FYI. I assumed you had already been passed this note, but if not here it is.
----- Forwarded by Alan Aronowitz/HOU/ECT on 05/16/2001 09:31 AM -----

	Mark Evans
	05/16/2001 06:29 AM

		 To: Jane McBride/AP/Enron@ENRON, Carey
Sloan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ENRON
		 cc: yamasaki@21stenergy.com, Jonathan Chapman/Enron@EUEnronXGate, (bcc: Alan
Aronowitz/HOU/ECT)
		 Subject: E POWER: LEGAL SUPPORT GOING FORWARD

Dear all,

the position going forward is as set out below. I have discussed this at
various times with all concerned and I believe this works for everyone. In
particular I spoke to Kimio yesterday but because of our respective
schedules, have not been able to discuss this with Kimio in great detail.

We do of course have separate arrangements in place for the OITA project,
which remain unaffected by this note.

Any issues, please call me. Carey: I am conscious that I owe you a call and
will try to get you today and tomorrow.

Legal Support for E-Power for all matters other than Oita

Because of Enron Japan and E-Power now effectively reporting in to different
divisions of Enron, and because Enron Japan's legal function is already
stretched pretty much to capacity, it no longer makes sense to merge the
legal functions of Enron Japan and E-Power.

Consequently, as has always been the case, Kimio Yamazaki will be the go-to
lawyer for E-Power on all its activities. Kimio will be supported from Enron
Europe London legal department, in particular by myself and by Jon Chapman
and his legal group which covers all Enron Europe asset development
activities.

The key function of this support role, aside from assisting Kimio on specific
issues he may have, is to ensure that

- Kimio is aware of Enron Europe policy and practices and that documentation
is compliant with it to ensure smooth passage through the CACs and DASH
process.

- the London legal department is fully aware of the status of the Japanese
projects so that London senior management can be kept informed as necessary.

To facilitate this, Jon and I will have a regular weekly conference call with
Kimio.

The intention is not that Enron Europe lawyers will be drafting E Power
documentation or dealing directly with E Power developers or seeing all email
flow on all projects (although of course in emergencies or Kimio's absence,
that may be necessary).  Primary responsibility on the ground is with Kimio
and Kimio will manage the relationship with outside counsel to ensure that E
Power's requirements are met and to the requisite standard.

I hope that clarifies things. Carey: I am happy for you to circulate this
note to your developers as you see fit.

Thanks to all.

       Mark


Marty,

Gracie Presas is asking about training for ENA for harassment.  As we
discussed, I think it would be a good idea to offer several sessions to Enron
global wholesale and ENW, to maximize efficiency.  So, I told her to call you.

The lawyer contact on this is Kerry Notestine at Littler Mendelson.  His
number is 713-652-4748.  Thanks.

Michelle


At the request of Barbara Gray, we have created a directory to which you can
copy your Houston Pipeline Company material. Each of you has an individual
directory for your use that is located in &O:\Corporate\HPL Sale8. So, for
example Tom Shelton has a directory at &O:\Corporate\HPL Sale\tshelton8 in
which he can store his HPL files. This is to facilitate coping the files to
CD so they can be sent to our Washington lawyers. To save your e-mail
messages to the network, follow the appropriate directions below, depending
on whether you are using Lotus Notes or Microsoft Outlook to read you e-mail.

Lotus Notes:
Open the message you want to save.
From the &File8 menu choose &Export(8.
Make sure you have changed the &Save in8 directory to &O:\Corporate\HPL
Sale\<your user name>8, substituting your actual network user name for &<your
user name>8.
Choose a name for the mail message.
Click Save.

Microsoft Exchange:
Select or open the message that you want to save.
From the &File8 menu choose &Save As(8.
Make sure you have changed the &Save in8 directory to &O:\Corporate\HPL
Sale\<your user name>8, substituting your actual network user name for &<your
user name>8.
Choose a name for the mail message.
Click Save.

If there are any questions please call Mark Thibodeaux (x39373) or Russell
Long (x53754).

Thank you,

Mark Thibodeaux
Enron Corp.
IT Compliance


I have tentatively booked us on the QE2 sailing from Southampton at 5pm on August 29, arriving New York at 7:30am on September 4.  You and Amanda have a Caronia class cabin at $2045.32 per person, including air from New York to London (with a business class upgrade on Continental).  I have a single in the same class (so we eat in the same restaurant).  My plan would be to fly over on Sunday evening - the 26th - since I have to be in Ohio that morning.  With that in mind I have also booked jr. suites for us at "41" the all-inclusive London hotel near Buckingham Palace that I've mentioned to you before.  They are at 275 GBP per night (2 nights).  Of course, if you guys wanted to go earlier to spend more time in London, I am sure that would be possible.

The difficulty is that Amanda has indicated an interest in staying in Europe longer - certainly understandable.  Her preference would be to go over on the boat leaving NY on September 5, arriving in Southampton Sept. 10 and then stay in Europe for a few weeks.  That doesn't work quite as well for me because I only have 6 vacation days left and on that routing I get one less day in London - i.e. we get off the boat on Monday morning and I have to fly back Tuesday morning.  On the other hand, we wouldn't be jet lagged on arrival in London!

They will hold the reservation until tomorrow.  What's your preference?

Mark Taylor
Vice President and General Counsel
Enron Wholesale Services
(713)853-7459


k#  MDQ  Delivery Receipt
894027  8000  M2  Access (this is less than the MDQ for now)

---------------------- Forwarded by Chris Germany/HOU/ECT on 09/29/2000 03:47
PM ---------------------------

Chris Germany
09/29/2000 03:44 PM
To: Meredith Mitchell/HOU/ECT@ECT, Cynthia Franklin/Corp/Enron@ENRON
cc: Scott Goodell/Corp/Enron@ENRON, Judy Townsend/HOU/ECT@ECT
Subject: Tetco MDQ's

Tetco MDQ's for OCT

k#  MDQ  Delivery Receipt
892510  16136  M3  Access (same as last month)
892511  7500  M3  Access (same as last month)
893145  5000  M3  Access (same as last month)
892875  9400  M3  Access (same as last month)

892872  19355  M2  Access (same as last month - this # may be too high)
894029  5000  M2  Access (new)
894028  5000  M2  ELA (new)

VNGk#
830015  10555  M2  Access (MDQ is higher but only use 10,555 dth)


Mark,
Susan and I are online in her office if you need to shoot us a quick note.
Otherwise, blah, blah, blah......


16:53:07 Synchronizing Mailbox 'Perlingiere, Debra'
16:53:07 Synchronizing Hierarchy
16:53:07 Synchronizing Favorites
16:53:07 Synchronizing Folder 'Inbox'
16:53:07 	   3 item(s) added to offline folder
16:53:07 Synchronizing Folder 'Outbox'
16:53:07 Synchronizing Folder 'Sent Items'
16:53:07 	   2 item(s) added to offline folder
16:53:07 Synchronizing Folder 'Calendar'
16:53:07 	   2 item(s) deleted in offline folder
16:53:07 Synchronizing Folder 'Contacts'
16:53:07 Synchronizing Folder 'Drafts'
16:53:07 Synchronizing Folder 'Journal'
16:53:07 Synchronizing Folder 'Notes'
16:53:07 Synchronizing Folder 'Tasks'
16:53:07 Synchronizing Folder 'Deleted Items'
16:53:07 	   2 item(s) added to offline folder
16:53:07 Synchronizing Views
16:53:08 Synchronizing Forms
16:53:08 Done


Jeff,

Let me know what you think of this guy.  Wade Cline and Tim Det. are both
high on him.  Jeff Donahue is not so sure but will meet with him on Friday.
During my lunch with Jeff, we discussed that we need a Corp. Dev guy
dedicated to us full time but if he reported to him, that would be great.  I
think we could use that co-ordination with his group as long as we didn't get
a part time guy in the process.  He could also report to us obviously (like
Larry) but i think in this case a dual role makes a  lot of sense.  What do
you think?

