Adding to Kristin's update, here's the summary of a meeting that just occured
with Assembly leadership staff and industry on the Assembly's latest version
of an "Edison MOU":

The Speaker's staffer said that if he had to bet at this time, he would bet
that the Assembly would not convene on Friday.
He also said that, if it doesn't happen on Friday, nothing will happen until
they get back from recess on the 20th of August.
The Assembly will let folks know by tonight or first thing tomorrow whether
they intend to move forward with a vote on Friday or recess.
From the most recent proposal released today by the Assembly leadership, it
appears that the centrist Democrats are prevailing.  The proposal:
Retains Direct Access (though they said that they are continuing to be
pressured by the Treasurer, who wants DA suspended due to the bond issuance)
Places 80% of Edison's past debt with large customers (leaving 20% with small
customers, which business customers or strenuously opposing).
Eliminates all references to any purchase, or option to purchase, Edison's
transmission. (They said there simply ain't the votes to buy, or consider
buying, Edison's transmission in the Assembly)
Maintains the Senate provision, which would pay the banks, pay the QFs, but
place with Edison the risk of figuring out how to pay the $1billion owed to
suppliers. (Even the munis are begining to complain about those provisions.)
Creates a tradeable, renewable portfolio standard (conceptually similar to
the one created in Texas).
The new bill is created by 1) amending SB78 and 2) gutting a different bill
passed from the Senate to the Assembly, SB39, and replacing it with the new
version of 82XX.  The two would go together to create the Assembly's newest
proposal.
If this bill gets voted out of the Assembly, it will likely have a difficult
time getting the votes necessary to pass in the Senate, since the Senate has
considered and rejected several provisions currently included in the Assembly
version.
Will report back on whether the Assembly's going forward or adjourning for
recess as soon as we hear.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 07/25/2001 06:26 PM -----

	Kristin Walsh/ENRON@enronXgate
	07/25/2001 04:30 PM

		 To: John J Lavorato/ENRON@enronXgate, Louise Kitchen/ENRON@enronXgate, David
W Delainey/HOU/EES@EES
		 cc: Christopher F Calger/ENRON@enronXgate, Christian Yoder/ENRON@enronXgate,
Steve C Hall/ENRON@enronXgate, Mike Swerzbin/ENRON@enronXgate, Phillip K
Allen/ENRON@enronXgate, Jeff Dasovich/NA/Enron@Enron, Chris
Gaskill/ENRON@enronXgate, Mike Grigsby/ENRON@enronXgate, Tim
Heizenrader/ENRON@enronXgate, Vince J Kaminski/ENRON@enronXgate, Steven J
Kean/ENRON@enronXgate, Rob Milnthorp/ENRON@enronXgate, Kevin M
Presto/ENRON@enronXgate, Claudio Ribeiro/ENRON@enronXgate, Richard
Shapiro/ENRON@enronXgate, James D Steffes/ENRON@enronXgate, Mark
Tawney/ENRON@enronXgate, Scott Tholan/ENRON@enronXgate, Britt
Whitman/ENRON@enronXgate, Lloyd Will/ENRON@enronXgate, Alan
Comnes/ENRON@enronXgate, Rogers Herndon/ENRON@enronXgate, James W
Lewis/HOU/EES@EES, Don Black/HOU/EES@EES, Kelly Holman/ENRON@enronXgate, Mark
Dana Davis/HOU/ECT@ECT, Fletcher J Sturm/ENRON@enronXgate, Doug
Gilbert-Smith/ENRON@enronXgate, Richard B Sanders/Enron@enronXgate, Andrew
Edison/ENRON@enronXgate, Kelly Holman/ENRON@enronXgate, Nancy
Turner/ENRON@enronXgate, Tim Belden/ENRON@enronXgate, John
Brindle/ENRON@enronXgate, David Cromley/ENRON@enronXgate
		 Subject: California Update 7/25/01 p.3

Details are still rough and the situation is very fluid, but here is what is
currently going on:

Senators Hertzberg and Keeley are amending both SB 78XX and AB 82XX.  Upon an
initial read, it appears that they are doing the following:
? AB 82XX has been gutted except for the direct access provisions and the
renewables portfolio.  (The core/non-core business provisions, the
transmission asset purchase, etc. all appear to have been deleted.)  Both of
these provisions that have been left in the bill were seen as positive by
members last week when the bill was first debated.
? It appears amendments have been made to SB 78XX but the extent of these
changes are not yet known.
? At the beginning of both amended bills, it states, "As proposed to be
amended into SB_XX."   This means that amendments to SB 78 could be
incorporated into AB 82, and vice versa.  Another possibility is an entirely
new bill.


Amy Oberg's brown bag, Coming Full Circle: A Plausible Future for Power
Generation has been cancelled.
We apologize for any inconvenience this may cause.  Please keep watching for
future brown bags.


ST CA buys 50 MW from ST W. BOM, deal number 789548 $23.67

Kysa M. Alport
Enron North America
(O) 503-464-7486
(C) 503-706-5308


We have a new version of the PX trade app installed to accomodate the new SC
Trading capability.      Make sure that you input the new nodes and sockets
as reflected in the new login info sheet by the machine.

Thanks,

JMF


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 10/18/2000
12:55 PM ---------------------------

Alex Huang@ENRON
10/17/2000 04:00 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: parameter estimation

Vince,
I have put together a parameter estimation model, which is continuation of
Tanya's model.
The estimation process is more consistent now. Attached are the model and a
brief
write-up of the methods. If you see any problem/ways to improve it, please
let me know.

Best,
Alex


As anticipated when the constraints of having  the "luck of the draw" taken out of the equation, I have moved into a first  place draw with Headley Jones in our newly formatted hockey pool. I never  once drew first pick in all previous Uncle Buzzy pools (remember him?) , so  this feels particularly sweet. With one game left, all I need is one point  from either Jason Arnott or Beretta Blake to stand alone. My only worry is a  Brodeur shut-out.

I offered Don Headley a split earlier when I was 7  points back, but he chose to poke fun instead. Charles, whose not even in the  pool, cried collusion, to which I explained to him that for this to be the case,  1. Discussions would have had to be held "in camera"  and 2. Others would have to be negatively impacted.  Neither of these criteria were met. I was simply being a good  capitalist.

Regardless, our American friends have yet to pony  in, nor has Galea ll, and I want my clams immediately! McConvey ( in  perhaps the orangiest, sweetest moment of all), please send the $20 owing  to my employer's address below, I do not want you having  access to my home address.

On as totally separate note, I'm beginning to now  look past when my son Yanic arrives and hold true in my very public decree that  having a child will not totally change my life. As such, we should open up  discussions on a second annual road trip, perhaps in late September? I know  Glove is very interested this year, and I'm sure Lav could be pried away from  cooking his companies books for a long week-end. We could always do Tremblant  again, but I'm in Mack's corner (for the first time ever!) in stating that I  could care less if we golf!!! Perhaps we could do Vegas, visit Lav or Glove (  which their respective wives would love) or simply go to my cottage. It doesn't  really matter, as long as we're together for a few laughs!!!!!! Air Canada is  offering $235 flights to Norfolk and Charleston, but that would obviously mean  golf, which increasingly irritates me with all its gimmicky  bullshit!!

So the floor is open for discussion, and knowing us  , I hope you all have enough space in your hard drive for the written  diarrhea that you're about to be assaulted with over the next month, until we  can all agree on something! Are you ready Charles? (" If he's in, I'm OUT!)".  Hey McConvey, are you going live a little outside that Weston comfort zone of  yours and spend a few shillings elsewhere?

Let the witchypooing begin. I'll explain that to  you later Lav.

Joseph Galea
McGown Intermac Inc.
160 Bloor  Street East
Suite # 1124
Toronto, Ontario  M4W 1B9
Ph. #  416-966-1622
Fax. # 416-966-1434


The settlement price for the last scheduled Commodity Business Day of the
NYMEX Henry Hub Natural Gas Futures Contract for the applicable Calculation
Period


Mark:

Because you are a registered CLEonline.com user, we would like to provide
you with the following update about our online CLE seminars for
June, as well as other notes of interest:

*  June Seminar Listing

*  New this month:  --> NBI presents "How to Litigate Your First Civil
Trial in Texas" (Parts 1 and 2)  [3.0 each]

--> NBI presents "Premises Liability: Preparation
and Trial of a Difficult Case in Texas
(Parts 1 and 2)  [2.0 each]

--> Government Lawyer Ethics: Conflicts,
Confidentiality, and... Common Sense?
[3.0 ETHICS]

--> Wills, Estates, and Trusts: Case Law
Developments in Texas - 2001  [1.0]

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

The following is a complete listing of all of our online CLE seminars
that will be taking place on our Web site (www.CLEonline.com) during the
month of June.  We would ask that you please share this list with
your colleagues and associates who may be interested in one or more of
our online CLE seminars for this month.

