PennFuture's E-cubed is a commentary biweekly email publication  concerning
the current themes and trends in the energy  market.
?
PennFuture, which has offices in Harrisburg, Philadelphia  and Pittsburgh, is
a statewide public interest membership organization, which  advances policies
to protect and improve the state,s environment and  economy.? PennFuture,s
activities include litigating cases before  regulatory bodies and in local,
state and federal courts, advocating and  advancing legislative action on a
state and federal level, public education and  assisting citizens in public
advocacy.
?
The following was also released today as a white paper on the status of
electric competition in Pennsylvania. It can be downloaded in .pdf format
under  the Pressroom & Publications section of our website
(www.pennfuture.org) by clicking on the  Reports button.
?
August 29, 2000
Vol. 2, No. 17
?
On the Watch for Icebergs
?
The voyage
The real danger for Pennsylvania in  observing California's ill-fated
approach to electric restructuring is that it  tempts smugness, to which
Pennsylvania could easily fall prey, since it has  chartered a different, and
so far, much more successful path from monopoly to  competition. Pennsylvania
primarily differs from California by its sincere  commitment to create
genuinely competitive retail markets. While many states say  that they want
competition and have even passed laws that supposedly require it,  only
Pennsylvania and a handful of other states have matched their words with
pro-competition policies.
?
To deliver on its commitment of a genuinely competitive retail market, the
Commonwealth is implementing unique and specific policies that should give
customers real choices and break the dominance of incumbent utilities. Among
Pennsylvania,s more notable transition measures are much higher shopping
credits, rejection of accelerated stranded cost recovery, longer transition
periods, competitive default service for a portion of the non-shopping load,
and  retail rate caps that continue until at least 2004 and as late as 2010.
?
But despite the different route taken, this is no time for smugness.
Pennsylvania must be alert and learn from, but not follow, California's wake.
On  electric policy, California's ship of state has sailed like the Titanic,
ignoring warnings of icebergs ahead, while maintaining high speed on the
open  sea.
?
The national press, of course, flocks to cover news of the shipwreck. As
always, bad news is more dramatic, therefore judged to be the better story
than  the good news of Pennsylvania's success. Unfortunately, the nation as a
whole  may draw the incorrect lesson from California's voyage that electric
restructuring is unsafe at any speed, or on any course. That would be as
erroneous an assumption as deciding, based on the Titanic's ill-fated
voyage,  that ocean travel is too dangerous.
?
Calm waters now, but dangers ahead
Pennsylvania,  however, would be just as incorrect to conclude that its
successful first three  years and ten months of transition means no more
icebergs lie ahead. At least  two big obstacles are now visible.
?
First, the wholesale market in western Pennsylvania is not genuinely
competitive primarily because no Independent System Operator (ISO) covers
the  region,s utility service territories. The absence of a competitive,
transparent,  and liquid wholesale market in western Pennsylvania creates a
major threat to  the success of retail competition there. Taking strong
action now to require  that Allegheny Energy, Duquesne Light, and
Pennsylvania Power join the already  functioning PJM Independent System
Operator will keep the transition on course  in western Pennsylvania.
?
Second, throughout Pennsylvania, there is now inadequate demand-side
response to market prices. This problem partly results from too little
deployment of time-of-use meters, uncertainty about terms for competitive
access  to those time-of-use meters that are deployed, and too little use of
available  appliance control technology. In order to give customers more
control over their  bills and to limit wholesale market price spikes,
customers must be able to  change their demand in response to wholesale
prices.
?
Even though the poor state of the wholesale market in Western Pennsylvania
and the limited demand-side response to price are substantial difficulties,
Pennsylvania's success may cause us to ignore their presence.
?
Since Pennsylvania began its transition to retail electric competition on
January 1, 1997, the Commonwealth has built the most successful retail market
in  the nation, and possibly the world. According to the Pennsylvania
Department of  Revenue (see: www.revenue.state.pa.us), electric  competition
has saved consumers $3 billion and will create 36,000 new jobs by  2004. And
since January 1, 1999, 528,000 customers have chosen a competitive  supplier,
even though high wholesale market prices this summer encouraged some,  mostly
larger, customers to return to their utility. Despite those difficulties,
more customers have switched to a new supplier in Pennsylvania than in the
rest  of the nation combined. An incredible 30 percent of Duquesne Light's
residential  customers have switched. Allegheny Energy's innovative municipal
aggregation  program and Duquesne Light's transition policies deserve much
praise for this  result. Equally noteworthy are the approximately 80,000
customers that have  purchased cleaner or renewable energy products, mainly
thanks to the green  trailblazing by GreenMountain.com.
?
Of course, GreenMountain.com is not alone in the marketplace. More  companies
are actively competing for accounts in Pennsylvania than in any other  state.
New Internet retailers of electricity and other products like Utility.com
and OnlineChoice have entered the market. Just yesterday, The New Power
Company,  a joint venture of Enron, AOL and IBM, announced it had entered the
PECO Energy  service territory and guaranteed residential customers savings
up to 25% on the  electricity portion of the bill. Between traditional
suppliers, Internet  retailers and green marketers, sufficient market entry
has occurred to make  competition intense at times. In the PECO Energy
market, as many as 19 suppliers  at one time have competed for residential
customers.
?
In 2000, this competitive intensity built 1,000 megawatts of new generation
within the PJM power pool. By 2005, PJM expects another 15,000 megawatts to
be  generated mainly from natural gas power plants, which are 95% to 99%
cleaner in  emissions of sulfur dioxide and nitrogen oxide than many coal
plants. Renewable  energy technologies will provide the remaining new supply
that does not come  from natural gas.
?
Indeed, the year 2000 ushered in Pennsylvania's first two operating wind
energy farms. Both wind farms were financed as a result of successful
marketing  of renewable energy products to retail customers, primarily by
GreenMountain.com  with a helping hand from Community Energy Inc. The Green
Mountain 10-megawatt  wind farm in Somerset County is one of the largest east
of the Mississippi.
?
Through their purchases of renewable energy and cleaner energy products,
Pennsylvania,s families and businesses are acting powerfully to change the
electricity industry and to reduce smog, acid rain, and emission of global
warming gases. Switching to renewable energy products to power their homes
and  businesses is the single most effective thing Pennsylvanians can do to
clean  their environment. Every residential customer that switches to a 100%
renewable  product on average prevents an amount of pollution that is
equivalent to not  driving 20,000 miles, taking 1.7 cars off the road or
planting 950 trees.
?
All this is indeed a remarkable record of success, of which Pennsylvania
should be proud. But to avoid peril, Pennsylvania's policymakers must
quickly  identify the icebergs ahead, continue forward at a safe speed, and
change course  as needed. Proceeding in this sensible fashion is easier
because Pennsylvania  began as early as January 1, 1997 its journey into
competition. By beginning  early, Pennsylvania could opt for a steady
transition pace and transition  periods that are long enough to allow the
development of genuinely competitive  wholesale and retail markets before
fully ending rate regulation of  generation.
?
The transition to full generation price deregulation will last until at
least 2005 and as long as 2010 in the various service territories. While
allowing utilities to recover approved stranded costs, Pennsylvania
generally  has not accelerated stranded cost recovery. To balance stranded
cost payments to  utilities, electric rates offered by those utilities are
capped. Utilities,  transmission and distribution rates are capped at January
1, 1997 levels until  December 31, 2004 in PPL, GPU, and probably Duquesne,
until December 31, 2005 in  Allegheny Energy, and until Dec. 31, 2006 in PECO
Energy.
?
Generation rates of utilities are also capped. The generation rate caps  last
at least until 2003 and as long as 2010. Specifically, generation rates are
capped in Duquesne until December 31, 2003, December 31, 2008 in Allegheny
Energy, December 31, 2009 in PPL, and December 31, 2010 in PECO Energy and
GPU.  The rates are normally capped at January 1, 1997 levels until 2005, at
which  point the rate cap period continues, with modest increases allowed
during the  remainder of it.
?
Avoiding the obstacles
Although this rate of speed is  sensible, Pennsylvania must make an immediate
course correction to ensure that,  by 2002, the service territories and
customers of Allegheny Energy, Duquesne  Light Company, and Pennsylvania
Power are served by PJM * an effective, approved  Independent System Operator
(ISO) that now serves two-thirds of Pennsylvania.  Presently, Allegheny,
Duquesne and Penn Power are not part of any ISO and the  absence of an ISO
makes it impossible to build healthy, competitive wholesale  and retail
markets in those regions.
?
To repeat, neither wholesale nor retail competition can work if all service
territories in Pennsylvania are not part of an ISO. The ISO ensures that the
wholesale electric market is workably competitive, the power supply is
reliable,  and consumers are protected from anti-competitive market
manipulation.
?
Presently, the wholesale market in western Pennsylvania is not genuinely
competitive. The poor state of wholesale competition exists because its
utilities are not part of an ISO that would expand the size of the market in
which electricity could be freely traded. The Duquesne service territory in
particular would have more choices, and possibly lower prices were it part of
a  viable ISO.
?
At this point, the only viable ISO that Allegheny, Duquesne Light and Penn
Power could join is PJM. Yet, no progress in requiring Allegheny and Duquesne
to  join PJM has been made since 1998, when the Pennsylvania Public Utility
Commission (PUC) made membership in PJM or an effective ISO a condition of
the  proposed Allegheny/Duquesne merger. When the merger plans collapsed,
ISO  membership and expansion of PJM disappeared from the radar screen.
?
However, it is PennFuture's understanding that Chairman Quain has put PJM
expansion back on the PUC's agenda. If so, he is doing the right thing.
PennFuture knows that APS and Duquesne Light, in part due to Chairman
Quain's  prodding, will soon decide whether they will voluntarily join PJM.
Indeed, we  believe that Duquesne Light would like to become a PJM member,
but needs  Allegheny to join as well for Duquesne's customers to gain the
full benefits of  PJM membership.
?
In order to expand into western Pennsylvania, PJM itself must remove a
barrier by abolishing its installed capacity (ICAP) rule. Allegheny,
Duquesne,  and Penn Power have never adopted PJM,s peculiar ICAP rule. Of
course, without  ICAP the western Pennsylvania utilities have operated as
reliably or more so  than the existing PJM utilities. PJM expansion would be
the final nail in the  ICAP coffin, yet another benefit of expanding PJM.
?
The recently announced proposed merger between First Energy and GPU creates
another chapter in the PJM tale. GPU is part of PJM. First Energy is not.
Therein lies the seed of a possibly disastrous conflict. The First Energy
and  GPU merger will not be in the public interest and not be approved unless
more  competitive choices, more consumer savings, more clean energy, or more
demand-side response is added, or without iron-clad commitments that GPU
will  remain within PJM and that First Energy will join PJM.
?
Given the uncertain outcome of the ongoing informal discussions about the
expansion of PJM, Pennsylvania's officials need to let all concerned know
that,  if they do not join PJM voluntarily, they will be ordered to do so.
The PUC may  be able to do this with existing authority. If not, the
Pennsylvania General  Assembly must act.
?
The second iceberg that lies in Pennsylvania's path to electric transition
is enabling first larger customers, and eventually all consumers, to change
their electric usage in response to market prices. All consumers must be
given  the ability to alter their demand in real time and before they get
their  electricity bills. They must be immediately empowered in this way, and
prior to  the expiration of generation rate caps.
?
Enabling retail consumers to change demand in response to market prices  will
powerfully limit wholesale and retail prices. The market monitoring unit of
PJM calculates that a 1 percent reduction (about 500 mW) in demand can
reduce  market prices by about 10 cents/kWh. Customer-determined demand
modification and  reduction is vital to protecting consumers * businesses and
families * from  unreasonable price spikes. Increasing the ability of
consumers to change demand  in response to price also offers environmental
benefits from reduced emissions  of pollutants from power plants.
?
Empowering consumers to change their demand in response to price requires
installation of advanced meters that record usage hourly and appliance
control  technology. Equipment that allows the remote resetting of
thermostats is now  available and should be made widely available to
consumers. So far, few, if any,  competitive suppliers are offering metering
services. Market forces have not  been sufficient to universally deploy
time-of-use meters, though Duquesne and  PECO Energy should be complimented
for widely deploying the technology in their  service territories.
?
PennFuture, therefore, recommends that Pennsylvania require the  installation
of advanced meters by January 2004 for all commercial and  industrial
customers with demand greater than 50kW. By 2010 all customers must  have
their usage recorded by an advanced meter. The distribution utilities  should
install meters for consumers who are not offered advanced meters by
competitive suppliers. Given the investments already made by Duquesne and
PECO  Energy, this recommendation is not onerous and it is achievable.
?
As important as installing time-of-use meters is ensuring reasonable access
to those meters by all market participants. Competitive suppliers when
serving  customers should be allowed to lease the use of any time-of-use
meters that have  been deployed. Terms for leasing must be reasonable and
allow the offering of  competitive power products that allow customers to
decide whether and how to  change their usage.
?
Other recommendations
In addition to expanding PJM to  western Pennsylvania and increasing
demand-side response to market prices,  PennFuture recommends that a summit
of the Pennsylvania Congressional delegation  be convened so that it may push
for comprehensive federal legislation that would  remove barriers to
wholesale competition and cleaner energy on a national level.  Pennsylvania
has a lot at stake in ensuring that national markets are  competitive and
cleaner. Unfortunately, restructuring legislation is now in the  grips of
Washington gridlock. The Pennsylvania delegation can play an important  role
in fashioning national markets that help Pennsylvania steer clear of
icebergs.
?
We further recommend that PJM or the PUC investigate whether its auction
rules for the hourly spot market promote healthy wholesale competition.
Questions have been raised about whether the existing rules that allow the
last  unit dispatched to set the price of the whole pool are susceptible to
anti-competitive strategic bidding. This matter is complicated and important.
It  should be considered carefully. The best means of doing so is to create a
formal  process that allows all concerned parties an opportunity to comment.
Either PJM  of the PUC should create this opportunity.
?
Finally, the recent Pennsylvania Department of Revenue study provides ample
reason to repeal the Revenue Neutral Reconciliation (RNR) surcharge to the
electricity Gross Receipts Tax (GRT). The RNR shrinks the purchasing power
of  the shopping credit and produces uncertainty in year-to-year supplier
offers  because the RNR changes each year to make up a deficit in direct
electricity tax  revenues to the General Fund. According to the Department of
Revenue, by fiscal  year 2004, sales tax and personal income tax gains alone
from electric  competition are estimated to be over $47 million. Given that
an additional $10  million in state tax revenues would reduce the RNR rate by
one mill, and that  the decision on whether to eliminate the RNR will be made
in 2003, the  Legislature should consider phasing out the RNR at this time.
?
PennFuture believes that making these course corrections will avoid the
icebergs that lie ahead and continue Pennsylvania,s successful transition to
full electric competition.

