Today, Enron hosted a conference call to give investors a current overview of the company. Here's an update of what we discussed during the call.

We told investors that we're doing everything we can to protect their interests and to regain their confidence. Our focus remains on our credit quality, balance sheet and liquidity, which are essential for our continued success and expansion of our wholesale businesses.

It took more than a few weeks to get where we are today. Here's a snapshot of significant events that led to our current situation:

-- In hindsight, we definitely made some very bad investments in our non-core businesses over the past several years. Those include investments in Azurix, India and Brazil. They have performed far worse that we could have ever imagined when we made these investments;

-- Because of these bad investments, we've become over-leveraged as a company. The negative impact of those investments was exacerbated through the extensive use of debt capital both on and off our balance sheet;

-- We also entered into related party transactions that led to a loss of investor confidence, which has been very damaging;

-- We've been criticized for our lack of transparency and our hard-to-understand financial and operating disclosures; and

-- On top of it all, we discovered errors in our financial statements, as discussed in our 8-K filing last week, that required a restatement of previously reported earnings.

We've taken a new look at our businesses and have separated them into three areas: core businesses, non-core businesses, and businesses under review.

Core Businesses

Our core businesses remain strong and consistent sources of significant earnings and cash flows for the company. They're our competitive advantage. These include:

-- Natural gas pipeline businesses;

-- Gas and power businesses in North America and Europe;

-- Retail businesses in North America and Europe; and

-- Coal businesses in North America and Europe.

The events of the past few weeks have had a temporary negative impact on our projected fourth quarter profitability. It's too early to tell at this time what impact this might have on our operating results. We are considering these actions now so that we can quickly return to normal business in 2002.

I also remain optimistic that the actions we've taken over the past couple of weeks have addressed our customer and counterparty credit and liquidity concerns. According to our business unit leaders, we have definitely seen improvement in our counterparty relationships.

Non-Core Businesses

Our non-core businesses include our global assets group and our broadband division. We have invested more than $8 billion in these businesses, and the return from them has been dismal.

We have an aggressive program in place to exit these businesses and expect that the sale of these businesses will generate billions of dollars in cash that we can use to repay debt and reinvest in our core businesses. We already have more than $800 million in assets contracted for sale this year. They include CEG Rio, a gas LDC in Brazil; EcoElectrica, a power plant and LNG receiving terminal in Puerto Rico; and asset sales of offshore oil and gas properties in India. The approximately $2.9 billion Portland General sale is also on target to close in late 2002 pending regulatory approvals.

Businesses Under Review

These businesses are comprised of those operations outside our power and gas wholesale businesses and include global and industrial markets. While several of these businesses have very strong future prospects, we need to determine if their capital requirements and near-term growth prospects are sufficient enough in terms of earnings and cash generation.

Reviewing our businesses this way will help determine where we need to make reductions to our work force. More information will follow as soon as it becomes available.

Credit Rating/10-Q Filing

We continue to meet regularly with credit rating agencies and believe that our liquidity enhancements and scheduled asset sales will strengthen our balance sheet and maintain our investment grade credit rating. Our current credit ratings by the three major rating agencies are as follows:

-- Moody's at Baa3       "Under Review for Further Downgrade"

-- Fitch at BBB-             "Evolving Status"

-- S&P at BBB-              "CreditWatch Negative"

We also discussed our existing financial vehicles, including Osprey, Marlin and Yosemite, in further detail. We told investors that we will file our 10-Q five days late due to our current activities. It will be filed on Nov. 19.

We will continue to have updates with investors over the coming weeks as well as our frequent updates with you. The full transcript of our conference call will be filed with the Securities and Exchange Commission in the next few days. It will also be posted on our web site at www.enron.com/corp/investors under "SEC Filings."

In connection with the proposed transactions, Dynegy and Enron will file a joint proxy statement/prospectus with the Securities and Exchange Commission. Investors and security holders are urged to carefully read the joint proxy statement/prospectus regarding the proposed transactions when it becomes available, because it will contain important information. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus (when it is available) and other documents containing information about Dynegy and Enron, without charge, at the SEC's web site at www.sec.gov. Copies of the joint proxy statement/prospectus and the SEC filings that will be incorporated by reference in the joint proxy statement/prospectus may also be obtained for free by directing a request to either: Investor Relations, Dynegy Inc., 1000 Louisiana, Suite 5800, Houston, TX 77002, Phone: (713) 507-6466, Fax: (713) 767-6652; or Investor Relations, Enron Corp., Enron Building, 1400 Smith Street, Houston, TX 77002, Phone: (713) 853-3956, Fax: (713) 646-3302.

In addition, the identity of the persons who, under SEC rules, may be considered "participants in the solicitation" of Dynegy and Enron shareholders in connection with the proposed transactions, and any description of their direct or indirect interests, by security holdings or otherwise, are available in an SEC filing under Schedule 14A made by each of Dynegy and Enron.


SWERZ -

This is your reminder to get your picks in for the POWERPOOL pool. Your picks are due within 12 hours from the time this mailing was sent. Your pick deadline is Thursday, 11/08 05:00 PM Pacific Time.

Start Your Baseball Playoff Pool <http://www.officefootballpool.com/jumpto.cfm?id=124>	Run your own baseball pool for the playoffs at Office Football Pool. OFP offers 2 pool formats for the baseball playoffs including Share Pools, where you and your buddies create a virtual sportsbook and make bets against each other, and Square pools, like the ones you see for the superbowl. Share Pools only cost $19.95 and Square Pools are totally free. Start Your Pool Now! <http://www.officefootballpool.com/jumpto.cfm?id=124>

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PLEASE DO NOT REPLY TO THIS AUTOMATED EMAIL MESSAGE
Mail Sent to: MIKE.SWERZBIN@ENRON.COM


John, attached below is my first draft.  It isn't pretty and i would like you
comments and changes.  Please make changes directly on the word doucment and
send back asap.

thanks,
m


Hi Laura:  I've attached three things, but first wanted to give you a bit of
an update on events transpiring in Sacramento and at the Public Utilities
Commission.

Move to Prohibit Customer Choice
As you may know, AB1X, the bill that the Legislature recently passed and the
Governor signed, gives the California Department of Water Resources the
authority to buy power on behalf of the utilities.  Included in that bill,
however, is a provision that prohibits "Direct Access,"  California's term
for customer choice.

In sum, the bill, in its current form, prohibits businesses and consumers
from chosing an alternative energy service provider, like Enron.  Our
understanding is that the Department of Finance called for the prohibition.
Their reasoning is that they need a "captive" customer base to pay for the
bonds that the State will issue in order to finance DWR's power purchases.

Customer choice was of course the foundation of California's restructuring
law, AB 1890, and is arguably the only bright spot in an otherwise fatally
flawed plan.  For example, the only businesses and consumers that were
protected in San Diego when rates were deregulated last year were those
businesses and consumers that had signed fixed price power deals with
competitive service providers.  Ironically, the recently passed legislation
takes choices away from consumers and diminishes their ability to manage
their energy costs.  Before AB 1890, consumers and businesses had one
choice--the monopoly  utility.  With the passage of AB 1X, they again will
have one choice. But this time their only choice will be to buy from a
government agency DWR.

A broad coalition of consumer groups has expressed its opposition to the
prohibition and Senator Debra Bowen (a key player on the Senate side), and
Fred Keeley (a key player on the Assembly side), have promised to "fix" the
prohibition in another bill "SB27X."  I'll forward in another email the
language that the coalition has drafted and hopes Bowen and Keeley will carry.

Unfortunately, we are now hearing rumors that the Governor intends to direct
the California Public Utilities to immediately implement the provisions of
AB1X prohibiting Direct Access, despite the fact that a large coalition of
consumers and service providers are actively working with Bown and Keeley to
amend the prohibition language.

It would be extremely useful if the folks participating in the meeting on
Thursday with the Governor let him know that taking choices away from
businesses and customers is the wrong way to go and that he and the
legislative leaders need to work with the coalition to fix it.  You'll note
in the language developed by the coalition that the proposal strikes a
reasonable balance between the Dept of Finance's concerns about recouping
DWR's costs of buying power, and the need to give consumers and businesses
maximum flexible in managing their energy costs.

Move to Have the State Take Over the Electric Industry in California

John Burton, the Democratic leader of the Senate, insists that, "if
California is going to 'bail out' the utilities, the State needs to get
something in return."  Burton wants the state to buy and operate PG&E's and
Edison's transmission system and create a state power authority that would
get in the business of (among other things) developing, financing,
constructing and operating power plants and natural gas pipelines.  Burton
got both of these bills designed to take over the industry passd out of his
committee yesterday (SB6X and SB33X).  It is unclear how much support he has
in the full Senate or in the Assembly, but the possibility of passage is
certainly greater than zero at this juncture.

Others experts are offering a better alternative.  When the federal
government helped Chrysler out of its financial difficulties 20 years ago,
the federal government received stock warrants in return.  Until recently,
the Governor favored warrants, but more recently he has waivered in his
statements regarding a state take over.  Burton appears to have negotiating
leverage with the Governor and appears to be using it.

Again, it would be extremely useful for folks to let the Govenor know in the
meetings on Thursday that a State take over of the industry is an extreme
move and bad public policy.  I will forward to you in a separate email
letters that we sent to Burton expressing our opposition to his bills and the
reasons for our opposition.  In brief, there is no shortage of private
capital ready and willing to invest in California's energy infrastructure
(i.e., power plants, electric transmission lines, gas pipelines).  All
California needs to do is create the investment climate necessary to attract
the capital.  In addition, history shows that the State is extremely
ill-equipped to become California's mega-utility.

Here are the attachments:

A demand buy-down proposal.  We made this proposal to the Governor (and
continue to propose it to policymakers in Sacramento, Washington D.C. and
just about everywhere else).  In short, the notion is that, if the market is
willing to pay power producers, say, 7 cents/kwh to "produce" power, then the
market ought to be willing to pay businesses and consumers 7 cents/kwh to
"reduce" power consumption.

This approach is critical for two reasons:  first, it provides businesses and
consumers the financial incentives necessary (and that California currently
lacks) to conserve energy and use energy more efficiently.  Second, because
California delayed identifying and implementing a solution to California's
energy crisis, its options for addressing the severe shortages that are
likely occur this summer are very limited.  Reducing demand represents one of
the few options that can help to immediately reduce the gap between supply
and demand.  Putting financial incentives in place now to reduce demand and
"free up" electrons is an investment with significant payback.