If you like Don, he could be an immediate candidate to start doing our Corp
Dev work, but that is of course not the best reason.  I thought he was all
right and he did have a good understanding of our products and is an
innovative thinker.  He has also worked as a trader and although it doesn't
seem possible by his personality, having some background is a plus.

Mike


Cary,
 The changes you propose are okay.  Please accept the changes, print 2
originals, have them signed and forward to me for signature by ENA.  Please
call if you have any questions.

	Cary Metz <CDMETZ@midcogen.com>
	01/16/2001 08:25 AM

		 To: "'Dan.J.Hyvl@enron.com'" <Dan.J.Hyvl@enron.com>
		 cc:
		 Subject: RE: Netting Agreement

Hi Dan,
The following comments are offered for consideration.? If you have questions
or comments, please contact me.

-----Original Message-----
From: Dan.J.Hyvl@enron.com [mailto:Dan.J.Hyvl@enron.com]
Sent: Friday, January 12, 2001 9:30 AM
To: Cary Metz
Subject: Re: Netting Agreement

Cary,
???? Please review the attached netting agreement.? It only applies to the
two contracts referenced in Paragraph No. 1.? If acceptable, please print
two originals, sign and return to me.? I will have it signed by ENA and
return a fully executed original to you.

(See attached file: 2001-002misc.doc)

?
 - ENA.doc


FYI:  our NWPL out of balance is the Canadian desk not keeping up.
PSCO and WIC are the Denver office.

Thanks


Will we be in a position to review our associate and analyst positions this weekend to determine if we can offer a job to Zach McCarroll as an analyst on the desk or in fundies?  Call me at the house, 713-528-1141.

Thanks,
Mike Grigsby


---------------------- Forwarded by Angela Barnett/HOU/ECT on 12/01/2000
03:42 PM ---------------------------

Deb Pepple <dpepplejes@netscape.net> on 12/01/2000 03:31:39 PM
To: Angie Barnett <angela.barnett@enron.com>, Sandy Farrell
<sfarrelljms@netscape.net>, Karla Funnell <jimmie4ever@aol.com>, Donna Hixon
<dhixonhhe@netscape.net>, <bmetcalf863@earthlink.net>, <the.hen@gte.net>
cc:
Subject: Fwd: [Only In America]

____________________________________________________________________
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To: "Toni Wise" <twise@galaxyinternet.net>,        "Stephen Rupchock"
<SRup49120@aol.com>,        "Kathy Spaugh" <KSpaugh@Hotmail.com>,
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Subject: Only In America
Date: Wed, 29 Nov 2000 23:05:21 -0500
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I don't see what the confusion is all about

We now live in a country where I have no President but I do have ...

1) a dead Senator from Missouri going to Congress.
2) a fake President played on TV by Martin Sheen.
3) a new Senator from New York who used to be the wife of the boss
of the man who may be President.
4) a Governor from Florida who is the brother of the man who may be
President and son of a man who was.
5) a sitting President whose wife now will be hanging around the same
men who voted to remove him from office.
6) a senior Senator from South Carolina who, under our current
Constitution rules, could be appointed to be President in this standoff
despite the fact that he is 98.
7) a potential Vice President who, because he did not take his name
off the Connecticut Senate race, could end up being the deciding
factor in how the Senate is composed.

And finally ....
8) A state where a Republican Secretary of State and a Democratic
Attorney General try to determine the outcome of 25 electoral votes
without appearing to be partisan.

Any questions? Frankly, I don't see what the confusion is all about!


Vince, I'm gone through Wednesday of next week.  I plan to work more on this
over the Holiday.  Contact information is in the .doc

 In other news, I didn't get the Total Return Swaps finished.  I have been
unable to nail down certain details.  Concepts are quite clear.

-Kevin K.


To All:

Attached is a credit worksheet to amend the counterparty threshold amount for
this executed ISDA.  I sent a similar e-mail up to the group 4/17, but have
since amended the threshold a second time.

Please use this worksheet to prepare the appropriate amendment language.

Thank you,

Russell


Agree with the first paragraph.

Bets get tougher from here.  Not so obvious and require much larger size to get same juice.  Generally not a good position considering the current world order, or disorder.  Not much juice in gas basis either.  This is where we see whether we are good traders or just great fundamentalists.

 -----Original Message-----
From: 	Hayden, Frank
Sent:	Tuesday, September 18, 2001 5:25 PM
To:	Arnold, John; Presto, Kevin M.; Belden, Tim; Zufferli, John
Subject:	FW: schedule C

Is there any truth to my thoughts or am I showing my ignorance?
I appreciate your feedback.

Thanks
Frank

 -----Original Message-----
From: 	Hayden, Frank
Sent:	Tuesday, September 18, 2001 5:02 PM
To:	Gorny, Vladimir; Port, David
Subject:	schedule C

Looks like all the schedule C activity, we will make quarterly earnings.  That being said, we've lost a lot of cushion and I predict that fourth quarter we will carry some large VAR going into year end.  Let me know if you think we should revisit limits, particularly if we need to offer up to Lavo and crew the best bet for Enron's risk capital.

As an aside, I think the best bet may be gas.  Regarding gas, I'm thinking the "basis" bet is probably more likely than huge NYMEX bet given current NYMEX level may not have enough juice to provide required profit, this being said both price and basis horizon don't appear to have much trading topography?  In East power, we are dog piling length in the Pennsylvania area, an area without a significant gas fired stacks, shorting the Midwest, net net ending up long.   In the West, shorts are still driving risk and in the words of Chuck Berry -how low can it go? Limbo alone suggest we have to hit the dirt sometime, it is trading sub $40 handle

Frank


Attached are my updates to Steve's backgrounder and solutions documents.
I've also attached (for Rick) the summary of the CA State Treasurer's
proposal.

Best,
Jeff


Thanks for the offer!  I think I am all set.  Mark

	SKramer@milbank.com
	11/06/2000 09:43 AM

		 To: Mark.E.Haedicke@enron.com
		 cc: Janette.Elbertson@enron.com
		 Subject: Energy Bar Conference

Mark,
Please let me know if you need to use an office while you are in town for the
Energy Bar conference.  If so, I can have an office reserved for you here --
we are only a few blocks from the Capitol Hilton, the hotel where the
conference will take place.
Steve
Steven M. Kramer
Milbank, Tweed, Hadley & McCloy LLP
International Square Building
1825 Eye Street, N.W.
Washington, D.C. 20006
TEL:  202-835-7508
FAX:  202-835-7586
skramer@milbank.com

This e-mail message may contain legally privileged and/or confidential
information. If you are not the intended recipient(s), or the employee
or agent responsible for delivery of this message to the intended
recipient(s), you are hereby notified that any dissemination,
distribution or copying of this e-mail message is strictly prohibited.
If you have received this message in error, please immediately notify
the sender and delete this e-mail message from your computer.