E3 is available for reprint in newspapers and other publications.  Authors
are available for print or broadcast.
 - Vol2No17b_82300.doc


---------------------- Forwarded by Chris Germany/HOU/ECT on 09/25/2000 07:59
AM ---------------------------

Jerry W Germany <germanj@basf-corp.com> on 09/25/2000 07:51:34 AM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: (no subject)

---------------------- Forwarded by Jerry W
Germany/KFF/FREEPORT/BASF-CORP/BASF
on 09/25/2000 07:48 AM ---------------------------

Jergerm4178118@cs.com on 09/23/2000 05:06:24 PM
To:   Jerry W Germany
cc:   jergerm
Subject:  (no subject)

Your email address

Jergerm4178118 is my login name and sunshine is the password.    I got it
running last night so if you would like you can go in and create yourswelf a
screen or login name.   Oh yeah, the above is my e-mail address also.


Please put on my calender.

 -----Original Message-----
From: 	Black, Tamara Jae
Sent:	Monday, October 08, 2001 4:32 PM
To:	Presto, Kevin M.; Sturm, Fletcher J.; Benson, Robert; Gilbert-smith, Doug; Davis, Mark Dana
Subject:	Trading Track Dinner

Please let me know ASAP if you will be attending the Trading Track Dinner for Lavorato:

October 16th
Place - TBD
Time - TBD

Thanks

T.Jae Black
East Power Trading
Assistant to Kevin Presto
off. 713-853-5800
fax 713-646-8272
cell 713-539-4760


We are fully executed.

I will fax a copy to your attention and you can distribute to your people as
needed.

thanks for all your help.

Robert


This request has been pending your approval for  5 days.  Please click http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000076650&Page=Approval to review and act upon this request.

Request ID          : 000000000076650
Request Create Date : 11/19/01 2:40:19 PM
Requested For       : punit.rawal@enron.com
Resource Name       : Market Data Kobra Power
Resource Type       : Applications


THANKS FOR THE GRASS OFFERING, DONT WAIT ON ME I DONT THINK I CAN GET TO IT THIS WEEKEND AND AFTER THAT ITS NO GOOD, THANKS ANYWAY. IF MY NEEDS CHANGE, I KNOW WHO TO CONTACT

 -----Original Message-----
From: 	Knipe3@aol.com@ENRON [mailto:IMCEANOTES-Knipe3+40aol+2Ecom+40ENRON@ENRON.com]
Sent:	Thursday, June 07, 2001 7:34 PM
To:	Chet_Fenner@bmc.com; erwollam@hotmail.com; Parks, Joe; brianc@saltgrass.com
Subject:	Re: golf cart

what about my juices, E ?   what do you want me to squir... i mean paint?


You are welcome.  Take care.  Mark

	Peter Keohane
	01/16/2001 10:34 AM

		 To: Mark E Haedicke/HOU/ECT@ECT
		 cc:
		 Subject: Thanks

Mark, thanks for the confidence and support you continue to show in me with
the recent promotion.  I hope to meet expectations.

Peter.


Tony & Frazier -- several comments from TW Commercial.

Page 1:  Streamlined Credit -- what does "interested parties" mean? parties
interested in bidding, or parties interested in us having a look at their
credit ?  Probably need to make this clear; on first reading, looks like
obtaining credit approval ahead of time is optional.  (Don't we want everyone
to get approval ahead of bidding?).

Page 2:  you state that "individual bid transactions are kept confidential."
What is confidential:  the identity of the shipper?  the bid itself?  In TW's
IOS, we post the individual bids as they come in, but do not post the name of
the shipper.  We feel that the posting of the dollar amount bids helps us get
a higher rate as shippers bid against each other, and likewise recommend
online bids be posted in real time.  I notice you call them "sealed bids" on
page 4 -- not true if we're going to show them.

Page 3:  why not request a little more emphatically that shippers establish
creditworthiness at least several days in advance of bidding?  Especially
since we plan to attract brand-new shippers by offering this service.  Our
credit dept. folks would probably appreciate not having to do it all between
2 and 4 on bid day.

If we're asking that shippers submit bids to 3 decimal places, our example
should be to 3 decimal places (e.g., $0.351).

Page 7:  "an" Capacity Trading Agreement should be "a" Capacity Trading
Agreement.

Page 8:  So we don't appear low-tech, let's go ahead and tell shippers we
plan to have the Request for Service and the service agreement available for
online submittal at some point in the near future.

Also, we've never asked shippers to submit a Request for Service with each
bid.  A shipper may bid and re-bid several times over the bidding process.
They really only need to submit the Request for Service at the time of, or
prior to, the first bid.  I recommend stating "You must submit a Request for
Service prior to making your initial bid" so they don't think they have to
submit a new one every time they revise their bid.

Page 9:  Under "When TW will Respond":  need to specify how notification will
be sent.

Page 14:  Column that says "Price" should say "Rate" (for a second there we
thought you were talking about gas prices).  Also, please use example rates
that are more realistic for TW (in the $0.240 to $0.299 would be great...)

Thanks for all your hard work on this.  I'll be here if you have any
questions.

05/17/2000 01:23 PM
Tony Pryor
Tony Pryor
Tony Pryor
05/17/2000 01:23 PM
05/17/2000 01:23 PM
Sent by: Janet Cones
To: Julia White/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Steve
Hotte/Corp/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Drew
Fossum/ET&S/Enron@ENRON, Frazier King/FGT/Enron@ENRON, Tony
Pryor/ET&S/Enron@ENRON, Shelley Corman/ET&S/Enron@ENRON, Eva
Neufeld/NPNG/Enron@ENRON, Maria Pavlou/ET&S/Enron@ENRON, Susan
Scott/ET&S/Enron@Enron
cc:

Subject: TW Webtext on EOL

Attached is a revised draft of the webtext. You will note that we have added
the transportation service request form in the text. The bidder will have to
print the form, fill it out and fax it to us because it is our understanding
that we can't work it into the website for completion and execution online in
the time frame for July 1 service.

Also, please note that (1) we have changed the some of the information in the
Account Manager grid and (2) the attached draft assumes that the Bid List,
from the original text, is the same document as the Account Manager page .

We are assuming that we would not be able to get the Transportation Service
Agreement available for online execution by clicking for July 1. Thus, we
will handle the service agreement manually. However, for subsequent months we
contemplate establishing contracting procedures so that the service agreement
can be executed online by a click.

Frazier and Tony


Thanks for the invitation, but I will be returning from Europe.  Mark


Best day is October 26.  Could make October 25 work.

