TO:  Advisory Committee Members

FROM: Paul R. Kleindorfer
  Howard Kunreuther

Date:  March 12, 2001

Subject: Our Next Advisory Committee Meeting

Just to let you know that our next Advisory Committee Meeting will be on
Thursday, June 14, 2001. We will be sending the agenda and more details in
late March or early April. The principal theme of this meeting of the
Advisory Committee will be "Markets and Regulation for Efficient Risk
Management".

We would appreciate your letting Theresa Convery know your attendance by
returning a completed response form (copy attached) via fax or email as soon
as possible.

FAX:    (215) 573-2130
PHONE: (215) 898-5688
EMAIL: tconvery@wharton.upenn.edu

 <<Response Form.doc>>

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Theresa Convery
Administrative Assistant
Risk and Decision Processes Center
The Wharton School of the University of Pennsylvania
(215) 898-5688/Fax: (215) 573-2130
tconvery@wharton.upenn.edu

 - Response Form.doc


------------------------------------------------------------------------------
------------------------
W E E K E N D   S Y S T E M S   A V A I L A B I L I T Y

F O R

December 22, 2000 5:00pm through December 27, 2000 12:00am
------------------------------------------------------------------------------
------------------------

SCHEDULED SYSTEM OUTAGES:

ARDMORE DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.

AZURIX: No Scheduled Outages.

EB34 DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.

EDI SERVER: No Scheduled Outages.

ENRON NORTH AMERICAN LANS:
Impact:  CORP
Time:  Mon 12/25/2000 at  8:00:00 PM CT thru Mon 12/25/2000 at  9:00:00 PM CT
 Mon 12/25/2000 at  6:00:00 PM PT thru Mon 12/25/2000 at  7:00:00 PM PT
 Tues 12/26/2000 at  2:00:00 AM London thru Tues 12/26/2000 at  3:00:00 AM
London
Outage:  Cluster Bounce
Environments Impacted:  Corp
Purpose: The virus scanning software currently installed on this cluster is
not running correctly, we will install a new version which will require a
reboot.
Backout: Full backups will be done, prior to this procedure.
Contact(s):  Frank Coles    (713)406-0470

FIELD SERVICES:  No Scheduled Outages.

INTERNET: No Scheduled Outages.

MESSAGING:
Impact:  EI
Time:  Fri 12/22/2000 at  5:00:00 PM CT thru Sat 12/23/2000 at  5:00:00 PM CT
 Fri 12/22/2000 at  3:00:00 PM PT thru Sat 12/23/2000 at  3:00:00 PM PT
 Fri 12/22/2000 at  11:00:00 PM London thru Sat 12/23/2000 at  11:00:00 PM
London
Outage:  Genesis/Store IT Shutdown
Environments Impacted:  El and EE&CC
Purpose: The Enron International IT Security infrastructure, support team and
security functions are now one organization. The final phase of this
transition is to phase out Genesis and Store IT replacing it with eRequest.
Backout: Re-establish privileges to notes database.   Users effected will be
able to send requests in via email to EI Security Admin.
Contact(s):  Tori Hayden  713-853-6277
  Darrell Williamson  713-345-4923  713-708-0627
  Roberto Deleon  713-345-8824

Impact:  CORP
Time:  Fri 12/22/2000 at  5:00:00 PM CT thru Sat 12/23/2000 at  5:00:00 PM CT
 Fri 12/22/2000 at  3:00:00 PM PT thru Sat 12/23/2000 at  3:00:00 PM PT
 Fri 12/22/2000 at  11:00:00 PM London thru Sat 12/23/2000 at  11:00:00 PM
London
Outage:  Decommissioning of SRRS
Environments Impacted:  Corp
Purpose: SRRS will be replaced with eRequest to provide the user community
one system to request their Networked resource.
Backout:
Contact(s):  Tori Hayden  713-853-6277
  Leah Van Arsdall  713-345-8829  877-249-3510

MARKET DATA: No Scheduled Outages.

NT: No Scheduled Outages.

OS/2:  No Scheduled Outages.

OTHER SYSTEMS: No Scheduled Outages.

SITARA:  No Scheduled Outages.

SUN/OSS SYSTEM: No Scheduled Outages.

TELEPHONY: No Scheduled Outages

TERMINAL SERVER:  No Scheduled Outages.

UNIFY:  No Scheduled Outages.

------------------------------------------------------------------------------
-------------------------------------------------------
FOR ASSISTANCE

(713) 853-1411   Enron Resolution Center
(713) 853-5536   Information Risk Management

Specific Applications Help:
Unify On-Call      (713) 284-3757  [Pager]
Sitara On-Call     (713) 288-0101  [Pager]
RUS/GOPS/GeoTools/APRS   (713) 639-9726  [Pager]
OSS/UA4/TARP    (713) 285-3165  [Pager]
CPR      (713) 284-4175  [Pager]
EDI Support      (713) 327-3893  [Pager]


did chad hit you up to live with him?


I have been excited - I have been tryinf to plan activies for the last week
and a half.  This is the first confirmation of snow that I have seen of
snowfall.  I am ready!

-E

"K. Bass" <daphneco64@bigplanet.com> on 11/01/2000 01:17:31 PM
Please respond to "K. Bass" <daphneco64@bigplanet.com>
To: Eric.Bass@enron.com
cc:
Subject: Re: Telluride

Neat site.  How did you find it?  Snow looks promising.  I'm getting
excited.  How about you?  LU-M
----- Original Message -----
From: <Eric.Bass@enron.com>
To: "K. Bass" <daphneco64@bigplanet.com>
Sent: Wednesday, November 01, 2000 1:10 PM
Subject: Re: Telluride

>
> just to give you the update on snowfall in telluride - 2 feet in the last
> week
>
>
>
>
> "K. Bass" <daphneco64@bigplanet.com> on 11/01/2000 01:04:37 PM
>
> Please respond to "K. Bass" <daphneco64@bigplanet.com>
>
> To:   Eric.Bass@enron.com
> cc:
> Subject:  Re: Telluride
>
>
> I'll check it out.  You called?  LU-M
> ----- Original Message -----
> From: <Eric.Bass@enron.com>
> To: <daphneco64@bigplanet.com>; <lwbthemarine@bigplanet.com>;
> <Jason.Bass2@COMPAQ.com>; <shusser@enron.com>
> Sent: Wednesday, November 01, 2000 12:34 PM
> Subject: Telluride
>
>
> > Everything you ever wanted to know about telluride.
> > http://www.telluride-ski.com/#
> >
>
>
>
>
>
>
>


The following is a summary of our position in the matter:

1. The vessel has been bareboat chartered to MTM Ship Management ("MTM") for
3 years from June 1999. MTM is a Singapore incorporated company. On the face,
our action should be against MTM.

2. Because MTM is not the beneficial owner of the vessel, Singapore law does
not allow ECTS to arrest it for a claim against MTM. Although arrest in
Malaysia is possible, it is procedurally very difficult (especially over the
weekend in Kuantan).

3. There is a strong possibility that MTM has substantial assets sufficient
to meet ECTS's claim. MTM manages about 8 - 10 vessels but are not likely to
own any.

4. I have discussed the matter with Alan and Richard. Our proposed plan of
action is as follows:

(a)  ECTS will not arrest the vessel in Malaysia over the weekend. If
necessary, the vessel can still be arrested on its next cycle or at the next
port which allows for arrest.

(b) I have instructed our external Singapore lawyers (Rajah & Tann) to do a
full search on MTM and EPTS (the agents) to determine their assets. A search
with the Singapore Registry of Company will reveal paid up capital and annual
accounts which will give us an indication. Such a detailed search, however,
is likely to take 2 or 3 working days.

(c)  Once the searches are received and we have confirmed MTM (and less
likely EPTS) to have substantial assets, I will instruct our external English
lawyers (Watson Farley & Williams) to give a full opinion of the merits under
English law and subject to that, commence arbitration proceedings against MTM
and possibly EPTS as well.

5.  I understand Alan, Richard and John will be conferring further. Please
let me have any new instructions.

Thanks and regards

Matt

Matt


Jeff/Brenda:

Please authorize the following products for approval.  customers are
expecting to see them on 1/14.

 PG&E Citygate-Daily Physical, BOM Physical, Monthly Index Physical
 Malin-Daily Physical, BOM Physical, Monthly Index Physical
 Keystone-Monthly Index Physical
 Socal Border-Daily Physical, BOM Physical, Monthly Index Physical
 PG&E Topock-Daily Physical, BOM Physical, Monthly Index Physical

Please approve and forward to Dale Neuner

Thank you
Phillip


Confidential Settlement Material under CPUC Rule 51

Gas Accord II Rule 51 Parties:

Attached are the questions we noted at the October 11 and 12, 2000 Gas
Accord II Workshop, and our responses to these questions.  One set of Q&As
are on the Data Book (in Word).  Also attached is a replacement for Item 7
in the Data Book making slight corrections to the EG numbers.  The other set
of Q&As are responses to questions raised during the Cost of Service, Cost
Allocation and Rate Design presentations (in Excel).

We will provide hard copies of this information at tomorrow's Workshop.  If
you have questions, please let us know at any workshop or by e-mail.

Thank you for your participation in Gas Accord II and in the Workshops.

Frank     Ray
Attorney    Director
415-973-2776   415-973-3634
frl3@pge.com   rdw0@pge.com

Attachments

 <<GA II Data Book Q&A.doc>>  <<Data Book Item 7.xls>>  <<Response to 10-12
Workshop Questions.xls>>

 - GA II Data Book Q&A.doc
 - Data Book Item 7.xls
 - Response to 10-12 Workshop Questions.xls


Kate, could you help us on deal #595155.1 that is showing up as a purchase
from Enron Energy Marketing which Brooklyn dose not show any purchases.  This
deal is Short Term California desk.  We also have a small variance with sales
but Brooklyn and I still need to review.

Kate I looked for your e-mail and can not find the one you sent me telling me
what you look over.  Could you please resend it?  thanks.


Amy,

You mentioned that it sometimes takes a while for the shiftwork differential
to be credited.  Please note that I need to have it credited.  And, can I
expect my signing bonus to appear on my May 1st paycheck?

Thank you for your help,

Eric


Confidential:  For Internal Distribution Only

The purpose of this e-mail is to bring everyone in the loop on activities on the west desk that we are undertaking to preserve as much value in our book as possible.  I realize that our efforts to date have not been communicated to all internal people who need to know what we are doing.  My apologies for this.  Hopefully this e-mail will accomplish that goal.

A number of counterparties in the west have not yet terminated our deals and have benefited from our inability to procure power in the market to serve these deals.  As a result, we haven't been delivering on several contracts that are deep in the money.  Our counterparties have no motivation to terminate our contracts because such a termination would force them to write us a substantial check.  Instead, these counterparties have been happy to not receive high priced power from us and are filling their positions in the market at much lower prices.

We have taken the limited supplies that we are still receiving and delivering these limited supplies to the highest price sales contracts that we have.  We now have the ability to prepay for additional supplies in order to fulfill additional pre-petition obligations that have not yet been terminated that are in the money.  We have received approval from the Cash committee for purchases through December 27th (I think) and we will secure additional cash to continue on.