If you read Ray Alvarez's summary from yesterday evening, open the attached
Word document and read only the changes that we made to the summary since
receiving the final order, which was issued this afternoon.  Alan Comnes

The full order is available at: http://www.ferc.fed.us/electric/bulkpower.htm

SUMMARY OF FERC,S
ORDER ESTABLISHING PROSPECTIVE MITIGATION AND MONITORING PLAN FOR THE
CALIFORNIA WHOLESALE ELECTRIC MARKETS AND ESTABLISHING AN INVESTIGATION OF
PUBLIC UTILITY RATES IN WHOLESALE WESTERN ENERGY MARKETS
(Issued April 26, 2001)

Effective Date -- Price mitigation is effective May 29, 2001.  (ISO needs to
have its day-ahead proxy price ready on 5/28)

Physical Withholding -- To prevent physical withholding, the plan will
require sellers with PGA's to offer all their available power in real time to
the extent not scheduled in bilateral trade.  All California generators, even
those not subject to FERC price regulation, will be required to sell into the
ISO's real time market as a condition of their use of the ISO's interstate
transmission lines. Hydroelectric facilities will be exempted. (This
requirement to provide power is for all hours (24/7) for 1yr)

Price Mitigation - The plan will establish a single market clearing price
auction for the real time market.  During Stage 1, 2 and 3 emergencies in the
ISO's real time market, each generator (other than hydro) with a
participating generator agreement is required to offer all available power
and bid its marginal cost based on the generator's heat curve, emission
rates, gas costs and emission costs, plus $2/MWh for O&M.  The gas cost will
be the average daily cost of gas for all delivery points in California;
emissions are to be based on Cantor Fitzgerald Environmental Brokerage
Services.  The ISO will publish by 8:00 am, the gas and emission figures to
be used for the next day in any hour where an emergency is declared. These
figures (for the next day) will be based on the prior day's Gas Daily and
Cantor Fitzgerald data. A single market clearing price is determined in real
time for all generators.  Highest bid sets the clearing price.  Each
gas-fired generator must file with FERC and the ISO within 5 days, on a
confidential basis, heat and emission rates for each generating unit.  The
ISO will use these rates to calculate a marginal cost for each generator,
including maintenance and operating costs.  Generators that submit bids at or
below the market clearing price will not be subject to refund liability.
(Although the following qualification is made: &However, all public utility
rates will be subject to refund for violations of the conditions imposed on
market-based rates, discussed infra.8  Presumably this has to do with
anomalous bidding behavior.)  In the event a generator submits a bid higher
than the proxy price, the generator must, within 7 days of the end of each
month, file a report with FERC and the ISO justifying its price.  FERC
explicitly acknowledges that some units may have gas costs that exceed the
&all delivery point8 index it has adopted. FERC has 60 days to review/act.
No opportunity costs in real time.  Marketers are not held to any generator
cost standard but must be prepared to justify bid at purchased cost based on
specific purchases or portfolio with no opportunity cost.

Underscheduling Penalites -- FERC acknowledges that the there is a pending
request to revoke the current underscheduling penalty but indicates that it
is still in place.  Thus, although it may be advantageous to wait to buy
power in R/T at capped prices, doing so may make the scheduling coordinator
subject to the currently effective $100/MWh penalty.  See p. 20 of the FERC
order.

New Generation --  New generation is NOT exempted from the Commission,s price
mitigation measures.

Demand Response -- Beginning June 1, only public utility load serving
entities must submit demand side bids to curtail load and identify the load
to be curtailed under those bids.  FERC is attempting to make the demand
curve more price responsive.  (This requirement is in effect for all hours
(24/7))

Outages -- PGA generators will coordinate planned outages and report forced
outages The ISO is required to make a tariff filing within 15 days of the
order proposing a mechanism for coordination and control of outages,
including periodic reports to the Commission.

Term - Order expires one year from date of issuance.

RTO Filing - California ISO and two Utilities must make RTO filing by June 1
or Order lapses with no further effect.  The RTO filing is to be consistent
with the characteristics and functions in Order No. 2000.

ISO Reporting - On September 14, 2001, ISO must file a status report on how
things are working and how much generation has been built.  Comments are due
in 15 days.  Quarterly reports thereafter.

Revocation of Market Based Rate Authority and Refunds - The market based rate
authority of all public utilities is conditioned on (1) no physical withhold
of capacity, and (2) no inappropriate bidding behavior.  Inappropriate
bidding behavior includes bidding unrelated to known characteristics of the
generation unit or without an input cost basis or bidding not based on unit
behavior.  An increased bid based on increased demand could apparently be
inappropriate.  In addition, "hockey stick" bids are expressly prohibited
(i.e.  bidding 95% at marginal cost and 5% at a much higher level).  Other
prohibited bidding practices identified include: pricing a single unit much
higher than other units in a supplier portfolio and changes in bids due to
increased scarcity rather than changes in generator costs.

West-Wide Section 206 Investigation  ) Opens a section 206 investigation
concerning the J&R of wholesale power in the WSCC other than sales to the
CAISO market.    FERC requests comments on the scope and nature of price
mitigation.  However its proposal is that refund conditions apply only in
real time (markets for power less than 24 hours in advance of R/T) spot
markets when contingency within a control area falls below 7% within a
control area.    FERC is attempting to mirror the rules applied in
California.  Comments are due in 10 days on the 206 investigations.  Although
it is still formulating its price mitigation plan for the non-California PNW,
the FERC sets the refund effective date is 60 days from publication of the
Order.

NOx Limits in California --  Must sell requirements do not apply if a unit is
prohibited from running by law.  However, it appears that incurring fines
does not overcome the must sell requirement- just include the fines as part
of the price bid.  Also if NOx is limited, may seek to show that generation
would have been sold elsewhere or at different times for determining price.

Surcharge to pay past amount due -- Comments are due in 30 days on (1)
whether FERC should require the ISO to surcharge parties for payment into an
escrow account to pay past costs and (2) the effect this surcharge would have
on the PG&E bankruptcy filing.

Treatment of the CAISO,s Market Stabilization Plan (MSP). The FERC rejects
the CAISO,s MSP saying that FERC,s plan for market mitigation is sufficient.
It expressly rejects CAISO,s plan to create a day-ahead and hour-ahead energy
markets are expressly reject and tells CAISO to stop actions to implement
software changes to effectuate such markets.  Unfortunately, it does not
expressly reject CAISO,s plan to cut exports.  In general, no mention was
made as to issue of exports of power from California although the statement
that CAISO must become a real RTO would support the notion that CAISO must
honor firm schedules on its system..

Recap of Dates Identified in the Order
? Issue date: 4/26/01
? Heat rate emission filing from generators due: 5 days (5/1/01)
? Comments due on WSCC-wide price mitigation: 10 days (5/6/01)
? ISO Tariff filing due: 15 days (5/11/01)
? Comments on ISO Tariff due: 5 days thereafter (5/16/01)
? Comments on whether Commission should allow a premium to recover unpaid
generator bills: 5/30/01
? Effective date of proxy prices: 5/29/01
? Demand responsive bids from load serving entities: 6/1/01
? Refund effective date begins:  60 days after publishing in Federal Register
(late June?)
? First ISO quarterly report: 9/14/01
? Comments on first ISO quarterly report: 15 days thereafter (9/29/01)
? Plan terminates: 4/26/02

RA  & GAC


---------------------- Forwarded by Andrea Ring/HOU/ECT on 05/01/2001 02:39
PM ---------------------------

	From:  Karen D McIlvoy                           04/17/2001 10:20 AM

To: ragan.bond@bhlp.com
cc:  (bcc: Andrea Ring/HOU/ECT)
Subject: Fwd: Fw: Wisom

----- Original Message -----
From: Oldmoney@aol.com
Sent: Friday, April 13, 2001 9:39 PM
To: Oldmoney@aol.com
Subject: Wisom

Instead of getting married again, I'm going to find a woman I don't like
and just give her a house,"
  - Lewis Grizzard

"The problem with the designated driver program, it's not a
desirable job.  But if you ever get sucked into doing it,have fun with it.
At the end of the night, drop them off at the wrong house."
- Jeff Foxworthy

"See, the problem is that God gives men a brain and a penis,
and only enough blood to run one at a time."
Robin Williams

"If a woman has to choose between catching a fly ball and
saving an infant's life, she will choose to save the infant's life without
even considering if there is a man on base."
  - Dave Barry

"What do people mean when they say the computer went down on them?"
   -Marilyn Pittman

"Relationships are hard. It's like a full time job, and we  should treat it
like one. If your boyfriend or girlfriend wants to leave you,they should give
you two weeks' notice. There should be severance pay,  and before they leave
you, they should have to find you a temp."
- Bob Ettinger

"My Mom said she learned how to swim when someone took her out in the lake
and threw her off the boat.  I said, 'Mom, they weren't trying to teach you
how to swim."'
Paula Poundstone