October 24 and November 1 will not work for me.  --Sally Beck

 -----Original Message-----
From: 	"Marilou Schopper" <MSCHOPPER@houston.org>@ENRON [mailto:IMCEANOTES-+22Marilou+20Schopper+22+20+3CMSCHOPPER+40houston+2Eorg+3E+40ENRON@ENRON.com]
Sent:	Friday, October  5, 2001 5:16 PM
To:	Al Calloway (E-mail); Alex Chae (E-mail); Ann Lents (E-mail); Brian Landrum (E-mail); Craig Lieberman (E-mail); David Gochman (E-mail); Dorothy Ables (E-mail); E. D. Wulfe (E-mail); E. Staman Ogilvie (E-mail); Elijio Serrano (E-mail); Eugene H. Vaughan Jr. (E-mail); Frank Michel (E-mail); Fred Williams (E-mail); Gaurdie Banister (E-mail); Gene L. Locke (E-mail); James R. Royer (E-mail); Jeff Rose (E-mail); Ken Wells (E-mail); Lee Cutrone Jr. (E-mail); Lois Stark (E-mail); Massey Villarreal (E-mail); Max Castillo (E-mail); Michael Holthouse (E-mail); Milton L. Scott (E-mail); Nancy T. Chang (E-mail); Olga Moya (E-mail); Paul W. Hobby (E-mail); Randy Velarde (E-mail); Bowen Jr., Raymond; Rene Paul Joubert (E-mail); Beck, Sally; Sonceria Messiah-Jiles (E-mail); Walt Mischer Jr. (E-mail); Wellington Yu (E-mail); Yolanda Londono (E-mail)
Cc:	Margaret Vaughan (E-mail); balexander@neteze.com
Subject:	The Center for Houston's Future -- Diversity Field Trip

From Milton Scott and Walt Mischer:

In an effort to ensure that the largest number are able to participate
in our Diversity Field Trip, four more dates are being proposed for
consideration.

Diversity Field Trip Newly Proposed Dates

October 24
October 25
October 26
November 1

Please reply with your availabilities before noon, Tuesday October 9.
Thank you for your commitment.

> Marilou A. Schopper
> Senior Vice President
> Center for Houston's Future
>
> Address:  1200 Smith, Suite 700, Houston, TX 77002-4400
> Phone: 713-844-3614
Cellular:  713-857-3506
> Fax: 713-844-0214
> E-mail: mschopper@houston.org
>
> Please learn more about us on the World Wide Web at:  www.houston.org
>
>


Laurie

As Discussed.


_________________________________________________________________
Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp

 - 10-25 1000 Report.xls


thanks for the summary - as this spill had high visibility through out Enron
Corp (Jeff and Joe) - if from your review - you can say things have been
handled properly as far as the clean up is concerned  - then it would be good
to convey this message on up the ladder.  If we can't say things have been
handled properly and clean up is satisfactory - then I would like your shop
to dispatch a team on behalf of Enron - so that we can either reach that
conclusion or determine where we have fallen short.

Please let me know -

thanks

Pete

Michael Terraso@ENRON
06/01/2000 06:30 AM
To: Peter Weidler
cc: Steven Kean, Henry Van

Subject: Transredes Oil Remediation Efforts

Pete,

as you are aware, two weeks ago,  I surveyed the Oruru Lake and the
Desaguadero River to the original source of the January oil leak with Henry
Van and Tony  Henshaw.  I was pleased with what I observed both from the
helicopter and on the ground.   We did not see visible oil rainbows, oil or
oil stains either in the lake or  on the river bed, with the exception of a
close up inspection of a limited area of water reeds that had been red
flagged by the cleanup team. Even in that area  it was difficult to see any
residual without it being pointed out by Tony Henshaw.  Tony explained that
they were waiting for the property owners permission to initiate cleanup
operations there.

We  observed from the air some of the plastic bagged cleanup materials staged
on banks of the river bed.  Tony again explained that they were awaiting  the
property owners permission to remove them  .  I was told that the bags have
now been disposed at  the Sica-Sica landfill area .

It was apparent that a diligent effort has been made to mitigate the oil
spill.

Henry will follow up with a more detailed account.

Mike


1-Is there anything left to do to change the name under the LLC agreement to
enovate?
   2-I am attaching the overview cash protocol that was discussed during our
meeting with Treasury, Accounting and Finance.  Who can begin crafting a
services agreement around this template?

That's it for this moment.

Thanks,

Gregg


Here is an update of some recent Enron developments.

Enron Europe Closes Certain Operations

Following Enron's credit rating downgrade yesterday and the impact that had on Enron Europe's ability to trade, Enron Europe has asked a court to appoint an Administrator.  What this means is that PricewaterhouseCoopers has been appointed the Administrator to handle the liquidation of the company's major physical assets and trading positions.  This action does not include Enron Credit, Enron Direct, Enron Metals, Teesside Power Station or the utilities and service businesses at the Wilton chemical complex.  It also does not include Wessex Water or power plants in Turkey, Italy and Poland.

Efforts are being made to preserve as much of the business as possible.  There is already interest by outside parties to buy Enron Europe's metals business, and negotiations are expected to lead to a successful deal in the near term.

This action will impact a significant number of Enron Europe's employees.  Every effort is being made to retain as many employees as possible who are part of businesses that may be preserved.

Enron Appoints New Board Member

Yesterday, Enron announced the election of Raymond S. Troubh to the Board of Directors.  Mr. Troubh will chair a newly-formed Special Litigation Committee of the Board to evaluate claims in shareholder and other derivative lawsuits.  He will also serve on the Special Committee set up to investigate all of the SEC-related matters.  Mr. Troubh is a financial consultant in New York City and has been a non-executive director of more than 25 public companies.  Board member William C. Powers, Jr. will also serve on the Special Litigation Committee.

Enron Evaluates Dividends

Today Enron announced that it is evaluating whether previously declared dividends will be paid on Enron common stock and other Enron equities.

New Enron Employee Q&A

A new Q&A has been posted to <http://home.enron.com/updates/> based on recent developments and employee concerns.


I got a page from Evelyn M.  She said that Jackie Stewarts mother is in the
hospital with a growth on her pancreas and her baby Jarred is in the hospital
with with pneumonia.

We are standing for full healing for Jarred and no sickness or pathology for
her
mother -- and for the Spirit of God to lead and guide Jackie and her family.

We will all stand on the promise of 1 Peter 2: 24  "Whoe his own self bare our
sins in his own body on the tree , that we, being dead to sins, should live
unto
righteousness: by whose stripes ye were healed."

Love,
J.


Please plan to attend the kick- off of the Process Leveraging and Reporting
teams, two of the seven teams that I introduced at the conference in San
Antonio.  This full-day meeting will begin at 8 am on Wednesday, October 18
at the Crown Plaza Hotel, 2222 West Loop South.  This is an important next
step in completing the SAP implementation and achieving the benefits that we
identified before Project Apollo and Beyond began.

The objectives of this meeting will be 1) to identify management's
information needs and priorities related to the accounting and reporting
processes and 2) to prioritize and focus the efforts of the Process
Leveraging and Reporting teams based on management's needs and priorities.
Therefore, it is very important for you to attend, to ensure that your BU's
needs and priorities are considered in these projects.  I realize that this
is a very busy time, but it will probably continue to be busy through yearend
close.  If we can get started as soon as possible, it is my hope that we can
complete the projects and see the results soon, possibly by the January close.

Attached is a list of questions and other information that you should
assemble and bring with you to the meeting so that we can make
better-informed decisions.  We will collect your completed information sheets
to use for further analysis and follow-up after the meeting.  If you have
questions in completing the pre-work items, please contact Jan Johnson at
x33260.

A preliminary agenda is also attached.   Please plan to attend the entire
day, as individual segments of the agenda will not make sense without full
participation

Please RSVP to Dortha Gray (x35903) by tomorrow at 2pm.  A continental
breakfast and buffet lunch will be provided.  If you are unable to attend,
let me know who will represent you.  Thanks for your help.


I am sorry I am just getting back to you, but I had to check with my whole
legal team around the world, and I just heard back from the final critical
one.  We are OK with them trading the products below.  However, on physical
power, they can only trade west power.  Stephanie, will you need to open them
up so they can trade immediately?

	Walter Guidroz/ENRON@enronXgate
	04/23/2001 05:35 PM

		 To: Lisa Lees/ENRON@enronXgate, Stephanie Sever/ENRON@enronXgate, Tana
Jones/HOU/ECT@ECT
		 cc:
		 Subject: FW: PG&E Energy Trading Entities

Lisa/Stephanie, could you please ensure that the trading profiles for each of
the three PG&E entities are changed below such that by tomorrow morning they
will be able to transact once we restore their headroom once we enter it into
the system?

Tana, are you OK with restoring the changes reflected below?  I'm thinking
that since they had this transact ability once before, that it should be OK.

PLEASE LET ME KNOW IF THERE WILL BE ANY PROBLEMS.

Thanks all!

Walter

 -----Original Message-----
From:  Moran, Tom
Sent: Monday, April 23, 2001 5:08 PM
To: Guidroz, Walter
Subject: FW: PG&E Energy Trading Entities

Walter,

Could you ensure that the profiles are set-up accordingly and that CAS is
populated with a $5million minimum for each of these cp,s.

I do not want to turn them on in Datamanager until tomorrow am.

tm

 -----Original Message-----
From:  Conwell, Wendy
Sent: Monday, April 23, 2001 4:59 PM
To: Moran, Tom
Cc: Bradford, William S.; Ngo, Tracy; Sacks, Edward; Radous, Paul
Subject: PG&E Energy Trading Entities

Tom,

Per our discussion with Bill, please set up the following PG&E counterparties
on EOL providing for transactions having a maximum tenor of 12 MONTHS:

PG&E Energy Trading - Power L.P.-------> Physical Power
PG&E Energy Trading, Canada Corporation---------> Physical Canadian Gas
PG&E Energy Trading - Gas Corporation---------->Physical and Financial US Gas

Thanks,
Wendy


I asked Mike Day to make sure that we were kept in the distribution loop on this stuff.

Best,
Jeff

-----Original Message-----
From: JBennett [mailto:JBennett@GMSSR.com]
Sent: Tuesday, October 23, 2001 5:25 PM
To: Jeff Dasovich (E-mail); Jim Steffes (E-mail); Sue Mara (E-mail)
Subject: FW: Stipulation Comments

-----Original Message-----
From: Dan Douglass [mailto:douglass@energyattorney.com]
Sent: Tuesday, October 23, 2001 11:05 AM
To: Jeanne Bennett; Mike Day
Cc: Robert C. Williams
Subject: Stipulation Comments

Mike, Jeanne and Bob....the draft looks good...I have noted a few possible
changes and one question.  Let's discuss at your convenience.

With regard to interest, APSES asked for an audit.  Why don't we at least
ask for interest and use it at least as a trading point to get the
calculation after Jan. 18 pinned down.

Dan

Law Offices of Daniel W. Douglass
5959 Topanga Canyon Blvd.  Suite 244
Woodland Hills, CA 91367
Tel:   (818) 596-2201
Fax:  (818) 346-6502
 <mailto:douglass@energyattorney.com> douglass@energyattorney.com


your sexual preference is all yours baby

thnx for the head count though see you there
dq

 -----Original Message-----
From: 	"Jackson, Desean" <djackson@rpsionline.com>@ENRON
Sent:	Tuesday, January 29, 2002 3:18 PM
To:	Quigley, Dutch
Subject:	RE: Superbowl Party

No fianc?e' but I may have a buddy with me.