Here are the procedures as I understand them.  If you have any questions or modifications please me an e-mail or give me a call.

Cash Desk
Each cash desk needs to identify all transactions in its region that have not been terminated.
On a counterparty by delivery point basis we need to assess whether the weighted average of all near term (next day to next week) deliveries with that counterparty are in the money.
If the average of all transactions with that counterparty at a given location are in the money, we should submit a request for and endeavor to serve the entire portfolio of deals with that counterparty at that delivery point.  We are of the opinion now that we will not be able to cherry pick deals with one counterparty at the same location.
The cash desks should prepare a two week view of the positions that we will need to fill and an estimate (based on spot market prices) of the cash that we will need to serve these transactions to Steve Thome.
The cash desk should provide a daily list of prepay deals that have been done to John Postlethwaite via e-mail.
The cahs desk should provide a list of all historic prepays done so far to bring John current.

Marketing Desk
Steve Thome will coordinate the cash approval process for the west desk.
The marketing desk is responsible for lining up counterparties who will be willing to supply us on a prepay basis.
The marketing desk should direct any legal questions from sellers to Steve Hall/Christian Yoder.
Make sure that sellers fax a copy of the confirmation letter to Steve Hall/Christian Yoder at (503) 464-8058.
The marketing desk needs to work with the cash desk to buy power on a spot basis.  We don't necessarily care who buys it, but rather, we want to ensure that we receive the best price and that all purchases are communicated.
Whoever secures a supply needs to communicate the need for cash to Steve Thome.

Deal Entry
The new deals need to be entered in a manner that will be possible to settle.  After discussing the matter with Stacey White, she recommended entering the new deals in Enpower as zero price, non MTM, with an annuity equal to the prepay amount.
We should enter notes into Enpower indicating that these are prepay transactions.
This will allow settlements to match an annuity in Enpower with prepay out the door.  It will also prevent them from paying the counterparty twice.

I'm sure that I've missed something.  Let me know.

Regards,
Tim


thanks   mcs

From: James D Steffes@ENRON on 05/01/2001 09:07 CST
To: Jeff Dasovich/NA/Enron@Enron
cc: Mark Schroeder/LON/ECT@ECT

Subject: Re: Benefits of competition in electricity

Jeff -

Can you please keep Schroeder in the loop on all final documents that we
would use?  Europe is talking about how crazy Calif is and we need to make
sure that they are in the loop.

Jim

----- Forwarded by James D Steffes/NA/Enron on 01/05/2001 09:06 AM -----

	Mark Schroeder@ECT
	01/05/2001 08:44 AM

		 To: James D Steffes/NA/Enron@ENRON
		 cc:
		 Subject: Re: Benefits of competition in electricity

yes, send me copies of everything, I can sort out what we can use or should
pass on.   thanks  mcs

From: James D Steffes@ENRON on 05/01/2001 08:34 CST
To: Mark Schroeder/LON/ECT@ECT
cc:

Subject: Re: Benefits of competition in electricity

Mark --

FYI, we gave the following to the Bush Transition team about what is really
happening in California.  If there is anyone on your team (you?) who should
be getting copies of the material we generate, let me know so that we can
copy.

Jim

	Mark Schroeder@ECT
	01/05/2001 07:56 AM

		 To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, James D
Steffes/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, Margaret
Carson/Corp/Enron@ENRON, Rob Bradley/Corp/Enron@ENRON, govt affairs, Nicholas
O'Day/AP/Enron@Enron
		 cc: John Sherriff/LON/ECT@ECT, Joseph P Hirl/AP/ENRON@ENRON, Paul
Mead/LON/ECT@ECT
		 Subject: Benefits of competition in electricity

As we all deal with the fallout from the California scene, I wanted to make
sure everyone was aware of the recent report of the UK's National Audit
Office (a highly creible organisation, along the lines of the US's General
Accounting Office, even similar function; independent, too), saying that
household electricity bills had been cut by 750 million pounds (if you are a
Yank, multiply by 1.5 for dollars saved), since the industry was opened to
competition two years ago.  Of course, much of this may be attributable to
the divestment of assets in the oligopolistic generation sector, now
competitive, but it is a very fari example of the benefits of competition and
should be cited as a counterweight to those arguing that competition is a
"failed experiment".  Paul Dawson, head of our UK regulatory team, can
provide any necessary further insights./details.   mcs


Following please find the Daily EnronOnline Executive Summary.

<Embedded Picture (Metafile)>


For your viewing pleasure, the 2001 Customer Event photos can be found in the
following location:

P:\Photos\2001 Customer Event

Enjoy!


Bush Adviser Rove Owns Stock in Major U.S. Firms
The Wall Street Journal, 06/04/01

Saudi Arabia Sets Pacts With 9 Oil Firms
The Wall Street Journal, 06/04/01

Saudi Arabia in Pacts With Nine Global Oil Firms Energy: Deals to develop
natural gas fields and other projects, worth at least $25 billion, are first
major foreign funding in sector since 1975.
Los Angeles Times, 06/04/01

Enron is my spiritual teacher
The San Francisco Chronicle, 06/04/01

Gloom today, glut tomorrow
The San Francisco Chronicle, 06/04/01

INDIA: Rating firms may be judging India harshly-analysts.
Reuters English News Service, 06/04/01

INDIA: India rupee ends off lows, fwds close higher.
Reuters English News Service. 06/04/01

UK: Spectron trades UK's first post-NETA spark spread.
Reuters English News Service, 06/04/01

INDIA: Enron India lenders meet in Singapore on Tuesday.
Reuters English News Service, 06/04/01

INDIA: UPDATE 1-India's Prabhu says power reforms enter new phase.
Reuters English News Service, 06/04/01

Nigerian president slams US energy firm Enron for "poor performance"
BBC Monitoring, 06/04/01

India: India and Bush Administration: Beyond assumptions
Business Line (The Hindu), 06/04/01

Enron's Indian Creditors Seek to Salvage Dabhol Project
Bloomberg, 06/04/01

Enron Japan's Hirl on Power Deregulation: Commodity Comment
Bloomberg, 06/04/01

Bush Adviser Rove Owns Stock in Major U.S. Firms
By Jim VandeHei
Staff Reporter of The Wall Street Journal

06/04/2001
The Wall Street Journal
A4
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -- President Bush's chief political strategist owns hundreds of
thousands of dollars worth of stock in companies potentially affected by the
president's top legislative priorities, newly released federal records show.
Karl Rove, one of the president's most trusted advisers on almost every major
legislative initiative, owns between $100,000 and $250,000 of stock in Enron
Corp., Pfizer Inc., General Electric Co., Boeing Co. and Johnson & Johnson,
among other holdings. (Federal law requires public officials to report their
assets, income and debts in broad ranges only). All of these companies could
be affected by one or more of the policies or legislative initiatives on
which the president consults Mr. Rove: tax cuts, increased defense spending,
an industry-oriented energy policy and health-care reform.
Mr. Rove said yesterday that he has been waiting for several months for
approval from the Office of Government Ethics to sell all of his stock
holdings and roll the proceeds into a diversified account without having to
pay capital-gains taxes, as permitted by federal law. In the meantime, "I
have had to avoid being involved in matters that specifically and materially
affect my specific holdings," Mr. Rove said.
Mr. Rove said he filed his financial disclosure reports Dec. 30 and was later
informed by the Office of Government Ethics that he should sell all of his
stock holdings to avoid even the appearance of a conflict of interest.
But the government ethics office, which couldn't be reached for comment
yesterday, has yet to officially grant Mr. Rove a certificate of divestiture,
which would allow him to roll his proceeds into diversified accounts,
according to White House spokeswoman Anne Womack. It appears that Mr. Rove
has lost tens of thousands of dollars as a result of the delay because most
of his stocks have lost value since the beginning of the year.
Mr. Rove insisted that he has been careful to avoid any discussions that
directly affect companies he is invested in, as federal conflict-of-interest
laws require. But that can't be easy for Mr. Rove, widely regarded as one of
the most powerful and influential figures in the White House. Mr. Rove serves
as the president's top political adviser and runs the administration's
long-term strategy team. He is also the president's top liaison to outside
groups, including corporations.
"He's involved in virtually every decision that is made here," says a White
House aide. It is unclear how many times, if ever, Mr. Rove recused himself
from discussion inside the White House.
President Bush, already under fire from Democrats for his administration's
close ties to industry, is likely to draw more scrutiny as a result of the
new disclosures of financial links between top White House officials and
major U.S. corporations, especially energy firms.
The White House disclosed the personal finances of Mr. Rove and several other
top administration officials at the behest of the media. It appears that as a
result of an administrative backlog, Mr. Rove is the only member of the
senior staff who hasn't been given the green light to sell his stock,
according to a White House aide.
The reports show that Mr. Rove was one of several White House officials with
a financial connection, past or present, with Enron and other energy
companies. Larry Lindsey, the president's top economic adviser who helped
draft the energy plan, received $50,000 from Enron in 2000 for consulting
work he did for the company, the documents show.
Lewis Libby, chief of staff to Vice President Dick Cheney, who was chairman
of the White House task force that wrote the energy plan, recently sold tens
of thousands of dollars of stock in Enron and other energy companies,
including Texaco Inc., Exxon Mobil Corp. and Chesapeake Energy Corp. It is
unclear when the transaction went through.
Clay Johnson, director of presidential personnel, reported holding between
$100,000 and $250,000 in El Paso Energy Partners LP. And National Security
Adviser Condoleezza Rice had $250,000 to $500,000 worth of Chevron Corp.
stock and was paid $60,000 last year for her work as a director at the
company. Mr. Rove disclosed smaller holdings in BP PLC and Royal Dutch/Shell
Group.

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

International
Saudi Arabia Sets Pacts With 9 Oil Firms

06/04/2001
The Wall Street Journal
A17
(Copyright (c) 2001, Dow Jones & Company, Inc.)

JEDDAH, Saudi Arabia (AP) -- Saudi Arabia signed agreements with nine oil
companies yesterday, a move that marks the first major foreign investment in
its energy sector since the industry was nationalized in the 1970s.
The expected deal, valued at $25 billion at least, involves the development
of three natural-gas fields in the kingdom, as well as a number of related
power plants, transmission pipelines and water-desalinization projects.
Exxon Mobil Corp., the world's largest publicly traded oil company, is the
lead manager on two of the projects, including the $15 billion Ghawar Core
Venture 1 project. It also will lead the Red Sea Coast Core Venture 2
project. Royal Dutch/Shell Group was chosen to lead the Shaybah Core Venture
3 project.
The Western companies will help Saudi Arabia convert its utilities from oil
burning to natural gas, which would free up more of the kingdom's crude oil
for export.
The other companies selected were BP PLC, TotalFinaElf SA, Conoco Inc.,
Phillips Petroleum Co., Occidental Petroleum Corp., Enron Corp. and Marathon
Oil Canada Inc.
Saudi Arabia's state-owned energy company, Saudi Aramco, will be an equity
owner in the projects.
Saudi Arabia nationalized its oil fields in 1975 after tension caused by the
Arab oil embargo against the West that began two years earlier, and it closed
its energy exploration and production sectors to foreign investment.
Although locked out of the production of energy, Exxon Mobil has $5 billion
in refining and petrochemical joint ventures in the country, and it said it
is also the largest foreign purchaser of crude oil and other hydrocarbons
from Saudi Aramco.