A "manifesto" recently released by a group of Berkeley and Stanford
economists and industry experts urging the Govenor to pursue a
"market-oriented" solution to California's energy crisis.

An editorial in yesterday's Wall Street Journal by Dan McFadden, a nobel
prize-winning economist from Berkeley echoing the proposal advanced in the
"manifesto."  McFadden was one of the manifesto's signatories.

Finally, we are working on "model Legislation" proposing a market-based
solution that we will share with you soon and that we hope the business
community--and the Valley in particular--can embrace and advocate.

I realize that this is a lot of information and I apologize for the length of
this note, but I wanted to try to make sure that you're up-to-date.  Please
don't hesitate to give me a call if you'd like to discuss further.

Best,
Jeff

 - Manifesto-final version.doc


Call me during the day so we can get it all planned.  I'll talk to Tia to make sure everthing is cool.

-----Original Message-----
From: jbrewer.LEATHERCENTER@leathercenter.com
[mailto:jbrewer.LEATHERCENTER@leathercenter.com]
Sent: Friday, October 19, 2001 11:21 AM
To: plucci@enron.com
Subject: Hey dude!

Tonight I am just going to lay low...I went out with Curt last night so I
am a little tired.....but saturday sounds great get in contact with me at
work on saturday. I will bring in clothes and leave from work!

Later


USCAA Track & Field Championships, June 9, 2001
The Enron Running Club is seeking runners, sprinters, discus & shot put throwers, and high jumpers & long jumpers to compete in the annual USCAA Track & Field Championships on Saturday, June 9th at Rice University.  Participate in co-ed track relays & field events of all ages and abilities; showcase your energy and talents in a challenging, competitive, and fun environment; participate in an Enron tradition since 1994; experience teambuilding and camaraderie like never before!  For more information or to sign up, contact Cindy Richardson at x3-4770 or sprint to:  http://home.enron.com:84/erc/index.html

Heights Fun Run 5K
Join the Enron Running Club at the Heights Fun Run 5K benefiting The Houston Heights Association's Community Projects scheduled for Saturday, June 2nd.  If you're interested in running or volunteering your time, please contact Cindy Richardson at 713-853-4770 or Kelly Lombardi at 713-345-5841.  For more information, run to: http://home.enron.com:84/erc/index.html.

Dad's Day 5K
Join the Enron Running Club at the Dad's Day 5K and 1 Mile Family Walk benefiting The Prostate Cancer Research and Awareness scheduled for Saturday, June 2nd.  If you're interested in running or volunteering your time, please contact Cindy Richardson at 713-853-4770 or Kelly Lombardi at 713-345-5841.  For more information, run to: http://home.enron.com:84/erc/index.html.

Stop by for some Texan BBQ, fresh air and Entertainment at Antioch Park

The Assist The Officer Foundation (ATO), a non-profit organization working independently,  is inviting all Enron employees to come by Antioch Park  on Friday, June 1st from 11am - 1pm and enjoy a delicious plate of BBQ for only $5.  Come and listen to the tunes of KRBE with Gabe, their mobile DJ, and raffles with many prizes will be given away.  Raffle tickets will be $2 each or 3 for $5.  ATO is dedicated to assisting Houston peace officers injured or disabled in the line of duty.  Please come out and support your local law enforcement professionals.

The Caladium plants that are in the huge plant pots throughout the Plaza are going to be replaced and will be available for purchasing on Monday, June 4th for $4.00 in the Plaza by the up escalator from 11 a.m. to 12 p.m..

Join us in Dublin or Honolulu ----Joints in Motion is a marathon training program for walkers and runners that is aligned with a fundraising effort for the Arthritis Foundation.  The Dublin Marathon will be held Oct. 29 and the Honolulu marathon will be December 9.  Please call for more information at 713-529-0800.

Volunteer for the Boys & Girls Club Summer Camp Weekends!!!
Kevin Hannon, Boys & Girls Club board member, invites you to join Enron employee John Cote at a Boys & Girls Club summer camp who is looking for commitment from a FEW GOOD ENRON MEN AND WOMEN:

WHAT: 		2nd Annual Houston Boys and Girls Club / Enron Summer Camp Weekend (2 camps)

WHEN:  	Boys Camp
		Friday afternoon (3:00 - 6:00pm), June 22 through Sunday afternoon, June 24
		--OR--
		Friday afternoon (3:00 - 6:00pm), July 20 through Sunday afternoon, July 22

		Girls Camp
		Friday afternoon (3:00 - 6:00pm), July 6 through Sunday afternoon, July 8
		--OR--
		Friday afternoon (3:00 - 6:00pm), July 13 through Sunday afternoon, July 15

WHERE:	Willis, TX (75 minutes from downtown Houston -- just north of Conroe)

WHO: 		6-8 counselors per camp to chaperone 75 boys (ages 7-16)

HOW: 		Share all sports activities, including canoeing, hiking, fishing, organizing a talent 			show/bonfire/ghost stories, obstacle course, water balloon fights, softball, basketball, 		archery, football, etc.  (Cooking and clean-up covered by the Houston Boys Club staff.)

CONTACT:	John A. Cote at ext. 33830

SPREAD THE WORD.  SPOUSES & OFFICE COLLEAGUES WELCOME.
LAST YEAR'S CAMP WAS A HUGE SUCCESS!

Volunteers Needed for Bring Your Child to Work Day!

Bring Your Child to Work Day is Friday, June 29

Please email Jennifer Milligan if you are interested in volunteering and indicate your preference in the below activities:

Registration Table
Houston Police Dept / Stranger Danger / Fingerprinting
Outdoor Activities (SPCA pets, Balloon King, kids crafts, etc.)
Business Etiquette class
Business Art (kids' resumes, etc)
Lunch ticket sales/coordination (in Antioch Park)

The Enron Running Club and the Houston Corporate Athletic Association are seeking volunteers to assist at the annual USCAA Track & Field Championships on Saturday, June 9th at Rice University.  There are many volunteer opportunities requiring little or no experience including timers, scoring, lane judges, cheering on athletes and more!  We are looking for employees, families and friends that can contribute a few hours or who are willing to spend the day benefiting a great cause.  If you are interested or would like more information, please contact Kelly Lombardi at x3-8491.

Many volunteers are needed to help with the planned activities for the Enron Children on June 29th.  If you're interested, send your name and phone extension to workperks.enron.com.

Support KidSave and Help Miracles Happen. Every Summer.

Kidsave's  Summer Miracles Program enables orphaned children ages 5 to 11 to travel to the  US and Canada, live with families and attend day camp. The program gives  families who may be concerned about the problems of adopting an older child a chance to meet, get to know and in the best-case scenario, fall in love with a  child. The program gives prospective parents an opportunity to see and evaluate  first-hand the challenges and rewards of adopting an older  child.

In 1999 and  2000 Kidsave and adoption agency partners placed 432 children - 96 percent of  children who participated in the program. Generally, 85 to 90 percent of  children who participate in the program find homes easily through the program.  The remaining 10 to 15 percent require more work.

Kidsave  believes every child deserves a family. We are committed to placing all children  who participate in the Summer Miracles Program in permanent families or  family-like environments.

We are looking  for families to host children, and for others who want to help us make the camp  program happen for these 250 children.   As a non-profit organization, Kidsave depends on donations to raise the  money to bring these children here and find them families.  Please call Tonya Hoppe at 281.286.8948  or tonya@tonya.cc to get involved in Houston's  Kidsave program.

Find Out how to Join The Downtown Club May 29 & 30!
The Downtown Club (formerly The Met-Business & Sports Club)Membership representatives from The Downtown Club will be in the Enron Plaza Tuesday-Wednesday, May 29-30, from 11 am - 1 pm to discuss membership, the new "Signature Gold" program (see attached file for more information), and a new membership referral program.  Don't miss out on this opportunity to join the Downtown Club or to upgrade your current membership.  As a reminder, a $200 initiation fee is required for new memberships.   For more information, contact The Downtown Club Membership Services department at 713-652-0700 or Georgia Fogo, ext. 3-5609.

http://home.enron.com:84/messaging/siggoldcourses.pdf

Enron and Kidventure Camps are proud to bring you Camp Enron Summer 2001.  Celebrating our third year, Camp Enron  will once again be providing summer camp for children, ages 5-13, of Enron employees and contractors.

This year, camp will be May 29-August 10.  Ten, one-week sessions will be  available and families may choose to attend any or all sessions.  Each camp week is Monday through Friday.

The cost is $150 per week and includes all transportation, field trips and activities.  A deposit of $50 per week is all that is needed to reserve your sessions.   The deadline to register is Monday, May 21.

To register, log on to: http://www.kidventurecamp.com/camp_enron.htm.   Spaces are limited.

Enron parents simply ride to work with  their children and check them in to the Energizer in the morning with the Camp Enron Team.  Enron Campers are loaded on Coach USA Buses and transported to our nearby camp. At the end of the day campers are brought back to the Energizer for parents to check out.

It's that easy!

For more information please contact:

web site: www.kidventurecamp.com
call Kidventure: 713.960.8989
e-mail: camps@kidventurecamp.com

Have News to Share?
To post news or events in Enron In Action, please e-mail your information to EIA@enron.com
no later than 12:00 noon the Thursday prior to the next Monday's mailing.


Richard,

Here are a few comments on the CalPX letter to FERC outlining the difficulties in calculating PX refunds.

1.  The PX claims it is a "neutral party in this proceeding" and is only a conduit for cash.  True for PX business, not true for CAISO obligations.  The CAISO holds SC's responsible for non-payment, not the SC's customers.  The PX was the SC for most of the transactions going through the day-ahead and hour-ahead market.  Therefore, the PX is primarily liable.  I'm not sure how this helps us, though, since the PX has no money.

2.  Page 3, SC Data.  I was unaware that the CalPX acted as SC until February 28th---one month after it closed the doors on January 31st.  During this time, the CAISO was probably in violation of its Tariff, which requires SCs to be creditworthy.

3.  Page 5.  Commandeered contracts.  What is the status of the PX's claim against the State of California?  The State owes the PX, as representative for its Participants, the mark-to-market value of the contracts on January 31st, less amounts paid by CDWR to suppliers.  If the PX won't bring this claim, its bankruptcy trustee or the PX Participants should bring this claim against the State of Califonria.

4.  Pages 3 and 4.  $150 Breakpoint.  I asked Kit Blair in Volume Management to review this letter and he said that it was his view and the view of two other folks in VM that the PX is vastly overstating the difficulty in calculating the $150 breakpoint.  His view was that it should take hours or days, but not weeks.  However, I do not see how we get an advantage from accelerating the calculation of refunds.

