Starting July 1 we implemented cost savings initiatives designed to reduce Enron's cost structure by over $200 million on an annual basis.  Additionally there has been a substantial amount of restructuring in both EBS and in EES to reduce costs and refocus our business on high value opportunities.  As Ken has said, though, the basic business model and strategy of Enron is sound and promises continued growth -- no changes there.  For example, in the Enron Industrial Markets and Enron Global Markets groups -- efforts begun just over a year ago -- we have already experienced enormous volume and revenue growth and we are making money already in these "first mover" businesses.  Successes like these prove the advantages of our overall strategy and business model.  Combined with some long overdue focus on costs, we should be well on our way to even greater gains in recurring earnings.

 -----Original Message-----
From: 	Clark, Mary
Sent:	Thursday, August 16, 2001 4:32 PM
To:	Kean, Steven J.
Subject:	FW: Stock Price

Steve, can you suggest an answer to these questions?  Thanks

 -----Original Message-----
From: 	Sera, Sherri   On Behalf Of Office of the Chairman,
Sent:	Thursday, August 16, 2001 3:04 PM
To:	Clark, Mary
Subject:	Stock Price

---------------------- Forwarded by Sherri Sera/Corp/Enron on 08/16/2001 03:04 PM ---------------------------

 << OLE Object: Picture (Device Independent Bitmap) >>
Anonymous

To:
cc:

Subject:	Stock Price

Mr. Skilling consistently stated over the past few months that we needed to "earn our way" to a higher stock price.  Following his departure, Mr. Lay has stated that one of his top priorities would be to rebuild our stock value.  My question is, will the company have any changes to existing policies in order to facilitate this growth?  Will company spending (Teaming events, Travel and Expense Policy, Investment in new technology, and so on) be cut back in order to bolster earnings?  Basically, do we have a new gameplan (aside from the EBS restructuring) or will we proceed forward and operate as we have been.

Regards,

Dan Luciano
Enron Net Works
dan.luciano@enron.com
713-345-3911


A police officer pulls a guy over for speeding and has the following
exchange:
Officer:
May I see your driver's  license?
Driver:
I don't have one. I had it suspended when I got my  5th DUI.
Officer:
May I see the owner's card for this  vehicle?
Driver:
It's not my car. I stole it.
Officer:
The  car is stolen?
Driver:
That's right. But come to think of it, I think  I saw the owner's card
in the glove box when I was putting my gun in  there.
Officer:
There's a gun in the glove box?
Driver:
Yes  sir. That's where I put it after I shot and killed the woman who
owns this  car and stuffed her in the trunk.
Officer:
There's a BODY in the  TRUNK?!?!?
Driver:
Yes, sir.
Hearing this, the officer  immediately called his captain. The car was
quickly surrounded by police, and  the captain approached the driver
to handle the tense  situation:
Captain:
Sir, can I see your  license?
Driver:
Sure. Here it is.
It was  valid.
Captain:
Who's car is this?
Driver:
It's mine,  officer. Here's the owner' card.
The driver owned the  car.
Captain:
Could you slowly open your glove box so I can see if  there's a gun
in it?
Driver:
Yes, sir, but there's no gun in it.
Sure  enough, there was nothing in the glove box.
Captain:
Would you mind  opening your trunk? I was told you said there's body in it.
Driver:
No  problem.
Trunk is opened; no body.
Captain:
I don't understand  it. The officer who stopped you said you told him you
didn't have a license,  stole the car, had a gun in the glove box, and that
there was a dead body in  the trunk.
Driver:
Yeah, I'll bet the liar told you I was speeding,  too!


---------------------- Forwarded by Elsa Villarreal/HOU/ECT on 12/26/2000
01:06 PM ---------------------------
From: Joan M Quick on 12/26/2000 10:00 AM
Sent by: Joan Quick
To: Mary Poorman/NA/Enron@Enron, Jackie Young/HOU/ECT@ECT
cc: Elsa Villarreal/HOU/ECT@ECT
Subject: REVISION - Forest Oil's JANUARY 2001 Gas Volumes

Below are Forest's first of the month noms:

DELIVERY POINT     MMBTU/D
MCALLEN RANCH      4,196
KATY PLANT        9,370 [termed up for Nov - Mar]

revision PER JOHN KJELMYR, 12/26 am.


Attached is a revised Credit Watch listing as of 4/02/01.
If there are any personnel in your group that were not included in this
distribution, please insure that they receive a copy of this report.
To add additional people to this distribution, or if this report has been
sent to you in error, please contact Veronica Espinoza at x6-6002.
For other questions, please contact Bill Bradford at x3-3831, Russell Diamond
at x5-7095, or Brant Reves at x3-9897.


Sean may want to go to this.

---------------------- Forwarded by Chris Germany/HOU/ECT on 10/26/2000 12:49
PM ---------------------------

Angie Zeman@ENRON
10/26/2000 12:26 PM
To: Victor Lamadrid/HOU/ECT@ECT, Chris Germany/HOU/ECT@ECT
cc:
Subject: Mid-Atlantic Winter Operations Meeting

Does someone need to go to this?  -AZ

---------------------- Forwarded by Angie Zeman/Corp/Enron on 10/26/2000
12:18 PM ---------------------------

Polly_A._Lynch@DOM.COM on 10/26/2000 08:40:11 AM
To: ddotson@aglresources.com, gguinn@aglresources.com,
kledbett@aglresources.com, bfreeman@aglresources.com, angie.zeman@enron.com,
betty.j.rosensteel@bge.com, diana.g.cooper@bge.com, mark.n.valavanis@bge.com,
ann.p.cunningham@bge.com, john.l.hays@bge.com,
bonnie.fitzpatrick@cesource.com, daughtryd@ci.richmond.va.us,
johnsonrb@ci.richmond.va.us, mgpl@dynegy.com, w_b_miller@fpl.com,
john_r_wood@fpl.com, steve.rose@piedmontng.com, dfmorrison@pepco.com,
dnewton@scana.com, jcagle@scana.com, mrussell@scana.com, cneri@ugi.com,
duane_blackwell@vapower.com, ronnie_fajohn@vapower.com, phil_rosswog@DOM.COM,
robert_white@vapower.com, Paul_G_Nicholes@DOM.COM, bhamilton@washgas.com,
nhickman@washgas.com, acrescioli@washgas.com, sschultz@washgas.com,
diane.nixon@southernenergy.com, andrew.george@southernenergy.com,
michelle.lawrence@southernenergy.com, smith24c@kochind.com,
robbinsc@kochind.com, dianes@woodwardmarketing.com, kathy_s_reeves@ameren.com
cc: Cynthia_C._Ellis@DOM.COM, Jeffrey_A._Davis@DOM.COM,
Daniel_T._Pollack@DOM.COM, Michael_J_Wilhelm@DOM.COM,
Kenneth_R_Skinner@DOM.COM
Subject: Mid-Atlantic Winter Operations Meeting

On behalf of Cynthia Ellis, I would like to invite you to attend the annual
Dominion Transmission Mid-Atlantic Winter Operations Meeting to be held at The
Jefferson Hotel in Richmond, VA on November 14, 2000.  We have scheduled the
meeting to begin at 10:00 am and last until around 3:00 pm.   Lunch will be
provided for you.   In order to appropriately plan for food and beverage
needs,
please let me know by November 7, 2000 if you plan to attend.  I will also
need
to know if you will require a room reservation for the evening of November 13.
You may respond via e-mail or call me at (304)627-3916.  We look forward to
seeing you there!


Richard,  I wouldn't worry about a letter.  It was a very informal
submittal.  I will let my Associate friend know.  Thanks.

	Richard B Sanders
	05/31/2000 05:42 AM

		 To: Gerald Nemec/HOU/ECT@ECT
		 cc:
		 Subject: Re: Recruiting

We have no interest. Do you think I need to write a rejection letter?

	Gerald Nemec
	05/30/2000 09:38 AM

		 To: Richard B Sanders/HOU/ECT@ECT
		 cc:
		 Subject: Recruiting

Richard,  The attached resume is from an attorney who is a friend of an
Associate here at Enron.  I had worked with the Associate before but don't
know his friend.  I told the Associate that I wasn't sure of our hiring
needs, but that I would pass the resume along.  Barbara indicated you were
our recruiting coordinator.  So here it is.

----- Forwarded by Gerald Nemec/HOU/ECT on 05/30/2000 09:28 AM -----

 - Resume~1.wpd


i see east carolina but i don't see teetee; it doesn't bode well for the
gallery furniture bowl
---------------------- Forwarded by Eric Bass/HOU/ECT on 12/06/2000 11:12 AM
---------------------------

Luis Mena@ENRON
12/06/2000 08:41 AM
To: Roberto Martinez/HOU/EES@EES, Brian Hoskins/Enron Communications@Enron
Communications, Eric Bass/HOU/ECT@ECT
cc:
Subject: FW: Top 10 Colleges with the Best Looking Girls

Thank you for your attention.
---------------------- Forwarded by Luis Mena/NA/Enron on 12/06/2000 08:33 AM
---------------------------

"Jason Van Kirk" <jvankirk@mercatorcapital.com> on 12/06/2000 08:06:56 AM
Please respond to <jvankirk@mercatorcapital.com>
To: "Oscar Szigeti" <oszigeti@lifeminders.com>, "Nick Schuneman"
<wuhbow@yahoo.com>, "Myron Van Kirk" <mvankirk@vkri.com>, "Michael J. Smith"
<msmith@mercatorcapital.com>, "Mark Murray" <mmurray@nationaljournal.com>,
"Luis Mena" <Luis_Mena@ei.enron.com>, "John F. Baring"
<jbaring@mercatorcapital.com>, "John Appuliese" <jappuliese@aol.com>,
"Guillaume Girard" <ggirard@mercatorcapital.com>, "Erin D. Carlson"
<e.carlson@mail.utexas.edu>, "Dave Foster" <BDLFoster@aol.com>, "Chris
Schuneman" <CSCHUNEMAN@itg.mea.com>, "Rod Hackman"
<rhackman@mercatorcapital.com>
cc:

Subject: FW: Top 10 Colleges with the Best Looking Girls

May I have your attention, please!!

<ahem>

Just wanted everyone to know that Texas was voted #1 by Playboy magazine for
"Colleges with the Best Looking Girls".  As if we needed affirmation of this
fact...

But, now, we have full-fledged proof to show the world where it's at.

I've never been prouder to say, "Hook 'em Horns!!"

This comes from playboy.com

The List:

1.  The University of Texas
2.  Arizona State
3.  UCLA
4.  University of Florida
5.  University of Arizona
6.  Florida State
7.  University of Alabama
8.  University of Colorado
9.  East Carolina
10. University of Georgia


Jay Perl
Sempra Energy Trading

phone: 203-355-5074
cell: 914-261-6025
email: jperl@sempratrading.com

****************************************************************************
This e-mail contains privileged attorney-client communications and/or
confidential information, and is only for the use by the intended recipient.
Receipt by an unintended recipient does not constitute a waiver of any
applicable privilege.

Reading, disclosure, discussion, dissemination, distribution or copying of
this information by anyone other than the intended recipient or his or her
employees or agents is strictly prohibited.  If you have received this
communication in error, please immediately notify us and delete the original
material from your computer.