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

Business; Financial Desk
Saudi Arabia in Pacts With Nine Global Oil Firms Energy: Deals to develop
natural gas fields and other projects, worth at least $25 billion, are first
major foreign funding in sector since 1975.
From Associated Press

06/04/2001
Los Angeles Times
Home Edition
C-2
Copyright 2001 / The Times Mirror Company

JIDDAH, Saudi Arabia -- Saudi Arabia signed agreements with nine
international oil companies Sunday, a move that marks the first major foreign
investment in its energy sector since nationalizing the industry in 1975.
The deals, worth a total of $25 billion or more, involve the development of
three natural gas fields in the kingdom and a number of related power plants,
transmission pipelines and water desalinization projects.
The Western companies will help Saudi Arabia convert its utilities from
oil-burning to natural gas, which would free up more of the kingdom's crude
oil for export.
Exxon Mobil Corp., the world's largest publicly traded oil company, is the
lead manager on two of the projects, including the $12-billion-to-$16-billion
Ghawar Core Venture 1 project. It also will lead a second core project. Royal
Dutch/Shell was chosen to lead a third project. The last two projects have a
value of $7 billion to $10 billion each, Prince Saud al Faisal told
reporters.
The other companies selected were BP of Britain, TotalFinaElf of France,
Conoco Inc. of Houston, Phillips Petroleum Co. of Bartlesville, Okla.,
Occidental Petroleum Corp. of Los Angeles, Enron Corp. of Houston and
Marathon Oil Co. of Houston.
Harry Longwell, director and senior vice president at Exxon Mobil, said the
financial terms of the deal are still being discussed. But he said his
company is ready to begin the work when the final contracts are signed.
"The Saudis' expectations are extremely aggressive," Longwell said. "It's a
very tight schedule and in recognition of that, the ability to get this done
is one of the key reasons we were chosen to lead two of these ventures. We
already have a senior management team in place and are ready to go to work
immediately."
Saudi Oil Minister Ali Ibrahim Naimi said the companies are expected to
profit on returns from the exploration and development of gas fields with
more than 15% of the investment cost.
Saudi Arabia's state-owned energy company, Saudi Aramco, will be an equity
owner in the projects.
Saud said if the companies discover oil, they will be compensated and the
fields will be repossessed by Saudi Arabia.
Saudi Arabia nationalized its oil fields in 1975 and closed its energy
exploration and production sectors to foreign investment.
Although locked out of the production of energy, Irving, Texas-based Exxon
Mobil has $5 billion in refining and petrochemical joint ventures in the
country and is the largest foreign purchaser of crude oil and other
hydrocarbons from Saudi Aramco.

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

DAILY DATEBOOK
JON CARROLL
Enron is my spiritual teacher
Jon Carroll

06/04/2001
The San Francisco Chronicle
FINAL
E.10
(Copyright 2001)

THE BUDDHA SAYS that we take wisdom where we find it. Perhaps the Buddha does
not say that, but it's not a bad idea anyway. The Buddha would have said it,
maybe, had he not been saying the other things.
Our enemies can teach us lessons. Our adversaries can make us stronger. They
can be consumed with greed and contempt, their very breath can be toxic, and
yet their actions can open upward-flowing paths.
Take Enron, the energy company, or Chevron, another energy company, or El
Paso Natural Gas, yet another energy company. These organizations are the
minions of Satan. They pillage and they profit. They are in the ascendant.
Their enemies fall before them like cordwood. Ordinary citizens cower and
meekly hand over tribute.
And yet we thank them. We send our investigators after them and we pray that
their executives land in jail, but we thank them. They have shown us the
nature of our enslavement. They have defined the nature of our sloth.
We have believed the Big Lie. We have believed in the free lunch. We have
trusted those who would pander to us. We have eaten energy in great dripping
gobs. Did we know it was not infinitely renewable? Oh yes. Did we understand
that energy companies could create "shortages" whenever they wanted merely by
closing plants for "maintenance"? You bet we did. And did we confuse the
energy companies with charitable organizations and/or alchemists able to
repeal the laws of nature? We did not.
But it was more convenient to forget those things, and so we did. We have
busy lives. We must do the things we must do. The infrastructure is
everywhere crumbling, and we are patching it up ourselves. We are paying
bureaucrats with taxes, but the bureaucrats are inadequate, so now the spirit
of volunteerism is much praised.
Volunteers are people who do jobs that other people are being paid to do but
don't.
AND SOMEHOW, EVEN in a society as relentlessly materialistic as this one, we
forgot about our own checking accounts. Already seduced by the idea that
credit card debt is good clean fun, we decided to waste a lot of money using
energy we didn't need.
I'm not talking about using a washing machine instead of going down to the
river and beating your clothes with small stones -- I'm talking about washing
machines with quarter-full loads and settings far too powerful for the task
at hand. Right? Lights burning in unoccupied rooms. Appliances plugged in but
never used.
We pay for it. We send our wonderful money straight to the largest villains
in American commerce because we are too stupid to do anything else. You
wonder why they have contempt for us. You wonder why Dick Cheney believes he
can fool all of the people all of the time. Because he has.
Look: Last week the secretary of commerce suggested means-testing Social
Security -- that is, means-testing a pension plan. You gave us the money, we
kept it for 40 years, now -- prove that you need it!
Why did he suggest that? Because he can! Why did PG&E demand additional
compensation for its executives, who are moral dimbulbs and social criminals
under any fair definition? Because they can get away with it! They will get
away with it! You watch!
I AM NOT saying that we have no one to blame but ourselves. There are active
villains, and there are people who allow villainy to occur. Everyone in a
corrupt system is corrupt. The fools are the ones who don't end up with any
extra money.
We are the fools. If we understand our foolishness, we begin to be wise. We
send lovely bread-and-butter notes to Enron -- once we were blind, but now we
see. And we await developments, or create them.
--------------------------------------------------------
It would be foolish to mention SUVs. When the brain is ready, the ear will
hear.

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

EDITORIAL
WASHINGTON INSIGHT
Gloom today, glut tomorrow
Carolyn Lochhead

06/04/2001
The San Francisco Chronicle
FINAL
A.19
(Copyright 2001)

WHAT GOES UP usually comes down. And few industries are more prone to boom
and bust than energy.
Imagine the news stories a few years from now: "Crisis hangover -- energy
stocks sink as prices plunge; But California consumers still stuck with high
bills."
"The energy industry is suffering its worst downturn since the supply glut of
the 1990s, as dozens of big new power plants come on line, and the
just-completed Alaskan gas pipeline sends natural gas prices to their lowest
levels in six years.
"The one bright spot for Texas generators is California, where consumers are
locked into long-term contracts for wholesale electricity that the state
signed at the peak of its blackouts in the summer of 2001.
"Sacramento lawmakers have appealed to President Daschle to help get the
state off the hook, arguing that California will never claw its way out of
its economic slump if businesses continue to flee to states where energy is
cheap.
"But top Enron lobbyist Gray Davis, a former governor of California, warned
Daschle that suppliers would have little choice but to go to court to enforce
the contracts the state signed."
Washington and Sacramento are agog with the energy crisis and bursting at the
seams with plans to fix it. But the one thing no one - - even
environmentalists -- suggests is letting high energy prices discourage energy
consumption or encourage new supplies.
"To economists, letting the price rise is the solution," said Paul Portney,
president of Resources for the Future, a Washington think tank. "To elected
representatives, having the price go up is the problem."
Political memories tend to be selective and short. But it was the energy glut
of the 1990s that contributed to California's blackouts, $3 gasoline and
$400-a-month heating bills. Likewise, high prices are now laying the seeds of
their own destruction.
As a story in the New York Times noted, an energy investment boom "promises a
cyclical increase in supplies that is expected to stabilize or reduce prices
in coming months, many industry executives and private analysts say."
Through much of the 1990s, there was a glut of energy. Fuel of all kinds was
really cheap.
How cheap? Adjusted for inflation, as cheap as in 1949, economists calculate.
Energy is the oxygen of the economy, and rock-bottom prices contributed to
the long economic boom. But low prices also caused energy production to slump
and consumption to soar.
People ditched their economy cars for SUVs. Houses got bigger, ceilings got
higher and kitchens sprouted industrial stoves with enough BTUs to melt
aluminum. Stores, offices and homes turned into summertime refrigerators.
Low prices discouraged energy development.
"Oil was so cheap for so long, that people were selling their refineries,"
Portney said. "You had virtually no exploration for new natural gas when
prices were at $2 a BTU."
As demand soared and supply fell, prices rose. Profits have grown so robust
that green fuels, such as biomass and wind, are becoming economically viable.
The oil industry is booming. Refineries are expanding. The long-delayed
construction of a natural gas pipeline from Alaska now looks likely. So many
power plants are under construction that the market may be flooded with as
much as 200,000 new megawatts by 2004.
Investments in energy efficiency -- from new-age superconducting transmission
wires to better light bulbs -- are suddenly looking attractive for the first
time in decades.
"High prices will dampen demand, high prices will encourage supply, and will
encourage people to make better use of what they've got," said Robert Ebel,
director of energy for the Center for Strategic and International Studies.
"So we're starting on the down slope. We're not very far down. When prices
start to decline, I can't say how far they will go. But they will decline,
because that's just the law of supply and demand. Prices decline, demand
starts to creep up again, there's less incentive to add to supply, and here
we go again."