"A study in the Washington Post says that women have better
verbal skills than men. I just want to say to the authors of that study:
Duh."
   - Conan O'Brien

"Why does Sea World have a seafood restaurant?? I'm halfway
through my fish burger and I realize, Oh my God.... I could be eating a slow
learner."
Lynda Montgomery

"The day I worry about cleaning my house is the day Sears comes out with a
riding vacuum cleaner."
Roseanne

"I think that's how Chicago got started. A bunch of people in New York
said,   'Gee, I'm enjoying the crime and the poverty, but it just isn't cold
enough.  Let's go west.'"
   - Richard Jeni

"If life was fair, Elvis would be alive and all the impersonators would be
dead."
  -Johnny Carson

"Sometimes I think war is God's way of teaching us geography."
- Paul Rodriguez

"My parents didn't want to move to Florida, but they turned sixty, and
that's the law."
  - Jerry Seinfeld

"In elementary school, in case of fire you have to line up quietly in a
single file line from smallest to tallest. What is the logic? Do tall people
burn slower?"
- Warren Hutcherson

"Bigamy is having one wife too many. Monogamy is the same."
  - Oscar Wilde

"Marriage is a great institution, but I'm not ready for an institution yet."
Mae West

"Suppose you were an idiot... And suppose you were a member of
Congress...But I repeat myself."
  - Mark Twain

"Our bombs are smarter than the average high school student. At least they
can find Kuwait."
- A. Whitney Brown

Aw, yes, divorce......., from the Latin word meaning to rip out a man's
genitals through his wallet,"
   - Robin Williams

"Women complain about premenstrual syndrome, but I think of it as the only
time of the month that I can be myself."
  - Roseanne

"Women need a reason to have sex. Men just need a place."
- Billy Crystal

"You can say any foolish thing to a dog, and the dog will give you a look
that says, 'My God, you're right! I never would've thought of that!'"
   -Dave Barry

"We have women in the military, but they don't put us in the front lines.
They don't know if we can fight or if we can kill. I think we can. All the
general has to do is walk over to the women and say, 'You see the enemy over
there?  They say you look fat in those uniforms.'"
  -Elayne Boosler

"If you can't beat them, arrange to have them beaten."
  - George Carlin

When I die, I want to die like my grandfather who died peacefully in his
sleep. Not screaming like all the passengers in his car.

Jerry Ann

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


nope.  what's the occasion?


Eric, is this still a problem or did you get what you needed?
m

Eric Gonzales
12/04/2000 06:45 AM
To: Eric Groves/HOU/ECT@ECT
cc:  (bcc: Mike McConnell/HOU/ECT)
Subject: Re: Jose LNG - Crude Pricing

Our ability in crude is apparently very poor.  What can J Wilson do thru
2010?  I want the crude desk to make us a price and present an acceptable
volume.

If we have to suggest to PDVSA only doing a crude index through 2012, I
strongly believe we should try if we can create some additional value thru
this structure.  Tell me if you would like me to give him a call to explain
what the effort potentially create.

Thanks
Eric

	Enron Capital & Trade Resources Corp.

	From:  Eric Groves                           30/11/2000 17:04

To: Guido Caranti/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Emilio
Vicens/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Eric Gonzales/LON/ECT@ECT
cc:

Subject: Re: Jose LNG - Crude Pricing

 Per a conversation I had with John Wilson the head crude oil trader in the
Houston office, the feasability of hedging price risk linked to WTI or Brent
on a 20 year deal is NOT a possibility.  If we had 1/3 of our GSA price
linked to Brent our exposure for 20 years would be about 30 million barrels
notional or about 14 million barrels PV.  At 5% our exposure would still be 5
million notional or 2.3 million PV.  According to John, he would not be
comfortable doing anything past 2012 and even out that far he would not
consider doing more than about 1 million PV barrels in the years 2010 -
2012.  Given these comments, I would say that the size of our deal basically
precludes a look at Crude Oil hedges at this time.  As far as the economics
of the deal are concerned, we basically cannot even get an Offer to use to
figure out our economics.  I am confident that if we pushed the issue to see
if we could get a 20 year offer even for a small portion of the volumes that
the hedging costs would be too high, and therefore have left it at that for
the time being.   Please advise if you have any thoughts on the issue.

Thanks,

Eric

Guido Caranti@ENRON_DEVELOPMENT
11/29/2000 09:27 AM
To: Eric Gonzales/LON/ECT@ECT
cc: Emilio Vicens/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt@ECT, Larry
Lawyer/NA/Enron@Enron@ECT, Cris Sherman/HOU/ECT@ECT, Brent A
Price/HOU/ECT@ECT, Eric Groves/HOU/ECT@ECT, Daniel R
Rogers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: Jose LNG - Off-take Comments

Eric, thanks for your comments. Please see below in blue our observations and
answers. Let's talk later today if you have further questions.

Saludos

Guido and Emilio

Enron Offtake Agreement

Section 2
Should this agreement start at commercial hand over of the plant under the
EPC agreement.  Benefit here is LDs under the EPC for late delivery go to
project company and project company has no obligation to lng buyers.  In
addition it preserves your 20 year offtake which should still match your GSA.

 The agreement should start at commercial hand over of the plant as you say.
The draft as it is now has only outer limits as to when that should happen
(that being the earlier of 40 months after Financial  Close or NTP or Dec 31
2004). We will add to this list "the earlier of" something like: "the date on
which the plant has produced LNG at at least 90% of its capacity for a period
of 10 consecutive days". We suggest putting something like this as opposed to
"commercial hand over" because this is in the plant's/contractor's control
and they could, for example, on purpose not meet a noise level requirement
for 4 months  for example and delay commencement of the offtake contract
while the project sells LNG at higher prices than in the term sheets.

With regards to the EPC LDs we agree that they should go only to the project
but we, as offtakers, can not wait for ever for the project to be completed
with out receiving gas or damages for something that is somehow (directly or
indirectly) under the project's control. We have 4 months limits to how much
the project can be delayed on top of all the conservatism that EECC (or
another EPC Contractor) already built in.

Section 6
I would like to see some language in this section describing the pricing
formula associated with expansions.  Structure could be set as in this
contract where Pg is to reflect GSA costs and where the combined value of
Pcpi and Pa should be derived to provide an equity return to the sponsors of
18%.

 We agree that would be better, but we included this section knowing that is
something that is going to be a very difficult sell with PDVSA, because they
don't want us to sell down and then keep "controlling" new  LNG businesses in
Jose. They will oppose this clause as they violently opposed the limited
exclusivity at Jose that we managed to include in the GSA. We think that
adding a restriction to the asset's returns now in the draft will make it
very tough to sell to PDVSA the entire Clause. Thus, jeopardizing our chance
to control the output of future plants or expansions. We never intended to
use these off-take agreements as a vehicle to control future LNG volumes.
Nevertheless, we felt it was a good chance for us to start getting partial
control of the output. Pushing it too much will back fire and PDVSA will
clearly realize what our intent is.

Section 7
Where is the bonus calculation?  We did not include it now on purpose. We
will include it when ever they "remind" us to do so. We want to have another
fight about the bonus.
Where is the min price? The minimum price is in. We say that one of the
terms in the price is Pg x En where En is never less than one
I thought you guys were going to trade out CPI for a fixed number? We are
going to try to do it, but that is first a GSA issue, and we don't want to
put it here as something firm before we change it in the GSA. We precisely
bracketed the CPI percentage in the formula because of our thought that we
want to make it zero
Have you decided that a WTI index percentage does not help the economics? No,
we don't have the definitive answer from structuring yet, but our guess and
based on our meeting with RAC the other day, in which they told us about the
mess created by an oil escalation in Cuiba (Brazil power plant), we are
pretty much convinced that oil escalation without oil based LNG sales is not
convenient. But since we don't have a definitive answer yet we still included
oil as a possible escalator with a zero weighting (that should have been
bracketed in the term-sheet, though, and it will).

