Please forward this to all ETS lawyers.  DF

All:  Please take a look at this article.  El Paso's inartful internal
documents are creating the same kind of fun for them that Microsoft had
during the recent antitrust unpleasantness.  I know that we can't control the
way people think about issues such as market behavior, price strategy, etc.
We can, however, remind ourselves and our clients to be very precise and
careful in the way we talk about, and particularly, write about, such
issues.  I'd like each of us and our clients to keep problems like El Paso's
and Microsoft's in mind when we put pen to paper or fingers to keyboard.
Thanks.  df

---------------------- Forwarded by Drew Fossum/ET&S/Enron on 03/27/2001
12:06 PM ---------------------------

Business/Financial Desk; Section A
Deal for Use of Gas Pipeline Stirs Dispute on Competition
By RICHARD A. OPPEL Jr. and LOWELL BERGMAN

03/26/2001
The New York Times
Page 1, Column 4
c. 2001 New York Times Company

Early last year, the El Paso Natural Gas Company took bids from two dozen
companies for the right to ship enough natural gas through its pipeline from
Texas and New Mexico to meet one-sixth of the daily demand of energy-starved
California.
The winner: El Paso's sister company, the El Paso Merchant Energy Company,
which buys, sells and trades natural gas. The bidding was not close. El Paso
Merchant offered twice as much for the capacity as the other companies bid,
in total, for bits and pieces.
Why pay so much more? California officials, who are pressing a complaint
against El Paso at the Federal Energy Regulatory Commission, say the answer
is simple. The state contends that El Paso Merchant, with help from its
sister company, saw the transaction as a way to manipulate the price of
natural gas by using its control of pipeline capacity.
According to sealed documents obtained by The New York Times that are part of
filings in the federal case, executives at El Paso Merchant said internally
that the deal would give them ''more control'' of gas markets, including the
''ability to influence the physical market'' to benefit the company's
financial positions.
El Paso executives called the accusations fanciful, and in a formal response
to California's complaint, said the state ''grossly distorted'' company
documents by quoting words and phrases out of context.
The dispute opens a window on an important debate about oversight of the
natural gas industry, which fuels a growing share of the nation's electric
power plants.
At issue is whether current safeguards do enough to prevent anticompetitive
abuses in the marketing and trading of natural gas, and whether federal
regulators adequately enforce existing rules. In particular, many industry
officials question whether regulated pipeline companies are able to favor
unregulated sister companies that trade natural gas and are free to maximize
profits.
More than 200,000 miles of interstate pipelines crisscross the country,
moving natural gas from Canada, the Southwest and other producing regions to
fuel factories, power utilities and heat houses.
Not long ago, many parts of the country had excess pipeline capacity. But
experts say that several regions, including California, New York and New
England, now face constraints as demand soars for gas to fuel power plants.
In California, state officials and utility executives said the documents in
the federal case, and El Paso's actions, were proof that the state's energy
crisis stemmed not just from an ill-conceived deregulation plan but from
price manipulation and profiteering.
''They are the market maker with this pipeline,'' said Loretta Lynch, the
president of the California Public Utilities Commission, which has struggled
to cope with skyrocketing power prices and supply shortages.
El Paso ''sets the price in California,'' Ms. Lynch said, and what it did was
intentional. ''It has affected the price,'' she said, ''for everything
related to heat and electrical power prices in the state.''
California's complaint to the federal agency contends that El Paso Merchant
''has hoarded capacity and refused to attractively price unused capacity'' on
the pipeline. The state also charges that El Paso Natural Gas, the pipeline's
owner, has had no incentive to spur competition, by offering discounts to
other users, because the two companies are corporate siblings. The state said
that El Paso had violated federal natural gas statutes that prohibit
anticompetitive behavior.
The sealed filings in the El Paso case indicated that the company expected to
make money by widening the ''basis spread'' -- the difference between what
gas can be bought for in producing basins of Texas and New Mexico, at one end
of the pipeline, and its price on delivery to Southern California.
As it turned out, spreads widened enormously over the last year as the price
of gas soared in California, adding to costs for wholesale electricity that
pushed the biggest utilities near bankruptcy. California utilities paid $6.2
billion above competitive prices for wholesale electricity over the last 10
months, state officials estimated. The utilities are not allowed to recoup
the costs from customers. While the cost of 1,000 cubic feet of gas typically
is less than $1 higher at the California end of the pipeline, spot prices in
the state rose to almost $50 more than the Texas-New Mexico price in
December.
To executives of the parent company, the El Paso Corporation, the accusations
of market manipulation are ludicrous.
High gas prices in California, El Paso executives said in interviews, are
easily explained by soaring demand, the poor credit standing of the state's
utilities and the failure of the utilities to retain pipeline capacity or
store enough gas for winter.
''The idea that anybody is holding back on California is really ridiculous,''
said Clark C. Smith, president of El Paso Merchant's operations in North
America.
Some El Paso customers, though, agreed with California officials. The Pacific
Gas & Electric Company, the San Francisco-based utility, condemned El Paso in
a filing with the federal agency after its lawyers reviewed the sealed
company documents.
''It is now very clear from the business records of El Paso Energy
Corporation,'' the utility said in the filing, ''that the business strategy
El Paso Merchant was authorized at the highest corporate levels to pursue
involved manipulation of price spreads.''
The agency has not ruled on California's complaint, which asks that the deal
between El Paso Natural Gas and El Paso Merchant be invalidated. Based on the
agency's history of policing energy providers lightly, many industry
observers predicted that the complaint would be dismissed, perhaps as soon as
the agency's public meeting on Wednesday.
Nonetheless, El Paso Merchant is feeling some pressure. The subsidiary said
recently that it planned to relinquish control of all but about 22 percent of
the capacity on the pipeline to California, rather than exercise an option
that would have allowed it to retain the entire capacity of 1.2 billion cubic
feet of gas a day.
Critics said they believed El Paso made the move in hopes of lessening the
chance of government action. El Paso executives deny that but do say that
their decision was influenced by the backlash over the arrangement.
Surrendering the pipeline capacity made for a ''gut-wrenching'' decision, Mr.
Smith said, but was ''a first-class gesture'' to California. El Paso Merchant
paid $38.5 million to control the pipeline capacity from March 1, 2000, until
May 31, 2001. While Mr. Clark said he did not know the return on that
investment, he acknowledged that it was lucrative.
''No doubt about it,'' Mr. Clark said, ''we made good money.''
The question of whether El Paso's conduct has driven gas prices higher is
expected to be scrutinized by legislators in Sacramento this week. The
company also faces several lawsuits, including one by the city of Los
Angeles, that accuse it of conspiring with other companies to prevent
pipeline projects that could have eased California's energy crisis. El Paso
denied the accusation.
With pipeline capacity and gas supplies tighter, concerns about
anticompetitive behavior have increased as price volatility has created
soaring profits for energy marketers and traders.
Dynegy Inc., a Houston-based energy trader, was once the target of complaints
to federal regulators that it had artificially raised prices by abusing
capacity that it controlled on El Paso's pipeline to California.
In a filing with regulators in January, Dynegy contended that pipeline
companies routinely favored affiliates. ''Abuses abound because of financial
windfalls, difficulty of detection, lengthy investigations and increased
complexity of the market,'' the company said.
''There are some red flags right now,'' said William L. Massey, a member of
the Federal Energy Regulatory Commission since 1993. Mr. Massey said he was
troubled by the potential for abuses when pipeline companies own gas and
power marketing subsidiaries as well as electric plants fueled by natural
gas. El Paso is in all those businesses.
''What the commission ought to be serious about is: What are the forces at
work? Is it simply robust markets responding to true supply-and-demand
signals, or is it a market defined by market power and some measure of
affiliate abuse?'' he said.
Many in the industry do not believe changes are needed.
''There are rules in place today that protect against affiliate abuse,'' said
Stanley Horton, chief executive for gas pipeline operations at the Enron
Corporation and chairman of the Interstate Natural Gas Association of
America, the industry's trade group, referring to the rules under which
California has brought its complaint about El Paso.
To its critics, El Paso epitomizes the competitive concerns. It operates the
nation's largest network of interstate pipelines and owns one of the largest
reserves of natural gas. With its recent acquisition of the Coastal
Corporation, another large pipeline operator, El Paso has a market
capitalization of $32 billion.
At a conference at El Paso headquarters in Houston in February, analysts
heard executives predict net profits of $1.7 billion this year. El Paso's
much better known rival, Enron, with its headquarters a few blocks away, is
expected to earn about $1.4 billion.
El Paso Merchant provides the strongest growth. Two years ago, the unit's
profits, before interest payments and taxes, were $99 million; this year, it
is expected to have $700 million in North America alone. In its latest
quarterly report, El Paso attributed those profits, in part, to ''commodity
market and trading margins'' that were enhanced by ''power price volatility,
particularly in the Western United States.''
Critics contend that El Paso set out to exploit those conditions. According
to the sealed filings, on Feb. 14, 2000, the day before El Paso Merchant was
awarded the pipeline capacity, executives made a presentation to William A.
Wise, chief executive of the parent company, laying out the rationale for the
bid.
The presentation outlined what it termed ''strategic advantages,'' including
''more control of total physical markets'' and the ''ability to influence the
physical market to the benefit of any financial/hedge position,'' according
to the sealed filings. The passages suggested that El Paso expected the deal
to give it sway over the market for trading actual volumes of gas and to
support financial transactions it had entered into with other parties to
limit its risk.
For every one-cent increase in the spread on gas prices, the presentation
said, El Paso Merchant stood to make an additional $2.4 million.
Under the heading ''Challenges,'' according to the sealed filings, the
presentation stated that storage was needed ''to help manipulate physical
spreads, adding to the overall transport/storage cost.''
On April 14, according to the sealed filings, El Paso Merchant's president at
the time, Greg G. Jenkins, wrote a memorandum to Mr. Wise involving an update
for directors meeting later that month. The memorandum stated: ''We will make
money two ways: 1) increase the load factor, 2) widen the basis spread.''
The language appears to suggest that El Paso Merchant would profit by
increasing the gas flow in the pipeline -- the load factor -- while
increasing the difference between what gas could be bought for at one end and
what it could be sold for at the other end -- the basis spread.
In an interview, Mr. Smith, the El Paso Merchant executive, said that the
unit's prices, and profits, on bulk gas sales in California were locked in
months in advance, so that the company could not benefit from rising prices
in the spot market.
Otherwise, Mr. Smith declined to provide any details about money made on the
pipeline deal or about financial terms of the transactions that locked in
prices ahead of time. In addition, Mr. Smith said that nearly all of El Paso
Merchant's pipeline capacity was used every day when prices spiked late last
year, with no capacity withheld to increase prices.
The company did not respond last week to a request to discuss information in
the sealed documents. But El Paso Merchant, in a filing with federal
regulators, said California's complaint had ''misconstrued and incorrectly
interpreted'' what it termed ''snippets of data.''
About This Report
This article and others on California's energy problems are part of a joint
effort with the PBS series ''Frontline'' that will result in a documentary
later this year.