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

INDIA: Rating firms may be judging India harshly-analysts.
By Vidya Ranganathan

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, June 4 (Reuters) - Analysts have reacted with surprise to last week's
decision of ratings agency Fitch to cut India's sovereign ratings outlook to
negative from stable, and say there are no grounds to downgrade the country.
Fitch, which rates India's foreign currency obligations at BB-plus, a notch
above Moody's Investors Service and Standard & Poor's, cited concerns about
fiscal policy, privatisation and deterioration in foreign investment climate.
However, economists speculated it could either be on account of Fitch
adjusting its ratings in line with other global agencies, or a fallout of
U.S. energy giant Enron Corp's threat to exit an Indian power venture over
payments problems.
Moody's and S&P said on Friday they have not revised ratings or outlook but
are disappointed with fiscal reform efforts.
Local currency and stock markets reacted nervously to the announcement, but
economists said most concerns were exaggerated.
"When the direction of reforms is positive and government flows are
improving, the outlook should not change," said Mohan Nagarajan, chief
economist at local rating agency CARE Ltd.
Even if the provocation for the rating review was the Enron episode, analysts
said the problems were specific to the power sector and will not affect the
robust foreign investment the country has been receiving.
"Enron was a bad deal, made on unreasonable terms in the first place and does
not reflect the ability of the government to pay its dues," said an economist
with a U.S.-based fund.
Some of the confusion arises from the various ratings assigned to India.
Moody's has retained a positive outlook on its Ba2 rating since late 1999,
while S&P has a stable outlook and a BB rating.
CONCERNS OVERSTATED
Analysts said none of the factors Fitch cited had deteriorated in the past
year, since it first rated India.
Fitch said India's fiscal-monetary mix was unfavorable, real interest rates
were high and there was the risk of a debt trap.
India marginally overshot its budgeted fiscal deficit in 2000/01
(April-March) to 5.2 percent of GDP, down from the previous year's 5.6
percent.
But laws to control government spending are awaiting parliament's approval,
there are incentives for disciplined state governments and a determined
effort at privatising state-run firms has begun.
Burgeoning fiscal deficits have persisted for a decade and public debt at 60
percent of GDP is high, but at six percent annual growth, India is one of the
fastest expanding economies in Asia.
"In terms of external liquidity, India is much stronger than its BB+ rating
while even its public debt to GDP ratio is lower than that of some Asian
nations," said P.K. Basu, chief economist for South East Asia at Credit
Suisse First Boston, Singapore.
Foreign investment has been pouring in - portfolio flows at $2.2 billion so
far in 2001 are at record levels and compare with $1.56 billion for the whole
of 2000 - and foreign exchange reserves are strong at $42.8 billion.
Interest rates and yields have also dropped, with the Reserve Bank of India
(RBI) adopting an aggressive easing stance this year to prop the slowing
economy, and inflation is benign.
"The hardest initial steps are being taken and there is still a lot of
inertia, but soon there will be a willing audience and reforms can progress
faster," CARE's Nagarajan said.
But critics said the changes were still very superficial and structural
reforms that would spur long-term growth and demand were lacking.
"What the rating agencies have emphasised is fiscal consolidation, which
means better revenue streams, efficient expenses, user charges for public
utilities...we promised these three years back and haven't moved very far on
those," said Saumitra Chaudhari, economist with local rating agency ICRA Ltd.
"We still do not have a securities bill, mature debt market and our banks
have not cleaned up,".

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

INDIA: India rupee ends off lows, fwds close higher.

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, June 4 (Reuters) - The rupee ended unchanged on Monday, recovering
from the day's low after a large European bank sold dollars, dealers said.
It had slipped to a low of 47.04 per dollar in early deals on dollar
purchases by a jewellery importer.
The rupee ended at steady at d47.01/02 per dollar.
Dealers said there was no impact of Friday's comments from international
rating agencies which had raised concerns over continuity of foreign
investment and dragged shares lower.
The currency recovered from lows around 47.085 on Friday, reacting to
international rating agency Fitch's revision in the outlook for India's
ratings on sovereign debt to negative from stable, citing worries about
fiscal policy, privatisation and deterioration in the country's foreign
investment climate.
Later, rating firms Moody's and Standard & Poor's (S&P) said they were
disappointed over the government's reform effort.
Moody's also raised a concern about India's Maharashtra state utility's
ongoing tussle with Houston-based Enron Corp and said: "the dispute indicates
that India's government may not be willing to live up to its contractual
obligations".
It added this would further deter foreign direct investment from coming into
the country.
The comments weighed on bond prices, which extended losses on Monday, and in
turn led to paying in dollar forwards.
"After a long gap, there was corporate paying interest in forwards today," a
dealer with a state-run bank said.
The six-month forward ended at an annualised 5.10 percent compared with
Friday's 4.95.
For a speed guide to Reuters treasury coverage, ((Bombay Treasury Desk, +91
22 265-9000 fax +91 22 264-1699, vidya.ranganathan@reuters.com)).

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

UK: Spectron trades UK's first post-NETA spark spread.

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, June 4 (Reuters) - Energy brokerage Spectron said late on Friday it
had traded the first brokered gas-electricity arbitrage, or "spark spread",
deal in the UK since the launch in March this year of new electricity trading
arrangements (NETA).
"Now that liquidity has returned to the electricity market post NETA, such
transactions are expected to become more common...", said Spectron in a
statement.
The deal was concluded between UK utility Powergen and U.S. energy group
Enron .
Spectron said the trade, covering winter 2002, was for 60 megawatts of
electricity at 21.42 pounds a megawatt hour and for 100,000 therms of gas at
24.85 pence a therm.
The winter period specified in the deal ran from October 1 to March 31.
For the electricity, one day was defined as 2300 hours to 2300 hours.
For the gas, one day was 0600 hours to 0600 hours.
The deal comes as the industry moves to create standard terms and conditions
for spark spreads.
Powergen is due to meet in mid-June with other traders, including Aquila
Energy , for talks aimed at agreeing standard terms.
"It is hoped that the market will soon establish standardised documentation
leading to a standardised product that will help promote liquidity in one or
more levels of efficiency," said Spectron.

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

INDIA: Enron India lenders meet in Singapore on Tuesday.
By Sriram Ramakrishnan

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, June 4 (Reuters) - Lenders to Enron Corp's troubled Dabhol Power
Company begin a two-day meeting in Singapore on Tuesday to try and settle
differences over continued support to a controversial $2.9 billion power
project in India.
Representatives of some of the world's largest banks like Citibank , ABN AMRO
, and Bank of America, will be at the meeting. Indian lenders like the
Industrial Development Bank of India , State Bank of India and ICICI will
also participate.
Market analysts speculate that the meeting will attempt to forge a joint
stand on supporting the project which now produces 740 MW of power and is
slated to increase it to 2,184 MW shortly in its second phase.
But it comes against a backdrop of rising tension between Dabhol and the
Indian state utility, the Maharashtra State Electricity Board (MSEB), which
is the sole buyer of Dabhol's electricity.
Indian lenders, who have lent the bulk of the funds to the plant, want to
continue supporting the project.
But they are being opposed by offshore lenders who want to withdraw their
loans. Loans of around $638 million of the offshore lenders are covered by
guarantees provided by Indian institutions.
The Indian lenders, fearing for their profitability if the foreign banks pull
the plug, plan to oppose any such move.
But they have been forced on the backfoot by MSEB's decision last week to
stop buying power from Dabhol and terminate its 1995 contract with the
company under which it agreed to lift the entire output.
The MSEB has complained that Dabhol produces costly power while Dabhol has
blamed MSEB for defaulting on payments worth $48 million.
Last month, Dabhol issued a preliminary notice to terminate its contract to
sell power. It has also filed for arbitration in London. This provoked MSEB
to haul Dabhol before a local regulatory body, the Maharashtra State
Electricity Regulatory Commission (MERC), which issued a temporary order
staying the arbitration proceedings.
The dispute has already affected India's image among foreign investors.
Last week, global rating agency Moody's expressed concern over slippage in
the Indian government's reform programme and cited the Enron's dispute as an
example that the country may be losing credibility with foreign investors.
"The dispute indicates that India's government may not be willing to live up
to its contractual obligations. As a consequence, this would further deter
foreign direct investment from coming into the country," Moody's said.
India's federal Power Minister Suresh Prabhu tried to dispel those fears in
an interview with Reuters on Sunday.
"India is always in favour of making sure that international contracts are
respected," he said. "There is no need for concern." ($1 = 47 Indian rupees).

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

INDIA: UPDATE 1-India's Prabhu says power reforms enter new phase.
By Clarence Fernandez

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, June 4 (Reuters) - India's reforms of its sputtering power sector
have entered a new phase, with plans afoot to free up private supply,
overhaul debt-ridden state utilities and recraft tariffs, Power Minister
Suresh Prabhu told Reuters.
With investors' fears fanned by a squabble between U.S. energy giant Enron
Corp and a local utility, Prabhu said in an interview late on Sunday that
India is standing behind international contracts.
"Sanctity of contracts has to be kept," Prabhu said.
The row began late last year when the utility in western Maharashtra state
defaulted on payments of $48 million to Dabhol Power Company, 65 percent
owned by Enron. The 2,184 MW power project is India's largest foreign
investment, at $2.9 billion.
Prabhu has vowed to take Indian reforms in a new direction.
"Absolutely," he said in reply to a question whether India's reforms have
entered a different phase. The Power Ministry will now also focus on power
distribution, he added, besides its early preoccupation with generation
needs.
"In India unfortunately for the last 10 years...reforms policy was skewed in
favour of generation," he said. "We never really realised that distribution
is the more important part of the process."
Prabhu added, "We have now decided we will make enough structural changes in
distribution so that at the end of distribution enough investment is made."
CHARTERED ACCOUNTANT
A chartered accountant, Prabhu hails from the verdant regions of India's
western coastal strand, and chaired a co-operative bank that was one of the
country's largest, in terms of deposits, before his foray into politics.
An errant lock of hair straying across his forehead, Prabhu eschews the
Indian politician's traditional uniform of starched white handspun cotton for
the shirtsleeves and trousers preferred by the professionals who have entered
government, and whom local media call "technocrats".
Prabhu said India has decided to allow private producers to sell power direct
to consumers, lifting curbs that have hobbled the country's decade-old reform
effort.
He said the question of power affordability had spurred him to ask India's
states to permit third-party sales of power, which analysts have called a
stumbling-block for foreign investment.
"They cannot force a generator to sell power only to the SEBs, and that's a
major change we are trying to make," Prabhu said, referring to the states.
SEBs or state electricity boards are owned by the state governments, and
supply power to most of India.
India estimates that 100,000 MW of fresh capacity will have to be installed
over the next 12 years to meet its power needs. Most of the $200 billion in
funds that will be required will have to come from foreign private
investment.
But India's spotty reform record over the last decade has made investors
wary. Bureaucratic procedures, legal delays and political wrangling have held
up reform moves.
RATING REVISED TO NEGATIVE
Last week global rating agency Fitch revised India's sovereign rating outlook
to negative from stable, citing fiscal concerns, the slow pace of
privatisation and deterioration in the country's foreign investment climate.
Competing agency Moody's sees signs of slippage in the reforms, and Standard
& Poor's has expressed worries over India's budget deficit.
Prabhu said he wants to overhaul state power utilities by introducing
standard accounting policies, cutting transmission and distribution losses to
15 percent, and tackling crushing debt, thus helping to lure foreign
investment into the sector.
The poor financial health of the utilities, expected to run up combined
losses of about $6 billion in the 2001/02 fiscal year, has proved a hurdle in
efforts to draw private investment.
Prabhu said an expert panel examining ways to restructure SEB finances -
looking at technical, commercial and tariff issues - is expected to report
within a few weeks.
"For the first time we will be preparing commercial data which is
internationally accepted. We will be preparing technical data which is
internationally appreciable. And thirdly, we'll be creating an information
base which will be created by experts and then made available to the states,"
he said.
The utilities' transmission and distribution losses run to up to 25 percent
of the electricity they generate, compared to a figure of about eight percent
internationally, he said.
Prabhu wants to trim this to about 15 percent within two or three years.
"In the case of India, I am willing to accept a figure of 14 percent to 15
percent, because to bring it below that will be technically feasible but
commercially unviable," he added.
Other steps to tone up power generation include attempts to link the eastern
region with the rest of India, efforts to boost plant load factors through
modernisation of equipment, and to persuade people to use energy more
efficiently.
Prabhu said he is building political will to support these moves through a
programme to tell consumers why they can no longer get power cheap, or even
free, as many did in the past. ($1=47 Indian rupees).

