records from trading floors, recordings
of communications between traders for different companies and training
manuals for traders.
"We know one product of that trading is it drives up the price. . . . What
are you trading for, other than to drive up the price?" Dunn said in a recent
interview.
His committee, which has yet to uncover any wrongdoing, is battling with the
power companies to obtain information the firms insist is confidential.
San Francisco City Atty. Louise H. Renne also is focusing on trading-floor
activity.
"That is a central concern of ours," said Owen Clements, Renne's chief of
special litigation. Clements suspects power traders may be "churning"
megawatts through repeated sales and boosting prices.
"If everyone passes it around and makes a profit, and the ratepayer and the
state of California are stuck with the bill . . . that certainly looks like
an unfair business practice," he said.
A spokesman for Houston-based Enron, which operates one of the busiest
trading operations, said critics misunderstand the energy market, where
profits are not necessarily tied to high prices.
"We're agnostic about the direction of prices," Mark Palmer said. "We make
money one way or the other." He said the trick is in having a diversified
portfolio--and offering unique risk services--to absorb the changing market.
Palmer said those implying misconduct on the trading floors are "100%
politically motivated. . . . These are folks who want to return California to
[power] regulation."
Still, some industry officials acknowledge that some additional oversight of
trading floors may be needed. Ackerman, of the power trading association,
said his members have asked federal regulators to consider an auditing
program to review trading activities.
"If people don't have confidence in trading floors," Ackerman said, "that's a
problem."
*
Times staff writer Miguel Bustillo contributed to this story.

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

World Stock Markets
Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
By Jesse Pesta
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
C11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -- Foreign companies are on a shopping spree in India's stock
market, buying up their own affiliates and hoping to take them private.
In recent weeks, companies ranging from Otis Elevator Co. and Carrier Corp.,
both of Farmington, Conn., to Hoganas AB of Sweden, a player in the global
iron-powder business, have made open offers for the shares of their Indian
units, sometimes at prices that suggest they consider themselves a bargain.
Boston chemicals maker Cabot Corp. offered 100 rupees ($2.13) a share for
Cabot India Ltd. at a time when it was trading around 55 rupees.
Royal Philips Holland has offered to buy the 17% of light-bulb maker Punjab
Anand Lamp Industries it doesn't already own, according to Punjab. Otis and
Carrier, which are units of United Technologies Corp., Hartford, Conn., have
offered to buy all shares outstanding of their Indian affiliates, Otis
Elevator Co. (India) Ltd. and Carrier Aircon Ltd. The price for Carrier
shares was a nearly 100% premium to the stock's price prior to the offer.
The buybacks have triggered a surge in the stocks of other companies with a
foreign pedigree. Companies including Rayban Sun Optics India Ltd. (a unit of
Bausch & Lomb Inc., Rochester, N.Y.) and Philips India Ltd. (a unit of Royal
Philips Holland) have seen share prices rise as much as 40% or more since the
mid-May offers for Otis and Carrier, which were two of the early ones in the
current wave.
Both Rayban and Philips India deny open offers are planned. In any case,
Philips already boosted ownership in its Philips India unit to 83% from 51%
late last year.
In contrast to the surging shares of multinationals since mid-May, the Bombay
Sensitive Index has risen only 1.56%. It closed yesterday at 3631.91, down
30.13.
The trend has several drivers. For one thing, Indian stocks remain battered
after a rash of big market scandals earlier this year. Meantime, taking a
company private means it no longer is required to share as much information
about its business either with the market or a local partner. "In tough times
it will safeguard your interest," says Jignesh Shah, strategist at Ask-RJ
Investment Management in Bombay.
But most significantly, India has slowly made it easier in recent years for
foreigners to invest. Indeed, the buyback trend contrasts with the feud
between Dabhol Power Co. and its customer, the Maharashtra State Electricity
Board, over unpaid electricity bills. Dabhol, which is 65%-owned by Houston's
Enron Corp., is India's largest foreign investment and an emblem of the
difficulties foreign companies have encountered through the years. But the
buyback trend "works against the story of negative foreign-investment
environment" in India, one analyst notes.
As a rule, the companies play down the importance of stock price. Hoganas's
buyback for instance reflects the company's global strategy, but reflects as
well on a liberalizing India: Everywhere else in the world Hoganas owns 100%
of its subsidiaries, even Japan and China, says Virendra Sud, managing
director. But India didn't allow full foreign ownership 15 years ago, when
the company came here, he says, or else "we would have done it then." It's
purely coincidental that the buyback comes just as the stock market "has sort
of hit rock bottom," he says.
Otis attributes its buyback partly to India's growing appetite for more
sophisticated elevators, which means transferring advanced designs here.
Technology transfer heightens the need for closer cooperation with the
parent, says Managing Director Ashok Malhotra. But the company's reason for
going public in the first place sheds light on the regulatory cycle playing
out today in India. In the 1970s, India went through a phase of requiring
foreign companies to be part locally owned, so Otis made the public offer
that it is trying to undo today. "You have to work under the rules of the
time," Mr. Malhotra says.
---
Yesterday's Market Activity
Nasdaq's losses overnight pressured markets throughout Asia as Tokyo blue
chips tumbled 1.7% and South Korea's benchmark index fell 2.6%. European
markets rebounded somewhat from the previous day's declines, though volume
was thin. Overall, the Dow Jones World Stock Index rose 0.10%, or 0.20, to
195.33. Excluding the U.S., the index fell 0.68%, or 0.96, to 141.08.
In TOKYO, the Nikkei Stock Average was down 1.7%, or 231.21 points, to
13262.14. Nomura Securities downgraded its ratings on Fujitsu, Toshiba and
NEC, causing a broad slump in technology shares. Fujitsu ended down 2.8% at
1,543 yen, NEC slumped 3.9% to 1,947 yen, and Toshiba fell 3.6% to 675 yen.
In HONG KONG, the Hang Seng Index ended down 1.8%, or 245.72 points, at
13174.41. China Mobile fell 2.8% or 1.1 Hong Kong dollars to close at
HK$37.80. Property concern Cheung Kong dropped 3.4% to HK$85 and Sun Hung Kai
finished down 2.4% at HK$72.75.
In LONDON, the FTSE 100 Index slipped 0.01%, or 0.8 points, to 5796.10.
Services company Rentokil Initial surged 12.9% to 215 pence after it said
sales from continuing businesses were up 7.1% and operating profit was up 9%
year on year. It also said it has bought back 120 million of its own shares
since March. Invensys closed 6% higher at 142 pence after posting results in
line with expectations. Retailer Boots ended 3.5% higher at 597 pence after
posting earnings results in line with expectations.
In PARIS, the CAC 40 Index closed up 0.2%, or 9.92 points, to 5454.19.
Alcatel closed up 2.4% to 29.95 euros following the release Wednesday of
weaker-than-expected results and the demise of merger talks with Lucent
Technologies. J.P. Morgan cut its earnings-per-share forecast for the
communications-equipment supplier. Deutsche Bank also expressed negative
sentiment about the company, saying an industry turnaround is unlikely before
the fourth quarter of 2001. Car maker Renault closed down 1.1% to 55.15
euros. Lehman Brothers cut its 2001 earnings forecast, citing exposure to
falling demand in U.S. and Europe.
--- MSCI Indexes

% FROM
May 30 May 29 12-00

U.S. ........... 1183.7 1201.5 -5.3
Britain ........ 1723.9 1744.4 -6.4
Canada ......... 1030.8 1049.4 -10.9
Japan .......... 828.4 844.2 +2.5
France ......... 1763.4 1794.3 -7.3
Germany ........ 755.2 767.4 -7.7
Hong Kong ...... 6844.0 6920.0 -11.0
Switzerland .... 939.5 946.6 -7.6
Australia ...... 700.3 702.9 +9.4
World Index .... 1120.6 1136.4 -8.2
EAFE MSCI-p .... 1325.6 1342.7 -11.2

As calculated by Morgan Stanley Capital International Perspective,
Geneva. Each index, calculated in local currencies, is based on the
close of 1969 equaling 100.