Photo: The El Paso Natural Gas pipeline passes near Topock, Ariz. A dispute
over bidding for its use has spurred a debate about oversight of the
industry. (John Gurzinski for The New York Times)(pg. A17) Chart: ''Boom
Times'' Operating revenue and net income soared last year at the El Paso
Corpor 2/3ation, which sells, transports and trades natural gas. Graphs of
the operating revenue and the net income for the El Paso Corporation.
(Source: Company reports)(pg. A17) Chart: ''A Spike in Prices'' The spot
price for natural gas produced in the Permian Basin of West Texas doubled
last year. But the price that power generators paid when the gas was
delivered to Southern California rose almost 10-fold. State regulators say
the gap is evidence of market manipulation. Graph showing the spot price of
gas delivered to Southern California and the spot price of gas bought in the
Permian Basin, from September to March. (Source: Gas Daily)(pg. A17)

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


Looks good.  I'm a little confused as to how many users can be on.  The
system needs to be able to handle 50+ users at one time, each being able to
post messages any time.

Brian Hoskins@ENRON COMMUNICATIONS
09/28/2000 02:31 PM
To: Fangming Zhu/Corp/Enron@ENRON
cc: Allen Elliott/HOU/ECT@ECT, John Arnold/HOU/ECT@ECT
Subject: Re: requirement document

Fangming,

Looks good.  That's exactly what we're looking for.  John, please comment if
there are any additional features you'd like to add.

Brian

Brian T. Hoskins
Enron Broadband Services
713-853-0380 (office)
713-412-3667 (mobile)
713-646-5745 (fax)
Brian_Hoskins@enron.net

	Fangming Zhu@ENRON
	09/28/00 02:23 PM

		 To: Brian Hoskins/Enron Communications@Enron Communications
		 cc: Allen Elliott/HOU/ECT@ECT
		 Subject: requirement document

Hi, Brian:

Please review attached requirement document and reply this message with any
comments. Once you approve it, I am going to build the application.

Thanks,

Fangming


Neil,

You have my proxy.  Please let Anthony know what you think.

Thanks,

Kay

Anthony,

Venison would be tough to swallow without teeth.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 12/07/2000 07:26
AM ---------------------------

ACastellese@Technip.Com on 12/07/2000 07:19:07 AM
To: Kay.Mann@enron.com
cc:

Subject: Re: deer

Since I bought Bobbi a spot on the deer lease we have a total of 6 deer to
kill this year. If you want more than one deer your welcome to it. 6 is way
more than we can eat. Unless we skip breast feeding and start the baby on
deer meat.

How do you want it processed?  1 or 2 deer?

Italian Sausage
Smoked Sausage - Mild-Medium-Hot
Pan Sausage - Mild-Medium-Hot
Hamburger

Kay.Mann@enron.com on 12/06/2000 04:08:12 PM

To:   ACastellese@Technip.Com
cc:
Subject:  Re: deer

yes please


From Kevin Hannon, Jim Hughes and John Lavorato

Our efforts to move our South American merchant business model to look like our North American and European models has been evolving quickly.  In the volatile Brazilian power market, Enron is poised to start-up the first merchant plant in the near future.  We are working on several structured transactions and are at the forefront in working with Brazilian regulators to create a viable deregulated power market.

To continue our positive momentum in South America, we have decided to change the leadership of the merchant business.  We have asked Orlando Gonzalez to become President and CEO.  In addition we have asked Brett Wiggs to join Orlando in the office of the chairman as Chief Commercial Officer.

Joe Kishkill has been involved in the South American business for many years and will be exploring other opportunities within Enron.  We would like to thank Joe for his contributions.

Please join us in congratulating Orlando and Brett on their new duties.


My brothers

Forget The Undefeated for the time being. Buy  SmackNabb's book first. Then transport the author to Norman to blow up David  Boren's house. Yeee-haw.

By the way, Brother Storthz, a trip to Houston is a  possibility. Soon. Tell Hohl.

Brother Dent
----- Original Message -----
From:  Joe Storthz
To: smu-betas@yahoogroups.com
Sent: Sunday, November 04, 2001 4:45  PM
Subject: Re: [smu-betas] hot Dog 2
Space,

I saw my fellow Arkie, Dent, at a book  signing in downtown Houston during "The Junction Boys" tour. When are you  coming back to H-town for the new book, Jim? Can I buy you a  refreshment?

By the way, Dent is not the only author in our  ranks. Written under the pen name, SmackNabb, I have a Beta big brother who is  going throughout Texas hawking his new book, "The Complete Infidel's Guide to  Radical Islam".

 If your local bookstore is out of stock,  buy Dent's book.

-kai-  from #487

Joe Storthzwww.storthzfinancial.com jstorthz@swbell.net
----- Original Message -----
From:  Tom  Hosman
To: smu-betas@yahoogroups.com
Sent: Saturday, November 03, 2001 10:39  PM
Subject: [smu-betas] hot Dog 2
Attached is the annual Beta Theta Pi wives  tribute to Scott McNabb held at all homecoming football games.  I am  sorry I missed this years event  but I was visiting my home state  watching Nebraska #1 beat Oklahoma #2 ...not that anyone cares.   Oh by the way Mr. Dent is doing a great job hocking his book up here in  Oklahoma.  Yesterday I heard him on talk radio KTOK where he was  signing books and predicting Oklahoma to beat Tulsa 106 to 0.  He  didn't miss it by much.  Oh another by the way we need more Betas from  the class of 73 commenting as my gag reflex is getting to much of a  workout from the class of 71. Love Space  456   I think  Ulrich was 438 #1 in our pledge class.Oh for older Oh Fos monitoring this  WOOGLIN site my brother in law John Evans Petree  # 355 had his second  grandchild last month.
 hot Dog 2
At  Homecoming 2000, the BETA TENT had the biggest crowd by far.  Stay  connected and consider a future homecoming BETA reunion.  It's  incredible...forget the 20 years in between...everyone just seems to pick it  up right where they left off years ago.
Your use of  Yahoo! Groups is subject to the Yahoo! Terms of Service .
At  Homecoming 2000, the BETA TENT had the biggest crowd by far.  Stay  connected and consider a future homecoming BETA reunion.  It's  incredible...forget the 20 years in between...everyone just seems to pick it  up right where they left off years ago.
Your use of  Yahoo! Groups is subject to the Yahoo! Terms of Service .
Yahoo! Groups Sponsor
 ADVERTISEMENT [IMAGE]
[IMAGE]

 At Homecoming 2000, the BETA TENT had the biggest crowd by far.  Stay connected and consider a future homecoming BETA reunion.  It's incredible...forget the 20 years in between...everyone just seems to pick it up right where they left off years ago.

Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service .


Thanks, I think we turned a corner yesterday, but I also half expect the desk
to snatch defeat from the jaws of victory.

Oregon had a late surge for Gore yesterday and he is up 7500 votes.  It will
tighten, but I think Gore may pull it out after all.  Damn that Ralph....