> -----Original Message-----
> From:	Dutch.Quigley@enron.com [SMTP:Dutch.Quigley@enron.com]
> Sent:	Tuesday, January 29, 2002 3:19 PM
> To:	djackson@rpsionline.com
> Subject:	RE: Superbowl Party
>
> just bring some money for squares and see you there
> are you coming by yourself or will there be 2 ?
>
>     -----Original Message-----
>    From:   "Jackson, Desean" <djackson@rpsionline.com>@ENRON
>    Sent:   Tuesday, January 29, 2002 2:56 PM
>    To:     Quigley, Dutch
>    Subject:  RE: Superbowl Party
>
>    Cool.  What you want me to bring?
>
>    > -----Original Message-----
>    > From:      Quigley, Dutch [SMTP:Dutch.Quigley@ENRON.com]
>    > Sent:      Tuesday, January 29, 2002 2:57 PM
>    > To:   "Kevin" <klyn@pdq.net>@ENRON; Brian Gibson; Dave Molnar; Desean
>    > Jackson; Ernie Martinez; Jerry Portele; Joe Ramirez \(Work\); John
>    Riches
>    > \(Work\); Mark Molnar \(Work\); Ricardo Mihaly; Richard Smith; Robert
>    Bent
>    > Cc:   kayquigs@yahoo.com; bwdunlavy@yahoo.com
>    > Subject:   Superbowl Party
>    >
>    > Super Bowl XXXVI is Here
>    > So lets all get together and cheer
>    >
>    > New England and St Louis are in the Big game
>    > along with the return of the Bud Frogs, so it will not be lame
>    >
>    > 4 pm is the time to arrive
>    > all need to come to keep things alive
>    >
>    > The squares will all be lined in their Row
>    > so call ahead if you will be slow
>    >
>    > Dutch
>    > 713-533-0882
>    >
>    >  <<128 Oak Place.doc>>
>    >
>    >
>    >
>    >
>    >
>    >
>    >
> **********************************************************************
>    > This e-mail is the property of Enron Corp. and/or its relevant
>    affiliate
>    > and may contain confidential and privileged material for the sole use
>    of
>    > the intended recipient (s). Any review, use, distribution or
>    disclosure by
>    > others is strictly prohibited. If you are not the intended recipient
>    (or
>    > authorized to receive for the recipient), please contact the sender
> or
>    > reply to Enron Corp. at enron.messaging.administration@enron.com and
>    > delete all copies of the message. This e-mail (and any attachments
>    hereto)
>    > are not intended to be an offer (or an acceptance) and do not create
>    or
>    > evidence a binding and enforceable contract between Enron Corp. (or
>    any of
>    > its affiliates) and the intended recipient or any other party, and
> may
>    not
>    > be relied on by anyone as the basis of a contract by estoppel or
>    > otherwise. Thank you.
>    >
> **********************************************************************
>    >  << File: 128 Oak Place.doc >>


changed

Kerri Thompson@ENRON
02/13/2001 02:17 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: apb

521693 broker has us selling

thanks


Thanks
Anything fine but if individual orders are being followed, a large salad with
vinaigrette dressing and some maque chou (sp?).


that is nasty


Could you please extend the guest id that expired for FTEnergy, the publisher
of gas daily.  Please call me
when this is completed.  We need to have these folks view our daily indices.

Thanks,

Kevin Ruscitti
x3-6320


7/3 you mf

-----Original Message-----
From: Lavorato, John
Sent: Saturday, September 08, 2001 5:11 PM
To: Arnold, John
Cc: Lavorato, John
Subject:

baltimore -10
detroit +5
tampa bay -9
oakland -3
new orleans / buffalo under 37 .5
new england -1
seattle -3.5
jacksonville -3
carolina +10
st louis -3
chargers -2.5 go flutie
miami + 6

All 150

Used the Houston Cronicle on Friday.


The box will be turned on Wednesday.  Thanks for the email regarding my
baby.  Talk to you in the morning.

Sincerely,

Mike Grigsby


This is what I have for Feb.  I still need to update the 27th and 28th
volumes.  Let me know if you have questions.


Mark,

Please let me know when you want this language included (i.e. when you and
others are happy with it)

Thanks,

Dave
---------------------- Forwarded by David Forster/LON/ECT on 05/10/99 18:47
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  Tana Jones                           04/10/99 16:55

To: David Forster/LON/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT
cc: Mark E Taylor/HOU/ECT@ECT
Subject: Revised Online Collateral Arrangement Language

At Mark's request, I am transmitting proposed changes to the collateral
arrangement language in the Online GTC's.  Please let me know if it meets
with your approval.

8.  Collateral Arrangements.  Counterparty shall (at Enron,s request) from
time to time and at Enron,s option either:  (i) within one Business Day of
such request by Enron, provide to Enron a letter of credit in respect of
Counterparty's obligations under any Transaction, in such form and for such
amount and from such issuer, as is acceptable to Enron in its absolute
discretion; or (ii) within such period as is specified by Enron, provide for
the benefit of Enron a guaranty from a party, in such form and for such
amount as is acceptable to Enron in its absolute discretion.  Failure so to
provide such letter of credit or guaranty or any default under such letter of
credit or guaranty shall constitute a default hereunder giving rise to the
immediate right of termination by Enron under this Transaction.


Attached are the minutes from the February 6 Corporate Responsibility Task
Force meeting.   Also attached is a chart outlining in more detail the
metrics for success for each subcommittee.  The second document is the result
of a meeting among subcommittee chairs and other interested task force
members to help flesh out their purpose as a step toward developing a
measurable work plan.

Let me know if you have questions or comments.  If you have not been
contacted already, you will be hearing from your subcommittee chairs shortly
regarding your next subcommittee meeting.  We also plan to set the date of
the next overall task force meeting within the next couple of weeks.


I hope it was not because of me. I slept fine.  (Maybe you need some physical therapy!)  Anyway - trying to plan trips out west.  It is such a pain - I hate trying to get it all together to make it worthwhile.  If you ever want to IM me, my id on yahoo is kward63.  I hope you have a good day!

 -----Original Message-----
From: 	Heintzelman, Pete
Sent:	Monday, October 01, 2001 10:13 AM
To:	Ward, Kim S (Houston)
Subject:	RE:

 Buenos dias to you.  I have yahoo.   Leg hurts.  Did not sleep so well.

 -----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Monday, October 01, 2001 9:18 AM
To:	Heintzelman, Pete
Subject:

Good Morning!  How's the leg?  Do you have instant messenger of some kind?

K.


I was thinking about what to get Dad for Christmas and I think what he would like most is a family portrait.

Joan has talked to Leigh-Leigh Baillio about taking pictures of the family. The sitting fee is $85 (if other family units want pictures it would be an additional $20 per family plus the cost of film). The cost per picture varies by the size and quantity ordered. Joan is getting actual prices from Leigh-Leigh. As a rough estimate, Joan spent about $300 on three 8x10's plus some smaller prints.

I thought we could take the portrait after Jim & Marianna's second baby is born . . . maybe the weekend of her baptism? . . . so there wouldn't be any actual money paid until the Spring. If that's a problem, instead of a Christmas present, we could give him the portrait for a combination father's day/birthday present.

I'm headed to Houston right now. Call me at mom's or we can talk about it at John's house on Wednesday.


Sweets,

The flight was cancelled so we just drove to New Orleans for the
weekend.  Man was it a ghost town.  How's everything with you?
How's Liz and the kids?  How's the FIRM going?  Talk to you soon.

Kevin

-----Original Message-----
From: Dan Sweetser [mailto:dsweetser@llspc.com]
Sent: Tuesday, October 02, 2001 9:14 AM
To: Ruscitti, Kevin
Subject: Re: Your trip

How was it?
----- Original Message -----
From: "Ruscitti, Kevin" <Kevin.Ruscitti@ENRON.com>
To: "Dan Sweetser" <dsweetser@llspc.com>
Sent: Wednesday, August 01, 2001 10:05 AM
Subject: Read: A dose of reality re: child rearing

Your message

  To:      mskoplan@spriggs.com; jstamas@carolina.rr.com; Ruscitti,
Kevin; smliebl@warwick.net; pwbrownil@aol.com; pblj@worldnet.att.net;
JMO109@cs.com; sdunbar@us.oracle.com; cmraufer@west.raytheon.com;
pramp@msn.com; todd.johnson.b@bayer.com
  Subject: A dose of reality re: child rearing
  Sent:    Tue, 31 Jul 2001 15:54:57 -0500

was read on Wed, 1 Aug 2001 09:05:30 -0500

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and
may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or reply
to Enron Corp. at enron.messaging.administration@enron.com and delete all
copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
**********************************************************************


On Wednesday, October 25, at approximately 7 p.m. CST, you may have received
e-mail messages which appear to have been sent from Andrew Wu/HOU/EES.  These
e-mails were generated as the result of an erroneous messaging agent which
originated on the EES mail system.  The overall effect of the messaging agent
allowed the "auto-reply" of all messages within Andrew Wu's mail file, many
which included the Global Distribution group of "Enron Worldwide".  The Enron
Global Messaging group alerted EES Mail Administration to the event and were
successful in disabling the "auto-reply" agent rather quickly, however,
numerous mail messages had already been delivered to your server mailbox.  If
you received any of these messages, please delete them and do not reply back
to Andrew Wu regarding the receipt of the messages.

We apologize for the inconvenience that this may have caused you and will
strive to ensure that a similar incident does not occur in the future.

Thanks,
Enron Global Messaging Team


Attached is an analysis of the probability of a devaluation in Argentina and
the contractual protections TGS has in the event of a devaluation.

Long and short of it is -

Argentina's economy is primarily dollarized and it would appear that a
devaluation would do considerable short term harm to the economy.

Convertibility Law was enacted in 1991.  Large part of the population
remembers the super inflation of 1989 and 1990.

To devalue the currency, Argentina would have to amend the Convertibility Law
- this requires  approval of the Federal Congress.

TGS has numerous layers of protection from a devaluation - in addition to the
Convertibility law, it has protection through its license and regulations.
Indeed, as you remembered, the tariff is indexed to the exchange rate.

A concern is - to the extent the Government takes action as drastic as
changing the Convertibility Law to implement a devaluation, and it is willing
to suffer the short term economic and political harm of a devaluation - then
there is a reasonable chance they would go the extra step and find a way
delink the tariffs of the privatized regulated companies from the dollar.
In this case Enron would have protection under the BIT treaty.

The impact on Enron's P&L is a function of whether or not we use the Peso as
the functional currency.  If we use the Peso as the functional currency -
Enron would have a signficant negative translation adjustment from a
devaluation.  If we use the dollar as the functional currency - there would
be no impact on our income statement.   I will research this further in order
to ensure we can use the dollar as a our functional currency.