Finally, according to reports from Credit and VM, the remaining PX employees are not exactly the "A-team."   I suggest we should ask FERC to require the PX to document its methodology for calculating refunds, so that we can review for errors.  Spot audits by independent auditors might be a good idea, too.

Steve


Following is the model which calculates the new IT tolls for TCPL under the
proposed marginal fuel cost calculation.  Geoff, you may want to look at this
new sheet, I had my tolls right but my percentages wrong for the points.


give me a shout at work when you get a chance.  853-7176.

 -----Original Message-----
From: 	kevin.a.boone@accenture.com@ENRON
Sent:	Friday, October 26, 2001 9:29 AM
To:	Lenhart, Matthew
Subject:	bs

As gameday approaches I'm seriously considering driving in for the game Sat
morning . . . Everyone I know is gonna be in BR this weekend . . . It's
going to be an awesome game and BR will be fun as hell sat night . . . I
think Hull is leaning toward doing that as well . . . why don't you suck it
up and come along for the ride . . . we've got 4 tix between Mitch, You,
Hull, and me, so we're covered there . . . we can stay at my buddy's house
who lives right off Acadian . . . There will be a ton of hot ass out  in BR
. . .

Regards,

Kevin A. Boone
Accenture -- Houston
Consultant -- Energy
(Octel) 713.837.1638
(Client) 281.848.1619
(C) 713.306.7940
(H) 713.864.4149
Kevin.A.Boone@accenture.com

Our web address is http://www.accenture.com

This message is for the designated recipient only and may contain
privileged or confidential information.  If you have received it in error,
please notify the sender immediately and delete the original.  Any other
use of the email by you is prohibited.


HOWDY AGS!

The Howdy Club, Houston A&M Club and Reveille Club are sponsoring

AGGIE NIGHT AT ENRON FIELD

It's the Astros vs. the Rangers on Friday, June 15, 2001, starting at 7:05 pm.

Tickets in the Mezzanine are $12.  The attached flyer provides additional details.

If you would like to order tickets with Enron ,
please fill out the attached spreadsheet
and email it back to Heather Johnson(x53240).
Be sure to drop off your check at  EB1833C.
Information and checks are due
by 2 pm Monday, June 4  to receive your tickets through the mail.

Come join other Aggies@Enron
at Irma's Southwest Grill
1314 Texas at Austin
before the game on June 15.


What about the questions I asked about whether the new entity would comply
with Order No. 2000 (especially if the state has the vertically integrated
utilities operate the system)?  See attached word version of my orginal
E-mail.

02/21/2001 11:03 AM
Bernadette Hawkins@ENRON
Bernadette Hawkins@ENRON
Bernadette Hawkins@ENRON
02/21/2001 11:03 AM
02/21/2001 11:03 AM
To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Linda
Robertson/NA/Enron@ENRON, James D Steffes/NA/Enron@Enron, Susan J
Mara/NA/Enron@ENRON, Mary Hain/HOU/ECT@ECT, Jeff Dasovich/NA/Enron@Enron,
Mark Palmer/Corp/Enron@ENRON
cc:
Subject: Scope of FERC Jurisdiction Over State-Owned Utility

Attached is a memo that addreses the FERC's jurisdiction over the
transfer/sales of utility assets to the state of California.  At a minimum,
FERC must approve the transfer.  Call if you have questions.  Joe
----- Forwarded by Bernadette Hawkins/Corp/Enron on 02/21/2001 01:55 PM -----

	"Tracey Bradley" <tbradley@bracepatt.com>
	02/21/2001 01:10 PM

		 To: <jhartso@enron.com>
		 cc: <jdwatkiss@aol.com>, "Andrea Settanni" <asettanni@bracepatt.com>,
"Ronald Carroll" <rcarroll@bracepatt.com>
		 Subject: Scope of FERC Jurisdiction Over State-Owned Utility

Please see attached memorandum.  We have also attached FERC's orders
addressing LIPA's acquisition of LILCO's transmission assets and LIPA's open
access tariff.  Please call if you have any questions.

 - 0138443.01
 - EC97-45.TXT
 - NJ98-4.TXT


With respect to past due PX credit amounts, Edison has told folks today that:

Edison will distribute a one-pager by mid-day tomorrow laying out its proposal for how to handle payment of past due PX credit amounts.
Edison is trying to meet individually with all ESPs prior to the Nov. 7th prehearing conference at the PUC to discuss and hopefully reach agreement with ESPs on its proposal.
Edison hopes to make progress with the ESPs between now and the Nov. 7th prehearing conference, and if so, intends to tell the judge that the PUC should delay action on the complaints pending settlement.

We'll distribute Edison's proposal as soon as we get it.

Best,
Jeff

 -----Original Message-----
From: 	Steffes, James D.
Sent:	Monday, October 29, 2001 8:04 AM
To:	Dasovich, Jeff; Mara, Susan; Tribolet, Michael; Mellencamp, Lisa; Curry, Wanda; Williams, Robert C.; Mike Day (E-mail)
Cc:	Shapiro, Richard; Sanders, Richard B.; Sharp, Vicki
Subject:	Proposed SCE Negotiation Strategy

Following last week's meeting, here is my recommendation on how to proceed with SCE.

1.	Form Enron Negotiation Team

	My recommendation is to use the same team we used with PG&E + Jeff Dasovich.  My understanding was that Lisa M. was the lead negotiator - I would not change this.  Jeff should only be there to make introductions.

2.	Meet & Confer (10/29)

	Sue Mara and Jeff Dasovich will listen and report back to everyone on what happens.

3.	Reformed Stipulation

	I would propose that we take a wait and see approach to this document.  Based on Dasovich's idea to get together with SCE on Thursday, maybe let this ride.

4.	Meeting

	My understanding is that (Jeff D. please correct) SCE can meet with us this Thursday.  Can everyone make it that needs to be there?  Probably meet in California.  We should put the laundry list on the table.

Please let me know what else we need to discuss or if anyone disagrees.

Thanks,

Jim


From OpinionJournal.com (http://opinionjournal.com)

TODAY ON OPINIONJOURNAL

On the Editorial Page
http://www.opinionjournal.com/editorial/?id=95001647

How Rudy Giuliani and the NYPD slashed crime in New York.
12:01 a.m. EST

Dispatch BY SETH LIPSKY
http://www.opinionjournal.com/columnists/slipsky/?id=95001645

Will the Constitution save John Walker from a treason conviction?

12:01 a.m. EST

Extra BY GABRIEL SCHOENFELD
http://www.opinionjournal.com/extra/?id=95001646

Did America's fecklessness bring about Sept. 11?

12:01 a.m. EST

FOR WALL STREET JOURNAL ONLINE SUBSCRIBERS
Review & Outlook

New York's Finest
How Giuliani and the NYPD slashed crime in the Big Apple.
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1009416100656511080.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Cheating Seating
How gerrymandering almost killed free trade.
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1009417016260369480.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Commentary

To Forge a Lasting Peace In Afghanistan
Lessons for the new government: Even the Taliban did some things right.
By Masood Farivar
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1009415684642927600.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Vouchers Can Free Us From Foreign Oil
A free-market plan for gasoline rationing.
By Martin Feldstein
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1009415476348877000.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Fowl Visas
Why should Tyson face criminal charges for bringing workers over the border?
By Steven E. Landsburg
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1009415194974318920.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Politics & People

Some Blessings in a Bad Year
Heroes of 2001: The military, Sam Nunn, Dick Lugar and the victims of Sept. 11.
By Albert R. Hunt
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1009414267308807480.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Review & Outlook Taste

Saudi Christmas
Review & Outlook: Our "friends" in Riyadh hold two American citizens prisoner.
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1008895947938027400.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Taste Feature

Too Near The Madding Crowd
Save me! From panicked country-house hunters and silly agents.
By Jared Paul Stern
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB100889643772180240.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Kids Cry Uncle, On Christmas, And Uncles Come
De Gustibus: A puppy for my kid, against my wishes? Oh brother!
By William McGurn
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1008896191979061560.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Houses of Worship

Sermons in Season
Houses of Worship: Especially at Christmas, every family is holy.
By Gene Edward Veith
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1008896569525629200.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

International

NATO in the Balkans: Time for a Rethink?
The alliance should seize the opportunity for leadership.
By Vitomir Miles Raguz
From The Wall Street Journal Europe
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1009403626892603160.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Sorry Is the Hardest Word
Thailand's prime minister should own up to his mistakes.
Review & Outlook
From The Asian Wall Street Journal
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1009403391901637200.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

Remaking China's Giant Steel Industry
Time to change outdated attitudes and overhaul obsolete mills.
By Jonathan R. Woetzl
From The Asian Wall Street Journal
Dec 27 2001