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

International
Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
By Bhushan Bahree
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
A11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

PARIS -- Exxon Mobil Corp. and the Royal Dutch/Shell Group appear poised to
win coveted leadership roles this weekend in a historic reopening of Saudi
Arabia's energy industry.
People familiar with developments said that barring last-minute upsets,
Exxon, the world's largest publicly owned oil company, will be named operator
of the largest opening being offered by the Saudis, the South Ghawar
natural-gas project that will require investment of $15 billion and is named
after the world's largest oil field, in the country's eastern province. But,
they cautioned, because Shell has been competing hotly for South Ghawar,
nothing can be taken for granted until the Saudis officially name the winners
and sign memorandums of understanding on Sunday.
As of late last night, Shell, the second largest company, was expected to win
the second prize: leadership of the Shaybah gas project, which requires
investment of $5 billion and is named after a recently developed oil field in
the kingdom's remote Empty Quarter, a southeastern desert region. Saudi
Arabia already has named Exxon leader of the third and last gas project
opened to foreign investment, the Red Sea project that requires investment of
as much as $5 billion.
Saudi Arabia's energy industry was nationalized in the 1970s, but over the
past two years has been reopened to foreign investment, prompting a fierce
contest among the world's largest oil companies. The people familiar with
developments cautioned that until the choices have been endorsed by an
11-member ministerial committee headed by Saudi foreign minister Prince Saud
al-Faisal, and given the final nod by Saudi Crown Prince Abdullah, they
couldn't be considered final.
The people said the ministerial committee met late yesterday ahead of a
formal signing ceremony planned for Sunday in Jeddah, the Saudi city on the
Red Sea coast. Such is the importance of getting into Saudi Arabia that the
chief executives of the eight companies chosen to participate in the gas
projects are flying to Jeddah to sign the memorandums, a prelude to
negotiations about fiscal and other terms. Final agreements aren't expected
until year's end at the earliest.
Officials of Exxon, Shell and the Saudi government declined to comment on the
choices made by the kingdom, which has the world's largest crude reserves and
is fifth in the natural-gas reserves after Russia, Iran, Qatar and the United
Arab Emirates. A leadership role -- or operatorship in industry parlance --
brings the opportunity to set the pace of the project and create local
networks that can prove valuable for future projects.
The kingdom still isn't allowing foreign companies into its crude-oil
business, which is run by the state-owned Saudi Aramco, but foreign oil
companies hope they eventually will be allowed into that sector, too. Indeed,
Aramco is expected to participate in the gas projects opened to foreigners,
with voting rights that have yet to be determined. The projects are
wide-ranging and encompass a long chain from exploration and production of
natural gas, to its transportation and use to generate electricity and in
water desalination plants.
Last month, Saudi Arabia named eight foreign companies, from a list of 11, to
take part in three consortiums for these projects. Besides Exxon and Shell,
they are BP PLC, TotalFinaElf SA, Conoco Inc., Phillips Petroleum Corp.,
Occidental Petroleum Corp. and Enron Corp. The three companies that sought
but failed to get a place are Chevron Corp., ENI SpA, and Marathon Oil Canada
Inc.
Industry officials say the competition was some of the fiercest ever. Said a
senior industry executive: "Everybody is looking 10 years down the road, and
the place to be is in Saudi Arabia."

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

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, Jun 1 Asia Pulse - A new package 'acceptable to all' is being
evolved to resolve the seven-month old wrangle between Enron promoted Dabhol
Power Company and the Maharashtra State Electricity Board (MSEB) over the
issue of cost of power and payment of bills, A V Gokak, the federal
government's representative in Maharashtra's negotiation committee said
today.
"Things are moving in the right direction and government is serious to
resolve the crisis," Gokak told PTI after a meeting with the Finance
Minister, Yashwant Sinha, here.
Gokak said none of the parties to the dispute are in favour of closure of the
$3 billion project.
Earlier, the Indian government had asked Central Electricity Authority (CEA)
to explore possibility of selling the DPC power to deficient states. But the
Power Minister, Suresh Prabhu, had ruled out possibility of National Thermal
Power Corporation (NTPC) lifting DPC power.
Prabhu had stated that the government would make all efforts to settle the
matter in consultation with the stake holders.
Asked if any time frame has been set to break the impasse, Gokak said "delay
is in nobody's interest, but there are no readymade solutions."
The negotiating committee, headed by Madhav Godbole, has held two rounds of
negotiations with the last round held earlier this week being termed
"positive" by both DPC and the MSEB.
Gokak is believed to have put forward alternative solutions in resolving the
crisis.
(PTI) MYB 01-06 2030

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

		GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001
By JOHN DIZARD

		The share price of one large electron-pushing company is up nearly 70 per
cent this year, but could be in line for another pop to the upside.
		That may sound like a report from Mary Meeker, the formerly omniscient
internet stock guru, or like your broker's stock-of-the-week pitch.
		Well, neither will be making such a claim at the moment - their legal
departments have them on too tight a leash. And the stock I have in mind is
not a technology stock in the sense of a silicon basher or programmer farm.
It is Edison International, the California electric power holding company,
whose Southern California Edison utility has been very publicly hovering at
the edge of bankruptcy for several months.
		The day after President George W. Bush made his "You're on your own,
California" speech, Edison's share price dropped more than 5 per cent. And
while the year-to-date rise, from Dollars 6.25 to Dollars 10.50 this week,
has been impressive, share-holders have seen a 46 per cent loss year on year.
		So why should anyone be optimistic about the chances for the common
shareholders in the holding company? Essentially because the state
legislators are being terrified into coming up with a bail-out plan - not
exactly the plan of Gray Davis, the governor of California, but one that will
preserve some value for the holding company shareholders and give them a more
predictable future.
		By now every one knows that the California utilities were squeezed by fixed
retail rates and rising wholesale costs. Edison has said it has Dollars 3.5bn
in "undercollected" wholesale power purchase costs. The state of California
(and its taxpayers) stepped in to buy power when the utilities ran out of
borrowing capacity in January. PG&E, the other big investor-owned utility,
filed for Chapter 11 protection back in April. Edison held off from filing,
preferring to try to get a state government bail-out.
		Much is missing from the standard account. For example, consumer groups
believe there is a lot of padding in the "undercollect", and that the holding
company should cough up billions in assets paid for with dividends supplied
by the SCE subsidiary. Many of the California public believe that the
merchant generators such as Duke Energy and Enron should pay back overcharges
rather than get any back bills paid.
		And yet the legislative tide is turning in Edison's favour. Within the next
couple of weeks, I expect the Democrats - who control both the state Assembly
and Senate - to come up with a bail-out plan for Edison that has a good
chance of passing both houses and being signed into law by the governor. The
reason is the the distinction they have begun to make between ratepayers and
taxpayers.
		To a legislator, tax payments, as distinct from utility rates, are things
that run through their hands and go to favoured programmes. Taking over the
payment of electric wholesale costs did not look too scary back in January,
when Governor Davis said it would go on for a few weeks and be easily covered
with the cash on hand. Well, the state has paid out nearly Dollars 8bn and
its cash reserves will be under increasing pressure until a Dollars
12bn-Dollars 13bn bond issue can be floated some time after August 15. A
decline in tax receipts is putting even greater stress on the state
government's resources.
		So the legislators want to get as far out of the power business as they can,
as fast as they can. That means saving Southern California Edison from
Chapter 11.
		The deal being negotiated within the Democratic leadership looks something
like this. The state will make a large loan, call it Dollars 1bn, against the
security of Edison's transmission system, to be repaid either through a sale
of the system to the state or a deduction from the allowed return on the
towers and wires. The holding company will pay out about Dollars 400m to prop
up the subsidiary. The rest of the undercollect will be paid for by a
"dedicated rate component", or charge to ratepayers - mostly commercial,
industrial and large users - that cannot be revoked by the Public Utility
Commission. The generators can get 70 cents on the dollar for their back
bills right away, or they can litigate forever.
		There are a few details that lawyers will quibble over, such as the
constitutionality of retroactively raising rates. And some may ask if it is
not cheaper just to let Edison go into Chapter 11, because even with the plan
it will not be able to take the state's place as a wholesale buyer at any
time soon. But I would bet on its passing anyway. And that would be good news
for Edison International shareholders, since they will have held on to most
of the holding company's assets, and still have an ongoing business in the
subsidiary.
		Don't bet the rent money on it, but it looks closer to me than a comeback in
spending on semiconductors. Maybe the children's college money - if you lose
it, they should work harder anyway.
		Copyright: The Financial Times Limited

		INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001
By ROBIN ALLEN and MATTHEW JONES

		ExxonMobil and Royal Dutch/Shell are the favourites to lead two of Saudi
Arabia's multi-billion dollar upstream gas projects to be opened to foreign
companies, according to industry observers in the Middle East.
		A committee of Saudi ministers responsible for the developments was due to
meet late last night. The companies are expected to learn the size of their
stakes either late today or early tomorrow, an official close to the projects
said.
		Saudi Arabia, which has excluded foreign companies in upstream operations
since 1975, last month announced the selection of eight oil groups to
participate in three gas projects requiring initial investment of around
Dollars 25bn.
		Exxon has already been appointed leader of Core Venture 2, on the Red Sea
coast, which also includes Occidental Petroleum and Enron Corp of the US. The
partners in Core Venture 3, the Shaybah development in the south-eastern
quarter of the kingdom, are Shell, TotalFinaElf of France and Conoco of the
US.
		Analysts and industry experts in Riyadh and Abu Dhabi said Exxon was expected
to be named leader of South Ghawar, also known as Core Venture 1, with a 35
per cent stake. BP and Shell would each be awarded 25 per cent shares while
Phillips would receive 15 per cent.
		Exxon was expected to be given a 70 per cent share of Core Venture 2, with
the remainder split equally between Occidental and Enron. Shell was tipped to
lead Core Venture 3 with 40 per cent of the project, while Total and Conoco
were expected to win 30 per cent each.
		One analyst said there was an outside chance that BP would be awarded
leadership of Core Venture 1 for political reasons.
		A BP official last night said the group had had no indication of the
decision, but added: "Even if we are not selected we will still have a very
significant part in a huge project. The important thing is to be there."
		Additional reporting by Robin Allen in Dubai
		Copyright: The Financial Times Limited