Sempra Energy Trading Corp. (SET) is not the same company as SDG&E or
SoCalGas, the utilities owned by SET's parent company.  SET is not regulated
by the California Public Utilities Commission and you do not have to buy
SET's products and services to continue to receive quality regulated service
from the utilities.
****************************************************************************


CONFIDENTIAL SETTLEMENT MATERIAL
  PER CPUC RULE 51

TO ALL PARTIES:

We appreciate the wide and active participation in the "Gas Accord II"
Workshops to date, and we particularly thank the parties who have taken the
time to identify issues and proposals of concern to them.  The PG&E team is
working hard to put all of this into the context of an initial Gas Accord II
Settlement Proposal.  However, we have concluded that, in order to do the
job properly, we need to delay our target date for circulating a proposal,
until Wednesday, December 20, 2000.

Because of this delay in circulating a proposal, we also are canceling the
proposed all-party meeting scheduled for December 13th and 14th.

Accordingly, the next all-party meeting is the one that we had previously
scheduled to occur on January 10 and 11, 2001.  We will use that meeting to
discuss and explain the PG&E proposal, and to receive feedback from the
parties.

Attached below is the meeting schedule for next year that we outlined
earlier in the process.  We encourage everyone to keep these meeting dates
on your calendars.  We will fill in more details on the specific agendas as
we move forward.

Again, thank you for your participation in the Gas Accord II Settlement
Process.  We look forward to providing you with our initial proposal, and to
our subsequent settlement discussions.

Please feel free to call or e-mail us if you have questions or concerns.

Frank Lindh    Ray Williams
415-973-2776    415-973-3634
frl3@pge.com    rdw0@pge.com

 <<Gas Accord II Settlement Schedule.doc>>

 - Gas Accord II Settlement Schedule.doc


Please schedule a meeting about the Dhabol LNG contracts with the following
for wed or thurs.  Mark Haedicke, Mike Mcconnell (if avail), Vince Kaminski.
Thanks.  Jeff


So Louise - you are almost as important as Oprah was last year.
Does this mean you wil be holding talk shows for troubled traders?

M

 -----Original Message-----
From: 	Scrimshaw, Matthew
Sent:	02 October 2001 16:10
To:	Kitchen, Louise
Cc:	Romano, Marcello
Subject:	Louise Kitchen - Fortune 50 - No.17

Marcello finished 5th (out of 30) in the Caterham 7's at Brands Hatch on Sunday so he's famous too now!

Carly Fiorina Tops FORTUNE's List of 50 Most Powerful Women in Business for Fourth Year

10/01/2001
Business Wire
(Copyright (c) 2001, Business Wire)

NEW YORK--(BUSINESS WIRE)--Oct. 1, 2001--

Lower-Profile Women Topple More Well-known Names From Tech and
Internet Sector; Ranking Includes 14 Newcomers

Though Hewlett-Packard lost $65 billion in market value in a year, CEO Carly Fiorina hasn't lost her nerve, and for the fourth consecutive year holds the No. 1 position on FORTUNE's ranking of the 50 Most Powerful Women in Business.
The complete list and accompanying stories are in the October 15 issue of FORTUNE, available on newsstands October 8 and at www.fortune.com at 12:00 p.m. on October 1.
In the No. 2 spot is eBay CEO Meg Whitman, who runs an Internet company that actually makes money: $85 million in the last four quarters on $582 million in revenue. Oprah Winfrey, the Queen of Media, is mightier than ever, and holds the No. 3 spot, up from No. 15 last year. She produces movies, brings comfort and advice to millions of TV viewers, propels books to bestsellerdom, and, last year, teamed up with Hearst Magazines' Cathie Black (No. 28 on the list) to publish O, The Oprah Magazine-by some measures the most successful magazine startup ever. At No. 4 is Andrea Jung, Chairman and CEO of Avon, who has breathed life into ailing Avon. Mirant CEO Marce Fuller-the only newcomer in the top five-holds the No. 5 position. Inside a stodgy utility, Southern, Fuller built a high-growth trading and marketing unit, which was spun off in April.
In these new, more tempered times, patience may be about to reap its reward. In FORTUNE's annual survey of the 50 Most Powerful Women in Business, there is a clear emergence of women who came to power slowly. Says FORTUNE senior writer Pattie Sellers in "Patient But Not Passive," the story that accompanies the list, "By patience, we mean staying with a company, steadily building influence there, and rising to power through determination and insider knowledge, not promises and self-promotion."
Fiorina, who has claimed the top spot each year since FORTUNE's inaugural list in 1998, heads the biggest company ($48 billion in revenues last year) run by a woman. And she is still as audacious and impatient as ever. Wall Street practically heckled her latest move-a bold bet to buy Compaq-but Fiorina, 47, remains defiant. In difficult times, "people who drive change are the subject of great scrutiny," she says.
As always, the list is a snapshot of power at a moment in time. Last year, power resided in the technology and Internet sectors, but that influence was fleeting. Gone from the list this year: Deborah "Hurricane Debby" Hopkins, who pushed her agenda too ambitiously at Lucent and lost her CFO job in May; Ellen Hancock, who failed at the startup, Exodus; and Morgan Stanley's Mary Meeker, who influenced so many to buy into the Internet fizz. But one Web warrior looks better than ever: Meg Whitman, No. 2 on the list. She has never overpromised to investors; instead she has diligently delivered above-target profits every single quarter.
Fourteen newcomers join the list this year: Marce Fuller, President & CEO, Mirant; Louise Kitchen, COO, Enron Americas; Colleen Barrett, President & COO, Southwest Airlines; Betsy Bernard, President & CEO, AT&T Consumer; Anne Stevens, VP, North America Vehicle Operations, Ford Motor; Maria Elena Lagomasino, Chairman & CEO, J. P. Morgan Private Bank; Susan Desmond-Hellman, EVP and Chief Medical Officer, Genentech; Janet Robinson, SVP, Newspaper Operations, New York Times Co.; Carol Tomi, EVP and CFO, Home Depot; Carrie Cox, EVP and President, Global Prescriptions, Pharmacia; Carole Black, President and CEO, Lifetime Television Networks; Janet Davidson, Group President, Integrated Network Solutions, Lucent; Larree Renda, EVP, Retail Operations, Safeway; and Louise Francesconi, VP and GM, Missile Systems, Raytheon.
While the economy and its points of power change, the criteria we use to evaluate power remains the same. Says Sellers: "We consider the size and importance of a woman's business in the global economy, her clout inside her company, and the arc of her career-where she has been and where she is likely to go. When appropriate, we also weigh the woman's influence on mass culture and society. That factor lifts Oprah Winfrey to No. 3 on this year's list." The shifts on our list this year are dramatic, with 14 newcomers. But one trend is especially intriguing: Women are taking on bigger businesses than ever. A few years ago, responsibility for a $3 billion business almost automatically earned a woman a spot on this list. No more. This year's FORTUNE 50 includes several women who lead businesses with annual revenues of $20 billion or more, which is a first.
In a related story, "It Took a Lady To Save Avon," Katrina Brooker looks at Andrea Jung, Chairman and CEO of Avon. Says Brooker, "Jung knows what women want and how to sell it to them. And that's what has made her one of the most successful CEOs-male or female-in recent years." Over the past 20 months she has overhauled nearly everything about the way Avon does business: how it advertises, manufactures, packages, and even sells its products, and she has done it not by abandoning the seemingly outdated Avon Lady, but by reviving her. The result: growth in revenues, operating profits, and operating margins.
In addition, FORTUNE includes an international list of the 50 powerful women in business. The top ten, featured in the magazine, are Marjorie Scardino, CEO, Pearson (Britain); Anne Lauvergeon, Chairman, Areva (France); Mary Ma, Senior VP & CFO, Legend (Hong Kong); Marianne Nivert, President & CEO, Telia (Sweden); Lien Siaou-Sze, Vice President, Hewlett-Packard (Hong Kong); Patricia Barbizet, CEO, Artemis (France); Eiko Kono, President, Recruit (Japan): Belinda Stronach, CEO, Magna International (Canada); Marina Berlusconi, Vice Chairman, Fininvest (Italy); Christine Tsung, President & CEO, China Airlines (Taiwan). You can read about the other forty at www.fortune.com or in the international editions of FORTUNE.
2001 FORTUNE 50 Most Powerful Women in American Business

2001 2000
Rank Rank Name Title Company
1 1 Carly Fiorina Chairman and CEO Hewlett-Packard
2 3 Meg Whitman President and CEO eBay
3 15 Oprah Winfrey Chairman Harpo
Entertainment
4 10 Andrea Jung Chairman and CEO Avon
5 new Marce Fuller President and CEO Mirant
6 18 Anne Mulcahy President and CEO Xerox
7 14 Karen Katen EVP and President
Pharmaceutical Group Pfizer
8 39 Pat Woertz President, Chevron Products Chevron
9 23 Betsy Holden Co-CEO Kraft Foods
10 43 Indra Nooyi President and CFO PepsiCo
11 7 Shelly Lazarus Chairman and CEO Ogilvy & Mather
Worldwide
12 50 Abigail Johnson President Fidelity
Management and
Research
13 9 Martha Stewart Chairman and CEO Martha Stewart
Living OmniMedia
14 12 Patricia Dunn Global CEO Barclays Global
Investors
15 16 Judy McGrath Chairman and CEO, MTV Group Viacom
16 17 Sherry Lansing Chairman, Motion Picture
Group, Paramont Viacom
17 new Louise Kitchen COO Enron Americas
18 19 Lois Juliber COO Colgate-Palmolive
19 18 Marilyn Carlson
Nelson Chairman and CEO Carlson Companies
20 new Colleen Barrett President and COO Southwest
Airlines
21 21 Ann Moore EVP, Time Inc. AOL Time Warner
22 22 Judy Lewent EVP and CFO Merck
23 new Betsy Bernard President and CFO AT&T Consumer
24 31 Stacey Snider Chairman, Universal Pictures Vivendi
Universal
25 30 Dina Dublon EVP and CFO J.P. Morgan Chase
26 10 Pat Russo President and COO Eastman Kodak
27 new Anne Stevens VP, North American Vehicle
Operations Ford Motor
28 11 Ann Livermore President, HP Services Hewlett-Packard
29 28 Cathleen Black President Hearst Magazines
30 24 Linda Sanford SVP and Group Executive,
Storage Systems IBM

31 33 Amy Brinkley Chairman, Credit Policy Bank of America
32 4 Donna Dubinsky CEO Handspring
33 38 Marjorie Magner Senior EVP, Consumer Group Citigroup
34 13 Nancy Peretsman EVP and Managing Director Allen & Co.
35 25 Dawn Lepore Vice-Chair, EVP, and CIO Charles Schwab
36 27 Gail McGovern President, Fidelity Personal
Investments Fidelity
37 new Maria Elena
Lagomasino Chairman and CEO J.P Morgan
Chase Private
Bank
38 new Susan
Desmond-Hellman EVP and Chief Medical Officer Genentech
39 new Janet Robinson SVP, Newspaper Operations New York
Times Co.
40 new Carol Tome EVP and CFO Home Depot
41 46 Jamie Gorelick Vice-Chair Fannie Mae
42 45 Vivian Banta EVP and CEO, U.S. Consumer Prudential
43 new Carrie Cox EVP and President, Global
Prescriptions Pharmacia
44 47 Anne Sweeney President, ABC Cable Networks
Group Disney