http://interactive.wsj.com/cgi-bin/wsjgate?source=jopinemaowsj&subURI=http%3A%2F%2Finteractive.wsj.com%2Farticles%2FSB1009403504595388000.htm&nonsubURI=http%3A%2F%2Finteractive.wsj.com%2Ftour

~~~~~~~

_____
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Contact Lou Pai.  He is heading up our new Xelerator program that is looking at new business opportunities that are outside of our mainstram businesses.

Henry Van@ENRON_DEVELOPMENT
04/30/2001 06:56 AM
To:	Stanley Horton@ENRON
cc:

Subject:	Methane Auto

Hello Stan,

Couple of people called me to inquire about Enron's interest in investing in a methane car kit and filling infrastructure.  They wanted to submit an unsolicited proposal to Enron.  I indicated to the that I would first check to see if Enron would be interested in a venture of this type.  According to these two gentlemen the return on investment is very good, ranging from 15% -  40%.

Would Enron be interested in this type of business?

Regards,

Henry


---------------------- Forwarded by Stacey K Neuweiler/AEPIN on 05/30/2001
05:43 PM ---------------------------

"Bartholomew, Joyce" <Joyce.Bartholomew@elpaso.com> on 05/15/2001 03:17:32
PM

To:   "'skneuweiler@aep.com'" <skneuweiler@aep.com>
cc:

Subject:  AEPTA01-009.doc;AEPTE01-013.doc;PLA01002.doc;PLE01002.doc

 Please review and print two originals and return to:

Joyce A. Bartholomew
Greenway 4, Suite 231
P.O. Box 4503
Houston, Texas 77210

Phone:  (832) 676-5818
Fax:      (832) 676-1780
Email:  joyce.bartholomew@elpaso.com

******************************************************************
This email and any files transmitted with it from the ElPaso
Corporation are confidential and intended solely for the
use of the individual or entity to whom they are addressed.
If you have received this email in error please notify the
sender.
******************************************************************
(See attached file: AEPTA01-009.doc)(See attached file: AEPTE01-013.doc)
(See attached file: PLA01002.doc)(See attached file: PLE01002.doc)(See
attached file: EPGT TPLP Op Conditions_IA_04-23-01.doc)(See attached file:
EPGT TPLP Op Conditions_IE_ 04-23-01.doc)

 - AEPTA01-009.doc
 - AEPTE01-013.doc
 - PLA01002.doc
 - PLE01002.doc
 - EPGT TPLP Op Conditions_IA_04-23-01.doc
 - EPGT TPLP Op Conditions_IE_ 04-23-01.doc


Attached please find the weekly Government Affairs Report.  Please keep in
mind that this is a "living document" and that any and all comments or
suggestions are encouraged.  I have added a calendar page and a
state-by-state resource page which I will be working on populating.  I have
also included some document links on the main page in the event the reader
would like more detail.  Please provide me with a list of people that you
would like to receive this report.  Also, as a reminder to the government
affairs folks, please forward any information/filings to me as soon as
possible so that I can incorporate them into the document - please include as
much detail as possible.  Thanks and feel free to contact me with any
questions/comments likes/dislikes, etc.

Marcie


---------------------- Forwarded by Jackie Young/HOU/ECT on 04/11/2000 09:32
AM ---------------------------

"Allen, John S." <john.allen@lyondell-citgo.com> on 04/11/2000 08:34:41 AM
To: "'Young, Jackie'" <jyoung@enron.com>
cc:
Subject: FYI - Gas flow

You will see a change later today in gas flow, going from 15 + 5 = 20 to 15
total for flow date 12.


Sure.  Also, this confirm needs to be tracked b/c counterparty needs to
fulfill a condition for ECT.  SS

Lucy Ortiz
07/06/99 08:44 AM
To: Sara Shackleton/HOU/ECT@ECT
cc:
Subject: Portucel

Per your request.
We need to work on the Fallback.  When would you like to meet?

Rgds,

Lucy


To be determined once 1st memo is distributed, we sent out a communication
informing all ENW employees of the transfer from your old Enron company to
Enron Net Works.

   Today,s communication includes:
? New ENW Company Code
? New ENW Cost Centers listed by Department Head
? New ENW Organization Units
? Listing of HR Representatives and Financial Contact

Implications for Business Unit Administrative Assistants

? If you are coding anything (including timekeeping, invoicing and expense
reports) to a cost center, NOT a WBS Element, code to the new company code
and cost center.
? If you are coding to a WBS Element, NOT a cost center, continue coding to
the existing company code and WBS Element number, regardless of the change in
cost centers.  ***WBS Element numbers may be revised at some point in the
future.  If they do change, the new numbers will be communicated at that
time.***
? If an employee or non-employee entered their time for the period starting
March 16th to the March 23st, that employee or non-employee must go back into
SAP and re-enter their time.  Labor Distribution will be adversely affected
if the employee or non-employee does not go back in and re-submit their time
for this period.
Payroll Implications
? Effective with the April 1st re-org, expense and payroll charges will be
directed to new cost centers.


hi mr. sanders.  i have reserved two rooms for you and andy edison at the Millennium Biltmore Hotel in downtown Los Angeles.  your arrival date is January 2, departure on January 3.  if you have any questions or need additional information, please call me.

regards,

Michelle Brackenhoff
Assistant to John B. Quinn
Quinn Emanuel Urquhart Oliver & Hedges, LLP
865 South Figueroa Street, 10th Floor
Los Angeles, California 90017
T:  213-624-7707, ext. 374
F:  213-489-0088
E-mail:  mxb@quinnemanuel.com

>>> "Sanders, Richard B." <Richard.B.Sanders@ENRON.com> 10/22/01 07:47AM >>>
Andy Edison and I made plane reservations to LA for the Rose Bowl. We
are arriving at 4pm on Wed the 2nd. Did you find any empty hotels?

**********************************************************************
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.
**********************************************************************


Rob,

I have created several Jan01 Texas Phys products.  Could you please approve
them?

Thanks,

Eric


Greg,  Attached is a clean and redlined version of the Gateway Interconnect
Agreement.  Please review before forwarding to Pace to make sure the
ownership concept is in accordance with your negotiations.  Please call me if
you have any questions and I will forward the Rio Nogales later today.


-----Original Message-----
From: 	Metoyer, Pam
Sent:	Monday, May 21, 2001 9:04 AM
To:	Barbour, Karen L.; Crews, David; Geraldo, Emy; Gorte, David; Hachen, James; Larson, Bradford; Ledlow, James; Metoyer, Pam; Petersen, Randy; Schlemmer, Jack; Schneider, Chip; Tribolet, Michael; Clifford, Marlene L.; Griffin, Sherri; Knightstep, Melissa C.; Landry, Shemeika S.; Lauer, Richard; Lowry, Donna; Shankle, Monique; Smith, Shelli; Wackerle, Donna; Bonney, Mark; Brown, Kortney; Cangucu, Andre; Duran, Arleen; Hudler, Cindy; Ibarra, Felipe; Koskas, Ethel; Lee, Kyu-Bong; Lewis, Barry; Mora, Mauricio; Naiser, Denise; Pollock, Adam; Reyes, Pauline; Soo, Jeffrey A.; Vegalara, Mateo; Walker, Mark A.; Brackett, Debbie R.; Bradford, William S.; Brown, Angela; Buy, Rick; Campbell, Lesli; Conwell, Wendy; Copeland, James L.; Curry, Ken; Diamond, Russell; Espinoza, Veronica; Furey, Denise; Gil, Mercy; Gonzalez, Veronica; Greenlee, Terri; Greer, Andrew; Guidroz, Walter; Harris, Mary; Heathman, Karen K.; Holzer, Eric; Johnson, Rudwell; Lebrocq, Wendi; Mendoza, Nidia; Moran, Tom; Negrete, Flavia; Ngo, Tracy; North, Carol; O'Leary, Martin; Otto, Randy; Radous, Paul; Rajaram, Aparna; Reves, Brant; Rohauer, Tanya; Ruane, Mark; Sacks, Edward; Seibel, Teresa; Smith, Dana; Vanek, Darren; Vasan, Sue; Wilhite, Jane; Williams, Jason (Trading); Wilson, Mark; Adams, Matthew; Andrews, Naveen; Dalal, Sunil; Dalia, Minal; Davenport, Lacrecia; Figueroa, Xochitl; Gorny, Vladimir; Hagelmann, Bjorn; Hayden, Frank; Hennessy, Rita; Khanna, Bharat; Nordstrom, Mary; Paraschos, Nick; Phillips, Rebecca; Port, David; Presley, Mike E; Reasoner, Monica; Roenz, Manfred; Romero, Araceli; Schmidt, Darin; Schultz, Cassandra; Suttle, John; Thomas, Mark; Thomas, Mark E.; Tongo, Esther; Valdez, Veronica; Yuan, Ding; Zipter, Rudi
Subject:	FW: Credit Risk Presentation

 -----Original Message-----
From: 	Jolly, Kevin
Sent:	Friday, May 18, 2001 4:26 PM
To:	Metoyer, Pam
Subject:	Credit Risk Presentation

This is the presentation done by Dave Gorte Friday, May 18 in the credit risk training.  Please forward the file to all of RAC.

Thanks,
Kevin


Jeff and I are preparing the California and Texas comparison today, but I
wanted to get you some back ground information on Texas  The Section
documents are draft protocols for the ERCOT ISO and are not final rules but
offer a clear direction in market developments.


Here it is, guess we are starting over on this one.  CILCO looks to be the
main culprit.
PL


i will give you a call later and we can meet up there or something.


Steve:  We need you to have a word with Senator Wyden about the transparency
legislation that I worked on with his office.  The bill is designed to
require transmission companies and generators to release operating data on a
real time basis.  Unfortunately, comments by Senator Wyden made at the FERC
nominee hearing left the impression that he is gunning for evil marketers,
including Enron.  Most importantly, that impression was left with McLane
Layton of Sen Nickles office who has been asked to support the bill.  Wyden
claims he was "misquoted".

 Nonetheless, impress upon him that Enron is sticking its neck out on the
bill because other marketers and generators do not necessarily agree that
more information should be disclosed and that we are not eagre to lend our
support if this is going to be turned against us.

I have attached the bill language (it has not been introduced).


Please find attached the captioned report for the week ending June 29.  If
you wish to add or delete names from the distribution, please advise.
Should you have any question on any of the items, or require additional
information, please do not hesitate to contact us.
Thanks.  Ray


Robin,
 At Jeff's request, I have reviewed the attached form which National Fuel
provided.  It is not designed to operate as a Trading Contract.  Transactions
are only formed by signing an Exhibit A to be prepared by National.  The
Exhibit A is to have a Daily Transaction Quantity and National may nominate
from 0 to 100% of that quantity each day.  Penalties only arise if the actual
quantity deviates from their nominated quantity.  Seller to pay difference
between Buyer's replacement price and the Gas Commodity Charge times the
deficiency quantity.  Buyer to pay difference between the Gas Commodity
Charge and the Daily Midpoint Price times the deficiency quantity.   Does not
state what quantity is to be applied against the Gas Demand Charge; however,
does state that if Seller has a force majeure the Gas Demand Charge is only
applied against the actual volumes that Seller delivers and that the Gas
Demand Charge is not reduced if Buyer declares a Force Majeure.  Buyer's
payments are to be trued up to the actual quantities delivered should actuals
deviate from the nominated quantities.
 Please note the comments I provided to you last year relating to this
counterparty.  All of those comments are applicable to this Contract form.  I
have attached that memo for your review.

Please let me know how you would like to proceed with this matter.

	Jeffrey T Hodge
	06/08/2001 08:48 AM

		 To: Dan J Hyvl/HOU/ECT@ECT
		 cc:
		 Subject: FW: National Fuel's Standard Master Gas Purchase Contract

Dan:

Could you look at this?  I think we have reviewed it several times before and
there should be a file.

Thanks

Jeff