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, June 1 Asia Pulse - International ratings agency Fitch has changed
the Rating Outlook on India's sovereign ratings from Stable to Negative,
citing well-flagged concerns about fiscal policy, privatization and the
deterioration in the foreign investment climate.
Fitch currently rates the foreign and local currency obligations of India at
BB+ and BBB- respectively.
The negative rating outlook reflects the slow progress of the government in
implementing privatization and addressing the weaknesses in public finances.
The fiscal-monetary policy mix in India remains unfavorable, resulting in
relatively high real interest rates and crowding out of private sector
investment.
Until the authorities display a concerted willingness to address fiscal
imbalances, India will remain locked in a stop-go cycle of growth and the
sovereign could slip into a debt trap, Fitch said in a press statement.
The recent corruption scandal, involving the ruling Bhartiya Janata Party
(BJP)-led coalition government, threatens to exacerbate these trends and slow
economic reform.
India's general government fiscal deficit at over 9 per cent of GDP is among
the highest in the realm of rated sovereigns.
Persistently high fiscal deficits have led to a build-up of the general
government's debt burden, estimated to be over 60 per cent of GDP.
In addition, the government has guarantees outstanding amounting to 9 per
cent of GDP.
Fitch reiterates the point that such guarantees, issued to back mainly
infrastructure projects, are contingent liabilities of the government.
This has most recently been borne out in the case of Enron, where the US
power company has invoked a central government guarantee for payment arrears
accumulated by the Maharashtra State Electricity Board.
ASIA PULSE 01-06 1609

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

Thomas E. White becomes Secretary of the Army

06/01/2001
M2 Presswire
Copyright 2001 M2 Communications, Ltd. All Rights Reserved.

Thomas E. White became the 18th secretary of the Army today after being
nominated by President George W. Bush on May 1, 2001, and confirmed by the
Senate on May 24.
White expressed his gratitude to the president and the secretary of Defense
for their confidence and trust in him. During his confirmation hearing before
the Senate Armed Services Committee on May 10, White identified four
objectives he will pursue as secretary of the Army in support of the
president and the secretary of Defense: to invest in people, to assure
readiness, to transform the entire Army and to adopt sound business practices.
The secretary of the Army is the U.S. Army's senior civilian, responsible by
statute for all matters relating to Army manpower, personnel, reserve
affairs, installations, environmental issues, weapons systems and equipment
acquisition, communications and financial management. The secretary leads a
work force of some one million active duty, National Guard and Army Reserve
soldiers and 225,000 civilian employees. The department has an annual budget
of approximately 70 billion dollars.
Before his appointment as secretary of the Army, White was the vice chairman
of Enron Energy Services, the Enron corporation subsidiary responsible for
providing energy outsource solutions to commercial and industrial customers
throughout the United States.
White began his service to the nation in 1967, after graduating from the U.S.
Military Academy at West Point. His distinguished career as a commissioned
Army officer included two tours in Vietnam and service as commander, 1st
Squadron, 11th Armored Cavalry Regiment; commander, 11th Armored Cavalry
Regiment, V Corps; and executive assistant to the chairman, Joint Chiefs of
Staff. He retired from the Army in 1990 with the rank of brigadier general.
For additional information, see the Army web site at
http://www.dtic.mil/armylink or contact Army Public Affairs at (703)
697-7550.
((M2 Communications Ltd disclaims all liability for information provided
within M2 PressWIRE. Data prepared by named party/parties. Further
information on M2 PressWIRE can be obtained at http://www.presswire.net on
the world wide web. Inquiries to info@m2.com)).

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

Some light at last!

06/01/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

NEW Delhis intervention in the tussle between Enron and the Maharashtra
government is a welcome development. The government wants the Central
Electricity Authority to find out whether electricity generated by Dabhol
Power Company can be sold to states which need power badly if it cant be used
by Maharashtra.
This is a good idea India is seriously short of reliable, quality electricity
supply. Maharashtra claims that it doesnt need even the 740 MW now generated
by DPC at going rates. This creates further trouble: the lower Maharashtras
offtake, the higher the unit price of DPC power. Once other power hungry
states start buying up electricity from DPC, the price per kilowatt hour will
fall sharply.
The first step to getting DPC out of the hole that Enron, Maharashtra and
successive Indian governments have dug it into, is to allow the utility to
sell power to anyone who wants to purchase it at going rates. However, asking
central utilities like the fledgling Power Trading Corporation to evacuate
DPC power for sale outside Maharashtra wont solve the hassles of the sector
for all time.
The government should modify electricity laws to allow generating companies
to sell electricity to all users immediately. An ordinance passed by New
Delhi will do the trick power is a concurrent subject, with central
legislation overriding states.
But even if that happens, it is doubtful if there will be too many buyers for
Dabhol power at its present price about Rs 4 per unit with the plant running
at high capacities. If the price is to be brought down further, the deal with
MSEB will have to be renegotiated.
The Godbole Committee says that some financial restructuring, de-dollarising
of debt and equity, and so on can bring prices down by about 30 per cent from
DPCs minimum Rs 4 per unit rate today.
Otherwise, as the GC points out, it will be impossible for the project to be
viable at current tariffs. India desperately needs electricity to grow. For
the power sector to grow, reforms are necessary at every level
renegotiations, yes, but also changes in laws and the rules of the game.

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

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
By MICHAEL LIEDTKE
AP Business Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SAN FRANCISCO (AP) - State energy regulators say they are close to finishing
probes into whether electricity wholesalers illegally aggravated the state's
power squeeze.
In one year, California's power crisis has raised customer rates by $5.7
billion and dumped a $13 billion bailout bill on taxpayers. State officials
hope to recover the money if they find evidence that out-of-state wholesalers
manipulated the market to illegally driving up prices.
The wholesalers say they are being turned into scapegoats for a 1996
deregulation law sculpted by California lawmakers and the state's two largest
utilities, Pacific Gas and Electric and Southern California Edison.
The utilities have reported a combined $8.2 billion in losses since June
2000.
Two legislative committees are investigating allegations that wholesalers
created artificial supply shortages that drove wholesale electricity prices
as high as $1,900 per megawatt hour. Before June 2000, wholesale prices for
energy sold under similar terms rarely climbed above $150 per megawatt hour.
At least five lawsuits, including one filed by San Francisco City Attorney
Louise Renne, seek damages from wholesalers on behalf of all Californians.
"I don't think these are going to be very hard cases to make," said Owen
Clements, chief special litigator for San Francisco. "Even if they didn't
break the letter of the law, they clearly have violated the spirit of the
law."
Attorney General Bill Lockyer is offering multimillion-dollar rewards to
power plant workers and energy traders who provide the state with inside
information about wholesaler's decisions.
"Everyone feels like they're being ripped off. There's a lot of emotional
belief that unfair things have been done, but we're still working through the
case," said Lockyer, a Democrat who voted for the deregulation law when he
served in the state Senate.
The state utilities commission is inspecting power plant documents that may
show whether some facilities shut down unnecessarily to diminish supply. The
commission and Lockyer are investigating whether the plants then increased
production to reap big profits.
Power wholesalers maintain that the plants, many of which are 30 to 40 years
old, shut down for legitimate equipment repairs and maintenance.
"No one in our industry cuts back on production so a competitor can make more
money. It just doesn't happen, at least not on planet Earth," said Gary
Ackerman, executive director of the Western Power Trading Forum, a trade
group.
The Federal Energy Regulatory Commission earlier this year alleged that
Tulsa, Okla.-based Williams profited from the closure of two Southern
California power plants owned by a business partner, Arlington, Va.-based AES
Corp.
Without admitting wrongdoing, Williams refunded $8 million to settle the
charges.
California's investigations are examining the conduct of Williams, as well as
several other prominent power wholesalers, including Houston-based Enron
Corp., Dynegy Inc., and Reliant Energy, Charlotte, N.C.-based Duke Energy and
Atlanta-based Mirant Corp.
Cohen said the utilities commission could file a civil lawsuit against the
wholesalers by the end of June. Lockyer expects to wrap up an investigation
in late July at the earliest.
---
On The Net:
California Public Utilities Commission: http://www.cpuc.ca.gov
California Attorney General: http://www.caag.state.ca.us
http://www.enron.com
http://www.reliant.com
http://www.dynegy.com
http://www.duke-energy.com
http://www.williams.com
http://www.mirant.com