Section 10
you have incorporated the GSA default rate for late payment as opposed to the
Equilibrium rate.  Is this your intent to have a mismatch?
 Yes, we did it on purpose because this will apply also to PDVSA as
off-taker, and they have a record of paying late so we want them to suffer if
they do.

you have all new taxes being borne by the project company.  Will the banks
accept this as the project company will be thinly capitalized.  See section
18 of the Arcos CTA for ideas if this is an issue.
 The exporter of record will be the project, so the buyer has no business in
Venezuela other than paying port fees. We do not see any kind of taxes that
could be imposed on Buyer by Venezuela that would eventually be transferred
to the project. Banks should be fine with this as this is a risk that
projects typically take all the time (the heavy crude projects are some
examples in Venezuela). In addition, the GSA provides for a number of reliefs
for the Project Company that will help Banks and equity holders to feel
safer. Although, a large portion of the underlying risk is always there.

Other
where are the LD calculations explained?  I think you need LDs for GSA
default and another for plant default.  GSA default should match LD's in GSA
contract less compensation to plant debt recovery.
 In stead of writing an explicit LD calculation our lawyers suggested that
the sole use of New York law to rule the deal was simpler and better. New
York law provides for full market based damages (market price of commodity
plus extra costs) which is the maximum you can get in a negotiation for an LD
clause. So, from a legal and commercial point of view we much rather have it
as it is. We are still discussing w/ Brent Price and Cris Sherman if this is
sellable to AA for MTM, but our initial view is that it should be since the
level of LD can not be better. GSA default is market based (provided that
PDVSA, as we expect, accepts the change we will propose) so the Project
Company will be able to pay market based damages. For interruption of gas
supply from PDV for Force Majeure reasons our insurance team is finding out
if the market will cover such risk so that the project can afford not being
relieved from performance in such event (this will obviously be to a maximum
dollar limit to be determined and for a maximum period of time, say 36 months
- we need time to give you precision on this, but some sort of coverage will
be available).

suppose the plant produces 5% less that it is supposed to due to design or
tech problems (not a FM issue) at commercial hand over.  What happens under
the offtake agreements?  Will the banks accept this revenue short fall?  Will
we have to create a reserve?  This may be a big issue with the banks for
technology reasons and lack of experience in this industry.
  Under the off-take agreements the project pays market based damages if it
does not meet the contracted volume. We believe that the contracted volume
that we included in the term sheets though has enough of a cushion for banks
and equity holders to bear the risk. We are contracting for contractually
guaranteed production under the EPC which is 3% lower than expected. On top
of that we are considering LNG production with the richest inlet gas possible
(meaning a lower LNG volume). This volume is 5% lower than the guaranteed
production with "Normal" or expected feed composition. Combining these two we
have a contracted quantity that is 8% lower than the expected production with
expected feed. On top of this it is important to note that every single LNG
plant in the world ended up with a production capacity that is at least 10%
above what was expected (mostly due to EPC Contractors and tech partners
making very safe assumptions on guaranteed volumes to avoid LDs). Also the
EPC contract being negotiated provides for pretty severe LD in case of
production shortfalls that are enough to pay for debt and make equity-holders
whole. They don't provide though, for damages payable under off-take
contracts (nobody will take this potentially huge exposure on LDs). However,
as we explained, we believe that this is a risk that is typically taken by
producers and that we have already taken a very conservative assumption in
the volume contracted and that should be beard by the Project Co. Banks will
most definitely also take a conservative volume assumption, as we already
did.

What happens if plant starts producing less for a few weeks until problem is
resolved? what compensation do the offtakers get? do the banks suffer here as
well?
 The term sheet establishes an annual quantity as the only standard to
determine failure to deliver by Seller. It also establishes that deliveries
should be at rates and intervals that are reasonably constant. The bottom
line is that the termsheets do not go into all the detail about timing of
defaults and price differentials. It sets, however, a reasonable standard by
which if at the end of the year seller did not deliver the full annual
quantity and a particular month can be identified where the deficiency occur
based on the "reasonable constant deliveries" provision, damages will be
payable based on prices during such month. Yes banks suffer here to the
extent that the cause of the short fall is not insurable.  Nevertheless,
short periods (weeks) of failures to deliver by seller will really not affect
the Project Company ability to pay the Banks.  It will have to be some
prolonged period for Banks to be affected.

Under a plant FM issue you may not get BI cover for the first 60 days.  Will
the banks accept this or will they want a reserve established.  Is this in
your model?
 We are not sure off what the banks are going to require in this regard
(although, we agree that some sort of reserve or LC is to be expected). Our
model assumes the cost of an LC for 6 month debt service (which should be
plenty). The issue here is if MTM is going to be able to live with the same
or longer grace period for damages to kick in under the termsheet and weather
damages (not BI) are insurable and to what extent if FM relief is not
permitted for MTM reasons. The question that follows is: if damages exceed
the insured limits in a FM event that does not relief the project from its
obligation to deliver, have the damages have to be senior to debt payments
for AA to allow MTM to be permitted? If this is so, are the banks going to be
willing to live with this?, probably not.

insert something on planned maintenance timing and scheduling.
 It is briefly covered in section 9 second paragraph. This will be expended
in later drafts once the PA is signed and we are home free with regard to
PDVSA.

insert termination section
 In light of the fact that we will end up being more of an off-taker than an
asset owner in this project our lawyers suggest that we will get better
protection if early termination is ruled by what is provided under NY law
than if we try to right an early termination clause. They point out also that
90% of LNG contracts are done in this way, having NY law rule the game. They
point out also that from the project point of view banks are very used to and
prefer having early termination be ruled by NY law.

put something in about the buyer willing to accept entering direct agreements
for financing requirements?
 We will

Eric Gonzales@ECT
11/28/2000 03:40 AM
To: Guido Caranti/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Emilio
Vicens/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt
cc: Larry Lawyer/NA/Enron@Enron, Cris Sherman/HOU/ECT@ECT, Brent A
Price/HOU/ECT@ECT, Eric Groves/HOU/ECT@ECT, Daniel R
Rogers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: Jose LNG - Off-take Comments

Enron Offtake Agreement

Section 2
Should this agreement start at commercial hand over of the plant under the
EPC agreement.  Benefit here is LDs under the EPC for late delivery go to
project company and project company has no obligation to lng buyers.  In
addition it preserves your 20 year offtake which should still match your GSA.

Section 6
I would like to see some language in this section describing the pricing
formula associated with expansions.  Structure could be set as in this
contract where Pg is to reflect GSA costs and where the combined value of
Pcpi and Pa should be derived to provide an equity return to the sponsors of
18%.

Section 7
Where is the bonus calculation?
Where is the min price?
I thought you guys were going to trade out CPI for a fixed number?
Have you decided that a WTI index percentage does not help the economics?

Section 10
you have incorporated the GSA default rate for late payment as opposed to the
Equilibrium rate.  Is this your intent to have a mismatch?
you have all new taxes being borne by the project company.  Will the banks
accept this as the project company will be thinly capitalised.  See section
18 of the Arcos CTA for ideas if this is an issue.

Other
where are the LD calculations explained?  I think you need LDs for GSA
default and another for plant default.  GSA default should match LD's in GSA
contract less compensation to plant debt recovery.
suppose the plant produces 5% less that it is supposed to due to design or
tech problems (not a FM issue) at commercial hand over.  What happens under
the offtake agreements?  Will the banks accept this revenue short fall?  Will
we have to create a reserve?  This may be a big issue with the banks for
technology reasons and lack of experience in this industry.
What happens if plant starts producing less for a few weeks until problem is
resolved? what compensation do the offtakers get? do the banks suffer here as
well?
Under a plant FM issue you may not get BI cover for the first 60 days.  Will
the banks accept this or will they want a reserve established.  Is this in
your model?
insert something on planned maintenance timing and scheduling.
insert termination section
put something in about the buyer willing to accept entering direct agreements
for financing requirements?