45 new Carole Black President and CEO Lifetime
Television
Networks
46 44 Marion Sandler Co-Chairman and Co-CEO Golden West
Financial
47 new Janet Davidson Group President, Integrated
Network Lucent
Solutions
48 new Larree Renda EVP, Retail Operations Safeway
49 new Louise
Francesconi VP and GM, Missile Systems Raytheon
50 8 Abby Joseph
Cohen Chief Market Strategist Goldman Sachs

FORTUNE's International 50 Most Powerful Women

Rank Women Title Company Country
1 Marjorie Scardino CEO Pearson Britain
2 Anne Lauvergeon Chairman Areva France
3 Mary Ma Senior VP and CFO Legend Hong Kong
4 Marianne Nivert President and CEO Telia Sweden
5 Lien Siaou-Sze Vice President Hewlett-Packard Hong Kong
6 Patricia Barbizet CEO Artimis France
7 Eiko Kono President Recruit Japan
8 Belinda Stronach CEO Magna International Canada
9 Marina Berlusconi Vice Chairman Fininvest Italy
10 Christine Tsung President and CEO China Airlines Taiwan
11 Maureen Kempston
Darkes President GM Canada Canada
12 Mary Minnick President and COO Coca Cola Asia U.S.
13 Nita Ing Chairman Taiwan High-Speed
Railway Taiwan
14 Barbara Kux Executive Director Ford Europe Germany
15 Ho Ching Chairman Singapore
Technologies Singapore
16 Sari Baldauf President Nokia Networks Finland
17 Judy Boynton CFO Royal Dutch/Shell
Group Britain
18 Maria Silvia
Marques Bastos CEO Companhia
Siderurgica
Nacional Brazil
19 Clara Furse CEO London Stock
Exchange Britain
20 Linda Cook CEO Shell Gas & Power Britain
21 Val Gooding CEO BUPA Britain
22 Agnes Touraine Vice Chairman and
CEO Vivendi Universal
Publishing France
23 Margaret Jackson Chair Qantas Australia
24 Kathleen Bader President Dow Styrenics &
Engineered
Prod. Switzerland
25 Kathleen O'Donovan CFO Invensys Britain
26 Wanda Rapaczynksi President Agora Poland
27 Juliet Wu Shihong Executive Director TCL Holdings China
28 Vivienne Cox Group Vice
President BP Britain
29 Marma Asuncisn
Arambruzabala
Larregui Vice Chairman Grupo Modelo Mexico
30 Yoshiko Shinohara President TempStaff Japan
31 Lalita Gupte Managing Dir.
and COO ICICI India
32 Sawako Noma President Kodansha Japan
33 Imre Barmanbek CEO Dogan Group Turkey
34 Nina Wang Chair Chinachem Hong Kong
35 Li Yifei General Manager MTV China China
36 Gail Cook-Bennett Chairperson Canada Pension
Plan Inv. Bd. Canada
37 Marluce Dias da
Silva Director General Rede Globo Brazil
38 Anna Cheng
Catalano Group Vice
President BP Britain
39 Rose Marie Bravo CEO Burberry Britain
40 Britta Steilmann CEO Steilmann Group Germany
41 Galia Maor President and CEO Bank Leumi Israel
42 Magda Salarich Managing Director Citrokn Spain Spain
43 Marjorie Yang Chairman Esquel Group Hong Kong
44 Teresita Sy President SM Philippines
45 Dominique Heriard
Dubreuil Chair and CEO Remy Cointreau France
46 Gianna
Angelopoulos-
Daskalaki President Athens Olympic
Committee Greece
47 Naina Lal Kidwai Vice Chairman J.P. Morgan Stanley India
48 Barbara Cassani CEO Go Britain
49 Irene Charnley Commercial
Director M-Cell South
Africa
50 Katijah Ahmad Chair and CEO KAF Discounts Malaysia


<<fc_monitor_nov00.pdf>>

Energy Technology Research
CREDIT | FIRST
SUISSE | BOSTON

Marko Pencak (Hardware)
Neil Stein (Independent Power and e-Commerce)
Cameron Jeffreys (Associate)

 - fc_monitor_nov00.pdf


I want to trade you a 4th, 6th and 8th round pick for your 2nd.

Let me know what you think


Here's what went out this evening:

Kay


You may have already read this but thought I'd forward on just in case.  MW

 -----Original Message-----
From: 	Vignaroli, Donald
Sent:	Thursday, October 25, 2001 9:15 AM
To:	Bowers, Janet; Brennan, Lorna; Darveaux, Mary; Fritch, Bret; Graham, Charlie; Joyce, Jane; Kirk, Steve; Sebesta, Chris; Swett, Larry; Thurber, Bob; Winckowski, Michele
Subject:

How Enron Blew It
Less than a year ago, the Houston-based energy behemoth had everything: money, power, glitz, smarts, new ideas, and a CEO who wanted to make it the most important company in the world. Now its stock is down, wall street is bearish, and the CEO is gone. What went wrong?
by Mimi Swartz </mag/issues/authors/mimiswartz.php>
THE ENRON SKYSCRAPER NEAR THE SOUTH END OF HOUSTON'S DOWNTOWN feels like the international headquarters of the best and the brightest. The lobby in no way resembles the hushed, understated entryways of the old-fashioned oil companies, like Shell and Texaco nearby. Enron, in contrast, throbs with modernity. The people hustling in and out of the elevators are black, white, brown; Asian, Middle Eastern, European, African, as well as American-born. They are young, mostly under 35, and dressed in the aggressively casual uniform of the tech industry-the guys wear khakis, polo shirts, and Banana Republic button-downs. Almost preposterously fit, they move through the building intently, like winners. Enron is nothing if not energetic: A Big Brother-size TV screen frantically reports on the stock market near a bank of elevators, while another hefty black television relaying the same news greets people entering from the garage. A sculpture of the corporate symbol, an E tipped at a jaunty angle, radiates colors as it spins frenetically on its axis; a Starbucks concession on the ground floor keeps everyone properly caffeinated. Multicolored, inspirational flags hang from the ceiling, congratulating Enron on its diversity and its values; one more giant banner between elevator banks declares Enron's simple if grandiose goal: "From the World's Leading Energy Company to . . . The World's Leading Company!"
For a while, that future seemed guaranteed, as Enron transformed itself from a stodgy, troubled pipeline company in 1985 to a trading colossus in 2000. It was a Wall Street darling, with a stock price that increased 1,700 percent in that sixteen-year period, with revenues that increased from $40 billion to $100 billion. "The very mention of the company in energy circles throughout the world creates reactions ranging from paralyzing fear to envy," notes a 2001 report from Global Change Associates, a firm that provides market intelligence to the energy business.
This Enron was largely the creation of Jeff Skilling, a visionary determined to transform American business. Hired sixteen years ago as a consultant by then-CEO Ken Lay, Skilling helped build a company that disdained the old formula of finding energy in the ground, hauling it in pipelines, and then selling it to refineries and other customers. Instead, it evolved into a company that could trade and market energy in all its forms, from natural gas to electricity, from wind to water. If you had a risky drilling venture, Enron would fund it for a piece of the action. If you wanted your megacorporation's energy needs analyzed and streamlined, Enron could do the job. If you were a Third World country with a pitiful infrastructure and burgeoning power needs, Enron was there to build and build. Basically, if an idea was new and potentially-and fantastically-lucrative, Enron wanted the first crack. And with each success, Enron became ever more certain of its destiny. The company would be the bridge between the old economy and the high-tech world, and in February of this year, Skilling reaped his reward when he succeeded Lay as chief executive officer. Enron, says Skilling, "was a great marriage of the risk-taking mentality of the oil patch with the risk-taking mentality of the financial markets."
The Enron story reflects the culture that drove American business at the end of the twentieth century. Like the high-tech companies it emulated, Enron was going to reinvent the American business model and, in turn, the American economy. Maybe it was natural that this Brave New World also produced a culture that was based on absolutes: not just the old versus the new, but the best versus the mediocre, the risk takers versus the complacent-those who could see the future versus those who could not. The key was investing in the right kind of intellectual capital. With the best and the brightest, a company couldn't possibly go wrong.
Or could it? Today Enron's stock trades at around $35, down from a high of $80 in January. The press cast Enron as the archvillain of California's energy crisis last spring, and Skilling caught a blueberry pie in the face for his relentless defense of the free market. A long-troubled power plant project in India threatened the company's global ambitions. Telecommunications, in which Enron was heavily invested, imploded. Wall Street analysts who once touted the company questioned its accounting practices. Some of the change in Enron's fortunes can be attributed to the economic downturn in uncertain times that has afflicted all of American business. But the culture that the company created and lived by cannot escape blame.
ENRON, JEFF SKILLING SAYS, HAD "a totally different way of thinking about business-we got it." At Enron, in fact, you either "got it" or you were gone-it was as simple as black and white. It is not coincidental, then, that the color scheme of Skilling's River Oaks mansion mirrors the corporation he once headed. Here, the living room's white walls shimmer against the mahogany floors. Black leather trims the edge of snowy carpets. Billowy sofas set off the jet-black baby grand. In the entry, white orchids cascade from a black vase on a black pedestal table that in turn pools onto cold, white marble. There is only one off-color note: After almost twenty years, Jeff Skilling is no longer associated with Enron, having resigned abruptly after just six months as CEO. Once, Skilling was hailed as the next Jack Welch (General Electric's masterful CEO), as one of Worth magazine's best CEO's in America (anointed in 2001), and even as a daredevil who hosted the kind of unchained adventure junkets in which, a friend told BusinessWeek, "someone could actually get killed." Today, he sounds more like Ebenezer Scrooge on Christmas morning. "I had no idea what I'd let go of," Skilling says of all the personal sacrifices he made while retooling Enron.
From a black chair in the white library, across from a huge black and white photograph of his daughter and two sons, Skilling clarifies. The demands of working 24-7 for Enron caused him to ignore his personal finances. Divorced, he lived in a 2,200-square-foot house without a microwave or a dishwasher. He almost missed his brother's wedding. "Learning a foreign language-I never learned a foreign language!" he exclaims. He never once took his youngest son to school. "I'm interested in the kids. You don't do kids in fifteen-minute scheduling." Travel: "You can't go to Africa for a week and get anything out of it!" Skilling includes the study of architecture and design on his list of missed opportunities, then he stops and sighs. "I'm not sure that fulfillment in life is compatible with a CEO's job," he says, finally. Then his eyes lock on mine, and his voice, which had softened, regains its pragmatic edge. "It would have been easy to stay," he says. "But that would not have been good for me."
He's a smallish, ruddy-faced man who keeps himself at fighting weight, handsome in the way of corporate titans, with piercing cheekbones and that assiduously stolid gaze. But the impatience Skilling once reserved for cautious underlings and dull-witted utility company executives is now targeted at reporters who have labeled his resignation "bizarre" and associates who are bitterly skeptical of his need for family time. His shrug stretches the limits of his shimmering blue button-down, and his matching blue eyes look put upon. "I'm surprised," he says, "that people have so much trouble understanding this."
PEOPLE WHO PASSED THROUGH DOWNTOWN HOUSTON in the late eighties or early nineties couldn't help but notice a funny and, for its time, novel scene unfolding throughout the workday at the base of the Enron Building. From nine to five and before and after, you could see people slipping out of the pristine silver skyscraper to smoke. They perched on the chrome banisters or lurked near the glass doors at the entry, puffing like mad. They always looked hurried and furtive, even ashamed. Whatever people knew about Enron in those days (and most people didn't know much), it was often associated with that scene: Enron boasted one of the first nonsmoking corporate headquarters in Houston, and there couldn't have been clearer evidence of its break with the energy world of the past. What macho engineer would have put up with such humiliation?
But this company was a child of another time, that period in the mid-eighties when chaos enveloped the gas business. Federal deregulation of natural gas turned a steady, secure industry, in which gas pipeline companies frequently enjoyed a monopoly in portions of the areas that they served, into a volatile free-for-all. The situation was compounded five years later by federal deregulation of the pipeline business. So it happened that a gentlemanly gas pipeline company, Houston Natural Gas (HNG) found itself under attack from Coastal Corporation, Oscar Wyatt's less than gentlemanly firm. HNG was then run by Lay, a sturdy, taciturn former economics professor and Transco chief operating officer who had a passion for military strategy. (His doctoral thesis at the University of Houston was on supply and demand in the Vietnam War.) Lay, who was from Missouri and never succumbed-at least outwardly-to Texas brashness, had done well enough: Thanks to canny expansions, HNG's pipelines stretched from Florida to California and throughout the state of Texas.
HNG fended off Coastal, but to protect the company from other takeover attempts, Lay nimbly engineered the sale of HNG in 1985 to a friendly Nebraska pipeline concern called InterNorth, one of the largest pipeline companies in the country at the time. Then, a funny thing happened: HNG started acting in a way that would characterize the company for years to come-a lot like Coastal. What the Nebraskans blithely labeled "the purchase" was being called "the merger" back in Houston, and before long, following some particularly brutal politicking between Omaha and Houston, the company's center of gravity started shifting toward Texas, and shortly after that, Ken Lay was running a new company called Enron. "Over time it became clear that Lay had a better vision of the future," says one person associated with Enron at that time. "He never fought change. He embraced change."
Lay had won, but what exactly did that mean? Enron was saddled with massive debt from the takeover attempt, and thanks to deregulation, no longer had exclusive use of its pipelines. Without new ideas-for that matter, a whole new business plan-the company could be finished before it really even got started.
LIKE MANY PEOPLE WHO TEAMED UP WITH ENRON IN THE EIGHTIES, Jeff Skilling had spent a lot of time in the Midwest, and he was self-made-at fourteen he had been the chief production director at a start-up TV station in Aurora, Illinois. (His mother would drop him off there every day after school.) "I liked being successful when I was working, and I was smart," he told BusinessWeek earlier this year. But unlike many of his Enron colleagues, Skilling wasn't deliberate and soft-spoken and happy to go home at five o'clock; he was anxious and excitable, and nothing, but nothing excited him more than what he would come to call "intellectual capital." He loved being smart, and he loved being surrounded by smart people. He graduated from Southern Methodist University, went into banking-assets and liability management-and took on Harvard Business School, where he graduated in the top 5 percent of his class. Then Skilling took the next step on what was then the new, souped-up path to American success: He joined Manhattan's McKinsey and Company as a business consultant, and that is where Ken Lay found him in 1985.
It is often said of Lay that his instincts for hiring the best are flawless, and his choice of Skilling probably saved the company. Skilling was above all an expert at markets and how they worked. While everyone else was worrying about the gluts and the shortages that defined the gas industry, he alone saw the parallels between gas and other businesses. And so in a world where credit was nearly impossible to come by, Skilling came up with what he called the Gas Bank, which contractually guaranteed both the supply and the price of gas to a network of suppliers and consumers. Enron would not be a broker but a banker. It would buy and sell the gas itself and assume the risk involved. And Enron would make money on transactions, much like an investment bank would.
Skilling worked up some numbers and found them "absolutely compelling." Then the McKinsey consultant took the idea to a meeting of about 25 Enron executives. He had a one-page presentation. "Almost to a person," Skilling says, "they thought it was stupid." Almost. After Skilling left the meeting dejected, he walked Ken Lay to an elevator and apologized. Lay listened and then said, "Let's go."
The Gas Bank was not an overnight success. For months Skilling woke up in a cold sweat, sure he had ruined not only his career but the careers of dozens of colleagues who had assisted him. In fact, he had come upon one of those divides that seem to define his life: "I believed this whole world would be different, a huge breakthrough" is the way Skilling puts it today, and even if he is typically immodest, he was right. Fairly soon after launching, the company sold $800 million worth of gas in a week. True to Skilling's character, success turned out to be a matter of old versus new: He says the joke around Enron was that if a company's CEO was under fifty, "We were in." And he was in too: In 1990 Skilling finally left McKinsey and joined Enron as the head of Enron Finance Corporation, a new division created just for him. In 1991 that company closed a deal that earned $11 million in profit. After that, says Skilling, "we never looked back."
Skilling and Lay also realized that the Gas Bank couldn't work unless it had a trading component. Myriad trades were needed to build the market that would make the project go. But by buying and selling enormous quantities of gas, Enron not only constructed a market but almost instantly came to dominate it. The company had the best contacts, the best intelligence, and the best access to supplies. That, in turn, attracted more customers who wanted to be part of the play. With so many customers in its pocket, Enron could better predict the direction of the market and could use that knowledge to make trades for its own benefit-Enron could in effect bet on which way the price of gas would go, as one might do with pork bellies or soybeans, but with startling accuracy, thereby generating profits higher than anyone could have ever imagined.
THIS CHANGE COULD NEVER HAVE OCCURRED without another change Skilling had made: He created, within Enron, a new culture to match its new trading business. The idea was to build a "knowledge-based business," which demanded a skill set not exactly prized by Enron's employees from the old HNG days. Most were deliberate, cautious, responsible, somewhat defensive people, most of them men, of course-the kind of people you'd expect to find working in an industry regulated by the federal government. But now the company needed bolder people for its bold new era: that included anyone who wanted to make money-lots of money-for themselves and for the company. "Enron was going to create a niche for itself or die," one former executive explains. "The people who had narrow views eventually were forced out, because if they had narrow views about other things, they had narrow views about the market."
Skilling wanted smart people but not just any smart people. He wanted the smartest people from schools like Harvard, Stanford, and maybe, Rice. And because his firm was now acting more like a bank than a pipeline company, he wanted to draw from the pool of recruits that would be attracted to the biggest and best investment banks, like Merrill Lynch or Credit Suisse First Boston. In addition to being smart, Enron people were also supposed to be "aggressive." You were right for Enron if you didn't want to wait until you were thirty to close your own deals or move up in an organization.
You could see what he was looking for on "Super Saturdays" at the Houston headquarters: eight fifty-minute interviews with ten minute breaks in between-the company might herd as many as four hundred people through in just one day. They were scored from 1 to 5 on their smarts, their problem-solving ability, their passion for hard work, and what at Enron was called "a sense of urgency." People who scored less than 2.5 were scratched. The shrewdest candidates knew how to work Enron before they were even hired: These were the types that automatically turned down the company's first offer, knowing Enron would come back with more. The starting salary was around $80,000. Maybe it wasn't a fortune-yet-but the signing bonus, about $20,000, was more than enough for a lease on the obligatory Porsche Boxster or one of the lofts being renovated close to downtown. (Enron people didn't live in far-flung suburbs. Suburbs were uncool and too far from the office.)
For the lucky winners, Enron offered the corporate equivalent of a gifted-and-talented program. New associates learned the latest techniques for structuring energy deals, and there were rotations at Enron offices around the globe. The hours were long, but every possible need was taken care of. A company concierge handled all the things important people couldn't be bothered with: picking up dry cleaning or prescriptions, shining shoes, cleaning the house, planning a vacation. Of course, a lot of people who worked for Enron never got to take vacations-they were too busy making money-but they could use the company gym and the company's personal trainers. If they were overweight or wanted to quit smoking, they could join Enron's Wellness Program. Massages were offered six days a week, from seven in the morning until ten at night. "They were so cutting edge," rhapsodizes someone involved with the company health care program at the time. "They really thought about the psychology and what it took to keep these people going."
Skilling handed out titles analogous to those at Wall Street firms-analysts, associates, directors, and managing directors-but everyone knew that those titles didn't really matter. Money did. Instead of competitive salaries and decent bonuses, Enron offered competitive salaries and merit-based bonuses-with no cap. "If you really worked hard and delivered results, you could make a lot of money," says Ken Rice, who stayed with Enron for 21 years until resigning recently as the head of the company's faltering broadband division. Or, as the saying goes, you got to eat what you killed. Gas traders with two or three years of experience could wind up with a $1 million bonus. And the more you produced, the closer you got to Jeff: Real hot dogs joined him glacier hiking in Patagonia, Land Cruiser racing in Australia, or off-road motorcycling in a re-creation of the Baja 1,000 race, ending at a spectacular Mexican villa. "Every time he'd speak, I'd believe everything he'd say," one loyalist says.
And why not? By 1995 Enron had become North America's largest natural-gas merchant, controlling 20 percent of the market. But at a company where the buzzword was "aggressive," that was no place to stop: Skilling and Lay believed the Gas Bank model could easily be applied to the electricity business. Firmly committed to the notion that a deregulated market meant better service at lower prices for consumers (and untold profits for Enron), they began barnstorming the country, pressing their case with entrenched power company presidents (who, with their multimillion-dollar salaries and monopoly service areas, had little incentive to change) and energy regulators (who were somewhat more receptive, thanks in part to Enron's generous lobbying efforts).