Pete


Hey, I just created a new deal for this contract effective 8/1/2000.  I
thought I had done this but I can't find the other deal I created.

The new deal #is 340210.


Savita,
The CA is fine.  Do you want me to sign the non-letterhead version and
forward to you, or would you prefer to telefax a signed letterhead version,
have me sign it, and fax it back?  Please let me know.  Thank you.
Marc

-----Original Message-----
From: Savita.Puthigai@enron.com [mailto:Savita.Puthigai@enron.com]
Sent: Tuesday, July 25, 2000 5:08 PM
To: Marc Mellman
Cc: Tana.Jones@enron.com
Subject: RE: Confidentiality Agreement
Importance: High

Hi Marc,

Tana Jones from our legal department  just called me and said that before I
sent Wesley Fredricks information over to her, Andrew O Connor returned her
phone call and is now expecting the document from us. You may receive an
email from her to try to sort this out. Thanks a lot.

Savita

Marc Mellman <MMellman@natsource.com> on 07/25/2000 03:45:28 PM

To:   "'Savita.Puthigai@enron.com'" <Savita.Puthigai@enron.com>
cc:

Subject:  RE: Confidentiality Agreement

To follow up, the complete info for Mr. Fredericks is as follows:
Wesley C. Fredericks, Jr.
Dorsey & Whitney LLP
250 Park Avenue
New York, NY 10177
212-415-9263
212-953-7201 fax

-----Original Message-----
From: Savita.Puthigai@enron.com [mailto:Savita.Puthigai@enron.com]
Sent: Tuesday, July 25, 2000 4:45 PM
To: Marc Mellman
Subject: Re: Confidentiality Agreement
Importance: High

I maybe mistaken but I think Jack had given me the name of Andrew O Connor
(tel 212-286-1234 ) as your attorney. I hust want to make sure that Wesley
Fredricks is the person we need to sen it to. Please let me know.

Savita

Marc Mellman <MMellman@natsource.com> on 07/25/2000 03:30:57 PM

To:   "'Savita.Puthigai@enron.com'" <Savita.Puthigai@enron.com>
cc:   "Jack D. Cogen" <jcogen@natsource.com>,
      "'fredericks.wesley@dorseylaw.com'" <fredericks.wesley@dorseylaw.com>

Subject:  Confidentiality Agreement

Our attorney is Wesley Fredericks, Esq.  His e-mail address is:
fredericks.wesley@dorseylaw.com.  You may forward the document to Mr.
Fredericks by e-mail.
Marc Mellman


I'm fine with this and ready to sign if Rick Lammers is happy.

Michael Tribolet
12/01/2000 12:33 PM
To: Richard A Lammers/SA/Enron@Enron
cc: Richard A Lammers/SA/Enron@Enron, Felipe Ospina/NA/Enron@ENRON, Connie F
Estrems/NA/Enron@Enron, Peter E Weidler/NA/Enron@Enron, Christiaan
Huizer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tracee Bersani@ECT, Rob G
Gay/NA/Enron@Enron, John Novak/SA/Enron@Enron, Joe Kishkill/SA/Enron@Enron

Subject: Final Cuiaba DASH for signature

Here is the final Cuiaba DASH.   The DASH need to be signed and reviewed
through Jeff Skilling by noon on Monday.     Rick Buy has indicated there
will be no exceptions.

Michael Tribolet

Office    713 853-3820
Cellular  713 515-3577
Home   713 729-7910


----- Forwarded by Jeff Dasovich/NA/Enron on 02/15/2001 08:33 AM -----

	James D Steffes
	02/11/2001 02:51 PM

		 To: Alan Comnes/PDX/ECT@ECT, Chris H Foster/HOU/ECT@ECT, Christian
Yoder/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT, Cynthia
Sandherr/Corp/Enron@ENRON, Dan Leff/HOU/EES@EES, David W
Delainey/HOU/ECT@ECT, Don Black/HOU/EES@EES, Elizabeth Sager/HOU/ECT@ECT,
Elizabeth Tilney/HOU/EES@EES, Eric Thode/Corp/Enron@ENRON, Gia
Maisashvili/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gordon Savage/HOU/EES@EES,
Greg Wolfe/HOU/ECT@ECT, Harry Kingerski/NA/Enron@Enron, Jubran
Whalan/HOU/EES@EES, Jeff Dasovich/NA/Enron@Enron, Jeffrey T
Hodge/HOU/ECT@ECT, Joe Hartsoe/Corp/Enron@ENRON, John J
Lavorato/Corp/Enron@Enron, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Kathryn Corbally/Corp/Enron@ENRON, Keith Holst/HOU/ECT@ect, Kristin
Walsh/HOU/ECT@ECT, Leslie Lawner/NA/Enron@Enron, Linda
Robertson/NA/Enron@ENRON, Marcia A Linton/NA/Enron@Enron, Mary
Schoen/NA/Enron@Enron, mday@gmssr.com, Mark Palmer/Corp/Enron@ENRON, Marty
Sunde/HOU/EES@EES, Mary Hain/HOU/ECT@ECT, Michael Tribolet/Corp/Enron@Enron,
Mike D Smith/HOU/EES@EES, Mike Grigsby/HOU/ECT@ECT, Neil Bresnan/HOU/EES@EES,
Paul Kaufman/PDX/ECT@ECT, Phillip K Allen/HOU/ECT@ECT, Robert
Badeer/HOU/ECT@ECT, Rebecca W Cantrell/HOU/ECT@ECT, Richard B
Sanders/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Rob
Bradley/Corp/Enron@ENRON, Robert C
Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert Frank/NA/Enron@Enron,
Robert Johnson/NPNG/Enron@ENRON, Sandra McCubbin/NA/Enron@Enron, Scott
Stoness/HOU/EES@EES, Steve C Hall/PDX/ECT@ECT, Steve Walton/HOU/ECT@ECT,
Steven J Kean/NA/Enron@Enron, Susan J Mara/NA/Enron, Tim Belden/HOU/ECT@ECT,
Tom Briggs/NA/Enron@Enron, Travis McCullough/HOU/ECT@ECT, Vance
Meyer/NA/Enron@ENRON, Vicki Sharp/HOU/EES@EES, William S Bradford/HOU/ECT@ECT
		 cc:
		 Subject: Summary and Very Brief Analysis of Governor Davis's 2/9/01
Executive Orders

Attached is Mary Schoen's analysis of Gov. Davis' Executive Order on
expediting siting and maximizing output.

I have asked Mary to try and identify the # of MWs that may be impacted by
these actions.

Jim

----- Forwarded by James D Steffes/NA/Enron on 02/11/2001 02:49 PM -----

	Mary Schoen
	02/09/2001 03:58 PM

		 To: Steven J Kean/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, Leslie Lawner/NA/Enron@Enron, Robert
Frank/NA/Enron@Enron, Sandra McCubbin/NA/Enron@Enron, Jeffrey
Keeler/Corp/Enron@ENRON, Michael Terraso/OTS/Enron@ENRON, Stacey
Bolton/NA/Enron@Enron, Heather Mitchell/HOU/EES@EES, Robert
Frank/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Jeff
Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON
		 cc:
		 Subject: Summary and Very Brief Analysis of Governor Davis's 2/9/01
Executive Orders

Below is a brief summary of the five Executive Orders issued by Governor
Davis on 2/9/01.

For those of you that want the Cliff Notes Version:

These Orders appear to be an attempt to accomplish three things:

1.  Expedite Siting for New Powerplants and Expansions or Modifications of
Existing Powerplants
2.  Maximize Output and Minimize Outages at Existing Facilities
3.  Centralize Authority and/or Mitigate Issues Impacting Powerplant Siting
and Construction

The tone is both one of we feel your pain in the complexity of permitting
powerplants; and that we will tolerate no excuses for not running at full
capacity.  (ie; the carrot and the stick)

They also includes some targeted incentives to encourage powerplant operators
to sell their power under contract to the State Dept. of Water.

Some of the critical issues impacting the effectiveness of these orders will
be:

- How much capacity is truly "idling" and will be able to be brought back on
line or increase its output?
- Will the state be able to better manage air quality issues and create
flexibility within the framework allowed by the Clean Air Act in order to
positively change the air quality issues impacting power plant construction
and operation?
- How quickly can the accelerated permitting procedures be implemented and
how soon will we see movements in the market to increase new generation given
the other issues in CA?

We will continue to analyze the impacts of these orders, but wanted to get
information to you in a timely manner.

D-22-01  Increased Output/Expedited Siting Mandates

CEC exemption from siting requirements for increased output by existing power
generators.
- limited to less than 50MWs using existing installed capacity b/w
06/01-10/01/01

Expedited processing of applications for certification of existing thermal
powerplants that require retooling and a current license to operate.

Accelerated review from all agencies involved in the licensing of proposed
thermal powerplants.

Action by the State Water Resources Control Board  to insure wastewater
issues do not preclude thermal powerplants from operating.

Requirements for the State Dept. of Water Resources to purchase power from
powerplants using renewables and other resources that may currently have not
other market for their power.

Expires  12/31/01 unless extended

Analysis:

This Order is intended to take away the excuses for why some powerplants are
currently not operating or not operating at full capacity.  It does not waive
air quality requirements (they are addressed in a separate order).

D-23-01  Appropriate Maintenance and Efficient Operation Requirements

ISO Requirements:
- Require generators to submit planned outage schedules to the ISO
- Prepare a coordinated outage plan to be updated quarterly
- Identify generation maintenance criteria to be met by generation facilities
- Maintain records of any unplanned generation facility outages and provide
those records to Electricity Oversight Board
- Conduct independent audits of generation facilities that have fallen below
performance benchmarks est. by the ISO
- Consider seeking the authority under state law of federal regulation to
impose fines on those generation facility owners whose generation facilities
have fallen     below performance benchmarks est. by the ISO

Requires that the Electricity Oversight Board review the ISO Tariffs and
Protocols to identify any necessary revisions to increase the ISO's ability
to ensure adequate power during peak demand.

Instructs the CPUC to ensure that generation facilities still owned by
utilities are operated as required to maintain reliability.

Requires the Electricity Oversight Board to propose legislation to expand its
authority to issue audits of generation facilities that do not meet est.
benchmarks for availability and performance, and issue fines against those
plants, after a hearing.

Analysis:

Again, the tone of this order is that the state won't tolerate outages as an
excuse for not generating.  It is also an attempt to better manage planned
outages to prevent situations that happened last fall when too many plants
where off-line for maintenance at the same time.