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

California Lawmakers Eye Billing Businesses for Edison Rescue
By Jason Leopold

05/31/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Dow Jones Newswires
LOS ANGELES -- California lawmakers are mulling yet another set of ideas for
rescuing embattled Southern California Edison, and this time businesses would
be on the hook.
In an attempt to deflect charges of a bailout that have thus far stymied
efforts to restore the utility to solvency, legislators are now considering
ways to shift the burden of financing the rescue from residential ratepayers
to the state's largest businesses, aides to key state lawmakers said this
week.
The ideas being worked over by Senate President Pro Tem John Burton, Assembly
Speaker Robert Hertzberg and Assemblyman Fred Keeley have yet to take shape
as formal proposals. But an aide to Burton said some key lawmakers are so
"desperate" to keep Edison International (EIX) utility Southern California
Edison from following PG&E Corp. (PCG) unit Pacific Gas & Electric into
bankruptcy court that they are willing to consider anything that will takse
residential consumers out of the equation.
"The idea is that the large industrial customers are the ones who pushed for
deregulation in the first place, so they should be responsible for bailing
out Edison," the aide said. "We're looking to take the burden off of
residential ratepayers."
The premise of a plan discussed by lawmakers on a conference call Thursday is
to designate Southern California Edison's largest commercial ratepayers as
non-core customers. Those customers -- some 3,600 users of more than 500
kilowatt-hours a month -- would be responsible for financing the cost of
power the utility must purchase or have purchased for it in the wholesale
market. The non-core customers would also help the utility recoup most of its
$5.5 billion in unrecovered power costs through a surcharge on their bills.
Core residential customers would be protected from the wholesale power market
as the primary beneficiaries of the low-cost power the utilities generate
themselves or have locked up in long-term contracts.
Enron Pushing Access to Customers
Separately, Enron Corp. (ENE) has been lobbying lawmakers for several weeks
to win approval to sign power-supply contracts with Southern California
Edison's largest commercial customers, leaving the utility to serve just its
residential customers and small businesses, aides to Gov. Gray Davis, Messrs.
Burton and Hertzberg said.
An Enron executive confirmed that the company sent a four-page proposal to
Mr. Hertzberg proposing that Southern California Edison's large industrial
customers sign so-called direct-access contracts with Enron. Enron also has
recently made a presentation about direct access to some members of the
California Chamber of Commerce.
Under the proposal, heavy users would be required to contract directly with
companies like Enron for their power.
Direct access was a key part of the state's 1996 deregulation plan, but was
scrapped early this year when the state started buying wholesale power in
place of the utilities.
The core/non-core proposal is one of several being discussed by lawmakers as
alternatives to a memorandum of understanding Mr. Davis struck with Edison in
April. The MOU -- which doesn't vary much from an agreement in principle
reached in February -- has been called dead on arrival by some lawmakers, who
have been mulling various alternatives rather than moving the agreement
forward.
State Sen. Debra Bowen, a Redondo Beach Democrat and chairwoman of the Senate
energy committee, said there are so many "Plan B's" floating around the
Legislature that, "We're going to need to hire an apiculturist."
Steve Maviglio, a spokesman for the governor, said the Davis administration
is still dedicated to seeing legislation to enact the memorandum of
understanding move through the Legislature, but said separating the utility's
"core and non-core" customers would be at the forefront of new discussions.
It was too early to say whether the governor would support the plan, he said.
Dominic DiMare, a lobbyist with the California Chamber of Commerce, said the
chamber has told the Davis administration that shifting the burden of the
Southern California Edison bailout to businesses is "a very bad idea" that
could cost the state billions of dollars in economic activity.
"This [plan] would really screw businesses," Mr. DiMare said. "We just got
hit with a 50 to 90% rate increase. We're dangerously close to losing our
businesses to other states."
Write to Jason Leopold at jason.leopold@dowjones.com
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved

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

Construction of power plant in DeSoto County is underway
By TIMOTHY R. BROWN
Associated Press Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

JACKSON, Miss. (AP) - A North Carolina-based independent electric power plant
developer and operator has started construction on a $490 million generating
facility in DeSoto County.
Cogentrix Energy Inc. will build the 800-megawatt power plant in Southaven on
40 acres next to existing TVA and Entergy electric substation facilities. The
plant is the largest economic development project in the history of the north
Mississippi county.
The second largest project is a $150 million power plant currently being
built by Duke Energy.
Both are expected to be operational in 2003.
The National Energy Production Corporation, a subsidiary of the Enron Corp.,
is serving as the engineering and construction contractor for the Congentrix
project.
"It is in construction as we speak," Jeff Freeman, Congentrix vice president
for corporate communications, said Thursday. "NEPCO is mobilized on site and
they are doing earth work. It will probably take them 24 to 27 months to get
the plant in commercial operation."
Freeman said the Charlotte, N.C., company found several reasons why building
a plant in Southaven, a fast-growing city located just south of Memphis,
Tenn., was a good investment.
"The first thing that we look for in any project is a basic need for the
commodity that we produce, which is electricity," Freeman said. "The area
served by the transmission systems, TVA and Entergy, at this location provide
access to areas that need electricity."
The plant will use natural gas as fuel and will include the latest in
environmental and combustion control technologies, Freeman said.
Cogentrix owns all or part of 27 facilities with a capacity to generate about
7,000 megawatts in 14 states.
Southaven Mayor Greg Davis said both plants will generate about $300,000 to
the city, in lieu of taxes, and about $1 million each to the county school
system.
Davis said the plants will not employ many workers so traffic in the area
will not increase. He also pointed to the positive impact of temporary jobs
during construction.
"Then, road and bridge tax that they will be paying is substantial also,"
Davis said. "So from a financial impact we will see a great return in the
investment."
---
On the Net:
Congentrix: http://www.congentrix.com
Duke Energy: http://www.duke-energy.com

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


Vasant-

I hope you had a wonderful vacation back home, and are rested and recovered
from the long flight back.

I wanted to give you an update of the EOL project, the Gas Model, and of my
intentions here at Enron.

Software (in compiled C on the Unix platform) has been developed and debugged
to listen to the EOL trades, process them, book them, and file them away. In
addition, software has been developed and debugged to mark these to market on
a continual basis, and to store the entirety of open positions on EOL in a
dynamic matrix facilitating analysis. IT has yet to get back with me on how
the software can be informed of those trades ultimately rejected for credit
purposes.

These data files are stored in a format for reading by Excel or by SAS, for
which I have written the data step program and basic tabulation routines
elucidating the structure of the data.

I am in the process of documenting all of this for you.

With regards the Gas Model and its slow performance on the Compaq, Dell has
agreed to loan me one of their competing machines to the Compaq, to see if
the performance issue of the LP is related to the Compaq. I have been
researching this issue with IT here and with Compaq and Dell. The new machine
will be here any day now (no financial obligation to anyone), and I will be
able to immediately ascertain whether the problem the model is having is
Compaq-specific.

I am also in the process of documenting the Gas Model for you.

I've tried to do my best for you, Vasant, but I have been frustrated by not
only the death of my mother but some internal systems in IT here. Just the
other day, SAS could not open a full query of the EOL database because there
wasn't enough free space on the server's hard drive for the workfiles. In
discussing some of these issues with some good friends of mine in power
trading, people whom I have known for over 10 years, they indicated they were
ubiquitous here. The power traders have similar PC's to my new one, and they
have complained from Day 1 that theirs are slower than their old ones.  Also,
there remains a large frustration with the development of data warehouses;
during my brief tenure here IT has gone through two differing proposals as to
how to address this. When I have been told of tools available for real-time
data harvesting, my requests for such have typically been met with "well, we
have it, but we haven't really tested it yet." An example is the weather: we
still do not record to disk the hourly NWS observations from the GOES
satellite.

My interests here are to help Enron to do well, because I will do well only
if Enron does well. These aren't empty words- my IRA is 100% invested in the
Enron stock fund. I believe my best contributions to Enron will be in the
areas of systems as well as modeling, and the difficulty working in the
Research Group, in terms of systems development, is that, frankly, few people
at Enron seem to care what a researcher thinks about our systems. We aren't
directly generating revenues for Enron, and we aren't really their customers,
except in our relatively small deparrtmental infrastructure expenses.

As it happens, Power Trading posted an opening for a Modeling and Forecasting
person, and I spoke with them and they asked me to take the job, reporting to
George Hopley. It is a wonderful opportunity for me, Vasant, as they are
interested in large system modelng of power grids as well as improving their
traders' access to real-time fundamentals data. I was completely candid with
Kevin Presto regarding my shortcomings here in Research- I told him you were
disgusted with me because I repeatedly failed to meet time deadlines. They
also understand I have yet to be at Enron for 1 year, and thus may only bid
on a job with your permission. We agree the move is good for Enron; we all
work for Enron, and your acquiescence to the move does not endorse it but
merely permit it. They are comfortable with me- they have known me for years
as a hard worker, honest and unpretensive. They have already ordered a
state-of-the-art Unix workstation and server for me, and they have told me
they will commit whatever resources are necessary for me to be successful,
including hiring an Analyst to work for me. And, I have already been able to
teach their analysts improved techniques for data harvesting and analysis I
have learned here.

So, I am requesting your permission to bid for this job opening. It would be
a lateral move in position and salary, and I would commit to you to help you
in any way possible in the future with regards the Gas Model or the EOL
database. I will continue to work on their improvement, and complete their
documentation.

As it happens, I am away on Enron business in Portland Monday and Tuesday,
and will be back Wednesday. I had wanted to talk face-to-face instead of by
email, but Enron business supercedes- I am on a team designing the data
warehouse for floor trader support.

Clayton.