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

Nigerian president slams US energy firm Enron for "poor performance"

06/04/2001
BBC Monitoring
Source: The Guardian web site, Lagos, in English 4 Jun 01/BBC Monitoring/(c)
BBC

Text of article by Francis Obinor entitled: "Obasanjo chides Enron on Lagos
power project"; published by Nigerian newspaper The Guardian web site on 4
June
For failing to live up to expectation of the Nigerian government and the
people as regard its role in the Independent Power Project (IPP) initiated by
the Lagos State government two years ago, Enron, the American firm got a hard
knock from President Olusegun Obasanjo at the weekend [2-3 June].
In his conclusion, Obasanjo accused Enron, a major player in the electricity
project, of poor performance and bad faith. Ostensibly angry at the delay in
the project's full take-off and the 30 MW recently connected to the national
grid from the scheme, the president on the American Cable News Network (CNN)
declared: "Enron has played a dirty game on us. Dirty game in two ways."
Beside putting up an exorbitant price, the company according to the
president, also failed to comply with the terms of the contract. Continuing,
Obasanjo said: "The price at which they (Enron) have tried to sell power to
us has been very exorbitant. Two, what they told us they would do, they have
not done."
While refusing to disclose the firm's charges, Enron Vice-President of
Marketing John Ambler said the primary objective of the company was to get
the project on stream. "We have a project that is very close to coming on
line," he said, stressing that the company's desire is to see the project
work effectively in Nigeria, especially in Lagos. He added that Enron is
committed to the IPP and assured Lagosians that they would soon begin to feel
the impact.
The state government brought forward the June 2001 deadline it set for the
commencement of the first phase of the project when it fired the first 30 MW
of electricity to the national grid two weeks ago.
At the Government House on 23 May, Governor Bola Tinubu said his
administration and the contracting firm felt that there was no harm in
bringing the date forward and assured that another 30 MW would be added soon.
He noted that, contrary to expectations that the project would cover the
entire state at a go, it would be in phases and the focus for now would be
industrial consumption. "The concentration for now is not as private homes,
we would soon get there," Tinubu assured.
The controversial IPP programme, which the federal government had at one time
been accused of frustrating, has suffered several setbacks, including Enron's
initial plan to sell its shares to AES, another American company. Last April
was originally fixed for the project's take-off but the failure of Trevi, a
construction company in charge of transmitters, caused a shift in the date.

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

India: India and Bush Administration: Beyond assumptions

06/04/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

SOON after Mr George W. Bush Jr. won the US elections, Indian observers
proclaimed quickly that a Republican administration bodes good for India. A
Republican administration was expected to not pester India about human rights
violations in Kashmir, not force it to sign the CTBT, and get tougher with
China.
Mr George Bush's decision to "drop by" the External Affairs Minister, Mr
Jaswant Singh's meeting with the American National Security Advisor, Ms
Condoleezza Rice, seemed to somehow confirm this false sense of euphoria.
This narrow thinking fails to understand the drivers of Republican ideology.
The reality is the Republicans care about a range of issues that will force
the BJP Government to make some difficult decisions.
Take the first issue of human rights violations in Kashmir. It is true there
are many isolationists in the Republican Party who, probably, do not care
about human rights violation in Kashmir so long as it does not affect them,
and is not happening in their backyard. But there is another powerful force
in Republican politics - the religious wing. This includes powerful members
of the US Cabinet such as The Attorney-General, Mr John Ashcroft, who are
Christian fundamentalists.
Mr Bush himself claims to be a 'born again Christian'.
The religious right is rarely interested in foreign policy; it mostly
concerns itself with moral and social issues such as abortion and teenage
pregnancy. But the few times it does intervene, it is when it feels a country
is "persecuting Christians". And when it does intervene, no Republican
administration dares cross it.
For instance, China is periodically identified as a country that persecutes
Christians. Christian missionaries and ministers are routinely harassed and
imprisoned because they are trying to spread their religion. Because of this
issue, Republican members of the Christian right in Congress have all but
declared a religious war on China, routinely opposing any attempt to improve
relations - including trade relations - with that country.
India, as an emerging power, is more carefully watched, and frequently
mentioned in the American press. Stories of Christian missionaries being
burnt alive and nuns raped are attributed to "elements associated with the
Hindu fundamentalist ruling party". In its latest human rights report, the US
State Department noted these acts with concern.
The Pope's mention of these issues to the Prime Minister, Mr Atal Bihari
Vajpayee, was also noted in the American press. India is, perhaps, half a
step away from being branded as a country that "persecutes Christians".
A self-professed born-again Christian like Mr George Bush would quickly take
up the Christian right's cause, trumping all other bilateral issues. Human
rights may not matter to the isolationists, but Christian, and to a lesser
extent Jewish, religious freedom matters tremendously to a Republican
administration.
The second fallacy was that since the Republicans in Congress did not pass
the Comprehensive Test Ban Treaty, they would not force other countries to
pass the CTBT either. But why are the Republicans are opposed to the CTBT.
The opponents of the CTBT feel that it fails to safeguard American security.
They frankly care little about Indian security. They would love to be able to
restrict India's ability to test and use its weapons. To them, nuclear
weapons not in American hands translates into an unsafe world. Unless India
manages to convince the Republicans otherwise, the Republican administration
is likely to tighten the anti-proliferation screws on India.
The third fallacy relates to a tough, long-term strategic re-alignment the
Bush Administration will demand of India. Mr Bush's foreign policy-makers are
unreconstructed 'Cold Warriors'. In the post-Cold War era, they are
desperately "searching for an enemy". They appear to have settled on China as
"the next enemy". Their next step is to search for "allies"
who rarely challenge their views. Thinkers in Washington and New Delhi
believe that India and the US are "natural allies". But such a decision has
an enormous range of long-term consequences for India.
To discuss just a few: Most of the Indian military's equipment comes from
Russia and the former Soviet Union. Allying with the US will be seen by the
Russians as abandoning them, and this could have an enormous impact on the
legacy military equipment. Recent noises from the Foreign Ministry suggest
India is also eager about Mr George Bush's proposed missile defence
programme. But this technology is far from proven, and during the decade over
which it may be developed (if it gets past Congress), China will most
certainly develop many nuclear weapons. These may, primarily, be a deterrent
against the US, but it will force India into an arms buildup it can barely
afford.
The Americans are reserving their missile defence system for their "closest
allies". India today is neither fish nor fowl - not quite a threat, but not
quite an ally either. It is unlikely that India will be able to convince the
Americans to give it the defence system.
Even if the Americans agree to sell it to India, it could never afford the
sticker price. So, before it rejoices at the notion of anti-China hawks in
the White House, let India ponder over the unexamined consequences.
The final issue is one that may precipitate in the very near term.
Enron and Maharashtra find themselves in a dispute that neither wants to
lose, and that appears to be rapidly getting shriller. Mr George Bush's
background is as a Texas oilman - and he is widely accused in the US of being
beholden to the interests of the energy industry.
In fact, they were among the biggest "contributors to his campaign".
The Enron Chairman, Mr Kenneth Lay, is a friend of Mr Bush's, and was
seriously considered for a job in his Cabinet. He is so well connected that
he was recently accused of influencing who is appointed by the White House to
regulate the energy industry. In the near term, Mr Bush could quite possibly
lean heavily on New Delhi to "make sure that Enron's interests are not
neglected". If New Delhi does not respond to his satisfaction, his opinion of
India, and consequently, his administration's dealings with the country, are
likely to be coloured far more than we think.
Giridhar Srinivasan

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

Enron's Indian Creditors Seek to Salvage Dabhol Project
2001-06-04 08:41 (New York)

Enron's Indian Creditors Seek to Salvage Dabhol Project

     Mumbai, June 4 (Bloomberg) -- Indian banks that loaned money
to Dabhol Power Corp., the local unit of Enron Corp., will try and
persuade their international counterparts to keep alive the $3
billion project at a meeting of lenders in Singapore tomorrow.
    The two-day meeting will be the first between the two groups
of bankers since they met in London on April 24-25 to discuss an
escalating dispute on power prices that has pitted Enron against
the Maharashtra State Electricity Board, Dabhol's only customer.
     ``We will discuss how we can go about resolving the
problem,'' R.S. Agarwal, executive director at Industrial
Development Bank of India, or IDBI, said. IDBI is the biggest
lender to the Dabhol project.
     The outcome of the Singapore meeting, to be held in the
offices of ABN Amro Holding NV, one of the biggest international
lenders to the project, will be crucial to the banks, which have
loaned as much as $2 billion to Dabhol.
     Indian banks fear the Maharashtra State Electricity Board's
decision to stop buying power from Dabhol may strengthen
international lenders' resolve to terminate the project and invoke
government guarantees to recover their loans.
     ``Foreign lenders want to close the (Dabhol) chapter,'' said
Pradyumna Kaul, an activist with Enron Virodhi Andolan, a non-
government organization opposed to the project. ``They are eager
to call in their loans, even if it means taking a 10 to 15 percent
cut, rather than spend more on supervision and legal expenses
while watching the saga linger.''
     Local banks such as IDBI are most at risk as the Maharashtra
and federal governments have guaranteed only foreign banks' loans
of about $600 million to the venture.
     IDBI alone has exposure totaling 21.58 billion rupees ($460
million) to the project, including 15.28 billion rupees in
guarantees.
     Foreign lenders such as ABN Amro, Citibank N.A., a unit of
Citigroup Inc., Bank of America and Credit Suisse First Boston in
April approved Dabhol's decision to begin termination of its power
supply contract with the board. They are in favor of canceling the
project.
     India's government risks having to pay 170 billion rupees in
fines, resulting from guarantees it has offered on payments and
loans, if Enron pulls out of the project.

                             The Fight

     Maharashtra State Electricity Board Wednesday stopped buying
power from Dabhol as the dispute escalated. The board on May 24
told Dabhol Power Co. it was canceling its power purchase
contract, six days after Dabhol gave the board notice it was set
to pull out of the project because of the six-month dispute over
bills owed by the board.
     ``The MSEB's move has complicated the matter. We did not
expect MSEB to do this,'' Agarwal at IDBI said last week.
     Dabhol, 65 percent owned by Enron, and the board are in
dispute over 3 billion rupees in unpaid bills for December and
January. Others bills through March have been paid.
     The board has refused to pay the December and January bills,
saying they should be lowered to reflect a 4 billion rupee penalty
the board imposed on Dabhol for not supplying power at full
capacity on Jan. 28.
     The dispute Thursday prompted debt-rating company Fitch to
change its outlook on India to ``negative'' from ``stable.'' Fitch
said the climate for foreign investors has deteriorated.
     ``The dispute indicates that India's government may not be
willing to live up to its contractual obligation,'' the Economic
Times quoted Kristin Lindow, India analyst at Moody's Investors
Service, as saying. ``As a consequence, this would further deter
foreign director investment from coming into the country.''
     Moody's and Standard & Poor's have stable outlooks on the
country's sovereign rating. S&P has an investment grade rating of
``BBB'' on the country's sovereign debt. Moody's, like Fitch,
rates India's debt as junk at ``BB2.''