----- Forwarded by Jeffrey T Hodge/HOU/ECT on 06/08/2001 08:47 AM -----

	Robin Barbe/ENRON@enronXgate
	06/08/2001 07:59 AM

		 To: Jeffrey T Hodge/HOU/ECT@ECT
		 cc:
		 Subject: FW: National Fuel's Standard Master Gas Purchase Contract

 jeff,

 can you please review this contract and comment.

 thanks
 -----Original Message-----
From:  "Susan Bautista" <BautistaS@NATFUEL.COM>@ENRON
[mailto:IMCEANOTES-+22Susan+20Bautista+22+20+3CBautistaS+40NATFUEL+2ECOM+3E+40
ENRON@ENRON.com]
Sent: Thursday, June 07, 2001 3:07 PM
To: Barbe, Robin
Cc: John Tammaro
Subject: National Fuel's Standard Master Gas Purchase Contract

Attached is National Fuel's gas purchase contract for your review (in Word).

 - STND-AGR.DOC


Wow.  Very gorgeous, indeed.


Hey Mark
below is a summary of the costs I paid for Bill's funeral and credit card
costs.

Mariachis             260
Price Club            370
Arturo food           240
chair rental              80

Household CC   600     paid in November
Household  CC   146    paid Dec. 26th
Mervyns bill        1420    total of January statement
Macy's bill           1050    total of January statement
Total                    $4,166

I'll go ahead and pay the Mervyns and Macy's bill as soon as I receive your
check and since I just got their statements.   I'd like to avoid paying
them 18% interest as long as you have the cash.     I have not received a
bill from the funeral home, nor have I paid them anything.   I can't
remember if you gave them my address or your mom's.

FYI,  I've received two voice mails from bill collectors regarding Cito's
old Broadway credit card (I think they are now Bloomingdale's).     I have
not replied to their voice mails and do not know how they received my phone
number.   But I'll ignore them for now since they are trying to hunt down
Salvador Guzman, who died 18 years ago anyway.     They will probably give
up trying to collect, but just thought I'd let you know about that pending
liability.    Do you know how much Bill owed them?

In case you don't have my address, it is
     7971 Southwind Circle
     HB   92648

see ya,
Dave

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of this message you are hereby notified that any use, review,
retransmission, dissemination, distribution, reproduction or any
action taken in reliance upon this message is prohibited. If you
received this in error, please contact the sender and delete the
material from any computer.  Any views expressed in this message
are those of the individual sender and may not necessarily reflect
the views of the company.
------------------------------------------------------------------------------
-------------------------


Hey Darren,

It's funny you mentioned Wilson because I just got an email from him this
morning.  He seems to think he'll be in Houston in the near future as well.
Hopefully, we can all get together and go out or hit steak night for some
cold ones.  So H-town for six weeks hugh?  Why the mixed feelings?  Are they
work related or were you just starting to get settled in London?  Anyway,
I'll have to give Nick a call about the big news...I may have an idea what
it's all about but then again maybe not.  So what's with this Kiwi girl?
Because, I actually have made some progress regarding London.  Turns out
there may be some structuring and originating opportunities for me over there
which would be much more in line with where I'd like my "career" to be going
versus the other opportunities I was being offered.  Either way, I won't be
going over until March or April of next year so it's still a ways off.

As for the guy scene...yes, there has been some courting but nothing really
to speak of.  I've gone out on a couple of dates but I can't say I really see
them going anywhere.  Most of the guys around my age are still pretty
insecure and I'm never going to be the kind of girl that wants to "shape and
mold them" into men...I just don't have the patience or the inclination.  And
the other end of the spectrum (single guys in their late 30's/early 40's) who
seem to hover around like gnats just give me the creeps.  Oh well, as I've
said before "hope springs eternal".

Talk to you soon,
Susan

Darren Maloney@ENRON
11/20/2000 09:53 AM
To: Susan M Scott/HOU/ECT@ECT
cc:
Subject: Hello from Soon to be Houston

Sue,
How are you?  What's new in H-town?  Any new guys on the scene--doing
their 'courting'?  I will be coming back to Houston for 6 weeks in a week!
Actually kind of excited--mixed feelings though.  So, Nick has some big
news that I think would only be right for you to hear from him.  An aside,
if you come to London, I know a fun Kiwi girl that wants to move closer to
work--just looking out for you Susan.  Made any progress on getting over
here?

Hopre you are well.  I'll call you when I get into town.
--Darren


I'm trying to figure out how to have a birthday party in DC or NYC.

From: Suzanne Adams@ECT on 01/05/2001 11:49 AM
To: Kay Mann/Corp/Enron@ENRON
cc:

Subject: Re: Coop City

Just a quick day trip huh!

	Kay Mann@ENRON
	01/05/2001 11:44 AM

		 To: Suzanne Adams/HOU/ECT@ECT
		 cc:
		 Subject: Re: Coop City

First flight out in the morning to National, I'll check on the return
flight.  For now book me on the 500 out of National.

From: Suzanne Adams@ECT on 01/05/2001 11:12 AM
To: Kay Mann/Corp/Enron@ENRON
cc:

Subject: Re: Coop City

Do you know what flights you'd like to take, where you'll stay, etc.  How
long will you be there, just one day?

	Kay Mann@ENRON
	01/04/2001 06:00 PM

		 To: Suzanne Adams/HOU/ECT@ECT
		 cc:
		 Subject: Coop City

I need to go to DC next Tuesday.  I'll get with you tomorrow.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 01/04/2001 05:59
PM ---------------------------

Mark Bernstein@ECT
01/04/2001 05:22 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Coop City

---------------------- Forwarded by Mark Bernstein/HOU/ECT on 01/04/2001
05:22 PM ---------------------------

"Mahon, Laurie" <MahonL@pbworld.com> on 01/04/2001 01:46:39 PM
To: mark.bernstein@enron.com
cc:
Subject: Coop City

Mark, call me or e-mail when you have your flight times.  We will met at
Squire Sanders, 120l Pennsylvania Ave, DC on Tuesday and in their New York
office at 350 Park Ave on the 16th.  I'll be at 732-872-7319.  Talk to you
later.


Discussed this briefly with Ben this morning as part of the discussion I had
with him reviewing the Alexander matter. Suggest to move this matter along,
I'll a have Connie set up a conference call first part of next week.

Connie pls try and arrange for on either Monday afternoon or on Tuesday.
Thanks.

-----Original Message-----
From: Herman, Ben [mailto:Ben.Herman@ENRON.com]
Sent: Friday, November 16, 2001 6:40 AM
To: Cash, Michelle; Lund, David; Indivero, Michael
Cc: Seleznov, Ryan; Palmer, Lizzette
Subject: RE: Sharon Davis EEOC Charge -- Jenks, Oklahoma

Michelle,

I do not think reinstatement is a settlement option we want to pursue.
We should, perhaps discuss other options, though.

bh

>  -----Original Message-----
> From: 	Cash, Michelle
> Sent:	Friday, November 16, 2001 2:24 AM
> To:	Lund, David; Indivero, Michael
> Cc:	Herman, Ben; Seleznov, Ryan; Palmer, Lizzette
> Subject:	Sharon Davis EEOC Charge -- Jenks, Oklahoma
>
> The EEOC investigator on the Sharon Davis charge called me earlier
> this week to make a settlement proposal.  Ms. Davis would like to be
> reinstated to work at another NEPCO job site at the rate of pay at
> which she was employed while working at Jenks.  She would not,
> however, like to go to El Dorado, as she believes the people who
> mistreated her now are working there.
>
> I told the investigator that I wasn't sure whether reinstatement was
> an option at all, given the reasons for her discharge.  I asked her
> what the alternative would be.  While she is obtaining that
> information, I told her that I would raise the reinstatement route
> with you.
>
> Although Ms. Davis was terminated for undermining the brass-in,
> brass-out rule by leaving her station, the investigation revealed
> several mitigating circumstances for her actions.  One, the power was
> out completely.  She previously had indicated a fear of working on the
> site at night, but she had no flashlight or any way to reach anybody
> from the site.  Second, there is the contention that the security
> guard came by and told her to leave.  Third, this offense is not a
> terminable one under the NEPCO progressive discipline policy (although
> of course that policy provides for flexibility based on the
> circumstances).  Ben's investigation revealed some other reasons why
> he was concerned about how Ms. Davis had been treated; he can provide
> detail, if we want.
>
> The bottom line is that I do not see this as a slam dunk situation,
> and I believe that some sort of resolution would be fruitful.  What
> that may look like remains an open question.
>
> Let me know your thoughts.
>
> Michelle

**********************************************************************
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.
**********************************************************************


Executive Summary:

? Legislators in both parties are scared about a fiscal meltdown and looking
for a realistic Plan B
? The Keeley plan is the most likely vehicle and would include the 30%
generator haircuts and revenue bonds backed by a dedicated rate component
? Despite uncertainty over dealing with transmission lines and continued
oppostion from Burton and his consumer group allies, the Keeley plan will
probably pass the legislature
? The generators will not support the plan until they get clearer guarantees
from the state that investigations and lawsuits will end
? PG&E could get the same offer as SoCal through the bankruptcy court.

1. Budget Binge Could Scare Legislators into a Deal

According to sources, the Assembly is "terrified"  of the current holes in
the budget due to buying power.  The impact of the  energy crisis is
reportedly causing panic among some legislators.  This  panic appears to be
moving a SoCal bailout plan forward.

 Sources report that a modified Plan B deal is  "not that far off"; it will
likely take one to two weeks (more likely closer to  two) to move a deal
through the Assembly and the Senate and to the governor's  desk once it is
introduced.

2. What Would the New Plan B Look Like?

- This modified Plan B deal, which  will originate in the Assembly, will
almost certainly include a dedicated  rate component to pay SoCal's
undercollect.  Revenue bonds will be issued  securitized by this dedicated
rate component.  It is also very likely that  the generators would be offered
70 cents on the dollar for what they are owed  immediately, with the
possibility of more if they win litigation.  (Sources  report that the state
is "fairly confident" that at least most generators  would not be successful
in winning this additional money.)  Assembly Speaker Keeley  reportedly
remains the driving force behind this plan, and it is being drawn up  from
within his office.

3. Transmission Lines

- It remains unclear at this time whether a  transmission line purchase or
option to purchase will be put into the deal,  since this is a major point of
contention between the Democrats and  Republicans.  According to sources, the
Assembly is "working on  this."

4. Plan Looks Good to Pass Both Assembly and Senate

- According to sources, the vote count for passing  a deal containing the
above components (except the transmission line purchase,  which is not yet
settled) "looks very good."  The vote in the Senate would  be "very close."
Senator Burton still opposes a bail-out deal, but he  reportedly might not
stand in the way of others from voting for the  plan, making its passage more