	Jeff Dasovich@ENRON
	Sent by: Jeff Dasovich@ENRON
	11/10/00 08:53 AM

		 To: Donald Lassere/Enron Communications@Enron Communications, Scott
Bolton/Enron Communications@Enron Communications
		 cc:
		 Subject:

Just talked to Sue re: yesterday's meeting and before I shoot myself in the
head, I just wanted to say it's been great working with  you guys.
Unbelievable....   In any case, congratulations.  Sounds like, all in all, it
was a good meeting.

Scott:  has Oregon figured out who they voted for yet?


Vince, Zimin,
I participated in a telephone conference on this company this morning.  There
was a possibility Enron would invest in it.

Their product appears to be a GUI interface over the top of ILOG Solver (and
possibly ILOG CPLEX) which allows problems to be expressed in high level
terms.  I do not see any immediate application at Enron, but I am interested
in the concepts used so expressed an interest in a demo.  Maybe it would be
useful for general modelling projects here.

They do not even have a user manual for their software, so it will be
difficult to figure out what it does unless a demo is arranged.  The
possibility for growth in the company seems small as the ILOG software is a
modest size market and their product is aimed at only a small part of that
market.  I think the scheduling tools in SAP, i2, etc are more likely to
succeed than this one as they are already integrated into an information
system.

Because of the small market for this software, the many competitors, the
absence of any clear use for it at Enron and the early stage of development,
there is very little prospect of us funding this company.

Tom


I'm looking into whether we have to make a filing for EES too.
---------------------- Forwarded by Mary Hain/HOU/ECT on 02/01/2001 09:20 AM
---------------------------

Christian Yoder

02/01/2001 08:12 AM
To: Mary Hain/HOU/ECT@ECT
cc:
Subject: Letters to terminate EPMI's CalPX Participation Agreement

---------------------- Forwarded by Christian Yoder/HOU/ECT on 02/01/2001
07:53 AM ---------------------------

Christian Yoder

02/01/2001 07:47 AM
To: DWatkiss@bracepatt.com
cc: Elizabeth Sager/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT,
gfergus@brobeck.com, jklauber@llgm.com, Steve C Hall/PDX/ECT@ECT
Subject: Letters to terminate EPMI's CalPX Participation Agreement

Dan,
At some point in the incremental meltdown of the PX process, perhaps when we
default on payment of the large chargeback bill we will receive today or
tomorrow and the PX takes our remaining collateral, the question will
suddenly be:  how does one make sure one is not the last man standing?  It
would seem that if it is possible to ever become a  "former"   participant in
the PX and not a "current" one, ("current" being  the word used in the tariff
to describe who the chargebacks go to) that we would have had, at a minimum,
to have given notice of termination of our participation in both the Core and
CTS markets.  Please review this documentation and help us prepare for a
possible extradited extraction from the PX.  Thanks.----cgy
---------------------- Forwarded by Christian Yoder/HOU/ECT on 02/01/2001
07:19 AM ---------------------------

Steve C Hall
01/31/2001 05:57 PM
To: Elizabeth Sager/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT,
gfergus@brobeck.com, Christian Yoder/HOU/ECT@ECT
cc:
Subject: Letters to terminate EPMI's CalPX Participation Agreement

I have attached ready-to-file drafts of the letters necessary to terminate
EPMI's Participation Agreement with the CalPX.  In addition to the letter to
the CalPX, I am reasonably certain that a FERC filing is required to
terminate the Participation Agreement because it is a power purchase/sale
agreement, the form of which is on file with FERC.  Just to be safe I
prepared the transmittal letter, notice of termination, and notice of filing
necessary to file with FERC.  Among other things, I requested waiver of the
60-day notice period.

I'll wait for further instruction before doing anything else on this matter.

Steve


Attached is a file we put together with the daily figures on them for Central
1 & Central 2.  The total page should tie to what I gave you last week.  I
highlighted the five days on each month the highest absolute value change.  I
then attached those days P&L top sheets.  Please review this information and
let us know what type of detailed support you will need.  Thanks.
PL


FYI


Attached is the latest 2001 New Albany budget.  CAPEX projects have been
broken out and are on a separate sheet in the attached work book.  Theresa,
please create a separate line item for each capex for this year.  All are
required.

Mitch


Do you want to set up a time to meet tomorrow?  How does 10 a.m. look for
you?


What do you think
---------------------- Forwarded by Louise Kitchen/HOU/ECT on 27/03/2000
08:24 ---------------------------

	Enron Energy Services

	From:  Suzanne Farrow @ EES                           24/03/2000 12:35
	Phone No: 713-853-0665

To: Richard Shapiro/HOU/EES@EES, Jay Fitzgerald/Corp/Enron@ENRON, Louise
Kitchen/HOU/ECT@ECT
cc:

Subject: Request to FERC to Review eCommerce Effects

Please see my note below regarding Energy e-comm.com's petition to FERC to
review the effects of eCommerce on the regulated gas and power industries.

Their web address is:  www.energyecomm.com.  It isn't the best written
petition (it's a little flippant at times), but it does deal with some issues
important to eCommerce in the energy industry.  It has not yet been presented
to FERC; they have the draft on their website for comments.

Suzanne

---------------------- Forwarded by Suzanne Farrow/HOU/EES on 03/24/2000
12:29 PM ---------------------------

Mike Harris
03/24/2000 11:42 AM
To: Suzanne Farrow/HOU/EES@EES
cc:
Subject: Re:

Thanks, this is good.  You should forward a copy of the web site where the
petition can be found to Richard Shapiro, Jay Fitzgerald and Louise Kitchen
in case they don't know about it.

Mike

	Enron Energy Services

	From:  Suzanne Farrow                           03/24/2000 09:53 AM
	Phone No: 713-853-0665

To: Mike Harris/HOU/EES@EES
cc:
Subject:

There's some interesting info on their site.  We should obviously watch if
their petition goes anywhere.  I printed the petition... it's written a
little more informally than I would have expected, but it addresses a lot of
important issues related to changing regulations to make eCommerce easier
throughout the energy supply chain.  I don't know if FERC is already
considering these issues, or if this will be the first request to look at
them.

DRAFT PETITION SEEKS E-COMMERCE INQUIRY AT FERC
  Energy E-Comm.com has issued a revised draft of a petition asking
  FERC to initiate a notice of inquiry  into the effects of
  e-commerce on the regulated natural gas and power industries. The
  e-commerce-based company has posted it to its Web site so energy
  companies can comment further on the petition before it's formally
  filed at the Commission later this month.


FYI.  I had started an informal discussion group to work on
political/regulatory risk..  I included Jane, Jim Bouillian, and Scott Gahn.
Jane sent me the atached as an example of how her group approaches issues in
the acquisition context.
---------------------- Forwarded by Steven J Kean/HOU/EES on 03/10/99 06:03
PM ---------------------------
From: "Jane Wilson/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL on 01/14/99
12:41 PM
To: Steven J Kean, James L Bouillion, Scott Gahn, Richard Shapiro
cc:
Subject: Risk Matrix

Subject:
Risk Matrix

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

Attached is a sample draft risk matrix that my group does on a regular basis
in the process of regulatory due diligence.

(See attached file: Guatemalariskmetrix.doc)
 - Guatemalariskmetrix.doc


Jeff-

You are so awesome to want to help me out in my job search.  I really appreciate all you and Allison are doing for me - most especially, your sincere thoughts and prayers.  Thank you for being a true friend in such a time of need.  Trish and I love you and we appreciate you buddy more than you will ever know!

Call me with your thoughts -  I would love to gain your wisdom and guidance!

Lindon
 - LindonWilliams.doc


POSSIBLE DRAFT LETTER TO ROD EDDINGTON at BA FROM KEN LAY
Dear Rod:
Irwin Stelzer says that he has mentioned to you that the next meeting of
Enron's advisory council is scheduled for London on October 30 and 31. The
council includes several prominent permanent members drawn from the  business
and academic communities, to which we add distinguished guests with expertise
in areas of interest to us on an ad hoc basis. Several of our top executives
attend these meetings.
I am hoping that you might help us in two ways. Irwin tells me that your
headquarters building is innovative and has many features that it would be
well worth our while to know about and to study. Would it be possible for you
to arrange a tour for a few of our executives, both from the US and the UK,
say on the morning of October 30?
Second, we understand from Irwin and from the press that you have done
wonders in reinvigorating and revitalizing the BA staff. I am hoping that you
might be willing to share some of the secrets of your success with us,
perhaps at an informal buffet lunch at our new London headquarters on October
31, or at some other time on that day that might be more convenient for you.
Let me take this opportunity to congratulate you on what you have
achieved at BA, in a short time and in a tough market.
Sincerely,


Good Morning Ana,

Hope all is well!  I will be on vacation beginning next week and am trying to
go through all the FXs.  There are just a few that I need:

Amendment:
N29174 / M340252
Deal Date 10-11-00
Period W2-01
Rate: 8,1837 NOK\EUR (All EUR amounts are correct, but because the rate is a
bit off, the NOK amounts will need to be adjusted)

Confirmations for:
N26379
Deal Date 19-9-00
Period YR-03
Rate 8,4990 NOK\EUR

N27121
Deal Date 3-10-00
Per: SO--01
Rate 1,0920 NOK\DKK

Thank you
Yumi
+47 23 10 25 57


Please see the following instructions for the new messenging board.  If you
have any trouble entering into this site, please let me know.  Everyone
should now be setup and ready to go. You will have to add this site to one of
your favorites.