1.  Additional Ethical Issues Facing In-House Counsel [3.0 ETHICS]
2.  Anticipating Will Contests and How to Avoid Them  [3.0]
3.  Appearing Before the Texas Board of Pardons and Paroles - or - 'How
to Deal with a Three-Headed Monster' - together with HBA (Video
Included)  [1.5]
4.  Avoiding Malpractice Claims: Things to Do (and NOT Do) on the First
Day You Represent a Client [1.0 ETHICS]
5.  Confidentiality and Privileges in Electronic Communications [3.0
ETHICS (Audio included)]
6.  Consumer Bankruptcy Law: Nuts & Bolts for the Non-Specialist [1.0]
7.  Corporate Counsel Wrongful Discharge Claims: Ethics, Policy and
Practice [1.0 ETHICS]
8.  Damages in Texas Insurance Litigation: Evaluating, Pleading, and
Proving  [1.0]
9.  Disqualification and Conflicts of Interest in IP Practice - with CCE
(Audio included) [2.0 ETHICS]
10. Dissecting the Web / E-Commerce Environment and Analyzing the Legal
Issues  [1.0]
11. Effective Negotiation and Mediation Advocacy  [3.0]
12. Elimination of Bias in the Legal Profession [1.0 ETHICS]
13. Engagement Letters for Texas Litigators: Forms, Issues, and Analysis
[2.5 ETHICS]
14. Estate Planning Clients With Special Circumstances -- Those with
Minor Children and Those with Communication Challenges  [1.0]
15. Estate Planning Practicum -- Suggestions for Interviewing Clients and
Helping Them Select Fiduciaries  [1.0]
16. Estate Planning for Clients With Special Circumstances -- Lottery
Players/Winners and Pet Owners  [1.0]
17. Ethical Considerations in Estate Planning for Spouses [1.0 ETHICS]
18. Ethical Considerations in Mass Tort and Class Action Litigation in
Texas [1.0 ETHICS]
19. Ethical Issues Arising From Using Experts in Litigation [1.0 ETHICS]
20. Ethical Issues and the Associate -- Or -- And You Thought Law School
was Bad! [2.0 ETHICS]
21. Ethical Pot-Holes on the Information Highway and How to Avoid Them
[1.0 ETHICS]
22. Ethical Risks and Responsibilities of Attorneys and Firms Prosecuting
Patents for Different Clients in Related Technologies [1.0 ETHICS]
23. Family Law Update: What You Don't Know CAN Hurt You
[Video included] [1.0]
24. Government Lawyer Ethics: Conflicts, Confidentiality, and... Common
Sense? [3.0 ETHICS]
25. How to Collect Child Support in Texas  [3.0]
26. ICANN / WIPO Domain Name Disputes: Procedures And Analysis   [1.0]
27. IP Litigation Issues: Trade Secrets, Patents, Copyrights and
Trademarks  [3.0]
28. Identity Theft -- Strategies for the Information Age - together with
HBA (Video Included)  [1.5]
29. Improve Your Legal Writing: Ten Plain-Language Tips  [1.0]
30. Internet Legal Issues - together with CCE [Video]   [1.5]
31. Law Practice Management: How to Enhance Your Clients' Interests when
Dealing with the Media [Audio]  [1.0]
32. Legal Ethics for Corporate and In-house Counsel [3.0 ETHICS (Audio
included)]
33. Legal Writing: Meet the New Citation Manual  [1.0]
34. Legal Writing: Ten Tips for Better Letters  [1.0]
35. Legal Writing: Eight Tips for Successful Motions  [1.0]
36. Legal Writing: Eleven Tips for Formal Agreements  [1.0]
37. Litigating the Link Between Cellular Phones and Cancer  [2.0]
38. Living Trusts . Making a Wise Decision [1.0]
39. Malpractice Avoidance for Probate Lawyers: Common Non-Tax Estate
Planning Errors [1.0 ETHICS]
40. More Selected Ethical Issues Facing Texas Litigators [1.0 ETHICS]
41. NBI Presents "Practical Legal Ethics in Florida: Issues and Answers"
[3.5 ETHICS, Audio included]
42. NBI Presents "Superior Deposition Strategies in Florida Civil Trial
Practice" [Audio included]  [7.0/1.0]
43. NBI presents "How to Litigate Your First Civil Trial in Texas - Part
1 (Plaintiff's Perspective)"  [3.0/0.25]
44. NBI presents "How to Litigate Your First Civil Trial in Texas - Part
2 (Defendant's Perspective)" [3.0/0.25]
45. NBI presents "Premises Liability: Preparation and Trial of a
Difficult Case in Texas - Part 1"  [2.0/0.0]
46. NBI presents "Premises Liability: Preparation and Trial of a
Difficult Case in Texas - Part 2"  [2.0/0.50]
47. New Twists on the Traditional Intellectual Property Enforcement
Paradigm - with CCE (Audio included)  [1.0]
48. Nobody's Bulletproof: Legal Ethics and Legal Malpractice Issues [3.0
ETHICS (Audio included)]
49. Offshore Trusts: Uses for Asset Protection Purposes  [3.0]
50. Operator & Royalty Issues in a New Century - Part 1 -- with Live Oak
CLE (Audio included)  [3.0]
51. Operator & Royalty Issues in a New Century - Part 2 -- with Live Oak
CLE (Audio included) [3.0/0.75 ETHICS]
52. Presuit Discovery and Discovery from Nonparties in Texas Litigation
[1.0]
53. Privacy Issues in the Workplace: Internet Porn, E-mail, Chat Rooms
and more  [2.0]
54. Professionalism in Corporate Litigation: From Discovery Through
Appeal [3.0 ETHICS]
55. Punitive Damages: Preparing Plaintiff's and Defendant's Case for the
Punitive Damage Phase  [3.0]
56. Selected Ethical Issues in Intellectual Property Licensing [1.0
ETHICS]
57. Selected Issues in Ethics for California Lawyers [2.0 ETHICS]
58. Selected Issues in Ethics for Texas Lawyers [3.0 ETHICS]
59. Substance Abuse and Depression: An Overview for Lawyers [1.0 ETHICS]
60. Summary of Texas Legal Malpractice Law [1.0 ETHICS (Video included)]
61. Texas Law of Eminent Domain  [3.0]
62. Texas Legal Ethics and Malpractice - together with HBA (Video
Included) [3.0 ETHICS]
63. Texas Real Estate Law - Recent Case Update  [3.0]
64. The "Write" Stuff: Grammar, Proofreading & Spelling (For Legal
Assistants and Legal Secretaries Only)
65. The ABC's of Appellate Practice for California Litigators  [1.0]
66. The Complete Internet Seminar for Lawyers  [3.0]
67. The Mobile Lawyer: A Roadmap for Beginners - with CCE (Audio
included)  [1.0]
68. The New World of Electronic Commerce: Business to Business (B2B)
[Audio included]   [1.0]
69. The Organizational Client: Attorney-Client Privilege and the
No-Contact Rule [3.0 ETHICS]
70. The Rewards of Decency [2.0 ETHICS (Audio Included)]
71. The Uniform Computer Information Transactions Act: (UCITA): An
Introduction and Exploration of its Impact on Contracting Practices
- with CCE (Audio included)  [1.5]
72. Wills, Estates, and Trusts: Case Law Developments in Texas - 2000
[2.0]
73. Wills, Estates, and Trusts: Case Law Developments in Texas - 2001
[1.0]

For more details on any of these seminars, please drop by our site:

http://www.CLEonline.com

You can easily register online for any of these seminars at any time of
day or night using our secure online registration system.  All of these
seminars are available through the last day of this month.

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

NEW SEMINARS FOR THIS MONTH...

The following are brief descriptions of our new seminars for this month.
Full details on each are available on our Web site:

--> NBI presents "How to Litigate Your First Civil Trial in Texas"
(Parts 1 and 2)  [3.0 each]

This is another in our series of NBI seminars being offered on our site,
and this one is a very practical seminar for Texas attorneys.  This
seminar will provide information on planning and preparing for trial by
selecting a case theme and creating a written action plan. The seminar is
provided in two parts-- Part 1 will focus on the plaintiff's perspective
and Part 2 will focus on that of representing the defendant.  Each part
is accredited for 3.0 hours of CLE, including .25 hour in ethics.

--> NBI presents "Premises Liability: Preparation and Trial of a
Difficult Case in Texas   (Parts 1 and 2)  [2.0 each]

Also from NBI this month, we are pleased to present this timely seminar
on premises liability law for Texas lawyers.  In this seminar, you'll
receive an overview of premises liability law from both the plaintiff and
defense perspectives and come away with a better understanding of using
standards and codes. The seminar is provided in two parts, with each part
accredited for 2.0 hours of CLE (Part 2 includes .50 hour in ethics.)

--> Government Lawyer Ethics: Conflicts, Confidentiality, and... Common
Sense? [3.0 ETHICS]

David Hricik of Austin has produced another new legal ethics seminar that
is specifically designed for government attorneys.  This seminar will
explore a variety of ethical and conflicts issues that would affect
lawyers employed by governmental entities.  This seminar is accredited
for 3.0 hours of CLE credit, all in the area of legal ethics.

--> Wills, Estates, and Trusts: Case Law Developments in Texas - 2001
[1.0]

Another of our popular faculty contributors, Prof. Gerry Beyer, has
developed this new online seminar to keep Texas estate planning attorneys
up to date on the latest case law developments.  This seminar is designed
to discuss the judicial developments during the year 2001 that relate to
the Texas law of intestacy, wills, estate administration, trusts, and
other estate planning issues.  This seminar is accredited for 1.0 hour of
CLE credit (no ethics.)

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

Thanks again for your continued interest in and support of CLEonline.com.
We greatly value you as a registered user of our service, and we would
very much appreciate it if you could please spread the word about our
award-winning CLE site to other attorneys in your firm, company or local
area.

Best Regards,

Mike De La Rosa, Esq.

_______

Michael De La Rosa, CEO          ------------------------------------
Voice: (512) 310-9618
FAX:   (512) 310-1720                     CLEonline.com
P.O. Box 1897
Round Rock, TX 78680-1897       ...delivering CLE to YOUR desktop!
mdelarosa@CLEonline.com
http://www.CLEonline.com         ------------------------------------


InternetStudios Entertainment Finance Closes Film Financings

LOS ANGELES, Dec 13, 2000 -- InternetStudios.com, Inc. (OTCBB:ISTS), the
global filmed entertainment company that operates online, via its two main
sites OnlineFilmandTVSales.com and reportertv.com, is delighted to announce
that its newly created InternetStudios Entertainment Finance ("IEF")
subsidiary, headed up by film financing specialist, Robert Beattie, has
already completed its first two transactions.

InternetStudios launched IEF in September to provide interim financing for
the production of films. IEF has already expanded by completing two deals to
finance and produce a series of motion pictures through the official
Czech-Canada production treaty. The pictures will be shot in Prague.

The inaugural film, Ariana's Quest, from North American Pictures and
Forgotten Kingdom Productions, stars female WWF Champion Rena Mero,
(formerly known as "Sable"), and has recently gone into postproduction. As
part of the arrangements between IEF and the producers, this film will be
promoted and sold exclusively over the internet via
OnlineFilmandTVSales.com. The InternetStudios group of companies has also
retained the Internet rights to the picture for possible webcasts in the
future.

IEF has also signed a further agreement with North American Pictures and
North American Releasing to produce and finance several further independent
pictures, beginning with the action, adventure picture Omega Force, which
commences shooting in Prague during January 2001.

Rob Maclean, Chairman, InternetStudios comments:

"These transactions represent the beginning of the tremendous opportunities
that we have identified for IEF. We will continue to build our company based
on our focus of working with our clients to take advantage of a variety of
funding sources, including international tax motivated sources, foreign
subsidies and co-production treaties to ensure we fully maximize the
available financing for the producer and launch these productions in the
most financially efficient manner.

"Not only does IEF represent a further source of revenue to our company, it
also provides our clients with another source of product unique to
InternetStudios. These deals and the partnerships that Robert Beattie is
creating for this company through his vast banking experience and
international focus will contribute to the growth of InternetStudios and
benefit the international independent film industry."

IEF works with producers and sales agents and makes available both
conventional and gap financing. The Company has relationships with a number
of private funding sources and significant institutional investors who
provide the necessary capital.

About InternetStudios

InternetStudios.com is positioned as the premier full-service website for
licensing film and television distribution rights and tracking and
distribution of entertainment industry data via the Internet. The company
operates three subsidiaries: OnlineFilmandTVSales.com, the digital
marketplace for sales of film and television rights; reporterTV, which
delivers daily online entertainment industry newscasts; and InternetStudios
Entertainment Finance. Together these leading-edge web offerings provide a
comprehensive solution for entertainment industry professionals.