Enron Japan's Hirl on Power Deregulation: Commodity Comment
2001-06-04 06:29 (New York)

     Sydney, June 4 (Bloomberg) -- Joseph Hirl, chief executive of
Enron Corp.'s Japanese unit, Enron Japan Corp., comments on the
outlook for deregulation of Japan's electricity industry. He spoke
at the Coaltrans Asia conference in Sydney.

On Japanese government policy:
     ``The government does have a strong commitment to
deregulation, but there are some significant policy concerns''
including a ``greater than 80 percent reliance on imports'' of
energy.
     ``The market has been open a bit over a year, however not
much has happened. No genuine competition exists under the current
system. The companies there recognize that it will happen. It's
inevitable.
     ``The level of competition in Japan now is similar to the
U.S. in 1994-95, or Europe in 1996-97. Prices are about 400
percent higher than the U.S.
     ``To put it in perspective, I won't give the name of this
large chemical company, but it consumes about 600 megawatts. If
you compare that business with a company that's just like it in
Houston, Texas, the difference would be about $250 million a year
in the cost of electricity.
     ``For such an export-led economy, that's a difficult
situation to be in, and it's contributing to the overall malaise
in the economy.''

On the likelihood of a California-style electricity crisis in
Japan:
     ``Despite exploitation of California by the utilities, METI
(Ministry of Economy, Trade and Industry) and others recognize it
was a problem of design, not competition'' in California.


Wait until Louise gets back.  These should not be big.  ie 50 and 125 at most.  I'm not even sure that Irvine is the right guy in the end.

 -----Original Message-----
From: 	Oxley, David
Sent:	Wednesday, May 30, 2001 6:41 PM
To:	Lavorato, John
Cc:	Slone, Jeanie; Mayes, Fran L.
Subject:	Mexico

Seems to me a sensible move quickly on Steve Irvine and Jaime Williams to get contracts in place following Yzaguirre's departure. I believe Jaime's contract has just expired and Irvine we drafted back in April as part of the blitz approach but never got past the "do Yzaguirre first" obstacle.

What do you think? You want to talk with them or should we go direct to them?

David


June 7, 2001
Notice No. 01-191

TO:
ALL NYMEX DIVISION MEMBERS
ALL NYMEX DIVISION CLEARING MEMBERS / MEMBER FIRMS

FROM:
NEAL WOLKOFF, EXECUTIVE VICE PRESIDENT

RE:
EXCHANGE TO SUBSTITUTE POSITION ACCOUNTABILITY REQUIREMENTS FOR POSITION
LIMIT RULES

The board of directors of the New York Mercantile Exchange, Inc., has
approved substituting position accountability requirements for the current
position limits on all but the last three trading days of its crude oil,
heating oil, unleaded gasoline, and natural gas contracts, beginning with the
Friday, June 15, trading session.

For the last three days of trading in a particular delivery month, each of
those contracts would continue to have a position limit of 1,000 lots.

The current net position limits levels will be reflected in the
accountability levels. These are:

   Any one month         All months
Crude oil  10,000   20,000
Unleaded gasoline 5,000   7,000
Heating oil  5,000   7,000
Natural gas  7,000   12,000

Any market participant with positions exceeding these levels may be contacted
by the Exchange with inquiries regarding the participant's hedging
requirements or financial condition. The Exchange would reserve the right to
require that the position be reduced or capped.

There will no longer be any gross limits on the number of positions that can
be held, as long as they are offset by positions on the opposite side of the
market (example: a participant with 10,000 long positions in September,
October, and November crude oil futures and 10,000 short positions for
December and January would be considered to have a net position of 10,000
contracts).

These new rules are also intended to apply to the Brent crude oil futures
contract, planned for launch this summer. The board has also approved a
minimum reporting level of 100 lots for that contract.

These rules, which closely resemble those in place for metals traded on the
COMEX Division, must be approved by the Commodity Futures Trading Commission
prior to implementation.

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

"http://208.206.41.61/email/email_log.cfm?useremail=mark.taylor@enron.com&refd
oc=(01-191)"

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


Comments on the attached?
---------------------- Forwarded by Mona L Petrochko/NA/Enron on 11/13/2000
12:57 PM ---------------------------

"Daniel Douglass" <Douglass@ArterHadden.com> on 11/13/2000 11:46:08 AM

To:   <JBarthrop@electric.com>, <MNelson@electric.com>,
      <RSchlanert@electric.com>, <mpetroch@enron.com>,
      <susan_j_mara@enron.com>, <rick.counihan@greenmountain.com>,
      <bchen@newenergy.com>, <kmagruder@newpower.com>,
      <peter_bray@newpower.com>, <Jeff.Hanson@phaser.com>,
      <AWeller@sel.com>, <anchau@shellus.com>, <ben.reyes@utility.com>
cc:

Subject:  Rule 22 Revision

Attached for your information is a draft Petition for Modification of the
Direct Access Tariff decision to modify Rule 22.? The proposed changes
attempt to provide more detail in the direct access tariff regarding what
should  occur if an Energy Service Provider loses its Scheduling
Coordinator.

Jennifer Tsao, the Edison attorney who has drafted this on behalf of all
three utilities, has said that the Rule 22 working group has already agreed
on  the proposed revised language to Rule 22.? She has asked that any
comments  on the draft Petition be provided to her by Wednesday, November
22.? She  can be reached at Jennifer.Tsao@sce.com
(See attached file: R22SchedCoord_.doc)

 - R22SchedCoord_.doc


Message sent from the pjm-customer-info mailing list at pjm-customer-info@majordomo.pjm.com:

> January 12, 2002 - Updates were made to the PJM Manual for Open Access
> Transmission Tariff Accounting (M-27).
> Revised annual reactive revenue requirements listed in Exhibit 3.1 of Section
> 3: Reactive Supply & Voltage Control from Generation Sources Service
> Accounting.
> The PJM Manuals are available in electronic book format and Adobe Acrobat
> format at http://pubs.pjm.com.
>
>
>
>
>
>

Please DO NOT REPLY to this message. If you have a question for PJM Customer
Relations and Training, please complete and submit this form:
http://www.pjm.com/contact/questions.html

To unsubscribe from this list, send an e-mail to majordomo@majordomo.pjm.com
containing only the following line in the body of the e-mail:

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Further to our conversation, please see attached draft of a GISB for your
review.  Please give me a call with your questions and or comments.

Debra Perlingiere
Enron North America Corp.
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


I know Michael wants to go to your apt this afternoon.  If you do go there,
just give me a call to let me know you're there so we can coordinate pickup.

See you soon,

Kay


======================== THE MOTLEY FOOL ========================
                   B R E A K F A S T   N E W S
                   Thursday, September 27, 2001
benjamin.rogers@enron.com
=================================================================

IN THIS ISSUE
---------------------
- TOP STORY: Reliant Resources Buying Orion Power
  http://www.fool.com/m.asp?i=505043

- NEWS TO GO: Sonus Networks and Allegiance Telecom
  http://www.fool.com/m.asp?i=505044

- POST OF THE DAY: Adventures With a Mercedes 240D
  http://www.fool.com/m.asp?i=505045

=================================================================

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-----------------------------------------------------------------
TOP STORY
-----------------------------------------------------------------

RELIANT RESOURCES BUYING ORION POWER
Reliant Resources (NYSE: RRI) announced this morning plans to
acquire Orion Power Holdings (NYSE: ORN) for $4.7 billion in
cash and debt. For Reliant, the deal provides an opportunity to
expand its portfolio of electricity-generating plants in robust
deregulated markets, where government disruption is unlikely in
the coming months.

>>FULL STORY:
http://www.fool.com/m.asp?i=505047

-----------------------------------------------------------------
NEWS TO GO
-----------------------------------------------------------------

Network equipment maker Sonus Networks (Nasdaq: SONS) got
hammered in after-hours trading after announcing that it expects
a third-quarter pro forma net loss of $0.05 to $0.07 per share
on sales of $40 million. That's well below Wall Street's
expectations for sales and earnings of $54.4 million and $0.01
per share, respectively. Sonus will also take charges up to $466
million.

Allegiance Telecom (Nasdaq: ALGX), a competitive local-exchange
carrier, reported disappointing third-quarter results yesterday,
citing the short-term impact of the terrorist attacks on Sept.
11. The company expects revenue of $135 million, well below Wall
Street's expectation of $147.2 million. Allegiance also lowered
its 2001 revenue target 5% below its previous expectation of
$550 million, but maintained full-year earnings guidance.

Guitar Center (Nasdaq: GTRC) was playing the warning blues
yesterday when the music retailer announced that its
third-quarter sales and earnings would fall short of Wall
Street's expectations. Guitar Center expects sales between $219
million and $222 million, with earnings of $0.04 to $0.06 per
share, versus Wall Street's current expectation of $0.16 per
share. The company attributed its disappointing results to the
terrorist attacks, which hurt sales.

Enterasys Networks (NYSE: ETS), which makes network equipment
such as routers and switches, reported second-quarter pro forma
earnings of $23.1 million, or $0.11 per share, compared with
earnings of $10.2 million, or $0.05 per share, in the year-ago
quarter. Wall Street's consensus expectation called for earnings
of $0.10 per share. Revenue increased roughly 26% to $240
million compared to $190.7 million in the same period last year.

-----------------------------------------------------------------
POST OF THE DAY
-----------------------------------------------------------------

ADVENTURES WITH A MERCEDES 240D
"One thing about the Mercedes is that feeling of elegance. Just
riding around behind that hood ornament is a big boost for one's
ego. It gives me delusions of adequacy...But there is a price
for the elegance, reliability, and convenience."

>>FULL POST:
http://www.fool.com/m.asp?i=505048

=================================================================

SPONSORED BY: ING Direct
Power Saving with ING DIRECT!
The Orange Savings Account offers 4.00% annual
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_________________________________________________________________
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Legal Information: http://www.fool.com/m.asp?i=505055

MsgId: msg-26010-2001-09-27_8-52-47-3196704_2_Plain_MessageAddress.msg-08:54:08(9-27-2001)
X-Version: mailer-sender-master,v 1.84
X-Version: mailer-sender-daemon,v 1.84
Message-Recipient: benjamin.rogers@enron.com


For you to handle
----- Forwarded by Richard B Sanders/HOU/ECT on 04/10/2001 09:47 AM -----

	Sandi M Braband
	04/10/2001 09:39 AM

		 To: Richard B Sanders/HOU/ECT@ECT, Michelle Cash/HOU/ECT@ECT, Tom
Shelton/HOU/ECT@ECT, Linda R Guinn/HOU/ECT@ECT
		 cc: Anne C Koehler/HOU/ECT@ECT, Barbara N Gray/HOU/ECT@ECT
		 Subject: Houston Pipe Line Litigation Schedule Update

The terms of the Purchase and Sale agreement require us to update our
schedules during the transition period before closing to reflect any new
pending or threatened litigation or governmental actions/proceedings.
Accordingly, I need to know if you are aware of any such changes in the
threatened or pending legal proceedings of HPL since the preparation of the
initial schedule to the PSA. I will be happy to forward you a copy of the
current schedule if you need that.