The Gas Message Board application can run on both IE5.0 and IE5.5 now.

Attached is the URL for user to run the application.

http://gasmsgboard.dev.corp.enron.com

Please feel free to forward above URL to people who like to test the
application.

Here is the steps they should do:

1) Launch Internet Explorer

2) Type: http://gasmsgboard.dev.corp.enron.com (or just open this email and
click on above URL)

3) Users should see the messages if there is any new messages for today. If
they don't see any messages, there are two reasons:
 (1) They are not valid users. Their names have not been added into the NT
Web_GasTraders Group yet. Please contact Chrysti Hardy to add their names
into the group.
 (2) There is no new messages added yet.

4) Click on "Comments" button to add messages: there will be a popup window
when user clicks on "comments" button. There are two ways to send the
messages after typing the
messages into the text box:
 (1) just simply press enter to send the message. or
 (2) click on "send" button to send the message.

5) After the message has been sent, The message will be displayed on the main
window immediately, the rest people who are online will get the new message
in less than 30 seconds. This time can be reduced to as less as 1 second.
However, I would not recommend to reduce the time interval less than 10
second.  Because each time the browser refreshes the screen, the screen will
be blink. Users don't want the screen blink every second while they read the
messages.

6) All messages will be cleaned up daily at 6:00PM. If they like to clean
them up later than 6:00PM, please let me know. I can reset the time.

Note: Right now the application is under test environment. If they like it, I
will move it into production environment soon.

Let me know any feedbacks.

Thanks,

Fangming


-----Original Message-----
From: 	Henry, Patricia
Sent:	Tuesday, June 26, 2001 2:08 PM
To:	Dawes, Cheryl; Gulka, Michelle; Hanslip, David; Jessop, Jaimie; Lawrick, Clifford; Patterson, Grant; Scott, Laura; Ta, Kha; Vallejo, Stacey; Vander velde, Nikole; Assaf, Lisa; Brian, Terri; Cappelletto, Nella; Crawford, Sharon; Gawiuk, Carlee; Huculiak, Lindsey; Johnsen, Mya; McCulloch, Angela; McIsaac, Lisa; O'Neil, Carla; Scott, Megan; Sietzema, Linda; Tu, Cindy; Campbell, Scott; Afseth, Stacy; Andel, Diana; Boulanger, Patricia; Dey, Bali; Gilkes, Joelle; Hedstrom, Peggy; Leung, Victor; Liknes, Angela; Machado, Matilda; Pernul, Sarah; Politsky, Karen; Seib, Dianne; Milnthorp, Rob; Croasdale, Duncan; Kitagawa, Kyle; Lynn, Derek; Savidant, Michael; Burnham, Steven; Di stefano, Cyntia; Drozdiak, Dean; Dunsmore, Paul; Hrap, Gerry; Laporte, Nicole; Le dain, Eric; Oh, Grant; Sangwine, Howard; Doucet, Dawn; Henry, Patricia; Bingham, Carey; Garcia, Sebastien; Koulikov, Pavel; Mckeel, Richard; Wiebe, Chris; Bowen, Todd; Rondeau, Clayton; Butt, Sarah; Dadson, Aleck; Flaman, Derek; Gaffney, Chris; Johnston, Greg; Keohane, Peter; Powell, Mark; Tiberi, Fino; Heal, Kevin; Herring, Coreen; Langfeldt, Andrea; Nicholson, Desrae; Ripley, Dianne; Tackney, Conal; Webner, Laura E.; Dion, Nicole; Giampa, Micheline; Michaud, Jean; Pizzuto, Grace; Toy, Shirley; Anderson, Shawn; Biever, Jason; Davies, Derek; Hoogendoorn, Frank; Joslyn, Kate; Law, Michael; Macphee, Mike; Poffenroth, Lori; Fichten, Murray; Greenizan, Bill; Messenger, John P.; Richey, Cooper; Seminuk, Tyler; Taylor, Michael J.; Zufferli, John; Bardal, Chelsea; Bruce, Chad; Gillis, Brian; Luc, Albert; Reeves, Kathy; Renneberg, Mark; Torres, Carlos; Unger, Chris; Borg, Jeff; Devries, Paul; Dorland, Dan; Ellis, Dave; Gilbert, Scotty; Hanley, JB; Mcillmurray, Heather; Rojo, Marnie; Stuchbury, Neil; Tripp, Garrett; Wilson, Jan; Brodeur, Stephane; Clark, Chad; Cooke, Ian; Cowan, Mike; Disturnal, John; Draper, Lon; Garvey, Jason; Lambie, Chris; Mckay, Jonathan; Pearson, Jeff; Watt, Ryan
Subject:	 Employee Announcement
Sensitivity:	Confidential

 Enron Canada bids a fond farewell to Jon McKay who is heading back to the trading group in Houston later this summer.  This will be Jon's second tour of duty south of the border.  During his time with us, Jon has contributed significantly to Enron Canada and will be missed.  Congratulations and best of luck, Jon!

Effective today, John Zufferli will be assuming responsibility for Gas Trading in Canada in addition to his responsibility for Power Trading.  John started his career with Enron in the U.S. but came home to his native land at the end of 2000.  Congrats on your new role, John!

<Embedded Picture (Metafile)>


As requested by Mark.
---------------------- Forwarded by Philip Davies/LON/ECT on 27/07/2000 14:05
---------------------------

Philip Davies
25/07/2000 17:49
To: Poland
cc:

Subject: URE Statement on Criteria for Lifting Tariff Approval Requirements

The President of the Regulatory Authority has recently issued a 3-page
statement, outlining the criteria he will take into account in assessing
whether to release companies (ie, generators and trading companies) from the
tariff approval requirements in the Polish Energy Law.  We may arrive at a
situation later this year where we have signed the necessary transmission,
balancing and settlement contract(s) with PSE so that we can do wholesale
trades -but are still subject to the requirement to get our trades (sales,
not purchases) "approved" by URE before we can conclude them.

The URE statement and recent press comments by the regulator do not give us
any grounds to believe that traders such as Enron are going to be released
soon from this requirement (in the press he has talked about possibly
releasing some generators from the requirement in early 2001).  We may
therefore need to investigate getting an "approved tariff".  However, unless
we can get a framework agreement in place (so we don't need to get each and
every transaction separately approved), this does not appear to be a workable
solution.

The attached statement is unhelpful in that it appears to be simply a list of
every conceivable reason that URE could want to use at some point to justify
continuing with the current restrictions.  While some (but far from all) of
the issues raised are genuine concerns, it does not of course follow that
requiring tariffs to be approved for all generators and traders is the right
response.  (In October 1999 we presented to URE the reasons why we believe
that these requirements make no sense for a new entrant supplier such as
Enron.)

However, since this issue is unlikely to go away, Jarek D. and I plan to use
this statement to develop a dialogue with URE and see if we can find a
workable way forward.

Regards,
Philip

URE definition of  "competitive market" which must exist before he can
consider lifiting the requirements:

"The Authority,s President defines the competitive market as a market where
the transaction price is determined as a result of free interplay between
supply and demand, and the customer has the right to choose the supplier
without restraint, and to change it without excessive costs to himself, as
well as being able to decide the quantity of purchases. Each of the subjects
on the competitive market functions within similar external conditions. The
transactions concluded on this market are subject to civil and legal
regulations, or customary ones, and the information regarding the prices of
goods on offer are generally accessible. The President of the URE estimates
that as far as electric power is concerned, a supplier,s market rather than a
competitive market is still in operation, because the customers are not able
to exert economic pressure where their preferences are taken into account."


I have to admit, this is the first e-mail I have sent to the group, but do
find it necessary to be educated and sometimes enjoy reading about what is
going on in the neighborhood around us.

I felt it my duty to alert the association about an ATTEMPTED break in
that occurred at our home.  We have an attached storage room in the back
of our home, with a separate entrance.  It has old paint, some wood, a cat
carrier and a few items of NO value!!  It seems a few night ago someone,
armed with a cordless drill, and obviously nothing better to do, tried to
no avail to drill all the way through the door and break the lock to get
what was inside.  Fortunately our lock and the door are stronger and they
did not get in, but we did not hear them either.

We have filed a police report and tried to block access to the rear of our
house, however, it still steams us!  We are now more aware of our home as
well as the neighborhood.  Hope this helps!!!

Hank & Jennifer
1909 Morgan

__________________________________________________
Do You Yahoo!?
Try FREE Yahoo! Mail - the world's greatest free email!
http://mail.yahoo.com/

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Stock for $4.
No Minimums.
FREE Money 2002.
http://us.click.yahoo.com/BgmYkB/VovDAA/ySSFAA/NoOolB/TM
---------------------------------------------------------------------~->

To unsubscribe from this group, send an email to:
emca-unsubscribe@egroups.com

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/


Scott,

Please see the message below from Neil Davies.  Neil works in HR under David Oxley and was instructed to call Mr. Reitze last night.  I asked him not to mention the dinner with you.  A problem that is coming up is that the interviews are required to run late (8:30ish) and the person that has been pushed to the end of that line is Hunter.  What are your thoughts on this and is him going to dinner with the two of you a possibility at all?  If you need me to help with reservations or anything, please let me know as I would be happy to help.