But the biggest winner of all was probably Jeff Skilling. In 1997 Ken Lay made him the president and chief operating officer of the company. By then, the division known as Enron Capital and Trade Resources was the nations largest wholesale buyer and seller of natural gas and electricity. The division had grown from two hundred to two thousand employees, and revenues from $2 billion to $7 billion. "Mr. Skilling's experience so far with the turmoil in the industry has convinced him that he is on the right track," the New York Times noted. Everyone would certainly have thought so: Enron and Skilling had totally transformed one industry and were well on their way to transforming another.
"FIRING UP AN IDEA MACHINE; Enron Is Encouraging the Entrepreneurs Within," sang the New York Times in 1999. "In the staid world of regulated utilities and energy companies, Enron Corp is that gate-crashing Elvis," crowed Fortune in 2000. Wall Street was demanding tech-size growth on a tech timetable, and Enron, in 2000, obliged with second quarter earnings of $289 million, up 30 percent from the previous year. That year the company seemed to discover a market a minute: Under Skilling, Enron was trading coal, paper, steel, and even weather. No one blinked when a London wine bar became an Enron client. People drank more in warm weather than cold, so why not buy a hedge against the usual winter downturn?
But most exciting to the financial world was Enron's entry into high-tech communications. Because of the company's marketing dominance, EnronOnline became another overnight success, handling $335 billion in commodity trades online in 2000. Enron, as usual, made its money on the spread between the bid price and the asking price. Then there was the broadband business: To Enron, trading excess capacity in large, high-speed fiber-optic networks (empty lanes on the fabled information highway) wasn't that different from trading the capacity of natural gas pipelines. So Enron created a market for what the industry calls bandwidth. Soon after, it also announced a twenty-year deal with Blockbuster to deliver movies on demand electronically to people in their homes. Enron looked like a company that couldn't lose. "Its strategy of building businesses, shedding hard assets, and trading various commodities can help it do well even in an uncertain market," BusinessWeek insisted.
There was, however, another reason Enron did so well in such a short time: the company's hard-nosed approach toward its customers. The old notion of customer service was based on the long haul-you had to nurse and coddle customers to keep them. But Enron had new markets and new ideas-customers had to come to it. Over time, the company stopping referring to its business clients as customers and began calling them "counterparties."
Skilling wanted the biggest profits on the shortest timetable: Gains were maximized by creating, owning, and then abandoning a market before it became overtaxed and overregulated. So if you wanted to launch a high-risk venture quickly-such as Zilkha Energy's new high-tech approach to drilling for oil-you got your financing from Enron because a bank would take forever to underwrite the project, if it ever would. But because Enron invented its markets and subsequently dominated them, Enron could set the terms of its deals, from the timeline to the method of accounting to whether the deal happened at all.
While many businesses used what was known in the industry as "mark-to-market accounting," for instance, Enron used it on an unprecedented scale. The company priced their deals at current market value-but it was always Enron's idea of the market value; companies that balked at their pricing didn't get deals. And while old-fashioned companies spread their profits out like annuities over a period of years, Enron took most of its profit up-front. However many millions would be made on a deal that covered several years, they went on the books in the current year. If a few analysts thought there might be something fishy about what they called "subjective accounting," investors didn't particularly care as long as the profits rolled in. As the market fluctuated and the landscape changed, the company might abandon a project that had been in the works for months because its profit margins weren't going to be high enough. "Enron is known for leaving people at the altar," says one former employee. Winning the highest possible profits for the company could even extend to Enron's attitude toward charity. When a fundraiser for the Houston READ Commission, a literacy group, called on Enron for a contribution, it was suggested that he start raising money for Enron's competing literacy charity: "Even the person who was supposed to give money away for Enron was supposed to make money for Enron," he says.
As Enron became more and more successful, the culture Skilling had created took on a dark side: The competition turned inward. As one member of the Enron family put it, "It became a company full of mercenaries." The change started at the bottom. As Enron's domination of the energy market grew, most of the recruiting frills fell away. New associates were treated much like the commodities the company traded. Global Change's Enron spies reported overhearing orders like "I need a smart person-go buy me one" or "Buy me an intelligent slave, quick." Enron had never been the kind of place where people sang to you on your birthday, but now the workaholism bordered on self-parody: A Random Acts of Kindness program lasted only a few months. It was too disruptive. People couldn't get their work done.
And, of course, Enron had a program for institutionalizing creative tension. The Performance Review Committee, which had initially been installed by Skilling in the Capital group, became known as the harshest forced ranking system in the country. Employees were rated on a scale of one to five, and those with fives were usually gone within six months. (The PRC's nickname quickly became "rank and yank.") It was a point of pride that Skilling's division replaced 15 percent of its workforce every year. As one Skilling associate put it, "Jeff viewed this like turning over the inventory in a grocery store." Skilling's approach to business-get in and get out-had become Enron's attitude toward its workers. In time, it would become many workers' attitude toward the company. Teamwork, never that valuable in a trading culture, went the way of the eyeshade and the abacus. If protocol required an Enron higher-up to come from Europe to help with a project in the Third World, he might help-or he might not, depending on whether another, potentially more lucrative project was pending elsewhere.
Everyone felt the pressure to perform on a massive scale at massive speed: "They were so goal oriented toward immediate gratification that they lost sight of the future," says one former employee. Anyone who couldn't close deals within a quarter was punished with bad PRC scores, as were the higher-ups who had backed them. Past errors and old grudges were dredged up so often as new ammunition in PRC meetings that the phrase "No old tapes" became an Enron clich?. "People went from being geniuses to idiots overnight," says one former Enron executive.
In such a hothouse, paranoia flowered. New contracts contained highly restrictive confidentiality agreements about anything pertaining to the company. E-mail was monitored. A former executive routinely carried two laptops, one for the company and one for himself. People may have been rich at Enron, but they weren't necessarily happy. One recruiter described the culture this way: "They roll you over and slit your throat and watch your eyes while you bleed to death."
BEFORE JEFF SKILLING COULD TRANSFORM ENRON from the world's leading energy company into the world's leading company, he had to make one more change: Just as he had done ten years before, Skilling had to purge the company of its remaining old order. Where Enron once prized cautious executives who dealt with tangible assets like pipelines, it now valued bold executives who dealt with intangible assets. Pipelines, power plants-they may have been Enron's pride, but Skilling wanted them gone. Expensive, long-term building projects had no place when Wall Street was devoted to quick profits and enormous returns on investment capital, and Skilling knew it. "It wasn't the time for long-term approaches," an Enron executive says of Wall Street's mood. "It was the technology era."
To rid Enron of the last vestiges of its past, Skilling had to take on Rebecca Mark, long considered his rival for the CEO's job. Mark was for many years the poster child for the Enron way: Young, attractive, aggressive-her nickname was Mark the Shark-she came from sturdy Midwestern stock but had the requisite Harvard MBA. Mark was largely responsible for the success of Enron International, the asset-heavy side of the company where she developed $20 billion worth of gas and power plants, which accounted for 40 percent of Enron's profits in 1998. For this she reaped breathtaking compensation-one Enron executive estimated $10 million-and adoring press clips, including two appearances on Fortune's list of the fifty most powerful women in corporate America.
But then Mark ran into trouble with a gas-fired power plant in Dabhol, India, one of the largest ever constructed. She had played the game the Enron way: Taking Enron into a new market, she had finagled low import taxes (20 percent instead of the usual 53) and hung in through 24 lawsuits and three changes in government. But the time and expense needed to make India and other Enron plants around the globe successful did not mesh with Enron's goals, and Skilling's impatience with Mark grew.
Forcing Mark out, however, was no easy matter. Key executives left, divisions were dismantled, but she remained. The truth was Enron didn't mind firing lower-level employees, but it hated to fire the kind of aggressive, relentless people it tended to promote. The company preferred humiliation-keeping a director in his cubicle, say, but failing to include him in the glamour deals, or kicking someone upstairs with a fancy title. (One particularly difficult executive won a few years at graduate school, gratis.) A company as smart as Enron could probably deduce too that dispatching one of the most visible businesswomen in the country would provoke a public-relations disaster. So Lay and Skilling did something classically Enronian: They gave Mark her own company. Despite Skilling's contempt for asset-heavy businesses, Enron spent more than $2 billion to buy a run-of-the-mill British water utility that could serve as Enron's entry into the emerging world of water privatization. Mark was put in charge of making Enron, yes, the world's greatest water company. Azurix, as the new business was called, looked like another sure thing: Its IPO in 1999 raised $695 million.
But Mark had to succeed on Enron's increasingly abbreviated timetable in a business fraught with political and emotional complexities. Water is not like gas or electricity-owners and governments are a lot less willing to give it up, even for lots of money. The company stumbled, layoffs commenced, and confidence evaporated. By August 2000 the stock price, which had started out at $19, had fallen to $5. Mark's resignation followed, and Azurix, much diminished, was folded into Enron. "I think it's best for Rebecca to start afresh," Lay, who had been a mentor to Mark, told the Wall Street Journal. Or as one critic put it, "They were more interested in destroying the old culture than running a business."
As 2000 drew to a close, Skilling was in total command. In December Ken Lay announced the inevitable: "The best time for the succession to occur is when the company is doing well," he told the press. "Enron is doing extremely well now." In February 2001 Jeff Skilling took over the CEO's job.
ALMOST IMMEDIATELY THE TROUBLE STARTED. Enron's domination of the electric-power market made it an instant target in the California deregulation debacle. Both PBS's Frontline and the New York Times took on Enron, portraying the company as a heartless colossus that used its influence in Washington (Lay and Enron's political action committee are the top contributors to George W. Bush) to force old people on fixed incomes to choose between buying food or electricity. Skilling and Lay appeared on camera singing belligerent anthems to the free market, while another memorable scene juxtaposed one of the company's jackallike traders against a hapless state employee in California, as both tried to buy power online. The Times reported that Lay had tried to persuade a new federal commissioner to change his views on energy deregulation. The bad press was, to say the least, ironic: Just as the media was pounding Enron for its omnipotence, Wall Street was discovering its weaknesses. By late March the stock price had slid to $50 a share from $80 in January.
Within Enron, the asset-based divisions took the rap for the decline. (The India plant continued to be enormously costly, at least in part because of constant turnover within Enron's management team.) But the California situation was more visible and therefore more damaging, despite Enron's claim that the state had never built enough power plants to service its population and never properly managed those it had. "For three months Gray Davis did a very good job of blaming us," says Mark Palmer, a vice president for corporate communications. "We were a Texas company. There was a Texan in the White House. California was a state that didn't put him in office, and his biggest contributor was a Texas energy company. Performance is going to take care of our stock price. The truth will take care of Gray Davis." (California utilities still owe Enron $500 million, another reason stockholders might be panicky.) But more problematic than the crisis itself was Skilling's all too apparent lack of contrition. Facing down his critics, he cracked a joke comparing California with the Titanic. ("At least the Titanic went down with its lights on.")
But the biggest problem was Enron's telecommunications division, which had been responsible for at least one third of its heady stock price. Investors believed that Enron could revolutionize high-speed communications, just as it had revolutionized gas and power. Enron estimated the global market for buying and selling space over fiber-optic cable would grow from $155 billion in 2001 to $383 billion by 2004-but then the tech bubble burst. So too did the much-hyped movies-on-demand deal with Blockbuster. For the first time in its confoundingly successful life, Enron had nothing new to take to market. Like the popular high school girl who suddenly packs on a few pounds, Enron suddenly looked less alluring to Wall Street.
Skilling launched a campaign to keep Enron's most important cheerleaders, the stock analysts, in the tent, but he wasn't cut out to be a supplicant. During the reporting of first quarter profits, he called an analyst who challenged Enron's financial reporting an "asshole." When the company reported hefty second quarter profits, many analysts questioned whether those profits had come from the generation of new business or from the sale of old assets. Ignoring the growing chorus critical of Enron's accounting, Skilling promised, as he always had, that innovations were just around the corner. "There wasn't any positive news," Carol Coale, of Prudential Financial, says now. "Basically, he talked me out of a downgrade."
The business press, so generous in the past, turned surly. Fortune had asked in March whether Enron was overpriced. ("Start with a pretty straightforward question: How exactly does Enron make its money?") The routine cashing in of stock options that were about to expire by key executives was portrayed in the media as a fire sale. (Skilling had sold $33 million worth, Ken Lay and Ken Rice close to four times that amount.) Then the Wall Street Journal reported on a fund run by the CFO that had been a source of strife within the company. (It was essentially risk management against Enron's possible failures.) Every negative story seemed to produce a concurrent drop in the stock price: By late August it had fallen below $40. Enron, so institutionally unforgiving, finally got a taste of its own medicine. "When Wall Street is in love with a stock, they're forgiving of something like accounting," says Carol Coale. "When a company falls out of favor, all these issues carry more weight."
This fact was not lost on people inside the company, who suddenly started experiencing an attack of conscience. Those who had looked the other way as the most powerful Enron executives dumped their wives and married their secretaries or carried on flagrant interoffice affairs now saw the error of their ways. "It just created an attitude," one executive still at Enron says. "If senior people are doing that, why are we held to a higher standard? There was a real culture of 'We're above everyone else.'"
Loyalty had never been prized at Enron, so there was no reason to expect it now. An old-fashioned, slow-moving company like Exxon could demand hardship duty in Baku with the promise of greater rewards down the road. "But," as one Houston oilman explains, "if you have to negotiate a hardship duty with someone who doesn't have loyalty and has money, then you have a corporation that's better suited for good times than bad."
As it turned out, that description applied to Jeff Skilling too. As the stock price stubbornly refused to ascend, he made no secret of his unhappiness and frustration. Then, after a trip to visit the families of three employees killed at a plant in England, he had an epiphany: Life was short; for him, Enron was over. Ever stoic, Ken Lay returned to the CEO's office, named a new president, arranged a trip to New York to calm analysts and investors, and promised a kinder, gentler Enron in the future. Trading anything and everything was out. The company, Lay says, will still innovate but "innovate much closer to our core." As for the culture: "Things like the Performance Review Committee, I think we could have applied better. By trying to categorize people into so many different categories, you ended up creating a morale problem."
That Skilling's supposedly brilliant colleagues were as shocked at the news of his departure as the rest of the business community may be testament to their lack of emotional intelligence. Despite Skilling's lengthy tenure with Enron, he'd always been contemptuous of the long haul; he'd always believed in cutting losses and moving on. But now that he was abandoning them when the company was in trouble, it was different. "Even Jeff's biggest detractors wouldn't have wanted him to walk out the door," one loyalist admits.
But on the day we meet, Skilling is looking forward, not back. "Look," he says with finality, "ninety percent of my net worth is in Enron. Were my interests aligned with the shareholders? Absolutely."
Free of falling stock prices and shareholder pressures, he is nestling himself back into the world of ideas. His eyes flash as he talks about new technologies. "The first wave never gets it right," he says. "The stand-alone dot-coms didn't work, but the technological applications will create a second wave that will change the world." Houston, he promises, will become the world's center of commodity trading, and he intends to be a part of it. In fact, he is already shopping for office space.
"This is the second wave, and Enron's got it," he says, almost breathless. "There are thousands of people running around the streets of Houston that get it."