Marketing Agreement
Lets talks about his one

Guido Caranti@ENRON_DEVELOPMENT
22/11/2000 23:34
To: Cris Sherman@ECT, Larry Lawyer@Enron, Brent A Price@ECT, Eric Groves@ECT,
Eric Gonzales@ECT
cc: Les Webber/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Nancy
Corbet/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Emilio
Vicens/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Jose LNG - Off-take

I am enclosing a draft of the off-take termsheets to be included in the
Participation Agreement between Enron and PDVSA Gas. These termsheets will
rule the following transactions:

  a) Sale of LNG from the Project to an affiliate of  Enron for the plant's
output minus PDVSA's off-take

  b) Sale of LNG from the project to and affiliate of PDVSA Gas for the share
of volumes equivalent their equity participation in the Project Co

  c) Re-sale of LNG from the affiliate of PDVSA Gas to the Enron affiliate
for the volumes purchased by PDVSA according to b) above

Please let Emilio and I know your comments about them at your earliest
convenience. Please focus on issues with regard to our ability to MTM these
contracts, such as the force majeure clause. If you have any comments or
questions during the weekend you can reach me at 713 304-4264 or Emilio at
011 5814 330-9016. Otherwise we would like to discuss this with you on Monday.

Thanks for your input and happy Thanks-giving

Guido


Yes, I would be definitely interested. Count me and Osman also to
participate. I will forward your email to others in EES who might be
interested also.
Krishna.

Vince J Kaminski
03/19/2001 08:12 AM
To: John Henderson/HOU/EES@EES, Pinnamaneni Krishnarao/HOU/ECT@ECT
cc: Vince J Kaminski/HOU/ECT@ECT, Shirley Crenshaw/HOU/ECT@ECT
Subject: RTP project

John and Krishna,

I am sending you an outline of a conference at Stanford on topics related to
demand-side pricing and management in the power markets.

Please, let me know if you are personally interested and who else
in your respective  organizations would like to attend.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/19/2001
08:10 AM ---------------------------

Hill Huntington <hillh@stanford.edu> on 03/15/2001 05:26:55 PM
To: vkamins@enron.com
cc:
Subject: RTP project

Vince,

Targetted conference date is Th-F June 21-22 at Stanford.  Enclosed in the
recent revision to what I sent before.

Great to meet you,
Hill

 - retail notes.rtf
*******************************************************************
Hillard G. Huntington
EMF - an international forum on
energy and environmental markets Voice:  (650) 723-1050
408 Terman Center    Fax:    (650) 725-5362
Stanford University   Email:  hillh@stanford.edu
Stanford, CA  94305-4026

EMF Website: http://www.stanford.edu/group/EMF/


New feature added to Research page for severe weather....

 -----Original Message-----
From: 	Bennett, Steve
Sent:	Thursday, October 11, 2001 9:24 AM
To:	Roberts, Mike A.
Subject:	houston severe weather information

Can now be found on the research web page:

http://fundamentals.corp.enron.com/commodityWebs/ENA/Research/Weather/portal/mainWeather.asp

Click Under:

"SPECIAL WEATHER ALERT"

steve


I expect to be receiving invoices for legal fees associated with Enron Net
Works (specifically paper.com, but there will probably be some for other Net
Works matters as well, such as EnronOnline).  Have work order numbers already
been established for these?  Who is handling the processing of Net Works
invoices?


Many of you have friends who are no longer with the company, so we wanted to provide you an overview of continuing efforts to assist Enron's former employees.

CAREER SERVICES
Last December Enron established a website to assist former employees identify jobs in Houston and throughout the United States.  Only former Enron employees and potential employers can access the site, http://careerservices.enron.com/

On this site, former employees can:
	? Post their resumes for approved employers to view
	? View job postings
	? Receive updates and information on career and community services available to them
As of January 25, 2002:
	? More than 1,300 companies had been approved to view resumes
	? Company recruiters had logged on more than 3,500 times to search for candidates
	? More than 600 jobs had been posted on the site

FINANCIAL ASSISTANCE
The Greater Houston Community Foundation
The Greater Houston Community Foundation (GHCF), in collaboration with the United Way of the Texas Gulf Coast, the Houston Area Urban League, Crisis Intervention of Houston, and Career and Recovery Resources, have established a fund to provide dedicated support for former Enron employees.  GHCF offers former employees counseling services and helps them work with mortgage companies, landlords and utilities to defer monthly bills while they are out of work.   If you are interested in making a tax-deductible donation to the GHCF, please call 713-268-6458 or mail donations to GHCF at 4550 Post Oak Place, Suite 317, Houston, TX  77027.  Checks should be made payable to Greater Houston Community Foundation and designated for the Enron Employee Transition Fund.  To receive assistance, former employees can call 713-533-4598, or outside Houston, 1-800-493-4598.  Lines are open 24 hours a day, seven days a week.

Enron Ex-Employee Relief Fund Account
A former employee has established the Enron Ex-Employee Relief Fund Account at the Humble Community Bank.  Visit the website at <http://www.eerfa.com> for more information or to make a donation.  Former employees can submit grant requests to eerfarequest@surfmk.com.

MDPC Transitional Assistance Program
Memorial Drive Presbyterian Church has created a Transitional Assistance Program open to both members and non-members who need assistance re-entering the workforce.  Right Management Consultants offers a series of two-day workshops for former employees on topics such as Career Assessment and Evaluation, Job Search Communication and Managing in a Time of Change.  Requests for limited and discretionary short-term financial assistance will be accepted from those who have participated in this program.  MDPC will offer a holistic approach to re-entering the workforce including family counseling and stress management. For more information, contact Memorial Drive Presbyterian Church at 713-953-2550, ext 180.


Attached is the market wrap up for this week. If you have any questions you can contact me.

Monika Causholli
Enron Industrial Markets
(713)345-1510


----- Forwarded by Sheila Tweed/HOU/ECT on 04/02/2001 12:10 PM -----

	danetta.beaushaw@ps.ge.com
	03/28/2001 10:30 PM

		 To: stweed@enron.com
		 cc:
		 Subject: FW: Black Hills - GE Consent

Here's  the document sent to Milbank a few minutes ago.
?
I  looked you up in Martindale to get your email address -- all my friends at
Enron  have so many different email addresses these days that I don't hazard
a  guess!? Saw that you are also an ex-Sonat attorney -- I thought your name
was familiar!
?
Hope  this helps.? We had to push back a bit on pre-approval of future
assignments, but hopefully it's a workable compromise.? Thanks for your
efforts -- they registered big/helped.
?
?
Let us  know if we can do anything further to get this closed for you.? I'll
be in  the office in Houston the rest of the week.

g??? ????? GE Power Systems

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________

Danetta L.  Beaushaw
Counsel

GE Aero Energy Products
GE Aeroderivative and Package  Services
2707 North Loop  West
Houston, Texas  77008

Phone:?  (713)  803-0946?  Dial*Comm:?  8*354--0946
Fax:????? (713) 803-0368
Email:? Danetta.Beaushaw@ps.ge.com
Webpage: www.gepower.com/aeroenergy

***********IMPORTANT  NOTICE***************
The information contained in this document and any documents attached  hereto
may be a confidential attorney-client communication or may otherwise be
privileged or confidential.? It is the property of General Electric  Company
and shall not be used, disclosed to others, or reproduced without the
express written consent of General Electric Company.? If you are not the
intended recipient, you are hereby notified that you have received this
transmittal in error; any review, dissemination, distribution or copying of
this transmittal is strictly prohibited.? If you have received this
transmittal and/or attachments in error, please notify us immediately by
reply  and immediately delete this message and all its attachments.? Thank
you.