Also note that Greg Whalley would like to meet with him.  Eddie does not want to come in any earlier than 4.  That can be a problem.  Maybe another thought is to have him come in twice, but I am afraid if we pick that option, it may be tough to get him back.

Anyway, look over this message, tell me your thoughts and after I hear back from you, I will arrange the interview schedule for Eddie on the 23rd.

Kim

 -----Original Message-----
From: 	Davies, Neil
Sent:	Thursday, May 10, 2001 9:10 AM
To:	Hillis, Kimberly
Subject:	FW: Eddie Reitze

Kim

Can we get Greg added to the schedule.

Thanks

Neil
 -----Original Message-----
From: 	Oxley, David
Sent:	Thursday, May 10, 2001 8:52 AM
To:	Davies, Neil
Subject:	RE: Eddie Reitze

He needs to meet Greg Whalley.

 -----Original Message-----
From: 	Davies, Neil
Sent:	Wednesday, May 09, 2001 7:03 PM
To:	Hillis, Kimberly; Lavorato, John; Oxley, David
Subject:	Eddie Reitze

John/Kim/David

Just called - can come in on Weds 23rd ( reason why he can't come in earlier - vacation from 16th to 19th ) . Still interested in talking - simply a scheduling issue - don't seem to be any barriers to moving forward.

They have just moved office - hence new number (7139890962)

Does the 23rd work ?

I didn't mention the Scott Neal call.

Neil


Sorry this is late getting out.? Server went  down Friday and now my email
doesn't work, so sending this from home.? Hope  it makes it to everyone.
?
The attached file shows a comparison of California  electric rates for
commercial and residential customers with rates for similar  customers in
neighboring states.? The results show California customers'  rates
significantly higher with the difference narrowing in 2000.? Data for
2000?reflects a usage weighted average for the 1st 8 months.? Some  data was
not available for all utilities.? Data is from PowerDat and is  generally
consistent with data reflected in EIA's data base.
?
Robert Neustaedter
Mobile Phone 713 962  2063
 - california comp.xls


I don't see a year to date p&l for Judy.  My worksheet shows NYMX position to
be flat and her yeart to date P&L is about ($146,000.00).  Would you just
verify that for me please.

Thanks


---------------------- Forwarded by Ami Chokshi/Corp/Enron on 06/09/2000
09:09 AM ---------------------------

"Steve Holmes" <Steve.Holmes@dvn.com> on 06/09/2000 09:06:45 AM
To: <Ami.Chokshi@enron.com>, <Darren.espey@enron.com>, <mschrab@enron.com>
cc:

Subject: HI325 and HI 368 Revision Effective 6/10/00 (HIOS P/L)

Please see the attached revisions to be effective 6/10/00 on HI 325 and HI
368 platforms.

Darren - We will probably make another change to HI 368 effective Tuesday,
June 13 once we hear from the pipeline on reallocating the gas.  I will let
you if we need to change the nom for Tuesday, June 13.

Please let me know of any questions you have.

Thanks,

 - HI325reveff061000.xls
 - HI368reveff061000.xls


Hi guys.  We need to add the CES demand charges to the East Desk P&L.  The
impact to the desk is ($694,399).  This includes the demand charge paid to
CALP and the reimbursements for the Penn Fuel capacity.  It does not include
any demand charges paid to Dayton Power & Light.  How are we accounting for
that?

The file is under o:/logistics/capacity/east/ne/ces/2000ces01.xls  Use tab
CES WHOLESALE.  All the demand charges under CES RETAIL are reimbursed.

I sure we are missing some things.  Scott Goodell will be going through this
worksheet tomorrow.


Now you can enjoy the benefits of convenient online ordering and home
delivery for medications that you take on an ongoing basis - even if
you currently fill these prescriptions at your local retail pharmacy.

Recent enhancements to merckmedco.com now make it even easier for you
to see which of your prescriptions can be filled through Merck-Medco's
Home Delivery Pharmacy.

When you choose to refill a prescription through home delivery, you can:
* Enjoy at-home prescription delivery and the convenience of online
  ordering anytime, from any computer with Internet access.
* Receive a larger days' supply of medication -- usually up to 90
  days -- which saves you trips to the drugstore and in some cases,
  saves you money.
* Check prescription order status, pricing and coverage online.
* Receive e-mails notifying you of your prescription order status.

To see which prescriptions may be eligible for home delivery, simply:
* Click on this link or copy it into your browser window:
  https://host1.merck-medco.com/cgi-bin/Br.cgi?-PW-MyRxRtTb
* Then log in using your email address and password.
* After you click on the "login" button, you'll be presented with our
  "Retail Prescriptions" area, where you can see a detailed history of
  recent prescriptions you filled at a retail pharmacy.

Any medication with a little blue house next to it indicates that the
prescription is eligible for home delivery. When you click on the blue
house, you can compare your current co-payment with the savings you would
receive if you choose home delivery.  If you decide that you would like
to take advantage of home delivery savings, we contact your healthcare
provider and keep you informed every step of the way via e-mail.

merckmedco.com has many ways to help you get the most out of your
prescription drug benefit.  So visit us today and see for yourself!

For AOL Users:
Merck-Medco My Retail Prescriptions

When you registered with merckmedco.com, you indicated that you would
like to receive e-mail notices about new web site features, as well as
important messages about your plan benefit, prescriptions and other
pharmacy benefit features. Should you wish to discontinue this service,
please follow this link:
https://host1.merck-medco.com/cgi-bin/Rb_home.cgi?-Q-OTC2000A08
and log in and then update your personal preferences by choosing the
"My Profile" option from the bottom menu bar.

For AOL Users:
Merck-Medco Homepage

                  CONFIDENTIALITY NOTE
This e-mail contains confidential information from Merck-Medco and is
intended solely for the use of the individual named on this transmission.
If you are not the intended recipient, you are notified that disclosing,
copying, distributing or taking any action in reliance on the contents of
this information is strictly prohibited. If you are not the intended
recipient of this e-mail, to prevent future transmissions like this,
please notify Merck-Medco by forwarding this e-mail to the following
address: website@merckmedco.com.


---------------------- Forwarded by Ginger Dernehl/HOU/EES on 05/22/2000
09:52 AM ---------------------------

Janine Migden
05/19/2000 04:33 PM
To: Janine Migden/DUB/EES@EES
cc: Steven J Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EES, Martin
Wenzel/SFO/HOU/EES@EES, Dave S Laipple/DUB/EES@EES, Adam Cooper/DUB/EES@EES,
Greg F Bechert/DUB/EES@EES, Christopher S Barnum/DUB/EES@EES, Eric P
Niemeyer/DUB/EES@EES, Kevin Kovak/HOU/EES@EES, David Kramer/HOU/EES@EES,
Frank Bercan/HOU/EES@EES, Eric Letke/DUB/EES@EES, Tim Weithman/DUB/EES@EES,
Dana Saucier/DUB/EES@EES, George C Mossides/DUB/EES@EES, Jill L
Walton/DUB/EES@EES, Janet R Dietrich/HOU/ECT@ECT, Donald M- ECT Origination
Black/HOU/ECT@ECT, Jeffery Ader/HOU/ECT@ECT, Edward D Baughman/HOU/ECT@ECT,
Mark Bernstein/HOU/ECT@ECT, Doug Sewell/HOU/ECT@ECT, James D
Steffes/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, Elizabeth
Linnell/HOU/EES@EES, Lynnette Barnes/HOU/EES@EES, Ginger Dernehl/HOU/EES@EES,
Laurie Knight/DUB/EES@EES
Subject: Re: Summary of Ohio Settlements

Sorry, I forgot the attachments.


An interesting piece of information from the oil markets.
Iraq is trying to extract concessions from the US and threatens to shut down
production as of Oct 1 (just in time for the US elections).

The source of this info is Phil Verlaeger (an oil analyst).
He is very good but excessively concerned with Iraqi machinations.
He is the source of news (reported by Friedman of the New York Times in
his op-ed columns) about massive Iraqi trading in the
oil futures markets. I personally discount this info: the volume and
transparency of
the oil markets  would not support this type of huge scale operations by
Saddam's
government. There may be some trading by Iraqi officials on the side.

Vince


Here are your latest rosters. Let me know if you would like the spreadsheet
with their e-mail addresses as well! - Pam (6223)
 - 656.doc


Pls fax to me that which you  faxed to Jim Noteboom. My fax # is 206-343-2103.
THX


Chris, I got your message.  I am very happy how you are coming out!  I think
it is a great opportunity for both you and the company!  Please work through
the move and comp questions with Julia.  Of course I will be available as
needed.

Mark


OK.

Carolyn George
01/25/2001 04:36 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Re: Rodeo Tickets

I am soooo sorry I made a mistake.  My daughter's schedule will allow her to
attend Clay Walker - not Def Leppard.

If you still have 2 tickets for February 13 (Clay Walker) I would like to
purchase those.