For more information contact InternetStudios.com, Inc. at 310-394-4025.
Investors call toll free 888-784-6166 or email ir@internetstudios.com

Certain statements contained herein are "forward-looking" statements (as
such term is defined in the Private Securities Reform Act of 1995). Because
such statements include risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking
statements.

For Further Information

Jesse Menzies
Investor Relations
(888) 784-6166
mailto:Jesse.Menzies@pacificcmi.com

Stock Symbol (OTC BB: ISTS)

If you would like to be removed from this email list please send a reply
with "Remove" in the subject box and we will be happy to remove your contact
details from our mailing list.


Revenue Generating:
Executed firm transport contract with Oneok at max tariff rate for California
deliveries; generating $2.7 million in revenue.  Included was a sharing
mechanism providing an opportunity to generate market based transport.
Completed new facility interconnect with EOG for additional 35,000/day of
supply on east end of system.
Executed pooling agreement with Cima Energy to become a new customer on
Transwestern, providing 5-10,000/day of incremental supply on TW's system.

Non-Revenue:
Settled dispute with Burlington that could have cost $3 million dollars;
negotiated potential damages down to $100,000 and eliminating future
potential dollar exposure.
Worked with Accounts Receivable to identify outstanding facility invoices.
Located over $600,000 on Northern.
Worked as liaison with programmers to enhance Deal Profitability system.
System now is also linked with the Risk Management System with weekly basis
quote feed to ensure more real time data.


You can rest assured that I will definitely have you in my prayers.  How is everything going this morning?  What is your state of mind?  Are you feeling strong this morning or a little apprehensive?  If you are feeling apprehensive, please try and write down your questions and concerns that you have, so that you don't waste your visit by being overcome by emotions.  Call me when you get back from your visit.  I will probably be leaving here around 2:00 or so.  Call me on my cell.

Love ya!

 -----Original Message-----
From: 	"Valada Brawner" <VBrawne@nicor.com>@ENRON
Sent:	Thursday, January 17, 2002 10:36 AM
To:	Mims, Patrice L.
Subject:	Prayer

I will be leaving here at noon today.  Keep me in your prayers.


We will not be selling energy OOM until further notice.    We have no solid
information concerning refunds,  so even if we sold for a loss to the ISO,
in an attempt to help,   we could be subject to refunds.
That's exposure with no upside.

Dont do it.    We could send supplemental bids,   but we would only receive
$250, which is below the bilateral market.
Any bids submitted in excess of $250 must be supported and reported to the
ISO, FERC, and the Cal Energy Oversight Board.
While we feel that we can support our prices,   we do not want to open up the
possibility of refunds.

We would like to help,  but it cannot happen in this environment.

JMF


We have resolved the authority issue with referenced counterparty, and have
approved all financial trading, including online financial trading, under the
executed ISDA Master Agreement between ECT and this counterparty dated June
23, 1999.


After a little more digging, I've found that the deal NYMEX was referring to
is the same one we dealt with a month ago. I spoke with Tracy Green, one of
our contacts at Avista, and she had been dealing with the same issue all day.
Apparently, when Avista first incorrectly reported that we hadn't made a
payment, it set off a domino effect of doubts that seems to still be falling.
So NYMEX called EDF Mann, our futures clearing broker, today to assure that
payment would be made today.

Tracy had been speaking with her broker at ABN-AMRO; I had been speaking with
ours at Mann; and NYMEX had been communicating through both of these entities
to us. I've left a message with John Croddock at NYMEX to discuss this
directly with him. His number, if you'd like it for your own purposes, is
(212) 299-2146.

Other contacts are Tracy Green, Avista, at (509) 495-8535, and Gary (?), ABN,
at (212) 859-1212.

As far as Avista, ABN, ED&F Mann, and EPMI are considered, the March Palo
Verde futures contract has been paid, and paid on time. I'd like to speak
with John at NYMEX to tie up any possible loose ends on this. Please let me
know if you have any questions or suggestions.

Thanks for your help,
Kate


What's the correct delivery point on this deal - sell PGE, mar-01 through
dec-01, on peak, 50 mw, DJ Mid-C index (trade date 2/12)?

Kate
---------------------- Forwarded by Kate Symes/PDX/ECT on 03/06/2001 11:39 AM
---------------------------

From: Kimberly Allen on 03/06/2001 01:19 PM CST
To: Kate Symes/PDX/ECT@ECT
cc:
Subject: #519874.01

Kate, This trade was changed on Feb. 20 from COB to Portland General as the
delivery point. Could you check with Diana about this trade. Portland General
is saying it is COB.

KI

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


Tony,  Aug 26th


-----Original Message-----
From: 	Fuller, Dave
Sent:	Monday, September 24, 2001 10:14 AM
To:	Whitt, Mark
Subject:	RE: Clatsaknie Proposal

 -----Original Message-----
From: 	Whitt, Mark
Sent:	Monday, September 24, 2001 11:12 AM
To:	Fuller, Dave
Subject:	RE: Clatsaknie Proposal

There was not an attachment on mine.

 -----Original Message-----
From: 	Fuller, Dave
Sent:	Monday, September 24, 2001 10:09 AM
To:	Whitt, Mark
Subject:	Clatsaknie Proposal

Mark,

Here's my proposal to Clatskanie, due tomorrow.

Dave


----- Forwarded by Richard B Sanders/HOU/ECT on 05/23/2000 11:31 AM -----

	"Radack, Judge Sherry (DCA)" <Radack@DCA.CO.HARRIS.TX.US>
	05/23/2000 10:59 AM

		 To: "'Richard.B.Sanders@enron.com'" <Richard.B.Sanders@enron.com>
		 cc:
		 Subject: FW: Divorce Lawyer

Please  destroy.? This is extremely confidential.
-----Original Message-----
From: Guzman, Judge Eva (DCA)
Sent: Tuesday, May 23, 2000 9:17 AM
To: Radack, Judge  Sherry (DCA)
Subject: RE: Divorce Lawyer

Hi, these are  some suggestions, if you have any questions, please call me.?
Please don't  pass along my comments.? Thanks.????
?
Patsy Wicoff? - property * - expensive
?
Bucky  Allshouse* -? both? - expensive
?
Ellen  Grimes?- property *?
?
Wally Mahoney  ** Custody very good - not as expensive
?
Dennis Kelly *  - custody very good also property -
?
Joan Jenkins**  - excellent on both ** expensive
?
Is this custody  or property or both.......
?
?
-----Original Message-----
From: Radack, Judge Sherry (DCA)
Sent: Monday, May 22, 2000 7:38 AM
To: Guzman, Judge Eva  (DCA)
Subject: Divorce Lawyer

I need a referal to  oppose Susan Myers.? Evidently she is very aggressive
and in this case,  it is empowering the husband, the opponent.? Any ideas.?
She has  limited resources but can pay.?


Hi again.

I understand from Randy (Jason) that the CAD $5MM is scheduled to come
tomorrow, not today as previously informed.

Enron Canada Corp has been halted from BUYing and will remain halted until
such time NGX has received additional Collateral (at least another CAD$8.5MM
plus more if Enron Canada Corp wishes to continue to purchase).

Thanks.
Kenny

 -----Original Message-----
From: 	Kenny Foo [mailto:Kenny.Foo@ngx.com]
Sent:	Monday, November 26, 2001 3:00 PM
To:	'Jason Williams (E-mail)'; 'Randy Otto (E-mail)'; 'Mike Cowan (E-mail)'
Cc:	'Louise Kitchen (E-mail)'; Gary Gault; Ron Manitowich
Subject:	RE: Enron position.
Importance:	High

Hello all.

We just received notification that our Bank has received the CAD$3MM out of
CAD$8MM originally expected.

Thanks
Kenny

 -----Original Message-----
From: 	Kenny Foo [mailto:Kenny.Foo@ngx.com]
Sent:	Monday, November 26, 2001 1:44 PM
To:	'Jason Williams (E-mail)'; 'Randy Otto (E-mail)'; 'Mike Cowan (E-mail)'
Cc:	'Louise Kitchen (E-mail)'; Gary Gault; Ron Manitowich
Subject:	Enron position.
Importance:	High

It has been our understanding (credit area, both companies) that Enron must
prepay for all its purchases including all forward positions ever since
Enron was downgraded to BBB minus.  Unfortunately for Enron Canada Corp., I
cannot convince my Board nor my Bank to do otherwise.

Enron will still get interest from pre-payments that have not been used to
pay for gas that has already been delivered and invoiced.

With the above in mind, here is the current status:
					CAD$
$ carried forward from yesterday 	   2,725,000
Today's purchases			(14,225,000)	large part of which is Dec gas
Today's wire				   8,000,000 	which incidentally has not arrived as yet
Balance	(short)			  (3,500,000)

Jason, kindly
*	please followup with your Treasury area to see where CAD$8mm is?
*	please, for today's value date, arrange to send another CAD$3.5mm plus
whatever $$ your traders need for tomorrow?
*	your Calgary traders have another 30TJs of room for day gas at time of
writing this email (purchases so far today 3,660TJs).  Once the 30TJs is
filled, you will be halted.

We thank you for your co-operation.

Kenny Foo
Credit and Risk Manager
NGX Financial Inc
140 - 4 Avenue SW, Suite 2330
Calgary,  Alberta, T2P 3N3
Ph: (403)974-1737
Fx: (403)974-1719


----------
From:  brad.j.watson@mail.sprint.com <mailto:brad.j.watson@mail.sprint.com>
[SMTP:brad.j.watson@mail.sprint.com]
<mailto:[SMTP:brad.j.watson@mail.sprint.com]>
Sent:  Monday, October 29,2001 10:57 AM
To:  brian.ringer@wcg.com; <mailto:brian.ringer@wcg.com;>
restephenson@yahoo.com; <mailto:restephenson@yahoo.com;>
rob.grindstaff@bellhowell.infolearning.com
<mailto:rob.grindstaff@bellhowell.infolearning.com>
Subject:  FW: OU-NU Locker Room Report: All is not lost

Brad Watson
Branch Manager - Oklahoma & Western Arkansas
Sprint - Global Markets Group
(405) 815-8080
(405) 815-8010 -- fax

-----Original Message-----
From:	Sigler, Michael J.
Sent:	Monday, October 29, 2001 9:52 AM
To:	'sigfu22@yahoo.com'; 'raalber@ppco.com'; 'dejohns@ppco.com';
	Watson, Brad J.
Subject:	FW: OU-NU Locker Room Report: All is not lost