D-24-01  Air Pollution Flexibility and Mitigation Measures

Mandates that local air districts modify emissions limits that limit hours of
operation in air quality permits to ensure that power generation facilities
that provide power under contract to the Dept. of Water Resources are not
restricted in their ability to operate.
- Requires air districts to require a mitigation fee for all applicable
emissions in excess of the previous limits
- If air districts do not comply, the Board (CARB?) shall impose
modifications on the permits in lieu of districts

The Board shall establish an emissions reduction credit bank using emissions
reductions from all available sources:
- Credits will be made available to powerplant peaking sources that need
emissions offsets in order to add new or expand peaking capacity for the
Summer Peak Season in 2001
- In the case of powerplants that agree to sell their power under contract to
the Dept. of Water Resources, CA will make available where necessary and
available the required emissions credits at up to a 50 percent reduction,
- In order to maximize the amount of electrical generating capacity,
emissions reduction credits for new generation capacity shall be provided to
facilities where necessary and available.
- Proceeds from the sales of these emission reduction credits shall be made
available to fund emissions reduction programs in the air district where the
new or expanded facility is located.

Expires 12/31/2001 unless extended

Analysis:

This order requires the air districts to modify permit limits on run hours
for air quality reasons by allowing those powerplants that sell to the Dept.
of Water to pay a mitigation fee and creates an emission reduction credit
bank available for use by other sources.  There are a lot of details that
remain to be clarified, including how the state is going to locate emissions
reduction credits where developers were unsuccessful.  However, it is a step
in the right direction by creating flexibility and beginning to drive
authority back to the state level.

D-25-01  Acceleration the Construction and Upgrading of Approved Powerplants

Expedites review and approval of post-certification amendments to increase
output from thermal powerplants by the Energy Commission.

Authorizes the Energy Commission to suspends the requirements of the statutes
and regulations that normally control post-certifications to the extent that
they impact prompt mitigation of this emergency.

Requires the Energy Commission to establish milestones for both initiation of
construction within one year of certification, and for the construction phase
of the project.  Failure to meet milestones without prior approval by Energy
Commission based on a showing of good cause shall constitute forfeiture of
the certification.

Expires 12/31/01 unless extended

Analysis

Again, no excuses for not getting your powerplant modifications approved and
completed in a timely manner.

D-26-01  Accelerating the Availability of New Generation Sources

Requires all relevant agencies shorten the review periods to 7 days for
required environmental impact documents prepared under CEQA for all
powerplants that are not subject to the Energy Commission (under 50MWs) and
that are proposed to be on line by summer 2001.

 Energy Commission shall expedite its licensing process in the following ways:
- Expedite processing of applications for peaking or renewable powerplants
for construction and operation by July 31, 2001.
-Peaking or renewable powerplants that have a current contract with the ISO
and can be online by July 2001 may also apply to be permitted by the Energy
Commission under the emergency siting process.
-Rules which provide a license for a simple cycle thermal powerplant within
four months, shall apply to any proposed simple-cycle thermal powerplant that
can be brought on line by August 31, 2002  and that have an application for
certification complete by Dec. 31. 2001.
-Under regulations for the expedited licensing of powerplants, emission
offset credits are not required at the time of filing an application for
certification
-The Energy Commission shall conduct a study of potential peaking power sites
in the state and prepare a report by 02/21/01  identifying those areas of the
state that would benefit from the installation of peaking powerplants to
augment supplies and ensure reliability through the summer of 2003.

IOUs must complete necessary interconnection studies within 7 days of receipt
of completed application.

Expires 12/31/01 unless extended.

Analysis:

This is an attempt to accelerate the permitting of smaller sources and
peaking units.


Shame on you, Jeff!  I expect this sort of thing from inexperienced
reporters and dim bulbs like Campbell.  But you KNOW that this sort of
thing is no big deal.  And when did the PUC ever disallow these kinds of
losses for the utilities?  I don't think my memory has gotten that bad.   MIKE

At 03:20 PM 7/24/2001 -0500, you wrote:
>FYI.  Many similar stories in the major papers today.
>
>Best,
>
>
>Jeff
>
>
>Figures show state lost big on extra power
>
>
>Posted at 9:53 p.m. PDT Monday, July 23, 2001
>
>
>BY JOHN WOOLFOLK
>
>
>Mercury News
>
>
>State figures show California may have lost about $14 million this month
>selling surplus electricity for less than it cost.
>
>
>The Mercury News disclosed last week that some power was being sold at a
>loss. But the new figures provide the first indication of just how much
>excess power the state bought in its desperate effort to avoid blackouts --
>and how cheaply some of that power was sold when it turned out not to be
>needed.
>
>
>A Republican lawmaker said Monday the loss also shows Democratic Gov. Gray
>Davis' energy policies are needlessly costing consumers.
>
>
>``This whole thing is a mess,'' said Assemblyman John Campbell, R-Irvine,
>who requested details of the state's surplus power sales. ``The government
>needs to get out of the power business before it costs Californians even
>more money.''
>
>
>A state spokesman didn't dispute the $14 million figure outright but said
>it is an approximation based on average prices and that the actual loss
>probably is less.
>
>
>``It's a number I'm sure he likes very much, but it's definitely an
>estimated number, and it could be far lower,'' said Oscar Hidalgo,
>spokesman for the state Department of Water Resources.
>
>
>Campbell responded that the loss also could be higher.
>
>
>The state has spent $415 million on power so far this month.
>
>
>State officials last week confirmed that cool weather and consumer
>conservation have left California holding more power than it needs. The
>revelation was a stunning turnaround for a state that months ago was paying
>top dollar for power, expecting shortages this summer.
>
>
>Price that was paid
>
>
>The state bought 3.5 million megawatt-hours of electricity for July at an
>average price of $118 per megawatt-hour, according to a response Friday by
>the Department of Water Resources to Campbell's inquiry. The state has sold
>178,000 surplus megawatt-hours in July at an average price of $37, the
>department said.
>
>
>Based on those average prices, the state paid $21 million for the surplus
>power, which it sold for $6.5 million -- $14.5 million less than it cost.
>
>
>A more precise calculation of the state's loss is difficult because
>purchased power is acquired at different times and prices and pooled as a
>``portfolio.''
>
>
>Purchases included long-term contracts that averaged $138 per megawatt-hour
>as well as cheaper spot-market buys.
>
>
>State officials last week said they were selling surplus at $15 to $30 a
>megawatt-hour, while some traders cited unconfirmed sales as low as $1.
>
>
>Hidalgo noted that the surplus sales represent just 5 percent of
>California's July purchases, which totaled $415 million. The $6.5 million
>from sales will help lower the state's power bill, he said, adding that
>utilities routinely sell some extra electricity.
>
>
>``Despite the fact that we're in somewhat of a surplus, any power-buying
>operation in the world is going to have to plan for these types of
>situations,'' Hidalgo said. ``It's not unique, and in fact it's normal
>operating procedure for any utility.''
>
>
>Other Western utilities, including Portland General Electric in Oregon,
>have said they, too, are selling some surplus power at a loss and describe
>it as a cost of doing business.
>
>
>The suppliers buying the state's surplus electricity on the cheap include
>the big out-of-state energy companies that the governor has called
>price-gouging ``snakes.'' Among them are Duke Energy, Dynegy Power and
>Marketing, El Paso Power Services, Mirant, Reliant Energy and Williams
>Energy.
>
>
>`Best bid' taken
>
>
>Hidalgo said the state took the best offers it could find.
>
>
>``It's only reasonable to get the best bid you can,'' he said.
>
>
>Campbell said the $14 million loss is troubling because ratepayers or
>taxpayers will have to cover the cost, whereas a private utility could be
>forced to eat the expense if regulators determined it was unreasonable.
>
>
>State officials say what's more important is that the overall cost of power
>is dropping, from an average daily tab of $64 million in May to $25 million
>this month, in part because the state has so much power.
>
>
>Contact John Woolfolk at jwoolfolk@sjmercury.com <
>mailto:jwoolfolk@sjmercury.com> or (408) 278-3410.


Start Date: 4/18/01; HourAhead hour: 13;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041813.txt


Fred,

My understanding (which I will verify) is that Enron would still be at risk
from an environmental standpoint with a lease.  We could try to lessen our
exposure as much as possible with the lease, and get indemnity from PGL.

Kay

Fred Mitro@ECT
06/13/2000 01:37 PM
To: Kay Mann/Corp/Enron@Enron
cc: Ben Jacoby/HOU/ECT@ECT, Laura Luce/HOU/ECT@ECT, Rusty
Stevens/Corp/Enron@ENRON

Subject: RE: Torrence Cost Sharing Agreement

Attached is the cost sharing agreement proposed by PERC on the Torrence
site.  It proposes that ENA agree to share all future development costs and
environmental liabilities on the Torrence parcel on a 50/50 basis.  I believe
that there are some inconsistencies between the language in this Agreement
and the PDA signed in April of 2000 (i.e. dates, terms, and the members of
the management committee).

I have informed PERC that it is ENA's policy not to step in the chain of
title on properties with known environmental liabilities.  I have recommended
to PERC that PGL (Peoples regulated utility) buy the Torrence property (they
want if for remediation purposes anyway) from Air Liquide on June 26th and
hold it while PERC and ENA complete the due diligence required to develop a
commercially viable power plant development project. It will be my
recommendation that ENA does not execute this cost sharing agreement as
written.  If the environmental liability risk was removed and stronger
language inserted on the control of going-forward development expenditures
then it would represent a commercially reasonable agreement.  Ideally we
would like this agreement to provide for ENA to market the Torrence and other
development sites (ENA's sell-down strategy) under a known value sharing
formula and transaction financial "triggers".  I will discuss this approach
with Laura Luce and Curtis Cole this week.

From a legal perspective, could we structure a long-term lease between PGL
and Torrence Power LLC (PERC & ENA as owners) that could provide commercial
site control to PERC/ENA while leaving the environmental liabilities on the
Torrence property with PGL?  (this would be fitting, because PGL has owned
the property in the past and have likely been the major contributor to the
site's environmental contamination).

Call me to discuss these issues.

Fred

---------------------- Forwarded by Fred Mitro/HOU/ECT on 06/13/2000 01:58 PM
---------------------------

s.stawasz@pecorp.com on 06/12/2000 12:59:56 PM
To: Fred.Mitro@enron.com, lluce@enron.com
cc: j.nassos@pecorp.com, j.badeusz@pecorp.com, c.cole@pecorp.com,
de.anderson@pecorp.com, w.morrow@pecorp.com
Subject: RE: Torrence Cost Sharing Agreement

Sorry. Attachment was missing

 <<Enron cost sharing ltr Ag v2>>

> ----------
> From:  Stawasz, Stanley M.
> Sent:  Monday, June 12, 2000 11:39 AM
> To:  'Fred Mitro-Enron'; 'Laura Luce - Enron'
> Cc:  Nassos, John G.; Badeusz, John; Cole, Curtis; Anderson, Dean;
> Morrow, William
> Subject:  Torrence Cost Sharing Agreement
>
> Attached for your review is the Letter Agreement to share expenses for the
> development of the Torrence project.
>

----------------------------------------------------------------
The information transmitted is intended only for the person
or entity to which it is addressed and may contain confidential
and/or privileged material.  Any review, retransmission,
dissemination or other use of, or taking of any action in
reliance upon, this information by persons or entities other than the
intended recipient is prohibited.   If you received this in error, please
contact the sender and delete the material from any computer.