If you still have 4 tickets for March 2 (Martina McBride & Lee Ann Womack) I
would like to purchase those.

Sorry for the confusion.

Thank you!!

Kay,

If you still have 4 tickets for March 2 (Martina McBride & Lee Ann Womack) I
would like to purchase those.

Do you mind checking to see if you have 2 tickets for March 1 (Def Leppard),
if you do I would like to purchase those also.

Just let me know.

Thanks so much!

Carolyn George
Sr. Administrative Assistant
Enron Wholesale Services
Enron Industrial Markets LLC
1400 Smith, EB3836A
Houston, TX  77002
(713) 853-3439    Fax:  (713) 646-3393
email:  carolyn.george@enron.com


Please find attached Credit's EOL responses for 3/13/00.

Regards
Molly


Eric,

I have a number of case studies on Enron but not the one on Sutton Bridge.
I know that Peter Tufano was working on it  but when  I checked the HBS
site and tried to purchase it, I could not locate it.

When I talked to Peter a few months ago, he told me that the case study was
ready
 and he  was going through Enron's internal approvals.

I cc Mark Palmer on it. Maybe he knows about this specific case study.

I wander if it was completed, given Sutton Bridge developments.

Vince

Eric Gadd
11/10/2000 05:49 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Enron Case Studies

Vince-

Where might I find copies of the case studies Enron has published?  I'm
particularly interested in the Sutton Bridge publication for Havard but would
like to know if there is a library of case studies.


With regard to working out a convenient date to meet with  you, Rosalee has
suggested that your week of September 4 is pretty well  booked-up. Would
either September 11 or 13 work? After that I have to join Norm  Blake at the
Olympics in Sydney. While all of this can de done by phone, as  deputy to the
chairmen, I'm making every effort to meet (albeit briefly) with  each
Committee member. If you are willing to host a meeting in Houston, I want  to
make every effort to have Paul Newman in  attendance.


Steve is out of the country this week - but I checked his schedule and it
looks like Nov. 29 in DC would work best.

I will go ahead and pencil that in on Steve's schedule.

    Maureen McVicker
    Steve's Assistant

	Stelzer@aol.com
	10/18/2000 09:23 AM

		 To: Steven.J.Kean@enron.com
		 cc:
		 Subject: Re: Advisory group

Do you prefer Nov. 29 or Dec. 4 in DC?


- damnsnow.mpe


----- Forwarded by Steven J Kean/NA/Enron on 02/28/2001 02:15 PM -----

	Alan Comnes@ECT
	02/26/2001 12:08 PM

		 To: Jeff Dasovich/Na/Enron@ENRON, Angela Schwarz/HOU/EES@EES@ENRON, Beverly
Aden/HOU/EES@EES@ENRON, Bill Votaw/HOU/EES@EES@ENRON, Brenda
Barreda/HOU/EES@EES@ENRON, Carol Moffett/HOU/EES@EES@ENRON, Cathy
Corbin/HOU/EES@EES@ENRON, Chris H Foster/HOU/ECT@ECT, Christina
Liscano/HOU/EES@EES@ENRON, Christopher F Calger/PDX/ECT@ECT, Craig H
Sutter/HOU/EES@EES@ENRON, Dan Leff/HOU/EES@EES@ENRON, Debora
Whitehead/HOU/EES@EES@ENRON, Dennis Benevides/HOU/EES@EES@ENRON, Don
Black/HOU/EES@EES@ENRON, Dorothy Youngblood/HOU/ECT@ECT, Douglas
Huth/HOU/EES@EES@ENRON, Edward Sacks/Corp/Enron@ENRON, Eric
Melvin/HOU/EES@EES@ENRON, Erika Dupre/HOU/EES@EES@ENRON, Evan
Hughes/HOU/EES@EES@ENRON, Fran Deltoro/HOU/EES@EES@ENRON, Gayle W
Muench/HOU/EES@EES@ENRON, Ginger Dernehl/NA/Enron@ENRON, Gordon
Savage/HOU/EES@EES@ENRON, Harold G Buchanan/HOU/EES@EES@ENRON, Harry
Kingerski/NA/Enron@ENRON, Iris Waser/HOU/EES@EES@ENRON, James D
Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES@ENRON, James Wright/Western
Region/The Bentley Company@Exchange@ENRON, Jeff Messina/HOU/EES@EES@ENRON,
Jeremy Blachman/HOU/EES@EES@ENRON, Jess Hewitt/HOU/EES@EES@ENRON, Joe
Hartsoe/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Kathy
Bass/HOU/EES@EES@ENRON, Kathy Dodgen/HOU/EES@EES@ENRON, Ken
Gustafson/HOU/EES@EES@ENRON, Kevin Hughes/HOU/EES@EES@ENRON, Leasa
Lopez/HOU/EES@EES@ENRON, Leticia Botello/HOU/EES@EES@ENRON, Mark S
Muller/HOU/EES@EES@ENRON, Marsha Suggs/HOU/EES@EES@ENRON, Marty
Sunde/HOU/EES@EES@ENRON, Meredith M Eggleston/HOU/EES@EES@ENRON, Michael
Etringer/HOU/ECT@ECT, Michael Mann/HOU/EES@EES@ENRON, Michelle D
Cisneros/HOU/ECT@ECT, mpalmer@enron.com@ENRON, Neil
Bresnan/HOU/EES@EES@ENRON, Neil Hong/HOU/EES@EES@ENRON, Paul
Kaufman/PDX/ECT@ECT, Paula Warren/HOU/EES@EES@ENRON, Richard L
Zdunkewicz/HOU/EES@EES@ENRON, Richard Leibert/HOU/EES@EES@ENRON, Richard
Shapiro/NA/Enron@ENRON, Rita Hennessy/NA/Enron@ENRON, Robert
Badeer/HOU/ECT@ECT, Roger Yang/SFO/EES@EES@ENRON, Rosalinda
Tijerina/HOU/EES@EES@ENRON, Sandra McCubbin/NA/Enron@ENRON, Sarah
Novosel/Corp/Enron@ENRON, Scott Gahn/HOU/EES@EES@ENRON, Scott
Stoness/HOU/EES@EES@ENRON, Sharon Dick/HOU/EES@EES@ENRON,
skean@enron.com@ENRON, Susan J Mara/NA/Enron@ENRON, Tanya
Leslie/HOU/EES@EES@ENRON, Tasha Lair/HOU/EES@EES@ENRON, Ted
Murphy/LON/ECT@ECT, Terri Greenlee/NA/Enron@ENRON, Tim Belden/HOU/ECT@ECT,
Tony Spruiell/HOU/EES@EES@ENRON, Vicki Sharp/HOU/EES@EES@ENRON, Vladimir
Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES@ENRON, William S Bradford/HOU/ECT,
Kathryn Corbally/Corp/Enron@ENRON, Jubran Whalan/HOU/EES@EES@ENRON,
triley@enron.com@ENRON, Richard B Sanders/HOU/ECT@ECT, Robert C
Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ENRON, Greg Wolfe/HOU/ECT@ECT,
Dirk vanUlden/Western Region/The Bentley Company@Exchange@ENRON, Steve
Walker/SFO/EES@EES@ENRON, Jennifer Rudolph/HOU/EES@EES@ENRON, Martin
Wenzel/SFO/HOU/EES@EES@ENRON, Douglas Condon/SFO/EES@EES@ENRON,
wgang@enron.com@ENRON, Scott Govenar <sgovenar@govadv.com>@ENRON, Hedy
Govenar <hgovenar@mail.acom2.com> @ ENRON, jklauber@llgm.com@ENRON, Chip
Schneider/NA/Enron
		 cc:
		 Subject: Most of West in the Same Power Jam as California

The print version had some good tables showing retail rate increases accross
the west ....

http://www.latimes.com/business/reports/power/lat_west010226.htm
Back to story

Most of West in the Same Power Jam as California
 Utilities: Other states ran their grids at fever pitches as populations
swelled and few new energy sources were developed. Now, also facing
blackouts, they want to tilt balance of power away from the Golden State and
toward themselves.

By PETER G. GOSSELIN, Times Staff Writer

     WINTERSBURG, Ariz.--For more than a century, California ran a simple
account with the rest of the West: It demanded and the West supplied, most
especially water and power.
     But as the Western states have ballooned in the last decade--in no small
part because of an outbound trek of Californians--this simple, supply-demand
relationship has broken down.
     Fundamentally, the rest of the West has outgrown its electrical system
just as California has its own. And it has done so in very much the same
way--by adding too many people without enough new power or conservation.
     Indeed, statistics show that much of the rest of the West would have
been on the verge of trouble even without California's help and may yet face
the sort of rolling blackouts that have wreaked so much havoc in the Golden
State.
     The booming Southwest has run its power grid at such a fever pitch that
its planning reserves--the extra power that utilities build in to handle
emergencies--have shrunk to levels that many regulators and industry experts
consider dangerous.
     Almost none of the West save Montana has increased its power production
at anything like the pace of its population growth during the last decade.
Despite the long economic boom of the 1990s, which smiled especially on the
West, several, such as Arizona, have failed to complete a single new power
plant.
     "We don't know how bad it's going to be yet," said Utah's Republican
governor, Mike Leavitt. "We won't know that until May, June, July and August,
when everyone in the Southwest turns on their swamp coolers."
     In trying to dodge the blackout bullet, many Western leaders are seeking
to force a great change on the region: to renegotiate their states' basic
deal with California. They want to end an old relationship--that between
center and hinterland, colonizer and colonized--and establish a new one that
could curtail California's long regional dominance.
     In the strange chemistry of the moment--when a once-Republican state
government has turned Democratic and a once-Democratic national government
has turned Republican, when the battle is to a large extent over privately
owned electricity rather than publicly controlled water--they could actually
meet with some success.
     "California spent the 20th century decolonizing itself from Wall Street
and the East," said Kevin Starr, the state librarian and author of a
multivolume history of California. "Now, all of a sudden, there's a dramatic
possibility of it being recolonized, at least in part, by the rest of the
West."