(AP Photo/Dave Weaver)
	OU-NU Locker Room Report: All is not lost
By James Hale

Date:	Oct 29, 2001

The streak is over, but the season isn't. James Hale talks with the
Oklahoma coaches a day after their 20-10 to Nebraska
Make no bones about it, Oklahoma is not down and out over their loss to
Nebraska. Sure they disappointed, but Oklahoma is still Oklahoma and they
know that it took everything that Nebraska had to beat them on their home
field.
The Sooner coaches feel very good about how they played in the game.  They
knew going in that it was going to be incredibly tough to win the game in
Lincoln, but without question felt they could have done so. In fact, now
knowing what they know they felt they should have won the game.
The game was a tight fit, so it turned on a couple of plays. OU was very
confident and very much alive with 8:54 to play in the fourth quarter.  In
fact, OU Head Coach Bob Stoops was so confident in his defense that he
decided to pooch kick a punt from Tim Duncan down inside the five instead of
going for a 53-yard field goal. Now, hindsight is twenty-twenty, but Stoops
said he would do it again.
"Considering how we were playing defensively, I would probably pooch it
again," Stoops said Sunday afternoon following the game. "Now that I know
what happened, I keep wrestling with that decision, but I like our defense
so much that I am sure that nine times out of ten I would pooch it down
there and tell our defense to go get the ball. I have a lot of confidence in
Tim (Duncan) and know that he can make a 53-yarder, but if he doesn't' we
lose field position and I just thought it was better we tried to pin them
down. Hey, give them credit, (Eric) Crouch makes a big play on the option
and then they beat us on the trick play. Things like that happen in a good
football game."
Eric Crouch's 19-yard gain was a game-saver for the Huskers. Crouch was
totally held in check, before he finally breaks one off the right tackle to
get the Huskers off their goal line. However, at that point the Sooners were
still in good shape, before game-saver number two occurred.
"We have them stuffed right there at the Nebraska 32, but we get called for
the inadvertent facemask," said co-defensive coordinator Brent Venables.
"That is just a bad break on our part. We stuff the play, just like we had
stuffed him the whole game, but we get a penalty and they keep the drive
alive. We played great defense on that series. Think about it, we let them
off the goal line, but we hold our poise and stuff them the next three
downs. Bingo, we should be getting the football back with a little over five
minutes remaining in fairly good field position.  As it is, we get the
penalty and then get burned on the trick play.  That's football. But because
of the way it happened, we are not discouraged how we played at all."
For 97 percent of the game, Oklahoma's defense was outstanding. Roy Williams
and Rocky Calmus were flying around the ball and Brandon Everage was doing a
great job in run and pass coverage. It took two Cornhuskers on most plays to
block freshman sensation Tommie Harris and in the fourth quarter, Harris was
stronger than any Husker offensive lineman.
Where the Sooners lost this game was in their lack of playmaking offensive
on offense and special teams. I can't believe I am saying the Sooners lost
this game on special teams, but on this rare occasion Nebraska had the
better special team play.
"They made more plays than us in the end than we did and that made the
difference," said Stoops. "We had our opportunities that we didn't come
through and convert on. The reverse pass is wide open and we have a chance
to go ahead 14-10, but again we throw a bad ball and don't convert. Then, we
had some drops in the second half and missed some opportunities for some big
plays on fade routes. We have come up with those kinds of receptions before,
however we weren't able to do it against Nebraska. I felt in the kicking
game that their punting game got the better of ours. When both teams punt 10
times there is a lot of exchanging there and I felt they had better field
position in the end.  That, coupled with two turnovers hurt us, because in
tight games that makes a difference. Again, they made more plays than us and
won the game."
The lack of production out of the wide receivers continues to be the big
story offensively. Granted, the quarterbacking has been up and down, but if
the Sooner wide receivers played like they did a year ago, then the
quarterbacks would look a lot better.
First, let me point out that nothing has changed at the Sooner practices.
The wide receivers catch the same amount of footballs that they caught last
year. Wide receiver coach Steve Spurrier Jr. is doing the same outstanding
job he did a year ago, and it is basically the same guys.
However, you have to factor in they lost of Andre Woolfolk and the fact that
Mark Clayton is the only wide receiver that is stepping up on a consistent
basis. Woolfolk did not play one snap on offense, but did an outstanding job
on defense. Clayton, once again played well coming up with 62 yards on six
catches. Norman also had a solid game with four catches for 48 yards.
However, where is Curtis Fagan and Antwone Savage?  Savage had two catches
for 35 yards, but both juniors are not getting open enough or making big
plays.
"We had some opportunities slip through our hands, literally slip through
our hands," said Offensive Coordinator Mark Mangino. "It's obvious on the
plays that we are talking about that we had our hands on the ball and just
didn't haul them in. We are not asking our wide receivers to make any plays
they didn't' make last year, but right now we are not getting the same
production. However, let me point out that they are not totally problem. Our
quarterbacks are not always finding the right receiver in their progressions
and many times the quarterback is having a defender right in his face,
because our o-line didn't do a good enough job. It takes 11 guys to make an
offense work and 11 to break it down."
At right tackle, the Sooners alternated Jerod Fields and Jammal Brown, and
both gave a solid account of themselves.
"They played right tackle by committee and I think we will keep it that
way," said Mangino. "Both played well enough to give us a chance to have
success and that is about all we can hope for right now. Right now, both
can't play an entire game by themselves, so we are going to play both of
them and both have potential to be very good offensive linemen."
Bob Stoops says that starting quarterback Jason White has a sprained knee
and that he will miss the Tulsa game, but he has a chance to be back for
Texas A&M. White was getting X-rayed Sunday and reports indicate that the
knee injury is a torn ACL and that White will attempt to play on it if he
can stand the pain. This situation is very similar to OU defensive back
Terrance Simms' knee injury that occurred early in the season. Simms
attempted to comeback after sitting out one game and and re-injured the knee
in the fourth quarter of his first game back, which has forced him to sit
out the rest of the season. What you hope is that there is nothing more to
White's knee injury and he can come back in two weeks.
It's another opportunity for Nate Hybl to get something going at
quarterback. The coaches seemed pleased with Hybl's performance against
Nebraska and he did look good in the first half. In the second half, he
struggled against the Nebraska pressure and his wide receivers didn't catch
the ball on some nicely thrown fades.
There is no question that the team has total confidence in White and they
would like to feel the same way about Hybl. For that to happen, Hybl needs
to deliver some big throws.
Most of the national media at the game believes that OU and Nebraska are two
of the top four programs in the country. All believe that Florida and Miami
belong with the Big 12's top two big two. All believe that OU and Nebraska
will battle again in the Big 12 Championship game, and if the Sooners win
they will still have a great shot to play for the national championship.
The projected BCS poll tomorrow is Nebraska, Miami, OU and Florida with
Texas fifth.
One final point. Bob Stoops and his football team handled the loss with
great class. Stoops was great at the post-game press conference and won over
many national friends. He was intelligent, funny and right to the point with
his answers.
Mike Stoops, Brent Venables and Mark Mangino were the same. All were dressed
very well, handled themselves very well and were total class.  The Sooner
players answered every question, and despite the fact they were hurting
inside, really won over the national media.
This OU program is all about doing things the right away and that was
never more evident than in their first loss in 20 games


Derek:

I'm on the phone.  Is this agreement for Enron Credit Inc. or Enron Credit
Limited?  I only represent the former.  Dennis represents the latter.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 05/30/2001 10:15 AM -----

	Derek Lee@ENRON
	05/30/2001 02:08 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Simon Brooks/LON/ECT@ECT
		 Subject: Goldman Sach $ repo docs

Sara,
I left u a voice mail and email 2 weeks ago regarding the status of the
Goldman docs.
I haven't seen a reply from you but as I remember from speaking to you last
time, the ball is esssentially in our court.
Can u tell me what is up?   In the meantime I can't do any US$ credit biz
with GS and it is a MAJOR problem.

regards,
Derek


Enron, a Giant Bargain
The New York Times, 11/11/01
Dow Breaks Through Pre-Attack Level
The New York Times, 11/11/01
Dealings of Enron emerging
Houston Chronicle, 11/11/01
Demise of Enron a blow to city / As local business pillars crumble, Dynegy a bright spot
Houston Chronicle, 11/11/01
FLYING BLIND / By keeping investors in the dark, Enron lost its way
Houston Chronicle, 11/11/01
Deregulation Not Derailed by California's Meltdown Power: Though many energy firms were scarred in the state's free-market stumble, analysts say they are likely to rebound.
Los Angeles Times, 11/11/01
The Thing Is: Enron
The Independent - London, 11/11/01
USA: Wall Street takes aim at accounting tricks.
Reuters English News Service, 11/11/01
Senate stimulus bill slammed as grab bag of special interests
Houston Chronicle, 11/11/01

Week in Review Desk; Section 4
November 4-10
Enron, a Giant Bargain
By Richard A Oppel Jr.

11/11/2001
The New York Times
Page 2, Column 3
c. 2001 New York Times Company

With its principal business in peril, Enron agreed to be acquired by Dynegy for $9 billion -- one-ninth what it was worth last year. Enron, of Houston, used political muscle and trading-floor savvy to create new markets for electricity and gas and become the nation's dominant energy trader. Yet its refusal to explain its finances caught up to it last month, when investors fled after disclosure of an S.E.C. probe and an unusual $1.2 billion reduction in shareholder equity. After it admitted overstating profits by $600 million, other energy companies began to shun Enron, putting its trading business in jeopardy. Finally, a humbled Enron, out of options, threw itself into the arms of Dynegy, its much smaller crosstown rival. Richard A. Oppel Jr.

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

Money and Business/Financial Desk; Section 3
DataBank
Dow Breaks Through Pre-Attack Level
By MICHAEL BRICK

11/11/2001
The New York Times
Page 15, Column 3
c. 2001 New York Times Company

Stocks posted big gains this past week, pushing the Dow Jones industrial average to its highest close since the Sept. 11 attacks.
The Federal Reserve's half-point reduction of short-term interest rates on Tuesday, to 2 percent -- the 10th cut this year -- was a big reason for the advance. Investors bought stocks on optimism that the latest cut would finally help stimulate the economy.
Equities got a further lift when reports emerged on Friday that seemed to run counter to the Fed's prediction that the economy would worsen, suggesting an economic turnaround had already started. The University of Michigan's monthly index of consumer sentiment, a widely followed barometer, showed a November improvement in attitudes about finances and the economy.
For the week, the Dow Jones industrials rose 284.46, or 3.05 percent, to 9,608.00, the first time since the Sept. 11 attacks that the average had closed above its Sept. 10 finish of 9,605.51. The Nasdaq composite index rose 82.75, or 4.74 percent, to 1,828.48. The Standard & Poor's 500-stock index rose 36.21, or 3.34 percent, to 1,120.31. Both the Nasdaq and S.& P. indexes regained their pre-attack levels in October. MICHAEL BRICK