Have to be careful that you don't lose historical data for rate purposes.
Rod Hayslett
Office  713-853-6178
Cell     713-201-6135
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)

-----Original Message-----
From: Howard, Kevin A. <Kevin.Howard@ENRON.com>
To: Chandler, Bob <Bob.Chandler@ENRON.com>; Hayslett, Rod <Rod.Hayslett@ENRON.com>; Geaccone, Tracy <Tracy.Geaccone@ENRON.com>; Saunders, James <James.Saunders@ENRON.com>; Corman, Shelley <Shelley.Corman@ENRON.com>
CC: Desai, Jayshree <Jayshree.Desai@ENRON.com>; Walters Jr., Harry <Harry.Walters@ENRON.com>; Guthrie, Robert <Robert.Guthrie@ENRON.com>
Sent: Tue Feb 12 13:57:58 2002
Subject: RE: NNG 10 year valuation model

Tax gave us the same feedback. Davis had not yet updated the model for this.
Thanks.
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)

-----Original Message-----
From: Chandler, Bob <Bob.Chandler@ENRON.com>
To: Howard, Kevin A. <Kevin.Howard@ENRON.com>; Hayslett, Rod <Rod.Hayslett@ENRON.com>; Geaccone, Tracy <Tracy.Geaccone@ENRON.com>; Saunders, James <James.Saunders@ENRON.com>; Corman, Shelley <Shelley.Corman@ENRON.com>
CC: Desai, Jayshree <Jayshree.Desai@ENRON.com>; Walters Jr., Harry <Harry.Walters@ENRON.com>; Guthrie, Robert <Robert.Guthrie@ENRON.com>
Sent: Tue Feb 12 13:54:03 2002
Subject: RE: NNG 10 year valuation model

Maybe I'm not looking at this appropriately, but why didn't the deferred taxes on the balance sheet disappear as of the date of sale to Dynegy?  My understanding is that the Option provided for a Section 338h10 basis step-up.  That would result in NNG's paying off its deferred taxes as of the transfer date.  I'm particularly interested in knowing how NNG will pay those taxes given that the note with Corporate can only be reduced to $240MM plus accrued dividends.  That tax election complicates the accounting significantly.

		 -----Original Message-----
		From: 	Howard, Kevin A.
		Sent:	Tuesday, February 12, 2002 10:35 AM
		To:	Hayslett, Rod; Geaccone, Tracy; Chandler, Bob; Saunders, James; Corman, Shelley
		Cc:	Desai, Jayshree
		Subject:	NNG 10 year valuation model

		I met with Jayshree Desai this morning to discuss the recommended changes to the NNG valuation model.  She will make these and circulate the model later today.  I few items worth mentioning -

		1) Capex assumptions still seem too high for 2002-2004.  However, the 2002 number is some $30 million below the "Dynegy transition" capex amount shown in the 2002 Capex schedule.  Can we just assume non-discretionary only with the Base Gas repurchase in 2002/2003? Any discretionary would be commercially-driven.
		2) Keep O&M flat to 2001 numbers?
		3) Tracy / Shelley - Any thoughts on how to incorporate the contract info to better analyze the "contract roll off" scenarios? We have just assumed the 2002 Plan with 1-2% growth rate going forward with a new rate case in effect in 2005. Rod, not sure how you want to look at rate case assumptions or expansion opportunities but we can discuss tomorrow.  Recognizing the volume of NNG contract info and the time constraint we are under, there may or may not be any better alternative.
		4) Rod - we have assumed an equity infusion of $175 million to re-capitalized NNG to more "reasonable" levels.  I can reduce the amount to $112,500,000 which is the Citibank prepay amount allocated to NNG if that sounds reasonable.
		5) We will show a reduction in A/R of $1.807 billion and a corresponding reduction in equity due to the MCTJ loan.

		Any thoughts you have on the above items would be very helpful.  We are trying to send out the info memo by the end of the week.  This model will be the basis for the NNG valuation.

		Thanks,
		Kevin


Attached is an update of utility delivery rates, native generation
weighted-average costs, and QF capacity payments and generation.

Roger


Here is the updated list.

Thanks

 -----Original Message-----
From: 	Sever, Stephanie
Sent:	Friday, February 01, 2002 1:57 PM
To:	Keiser, Kam
Subject:	Updated backoffice users - ubswenergy

Kam,

From the original list that you provided, I added all of the users that had access to EOL.  Please review the list below and let me know if there are any changes.

East Desk
Scott Palmer (spalmer)
James Hungerford (jhungerf)
Bruce Mills (bmills)
Ashley Worthing (aworthin)
Edward Brady (ebrady)
Monte Jones (mjones7)
Central Desk
Darron Giron (dgiron)
Kulvinder Fowler (kfowler)
Luchas Johnson (ljohnso5)
Anna Kulic (skulic)
West Desk
Phillip Love (plove)
Randy Bhatia (rbhatia)
Ryan O'Rourke (rorourke)
Stephanie Hopkins (shopkin2)
Melissa Videtto (mvidetto)
Texas Desk
O'Neal Winfree (owinfre)
Patrick Ryder (pryder)
Kristen Clause (kclause)
Financial Desk
Errol McLaughlin (emclaug)
Kori Loibl (kloibl)
Joey Taylor (jtaylor1)
Brad Jones (bjones7)
Michelle Nelson (mnelson3)
Laura Vargas (lvargas2)
Amy Cavazos (acavazos)
Control Group
Kam Keiser (kkeiser)

Thank you,

Stephanie Sever
713-853-3465


-----Original Message-----
From: U.S. Publishing Co. [mailto:season@wizard.net]
Sent: Tuesday, September 25, 2001 12:43 PM
To: RT Reader
Subject: Restructuring Today Tuesday September 25 2001

(see attached file:  rt010925.pdf)

Thank you,

Season Hawksley
U.S. Publishing Co.
800-486-8201


Hi Fellow  HammerHeads and Friends,

There are?four announcements in this  email:
???Members Only Meeting? - Feb  17
?? February Social - Feb 28
?? Scuba Sign Language Class -?Mar 10-11
?? Flower Gardens Dive Trip - Mar 24-25

If you have any questions or need additional information, please  email.

Best Wishes and Fishes,
Kristi Foster
King Crab  (President)
_____________________________
MEMBERS ONLY MEETING
Our  first annual members-only meeting was on Saturday, February 17.? We had
great participation...The bylaws have been adopted and we are now a
non-profit  organization recognized by the State of Texas.? Thanks to all who
were  there!?Congratulations to the officers:
Kristi Foster - President
OJ Strickland - 1st VP
Cathie Borresen - 2nd VP
Ron Hiser - Secretary
Shelley Buckles - Treasurer
We still need committee chairpeople and committee members.? Please  volunteer
at the next social or by responding to this email.
_______________________
MONTHLY SOCIAL
Thursday, February 28 is the date of the monthly social at Surfer's
Paradise, located?across from the theater in the MarqE complex on I10 off  of
610 from 7:30 - 9:30 pm.? Tell the host/hostess you're with the  HammerHeads
- we'll be in the party  room.
____________________________
SCUBA SIGN LANGUAGE COURSE
This winter, members Kristi Foster and  Randy Knippa attended an instructor
training program to teach Scuba Sign  Language.??You can be the guinea pigs
for the first  class?starting March 10.? Cost for this class only is $75 for
Members  and includes academics and?one pool session.? Students need to
provide  their own equipment and a passport-sized photo for the PADI
Distinctive  Specialty Certification cards.? Learn over 100 useful underwater
hand  signals beyond the open water basics you already know.? Enroll at least
one  week in advance (or at the Feb social).?? For more information,  contact
Kristi Foster at 713-662-3455.
_____________________
CLUB FLOWER GARDENS DIVE TRIP
Jan-Mar is Hammerhead migration season  through the Gulf of Mexico.? How
fitting for the Houston HammerHeads to go  diving with them!? We've got the
entire boat (but only 4?spots are  still open) reserved for March 23-25.?
We'll be diving off the Sea Searcher  II (for more info, check them out at
www.seasearcherii.com).? Cost is  $350.? A $100 deposit is required to hold
your spot.? The balance is  due by March 4.? For more information, please
contact Kristi Foster at  713-662-3455.


FYI

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 08/21/2000
01:08 PM ---------------------------

Vince J Kaminski
08/21/2000 12:58 PM
To: Shelly Butler/HOU/ECT@ECT
cc: John J Lavorato/Corp/Enron@Enron, Jeffrey A Shankman/HOU/ECT@ECT, Hunter
S Shively/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
Subject: Re: Vikas Dwivedi

Shelly,

I shall not accept anybody for a rotation without a prior interview.

Li was scheduled to meet with me last Thursday but  she never showed
up. She did not call to cancel or to apologize for not showing up.
I have not seen her resume.

Please, assume she is not rotating into my group till further notice.

Vince

	From:  Shelly Butler                           08/18/2000 03:37 PM

To: Jeffrey A Shankman/HOU/ECT@ECT
cc: Hunter S Shively/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron, Vince J
Kaminski/HOU/ECT@ECT, Craig Breslau/HOU/ECT@ECT, Ina Rangel/HOU/ECT@ECT
Subject: Vikas Dwivedi

Jeff,

Just wanted to confirm that Li will be placed in Vince Kaminski's group.
Vikas has been placed in ENA Middle Market reporting to Craig Breslau.
Please contact me at 3-4584 if you have any questions.  Thanks for your help!!