     Captive Plants Feed Power to California
     Ground zero for these changes lies 50 miles west of Phoenix in the dry
scrublands of Wintersburg. This is home to the Palo Verde nuclear facility,
now the nation's single biggest power producer. It will soon be home as well
to between three and six new gas-fired power plants that, combined, will
produce even more electricity than their giant neighbor.
     Palo Verde represents a great deal about the old, fraying world of
regulated utilities and about the supply-demand relationships that California
once maintained with the rest of the West.
     More than one-quarter of the plant is owned by Los Angeles' municipal
utility, the Department of Water and Power, several other California cities
and Southern California Edison.
     A row of steel latticework towers runs off toward California, carrying a
transmission line from plant to consumer. California has big stakes in a
half-dozen similarly captive plants in an arc of states from Nevada to New
Mexico.
     From California's point of view, the beauty of these projects has been
that they provided near-certain power without the muss of meeting state
pollution standards or the political hassle of building closer to home.
     And at least until the mid-1990s, California regulators virtually
guaranteed that their owners covered their costs and made profits, even if
plants' power wasn't immediately needed.
     "The first principle of the old system was that you had to be able to
meet demand, no matter what," said Paul L. Joskow, a veteran utility
economist at the Massachusetts Institute of Technology.
     "If you had too much power, if it cost you a little too much, that was
less important than being sure you could meet demand." And, he added, "you
had regulators watching to make sure you did."
     The gas-fired plants that are about to pop up in Wintersburg are also
representative, but of the new, deregulated world of power production.
Although they will crowd in around Palo Verde and tap into the same
California transmission line, they are being built on an entirely different
business premise: selling power to the highest bidder.
     In fact, the reason this empty patch of desert has become such an
electricity hot spot lately is not Palo Verde itself, but its huge
transmission lines. In addition to the California line, four others fan out
from the plant: two back to Phoenix, one east to New Mexico, and one north to
Utah and from there to the Northwest.
     All were built to hard-wire the nuclear project to its owners. But they
are now seen as the means by which a new breed of producer can get top dollar
by sending power wherever prices are highest.
     "It used to be generating capacity was built by people who looked at the
market to see if they could meet demand," said Jack Davis, president of
Pinnacle West Capital Corp., which owns Arizona's major utility and is
putting up two of the Wintersburg plants.
     "Now," he said approvingly, "it's being built by people who look at the
market to see if you can make a lot of money."

     Plans Go Awry in Many States
     Money, not the watchful eye of government, was what was supposed to
assure that electricity deregulation worked. The opportunity to make it would
cause investors to flock to the electricity business, ensuring that plenty of
new power plants got built.
     If too many went up, it would be investors, not ratepayers, who
suffered. If too few, then high prices would attract still more investors,
more plants and, ultimately, more power.
     But to date, almost nothing about deregulation has gone as planned--and
not just in California, but in the West in general.
     Take Arizona. The state has a hands-off attitude toward business,
including its utilities. It has almost none of the environmental restrictions
blamed for keeping California from putting up the new plants it needs.
     Its population grew by 40% from 1990 to 2000, according to the Census
Bureau. And its demand for electricity expanded at nearly twice that rate,
according to industry figures.
     "Arizona should have been a power producer's heaven," said A. Michael
Schaal, a senior analyst with Energy Ventures Analysis Inc., a prominent
Washington-area consulting firm.
     But Arizona's power production rose a mere 4% during the 1990s, mostly
as a result of improving existing plants. Until 18 months ago, no one had
applied to build a major power plant since Palo Verde in the late 1980s.
     "I guess I go on the assumption that the utilities plan with some sort
of 10-, 20-, 30-year time horizon," Arizona's Republican Gov. Jane Dee Hull
said in a recent interview. "I think what we all worry about is: Are they
planning?"
     Or Nevada. Its utilities apparently did plan and increased
electricity-making capacity between 1990 and 2000 by a substantial 44%. But
that wasn't enough to keep up with the state's population, which increased
66%. On Thursday, Nevada Gov. Kenny Guinn, a Republican and former energy
company executive, indefinitely halted deregulation in his state.
     Or traditionally energy-rich Washington state. One of its major
utilities, Seattle City Light, recently learned that all of its previously
planned supply increase for the next four years will be consumed, and then
some, by just three new customers: computer server farms being built to
handle the growing Internet traffic in and out of the high-tech capital.
     But it's unlikely to be able to get extra power soon because regional
supplies are balanced on a "razor's edge," according to Northwest Power Pool
President Jerry Rust. "We have no cushion."
     Indeed, the electricity supplies of the entire West are balanced on a
razor's edge, with a variety of forecasters predicting serious shortages this
summer.
     Schaal, the Washington-area consultant, for example, said the region
will come up 6% short. "Westerners can expect 150 to 275 hours of rolling
blackouts, most of them in California," he said.
     One of the most striking aspects of the current situation is that, in
contrast to what most people think, supplies have not grown short just
recently.
     They have been perilously tight for the last several years--before the
start of California's troubles of this summer and fall, and before the
near-record dry winter that has left the Northwest dangerously short of water
for its hydroelectric dams.
     The implication is that California did not cause other states to run
short of power so much as trigger events that exposed their danger. It did
that, according to key observers, with one monumentally inept maneuver.
     When California required its major utilities to buy power in the
volatile spot market and simultaneously prohibited them from passing along
higher costs to consumers, it set off a furious price spiral.
     That effectively stripped the entire region of its energy security
blanket, the assurance that it could buy extra power relatively inexpensively
if local supplies proved inadequate.
     The result has been a string of crises across the West.
     In southern Arizona, for example, the San Carlos Irrigation Project, a
tiny public utility that tried to jump into the deregulation vanguard by
dropping long-term contracts in hopes of more power at lower prices in the
spot market, has announced that its bills are going up 300%. Most of the
project's 13,300 poor customers say they can't pay.
     In Phoenix, utility executives who had confidently said the state was
rich with new power projects about to come on line have decided to pull two
50-year-old steam plants out of mothballs and rent a pair of portable
generators to reduce purchases from the expensive spot market.
     In Idaho, the big power company is appealing to potato farmers to skip
planting and sell the electricity they would use running irrigation pumps
back to the firm. Company executives figure the buyback will be cheaper than
purchasing power on the open market--and the potato farmers are likely to do
pretty well themselves.

     Deep Hostility in Rest of the West
     The subtle difference between California's triggering recent events and
actually causing the region's crisis is largely lost in the current
atmosphere of apprehension and upheaval. Although leaders of the rest of the
West are scrupulously evenhanded in commenting to outsiders about their big
neighbor, they are less guarded at home.
     The normally mild-mannered Leavitt, for example, was recently quoted as
warning a Salt Lake City audience that "California, if given the chance,
would put a shunt into our veins and bleed us pretty quickly." (In an
interview, he denied having made the remark.)
     Such comments reflect an old and easily rekindled view among Westerners
that their states are, in the words of historian Bernard DeVoto, "plundered
provinces"--terrain that first Easterners and then Californians have
regularly raided for minerals, water and, most recently, power.
     But this time, some Western leaders think they can change all this. "A
lot of people see an opportunity to rewrite the fundamental relationship with
California to their advantage," said Stanford historian Richard White.
     The attempts at rewriting are taking shape across the West.
     In the Northwest, Oregon, Washington, Idaho and Montana are redoubling
their efforts to take over the Bonneville Power Administration, the huge,
federally controlled generating system on the Columbia and Snake rivers that
is one of California's chief sources of summer electricity.
     "The crisis has highlighted the danger that power generated in the
region can be exported without the region's consent," Oregon Gov. John
Kitzhaber said in an interview.
     In Arizona, state officials have gone from having no proposals for new
power plants to being buried by them. Regulators recently approved the
construction of 10 plants, including several around Palo Verde, and are
considering another eight.
     Although they are requiring the plants to temporarily serve Arizona's
needs first, the facilities will soon be able to sell their power for
whatever prices they can command, an arrangement that could leave California
just one among many bidders.
     (Federal officials are unlikely to get in the way: Gov. Hull is close to
President Bush, who in turn has shown little interest in helping Democratic
California.)
     Perhaps the most aggressive efforts at change are occurring in Utah,
where Leavitt is trying something that could become California's worst
nightmare--recalling power that Utah produces for the state.
     Los Angeles' DWP and several other California utilities own
three-quarters of the huge, coal-fired Intermountain Power Project in
west-central Utah, and have been drawing on it without incident for 15 years.
     But Utah officials recently unearthed a long-forgotten provision in
their agreement with the plant's owners that gives them the right, with
proper notice, to recall power for local use.
     The state has already notified Los Angeles that it is taking back 50
megawatts of electricity capacity this summer and another 170 next summer,
and it may be able to take back still more, according to plant general
manager Reed Searle.
     Although the amounts are trivial--the Los Angeles utility either owns or
has firm contracts for more than 7,000 megawatts of capacity--Leavitt said
Utah will demand similar recall provisions in agreements for any new plants
in the state, including a 500- to 750-megawatt facility that Los Angeles is
negotiating to build.
     "California has chosen not to create its own power generation and has
depended on us to do that," the Utah governor said. "That's fine and we're
willing to do that.
     "But," he added, "there comes a point at which, if demand grows too
large, we've got to hold some of this capacity back for ourselves, and for
our children and grandchildren."
     If Utah and the rest of the West have reached that point, California
could be in for a much bigger and more enduring shock than the one from which
it now suffers.