Chart: ''STOCKS IN THE NEWS'' Baxter International NYSE: BAX Baxter said a chemical that it used to manufacture filters for dialysis patients may have played a role in dozens of deaths around the world. The F.D.A. is investigating those deaths. Friday's Close: $47.48 Week's Change: -3.10% EST. '01 P/E: 27.13 Cisco Systems NNM: CSCO For the first time this year, Cisco's revenue increased from the previous quarter. Although it had a loss in the first fiscal quarter, the results exceeded Wall Street's expectations. Friday's Close: $19.20 Week's Change: +11.24% EST. '01 P/E: 86.49 BellSouth NYSE: BLS The regional telephone company said it expected revenue to grow 5 to 7 percent in 2002, compared with sales growth of 8 to 9 percent this year. Friday's Close: $39.02 Week's Change: +3.67% EST. '01 P/E: 17.66 Microsoft NNM: MSFT A federal judge plans to hold separate but related proceedings on the proposed antitrust settlement between Microsoft and the Bush administration. Friday's Close: $65.21 Week's Change: +6.21% EST. '01 P/E: 35.44 Newport News Shipbuilding NYSE: NNS The company agreed to a $2.1 billion takeover by Northrop Grumman, a rival military contractor. Northrop will acquire the outstanding shares for $67.50 each and assume $500 million of debt. Friday's Close: $67.95 Week's Change: -2.09% EST. '01 P/E: 20.75 Dynegy NYSE: DYN Dynegy has agreed to acquire Enron, a rival energy trading company, in a deal valued at about $9 billion. It also includes the assumption of around $13 billion in Enron debt. Friday's Close: $38.76 Week's Change: +15.87% EST. '01 P/E: 18.52 Palm NNM: Palm The hand-held computer maker said that its chief executive, Carl J. Yankowski, had resigned. The departure comes after a year of missteps, including product delays and inventory buildups. Friday's Close: $2.65 Week's Change: +14.22% EST. '01 P/E: -- H. J. Heinz NYSE: HNZ Citing a slowdown in its food-service business, the company lowered its profit targets for the second quarter and for the full fiscal year. Friday's Close: $39.90 Week's Change: -7.66% EST. '01 P/E: 14.98 (Source: Bloomberg Financial Markets)
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

NEWS
Dealings of Enron emerging
TOM FOWLER
Staff

11/11/2001
Houston Chronicle
4 STAR
16
(Copyright 2001)

The Enron name may soon fade away, but the federal securities investigation that helped erode the energy giant's foundation is not over yet.
The 3 1/2-week-old Securities and Exchange Commission probe into Enron Corp.'s finances is likely drawing closer to answering questions about complex partnerships that wiped out more than $1 billion in shareholder value and almost $600 million in profits.
SEC officials don't discuss their works in progress, but already the results are becoming clear.
The company admitted that massive accounting errors over the past four years led it to overstate its profits and understate its debts, an admission that no doubt saved the company from some SEC penalties, say observers.
And the company has gradually distanced itself from its former chief financial officer - considered the architect behind some of the deals - and indicated that other employees were personally involved in the partnerships without its knowledge. But the culpability of Enron's current or former employees, if any, won't be clear for some time.
On Oct. 17, the day after Enron reported an unexpected third- quarter loss, the SEC began asking Enron questions about two off- balance-sheet partnerships, called LJM1 and LJM2. They were formed to help the company grow without adding additional debt or diluting stock valuations, and were also used to help hedge against the risks in some of Enron's newer lines of business.
Former CFO Andy Fastow formed the partnerships with the approval of the company's board of directors, attorneys and auditors. His dual role as CFO and managing partner of those two partnerships had the appearance of a conflict of interest, even though Enron insisted that measures were taken to prevent any illegal or unethical behavior.
The SEC's role in looking at the partnerships isn't to prevent company executives from having conflicts of interest in their dealings, however, but rather to make sure the companies fully disclose those conflicts or any situations that may appear to be conflicts, said John Coates, a professor at Harvard Law school.
"So although they have a role in determining that all the information in Enron's proxy was correct and that all transactions were reported, they were not responsible for determining whether or not the transactions were done on fair terms," Coates said.
Item 404 of SEC Regulation S-K requires companies to disclose any transactions where executive officers personally benefit by $60,000 or more. That disclosure should include their direct and indirect interests in the deal, the amount of money or assets they receive through it and other information.
As in all rules, however, there are certain exceptions.
If an executive's compensation from a deal is less than 10 percent of the value of the overall transaction, they may not need to disclose all of those details, Coates said. That stipulation could possible give Enron cover for not having previously disclosed the $30 million Fastow earned through the partnerships.
"But there are times when the companies may have followed the letter of the rules and the SEC still pushes them to fully disclose the details," he said.
Whether or not Enron needed to disclose previously the investments or profits that a number of other employees made in some of the partnerships is also hard to discern.
The company said this week that in addition to Fastow, five other employees invested in the deals. Two of those employees - Ben Glisan, a managing director and treasurer of Enron Corp., and Kristina Mordaunt, a managing director and general counsel of an Enron division - were terminated by Enron this week. The other employees, including Fastow and executives Michael Kopper, Kathy Lynn and Anne Yeager, no longer work for Enron.
The company didn't mention how much those individuals invested or how much benefit, if any, they reaped from the deals. Some of the employees may not even fall under the disclosure rule since it doesn't give a clear definition of what positions are "executive officers."
The company has gradually distanced itself from Fastow and the partnerships since the problems arose. Shortly after the earnings report last month Lay said he and the board stood by Fastow, but a day later replaced him.
On Oct. 31, the day Enron said the SEC had upgraded its review of the finances from a simple inquiry to a formal investigation, the company announced that its board of directors had created a special investigation committee of its own. A company spokeswoman stressed that the committee had the power to take disciplinary action against any Enron employee, officer or director who it determines "improperly participated in the transactions."
In its SEC filing that outlined the partnerships on Thursday, the company said it was aware of the partnerships but required that certain safeguards be put in place and that the transactions be approved and reviewed regularly.
"Whether these controls and procedures were properly implemented is a subject of the Special Committee's investigation," the statement said.
At a Friday news conference, Lay said the board was aware of the formation of one of the partnerships but that he was not aware that Glisan and Mordaunt were investing in the partnerships. Lay deflected many of the questions regarding the investigation, saying a conference call would be held next week.
Shareholders have lined up behind lawsuits against the company, the partnerships, and even the company's law firm, Vinson & Elkins.
"Disclosure cases and state corporate law cases are all but assured in situations like this," Coates said. "Even if the SEC does very little, the shareholders will still line up."

Photo: The new Enron Corp. building, framed by a curved walkway, is still under construction in downtown Houston. If Dynegy's proposal is approved, the $200 million, 40-story building will be among its new assets in the purchase of its much larger rival.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

NEWS
Demise of Enron a blow to city / As local business pillars crumble, Dynegy a bright spot
DAVID KAPLAN
Staff

11/11/2001
Houston Chronicle
4 STAR
1
(Copyright 2001)

It seems like only days ago that Enron Corp. was being held up as an example of a company that could see the future.
The wizards of Wall Street were marveling at the corporation's bold, innovative strategies.
In Houston, high-flying Enron was erecting its new headquarters downtown, a tall and shiny skyscraper, the city's first in more than a decade.
And now, almost suddenly, Enron is vanishing.
In the past few months, three pillars of Houston's economy and business leadership have fallen on hard times. Compaq Computer Corp., the centerpiece of Houston's technology image, may be sold. Continental Airlines has laid off thousands as it adjusts to a slowing economy and the aftermath of Sept. 11 in the travel business.
And only months ago, Houston lost the headquarters of American General as the company was sold to American International Group.
Now Enron will disappear as it is absorbed by one of its rivals.
What impact does all of this negative business news have on Houston's image?
The recent wave of corporate downturns has some experts concerned, but others say that when they look at the big picture they are still optimistic.
"The fact we have had multiple blows has certainly had a negative effect in the short run," said Barton Smith, director of the Institute for Regional Forecasting at the University of Houston.
But in the long run, Smith said, a city's future has more to do with its quality of life and the quality of its infrastructure than whether the city has lost or attracted a major headquarters.
"When Boeing left Seattle, we said, `Poor Seattle,' " Smith said. "(Three months later) Seattle is still growing and still known as a good place to live."
What is more important in terms of Houston's corporate image and its image in general, Smith said, is "whether it's easy to get around and get to work and how smoothly a businessman can get to Tokyo or London."
Smith believes Houstonians should be more concerned about other local problems such as getting the city's pollution problem "under control in a rational way." If Houston continues to be known as one of the most polluted cities in America, Smith said, "that will continue to haunt us."
The demise of Enron is "certainly not good news, nor was Compaq good news," said Steve Klineberg, a Rice University professor of sociology.
The two companies enhanced the city's image and stature, Klineberg said, in that they signified that Houston was moving out of a 20th- century oil-based economy into a 21st-century economy based on information and technology.
In terms of image, the Enron news is more damaging within the business community than to the perception of Houston by the world at large, said Steve Currall, associate professor of management psychology and statistics at the Jesse H. Jones Graduate School of Management at Rice University.
"Enron has very little business-to-consumer activity, and for the average person on the street" it doesn't mean much, he said.
But it is significant to the business community, Currall said. Enron has been a Fortune 10 company and consistently ranked as one of the most innovative companies in America. "And I think the struggles of Enron (have) a negative impact" in the business community, he said.
"Houston has benefited from a company like Enron, which has made the city a world headquarters for energy trading," Currall said. "It made us a hub for the development of financial management innovations.
"It's part of the reason why Enron and Dynegy resonate with the Wall Street gang. They say, `That trading stuff down there is cool.' It's the convergence of highly sophisticated finance and the energy industry."
Currall said he is delighted that Dynegy is Enron's "suitor" because it keeps the people and operations in Houston.
"That's great news for Houston," he said.
Others agreed that the presence of Dynegy in Houston will soften the blow.
Enron being bought by Dynegy, another Houston firm, is "like a couple of cousins getting together," said Barry Silverman, a marketing and management consultant.
"In a sense, there is no loss for Houston," said David Crossley, president of the Gulf Coast Institute, a nonprofit group that promotes quality-of-life issues in the area.
"Who would have thought that a company in Houston was capable of buying Enron?" Crossley said. It makes Dynegy a bigger company and, he said, creates a certain mystique about Houston since both cutting- edge businesses are here.
David Morris, the managing partner of the Houston office of Heidrick & Struggles, an executive recruiting firm, believes that Houston has been unfairly stereotyped as having a "gunslinger" style of business environment, and he is concerned that "what's perceived as a gunslinging type of accounting at Enron will be underscored once again."
But what should really be emphasized, Morris said, is Houston's creativity.
"That Enron took an old-line industry of gas transmission and re- created it into the marketing of gas and trading of gas and hedging of the price for gas - creating different value streams in the same industry - and did it before the rest of the world could grasp it all is pretty amazing, and none of that is going away," he said.
That point was echoed by Don Henderson, vice president and managing director of Hyatt Regency, Houston, and the recent chairman of the Greater Houston Convention and Visitors Bureau.
"When you think of New York, you think of the stock market," he said, "and when you think of Chicago, you think of agribusiness.
"And more and more when you think of Houston, it's energy as a commodity. And it's only going to be stronger with all the mergers and acquisitions because the business of trading energy as a commodity is only going to grow."
Henderson maintained that Houston is still the envy of much of the country.
Houston has always been one of the continuously booming economies, he said, and "has bounced back quicker and stronger than any region."
To offer an example of the city's resilience and appeal, Henderson noted that Hewlett-Packard Chief Executive Officer Carly Fiorina recently stated that the work force of Compaq's Houston campus might increase in size in part because of the city's business-friendly environment compared to what she described as a less friendly business climate in California.
Silverman maintained that the recent experiences of various local businesses "won't hurt our image at all."
"In this global economy, you often see companies changing names and headquarters," he said. "It's like a Monopoly game.
"I bet if I asked 100 people where Microsoft is headquartered, 50 of them couldn't tell me."