Shelly

	From:  Jeffrey A Shankman                           08/18/2000 03:18 PM

To: Shelly Butler/HOU/ECT@ECT
cc: Hunter S Shively/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron
Subject:

Shelly,

Hunter spoke with Li today and agrees that her first rotation should be in
Vince's group doing modelling, etc.  This will give her the broadest
experience for a first rotation.  I'm sure the other person in question,
Vikas, will do very well in Hunter's group.

Thanks for your help.

Jeff


Craig:

Irrespective of whether ir not the noms are confirmed, we should contact
Geary to sell them gas at the citygate.  Have them call Tom Broderick or John
Cogan.  I will follow up with Patti as to if she can shed any light as to who
confrims the noms.

C

	Enron Capital & Trade Resources Corp.

	From:  "Craig W. Lipke" <cwlipke@czn.com>
02/05/2001 02:14 PM

Please respond to <cwlipke@czn.com>
To: "Patty Sullivan" <patty.sullivan@enron.com>
cc: "Chris Foster" <cfoster@enron.com>, "Sean Breen" <sbreen@czn.com>
Subject: Feb Noms

?
One of our transportation customers is being  served by Geary Energy using
Sinclair contract #97RH and can't seem to get their  Noms confirmed.? They
are asking if it is something on our end?? Can  you help?
?
[IMAGE]

-Craig W. Lipke
Citizens AZ Energy Supply
(520) 226-2243

?

 - Outlook.bmp
 - Glacier Bkgrd.jpg


thanks

Cameron Sellers
Vice President, Business Development
PERFECT
1860 Embarcadero Road - Suite 210
Palo Alto, CA 94303
cameron@perfect.com
650.798.3366 (direct dial)
650.269.3366 (cell)
650.858.1095 (fax)

-----Original Message-----
From:  Jeff.Dasovich@enron.com [mailto:Jeff.Dasovich@enron.com]
Sent: Tuesday, July 17, 2001 5:43 PM
To: Cameron Sellers
Subject: EnronOnline Article

USA: INTERVIEW-EnronOnline sees volume growth, CEO says.

By Gelu Sulugiuc

07/17/2001

Reuters English News Service

(C) Reuters Limited 2001.

NEW YORK, July 17 (Reuters) - As most players in a shrinking pool of online
energy trading platforms struggle to stay alive, leader EnronOnline has a
simple philosophy: If it ain't broke, don't fix it.

The Internet arm of the energy marketing and trading giant Enron Corp. ,
EnronOnline predicts it will increase its volume and says it can coexist
with the IntercontinentalExchange (ICE), the chief executive of Enron
Networks told Reuters on Tuesday.

The innovative company is always evaluating its business environment, ready
to remold itself according to market demands, but it is not pursuing
mergers or aquisitions for now, according to Greg Piper.

"I would never say never, but we're not proactively looking at aquiring an
ownership position in any other exchange platform," Piper said.

With an average of $3.5 billion in trades every day, EnronOnline enjoys the
highest volume of all energy electronic platforms. Most energy trading
platforms launched last year have failed to generate profits.

Its closest rival is ICE, which routinely exceeds $1 billion a day. But
while ICE is a many-to-many exchange that matches bids and offers, on
EnronOnline one can only trade with Enron.

"It's a tool that supercharges our market-making business," Piper said.

Enron is the No. 1 natural gas and electricity marketer in the United
States. About 60 percent of its transactions are captured through the
electronic platform.

"As long as we show good prices to our customers, our volumes will continue
to grow," Piper said.

The company is looking to grow online volume in products such as metals,
steel, weather, petrochemicals and plastics.

"We're trying to remain the leader in energy and help our other markets get
more traction," Piper said. "There is a huge amount of growth that we
haven't even tapped into yet."

Piper said he is not worried about ICE's recent success. The Atlanta-based
exchange recently took over London's International Petroleum Exchange and
plans to transfer its open-outcry business online, significantly boosting
its trade volumes.

"Maybe six to 12 months from now, the story might be a lot different,"
Piper said. "But right now, there is room for the both of us."

He added that Enron traders do not shy away from trading on ICE. Many of
the energy giants that founded ICE and provide most of its liquidity are
also Enron's biggest clients.

"Enron will seek out a good deal on ICE when there is one," Piper said.

INNOVATION KEY TO SUCCESS

Recognized as one of the most innovative companies in the United States,
Enron is constantly evaluating its position in the market and thinking of
ways to become more successful.

"The right thing to do in November 1999 was to launch EnronOnline," Piper
said. "But we look at it every day and if it made sense to do something
different, you can bet that Enron would do it and we wouldn't be emotional
about it."

One of the company's advantages is the fact that its software is a flexible
application that allows EnronOnline to easily go in an out of different
markets and regions. It constantly adds new products to its trading
arsenal.

But Piper said that EnronOnline has no plans to turn itself in a
many-to-many exchange.

"We want to focus in providing our markets to others," he said. "In the
near term, we're not changing that."

The company is considering licensing the application itself, but would not
elaborate on who wants it and how much Enron would ask for it.

EnronOnline has been so successful that even its competitors take their
hats off.

"I've been hearing for two years now that a one-to-many exchange wouldn't
work, but Enron just keeps proving people wrong," said Frank Getman, chief
executive of online energy exchange HoustonStreet.

"If you're willing to make tight two-way markets and be the best price in
the market, then people will continue to use your site."

Enron's stock rose 41 cents to $49.53 a share on Tuesday in trading on the
New York Stock Exchange.

|-------------------------------------------------------------------------|
|                                                                         |
| Copyright (c) 2000 Dow Jones & Company, Inc. All Rights Reserved.
|
|                                                                         |
|-------------------------------------------------------------------------|


Here is my idea for challenging the new ISO Board.  According to the trade
press, one of the ISO Board's first actions will be to file with FERC to
request more time to act on the FERC's requirement to file a market
redesign.  We (or WPTF) would file a protest asking the FERC to reject the
filing because the ISO does not have the authority to act.


Is this what you have from AA as a format/information that they are
comfortable with?  --Sally
---------------------- Forwarded by Sally Beck/HOU/ECT on 11/27/2000 10:48 AM
---------------------------

Steven J Ehrig@ENRON
11/21/2000 05:21 PM
To: Sally Beck/HOU/ECT@ECT
cc: John Vickers/AA/Corp/Enron@ENRON
Subject: Curve Validation

Sally,

The following attachment is the latest example of the "Curve Validation
Summary" that we have in "soft copy" form.
We do have several, more recent, hard copies of the curve validation summary,
but we felt that this attachment would better facilitate you.

Sincerely,

Jack Ehrig


Thought it was about time for an update on Petchems, what has happened and what is happening.

FINANCIAL PRODUCTS

First trades in Europe done on  financial swaps  for Polypropylene, Low Density Polyethylene and Propylene.
USA continues to increase volumes dramatically on Benzene Toluene and Xylene driven by Steve and Adam. New business in the USA on Propylene and LLDPE.
Year to date we have transacted 790,000 tonnes of financial deals for the Petrochemical industy globally.
Already transacted Cal 02 benzene swap with Dupont USA.
USA olefines has been targeted for increase in deal flow Q3/Q4.

OPTIONS
Enron's first Benzene options transacted in Europe.

EOL
Styrene swap now launched in Europe and the USA one to follow soon.
4 new counterparties transacting.

NEW HIRES/PERSONNEL
I have interviewed 1 person ( Marathon employee) with a view to running our fledgling USA distribution business and "ghosting" the traders on Styrene, Toluene and Xylene.
We are in the process of interviewing a physical trader for London.
I expect Chris Shapland in Europe will be trading financial petchems in London by the return of the year and a junior replacement for him will then be required.
Rob Brewis is making great progress on market penetration and I expect to be trading physical olefines by Q4 in Europe.
USA Plastics group still needs a trader.

FUNDAMENTALS
Work is underway on the Europe web site. An analyst for this work is being sort. Meanwhile Chris is helping in the interim.

PROJECT WORK
Meeting with CONOCO Europe set for  Sep 4 to discuss taking all their Benzene and Propylene output either physically or financially.

Recent discussions with NCT ,a Dutch plastics distibutor, proved very interesting. Idea is to take a share in the company to have access to their physical exposure on Plastics/Polymers in Europe with a view to providing a new source of physical supply to NCT and manage their total price exposure fro their total sales volume. NCT turnover is c $91m.

Push on Propylene in Europe seen as the most attractive Olefin for Q4.

USA Aromatics dist business on Toluene ready to go.

Major interest from USA majors in Cal 02 Styrene and Benzene swaps.

PHYSICAL BUSINESS
Last but not least I almost forgot ,somehow we still keep very active on physical transactions across the whole range of products . With the hopeful addition of 2 new people we will be increasing our prescence in USA and Europe.

Hope this was useful.

Thanks

Stuart


1. Understanding VaR
 2. Curve Mapping
3. Macros
4. Operationa Analysis
5. Options
6. The Greeks

If I think of some more, I will let you know.  Thanks for getting this
together.
PL


My address is 6201 Meadow Lake 77057 and my home phone is 713-780-1022.  The
horns looked great last week.  Chris Simms is alive.  The best quarterback
performance I have ever seen in Memorial stadium since Peter the Great.  Just
think if we had Phil Brown running the ball.