---
     Times researcher Lynn Marshall in Seattle contributed to this report.

Copyright 2001 Los Angeles Times


Bob:

We appreciate your counsel's review of our proposal, and will proceed either
with your recommendation below (2 product labels - one for commercial
customers receiving 100% renewable energy and the other label for our larger
users comprised of a percentage renewable and fossil fuels) or, as was
discussed with Drake Johnson, distributing one aggregated label with a
percentage renewable resources and fossil fuel.

Thank you for taking into account our timing constraints and responding to
our request so promptly.

Best regards,
Stacey Bolton
Manager, Environmental Strategies
Enron
713-853-9916

"Robert Grow" <Rgrow@energy.state.ca.us> on 08/18/2000 11:15:28 AM
To: <sbolton@enron.com>
cc: <Cholmes@energy.state.ca.us>, <DJohnson@energy.state.ca.us>,
<Kgriffin@energy.state.ca.us>, <Mjones@energy.state.ca.us>
Subject: Re: Label Calculation

Stacey:

Our counsel has reviewed your proposal.  We find that it doesn't meet our
regulations, but it appears to represent a good faith effort to comply.  We
cannot give official approval to labeling that is not in accord with the
regs, but  counsel says we will not consider any sanction or punitive action
in this case.

The problem with your proposal is that the product is represented by two
labels, not one.  You could consider splitting the product into multiple
products, only one of which is 100% renewable.  Even so, we think consumers
should be able to understand the product as you have described it.

I hope this response is timely for your September billing.

Bob Grow
Program Manager
Power Source Disclosure
CA Energy Commission
(916) 654-5180

>>> "Stacey Bolton" <sbolton@enron.com> 08/15/00 04:58PM >>>

Bob:

Pursuant to our phone discussion today, outlined below is Enron Energy
Service's
(EESI) proposed label calculation for review by your counsel.  EESI's product
is
a 100% renewable product for the first 5,000 kilowatt hours per month.  (The
renewable energy in this product may exceed the 5,000 kwh per month depending
upon available renewable supply and the level at which the customer credit is
set.)   For any customer that exceeds 5,000 kilowatt hours of renewable energy
per month, the remainder of their product would be comprised of the California
System Mix.  Because the percentage of renewable energy that the end use
customer receives is dependent upon their size, (i.e. smaller commercial
customer might actually be receiving 100% renewable energy whereas larger
customers might be receiving only a little more renewable energy than is
contained in the CA system mix), this makes the label calculation difficult.
It
is EESI's proposal to have two separate labels for this one product.  The
first
label (label A) would be 100% renewable energy (representing the first 5,000
kwhs per month).  The second label (label B) would be the California System
Mix.
EESI would explain to customers that depending upon the customer size, some
customers would be receiving "label A", provided they are 5000 kwhs per month
in
usage or less.  For those customers that exceed 5,000 kwhs per month, the
power
they receive would look closer to "label b" (the California System Mix).

EESI is under a tight deadline and is intending to notify customers of this
product in the September billing.  We would like to confirm with your counsel
if
this arrangement is agreeable to the CEC and meets the standards set forth in
SB
1305.  Please feel free to contact me with any questions regarding the label
calculation.

We greatly appreciate your assistance in this endeavor.

Sincerely,
Stacey Bolton
Manager, Environmental Strategies
Enron
713-853-9916


I know, I have these too.

 -----Original Message-----
From: 	Tran, Agatha
Sent:	Tuesday, October 23, 2001 5:27 PM
To:	Geaccone, Tracy
Subject:	FW: 2002 Plan Allocations from ENA to Other Business Units

FYI.  This must have been the fifth version already for us.
 -----Original Message-----
From: 	Leschber, Edie
Sent:	Tuesday, October 23, 2001 5:13 PM
To:	West, Terry; Smith, Jeff E.; Talley, Darin; Cockrell, Rainier; Galvan, Michael S.; Spoede, Amy; Smith, Kirk; Vargas, Hope; Ruffer, Mary lynne; Roquemore, Tobey; Massey, Rachel; Moryl, Heidi; Wood, Stephen; Copeland, Erin; Tran, Agatha; Pierce, Jody; Free, Darryl S.; Geaccone, Tracy; Helton, Susan
Cc:	Killen, Faith
Subject:	2002 Plan Allocations from ENA to Other Business Units

Attached, please find an updated allocations schedule which now reflects in a separate line the planned IT Infrastructure Allocation related to each support department that will be passed on to each Business Unit from ENA for 2002.

 << File: EA Allocations to Other BUs-10.22.01.xls >>
Also attached is related support:
 << File: Infrastructure Allocation BU's 10_22_01.xls >>
Thanks,
Edie


Kay:

Can we at least get the membership certificates signed by Tuesday?  This
seems to be the only document required in advance of closing.  If we can't
get the 80% membership interest certificate in the lender's possession on
the closing date, then there is a lien perfection issue for them to deal
with, and I thought we could accommodate their request and avoid the problem
altogether.  Please advise, as Greg and Isabel will be calling within an
hour or so to finalize the mechanics on this.  Thanks.

Carolyn M. Campbell
King?& Spalding
713-276-7307 (phone)
713-751-3280 (fax)
ccampbell@kslaw.com <mailto:ccampbell@kslaw.com>

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Monday, April 30, 2001 10:40 AM
To: Campbell, Carolyn
Subject: Re: Delta Documents

I've asked GE for the LOC by Wednesday, but I haven't gotten a response.

I'll have difficulty getting executed docs by Tuesday, since sigs are
coming from Portland.  I'll have to check to see what can be done.

Kay

"Campbell, Carolyn" <CCampbell@KSLAW.com> on 04/30/2001 10:02:44 AM

To:   "'kay.mann@enron.com'" <kay.mann@enron.com>
cc:

Subject:  Delta Documents

Kay:

Can you get executed documents back to me on Tuesday?  Greg has requested
that we send the original membership certificate representing the 80%
interest to the collateral agent Tuesday night by overnight delivery to
hold
in escrow until closing, in order that the collateral agent is in
possession
of the certificate (for purposes of legal opinions) upon closing on
Wednesday.  Greg is planning to fax signature pages of all of their closing
documents later today.  (I will be out of the office at a meeting with
another client most of the afternoon today).

There is one last question with GE dealing with the letter of credit for
the
retention amount, as this affects our disbursement instruction letter.  I
advised Greg that GE's normal practice was to send the retention L/C after
receipt of payment.  He is considering this, but may want to talk to GE
about the ability to present the L/C at closing.  Do you have any thoughts
on this?

Carolyn M. Campbell
King & Spalding
713-276-7307 (phone)
713-751-3280 (fax)
ccampbell@kslaw.com <mailto:ccampbell@kslaw.com>

Confidentiality Notice
This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure.  If you are not
the named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.

Confidentiality Notice
This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure.  If you are not the
named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.


Clem,

Completed.

Bob

Clem Cernosek
12/28/2000 11:26 AM
To: Daren J Farmer/HOU/ECT@ECT
cc: Robert Cotten/HOU/ECT@ECT, Edward Terry/HOU/ECT@ECT
Subject: HPL Meter #981488 PARIS TENASKA HPL

During the period of 12/1/99 through 12/3/99, the above meter has recorded
flow on the following days:

 Days    Mmbtus

 12/1/99              173
 12/3/99                39

               106

Deal #124400 was at this meter during November 1999, but it expired on
11/30/99.  Currently, these volumes are being booked under the HPL Strangers
Gas Contract.  Logistics needs either (1) Deal #124400 extended, (2) new
deal, or (3) approval to write-off these volumes to Unaccounted for Gas.
(Please print, sign, and return original to Clem Cernosek).

 ___________________________________________________
 Deal/Deal Ticket #/Customer (Seller/Buyer)

    OR

 _________________________________________________________
 APPROVAL to Write-off the volumes to Unaccounted for Gas Loss

Thanks, Clem