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

OUTLOOK
Editorials
FLYING BLIND / By keeping investors in the dark, Enron lost its way
Staff

11/11/2001
Houston Chronicle
4 STAR
2
(Copyright 2001)

Last spring, Enron Chairman Ken Lay told a leadership forum at the University of Houston that his goal was to make Enron the No. 1 company in the world. Six months later, Enron was fighting for its life. In a $7.8 billion stock deal struck Friday, Enron will cease to exist as its operations are folded into rival Houston energy firm Dynegy.
Enron, in recent years one of Houston's most important corporations, did not reach this pass because its ambitions were too high. Unlike the mythical Icarus, Enron did not fly too near the sun, melting the wax of its wings.
Enron's troubles came because some of its top executives chose to do much of their piloting under cover of darkness. In the process, they lost their way.
By using several mysterious partnerships to finance projects and shield risk and debt from public scrutiny, Enron's leaders set the stage for the vicious circle in which drops in earnings and investor confidence and creditworthiness followed and exacerbated one another. The deals became so complicated and impenetrable that Enron's directors, who approved them, no longer knew whether the company's revenues and assets were coming or going.
The Securities and Exchange Commission is investigating Enron's financial arrangements and questionable bookkeeping, and an Enron spokesman says the company now finds it difficult to know the state of the partnerships it owned or controlled. Following months during which Enron's announcements regarding departing executives lacked both accuracy and candor, the company this past week restated its finances back to 1997, subtracting $586 million from its net income and adding $2.5 billion to its debt. Regardless of what the SEC inquiry finds, Enron's revised accounting makes a good case for congressional or regulatory elimination of whatever loopholes allowed Enron to inflate its income and obscure its debt.
Enron officials say a special board committee is investigating the financial arrangements between former Enron executives and the obscure investment partnerships they managed or controlled. An Enron spokesman said the committee would make public its findings "at an appropriate time." The appropriateness of that time diminishes the further it gets from the present.
Neither Enron officials nor investors need to wait for the committee's report to conclude that letting executives profit on the side from the partnerships while sticking stockholders with the liabilities was inappropriate. For the sake of Enron, its stockholders and the citizens of Houston, who depend on Enron's contribution to the economy and the civic life of the city, that arrangement must not be repeated.
Much of Enron's problems stem from straightforward but imprudent or ill-timed investments: a power plant in India, broadband capacity not needed in a collapsing telecommunications market, and a doomed venture into the water business - Azurix Corp.
Those losses might have been survivable, had Enron not denied its own transactions the transparency it sought for global energy markets.

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

Business; Financial Desk
Deregulation Not Derailed by California's Meltdown Power: Though many energy firms were scarred in the state's free-market stumble, analysts say they are likely to rebound.
NANCY RIVERA BROOKS
TIMES STAFF WRITER

11/11/2001
Los Angeles Times
Home Edition
C-1
Copyright 2001 / The Times Mirror Company

Branded as lawless cowboys by California politicians and consumer advocates, energy merchants rode skyrocketing electricity and natural gas prices to new stock highs during the worst of California's energy crisis.
But in recent months these energy companies--names such as Duke, Dynegy, Reliant, AES, Mirant, Williams and El Paso Corp.--have seen their fortunes dim as California's electricity meltdown has slowed the pace of deregulation nationwide, power prices have tumbled and the economy has faltered.
Even power plant owners and energy trading operations that have maintained healthy earnings growth have watched their stock performance fade.
And then there's the Enron Effect.
Enron Corp., cast as the heavy by California politicians, has suffered the biggest fall of all and has helped to drag down stocks of other energy producers and traders.
Enron's woes appear to be a special case in that they flow less from its energy businesses than from a loss of investor confidence in the company's complex and shadowy financial structure, with a resulting cash crunch.
Nonetheless, Enron's detractors are crowing at the rapid decline of the truest believer in electricity deregulation, the movement to take businesses controlled for decades by monopoly utilities and throw open the generation, trading and retail sale of electricity to new competitors.
But just as Enron is not dead, neither is electricity deregulation, energy experts contend. Though several states have delayed their deregulation plans and some major corporate players are tempering their enthusiasm, other states and corporations press ahead.
It's a tough new world for energy companies that will bring profit opportunities for some and acquisitions of low-priced players, analysts say. Enron, once the most brash of the energy peddlers, has agreed to be acquired by archrival Dynegy Inc. in a $7.7-billion stock deal.
Yet when the economy and power prices improve, energy companies will see their prospects gleam again, analysts say.
"Deregulation is a train that's not going to be derailed. It may be delayed, but it's coming," said Jon Kyle Cartwright, senior energy analyst with brokerage firm Raymond James & Associates.
"When the economy rebounds, we're going to see higher energy prices again," Cartwright said. "That means that the guys who sell power, the guys who manufacture power--they're going to have very bright futures."
Less than a year ago, when energy prices were headed for record territory in California and a winter of electricity shortages plagued the state, the favorite whipping boys of Gov. Gray Davis and other politicians were such energy sellers as Enron, AES Corp., Dynegy, Duke Energy Corp., Reliant Energy Inc., Mirant Corp., Williams Cos. and El Paso Corp.
All are energy companies that own power plants in California or sell electricity or natural gas in the state at prices deemed by state officials to be higher than those a truly competitive market would have produced. The energy companies have denied that they overcharged Californians, and federal regulators investigating the matter have so far ordered only limited refunds of electricity revenues.
Nonetheless, Southern California Edison Co. and Pacific Gas & Electric Co. lost so much money paying for electricity--costs they could not pass on to customers because of a rate freeze--that they became insolvent. PG&E filed for bankruptcy protection.
California's near-death experience in electricity markets brought state government into the power business in unanticipated ways when lawmakers passed the landmark deregulation bill in 1996.
The state became the primary electricity buyer for the big utilities' customers and formed a power authority to build power plants and transmission lines, becoming potential competition to generation companies. State regulators blocked electricity sellers from signing up new retail customers, a program known as "direct access" that is one of the key components of electricity deregulation.
Players Refocusing on Other Operations
The energy spectacle in California caused several states to short-circuit deregulation plans or to take a much slower approach that could delay for years the opening of those markets to competition.
Energy companies also are now contending with lower electricity prices, which have plummeted since the beginning of the year, thanks to lower natural gas prices and temperate weather. And volatility has nearly disappeared, thereby cutting profit potential for energy trading firms.
The economic downturn will reduce demand for electricity, analysts said, which also will hurt earnings at a range of companies.
The pain was apparent in third-quarter results.
"After several quarters of across-the-board strong results, we are now in more of a winners-and-losers environment, as low commodity prices and a weak economy make conditions more difficult," Merrill Lynch energy analyst Steven Fleishman said in a recent note to clients.
Some big and mid-size players have stumbled, and a few have slowed their headlong rush into unregulated businesses that had until recently held promise for these companies, many of them utilities that branched out.
A prime example is AES, which generates electricity in California, across the nation and in 26 other countries. AES said third-quarter net income fell 98% because of a sharp drop in profit from its operations in Brazil and Britain. AES reduced its earnings estimates for the year and said it will refocus on its core energy business, look for divestiture opportunities and not invest in any more telecommunications businesses, dropping its hostile $1.37-billion bid last week to take over a Venezuelan telecom firm.
Reliant Energy said its wholesale energy operation had a 15% drop in third-quarter operating income, blaming lower gas and power prices, plus legal and other costs related to the California electricity crisis. The company's European operations lost $5 million because of lower profit brought about by deregulation in the Netherlands, and Reliant now is considering selling its European businesses.
Constellation Energy Group, which owns the utility in Baltimore and is building power plants in California and around the country, abandoned plans to spin off its trading operation after it said earnings for the year will come in at the low end of estimates.
One California firm that appeared poised to benefit from electricity shortages was Chatsworth-based Capstone Turbine Corp., which manufactures micro-turbines that supply power to a small business or a cluster of homes.
But struggling Capstone said third-quarter revenue dropped by nearly half and its net loss widened by 54% to $12.5 million as California dodged a summer of blackouts and the economy slowed.
Energy Giant Takes an Unexpected Loss
The company hired a new chief operating officer and said it would restructure and lay off an undisclosed number of employees.
The biggest surprise came from Enron, which broke a run of 16 profitable quarters, reporting a $635-million net loss for the third quarter because of a $1-billion charge from failed investments in water and telecommunications. The Houston-based energy giant also revealed that two of its off-balance-sheet investment partnerships, headed until July by its chief financial officer, led to $35million of the losses and chipped $1.2billion off shareholder equity in the third quarter.
Investors began this month to dump the stock, and Enron's credit rating eroded amid lawsuits, news of a probe by the Securities and Exchange Commission into conflicts of interest and attempts by management to soothe fears.
Enron Chief Financial Officer Andrew Fastow, who ran the two partnerships, was pushed out and the firm lined up new financing and went looking for new investors.
Enron has used an opaque grid of off-balance-sheet partnerships to shelter assets and debt to help the company's push into a variety of deregulated markets in recent years. But analysts and investors fear that Enron is hiding money-losing assets in the partnerships; management has been tight-lipped about the purpose and holdings of the investment vehicles.
Takeover rumors swirled last week around Enron before Dynegy announced the deal Friday, underscoring predictions of general industry consolidation because of low stock prices.
Some Firms Thriving, but Not Their Stocks
Some companies are still going strong, although their stocks remain depressed.
That includes companies on the receiving end of potshots from California's politicians and utility regulators such as Duke Energy, Dynegy, Mirant, NRG Corp. and Williams, as well as San Jose-based Calpine Corp., which was repeatedly praised by Davis for playing a constructive role during the crisis.
Calpine, for instance, said third-quarter profit and revenue doubled because the electricity producer increased sales by adding power plants. And yet its stock is down 55% from a 52-week high of $58 reached in March.
"These are the energy merchants that seem to have the best grasp on the market and on risk management," said Chris Ellinghaus, power and natural gas analyst with Williams Capital in New York. Many of these companies are diversified geographically and by the fuel they use to generate electricity and had locked in favorable contracts that protected them when power prices fell this summer, he said.
ABN Amro utility analyst Paul Patterson said investors have turned away from these companies, even the healthy ones, because the business "isn't as exciting as it used to be."
"People go on earnings momentum. It's kind of like having your dessert first," Patterson said. "Once the best is over, you lose your appetite."
One company trying to adapt to deregulation's devolution in California is Commonwealth Energy Corp., which has survived a run-in with the California Public Utilities Commission and the suspension in California of direct access, Commonwealth's primary business of selling electricity directly to consumers and businesses.
Commonwealth Energy was one of the more than 300 companies that flocked to California to sell retail electricity to the customers of Southern California Edison, PG&E and San Diego Gas & Electric Co. All but about a dozen of the electricity sellers failed, and Commonwealth enjoyed initial success peddling low-priced power from renewable sources.
But the Tustin-based company and its founder, Fred Bloom, ran afoul of the PUC for faulty billing practices and Bloom's failure to disclose that he had been ordered to stop selling unregistered securities by five states.
Commonwealth Energy settled the matter by paying about $350,000 and reimbursing customers. Bloom was banished from the firm as part of the settlement, and an all-new management team set about diversifying away from deregulated businesses, said Ian Carter, the company's chairman and chief executive.
The firm, which recently became registered as a public company but can't sell stock until January, is earning a profit, largely because it has been able to resell contracted energy for more than it paid.
To maintain its growth, the company is turning away from deregulation and toward providing back-office services for regulated companies, generators and municipalities, Carter said.
For the fiscal year ended July 31, Commonwealth Energy posted revenue of $183 million, up 84%, and income of $60.5 million, compared with a loss of $8.6 million in the previous fiscal year.
"We certainly don't consider ourselves a casualty of deregulation or direct access," Carter said, noting that the company still sells electricity to 55,000 California business and residential customers and to cities, including Santa Monica and Palmdale.
"We realized that we needed to diversify and we needed to do that fairly quickly," Carter said. The company has nearly 40,000 retail customers in Pennsylvania and will be entering Texas, Michigan, New Jersey and Ohio, he said.
Seven states have delayed their push toward open markets, and some of those that remain on track, such as Texas, have run into unforeseen glitches that delay the process of giving electricity customers choices beyond their traditional utilities.
Deregulation marches on in power trading and generation.
The Electric Power Supply Assn., a Washington-based trade group, said last week that competitive power supplies account for slightly more than a third of the nation's generation capacity, up from 8.5% in 1997. Wholesale power trading could approach 7 billion megawatt-hours this year, up from 2.6 billion in 1999, the group said.
Federal regulators are in the middle of determining how to reallocate control of electricity transmission lines into only a few regional operators, perhaps owned by new for-profit companies other than utilities.
This process shows that the Federal Energy Regulatory Commission remains determined to open electricity markets despite the problems in California, said Lawrence J. Makovich, senior director of the North American power practice at Cambridge Energy Research Associates.
"We've got major parts of the electricity business moving backward, and California is the prime example," Makovich said. "But when you look at other places in the country, what you see is a continuing evolution to a much more market-based power situation."
David Jermain, a principal in the national utility practice of Andersen LLP, said California will remain on the sidelines for years, paying higher prices than those produced by competitive markets. It also must contend with a number of pending lawsuits.
"California is in for a long-term state of chaotic confusion," Jermain said. "It's such a complicated mess that you're going to have to let the court system play through."