Grigs


Hi Kay. Can you please forward the faxed invoice you received to Sheila
Tweed. I believe she may have some insight on this invoice, the due date was
6/18/2000. Per Brian Barto it is ok to pay this invoice but we need someone
in Legal to review and give the ok to pay.

Thanks-

Tonya

Tonya Dennis
Specialist- Reporting & Analysis
Enron -North America
713-345-3775
tonya.dennis@enron.com


looks fine

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com

	Carlos Alatorre@ENRON
	02/27/2001 06:07 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Anna Gardiner/LON/ECT@ECT, Justin Rostant/HOU/ECT@ECT
		 Subject: Re: LME

Sara:
We need to change the Prod Description fro the LME Product. The change is
mainly on the Settlement Date text, which instead of  "...Two business days
after the date of the Transaction..." shall read as follow:
For Curr LME     LME (Spot)              01Mar01         JPY/USD
A currency Transaction with Enron Europe Finance & Trading Limited ("EEFTL")
as agent for Risk Management & Trading Corp. under which either (A) for the
case in which Counterparty submits an offer to buy from EEFTL, Counterparty
shall receive the Base Currency Amount and shall pay the Foreign Currency
Amount, or (B) for the case in which Counterparty submits an offer to sell to
EEFTL, Counterparty shall pay the Base Currency Amount and shall receive the
Foreign Currency Amount. The Base Currency Amount shall equal the volume
submitted by the Counterparty via the Website. The Foreign Currency Amount
shall equal the Base Currency Amount, multiplied by the daily London Metal
Exchange (LME) fixing rate as published by Reuters on page MTLE on the date
of the transaction, modified by the price submitted by the Counterparty via
the Website.

The term of the Transaction shall correspond to the date(s) set forth in the
Product description on the Website.

The Settlement date shall be the date(s) set forth in the Product description
on the Website.

The price is quoted in JPY (the 'Foreign Currency') per US Dollar (the 'Base
Currency').
The unit of measure against which the price is quoted shall be US Dollars.

Please let me know your approval before we make any changes.
Thanks
Carlos

---------------------- Forwarded by Carlos Alatorre/NA/Enron on 02/27/2001
04:56 PM ---------------------------

Anna Gardiner@ECT
02/27/2001 02:07 PM
To: Carlos Alatorre/NA/Enron@ENRON
cc: Amita Gosalia/LON/ECT@ECT, Enron London - EOL Product Control
Group/LON/ECT@ECT, Lara Fields/LON/ECT@ECT

Subject: Re: LME

Carlos

This looks as we agreed on the phone.  I apologise for me being a little slow
on the uptake.  It has been a long day and my brain is a little tired.  Let
me know one this is approved and I will make the changes.

Thanks

Anna

To: Anna Gardiner/LON/ECT@ECT
cc: Shane Dallmann/LON/ECT@ECT, Justin Rostant/HOU/ECT@ECT

Subject: LME

Anna/Shane:
Below is the Prod Description that I am going to take to Legal, please review
before I have it approved and let me know if you are Ok or if you have any
comments/questions,
Thanks
Carlos

For Curr LME     LME (Spot)              01Mar01         JPY/USD

A currency Transaction with Enron Europe Finance & Trading Limited ("EEFTL")
as agent for Risk Management & Trading Corp. under which either (A) for the
case in which Counterparty submits an offer to buy from EEFTL, Counterparty
shall receive the Base Currency Amount and shall pay the Foreign Currency
Amount, or (B) for the case in which Counterparty submits an offer to sell to
EEFTL, Counterparty shall pay the Base Currency Amount and shall receive the
Foreign Currency Amount. The Base Currency Amount shall equal the volume
submitted by the Counterparty via the Website. The Foreign Currency Amount
shall equal the Base Currency Amount, multiplied by the daily London Metal
Exchange (LME) fixing rate as published by Reuters on page MTLE on the date
of the transaction, modified by the price submitted by the Counterparty via
the Website.

The term of the Transaction shall correspond to the date(s) set forth in the
Product description on the Website.

The Settlement date shall be the date(s) set forth in the Product description
on the Website.

The price is quoted in JPY (the 'Foreign Currency') per US Dollar (the 'Base
Currency').
The unit of measure against which the price is quoted shall be US Dollars.


Based on this information, I say don't go. Let me know if anything changes.


Dale said it was ok for me to send this to you.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 11/17/2000 01:24
PM ---------------------------

Dale Rasmussen@ECT
11/16/2000 08:27 PM
To: Kay Mann/Corp/Enron@Enron, jacquelinelindo@akllp.com,
paulpipitone@akllp.com
cc: Bill Williams/PDX/ECT@ECT, Ron Coker/Corp/Enron@Enron, Andrew
Kelemen/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT, Alan Larsen/PDX/ECT@ECT

Subject: GE Breakout contract--Las Vegas Cogen

Thanks for the current draft contract.  I have gone through it and plugged in
the relevant information I have from the Summary Sheet that GE approved
earlier.

What I don't have, and am most interested in obtaining from whatever source
has them, are the following:

 1. Purchase price information (based on the current outstanding balance)
 2. Payment schedule (based on current outstanding balance) for Section 6.1.2.
 3. The massive volume of specifications and GE boilerplate that is to be
attached to the contract as Exhibits and Schedules.
 4. A form for Exhibit U, setting out the correct site-adjusted information
for these 4 turbines.
 5. Unit number identifications and guaranteed delivery dates for each of the
turbines.

We are prepared to fill in the unit-specific information beyond that which we
have already incorporated in the body of the document, and can fill in
specific numbers in Exhibit U, but need to have the remaining information.

Please note that there appears to be a couple of residual references in the
contract that may not or are not relevant to all contracts.

First, Section 10.10.6 (regarding maximum aggregate liquidated damages)
references 30% of the Purchase Amount.  It should be 30% of the Maximum
Liability Amount (according to the summary GE approved earlier).

Second, the contract provides for "Optional Electrical Output Guaranty" and
associated liquidated damages in 10.7.3.  This guaranty by its terms applies
only to installations utilizing 6 or more turbines.  I have deleted it from
the LV contract.

In addition, Bill Williams has told me that the site-adjusted performance
levels that GE provided for the summary information sheet are different (and
less favorable to the project ) than those GE provided him in other
documents.  We will need to confirm those numbers with GE.

Is there a contact point at GE whom we should talk with about getting the
information/Exhibits we need, or do we have the information already?

Please let me know.  We are in serious need of providing a document to our
prospective purchaser.


OK

 -----Original Message-----
From: 	Dasovich, Jeff
Sent:	Thursday, October 25, 2001 8:45 AM
To:	Kaufman, Paul; Mara, Susan; Alamo, Joseph; Comnes, Alan
Subject:
Importance:	High

on phone with DWR trying to get a meeting for Tycholiz.  will get on phone pronto.


Hello everyone!  I hope all of you are doing well!  I am getting so excited
about this weekend and the Christmas shower!  Don't forget to RSVP - it is my
cousin, Josie Flesher's number (713-626-9466) and she is not there during the
day, so you can just leave a message.

Hope to see you guys this weekend!

Love, Lisa


Thanks Andy - I look at it tonight.

Look forward to seeing you in CA.


The new addition of the Encounter is here!  Please stop by and pick up your
copy they are available at EB1198.  If you have any questions, please call
Tracy Arthur at ext. 57853.


The request has been completed with all resources requested either completed or rejected. You can view the details of the  request by clicking http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000080693&Page=MyReq.


Notice # 01-145
April 30, 2001

TO:
ALL NYMEX/COMEX DIVISION MEMBERS
ALL NYMEX/COMEX DIVISION MEMBER FIRMS
ALL NYMEX/COMEX DIVISION CLEARING FIRMS
ALL NYMEX/COMEX DIVISION OPERATION MANAGERS

FROM:
George Henderson, Vice President
Michael Campanelli, Vice President

RE:
May ATOM Processing Schedule

DATE  BUSINESS DAY  EVENT

5/1  1   Preliminary ATOM reports
5/3  3   Last day for adjustments.
5/4  4   Final ATOM reports.
5/7  5   CMs debited for brokerage.
5/9  7   NYMEX gets confirmation of available      Funds in escrow account
and initiates
     Transfer to Brokers.
5/10  8   Funds are deposited to broker accounts.

5/11   9   Brokers who check their morning
     Balances will see the ATOM deposits
     Reflected in their bank balances.

NOTE:
Broker enrollments for June cycle must be received by the Membership
Department no later than 10:00 A.M., on May 30, 2001.

If you have any questions regarding NYMEX, please contact Juan Serrano or
Gerard Taibi at (212) 299-2626.
If you have any questions regarding COMEX, please contact David Sherman at
(212) 299-2061.

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

"http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com&
refdoc=(01-145)"

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


Shoe-bomb suspect Richard Reid pleads not guilty to federal charges.

http://www.abcnews.go.com/

ABCNEWS.com:  Up to the Moment, Up to You (tm)
http://abcnews.go.com
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You received this mail because you subscribed via ABCNEWS.com. If you would like to stop receiving these mailings, log into our mailcenter at http://login.mailpref.go.com/unsubscribe .