Darren

The counterparty short name you gave me doesn't exist in TAGG.  Is this a new name?

Kam
x3-5781


Shi-Jie Deng
Assistant Professor
School of ISyE
Georgia Institute of Technology

Office Phone: (404) 894-6519
E-mail:       deng@isye.gatech.edu
Home page:    http://www.isye.gatech.edu/~deng


This request has been pending your approval for  6 days.  Please click http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000038057&Page=Approval to review and act upon this request.

Request ID          : 000000000038057
Request Create Date : 5/31/01 4:11:15 PM
Requested For       : brad.mckay@enron.com
Resource Name       : VPN/IPASS
Resource Type       : Applications


Good to hear from you.  Happy Anniversary.  Arianna is growing everyday.  I
have been working long hours,
so she looks different every time I come home to her and Kati.  Kati is
well, trying to adjust to motherhood and
constantly watching over the baby.  She is off until September 1.  No major
plans for the summer.  Going to
Boston the third week in July for 5 days.  My golf game is barely treading
above water.  Don't play enough.  Such
is life.  Say hello to Megan and your family for me.  I hope we can get
together when you are in town. Until then, go sox.

Jon

                    Benjamin.Rogers
                    @enron.com             To:     JPenney@hollandlessard.com
                                           cc:
                    06/08/00 06:57         Subject:     Re:
                    PM

Hey Jon;
Just e-mailing to see how everyone is doing.  Megan and I are going over to
Austin to a resort to celebrate our 1st anniversary - I can't believe it.
I've been trying to work on the golf game, but I'm taking a couple of
graduate business courses at night so that keeps me pretty busy on the
weekends as well.  Hope all is well and I'll talk to you soon.
Go Sox!
Ben


Here are the approvals for 10/31/00


-----Original Message-----
From:  "Kilpatrick, Alan M." <AMKilpat@southernco.com>@ENRON
[mailto:IMCEANOTES-+22Kilpatrick+2C+20Alan+20M+2E+22+20+3CAMKilpat+40southernc
o+2Ecom+3E+40ENRON@ENRON.com]
Sent: Friday, June 01, 2001 6:05 PM
To: Webber, Les; Demoes, Phil; 'Dan.Hyvl@enron.com';
'renata.demoes@compaq.com'
Cc: McKenzie, William N. (Norrie)
Subject: FW: Enron LNG

Please see the draft below.

Alan Kilpatrick --- * - 205/257-6143 --- * - 250/257-7795 ---  * -
amkilpat@southernco.com <mailto:amkilpat@southernco.com>

-----Original Message-----
From: Bailey, Donna [SMTP:dbailey@balch.com]
<mailto:[SMTP:dbailey@balch.com]>
Sent: Friday, June 01, 2001 5:58 PM
To: Alan M. Kilpatrick
Subject: Enron LNG

 <<FG1Z01_.doc>>

 - FG1Z01_.doc


Hey Lisa,

Once again I am so impressed with your organizational skills when it comes to this wedding.  Just wanted to let you know that I will definitely be attending the luncheon on Friday and may even end up riding to SA with Jen (which always makes the drive that much more enjoyable).

As for the "Manicures and Pedicures for the Girls", I would like to put my order in for a Turkey Breast sandwich on white.  I can't wait till next weekend, it's going to be so much fun...can you believe it's almost here?

Love ya,
Susan

PS - I've mailed the receipt for your nightie so you should get it by Saturday...sorry it took me so long.

	Enron Capital & Trade Resources Corp.  From:  Lisa.A.Meador@chase.com                           03/28/2001 12:28 PM

To:	ashleastu@aol.com, sscott5@enron.com
cc:
Subject:	Manicure Party

Girls-

Hopefully you got your itinerary in the mail.  Please email me first, if
you did not get it and second, what your order is from Zito's.  The menu
should be in there.

Thanks!
It's really coming up!!!

Love you!
Lisa


Steve, as Dana indicated in his response to your message, Louis Dreyfus is
maintaining that their transactions with Todoroff are totally legitimate and
binding upon EOTT.  Vinson & Elkins is of the opinion that before we assert
an argument to Louis Dreyfus regarding the validity of their contract, we
need to hear the tapes of Todoroff's conversations with Louis Dreyfus.  The
"paper" that we have (including the notes from the Louis Dreyfus contract
administrator) certainly indicates that Louis Dreyfus suspected or knew that
something was not quite right about the December 1999 transaction with
Todoroff, but it is not enough to make a very good case for challenging the
validity/enforceability of that contract.  We need more.  John DeGeeter of
Vinson & Elkins has spoken with Louis Dreyfus'  general counsel.  Louis
Dreyfus' general counsel has told John that before he will consider providing
EOTT with the tapes, he wants EOTT to set forth in writing the reason EOTT is
requesting the tapes.  Louis Dreyfus' general counsel has also indicated that
he is not sure that Louis Dreyfus taped these conversations.

Although a final decision has not been made, here's where I think we are
headed with Louis Dreyfus.  We will send their general counsel a letter next
week indicating the irregularities with this contract (e.g. the prices quoted
in the contract were far below market, and the contract administrator had
questions about Todoroff's authorization and the "legality" of the deal).
This proposed letter would then suggest that Louis Dreyfus provide us with
their tape recordings of the conversations with Todoroff in order that we can
immediately resolve our questions as to whether one of Louis Dreyfus'
employees knowingly assisted Todoroff in his scheme to defraud EOTT.  My
guess is that a letter of that nature will at least cause Louis Dreyfus'
lawyers to listen to the tapes.  If the tapes do contain incriminating
conversations, we might see a softening of their negotiating position.  If
the tapes do not contain anything incriminating, it would seem to be in Louis
Dreyfus' best interest to provide us with the tapes to support their position
that there was nothing irregular about the transaction.

Steve Duffy
03/16/2000 01:47 PM
To: Walt Zimmerman/Houston/Eott@Eott
cc: Dana Gibbs/Houston/Eott@Eott, Lori Maddox/Houston/Eott@Eott, Susan
Ralph/Houston/Eott@Eott, Michael Burke/Houston/Eott@Eott, Stanley
Horton/Corp/Enron@Enron

Subject: Re: Todoroff Prosecution--CONFIDENTIAL/SUBJECT TO ATTORNEY-CLIENT
PRIVILEGE

Thanks for the update, Walt.  One option we were considering was a "share the
pain" settlement with Dreyfus, whereby they would let us buy out of the
remaining position at a steep discount (to acknowledge their contributory
negligence in this matter).  Has there been any additional headway in this
area?  I'm on vacation and haven't heard anything on this.  Weren't we going
to send a V&E litigator to visit Dreyfus' general counsel? If we commence
legal proceedings against Dreyfus, things will become costly and contentious
between us. Information will come slowly and grudgingly.  We have copies of
some of their internal notes which indicate that they knew---or should have
known---that something wasn't quite right with Todoroff's situation.  Before
we start filing discovery motions, we should exhaust the possibility of
meeting with their general counsel to see if a quick "business" settlement
can be obtained.  Please advise. Thanks.  SWD

WALT
ZIMMERMAN
03/16/2000 11:47 AM

To: Dana Gibbs/Houston/Eott@Eott, Lori Maddox/Houston/Eott@Eott, Susan
Ralph/Houston/Eott@Eott
cc: Michael Burke/Houston/Eott@Eott, Steve Duffy/Houston/Eott@Eott, Stanley
Horton/Corp/Enron@Enron

Subject: Todoroff Prosecution--CONFIDENTIAL/SUBJECT TO ATTORNEY-CLIENT
PRIVILEGE

Earlier this week, I spoke with Bill Moore (the chief prosecutor in the
Harris County District Attorney's Special Crimes Unit) regarding the
above-referenced matter.  Mr. Moore acknowledged receiving the investigative
materials that we submitted last week, and he indicated that his office is
commencing its review of those materials.  I emphasized to Mr. Moore the
desire of EOTT's management to have this case aggressively prosecuted.  Mr.
Moore acknowledged that the aggressive prosecution of this matter would send
a strong message to other traders who might consider dishonest acts, and he
assured me that his office would vigorously pursue this matter.  Based upon
some statements made by Mr. Moore during our discussion, it was obvious that
he recalled much of the presentation from our initial meeting.  I will call
Mr. Moore again tomorrow afternoon to get an update on the progress of this
matter.