PHOTO: Commonwealth Energy is trying to adapt to deregulation's devolution by diversifying quickly, says Chief Executive Ian Carter.; ; PHOTOGRAPHER: ROBERT GAUTHIER / Los Angeles Times; GRAPHIC: Landscape for Electricity, Los Angeles Times; ; GRAPHIC: Losing Wattage, Los Angeles Times;
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Business
The Thing Is: Enron

11/11/2001
The Independent - London
FINAL
3
(Copyright 2001 Independent Newspapers (UK) Limited)

To investors who thought utilities were a slow but steady way to watch their money grow, Enron tells a particularly chilling tale of horror.
Even Friday's news that Enron's much smaller Houston neighbour, Dynergy, may be preparing to mount a $7bn (pounds 5bn) cash and stock bid did not mask the grisly truth. As far as US fund managers are concerned, this is a company that let Wall Street down spectacularly. Dynergy is thought to have waited until then to be sure Moody's did not downgrade Enron's investment grade to junk status.
The misery is doubled by the tempting image of what Enron could have been. At their peak almost a year ago, the shares gave the company a market value of $69bn; on Friday they were worth a tenth of that.
The market felt there was good reason to push the stock to those heights. Here was a company that had, for many years, appeared to make all the right moves. As the group transformed itself from a dull utility into an exciting mix of energy trading, communications and services, it seemed never to put a foot wrong. "You had such an outstanding and arrogant company," said Roger Hamilton, a senior fund manager at John Hancock, "They were the giant. Everything in the energy industry touched Enron."
The company even managed to persuade investors its convoluted management structure, which some believe is the root cause of its demise, was a positive thing. "You can't kiss the ass of 24 people," said former Enron chairman Jeffrey Skilling. "And together those 24 people are more likely to have the interests of the shareholders at heart than any one person."
Unfortunately, behind the scenes, all hell was breaking loose. The last couple of months have given the market a long, embarrassing string of revelations about the company it once cherished. The company has $13bn of outstanding debt, and has found its access to funds extremely limited. Two weeks ago, as a measure of its desperation, Enron had to secure a rescue loan against its 25,000- mile network of gas pipelines. Along the way, details of the group's botched expansion into India have made for supremely depressing reflections on management. Crowning the whole sorry tale, and driving the shares down 80 per cent, was the opening last month of a Securities and Exchange Commission probe into the accounting for some of Enron's partnerships. Last week came the sacking of the group's treasurer and corporate lawyer, and a revision of earnings for the last four years to the tune of half-a-billion dollars.
Despite it all, Dynergy's bid could be the steal of the century. Until all its troubles are out in the open, Enron may be just a little too grimy for many potential buyers. But even the most bearish analysts can see there are rich pickings from the old Enron empire. Dynergy's big problem is snapping them up before the big boys, including Chevron or Shell, poach the good stuff.
Leo Lewis

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

USA: Wall Street takes aim at accounting tricks.
By Deepa Babington

11/11/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Nov 11 (Reuters) - Wall Street is starting to refuse to bite the bait on dubious earnings numbers highlighted by corporations in press releases.
Companies tout profit figures, frequently called pro forma results, that strip out unseemly one-time charges and expenses at record levels - more than $200 billion this year alone. Investors, analysts, and accountants are revolting, and pressure is building to do away with the medley of different profit numbers or at least cut down on it.
Standard & Poor's, a major compiler of earnings and other financial data, now will treat restructuring charges, stock option expenses, and write-downs from ongoing operations as part of a company's operating earnings - items that many companies exclude from their version of operating earnings.
"In the past, S&P would take a company's special charges at their word," said S&P analyst Robert Friedman, who was involved in the project. "But now we're going to say, 'Hey, wait a minute.'"
The decision underscores the momentum building on Wall Street to scrutinize corporate accounting. One recent high-profile victim of this movement was Enron Corp. The energy trading company faced a crisis in investor confidence after it became clear it had boosted profits and racked up debt through complex financial transactions known as off-balance sheet deals.
The deals, which were structured so they wouldn't show up on Enron's balance sheet, caused Enron to chop almost $600 million off earnings for the last four years. The once-mighty company lost $20 billion in market value, and on Friday agreed to be bought by smaller rival Dynegy Inc.
Investors are scared of such stock market casualties. That's partly why they want to crack down on pro-forma numbers, which often present a much rosier picture of a company's performance because they exclude a whole bevy of costs that drag down the bottom line.
"Hopefully, this will put pressure on companies to think twice when they put out their financials," said Friedman.
Tech companies, in particular, conveniently have stripped out everything from inventory write-downs to severance costs from their bottom-line figures and pressured analysts to do the same with their earnings estimates.
Mobile phone maker Motorola Inc. , for example, reported a third-quarter pro forma loss of $153 million early last month. After including charges for investment impairments, cost reduction activities and additional reserves for its financing of a Turkish cellular operator, however, the company posted a whopping $1.4 billion loss.
A Motorola spokesman was not available for comment.
The practice has also made it difficult for analysts and investors to compare the results of one company against its peers as each comes up with its own ideas of what should be included in pro forma earnings.
"There are so many variants of pro forma that it can cloud comparisons," said David Zion, an accounting analyst at Bear Stearns.
The proliferation of these reports has also caught the attention of the nation's accounting rule makers, even though they don't have the authority to police press releases.
The Financial Accounting Standards Board (FASB) two weeks ago said it is pressing ahead with a project that will look at how some closely watched items such as pension fund income should be classified and presented in financial statements.
Corporate America was not enthused by the idea and several corporations wrote to the accounting body urging it not to go ahead with the plan, said the project's senior manager, Ronald Bossio.
But fund managers and investors are applauding.
In a survey of 223 portfolio managers by capital markets firm Broadgate Consultants, nine out of 10 stock pickers said companies need to improve how they report results. FASB needs to come up with one key indicator of financial performance, and companies should abide by it, they basically said.
If the accounting rule-making body accepted EBITDA, or earnings before interest, taxes, depreciation and amortization, as a key measure, companies ought to calculate it in a consistent manner and display it as a separate item on their statements, almost all managers agreed.
"I think that pro forma thing is just a way to get around Generally Accepted Accounting Principles," said Debra McNeill, a portfolio manager at Fremont Investment Advisors. "I think there needs to be some guidelines to be set out on pro forma numbers, but it does not necessarily need to be banned.