-----Original Message-----
From: Beaushaw, Danetta (PS, GE AEP)
Sent: Wednesday, March 28, 2001 10:19 PM
To:  'LOliveira@milbank.com'
Cc: Johnson, Lee L (PS, GE  AEP)
Subject: RE: Black Hills - GE Consent

Thanks, Laura -- this document was much easier to fast track. Here are  our
edits -- the one area where we have to retain some control is future
assignments.? It's GE's policy to look at assignments on a case by case
basis, but the language provided should allow you some leniency in getting
quick  approval for permitted assignments.
?
?
Lee  and Laura, I don't have the email addresses for Sheila and her team at
Enron --  could one of you please forward this document to them?? Laura, let
Lee and  I know if we can do anything else to help you close your  deal.
?
?

g??? ????? GE Power Systems

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________

Danetta L.  Beaushaw
Counsel

GE Aero Energy Products
GE Aeroderivative and Package  Services
2707 North Loop  West
Houston, Texas  77008

Phone:?  (713)  803-0946?  Dial*Comm:?  8*354--0946
Fax:????? (713) 803-0368
Email:? Danetta.Beaushaw@ps.ge.com
Webpage: www.gepower.com/aeroenergy

***********IMPORTANT  NOTICE***************
The information contained in this document and any documents attached  hereto
may be a confidential attorney-client communication or may otherwise be
privileged or confidential.? It is the property of General Electric  Company
and shall not be used, disclosed to others, or reproduced without the
express written consent of General Electric Company.? If you are not the
intended recipient, you are hereby notified that you have received this
transmittal in error; any review, dissemination, distribution or copying of
this transmittal is strictly prohibited.? If you have received this
transmittal and/or attachments in error, please notify us immediately by
reply  and immediately delete this message and all its attachments.? Thank
you.

-----Original Message-----
From: LOliveira@milbank.com  [mailto:LOliveira@milbank.com]
Sent: Wednesday, March 28, 2001 5:27  PM
To: Beaushaw, Danetta (PS, GE AEP)
Cc: tmoore@llgm.com;  KWong@milbank.com
Subject: Black Hills - GE  Consent
Importance: High

Dear Danetta,

Please find attached hereto a revised version of  the GE Consent that has
been streamlined in accordance with your  comments.

Regards,

_________________________________
Laura Oliveira
Milbank, Tweed, Hadley & McCloy LLP
Los Angeles
Tel. 213-892.4464
Fax 213-892.4764

<<Black Hills - GE  Consent.DOC>>

This e-mail message may contain legally  privileged and/or confidential
information. If you are not the intended recipient(s), or the employee
or agent responsible for delivery of  this message to the intended
recipient(s), you are hereby notified that any dissemination,
distribution or copying of this  e-mail message is strictly prohibited.
If you have received this message in error, please immediately notify
the sender and delete this e-mail  message from your computer.

 - Black Hills - GE Consent2.DOC


---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on
03/10/99 09:32 AM ---------------------------

Nony Flores
03/09/99 06:03 PM
To: Mark - ECT Legal Taylor/HOU/ECT@ECT
cc:
Subject: Follow up: C. Fishkin's Proposal and my Comments of 2/19/99

Mark:

 Just a brief note to follow up with additional information regarding the
Global Information Site mentioned by Mr. Fishkin, and my comments to that
section.   As I mentioned in my memo, Sheri Cromwell has been gathering data
and working with the Internet group to come up with the initial draft for the
ECT Legal website.    Sheri completed the first draft last Friday and asked
me who will need to be involved in the review and approval of this
information.  I mentioned to Sheri that you and Tana were working on a
special project and that one of the goals was to create a Global Information
Site or something similar, and that I had mentioned to you as well that she
was gathering some data for that particular purpose.

 I'm not sure what your plans are regarding the Intranet Site, but since
Sheri has already done this work I thought I would let you know in case you
and Tana are interested in talking to Sheri and reviewing her work.  Sheri
has a lot of good ideas and she seems to enjoy project development
responsibilities, not to mention that she's had the opportunity to establish
good relationships with the Internet team.

Thanks.
Nony


Start Date: 2/1/02; HourAhead hour: 12;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002020112.txt


All,

Attached please find  my memo updating you on recent developments in NYISO's SPWG.

Scott

 - NY Update 2001-11-16.pdf
 - Scott Englander (E-mail).vcf


----- Forwarded by Richard B Sanders/HOU/ECT on 12/01/2000 07:51 AM -----

	"Meringolo, Peter" <PMeringolo@brobeck.com>
	11/16/2000 01:58 PM

		 To: "'Richard.B.Sanders@enron.com'" <Richard.B.Sanders@enron.com>
		 cc: "'msmith1@enron.com'" <msmith1@enron.com>, "'David_Aamodt@pgn.com'"
<David_Aamodt@pgn.com>, "'Mary.Hain@enron.com'" <Mary.Hain@enron.com>,
"'jkeller@enron.com'" <jkeller@enron.com>, "'mday@gmssr.com'"
<mday@gmssr.com>, "Fergus, Gary S." <GFergus@brobeck.com>
		 Subject: Draft Response to CPUC subpoena on behalf of EPMI

Richard,

Attached for your review is a draft of EPMI's objections and responses to
the CPUC subpoena.  Please let me know if you have any questions or
comments.

 <<38#5_02!.DOC>>
Peter P. Meringolo
Brobeck, Phleger & Harrison LLP
Spear Tower
One Market
San Francisco, CA 94105
Main:  (415) 442-0900
Direct:  (415) 442-1285
Fax:  (415) 442-1010

=======================================================
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To reply to our email administrator directly, send an email to
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http://www.brobeck.com

 - 38#5_02!.DOC


Linda --

Please arrange a phone call with Christi & Sarah Novosel to discuss market power for this upcoming Friday.

Jim


This is a notice to inform you that your mailbox will be moved to a different Exchange 2000 server.

Your mailbox will be temporarily unavailable starting anytime after 5pm and may continue to be unavailable until 9 pm tonight, when all mailbox moves have been completed.  Outlook Web Access (OWA) will also be unavailable during this time.

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-----Original Message-----
From: 	owner-nyiso_tech_exchange@lists.thebiz.net@ENRON [mailto:IMCEANOTES-owner-nyiso+5Ftech+5Fexchange+40lists+2Ethebiz+2Enet+40ENRON@ENRON.com]  On Behalf Of market_relations@nyiso.com
Sent:	Monday, August 27, 2001 11:46 AM
To:	market_relations@nyiso.com
Subject:	Virtual Bidding Registration

market_relations@nyiso.com writes to the NYISO_TECH_EXCHANGE Discussion List:

Dear Market Participants,

The materials necessary for Market Participants to register for virtual
bidding in the NYISO energy markets will be available on the NYISO website
on Tuesday, August 28.  We will send a message to the TIE List when the
updated registration package has been posted.

If you have any questions, please call your Customer Account Representative
or the Help Desk at 518-356-6060.