The changes I have already been made aware of are:
Settlement of Shanghai (need confirmation that this is a done deal)
Settlement of disputed RRC taxes
Filing of Ray vs. Armstrong World...(including HPL)

I would appreciate your comments as soon as possible regarding any additional
changes. If you have any questions you may reach me at ext. 35465. Thanks
very much for your help!

Sandi


I'm here - my 11 got cancelled.

 -----Original Message-----
From: 	Arnold, John
Sent:	Tuesday, October 09, 2001 10:34 AM
To:	Allen, Margaret
Subject:

are you there?


I have not been given any reasons - the most "considered" list came from EBS
where I feel sure some of them were commercial.  I'm not so sure about the
EES and GPG lists.  These lists are going to some fairly senior people.  I'm
a bit hesitant to add to their workload if it isn't necessary.  My suggestion
would be that we ask for reasons or maybe further research on only those you
particularly want to list.

Bryan Seyfried
03/13/2000 08:48 AM
To: Mark Taylor/HOU/ECT@ECT
cc: Paul Simons/LON/ECT@ECT
Subject: Re: Credit Derivatives Reference Entities

do we know the specifi reason for taking these off (i.e, legal or commercial)

thanks

	From:  Mark Taylor                           12/03/2000 21:16

To: Bryan Seyfried/LON/ECT@ECT, Paul Simons/LON/ECT@ECT, Edmund
Cooper/LON/ECT@ECT
cc: Mark Dilworth/LON/ECT@ECT

Subject: Credit Derivatives Reference Entities

I have received reactions from several of the other Enron operating companies
(EBS, EES and GPG) requesting that the following entities be placed on the
Restricted List for credit derivatives Reference Entities:

AT&T Corp.
Baltimore Gas & Electric Company
Bell Atlantic Corporation
BellSouth Corp.
Cable & Wireless plc
Comdisco, Inc.
Cox Communications, Inc.
Intel
IBM
Lucent Technologies
Monsanto
SBC Communications
Sun Microsystems
Union Carbide
Viacom
Wisconsin Electric Power Company
Wisconsin Gas Company

These companies were those on the attached list (forwarded to the various
General Counsels on 2/28) which were found to be objectionable for one reason
or another.  I have not yet heard from the former EI companies.


you are correct..

	Enron North America Corp.

	From:  Michael Guerriero @ ENRON                           01/24/2001 01:47 PM

To: Scott Neal/HOU/ECT@ECT
cc:
Subject: Re: Pinkerton LOF

That would probably be Kevin Byrne who has left. No worries I will call the
main number.

Thanks

MFG

Scott Neal@ECT
01/24/2001 04:26 PM
To: Michael Guerriero/SA/Enron@ENRON
cc:

Subject: Re: Pinkerton LOF

no.  I don't think I know him.  I had another contact there.  I will look for
his name, number, email address if you want it.

	Enron North America Corp.

	From:  Michael Guerriero @ ENRON                           01/24/2001 10:20 AM

To: Scott Neal/HOU/ECT@ECT
cc:
Subject: Pinkerton LOF

Do you have Mike Martinelli's of LOF/Pinkerton phone number and e mail
address?

Hope all is well.

Regards

MFG


This week on Pennsylvania Newsmakers, State Senator Jeff Piccola and State Rep. Bill DeWeese talk about the Schweiker administration, speculate about the next governor and discuss PA's response to terrorism. Also, a representative of the Pennsylvania Builders Association talks about how current water tapping fees threaten the vigor of this important sector of the state's economy.

Broadcast this week on the following stations:
?        WGAL Channel 8 (Harrisburg and Lancaster) - Sunday 11am, Oct. 28th
?        WFMZ 69 (Allentown & Philadelphia) - Monday 11pm, Oct. 29th
?        WBGN (Pittsburgh) - Sat 3:00 pm, Oct. 27th
?        WKBS 47 (Altoona) - Thurs 11pm, Friday 5:30pm and Sat 12:30pm, Nov 1st, 2nd and 3rd

On cable:
?        Blue Ridge Communications Cable TV 13 - Sunday 3:30 pm, Oct 28th
CATV Channel 8 - Tues 7pm and Wed 1pm, Oct 30th and 31st

To unsubscribe reply to jerrybowyer@home.com  with "remove" in the subject line.

Jerry Bowyer
Pennsylvania Newsmakersseen across the state on these television stations: www.jerrybowyer.com/coveragemap.php
The Jerry Bowyer Programon WPTT radio in Pittsburgh, 1360am: www.1360wptt.com/bowyer
Focus on the Issueson Cornerstone Television
Audio clips from these programs can be heard at www.jerrybowyer.com/audio.php
412.771.2282 phone
412.771.2363 faxjerrybowyer@home.com


so please let me know if you can't get them printed soon.

Thanks,

Kay


>X-From_: owner-alldepts@listserv.rice.edu Fri Jan 25 16:07 CST 2002
>X-Mailer: Internet Mail Service (5.5.2650.21)
>Date:         Fri, 25 Jan 2002 16:06:59 -0600
>Reply-To: Lauren Linn <lblinn@ruf.rice.edu>
>Sender: ALLDEPTS -- Rice University Departments
>               <ALLDEPTS@listserv.rice.edu>
>From: Lauren Linn <lblinn@ruf.rice.edu>
>Subject:      Edward James Olmos President's Lecture cancelled
>To: ALLDEPTS@listserv.rice.edu
>
>Please distribute to all faculty and staff in your department:
>
>Due to circumstances relating to Mr. Olmos's new television show, the Edward
>James Olmos President's Lecture scheduled for Tuesday, January 29, 2002 has
>been cancelled.  We know that many people were looking forward to attending
>the lecture and apologize for any inconvenience this may cause.
>
>Sincerely,
>Lauren Linn
>****************************************
>Lauren B. Linn
>Asst. Director, Alumni Affairs and University Events
>Rice University
>P.O. Box 1892 MS-520
>Houston, TX 77251
>(713) 348-6093
>FAX (713) 348-5210
>lblinn@rice.edu

Suzana G. Vazquez
Staff Assistant
Jesse H. Jones Graduate School
      of Management
ramos@rice.edu
(713) 348-3736


FirstEnergy Trading Services, Inc. merged into FirstEnergy Services Corp.
(Services) effective 12/31/2000.  Notice has been given that they are
assigning the Master Energy Purchase and Sale Agreement to Services.


535228 - broker fee added per Tom Alonso

Kerri Thompson@ENRON
03/26/2001 01:08 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: apb fees

kate can you check on these 2 deals

517814 broker has fee of .0075

535228 broker has fee of .0075

thanks


Gerald -- Assuming you can arrange it with your outside atty -- Rob and I are
available tomorrow morning around 11:00 a.m.; Please let me know what you can
work out.; We would like to act on this asap.; Thanks.


Sure - no problem.

Caroline Emmert
02/28/2001 02:54 PM
To: Kate Symes/PDX/ECT@ECT
cc: Virginia Thompson/PDX/ECT@ECT

Subject: Re: DJ NP 15/SP 15 Electricity Price Index (2/27)

Kate,

Thanks again for the info.  It just occurred to me that we should probably
get this on the first or second workday of the month to get the last days of
the previous months' prices (we have to send an end of month report to
customers), or as soon as all of the prices are available.  Is that doable?

Caroline


Nowhere Yet.   I still have it on my plans to do.

Todd

 -----Original Message-----
From: 	Choquette, Gary
Sent:	Tuesday, February 12, 2002 8:38 AM
To:	Roensch, David; San-Juan-LaPlata, Team; Ingalls, Todd
Cc:	Graves, Jerry; Schoolcraft, Darrell; Asante, Ben
Subject:	La Plata Unit Fuel Valve Change-out

Has there been an outage scheduled to replace the fuel valve on unit 2 at La Plata?

Todd, where do we stand with the station control modifications?


(See attached file: hpl0630.xls)

 - hpl0630.xls


you just might never get it back

"Jennifer White" <jenwhite7@zdnetonebox.com> on 10/23/2000 08:57:44 AM
To: John.Arnold@enron.com
cc:
Subject: Re:

Maxwell.  I left it at your apartment, so you still have it.

---- John.Arnold@enron.com wrote:
>
> hey:
> what was the first cd we listened to on Wednesday at my place?
> john
>
>

___________________________________________________________________
To get your own FREE ZDNet Onebox - FREE voicemail, email, and fax,
all in one place - sign up today at http://www.zdnetonebox.com


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 11/27/2000
12:17 PM ---------------------------

"Btu" <subs@btu.net> on 11/22/2000 03:57:15 PM
To: "Btu Weekly" <>
cc:
Subject: Btu Weekly

Attached is the latest issue of Btu Weekly.

e-mail: info@Btu.net
phone: 732-758-8222
fax: 732-758-8286

 - wg112700.pdf


---------------------- Forwarded by Vladimir Gorny/HOU/ECT on 11/01/2000
03:39 PM ---------------------------

	From:  Tim Belden                           10/27/2000 05:40 PM

To: John J Lavorato/Corp/Enron, Dave Delainey, Mike Swerzbin/HOU/ECT@ECT,
Robert Badeer/HOU/ECT@ECT, Sean Crandall/PDX/ECT@ECT, Tim Belden/HOU/ECT@ECT,
Jeff Richter/HOU/ECT@ECT, Diana Scholtes/HOU/ECT@ECT, Tom Alonso/PDX/ECT@ECT,
Mark Fischer/PDX/ECT@ECT, John M Forney/HOU/ECT@ECT, Paul Choi/SF/ECT@ECT,
John Malowney/HOU/ECT@ECT, Holli Krebs/HOU/ECT@ECT, Greg Wolfe/HOU/ECT@ECT,
Chris H Foster/HOU/ECT@ECT, Stewart Rosman/HOU/ECT@ECT, Kim Ward/HOU/ECT@ECT,
Debra Davidson/PDX/ECT@ECT, Tim Belden/HOU/ECT@ECT, Lester
Rawson/PDX/ECT@ECT, John Zufferli/CAL/ECT@ECT, James D
Steffes/NA/Enron@Enron, Mary Hain/HOU/ECT@ECT, Christopher F
Calger/PDX/ECT@ECT, Dave Parquet, Phillip K Allen/HOU/ECT@ECT, Vladimir
Gorny/HOU/ECT@ECT, Monica Lande/PDX/ECT@ECT, Elliot Mainzer/PDX/ECT@ECT, Tim
Heizenrader/PDX/ECT@ECT, Cooper Richey, Stephen Swain/PDX/ECT@ECT, Susan J
Mara/SFO/EES@EES, Steven J Kean/NA/Enron@Enron, Mark Palmer/Corp/Enron@ENRON
cc: Debra Davidson/PDX/ECT@ECT
Subject: Price Caps

The following summarizes recent price cap events in California.  I think that
I have most of it right.  If there is anything wrong or missing please let me
know.  Please don't share the attached spreadsheet with anyone outside of
Enron.