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

NEWS
Senate stimulus bill slammed as grab bag of special interests
JANET HOOK
Los Angeles Times

11/11/2001
Houston Chronicle
4 STAR
6
(Copyright 2001)

WASHINGTON - Watermelon growers. Filmmakers. Owners of electric cars. Commuters in northern New Jersey. Those are among the people who would benefit from the fine print of a bill, in the Senate on Friday, to boost the languishing U.S. economy.
The bill, on which a vote is expected this week, would pour about $70 billion into the economy next year, mostly for extended unemployment benefits, health insurance subsidies and tax breaks for individuals and businesses.
But it also includes a panoply of provisions less obviously connected to stimulating the economy - and more clearly designed to win support from specific senators.
In a last-minute concession to Sen. Robert Torricelli, D-N.J., the bill includes bonding authority for Amtrak to develop high-speed railroads and for a new New York-New Jersey tunnel. More than $5 billion in agriculture subsidies were grafted on to help shore up support of farm-state members.
The Senate Finance Committee approved the bill Thursday night on a party-line vote, but only after Republicans spent hours slamming it as a hodgepodge of special-interest favors that will do little to strengthen the economy.
"This is a collage of political giveaways," said Sen. Phil Gramm, R-Texas.
Sound familiar? That's because Democrats mounted a similar critique of the bill approved by the Republican-controlled House two weeks ago. Democrats argued that the House's $100 billion tax cut bill primarily would benefit some of the biggest corporations in America, including Houston-based Enron Corp. Rep. Martin Frost, D- Dallas, called it a "grab bag of special-interest goodies."
The mudslinging on both sides illustrates a new line of argument that crops up in debates all over Capitol Hill these days: The best way to attack your opponents is to accuse them of trying to capitalize on the post-Sept. 11 sense of crisis to advance a parochial political agenda.
Sometimes the critique boomerangs. Rep. J.C. Watts, R-Okla., a member of the House Republican leadership, issued a statement Thursday attacking the Senate Democrats' bill, saying, "The Senate's economic proposal focuses more on the excise tax for rum and other special-interest breaks than creating jobs."
He was referring to a Senate provision that would extend for one year an existing provision affecting rum imports. The problem with his argument, however, is that the same provision is in the House Republican bill - which Watts supported.
That's just one of many provisions in both the House Republican and Senate Democratic bills that have little connection to economic stimulus; instead, they extend a slew of tax breaks, routinely approved by Congress, which are about to expire.
At the White House, spokesman Ari Fleischer said the Senate bill contained "too much spending and not enough stimulus." He lambasted the $220 million in the bill for bison meat, eggplant, cauliflower and pumpkin growers - in essence, a government subsidy for commodities that have "experienced low prices during the 2000 or 2001 crop years." Thirty-four commodities would qualify.
But Senate Finance Committee Chairman Max Baucus, D-Mont., said aid for the ailing agricultural sector is an appropriate element of a recovery plan.
"When our national economy declines, rural areas are often among the areas that are hit the hardest and that recover slowest," Baucus said.
Another industry that could benefit from the Senate bill is the motion picture industry. Like the House bill, the Senate bill allows businesses more quickly to write off their investments in assets whose value depreciates over a number of years. But unlike the House legislation, the Senate bill includes a provision specifying that films are a depreciable asset qualifying for the tax break.

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


Content-Transfer-Encoding: quoted-printable
Date: Thu, 15 Mar 2001 08:11:17 -0600
From: "Tracey Bradley" <tbradley@bracepatt.com>
To: "Paul Fox" <pfox@bracepatt.com>
Cc: "Andrea Settanni" <asettanni@bracepatt.com>, "Charles Ingebretson"
<cingebretson@bracepatt.com>, "Charles Shoneman" <cshoneman@bracepatt.com>,
"Deanna King" <dking@bracepatt.com>, "Jeffrey Watkiss"
<dwatkiss@bracepatt.com>, "Gene Godley" <ggodley@bracepatt.com>, "Kimberly
Curry" <kcurry@bracepatt.com>, "Michael Pate" <mpate@bracepatt.com>, "Ronald
Carroll" <rcarroll@bracepatt.com>
Subject: DJ Calif Utils, State Not Close To Pwr Lines Sales Deal
Mime-Version: 1.0
Content-Type: text/plain; charset=ISO-8859-1
Content-Disposition: inline

FYI

DJ Calif Utils,State Not Close To Pwr Lines Sales Deal -Exec
Copyright , 2001 Dow Jones & Company, Inc.

LOS ANGELES (Dow Jones)--California doesn't appear to be close to reaching a
deal to buy the power lines owned by the state's three investor-owned
utilities and restore the companies to financial stability, a utility
executive told Dow Jones Newswires Wednesday.

     Gov. Gray Davis said this week that progress was being made and a final
agreement between the state and PG&E Corp. (PCG) unit Pacific Gas & Electric,
Edison International (EIX) unit Southern California Edison and Sempra Energy
(SRE) unit San Diego Gas & Electric could be reached in either "days or
weeks."

     But the tone in Davis's office when asked about the negotiations has
changed.

     "The governor realizes it's in everyone's interest to resolve this as
quickly as possible, but only if we get a good deal for California
ratepayers, not at the expense of California ratepayers," said Steve
Maviglio, the governor's press secretary.

     A senior executive with Edison International, which has already reached
an agreement in principle with Davis to sell the state its power lines for
$2.76 billion, said Wednesday the company is "not getting much reaction from
the state on a final agreement and there is a growing concern that time is
running out."

     "Obviously I don't think the status quo can go on much longer," the
executive said. "The urgency rests with the governor's office. The ball is in
his court."

     The executive wouldn't say what is delaying a final resolution.

     The Davis plan, introduced last month, would have the state buy the
power lines owned by the utilities for about $7.5 billion and allow the
utilities to issue bonds to restructure any remaining debt.

     Maviglio wouldn't elaborate on the negotiations, but an aide to Davis
who is familiar with the negotiations said the talks between PG&E have fallen
through.

     "They've completely broke down," the aide said. "The (Davis
administration) hasn't negotiated with PG&E for about a week."

     A PG&E spokesman wouldn't comment on the negotiations.

     -By Jason Leopold, Dow Jones Newswires; 323-658-3874;
mailto:jason.leopold@dowjones.com

     (END) Dow Jones Newswires 15-03-01

      DJ Calif Utils -2: Calif Gov: Talks Continue, Progress Made

     The Davis administration said on the record that negotiations continue
and they are meeting with all three utilities and continue to make progress,
said Steve Maviglio, press secretary to Governor Davis.

     (END) Dow Jones Newswires 15-03-01


FYI
----- Forwarded by Sara Shackleton/HOU/ECT on 07/10/2000 08:36 AM -----

	Stuart Zisman
	07/10/2000 08:28 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Fwd: Newsprint Swap Agreement

Attached is an email that I received regarding the Garden State SWAP.

Stuart

----- Forwarded by Stuart Zisman/HOU/ECT on 07/10/2000 08:28 AM -----

	"GEORGE T. LEE" <GTLEE@LLGM.COM>
	07/09/2000 10:21 PM

		 To: <finley.biggerstaff@enron.com>, <JOE.jure@enron.com>,
<Peter.del.Vecchio@enron.com>, <Stuart.Zisman@enron.com>, "JOHN G KLAUBERG"
<JKLAUBER@LLGM.COM>
		 cc: "BENJAMIN G. CLARK" <BGCLARK@LLGM.COM>
		 Subject: Fwd: Newsprint Swap Agreement

Please see the attached comments from Media General on the Swap agreement
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Message-ID: <45D7D4DF6C67D2119A020008C7A4AC770327B3F8@DCNTEML01>
To: gtlee@llgm.com
Subject: Newsprint Swap Agreement
Date: Sun, 9 Jul 2000 21:54:11 -0400
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George,
I'm not sure if you're the right person to send the comments to, but Media
General has the following comments on the Newsprint Swap Agreement.

Schedule to Master Agreement

1.  Media General wants the cross-default to be reciprocal at $100 million
for both Media General and Enron.
2.   Further, Media General thinks that this should be a cross-acceleration,
not a cross-default.
3.   Page 3 of Schedule.  The "date by which to be delivered" for Party B
should track the same with Party A: i.e., if financials are available on
EDGAR then they would not be automatically provided by MG on a quarterly
basis.
4.  Page 4 of Schedule.  Under (a), add "Attn.: Chief Financial Officer".
We will send Marshall Morton's fax and telephone numbers.
5.  We will let you know who will serve as process agent.  We would like to
talk about governing law in Texas and the site of arbitration in Houston.
6.  Page 6 of Schedule.  In clause(b)(g), please note that MG intends to
assign this agreement and we want to make sure that does not affect this
representation.
7.Page 8 of Schedule.  MG wants the right to assign this agreement to a
party with a credit agreement equivalent to a certain level.  We can discuss
what that level should be.  We should discuss what Enron's credit rating is
in this connection.

Transaction Confirmation Document.

1. MG does not think this transaction should be characterized as a
"swaption".  This was to be a deal for the purchase of newsprint at a fixed
price, not at Enron's option.
2. We want todiscuss the expiration date. We should also discuss the other
dates and terms which are blank.  On page 2, under "Additional Provisions",
the date for satisfying conditions is clearly wrong since it refers to July
5.  Once again, all of this ties in with not being an option, but a fixed
agreement.
3. We would like to have Enron render a monthly settlement statement with a
net amount being paidto/receivable from MG.  No netting is presently
provided for in the agreement.

ISDA Credit Support Annex

MG  would like to delete this entirely and would propose that Enron would
rely on the general cross-acceleration provisions.  Media General never
contemplated credit provisions more onerous than its credit agreements.

          I will have the Media General business people follow up with the
people at Enron, but could you please have some one get in touch with me on
this.

Thanks,
John


---------------------- Forwarded by Tory Bracy/Corp/Enron on 12/13/99 05:14
PM ---------------------------

"Nyna K. Kent" <NK02@hou-metro.harris.tx.us> on 10/01/99 09:12:33 AM
To: Alina Bolua <AB02@hou-metro.harris.tx.us>, Angie Lathan
<apayne@galaxycable.com>, "Carla (Home)" <fordc@swbell.net>, "Debbie's Work"
<caruthers@studenthousing.com>, Evelyn Cherny <EC01@hou-metro.harris.tx.us>,
Irma Arevalo <IA01@hou-metro.harris.tx.us>, Tory Bracy/Corp/Enron@ENRON
cc:

Subject: obituary

> Kathy had just become a widow and needed to put an
> obituary in the paper about her late husband, Anthony.
>
> She called the newspaper and asked, "how much to put an
> obituary in the paper?"
>
> "The cost is $0.50 per word," said the newspaper editor.
>
> "Fine, please print "Bubba died."
>
> The startled newspaper editor explained that there was a
> 7 word minimum charge.
>
> Kathy thought for a moment, then said, "Okay, then, please
> print 'Bubba died. 1983 pickup truck for sale.'"
>


All,

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What do you think of this?


Once again, Enron employees showed their generosity.

Thanks to everyone who participated in the March of Dimes Raffle, we raised
over $1,750.

The Big Winners in the raffle were:

 Mary Anne Miller - Airline tickets
 Cindy Stark - Compaq PA Personal Audio Player
 Mary Vollmer - Urban Retreat Gift Certificate
 Ben Nguyen - Four Astros Tickets
 John Chang - Four Astros Tickets
 Betty Keenan - Barrington Roller Pen
 Bob McAuliffe - Cutter & Buck Polo Shirt
 Kimberly Nelson - Zippered Portfolio
 Karon O,Gorman - Desk Clock
 Tammy Kovalcik - Laptop Carrying Case
 Lisa Gilchrist - Laptop Carrying Case
 Sharon Farrell - Laptop Carrying Case
 Scott Churbock - Laptop Carrying Case
 Argelia Vallejo - Laptop Carrying Case
 Mike Millwee - Microsoft Office 2000 Professional Software
 Stacy Holtzman - Microsoft Visio2000 Technical Edition Software

Thanks again for supporting March of Dimes!