 - Enron cost sharing ltr Ag v2.doc


FYI
	ENA has an agreement with affiliate NNG re Possible transaction involving Northern's base gas in its Cunningham storage field - protects NNG - dated 4/2000 to 4/2003.

	Kay

 -----Original Message-----
From: 	Nemec, Gerald
Sent:	Wednesday, July 25, 2001 9:20 AM
To:	Young, Kay
Subject:	CA Check

Please see attached.  Thanks.

 << File: NNGData.doc >>


-----Original Message-----
From: 	"Ackermann, Hilary" <hilary.ackermann@gs.com>@ENRON
Sent:	Wednesday, November 21, 2001 10:46 AM
To:	'Lavorato@enron.com'
Subject:	Liquidity Proposal
Importance:	High

Hilary E. Ackermann
Goldman Sachs
Credit Risk Management & Advisory
Phone: 212-902-3724
Fax:  212-428-1181
E-Mail:  hilary.ackermann@gs.com
Dear Mr. Lavorato:

Following up on your and Ken Lay's conversation with Gary Cohn, I would like
to forward the following proposal, acting for each of Goldman Sachs Capital
Markets and J.Aron.
> In order to provide Enron North America with additional liquidity, J. Aron
> and GSCM have discussed entering into the following series of transactions
> on terms to be agreed between each of the relevant parties:
>
> 1.  Enron Corp./J. Aron - FX Option sold by Enron Corp. to J. Aron with a
> settlement date of Dec 11, 01 would be settled on Nov 21, 01.
>
> 2.  Enron NA/GSCM - Interest Rate Swap Portfolio - At Enron NA's option,
> we would either (a) close out and portfolio on Nov 21, 01, resulting in a
> payment from GSCM to Enron NA or (b) bilaterally reduce applicable margin
> trigger from $10mm to zero, which based on current MTM would result in
> $10mm of additional margin being paid by GSCM to Enron NA.
>
> Weather Derivative Transaction - Applicable margin trigger would be
> reduced from $50mm to $5mm, which based on current MTM would result in
> ~$18mm of margin being paid by GSCM to Enron NA.
>
> 3.  Enron NA/J. Aron - Financial Derivative Portfolio - At Enron NA's
> option, we would either (a) close out and portfolio on Nov 21, 01,
> resulting in a payment from J. Aron to Enron NA or (b) bilaterally reduce
> applicable margin trigger from $10mm to zero, which based on current MTM
> would result in $10mm of additional margin being paid by J. Aron to Enron
> NA.
>
> Physical Natural Gas Receivable - In consideration of the foregoing, Enron
> NA would settle $10.5mm physical natural gas receivable for value Nov 21,
> 01.
>
Please call me at the number below at your soonest convenience to discuss
further.  Thank you.

Hilary E. Ackermann
Goldman Sachs
Credit Risk Management & Advisory
Phone: 212-902-3724
Fax:  212-428-1181
E-Mail:  hilary.ackermann@gs.com


Dear Gerald  Nemec,

Thank you for ordering from King Ranch Saddle Shop.

Your order information appears below.

If you need to get in touch with us about your order, send an e-mail
message to krsaddleshop@king-ranch.com, fax us at (361) 595-1101, or call
us toll-free at 1-800-282-5464.

To assist us in providing the best customer service to you, please include
your order number and billing address on all correspondence.

  -- King Ranch Saddle Shop Customer Service

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

Your order reads as follows:

----------------------------
Billing Information:
----------------------------

Gerald  Nemec
1403 Banks
Houston, TX  77006
Phone: 7138533512
Shipping Method: Standard Delivery
Email: gerald.nemec@enron.com

CC Type: VI
Exp.: 02/2002
Order Date: 10/24/2000
Order ID: 9736

Shipping Order 1 of 1

--------------------------
Shipping Information:
--------------------------

Gerald  Nemec
1403 Banks
Houston, TX  77006
Phone: 7138533512
Shipping Method: Standard Delivery

SKU            Qty       Price Per Personalize Product Name
---            ---       --------- ----------- -----------
1381020        1         $70.00                TRI-FOLD WALLET<br>T

Shipping Instructions: ,

Tax:                $6.59
Shipping:           $9.80
SUB TOTAL:          $86.39

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

GRAND TOTAL: $86.39


---------------------- Forwarded by Andrea Ring/HOU/ECT on 02/26/2001 12:24
PM ---------------------------

Jane M Tholt
02/26/2001 11:52 AM
To: Andrea Ring/HOU/ECT@ECT
cc:
Subject: Fortune Article

---------------------- Forwarded by Jane M Tholt/HOU/ECT on 02/26/2001 11:44
AM ---------------------------
From: Matthew Lenhart on 02/23/2001 03:11 PM
To: Frank Ermis/HOU/ECT@ECT, Steven P South/HOU/ECT@ECT, Phillip K
Allen/HOU/ECT@ECT, Jane M Tholt/HOU/ECT@ECT, Mike Grigsby/HOU/ECT@ECT, Tori
Kuykendall/HOU/ECT@ECT, Keith Holst/HOU/ECT@ect, Monique Sanchez/HOU/ECT@ECT,
Paul T Lucci/NA/Enron@Enron, Randall L Gay/HOU/ECT@ECT
cc:
Subject: Fortune Article

---------------------- Forwarded by Matthew Lenhart/HOU/ECT on 02/23/2001
03:09 PM ---------------------------
To: Matthew Lenhart/HOU/ECT@ECT, Eric Bass/HOU/ECT@ECT, Bryan
Hull/HOU/ECT@ECT, Luis Mena/NA/Enron@Enron
cc:

Subject: Fortune Article

---------------------- Forwarded by Timothy Blanchard/HOU/EES on 02/22/2001
04:45 PM ---------------------------

	Enron Energy Services

	From:  Timothy Blanchard                           02/22/2001 04:24 PM
	Phone No: 713-853-4755

To: AIP
cc:
Subject: Fortune Article

The article just discussed on CNNfn.


Boys - will need some sort of transaction agreement (or other agreement) to sale February gas volumes to a third party.  To sale January volumes to Sid Richardson, I assume some sort of written arangement.  Let me know.

chris meyer
x31666


FYI

-----Original Message-----
From: Stevens, Kirk
Sent: Wednesday, September 19, 2001 11:46 AM
To: Mayeux, Gay
Cc: Hayslett, Rod
Subject: RE: PGE Power Costs

Gay, here's the story and some numbers for the Q3 comparison.  Please remember
the context of our phone conversion this morning when looking at this.
Hopefully this helps Investor Relations put the story together for the
Earnings Release.

Power Cost Adjustment
We now expect to have an amount collectable from customers to record all Q3 of
$86m.  Since we we're basically at the deadband level at the end of Q2, we end
up eating our way through the deadband and up into the 90% collection band all
in Q3.  On a stand alone basis, we will incur  about $54m of net variable
power costs Q3 that we won't have any revenues for (but remember to keep this
in context for the entire 9-month period).  The following shows how this is
calculated:

Projected Net Variable Power Costs = $316m
Baseline for PCA = $176m
Difference Subject to PCA Collection = $140

Deadband  = $35m  (no collection)
50/50 band = $21m (collect $10.5m, no collection = $10.5)
90/10 band = $84m (collect $75.5m, no collection = $8.5)

The bands above = $140m ($35+21+84)
Collections = $86m ($10.5+75.5)
No Collection (PGE eats) = $54m ($35+10.5+8.5)

Again, without the PCA mechanism and no other price increase between 1/1/01
and 9/30/01, PGE would be $90m worse off.  As we discussed, before pulling our
request for a rate increase to be effective 1/1/01 (which was replaced with
the PCA mechanism), the latest amount being offered up by our PUC would have
been around a $90m increase for the 9-month period (although the evidence was
quickly moving towards no need for an increase, so we probably wouldn't have
got the rate increase, and without a PCA, would have been worse off today).

Quarter to Quarter Comparison - Margins
As we discussed, things were looking really good for us through Q2 2001, but
price caps and other factors in late Q2/early Q3 really dropped the price we
could sell our excess power for, and accordingly has dropped our margins.  In
addition, a slowing economy and customer energy efficiency measures have
resulted in significant reductions in our retail revenues compared to last
year.

Another point on the this year/last year quarter to quarter comparisons is
that we went into Q3 2000 with length purchased at fairly low/reasonable costs
over the prior year or so.  In Q3 2000, wholesale sales prices increased
dramatically (California market) so we made tremendous margins (above normal).
 Going into Q3 2001, much of the power we purchased was at higher prices than
the previous year because of the higher wholesale power market operating over
the past year.  When price caps and other events dropped the bottom out of the
wholesale power prices, our margins on our power lenght dropped dramatically.
The PCA only picks up a power of this increase in net variable power costs, as
outlined above.  Also remember that we have a regulatory obligation to serve
our customers, so we have to go into a month with length in order to ensure we
can handle any potential load spikes or unplanned plant outages.  Any excess
power is sold in the wholesale market in the day-ahead or real-time markets.

Big story, price caps and lower retail revenues have really hurt us year to
year, but our new rate case effective 10/1/01 should get us back on track.

Gross Margin Comparisons
Based on our latest forecast, here's a breakdown of our gross margins on a
year to year comparison for Q3.  This gives you a high level look at the
impact the above events have had on our margins year to year ($94m decrease in
gross margin).

                                            Q3 2000                 Q3 2001
Retail Revenues                    $257m                   $250m
Wholesale Revenues               466m                    571m
Other Revenues                            5m                       5m
Variable Power Costs                523m                    715m
Gross Margin                           $205m                  $111m

Let me know if you have questions

>>> "Mayeux, Gay" <Gay_Mayeux@ENRON.net> 09/19/01 05:43AM >>>

I will try again.  Mine shows an attachment.
Look at the very bottom of the email.  Thanks!
_________________________
Gay Mayeux
Vice President, Investor Relations
Enron Corp.
1400 Smith Street, EB 4931a
Houston, Texas 77002
Phone:  713-853-9905
Cell:      713-416-8821
Fax:      713-646-3002
email:    gay.mayeux@enron.com
-----Original Message-----
From: Kirk Stevens [mailto:Kirk_Stevens@pgn.com]
Sent: Tuesday, September 18, 2001 6:45 PM
To: Mayeux, Gay
Subject: Re: PGE Power Costs

Gay, there wasn't an attachment

>>> "Mayeux, Gay" <Gay_Mayeux@ENRON.net> 09/18/01 03:24PM >>>
Attached is my attempt to summarize the PGE power cost issue.  Please
call me to discuss.  I have no pride of authorship - just want to make
sure it is simple as possible while still being correct.  I will be here
until about 6:30 my time.  Thanks!