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---------------------- Forwarded by Christopher Watts/NA/Enron on 12/08/2000
12:25 PM ---------------------------

MarketNotice@friedwire.com on 12/08/2000 11:20:10 AM
To: christopher.watts@enron.com
cc:

Subject: Market Notice Report for PJM ISO (12/08 10:16)

Transmission constraint at Monitor ERIEW 345 KV ERIEW NO1 TX XFORMER
caused by Contingency LINE 345 KV ERIES-ERIEW ESEW resulting in
Redispatch.

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

For more information logon to the FriedWire Traffic Report at:
www.friedwire.com/TrafficReport/login/fwlogin.jsp

To cancel your subscription to Market Notices from this market source,
reply to this message with the following text in the subject:
UNSUBSCRIBE=20137926


i don't know any of those people either

	Enron Capital Management

	From:  David Baumbach                           11/14/2000 10:22 AM

To: Eric Bass/HOU/ECT@ECT
cc:
Subject: Aggie vs t.u. Flag Football

---------------------- Forwarded by David Baumbach/HOU/ECT on 11/14/2000
10:22 AM ---------------------------

Russ Porter@ENRON
11/13/2000 03:49 PM
To: Ceci Torn/TNPC/EES@EES, Todd Neugebaur, Reagan Mathews/Enron
Communications@Enron Communications, Brandon Luna/Enron Communications@Enron
Communications, James Armstrong/HOU/ECT@ECT, Billy Braddock/Enron
Communications@Enron Communications, Mark Santikos/Enron Communications@Enron
Communications, Bobby Oubre/GPGFIN/Enron@ENRON, David Baumbach/HOU/ECT@ECT
cc: Brad Mauritzen/HOU/EES@EES
Subject: Aggie vs t.u. Flag Football


I believe that we did have some activity on Blue Dolphin, but it was done by the Wellhead group.  You should send the Vol Mgmt people to George Smith.

D

-----Original Message-----
From: Olsen, Michael
Sent: Mon 10/15/2001 5:47 PM
To: Farmer, Daren J.
Cc:
Subject:

Two quick questions...

Volume Management seems to think that we had business on Blue Dolphin Pipeline for August 2001.  I told them that we had none, and that whatever they have is AEP business.  They insisted that it was ours and sent down Allocation Statements from Blue Dolphin.  WE have nothing in the system, so I have no idea what to say to them beyond what I think is the case, that AEP has this business now.

As for the Industrial research, I got your message and I assume I should focus on the ones on the map.  The map has 17 plants listed with pipeline connects.  I will call them for capacities and flexibility.

All errors were taken care of by Jay and I with little trouble.

Thanks.

Mike


So didya hear the Blazers creamed the Nuggets last night? I always knew the
Pacific Northwest would dominate in sports - they're not battling with that
ol' Rocky Mountain High if ya know what I mean.

Well I'm sorry I didn't get back to you yesterday - work was hectic and I
knew that if I started an e-mail to you it would either be half-assed or I'd
never finish it. Well, I'm going for the former now, because I realized there
would never be a good time to divulge the full and sordid details of what's
happening around here, and all the while I wait, more and more important
nuggets (get it!) of gossip are accumulating.

So it's quite appropriate that you wrote yesterday with roommate issues -
mine could not be worse. Amber took off for the "library" on Thursday night
and came home.....four days later. After Molly and I had a mild freak-out
session on Friday - which included calling everybody she's every known,
including Chris and the police - we heard through the grapevine that Marky
McCulloch, of Neidermeyer cousin fame, was in town from none other than
Denver and the two were having a secret and James-Bond-like rendezvous at the
beach. Well that was all well and fine, other than the fact that she DIDN'T
TELL US SHE WAS LEAVING and we had been planning a housewarming party this
weekend for the past month and she DIDN'T TELL US SHE WAS LEAVING and she
moved kitty into the house but still hasn't told our landlords or paid the
$500 deposit, oh, and also, SHE DIDN'T TELL US SHE WAS LEAVING. So many
things were wrong and bizarre about that, but none more than her attitude
when she walked in the door Monday afternoon. Let's just say I spared no lung
muscles in telling her exactly what I thought about her selfish, childish,
idiotic, and most importantly, psychotically self-important behavior. She had
the gall to defensively scream back that she didn't tell us BECAUSE SHE
DIDN'T WANT TO LIE. Hmmmm. Not only did she not want to lie - how sweet - but
she couldn't have told us because Molly and I have suddenly developed an
insatiable urge to spread fervent and widespread rumors about Amber's love
trysts. Now, I KNOW there's nothing I'd rather be doing.

Anyway, enough of that. She and I have reached an understanding that just
because we're roommates does not mean we have to be friends. We've never been
good at that anyhow. In other news, we had an amazing housewarming party. I
really wish you could have been there. Molly and I didn't know 90 percent of
the people there, which is a good thing because it meant they were all
interesting, successful, gracious and cute. I think there were about four
girls there - you could tell who planned the party. Sadly, no love
connections were made that evening, but I've decided that's my new M.O. -
keep 'em guessing. My friend Michael from Maui who now lives in Seattle came
down with his friend Jordan who happens to be hot and writing an article for
Food & Wine magazine. Very interesting guy, but potentially in the closet, so
I'm keeping my distance. But they invited me up to Seattle next weekend for a
five-course meal and $100 bottles of wine at some Microsoft dude's mansion.
Definitely sounds like my crowd. Should I wear my dirty jeans or my clean
jeans?

I've got my eye on flights to Denver, but right now it's looking like the end
of March before I can scrape up that kind of cash. Amber on the other hand
will be there five times before that because some psycho over there keeps
buying her tickets. That's fair for ya.

Okay, that's all I can do for now, but call me tonight and we'll do the rumor
mill justice. Take care and hang in there - we'll be booting a roommate soon
if you feel like coming back to Portland.

Kate
503-288-6546


A missing word is a little like a lime green shirt- hard to miss.

From: Jeff Dasovich on 11/30/2000 02:53 PM
Sent by: Jeff Dasovich
To: Richard Shapiro/NA/Enron@Enron
cc:

Subject: Re: Press Statement on Bad PUC Gas Decision? Need to decide by 4 PM
(PST)

Yep.  Thanks.


Vlady..
this was the list John referenced the other day.
Ted
---------------------- Forwarded by Ted Murphy/HOU/ECT on 08/09/2000 02:30 PM
---------------------------

From:  Ted Murphy
06/28/2000 07:45 AM

To: Rick Buy
cc:
Subject: VAR Priorities

Rick,
This is my initial attempt to summarize our meeting with John.  The next
steps would be to solicit feedback from other interested parties and scope
the resources and responsibilities.
Ted

Rick Buy, John Lavorato and I met to discuss priorities as it relates to the
calculation of VAR.  We are making the following recommendations

 1) Inclusion of monthly index positions into VAR calculations as the
indicies set in North American Natural Gas
 2) Development of a methodology to re-run correlations (factor loadings)
including criteria, responsibilities and acceptance/rejection criteria
 3) Development of process by which to analyze the output of factor loading
process.  Database to store output and management reports.
 4) Finalize debate on the calculation of Forward/Forward volatility
 5) Scope a project to analyze the possibility of calculating hourly
volatility for power.

It was further recommended that we continue to not include unpriced index
positions in VAR calculation.


Per our conference call.

Richard C. Josephson
Stoel Rives LLP
900 SW Fifth  Avenue, Suite 2600
Portland, OR 97204-1268
DD: 503-294-9537
Fax: 503-220-2480
email: rcjosephson@stoel.com

 - CBS Marketwatch - SoCal Edison defaults on commercial paper.ht
 - CBS Marketwatch - California Governor seizes more power contra


Teco Tap  40.000 / Enron ; 110.000 / HPL IFERC


Congrats on your promotion to MD. I appreciate the work you group is doing
for ET&S, and I know the promotion is well deserved.

    Bill Cordes


Offer him the job.

Rob Bradley@ENRON
07/25/2000 12:40 PM

To: Steven J Kean/HOU/EES@EES
cc: Andrew Miles/HOU/EES@EES
Subject: Alhamd's Presentations

FYI--go to the Internet Strategy one for what you need.

I am pretty sure he will work out with me and Jeff--you can pull the trigger
and hire him with my concurrence if you feel comfortable enough.

- Rob

---------------------- Forwarded by Rob Bradley/Corp/Enron on 07/26/2000
12:33 AM ---------------------------
Alhamd Alkhayat @ ENRON_DEVELOPMENT   07/25/2000 12:25 PM

To: Rob Bradley@ENRON
cc:

Subject: Alhamd's Presentations

Rob,

I think the meeting with Steve went great.  He asked me to forward you some
presentations that I have made, and that you would pass them on to him.  They
are here in reverse chrono order.  Pass my regards and enjoy your vacation.

Cheers

Hamd


Curtis does sheetrock work, as well as painting.

Amy

----- Original Message -----
From: Larry Bias <mailto:larrybias@houston.rr.com>
To: emca@yahoogroups.com <mailto:emca@yahoogroups.com>
Sent: Friday, October 26, 2001 10:44 AM
Subject: *EMCA* Moe's Technique

I recently tried Curtis Moore by recommendation of Bobby Shriver from Houston After Care.  I was pleased with his work.  He was reasonable and finished the job quickly.  His phone number is (832) 752-4138.  Give him a call for a free estimate.

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