Regards,
Tim

New Cap Specifics
On 10/26/2000 the ISO Board passed a motion by a vote of 13-10 to implement a
new price cap methodology.
The new methodology will become effective 11/3/2000 or as soon thereafter as
can be implemented.  CAISO staff has indicated that it will be difficult to
achieve that start date.  They have not yet indicated what an achievable date
might be.
The new price cap methodology will remain in place until:
Comprehensive market changes have been implemented and the market has proven
to be workably competitive under a variety of load conditions.
Either FERC or the ISO board orders its removal.
Cap prices will be based on the average NYMEX L3D settlement average and the
following heat rate table:
  Load Level  Heat Rate  4.00 Gas Example Cap
  <25 GW   10,775   $43.10
  25 GW to 30 GW 14,175   $56.70
  30GW to 35 GW  17,225   $68.90
  35GW to 40 GW  27,225   $108.90
  >40 GW   $250/MWh  $250/MWh
Caps will be rounded up to the nearest $5/MWh increment.
Demand bids and demand responsiveness programs are exempt from these caps.
The ISO will post the price caps for each load level at least 48 hours prior
to the beginning of each calendar month.  Based on the ISO's two day-ahead
system load forecast, the ISO will post hourly caps at least 24 hours prior
to the hour of delivery.

FERC Context
FERC has delegated cap authority to the CAISO until 11/15/2000.
The ISO has asserted that they don't need FERC authority since it is a bid
cap rather than a sales cap.  FERC regulates sales, not purchases, of
electricity and therefore can regulate sales prices but not purchase prices.
The ISO has filed with FERC for an extension of the price cap authority.
FERC has to rule on the filing by 11/18/2000.  (Note that this is 3 days
after their authority expires)
FERC will release its proposed order on 11/1/2000 based on the results of its
206 investigation of the California wholesale power markets.  We don't know
what they will find or what they will propose.
The proposed order will have a 30 day comment period, after which FERC will
likely issue a final order.  FERC will be accepting oral comments on
11/9/2000 in Washington.  Enron still has to determine who will provide oral
comments.
Many companies have filed at FERC advocating or opposing a litany of price
caps, cost based rates, and market redesign recommendations.
It is likely that the price caps approved by the ISO board will go into
effect.  How long they will remain in effect will depend on whether FERC
extends the ISO price cap authority and whether the final order stemming from
the current 206 investigation stipulates a specific price cap policy.

Impact of Price Caps
The attached spreadsheet contains a table of likely maximum monthly prices at
different gas price levels.  We think that this is the highest that markets
would clear since it assumes that each hour clears at the cap.  It is hard to
say whether actual prices would clear significantly lower than the cap
because we don't know whether sellers will offer below the cap or at the
cap.  The assumptions behind our analysis are detailed in the bullets below.
Take actual historical loads from 1999 and 2000.
Calculate implied price cap for each hour using actual historical load, new
price cap methodology, and a range of gas prices.
Divide historical hours into peak and off-peak buckets.
Calculate average price for each month for peak hours and off-peak hours.
For example, we have two years worth of data for the months of January
through September.  Each month has approximately 400 hours.  for January
through September, we took approximately 800 observations for each month (400
from each year) and calculated a simple average of all of the individual
observations.
We created a peak table and an off-peak table.  The table shows the
calculated implied cap based off of the acutal loads at varying gas prices
for each month.  This value represents what the month would clear at if each
hour cleared at the cap (based on historic loads).  While any given hour
could be above this value, our calculation estimates the likely monthly
average cap value!
The blue shading indicates what the caps would be given current (10/27/2000
NYMEX) forward prices.  The yellow shading indicates those forward power
prices which are in excess of the proposed cap.


Dear Louise,

Congratulations on your baby boy!  I hope the delivery was not too painful and please don't be upset with him since he wanted to share your birthday.  Happy Belated 32!

Anyhow, on to business.  Needless to say, a lot has happened which is why this email is tardy.  I apologize, but somehow I think your time has been occupied as well. The following has happened :

?	John Nowlan is dragging his feet on payment of the $1.25 in origination due to Upstream Products for the Formosa transaction.

?	I will cc: you on an email which will be my response to Mr. Goodpasture's assertion that ECF does not need to grant any origination for the storage contract negotiated on their behalf by Chris Hilgert and Mike Bilberry.  Goodpasture believes they will be "appropriately recognized thru the PRC process."  In addition, he seems to think, incorrectly, that the overall value of the transaction was worth $ 50 million.  Perhaps I should show him my P&L.

?	I am having a conference call with Redmond and Hart to resolve the Bilberry title issue.

?	I feel that Delainey and Dietrich are trying to shut down ECS within Upstream Products.  I can not get any resources dedicated to price out the compression deals that I need to close.  Based on their lack of "capacity" as well as their prioritization queue (I'm at the bottom), I am being told by Janet to negotiate with Coops, Munis, and other regulatory affiliates for generation, T&D, and site profile pricing.  My intuition tells me that Greg Sharp is behind this directive and is influencing Janet's perspective.  (When is was a V.P. of HPL, Greg Sharp had the compression group report to him and was led by Mark Courtney - also at EES.)

As an aside, I am very disappointed by the bureaucracy of this entire process.  I have tried to be very flexible and at the same time, build a third party compression business.  I understand that their are significant resource and pricing issues, but I need human capital dedicated to getting these deals done internally.  The compression business is not pure retail nor is it pure wholesale.  But I believe, that it is a commercial group that could provide significant P&L if given appropriate resources.  I will be meeting with John Lavorato today to discuss these issues.

?	On Monday, I presented to the Corporate Culture committee a report which highlighted some EOY 2000 PRC statistics that globally represented Enron.  Michelle Cash had a hissy that I had access to this information and Cindy Olson had to step in and approve my access.  In fact,  I have attached the presentation given, but at the meeting, I picked up all the copies and shredded them.  Please be very careful with this file.  I am meeting with Michelle Cash and human relations to be aware of all legal ramifications for any further PRC/Management Research by business unit.

In addition,  I met with Billy Lemmons and we are going to set up two small focus groups (10 employees each) comprised of  Associates and Analysts, who rated at least "Strong" from the 2000 PRC process.  I would like to target some general Management and Meritocracy issues and get verbal feedback.  I would like to present my findings to the Corporate Culture committee on June 6.

?	The attached hotlist file also has an "Executive Sheet."  This sheet represents any residual origination positions from last year that are under my responsibility.  In addition, for the Hotlist file, each business unit sheet has their P&L represented.  This P&L combines accrual as well as mkt-to-mkt  margin.  This number will be different from the Management report since that file represents accrual margin or "flashes" for the entire quarter.  I am only representing "actualized" P&L thru April.

I do not know how you would like to represent BHLP.  I am making the following recommendation:

YTD 2001 Forecast in 000s    	(10,829)
YTD 2001 Plan in 000s	   	(13,490)		Assumes a $56 million EBITDA.

BHLP EBIT Variance		$2,661

In addition, I could represent a quarterly representation as well.

?	Other issues :

I am also meeting with Lavorato to get the VAR for the Wellhead Desk raised above 100K to 1 million.

When trying to represent the P&L for the Hotlist, I realized that it was inaccurate  (i.e., ATS Warrants value incorrectly as well as other issues) and I think now it is fairly clean.  I have started re-scrubbing BHLP P&L.

The storage monetization structure is getting interesting.  Turns out the ETS (Northern) took significant earnings to the bottom line by monetizing their base gas and did not want us to meet with the FERC regarding our structure. (The biggest concern of our customer list is regulatory - we wanted the FERC to "advise" us.  It was Steffes' idea.)  However, we did find out that Skadden Arps wrote Northern an opinion letter indemnifying them of potential regulatory risk.

Sorry for the book,  best regards,

Mrha


There is only one Susan Scott at Enron that really matters, right?  Best ways to ensure it's me...either use sscott5@enron.com or check to make sure the middle initial that pops up is "M".

Ciao


Please find attached Credit's EOL responses for 2/1/00.

Regards,
Molly


---------------------- Forwarded by Eric Bass/HOU/ECT on 08/03/2000 08:32 AM
---------------------------

	From:  David W Delainey @ ENRON                           07/19/2000 01:56 PM

Sent by: Beverly Stephens@ENRON
To: David Oxley/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron, Janet R
Dietrich/HOU/ECT@ECT, Kevin M Presto/HOU/ECT@ECT, Jeff Donahue/HOU/ECT@ECT,
Brian Redmond/HOU/ECT@ECT, Rodney Malcolm/HOU/ECT@ECT, Raymond
Bowen/HOU/ECT@ECT, George McClellan/HOU/ECT@ECT, Ted C Bland/HOU/ECT@ECT,
Gaurav Babbar/HOU/ECT@ECT, Chris Dorland/CAL/ECT@ECT, Sean
Keenan/HOU/ECT@ECT, Jennifer Martinez/HOU/ECT@ECT, Grant Oh/CAL/ECT@ECT, Ross
Prevatt/HOU/ECT@ECT, Marc Sabine/NA/Enron@ENRON, Brandon Wax/HOU/ECT@ECT, Mo
Bawa/HOU/ECT@ECT, Kate Chaney/CAL/ECT@ECT, Catherine Clark/HOU/ECT@ECT,
Raimund Grube/Corp/Enron@ENRON, Jurgen Hess/LON/ECT@ECT, Nicole
La/HOU/ECT@ECT, Susan M Lewis/HR/Corp/Enron@ENRON, Eva Rainer/HOU/ECT@ECT,
Jason Seigal/HOU/ECT@ECT, Eric Bass/HOU/ECT@ECT, Kyle Etter/HOU/ECT@ECT, Nick
Hiemstra/HOU/ECT@ECT, John King/HOU/ECT@ECT, Gabriel Monroy/HOU/ECT@ECT,
Jennifer Reside/HOU/ECT@ECT, Eric Scott/HOU/ECT@ECT, Erin Willis/HOU/ECT@ECT,
Matthew Jachimiak/HOU/ECT@ECT, Homer Lin/HOU/ECT@ECT, Elizabeth
McCarthy/LON/ECT@ECT, Purvi Patel/HOU/ECT@ECT, Reza
Rezaeian/Corp/Enron@ENRON, John Scarborough/HOU/ECT@ECT, Carrie
Southard/HOU/ECT@ECT
cc: Rhonna Palmer/HOU/ECT@ECT, Kimberly Hillis/HOU/ECT@ect, Christy
Chapman/HOU/ECT@ECT, Felicia Doan/HOU/ECT@ECT, Marsha Schiller/HOU/ECT@ECT,
Lillian Carroll/HOU/ECT@ECT, Ana Alcantara/HOU/ECT@ECT, Angie
Collins/HOU/ECT@ECT
Subject: Dinner with ENA Associates & Analysts

Please plan to attend a  reception and dinner for those Analysts and
Associates due to rotate in the near future who have made significant
contributions to  Enron North America.  The function will be hosted  by the
Office of the Chairman at Morton's Steak House located at 5000 Westheimer on
July 27, 2000.  The reception will start at 7:00pm with dinner to follow at
7:45pm.  Please RSVP to Ted Bland at ext. 3-5275 no later than close of
business Monday, July 24.  This will be an informal gathering to discuss the
progress of ENA and an open forum to interact with the management team on a
one on one basis.  See you on Thursday.

 Mark, Dave and John


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