_________________________
Gay Mayeux
Vice President, Investor Relations
Enron Corp.
1400 Smith Street, EB 4931a
Houston, Texas 77002

Phone:  713-853-9905
Cell:      713-416-8821
Fax:      713-646-3002
email:    gay.mayeux@enron.com

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and
may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by others
is strictly prohibited. If you are not the intended recipient (or authorized
to receive for the recipient), please contact the sender or reply to Enron
Corp. at enron.messaging.administration@enron.com and delete all copies of the
message. This e-mail (and any attachments hereto) are not intended to be an
offer (or an acceptance) and do not create or evidence a binding and
enforceable contract between Enron Corp. (or any of its affiliates) and the
intended recipient or any other party, and may not be relied on by anyone as
the basis of a contract by estoppel or otherwise. Thank you.
**********************************************************************


I'm getting closer.

Can you resend me the initial memo.


This is a reminder that the lunch for Rod is tomorrow (Tuesday) at noon in
the Wine Room at Grappino di Nino (behind Vincent's).  We look forward to
seeing you all tomorrow.  Thanks, Suzanne, x37340


Per the Management Offsite Meeting, please provide me with your monthly
calendars showing your vital business days, close, bid-week, etc.  If
necessary to capture all those days please provide me with the months of
January and February.

Please work with your assistants to get this accomplished before next Monday.

For those of you without, please give me a call and we can set a time to sit
down and I will handle your calendars.

Thank You!
Yvette
x3.5953


This article kind of explains the sentiments of the people seen protesting against the current attacks. Also the article touches briefly on the disastrous effects of siding with America, during cold war, on Pakistan but i think with a lesson from previous experience both countries can do much better this time. Also the government is firmly behind the U.S coalition
Bilal

<Embedded Picture (Metafile)>


Shortly before the teleconference Board meeting two weeks ago we received an
application from the Bank of England for subscriber membership. When we have
considered central banks or government agencies for membership in the past,
consideration has focused on the nature of the applicant's derivatives
activities, its regulatory role and the type of information they are likely
to obtain from ISDA. Because of their derivatives activities, we have
generally admitted these applicants (e.g., the Kingdoms of Belgium, Denmark
and Sweden, the Reserve Banks of South Africa and New Zealand). We have even
admitted the Bank for International Settlements as a member. In general, we
let them know that they may not be able to receive the full range of ISDA
materials (e.g., draft comment letters or position papers) and that there
may be a need to exclude them from certain committees or discussions.

In previous Board discussions, a higher degree of concern has been expressed
if, theoretically, the Federal Reserve, the Bank of Japan, the Bank of
England or similarly influential central banks were to apply for membership.
These central banks typically have a greater degree of involvement in the
regulatory debates (particularly on capital) and are better positioned to
influence the process.

Since some of those previous debates, the regulatory role of the Bank of
England has diminished and the role of the Financial Services Authority has
correspondingly increased. The Bank of England still plays the traditional
central bank roles of controller of the money supply, dealing in the market
and lender of last resort, but the supervisory role has shifted to the FSA.

In light of these developments, but recognizing the concerns previously
expressed on central bank membership, I would appreciate your views on the
application of the Bank of England. We have also had overtures from the Hong
Kong Monetary Authority regarding membership although we have not received
an application.

Please share your views with the other members of the Board.

Bob


These are the prayer request as follows...

Sheryl Snoddy - for faith and total trust in God to supply all of her needs.
Complete and total healing for her mate who indulges in alcohol abuse and
verbal abuse toward her in front of their son Devon.


Might try this for the bar, while at the bar.

---------------------- Forwarded by Gerald Nemec/HOU/ECT on 07/07/99 08:42 AM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Lisa Nemec" <lnemec@ect.enron.com>                           07/07/99
07:56 AM

To: Gerald Nemec/HOU/ECT
cc:
Subject: And That's It...

---------------------- Forwarded by Lisa Nemec/HOU/ECT on 07/07/99 07:56 AM
---------------------------

 (Embedded     Enron Capital & Trade Resources Corp.
 image moved
 to file:      From:  "Donna T Norris"
 pic13219.pcx) <DTFOLMA@ppco.com>
               07/06/99 09:07 AM

To:   Chris Kuhlman <clk@ckpro.com>, jacquieb@swbell.net, DianaLRod@aol.com,
      "Mary Hoeffner" <MHOEFFN@ppco.com>, akruch@aol.com, annjer@swbell.net,
      robert.boone@equistarchem.com, Lisa Nemec/HOU/ECT, "John A Elliott"
      <JAELLIO@ppco.com>
cc:
Subject:  And That's It...

A herd of buffalo can only move as fast as the slowest buffalo. And
when the herd is hunted, it is the slowest and weakest ones at the back
that are killed first. This natural selection is good for the herd as a whole,
because the general speed and health of the whole group keeps
improving by the regular killing of the weakest members. In much the
same way, the human brain can only operate as fast as slowest brain
cells. Excessive intake of alcohol, we all know, kills brain cells, but
naturally it attacks the slowest and weakest brain cells first. In this way,
regular consumption of beer eliminates the weaker brain cell making the
brain a faster and more efficient machine.

And that's why you always feel smarter after a few beers.

 - pic13219.pcx


Gentlemen,

I haven't seen the 501D contract yet.  Is it on its way or perhaps been
misdirected?

Thanks,

Kay


Monika, this may also interest your pulp team.

Dave

 -----Original Message-----
From: 	Kanji, Ayesha
Sent:	Friday, November 02, 2001 1:11 PM
To:	Allan, David; Bhatia, Om; Blick, Marty; Bosek, Laura; Boudreaux, Jay; Carter, Karen E.; Causholli, Monika; Charbonneau, Chris; Comeaux, Clinton; Crane, Bob; Croom, Chris; Daetz, Milagros; Dawson, Wendy; Determeyer, Peggy; DL-Lon EIM Forest Products - Europe; Epstein, Jay; Gerard, Camille; Harris, Charles; Hiddleston, Craig; Ho, David; Hollingsworth, Mark; Holzer, Eric; Hutchinson, Elizabeth; Kiehne, Sean; Krohn, Todd; Loh, David; Marye, David; Milliner, Christine; Ovanessian, John; Perez, Eugenio; Rascon, Sergio; Rhodes, Eric; Rogers, Ted; Saltiel, Robert; Singh, Vikram; Tabbachino, Dick; Thakkar, Ami; Then, Leslie; Thomason, Michelle; Wales, Stacey
Subject:	newsprint mill conversion

Hello Team,

Tembec Inc. may back a controversial $450-million project to convert the mothballed Chandler newsprint mill in Quebec to make high-quality magazine paper.  The Chandler mill was shut in 1999 by the former owner, Abitibi, due to high costs.   The Quebec government and the union-backed Quebec Solidarity Fund now effectively own Chandler and are negotiating with Tembec to tie up the conversion project by year-end.       A comfort to newsprint producers as potential newsprint capacity is diverted else where at a time when the market is sitting in a supply glut.

Ayesha


All:  I spoke with Kim this morning and although she is anxious to meet
everyone, we decided that it would be more productive to try to schedule a
luncheon meeting to discuss current issues related to the confirmation desk.
I understand that Joe Hunter, Melissa Murphy and David Dupre will be
providing Kim with a list of "issues" and we have been invited to add to that
list.

Please send me your list of any confirmation issues that you would like
raised with Kim which I will cumulate and forward.

You may ignore the message below.  Thanks.  Sara

----- Forwarded by Sara Shackleton/HOU/ECT on 10/26/2000 10:17 AM -----

	Yolanda Ford
	10/25/2000 05:01 PM

		 To: Sara Shackleton/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT, Susan
Bailey/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron,
Stephanie Panus/NA/Enron@Enron, Melissa Ann Murphy/HOU/ECT@ECT, Robert
Bruce/NA/Enron@Enron, Mark Taylor/HOU/ECT@ECT, Larry Joe Hunter/HOU/ECT@ECT,
Brent Hendry/NA/Enron@Enron
		 cc: Kim S Theriot/HOU/ECT@ECT, Yolanda Pena/Corp/Enron@Enron, Becky
Spencer/HOU/ECT@ECT
		 Subject: Financial Confirmations Issues

Please plan to attend a meeting regarding Financial Issues on Monday the 30th
from 10:00am to 11:00am in EB3125B.  If you are unable to attend please call
me directly at X3-9030. The meeting will be hosted by Kim Theriot Manager of
Power and Gas Documentation.

Many Thanks,
Yolanda


Hey:
That sounds good.  How does Thursday work?
Ben


Western Government Affairs
WEEKLY SCHEDULES
November 20 - 24, 2000

Paul Kaufman

Mon 11/20 Portland
Tue 11/21 Portland/Salem
Wed 11/22 Portland
Thur 11/23 Thanksgiving Day
Fri 11/24 Holiday

Sue Mara

Mon 11/20 In Office; Leave at 3:30 for appointment w/Accountant
Tue 11/21 In Office
Wed 11/22 In Office
Thur 11/23 Thanksgiving Day
Fri 11/24 Holiday

Sandi McCubbin

Mon 11/20 South Africa CFEE trip
Tue 11/21 South Africa CFEE trip
Wed 11/22 South Africa CFEE trip
Thur 11/23 Thanksgiving Day
Fri 11/24 Holiday

Jeff Dasovich

Mon 11/20 In Office
Tue 11/21 In Office
Wed 11/22 In Office
Thur 11/23 Thanksgiving Day
Fri 11/24 Holiday

Mona Petrochko

Mon 11/20 Vacation
Tue 11/21 Vacation
Wed 11/22 Vacation
Thur 11/23 Thanksgiving Day
Fri 11/24 Holiday

Marcie Milner

Mon 11/20 Phoenix
Tue 11/21 Phoenix
Wed 11/22 Phoenix + Travel to Ohio
Thur 11/23 Thanksgiving Day
Fri 11/24 Holiday


No issues from an accounting structuring perspective.

Since we are exercising the purchase option, I assume Enron is comfortable
putting four turbines on the balance sheet (actually netted in Costs in
Excess of Billings/ Billings in Excess of Costs pursuant to accounting for
construction contracts).

If you have any questions, please let me know.

Thanks.

	Enron Global Finance

	From:  Catherine Clark                           11/27/2000 11:28 AM

To: Ben Jacoby/HOU/ECT@ECT, David Leboe/HOU/ECT@ECT
cc: Eric Boyt/Corp/Enron@Enron, Sheila Tweed/HOU/ECT@ECT, Kay
Mann/Corp/Enron@Enron, Lisa Bills/Corp/Enron@ENRON, robtaylor@akllp.com
Subject: Austin Turbine Take-Out from West LB

Re: Purchase Option Assignment and Assumption Agreement for Austin turbines
I've added the equipment description in Schedule 1 and changed the date of
the agreement to November 30, 2000 (see attached redlined version).
Ben/Eric - can you verify that my unit numbers in Schedule 1 match your list
of unit numbers?
David - can you sign off on this for accounting?
Once we have sign-off from accounting, we can circulate the document once
more with Winston & Strawn.  Hopefully it should be in pretty good shape by
tomorrow.  Thanks,
-Catherine
x3-9943