likely.  Even opponents of the plan  (including Burton and the consumer
advocates) say that the odds of a modified  Plan B passing the Senate are
better than 50-50.  These opponents are  reportedly "pessimistic" about their
chances of stopping a Plan B from passing  at this point.

5. Caveat: Generators Are Waiting For Guarantees That the Witch Hunt Will End

- As reported previously, sources continue to  believe that generators would
be reluctant to take a 70 cent-on-the-dollar  haircut without the state
offering them relief from further prosecution.   (Without this relief, the
state could give them 70 cents, then try to take away  even more.)  Sources
report that even opponents of the plan accept that the  generators should be
offered this relief from prosecution.  Thus, it  appears likely at this time
that most generators would accept a 30 percent  haircut if they were paid
immediately.  Also, sources believe that the  securitization on the dedicated
rate component offered in the modified Plan B  would be sufficient to pay
back those generators who successfully litigated to  win more than 70 cents
on the dollar.

- Sources believe that SoCal Edison's creditors are  likely to forebear from
filing an involuntary bankruptcy long enough for this  plan to go through,
since it would pay back most of what they are  owed.

6. PG & E Could Also Be Dealt In

- If this plan succeeds, it will almost certainly  be taken to the bankruptcy
court and offered to PG&E as part of a  reorganization plan.  This plan can
be offered at any time within  PG&E's "period of exclusivity."  This is a
90-day period (though it is  often extended) following the filing of a
bankruptcy petition.

- However, sources report that the state is  concerned about how to approach
the bankruptcy court.  Based on Supreme  Court precedent (which legal sources
within the state have been reviewing), the  state would likely lose its
sovereign immunity if it entered as a party into the  bankrutpcy court.  This
is a problem because the stakes in this case are so  high.

7. Bailout Bill Would Require Follow Legislation For A New Rate Structure

- Even if the state passes and signs a SoCal  bailout, it would still need to
pass a rate structure that would allow SoCal and  PG&E to flow through cost
increases to prevent them from once again facing  bankrtupcy.  Therefore,
this plan does not make the crisis go  away.


Karen,

Do you want me to send you the bulls and bears through email? It will probably be in about an hour when I finish it.

Monika


Here is a recap:

all nx1 and all paper buys

Tetco M3:

4/01  180,000  0.47
5/01  100,000  0.465
11/01  20,000  0.85
12/01  20,000  1.15
4/02-10/02 40,000/mth 0.44

Transco Z6

4/01  110,000  0.70
11/01  40,000  1.60
12/01  40,000  2.00

Henry Hub

4/01-10/01 70,000  .0075

Matt


Ed:

CA has responded with the following comments:

(1)  Additional Event of Default - CA will accept if minimum ratings are set
at BBB- or Baa3.

(2)  Financials -  no Cargill entities provide quarterly financials as a
matter of practice.

(3)  Setoff - will not agree to our usual affiliate setoff language but will
agree to setoff under the ISDA  or other agreements.

CA has not accepted our cross default threshold language or guaranty pending
a determination from their credit group.

Please let me know your response.  Thanks.  SS

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com


Paul, Matt and Edmund:

Attached is a copy of the Master Netting Agreement among BNP Paribas and Enron North America Corp., et al.  It is imperative that this master netting agreement be executed as soon as possible tomorrow morning (11/27), so I am asking your assistance in getting this document signed.  The UK entities to sign are EEFT, Enron Capital & Trade Resources Limited, Enron Credit Limited and Enron Metals Limited.  Please leave the signature pages as set forth on the attached document, as Enron Metals may be deleted from the agreement.  At this point, we aren't sure, so we will have it sign on a separate page and then if they are not a party to the agreement, we will omit their signature page.

Please take whatever steps are necessary to have the attached document signed ASAP.  Harlan Murphy (713/345-2679 is the lawyer here in Houston who prepared the document.  Please contact either Harlan, Mary Cook (713/345-7732), Elizabeth Sager (713/853-6349) or Carol St. Clair (713/853-3989) if you have any questions.  Bill Bradford is the Credit contact and his number is (713) 853-3831.

When the document is signed, please fax the signature pages to me at (713) 646-3490.

MANY THANKS!!!!!!!

Marie

Marie Heard
Senior Legal Specialist
Enron North America Corp.
Phone:  (713) 853-3907
Fax:  (713) 646-3490
marie.heard@enron.com


---------------------- Forwarded by Kay Mann/Corp/Enron on 06/13/2000 09:05
AM ---------------------------

"Boyd J. Springer" <Boyd_J._Springer@jonesday.com> on 06/13/2000 08:52:58 AM
To: dtucker@bracepatt.com, cdade@bracepatt.com, kay.mann@enron.com
cc:

Subject: Park and Loan

_______________________________________________________________

This message and any attachments are intended for the individual or entity
named above.  If you are not the intended recipient, please do not read,
copy, use or disclose this communication to others; also please notify the
sender by replying to this message, and then delete it from your system.
Thank you.
_______________________________________________________________

On further review, I don't think we need to challenge the proposed
reference to Parking and Loaning Transactions as being "interruptible".
Although Peoples' GTC does not characterize this service as interruptible,
there are provisions in the GTC re scheduling and priority that render the
service interruptible, e.g. Sect. 6.3.


Sorry for the confusion: The due date for the second paper is next Wed.,
11/28. See you then.


Hunter,

We are scheduled to lose 7 in Feb 2002.
Jozef Lieskovsky
Neeran Pathak
Lauren Schlesinger
Catalina Cardenas
Bart Burk
Justin O'Malley
Bilal Bajwa

We secured 2 from the trading track schedule attached (George Huan, Gary Linhart).  The other two (Brent Dornier, Scott Freeman) are going to the West Desk.

We would be left with 6 thru Aug 2002:
Aaron Berutti
Adam Bayer
Shiela Chang
Jeremy Lo
Brian Falik
Jason Huang

I have one new hire starting in late December from Wellesley (she was an intern in Gossett's group last summer).  I would need to hire 4 people to replace the February rotations.  Talking to the group this morning, they are already asking if they can stay on past their rotation dates, as many want to stay on the gas floor.  Let me know if you have any questions or want to discuss.

Chris

 -----Original Message-----
From: 	Shively, Hunter S.
Sent:	Monday, November 12, 2001 3:23 PM
To:	Gaskill, Chris
Subject:	FW: suggested rotations - trading track new hires

does this plan satisfy our needs?

 -----Original Message-----
From: 	Buckley, Karen
Sent:	Friday, November 09, 2001 11:00 AM
To:	McMichael Jr., Ed; Gossett, Jeffrey C.; Gaskill, Chris; Superty, Robert; Presto, Kevin M.; Shively, Hunter S.
Subject:	suggested rotations - trading track new hires

 << File: Trading Track  Rotations Novembern 7th.xls >>

All,

The attached spreadsheet outlines the rotatons for the internal new hires.    Following your changes/comments/suggestions I will forward to Lavorato so we can finalise with the analysts and associates.

Thanks, karen.


Here are some more questions.  These guys are only bidding on Lincoln, so all
of these should be just Lincoln questions.  Thanks again for your help with
these.
Ben
---------------------- Forwarded by Benjamin Rogers/HOU/ECT on 10/24/2000
11:17 AM ---------------------------

"Michael P Cazaubon" <michael.cazaubon@exeloncorp.com> on 10/24/2000 11:06:42
AM
To: benjamin.rogers@enron.com
cc: "David L Stewart" <david.stewart@exeloncorp.com>
Subject: More Lincoln Questions

Ben,

Thanks for the response on the first set of questions on Lincoln.  Attached
are some additional ones that we would appreciate your help on

Thanks!
Mike Cazaubon

(See attached file: Exelon Lincoln Q&A 10-24-00.doc)

************************************************************************
This e-mail and any of its attachments may contain Exelon Corporation
proprietary information, which is privileged, confidential, or subject
to copyright belonging to the Exelon Corporation family of Companies.  This
e-mail is intended solely for the use of the individual or entity to
which it is addressed.  If you are not the intended recipient of this
e-mail, you are hereby notified that any dissemination, distribution,
copying, or action taken in relation to the contents of and attachments
to this e-mail is strictly prohibited and may be unlawful.  If you have
received this e-mail in error, please notify the sender immediately and
permanently delete the original and any copy of this e-mail and any
printout. Thank You.
************************************************************************

 - Exelon Lincoln Q&A 10-24-00.doc


As you may be aware, Enron Corp. is a member of the Official Unsecured
Creditors' Committee appointed in the Pacific Gas and Electric Company
bankruptcy case. Michael Tribolet with the Risk Assessment and Control Group
is Enron's designated representative on the committee and he is being
assisted by Lisa Mellencamp in the Enron North America Corp. legal group.
Please be advised that they will be restricted from disclosing certain of the
information that they receive.

Attached are Ethical Wall Procedures regarding confidential information that
Enron may receive as a member of the committee. It is important that you read
the procedures promptly, print the Employee Certification attached and sign
and return the Employee Certification to the Compliance Department as
directed.


It may be of interest to you

LM


I was thinking that may be we should ask El Paso to furnish aver. daily volumes that were scheduled as receipts into El Paso' system from the proposed 20 pools from Jan 1- Aug 31 of this year to get an indication of whether there is any gas behind these pools.  What do you think?


do you know where to buy x b/c i heard she digs that.  what happened to her
boyfriend.


CALENDAR ENTRY:	APPOINTMENT

Description:
	Transcanada

Date:		1/31/2001
Time:		3:00 PM - 4:00 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Hi,

I am having these documents and another faxed to Chris Calger in Colorado. He
wanted to be sure that you had access to them.

Thanks,
Laura
---------------------- Forwarded by Laura Wente/HOU/ECT on 10/13/2000 09:27
AM ---------------------------

Michael Etringer

09/01/2000 10:23 AM

To: Laura Wente/HOU/ECT@ECT
cc:
Subject: Attachments


This response my be outdated given that I think we have resolved this
already, but my take on this is that in reality this won't really be an
issue.  I'm confident RBC and Enron will work together to unwind the
transactions in an appropriate manner.

	Enron Capital & Trade Resources
	Canada Corp.

	From:  Peter Keohane                           09/19/2000 01:41 PM

To: Brian Kerrigan/HOU/ECT@ECT, Soma Ghosh/HOU/ECT@ECT, Sara
Shackleton/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, William S
Bradford/HOU/ECT@ECT, Derek Davies/CAL/ECT@ECT, Greg Johnston/CAL/ECT@ECT,
dpef@blakes.com, wen@blakes.com
cc: Sharon Crawford/CAL/ECT@ECT
Subject: Alberta PPA Financing - Prepayment Right

A seemingly unresolved issue is our right to prepay before the end of the
term of the swaps.  I believe this is something we want commercially, but
what is not clear to me is how we envision this working commercially.  In
other words, although any swap can be bought out, I do not believe the ISDA