We are also attempting to obtain from Louis Dreyfus tape recordings of
Todoroff's conversations with them regarding the series of deals that we are
describing as "The Second Transaction."  If Louis Dreyfus does not
voluntarily provide us with copies of those tapes (or if they assert that
tapes do not exist), the next step will be to consider filing a lawsuit or
seeking a bill of discovery in order to obtain the tapes.  Based upon some
notes we have received from a contract administrator at Louis Dreyfus, it
appears that Louis Dreyfus also suspected or knew that something was amiss
with The Second Transaction.  Assuming that Todoroff's conversations with
Louis Dreyfus were taped, the tapes should tell us whether Todoroff had a
conspirator at Louis Dreyfus who assisted him in his scheme to defraud EOTT.

If Louis Dreyfus does not voluntarily produce tape recordings of its
conversations with Todoroff, we will need some guidance from Enron as to how
aggressive we should be in attempting to obtain the tapes.


John:  Per my voice mail.  Please call.  Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 06/01/2000 08:05 AM -----

	Duncan Croasdale
	05/31/2000 06:11 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: ATCO Power Canada Ltd. Master Enabling Agreement

Sara,

As discussed, ECC hopes to transact with ATCO over the next week or so if we
can agree on pricing.  This is the form of agreement they propose.  It
represents
the way their 3-way JV owned plant will sell power offtake to marketers such
as Enron.  I would be interested in your opinion especially if we are close
to
commercial agreement.

Please call me if you have any questions.

Regards,

Duncan Croasdale
tel. 403.974.6718


The purpose of this message is to update employees on the
status of the California Attorney General's order regarding the preservation
of business information.  Please NOTE THE IMPORTANT POLICIES DESCRIBED
BELOW.

We have negotiated procedures with the
California Attorney General's office allowing each of you to manage your
email and hard drive capacity while still preserving business information.

Starting today, please implement the
following business information retention policies:

(1) PERSONAL EMAIL: can be kept, discarded,
etc. at will.

(2) BUSINESS EMAIL: do not delete any
business email sent or received for 24 hours.  This 24 hour delay will allow
the network to save a backup copy of the email.  After 24 hours, BUSINESS
EMAIL may be kept, discarded, etc. at will.

(3) WORD PROCESSING FILES OR FILE FRAGMENTS:
do not delete any SAVED FILE or any FILE FRAGMENT.  This policy covers any
FILE or FILE FRAGMENT that you have saved on your hard disk or the network.

(4) DATABASES: do not delete any information
in DATABASES.

(5) EXCEL SPREADSHEETS: do not delete any
information in EXCEL SPREADSHEETS.

(6) CALENDARS OR SCHEDULING PROGRAMS: do not
delete any information.

(7) OTHER ELECTRONIC DATA: do not delete any
OTHER ELECTRONIC DATA.

(8) HARD DRIVE CAPACITY: in the event that
you run out of disk space on your personal computer, you may copy files to
the network (where they will be backed up), then delete the files from your
personal computer to create the work space you need.  DO NOT DELETE ANY FILE
BEFORE YOU HAVE COPIED IT TO THE NETWORK.

In our negotiations we have discovered no
reason to believe that Enron has been singled out for investigation by the
Attorney General.  We will update you as we learn more.

Please respond promptly to this notice via
email an e-mail to me.  Your email should state that you understand and
intend to comply
with the important business information retention policies stated above.

Thanks for your help in this matter.

Tim Belden


Sally and Bob -

Here is the employee listing for Netco.

Please let me know if you have any questions.

Amy


Notice No:  01-72
February 27, 2001

NYMEX HOLDINGS, INC.
CANDIDATES, FORUM

Please be advised that a NYMEX Holdings, Inc. candidates, member forum is
scheduled to be held on THURSDAY, MARCH 8, 2001 at 3:45 p.m. in the Board
Rooms of the Exchange, One North End Avenue, New York City.

At that time, each candidate will be given the opportunity to address the
membership regarding the 2001 Annual Elections scheduled to be held on
Tuesday, March 20, 2001.

Inquiries regarding the aforementioned may be directed to Donna Talamo at
(212) 299-2372.

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

"http://208.206.41.61/email/email_log.cfm?useremail=tana.jones@enron.com&refdo
c=(01-72)"

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.


For Houston participants, please come to ECS 5112. Thanks.

 -----Original Message-----
From: 	Baughman, Edward
Sent:	Monday, January 14, 2002 12:47 PM
To:
Subject:	FW: West Contracts

The attached reflects MTM as of 1/10. We need to review all in the money positions to determine if there are any not being served.
 -----Original Message-----
From: 	Hiemstra, Nick
Sent:	Monday, January 14, 2002 12:03 PM
To:	Baughman, Edward
Subject:	West Contracts

Here are the most recent valuations:


Can you send me excel file?

-----Original Message-----
From: Sturm, Fletcher J.
Sent: Thursday, January 31, 2002 2:08 PM
To: Hayden, Frank
Subject: PowerLiquidity.xls

VaR Portfolio
Commodity
Trader
Book
Instrument
Location
Tenor
Liquidity (volume/day)
Best Risk Mitigator

Power
Ballato
ST - ECAR
Forward Phys
Cinergy
< 30 Days
5,000 MW
Power - PJM

Power
Ballato
ST - ECAR
Forward Phys
Cinergy
30 - 60 Days
2,500 MW
Power - PJM

Power
Sturm
LT - MW
Forward Phys
Cinergy
60 - 365 Days
1,000 MW
NG

Power
Sturm
LT - MW
Forward Phys
Cinergy
1 - 2 Years
750 MW
NG

Power
Kaniss
ST - MAIN
Forward Phys
ComEd
< 30 Days
1,500 MW
Power - Cinergy

Power
Kaniss
ST - MAIN
Forward Phys
ComEd
30 - 60 Days
750 MW
Power - Cinergy

Power
Sturm
LT - MW
Forward Phys
ComEd
60 - 365 Days
250 MW
Power - Cinergy

Power
Sturm
LT - MW
Forward Phys
ComEd
1 - 2 Years
150 MW
Power - Cinergy

Power
Saibi
ST - SERC
Forward Phys
Entergy
< 30 Days
2,000 MW
Power - Cinergy

Power
Saibi
ST - SERC
Forward Phys
Entergy
30 - 60 Days
1,000 MW
Power - Cinergy

Power
Carson
LT - SE
Forward Phys
Entergy
60 - 365 Days
750 MW
Power - Cinergy

Power
Carson
LT - SE
Forward Phys
Entergy
1 - 2 Years
250 MW
Power - Cinergy

Power
Saibi
ST - SERC
Forward Phys
SOCO
< 30 Days
2,000 MW
Power - Cinergy

Power
Saibi
ST - SERC
Forward Phys
SOCO
30 - 60 Days
1,000 MW
Power - Cinergy

Power
Carson
LT - SE
Forward Phys
SOCO
60 - 365 Days
750 MW
NG

Power
Carson
LT - SE
Forward Phys
SOCO
1 - 2 Years
250 MW
NG


Please review the attached.  I am still waiting on an answer from Davis
concerning Section 3.2.  It may need to be tweaked a little more.


Mike,

My number for next week is 66 (from Seasonal Holt-Winter model, SHW).

I am also fitting AGA to an ARIMAX model.  As discussed, I need weighted
temperature
data for east, west and production areas.   I would appreciate if you could
provide that data.
 After that, I could add forward price curve as explainatory variables.

Since AGA is a market mover, it is important to have an accurate model.

Zimin

To: Zimin Lu/HOU/ECT@ECT
cc:
Subject: Re: revised aga forecast for 6/23 is 65

came in at 73

what do have for next week?


Michael,

Attached are blacklined versions of the above-referenced agreements including
our comments to the same and clean versions of the documents for your
convenience.  Please feel free to call me with your questions and comments
regarding the agreements at your convenience.  Best regards.

Aaron P. Roffwarg
Bracewell & Patterson, LLP
South Tower Pennzoil Place
711 Louisiana St.
Houston, Texas 77002
(713) 221-1117 (Ph)
(713) 221-2184 (Fax)

CONFIDENTIALITY STATEMENT:
This information is intended only for the use of the individual or
entity to which it is addressed and may contain information that is
privileged, confidential, and/or exempt from disclosure under applicable
law.  If you are not the intended recipient, you are hereby notified
that any dissemination of this information is strictly prohibited.  If
you have received this information in error, please notify us
immediately by telephone at (713) 221-1117 or by fax at (713) 221-2184,
and confirm that you have destroyed this information and any copies.
Thank you.

 - RED - AMENDMENT NO 2 TO PDA_1.rtf
 - RED - AMEND NO 1 TO SPA_1.DOC
 - AMEND NO 2 TO PDA_1.doc
 - AMEND NO 1 TO SPA_1.doc


I have now reviewed the documents and discussed them with my client. It is now proposed that the Broker be Tradition Financial Services Limited of 109-117 Middlesex Street, London E1 7JF, England. The necessary changes should be made to the documents to reflect this.In the first full paragraph on the second page of the Fee Agreement in the second line "annual" should be deleted and "at the annual rate of" should be inserted after "fee". In addition, in the same line,"North American Gas" should be deleted and there should be substituted "the products specified in Exhibit A attached hereto and made a part hereof".
I look forward to hearing from you that the above is agreed.
Kind regards.
Geoffrey
-----Original Message-----
From: Greenberg, Mark [mailto:Mark.Greenberg@ENRON.com ]
Sent: Tuesday, October 30, 2001 5:02 PM
To: akurzer@tfsbrokers.com; chinn@millercanfield.com
Cc: Diamond, Daniel; Panus, Stephanie; Jones, Tana
Subject: TFS, Inc.
Alan/Geoffrey -
Below you will find a BETA and Fee Agreement for TFS, Inc. in relation
to certain European products.  These agreements reflect that TFS, Inc.
be the Broker and thus, need to be signed by the appropriate officer of
TFS, Inc.  Once they have been signed (and the accurate address for TFS,
Inc. completed in the BETA), they should be returned to my attention for
countersignature by Enron.
Please let me know if either of you should have any questions or need
anything further with regard to this matter.
Mark
 <<TFS-London Branch beta(10-30-01).doc>>       <<TFS-London Branch Fee
Agmt(10-30-01).doc>>
**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you.
**********************************************************************


Please keep this confidential and internal to the company.  Thanks.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 07/02/2001 10:12 PM -----

	"Delaney Hunter" <dhunter@s-k-w.com> 07/02/2001 06:00 PM Please respond to dhunter 	   To: "'Phil Isenberg'" <Isenberg@HMOT.com>  cc: Ann.Cohn@sce.com, brbarkovich@earthlink.net, cohnap@sce.com, cra@calretailers.com, debinorton@aol.com, derek.naten@roche.com, dominic.dimare@calchamber.com, drothrock@camfg.com, ek@a-klaw.com, fieldejr@sce.com, jdasovic@enron.com, john.redding@gene.GE.com, jstewart@cmta.net, kmccrea@sablaw.com, kt@a-klaw.com, lga@mother.com, liebmand@haynesboone.com, mdjoseph@adamsbroadwell.com, mflorio@turn.org, mkahl@ka-pow.com, Robert.Albergotti@asm.ca.gov, smutny@iepa.com, vjw@cleanpower.org, wbooth@booth-law.com, John.Fielder@sce.com, mkahl@ka-pow.com  Subject: FINAL Document/Letter

Hi all-
Here are the final document and letter. I will also be faxing everyone a
copy of the letter with signatures.