documentation contemplates agreed terms for buy-out.  Rather, the party
seeking to get out early asks for the counterparty's offer and hits the offer
or not.  If RBC or Swapco was not willing to make an we are willing to
transact at, we might not be able to get out.  Perhaps Sara could advise if
my interpretation of the ISDA is right and, if so, Brian and Soma can confirm
how they see prepayment working without a specified prepayment right.

PK


This e-mail is confidential and may well also be legally privileged. If you
have received it in error, you are on notice of its status.  Please notify us
immediately by reply e-mail and then delete this message from your system.
Please do not copy it or use it for any purposes, or disclose its contents to
any other person:  to do so could be a breach of confidence.  Thank you for
your co-operation.  Please contact our
IT Helpdesk on +44 (0) 20 7936 4000 Ext.2000 or email ITHelp@freshfields.com
if you need assistance.

Further to our email earlier today, please find attached a revised draft of
the entitlement letter, reflecting the comments of the noteholders.

Kind regards
Isabel

 - COMPARE001.DOC
 - NY003701393.DOC


mark

are there any templates you use when rejecting a prospective EOL C/P due to
insufficient creditworthiness (i.e. fails the CFTC net worth, etc test)?

Thanks.
Justin

---------------------- Forwarded by Justin Boyd/LON/ECT on 11/09/2000 18:59
---------------------------

Caroline Duggan
11/09/2000 14:22
To: Justin Boyd/LON/ECT@ECT
cc:

Subject: Rejection letter for EnronOnline

Hi Justin

I could really do with some help on this!

McTaggart Shipping and Management have applied for access to EOL, however
Credit have rejected their application
due to the fact that this counterparty do not pass the CFTC test for
financial trades. I have spoken to Paul Maley about this
and basically McTaggart don't meet the required financial requirements.

I have constructed a draft letter to send to the customer, and I have run
this past Amita, but we're not sure on how we should
phrase the reason why we are rejecting them. Credit have told us not to be
too specific.

Could you possibly help us out with how we should draft this letter??

Pierre Aury (trader) has been in contact with this customer and apparently
they are pretty touchy!!

Thanks
Caroline

Thank you for your application to trade via EnronOnlineTM. Due to your
company not meeting regulatory requirements for financial trading, we will
not be able to provide you with access to the site at this time.

If you have any questions or need any more information please do not hesitate
to contact us at +44 (0)20 7783 7783 or E-mail us at help@EnronOnline.com.

Once again, we appreciate and thank you for your interest in EnronOnlineTM.


When: Thursday, June 28, 2001 2:00 PM-5:00 PM (GMT-06:00) Central Time (US &
Canada).
Where: EB2601

*~*~*~*~*~*~*~*~*~*

If you have any questions about this meeting, please contact Dan Luciano @
x5-3911.


First of all, this is a brand-new contract, not a modification of one that
used to be IT.
It's for LFT space that we have posted according to our usual procedure.  A
receipt point has now been specified:  Bloomfield Compressor.  Our tariff
allows us to cancel LFT up to 10 days a month, but it also provides that the
parties can agree that the number of days can be fewer, so Sempra negotiated
us down to only one day.  TK worked with Darrell Schoolcraft on this and they
determined this would be acceptable from an operational standpoint.
Scheduling will happen pursuant to the LFT priority set forth in our tariff.
I left a message for you just now; call when you have a minute.

Drew Fossum
11/19/2000 06:32 PM
To: Susan Scott, Mary Kay Miller/ET&S/Enron
cc: Mary Darveaux/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON

Subject: Re: TW Negotiated Rate Filing

Susan, MKM's got some good questions about this.  I'm still nervous as a cat
about the deals, so please give me a call Mon. AM and let me know what you
know about the scheduling priority and how it has changed now that this is an
LFT deal.  DF

Mary Kay Miller
11/19/2000 07:39 AM
To: Mary Darveaux/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Drew
Fossum/ET&S/Enron@ENRON
cc:

Subject: Re: TW Negotiated Rate Filing

We really do need to understand the scheduling of this,  if alternates
haven't been scheduled, IT are and now an LFT---  seems a little
questionable, so we need to understand the answer.  Also without knowing the
receipt point how do we know the deal can be done as LFT??  MK

Mary Darveaux
11/16/2000 05:34 PM
To: Mary Kay Miller/ET&S/Enron@ENRON
cc:

Subject: TW Negotiated Rate Filing

I forgot to add that this is an LFT.
---------------------- Forwarded by Mary Darveaux/ET&S/Enron on 11/16/2000
05:18 PM ---------------------------

Mary Darveaux
11/16/2000 04:50 PM
To: Glen Hass/ET&S/Enron@ENRON, Barbara Bischoff/ET&S/Enron@ENRON
cc: Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON

Subject: TW Negotiated Rate Filing

Alas- a negotiated Rate Filing with a few days notice!!!!

TK has done it again  Negotiated Rate deal with Sempra
   December 1 thru December 31
   Rate $1.00
   10,000/day
   Receipt Point  ____?  (to be provided)
   Delivery Point  PG&E Topock

I will prepare the filing for November 30th.  Barb, please add to our filing
log.


Sally

As discussed before John has asked us to send out this reminder of our
standards - clearly as we gather the data for Shona's daily reporting we will
discuss with the office of the chair

Cheers

Mike
---------------------- Forwarded by Mike Jordan/LON/ECT on 14/11/2000 14:30
---------------------------

Enron Europe General Announcement
14/11/2000 13:00
Please respond to Mike Jordan/LON/ECT
To: ECT Europe, ECT Asia Pacific
cc:

Subject: Newsletter: GlobalFlash!

John Sherriff writes.......

Enron Trading is all about a unique combination of being "tight" and
"loose".  We give the managers of our trading books tremendous freedom
("loose")
to make decisions on the spot and manage for profitability.  We can do this
because we have a standard way of controlling ("tight") that is consistent
from trading book to trading book.

Summarized below are the highlights of our fundamental risk management
standards.  These standards are an integral part of our trading discipline
and culture and we expect all our employees both commercial and noncommercial
to absolutely understand these control standards.  These standards will
evolve over time (especially as we move to new electronic trading methods)
but the basics of separation of duties and accurate reporting are at the
cornerstone of
our business.  So please ask plenty of questions about these standards, make
sure you understand them and let us know when we are not living up to them.

Questions and feedback should be directed to Mike Jordan on extension 34703.

RISK MANAGEMENT CONTROLS IN A TRADING ENVIRONMENT

To manage operational risk in a trading environment Enron has designed and
implemented operational control standards. These standards, which are common
for all businesses, aim to prevent errors and inaccuracies and ensure the
timely recording of trading transactions.

What standards does Enron have in place?

Enron has six fundamental standards for risk management that cover:
- Recording transactions
- Reporting daily profit & loss and risk positions
- Confirmation and execution of transactions
- Settlements with counterparties
- Risk management and settlement system information reflected in the general
ledger
- Implementation of business and control infrastructure

What else is important when controls are implemented?

Implementing segregation of duties within the trading environment ensures
that no individual has control over all phases of a transaction.   This
allows incompatible functional responsibilities to be kept separate,
specifically:
- Authorization and execution of transactions
- Recording and performance of transactions
- Monitoring and review of trading activities

Why do we need to standardised controls?

To assimilate new or build existing commodity businesses Enron needs to be
nimble and responsive. A robust and stable control process can be duplicated
or flexed quickly and confidently, providing scalability and the capability
to assess and manage operational risk.

How do we measure successful control?

By identifying and reporting metrics for all standards we build an
understanding of compliance across all businesses and seek continual
improvement. This compliments the qualitative cross-checking process
facilitated by communication between Commercial, Risk Management Operations
and RAC.

The control measurement process will be part of a global initiative across
all commodities and locations.

Where can you find details of our fundamental standards?

Mike Jordan - Head of Risk Management Operations for Enron Europe
Fernley Dyson - Chief Accounting Officer for Enron Europe


Hey Guys,  I just typed a small novel (below) about JRTC and thought I send
it out, it's answerin a question a friend asked about how the simulated
comabt stuff works and has an example at the end.

Excellent question (about what makes the bad guys run away during an
exercise).

The Army paid Grumman a shitload of cash to make "laser tag" stuff for us.

It's called MILES and if you ever see a picture of an army unit on an
exercise you will see that the soldier is wearing a harness over his normal
Load Bearing Vest(LBV), the harness has four receptors on the front and four
on the back, in addition there is a doughnut shaped belt of receptors that
goes on the kevlar helmet.  Vehicles also have receptors mounted to them,
every thing from HMMV's to the tanks to the helicopters.

Our weapons systems have transmitters on them, it'll look like a little box
mounted on the front of the weapon, the box has a pressure sensor so every
time the gas from a blank round firing hits it it fires a laser beam down
range.  If the laser beam strikes a receptor the guys harness will emit this
God awful high pitched whine that lets everyone know he is down/dead.
AT-4's and Dragons (bazooka like anti-armor weapons) are simulated by what
are called Vipers, same weight, same size, except it fires a big powerful
laser that will be strong enough to activate an enemy tanks MILES.  The
armor vehicles MILES game is pretty neat.  There are two types of kills on a
tank, a Mobility kill, and a critical kill.  If the Viper or other weapon
doesn't have a solid hit on a sensor in a critical area, a mobility kill
will result which means the explosion just blew the trak of the vehicle but
its' radios and weapons still work.  A critical kill means, the vehicle and
all inside are dead dead dead.  If a tank gets a critical kill the MILES
gear will actually shut the vehicle down and kill its radios.  The guy will
just be drivin along and then he will hear over his radio a females voice
say, "Critical kill" and the only thing that will work on the vehicle after
that are the brakes.

So, direct fire weapons systems are pretty easy to replicate, target wears a
receptor, shooter fires a transmitter.

Indirect fire weapons though are a bit more difficult,  whereas before the
shooter always had eyes on the target and thus could directly place a laser
beam on target, artillery often shoots targets that no one directly see.

There are two ways around this.   At the National Training Center (NTC)
where they do all the armor against armor training, they have the MILES 2000
system.  You have an armored motorized rifle company(MRC) sitting at point
X,  I have an observer 15Km away who, with optics can see your
MRC, my FO calls in a fire mission, based on the target description a Bn 3