Thanks,
Delaney

 - FINAL DRAFT issues outline.doc
 - FINAL COVER LETTER.doc


---------------------- Forwarded by Greg McClendon/HOU/ECT on 01/25/2001
02:35 PM ---------------------------

Kevin Whitehurst@ENRON
01/25/2001 08:17 AM
To: Greg McClendon/HOU/ECT@ECT, Laura Vuittonet/Corp/Enron@Enron
cc:
Subject: ClickAtHome Ordering

Greg and Laura:

Below is an invitation email that contains the links to the ordering
website.  Also, ordering has been extended through the 30th of January.
Please let me know if you have any questions....  Thanks, Kevin x54429

Internet Service is now available for ordering!  As a Pilot 3 Invitee of the
ClickAtHome program, you can now order your PC and Broadband Internet Service
through the ClickAtHome Pilot website, which may be accessed at
http://clickathomepilot.enron.com (launch through Internet Explorer only).
All Pilot participants are encouraged to place their PC order by January
25th.

Many of our Internet Service vendors are ready to begin providing service to
you today, while all vendors will be ready by late February.   The
ClickAtHome Internet Service Providers whom are currently available for
internet service are:

Time-Warner in Houston, (cable modem)
Kingwood Cable, (cable modem)
AT&T - Portland.  (cable modem)

MSN, providing both dial-up and DSL service nationwide, and Cox Cable -
Omaha, providing cable modem service,  will be available in late February.
We will provide further communication as soon as MSN and Cox Cable - Omaha
orders can be placed. We appreciate your patience in advance.

To pre-qualify and sign up for service in your area today with Time Warner
Houston, Kingwood Cable or AT&T- Portland, refer to
http://clickathomepilot.enron.com for specific provider information and
instructions on how to place your order.  If you have problems launching the
site, please copy and paste http://clickathomepilot.enron.com directly into
Internet Explorer.

The ClickAtHome Team is excited to bring you these options.

ClickAtHome Team


Congressman Sessions will be on Channel 4 tonight at 5:00 pm
CST, this is the Fox station in the Dallas/Ft. Worth area.  He
will be discussing a federal oversight plan declared today, November
9, 2001, that Amtrak will not meet a congressional deadline for
achieving financial self-sufficiency, a finding that forces Amtrak
to draw up a plan for its own liquidation.


pls print for me.  thanks. dF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 03/13/2000
12:22 PM ---------------------------

Dave Waymire
03/13/2000 10:44 AM
To: Maria Pavlou/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON
cc:

Subject: TW Compressor Monetization

Attached is my analysis based on a sales price of $14.2MM and $14.8MM with a
buy back in the 7th year.  The loan structure for Hanover assumes that the
difference between the sales price and TW's buy back price would be amortized
over the contract term.  The remaining balance of the loan is assumed to be a
balloon payment at the end of the finance term.

I will put together some analysis on a 9 year term and forward this on to you
when it is completed.


Alan:

Could you please respond to the following request.  Thanks.

Mark
----- Forwarded by Mark E Haedicke/HOU/ECT on 04/20/2001 06:03 PM -----

	"Teruo Tanaka" <teruo.tanaka@ibjbank.co.jp>
	04/20/2001 02:12 AM

		 To: "Pickel Robert" <rpickel@isda.org>, "Mark Haedicke"
<Mark.E.Haedicke@enron.com>
		 cc: <Kazuhiko_Koshikawa@sanwabank.co.jp>
		 Subject: SO2 Derivatives

A Japanese trading firm has a keen interest in the above derivatives. I
would be grateful if you could send me the Master SO2 Allowance Purchase and
Sale Agreement and any other materials you may feel appropriate for novices.
They could be the first Japanese trading firm member of ISDA.


I think paul has a number of good suggestions here.  I think that tying
rankings to clear objectives does not reflect the fluidity of our charge,
though, and will lead to expectations which may not be met.  I also feel
strongly that the ranking needs to be a relative one -- I would go to a pure
number system.  We are going to need to assess at each PRC whether the
organization is strong (in which case I think it's ok to have a
disproportionate number of high ratings) or whether the organization has
weaknesses that force us to grade tougher.  You don't get that in an absolute
system with preset expectations.  I think your group in particular has done a
good job of emphasizing team work ( and punishing those who don't play well)
so we need not create a competitive or jockeying environment so long as that
emphasis is communicated explicitly.

I agree with Paul's points about giving clear, specific feed back (though I
don't think we can give a clear target for what one must accomplish to be
superior).  I also like the idea of the abbreviated mid year PRC to deal with
those we need to counsel more vigorously.  I'm not sure we can get away with
it but I am willing to give it a shot.

I think Paul is to be complimented for taking time to focus on the larger
organizational issues .... very vice presidential of him... no overstepping
of bounds ... quite the contrary.

	Richard Shapiro@EES
	10/31/2000 02:52 PM

		 To: Steven J Kean/NA/Enron@Enron
		 cc:
		 Subject: PRC Stuff

Can we discuss?
---------------------- Forwarded by Richard Shapiro/NA/Enron on 10/31/2000
02:52 PM ---------------------------

Paul Kaufman@ECT
10/27/2000 07:04 PM
To: Richard Shapiro/NA/Enron@Enron
cc:

Subject: PRC Stuff

Here's my effort to respond to the PRC discussion we had in Kohler.

The criteria for evaluating folks is at the end of the presentation ... but I
took the liberty to go a bit further and comprehensively address the PRC
process.    Hope I didn't overstep my bounds ....

I'm around today, as well as Monday (ENA meeting most of the day) and
Tuesday, but then traveling in Reno, Las Vegas and San Francisco for the
remainder of the week.   I'd welcome the opportunity to discuss the reasoning
and rationale behind the document.

As I said on my voice mail, I circulated the document to the attendees at
Kohler (with the exception of Sue L. and Linda R.).  I've had feedback from a
number of the attendees, but I can't call it a consensus document.

As always, thanks for the opportunity to make suggestions like this.


Remember the count down!

From: Roseann Engeldorf/ENRON@enronXgate on 03/28/2001 02:07 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject:

I really think I have died and gone to hell.

R.


Hi Guys,

In a conversation with GE today, they indicated that they thought it would be
appropriate to insert the performance values in the text of the document, and
do away with the exhibit.  Frankly, I like that approach also.  Could you
please make that revision and resend the document?

Thanks,

Kay


Howdy all!

Just a reminder that you are invited to the Associate/Analyst Happy Hour we will be hosting at the Heathman Hotel on Friday, November 9th (4:30pm-6:30pm). Please let me know whether or not you are planning to attend.

I look forward to hearing from you (and seeing you on Friday)! :o)

Enjoy the rest of your week!

-Grace
x8321

 -----Original Message-----
From: 	Kearney, Julie
Sent:	Friday, October 26, 2001 2:52 PM
To:	Mallory, Chris; Driscoll, Michael M.; Salisbury, Holden; Williams III, Bill; Oh, Jeffrey; Eriksson, Fredrik; Chen, Andy; Solberg, Geir; Cavanaugh, Darren; Oh, Jeffrey; Oh, John; Bishop, Serena; Rance, Susan; Coffing, Timothy; Warner, Nicholas; Elafandi, Mo; Mumm, Chris; Bruce, James; Calvert, Gray; Guillaume, David; Slinger, Ryan; Stokley, Chris; Frost, David; Nelson, Kourtney
Cc:	Rodriguez, Grace; Jarnagin, Josie
Subject:	Happy Hour!

The Fall Associate and Analyst Recruiting Super Saturdays are scheduled for Saturday, Nov 10 and Saturday, Nov 17.  The candidates arrive on Friday, are given a tour of the Floor and then presentations will be held thereafter.   The November 10 Event will be Analyst-level candidates.  The November 17 Event will be Associate-level candidates.

Now, here's the real info!    :  )

On both Fridays (Nov 9 & Nov 16) we will be sponsoring a get together (Happy Hour) at the Heathman for all the Associates & Analysts .  This means FREE drinks and food from 4:30 PM ---> 6:30 PM.  This will give you an opportunity to meet the candidates, check them out and if necessary "sell" them on Enron.

We will be sending out more reminders and confirmations, but block out your calendars for these two Fridays.  Let me know if you have any questions!

Julie K


I'm still waiting for Davis' office to call.  The plan currently is for me to
talk to him when and if he calls.  Sandi has been in touch with the
governor's office.

By the way, thanks for the summary of the California proceedings.  I talked
to Hebert yesterday and he was duly impressed with your remarks ... I had to
remind him that you worked on the right answers for California, not the
abomination that's in place today.

Jeff Dasovich@EES
09/13/2000 06:48 PM
To: Steven J Kean/NA/Enron@Enron
cc:

Subject: Skilling Get Davis Straightened Out?


Okay, I'm going to be gentle and send my complaints to you and let you ream
the hourly people.  Please check the following deals.  They are all booked as
Transalta Energy and should be Transalta Energy Marketing (US)

513061
513114
516116
518007
518184

Thanks


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What did you think of this guy?  I'm probably going to add some slots to our interview schedule and schedule some people for the slots.

Michele Nezi Marvin
Enron Principal Investments
713.853.6848

-----Original Message-----
From: Lebeau, Paul
Sent: Friday, October 19, 2001 5:09 PM
To: Marvin, Michele Nezi
Subject: FW: Enron Associate Program Application - Aditya (Edward) DIVGI
- Wharton MBA 2002
Importance: High

Michelle,

Here is the Candidate that Shankman talked to on Wednesday night.  Take a look and see what you think.

Thanks -=- Paul L.

-----Original Message-----
From: Divgi, Aditya [mailto:adityad@wharton.upenn.edu]
Sent: Friday, October 19, 2001 4:05 PM
To: Lebeau, Paul
Subject: Enron Associate Program Application - Aditya (Edward) DIVGI -
Wharton MBA 2002
Importance: High

Dear Mr LeBeau:
How's it going? Thank you for returning my call today. As you may remember, I met you, Mr Shankman, Ms Leibman, and Ms Li Sun at Cavanaughs with Matt Commons on Wednesday October 3rd.

During that meeting, Mr Shankman suggested that I visit Enron down in Houston in the next few weeks. As I have not been placed on the closed interview list at Wharton, I was wondering if I could conduct the interview process while in Houston? Please see my updated resume attached for your review.

Please let me know if this would be possible. I am still very interested in obtaining a full-time position in the Associate Program at Enron.

Kind regards,
Edward Divgi

Attachment: Resume

 <<Resume - Aditya (Edward) DIVGI - Wharton MBA 2002.doc>>


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>
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Is there a legal entity called 'Gas Pipeline Group' (or some variation), or
is this just an internal acronym that we commonly use to refer to NNG, et al.

Dale