will be fired (54 rounds fired in 3 volleys as there are only 18 tubes in a
Bn.  The Observer-Controllers (OCs), kinna like referees, will monitor the
Call for Fire from the observer to the tubes, and the OCs will take the fire
mission data and plug it into their big MILES computer which will take into
account any errors the observer may have made and any errors the gun
batteries (instead of Artillery Companies we have artillery Batteries (6
guns)) may have made.  When the gun batteries tell the observer that they
have pulled the trigger, the OCs, who are always listening, will pull the
Miles trigger.  What happens then is a satellite hovering above NTC will
blast down a laser with a footprint large enough to simulate the area 18
artillery rounds would take up, it will do this 3 times to simulate all 3
volleys landing.  Any vehicles caught in this footprint will be assessed as
damaged/destroyed.

At JRTC where the Light Fighters (i.e. no armor assets organic to them)
learn to play,  we don't get no stinkin satellites.  What we do there is,
when a fire mission is called to the guns, the OCs will monitor it and enter
the data in their computers, the computer will take into account any errors
made by the FO and the guns and will spit out a grid coordinate,  this grid
will be passed to a "Fire Marker" which is a crazy guy with a four wheeler,
a GPS, and a god gun (a hand held transmitter that fires a universal kill
laser i.e. men to tanks and aircraft).  I say crazy because these guys are
civilians who get bonuses based on how fast they can get to the target grid.
  Their average response time is 4 1/2 minutes, which is about 3 minutes
longer then it would be in real life so it's not as cool as MILES 2000.  So
you'll see these guys haulin ass through the woods on theses 4 wheelers
tryin to get to their target grids on time, and God help you if he pulls up
into your position and no you can't haul ass if you see one comin your way
cause your OC who is walkin with your unit will zap you on the spot if he
sees you runnin from a fire marker.  I'll close this bad boy with a little
story.

"Oh shit, there I was" (all good 'war' stories gotta start with this).
We had started the first phase of the rotation, "Entry into the Box" (the
box is the JRTC engagement area) at 2300hrs the previous night and had
fought our way 7 Km SW hand railing a road, identifying mine/wire obstacles
and eliminating the Observers over watching them.  It was 0800 the next
morning and we were dead f-kin tired and had finally reached our main
objective which was a road inter-section in a semi wooded area just to the
south of the main air field that the rest of the Brigade Combat Team (BCT)
was gonna use to lift in the rest of the support assets.  There was a BIG
triangular berm area just off the road, basically the dirt walls were 10 ft
tall 50 yard long.  We moved out of the tree line and occupied it cause at
the time it looked like it would be super easy to defend, which was good
cause we needed to hole up for a bit and catch out breath, plus our COLT
team (Combat Observer Laser Team = mounted (on a HMMVV) FO's with Laser
designators to guide Copperheads and Hellfire missiles, basically vehicle
killers) and Bradley support vehicles had just 'discovered' (BOOM) a mine
field at the intersection, this was happening as we were occupying the berm.
  So we detached a small element to go evac the Casualties from the
vehicles, the 1SG and a couple of joes. 3 min later the 1SG and his team
were nailed by anti-personnel mines surrounding the mine field while trying
to aid the wounded inside the vehicles.  At the same time a "Civilian" truck
with two redneck lookin females showed up like they were fixin to drive
right on through the road so we had to send a few guys out of the berm to
stop/search the vehicle (at JRTC they employ real civilian actors to portray
Civilians on the Battlefield or COBs, because in real life there are COBs
and we gotta know how to deal with them and accomplish our mission at the
same time).  So we got the 1SG and a couple of guys down at the obstacle, a
COB truck right outside the berm when the CO decides to go check on the
obstacle.  By this time we had been in this BIG berm (read TRP (Target
Reference Point or somethin the enemy probably has his guns laid on just
waitin for some morons to park their sad tired asses in there long enough to
get a mission off)) for like 15 minutes when sure enough off in the distance
we hear this vrrrrrm getting steadily louder and louder.  We were so tired
we were basically denying the obvious, "there's no way he's headed for us,
please God don't let him be headed for us" basically you had an entire
company in a 100 yard radius which is about the same size as a 82mm mortar
impact area.  So there we are listening to this 4 wheeler get closer and
closer and basically all we can do is start to get all our gear back on and
get ready to HAUL ass.  Of course we can't legally run until the first round
impacts.  So this guys comes tearin down the road, shoots off the road and
pulls SMACK DAB into the middle of the berm, jumps off his bike and starts
UNLOADING with air burst Arty Simulators (basically a little flare gun that
pops 1/4 sticks of TNT up 40 ft into the air to simulate incoming rounds.
Note: these are only used when the grid is so accurate that using ground
burst simulators would pose a hazard to troops).  Basically what this told
us is that we were setup, the baddies were just waitin for us cause the
rounds were accurate on the first volley and needed no adjustment.  So yeah,
this joker is poppin off airburst TNT, after the first burst I yelled
INCOMING and got up and hauled ASS.  Luckily I was close to the exit and
started movin out FAST, because between airbursts the Fire Marker was just
sweeping left to right with the God gun as guys were scramblin tryin to get
out.  I got out of the Berm and just kept runnin a good 200M because I'm
Artillery and I know what the burst radius is on these suckers.  I looked
back and saw the Infantry guys stoppin at a tree just outside the berm.
Since there were no visible Real life ground bursts they thought they were
safe.  As I was yellin at them to keep movin an OC came out and just whacked
em all (16 guys).  As the rest of the people who made it out were still
runnin, about 25 of us and we were all now 150-200M North of the berm,
scattered all over hell.  Little bunches of 5-6 guys runnin to trees and
collapsing.  Just as the last of the living made it out of the berm, we hear
this vehicle come tearing outta the trees about 50M to our left and from
lower ground.  Sure enough it's a DsHKA (read Dishka, basically a 50 Cal on
a friggin truck bed),  so there this fucker is lighting us up from the left
and enemy 82mm Mortar fire blastin our tail ends.  Since the DsHKA was a
high payoff TGT I was immediately on my net sreamin "Holy Shit we got a
DsHKA here, Grid 785436 HELLLLPPPP!!!"  At the same time we got Infantry
guys tryin to suppress the joker on the back of truck with their M4's while
trying to get two Vipers together (we were told by the OC's that the only
thing they've ever seen kill vehicle here with was two Vipers fired at the
same section of the vehicle at exactly the same time)  but the Viper teams
were scattered all over hell.  All this happened within about 30 seconds,
the CO had seen us come tearin outta the Berm and heard the DsHKA light up
so he was on his net talkin to the Kiowa's (scout helicopters but they're
armed).  So we're pinned down, trying to suppress this truck while dodgin 50
Cal laser blasts (since its just MILES a blade of grass can deflect the
laser).  FINALLY the Kiowas show up (actually they got there respectably
fast only 2-3 minutes) chase the bastard down and smash him with their
hellfires.  With 30 of 65 guys dead, and one DsHKA down, we were ready to
get a little rest and then start huntin the mortar and other 2 DsHKAs that
were supposed to be in the area.

Basically we got the shit ambushed outta us, it was really a pretty nice
setup on the enemies part.  We were stupid enough to setup in an obvious
terrain feature, one that was no doubt on the Enemy's target lists.  So when
the mortar rounds started droppin and we started pouring out of the berm
there the 50 cal was waitin to mow down whoever didn't get killed by the
Arty.

Anyways, that's one of my JRTC stories and subsequently one of the largest
e-mails I've ever written. So I'm gonna forward it to the rest of the guys.

Welp, its about time to go get my drink on, talk to y'all later.

LAWLER,OUT.

 >Hell, I thought Consultants had a lotta acronyms.....Hey when you guys go
>through these exercises, what makes someone high tail out of an attack
>stance...i.e. I know you're not firing live rounds at one another, so how
>do they simulate real life scenarios?  Also, in concerns with deer hunting,
>I'll be headed down to Junction (our lease) to pull a trophy this weekend.
>I'll probably freeze my ass off, but I've had my deer picked out since
>Sept.  Later.
>
>Dickey
>
>
>
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Thanks for following up on this all.  I'm good on Stuart's recommendation.  DF

Lee Huber
10/19/2000 11:07 AM
To: Drew Fossum/ET&S/Enron@ENRON
cc: Kimberly Watson/ET&S/Enron@ENRON, Martha Janousek/ET&S/Enron@ENRON

Subject: PROS piece in Gas Daily

FYI
---------------------- Forwarded by Lee Huber/ET&S/Enron on 10/19/2000 11:05
AM ---------------------------

"Ford, Stuart J." <sford@velaw.com> on 10/19/2000 08:26:28 AM
To: "'Huber, Lee'" <lhuber@enron.com>
cc: "Stockbridge, Edward T" <tstockbridge@velaw.com>

Subject: PROS piece in Gas Daily

PRIVILEGED AND CONFIDENTIAL
ATTORNEY/CLIENT COMMUNICATION

Lee:

Since we spoke last night I have talked to Ted.  We all come out the same
way, I think, that this episode is probably best left alone.

First, unless Kim has information to the contrary, I think we would have a
hard time establishing that the only way the alleged "failed" Enron system
became known to PROS was via the PROS/ET&S relationship.  If it could have
become known independently via a source not protected by a nondisclosure
agreement, then we have no real complaint.

Second, if the statement in the Gas Daily is actually true, then we have no
axe to grind about defamation or related issues.

It is unfortunate that a casual reader might think that the statement
actually refers to a failure in the PROS/ET&S RM work rather than to a
failure in the prior Enron capacity management project.  Perhaps we are more
sensitive than most, however, knowing what we know.  I would guess that
there are probably a lot of readers out there who are unaware of the ET&S RM
project and thus would not know to mistakenly attribute the statement to the
ET&S RM project.

Further, the mistake that a casual reader might make might also be
attributable to sloppy journalism as much to what McCracken at PROS may have
actually said.

Finally, the longer we do not hear from PROS, the more their "case" weakens
in the future complaining about the genealogy of our RM product.

In summary, probably best left alone.  But I do recommend that we continue
to monitor for this stuff.  It appears the PROS RM products are now
available and we can only guess what Enron information is inside them to
make them work, or was used to sell them or make them work.

Stuart Ford
VE


Here is the draft testimony of Paul Amirault on storage issues.  There is
additional material on balancing and on storage price floors which will be
added as soon as possible tomorrow.  Please send comments to Mike Day as
soon as possible.  Thanks.

 <<x12282.doc>>

 - x12282.doc


Hope it is going well out there.

Michael is sick (I'm guessing strep), so I'll be calling in from home today.

Kay