Regards,

Customer Relations
518-356-6060


fyi.  mhc

---------------------- Forwarded by Michelle Cash/HOU/ECT on 09/25/2000 09:16
PM ---------------------------

Leah Smith <lsmith@bracepatt.com> on 09/25/2000 12:34:00 PM
To: @firstdatacorp.com, spice@adamsextract.com, ccfgwilson@msn.com,
acatty@trip.net, antonell@trip.net, juliea@bhpeng.com, jane_bakos@iwhs.org,
batco@ici.net, mcbarrera@aep.com, mario.barrera@twc.state.tx.us,
info@cypress.com, lgbazar@bishopfacility.com, Stevenblake@gecapital.com,
cvbjr51@aol.com, info@dazel.com, bbordelon!@houston.rr.com,
cherylyn@msicc.com, robert_brace@iwhs.org, gillianb@us.ibm.com,
MBear96@aol.com, martha-brodie@milgo.com, info@eds.com, jwbryant@eprod.com,
cbuhr@wnco.com, sales@thermon.com, gburkhart@erac.com, burwell@valero.com,
eileenb@sotxlighthouse.org, irma.caballero@elementis.com,
tcampbell@goliadisd.org, bcarmichael@wnco.com, hcarriger@navyarmyfcu.com,
kacartwright.clearlake@celanese.com, michelle.cash@enron.com,
paul_catucci@iwhs.org, sales@tekram.com, rscott@nu-century.com,
kchu@energycommerce.com, gcisneros@omnihotels.com,
bcole@houston.oilfield.slb.com, snellingcc@interconnect.net,
gacolwell@aep.com, jcook@westernsteelco.com, kcooper444@aol.com,
coppt@scripps.com, cortinas@falcon.tamucc.edu, cortinl@driscollchildrens.org,
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hrweb@falcon.tamucc.edu, calsher@tisd.net, rdaly@vopak.com,
dldavenport@transportation.corpus-christi.k1, lmdavid@ticona.com,
johnd@jmdavidson.com, business@statesman.com, krdavis@bishopfacility.com,
melissa.davis@elementis.com, lday@cogc.com, mark.degutis@bfi.com,
ldeonari@iesllc.com, cdietz@navyarmyfcu.com,
Isabel.Dominguez@KlebergBank.com, Isabel.Dominguez@KlebergBank.com,
DVandendorpel@apacmail.com, mdurand@mail.cpcs.hhscn.org, austex@austex.com,
j_eckroth@msn.com, elizondo@lmtonline.com, elliotl@driscollchildrens.org,
bom@ccos-tx.com, aenyart@hydro-aire.com, daniel.epp@rhii.com,
monica@pocca.com, sjctreas@lcc.net, dafabela@aep.com,
bfiedler@netversant.com, rfleming@ielectric.com, cfox@wnco.com,
TEXANA@aol.com, kyblossom@aol.com, Sarah.Galvarro@HCAHealthcare.com,
mgarbut@rtfc.org, juan.garcia@mail.txed.net, missy@ciris.net,
jgassiott@palacios.k12.tx.us, girling@services.com,
patriciag@ci.corpus-christi.tx.us, tgonzalez@diocesecc.org, kga@trip.net,
jgosell@nueces.esc2.net, bill@lmtonline.com, grimesb@valero.com,
roy_spence@gsdm.com, sylvia_guzman@iwhs.org, judy@thoughtinteractive.com,
jhall@cueroisd.org, Ed_Halvorsen@omassociates.com,
irv_hamilton@mail.fhmis.net, rborden@evtech.com, chanson@falcon.tamucc.edu,
dpi_mkting@rrvl.dnet.dupont.com, andy_harris@iwhs.org, info@hartgr.com,
cwharvey@aep.com, shatton@esconett.org, fran@ciris.net, lori_hayes@iwhs.org,
psg@trip.net, hlhebert@esc5.net, glh2000@aol.com, Lucyh@basiccrp.com,
info@eagletcs.com, info@origin.ea.com, hendrix@xanadu2.net,
crpap@cwixmail.com, gilbert@esconett.org, hibbetts@egccorp.com,
hhodge@mariner-energy.com, khohle@naismith-engineering.com, merfishg@aol.com,
yyjanssen@admin.corpus-christi.k12.tx.us, candace_jefferson@iwhs.org,
jennings-co@worldnet.att.com, adrainj@acisd.esc2.net, wltcc@swbell.net,
dougJohn72@cs.com, linda@lkjordan.com, robert.n.davis@comsat.com,
kingda@intcomm.net, jking@resourcepartner.com, KNIGHT.CHERYL@heb.com,
lori_knowlton@interiant.com, kim.koch@onetacc.com,
wdk@businesscontingency.com, wandak@cuerohosp.org, ckoonce@shellus.com,
tkurz@notrecap.com, klaine1@erac.com, sglerma@admin.corpus-christi.k12.tx.us,
business@statesman.com, saral@americanbank.com,
larsenw@driscollchildrens.org, rborden@evtech.com, pr@samsung.com,
info@trilogy.com, clindsey@salvagesale.com, mlitow@erac.com,
gary_little@iwhs.org, lloeb@landlord-resources.com,
loessid@driscollchildrens.org, lofland@crr.citgo.com, lmlopez@aep.com,
lexdhl@aol.com, Laura.lucas@coastalcorp.com, Luechtj@aol.com,
pmacon@delmar.edu, nqsinc@aol.com, donna.manley@twc.state.tx.us,
lcmarkos@aep.com, marketing@carbomedics.com, calhoun@tisd.net,
seu.admit@stedwards.edu, bamartin@sherwin.rmc.com, masterson@kochind.com,
jeanne.mathews@law.ge.com, donnam@msicc.com, amcconne@academy.com,
davemc@durationsoftware.com, humanr@fescoinc.com,
joanmckaughan@elementis.com, pr@corpl.tracor.com, dsmendez@swbell.net,
merfishg@aol.com, imeru@omnihotels.com, staffing@eurosoftinc.com,
bmilfelt@edwardsfirm.com, milletk@scripps.com, smillsap@diocesecc.org,
webmaster@susetdirect.com, moncadaj@valero.com, pmmonier@aol.com,
christinemontez@swiff-train.com, webmaster@sabredata.com, lmoore@dbstech.com,
eliz@torminerals.com, dave@amfund.com, maurine_mungia@iwhs.org,
wmunyon@gmrc.com, eneal@academy.com, johnn@apple.com, info@faulknerusa.com,
gladys.nemec@na.manpower.com, snicola@zidellvalve.com,
katherine.nogues@demandex.com, dcnunez@aep.com, sobrien@navyarmyfcu.com,
info@hartgr.com, jeotto@swbell.net, gowen@lathropgage.com,
rpae@buildersgypsum.com, sales@tradeonemktg.com, cparmer@netversant.com,
vpate@citgo.com, patton@kochind.com, bpels@cogc.com, sales@humancode.com,
sipeterson@admin.corpus-christi.k12.tx.us, csullivan@wbhp.com,
lauralucas@coastalcorp.com, sstewart@falcon.tamucc.edu, cpolasek@csw.com,
nprice@riverwaybank.com, drabishaw@shellus.com, Robert@mtphs.com,
rrandle@yps.com, kathy_rapp@interliant.com, jmarchand@dynamsys.com,
rendon.luis@heb.com, ctaylor@cp.varco.com, gregrichards@fedex.com,
Ritley.Arlene@magicpicturescompany.com, NERodaniche@cps-satx.com,
crodrig@citgo.com, GRodriguez@diocesecc.org, RRodriguez@susser.com,
onemedcorp@aol.com, tross@edwardsfirm.com, rousseau.pat@gpmeng.com,
karen.roznovsky@trhta.net, annr@msicc.com, gsanchez@mail.appleone.com,
lhenna@henna.com, sassitm@kellyservices.com, satchkk@texaco.com,
Belinda.T.Saulsberry@usa.conoco.com, manettes@americanbank.com,
david.schwab@airliquide.com, info@ixc-comm.net, msepeda@delrio.com,
cchasharse@aol.com, dshaper@networkoil.com, charles.shewmake@bnsf.com,
diana_schultz@smtpgate.nsi.navy.mil, simonetti.john@tatravelcenters.com,
msmile2@jbm.net, jsmith@kristv.com, leslie@hitox.com,
rockwell-smith@interliant.com, austin@dcicorp.com, nsoliz@celanese.com,
charles@mail.cpcs.hhscn.org, tstagner@cimms.com, jim.steele@enform.com,
larry.stroik@bnsf.com, luann_suckley@iwhs.org, sweero@adventrm.com,
aaxtman@ixc-comm.net, ttaft@wbhq.com, cctanner@apacteleservices.inc,
sandra@pocca.com, colby.thames@enform.com, mthompson@communityeducation.com,
corpcomm@aep.com, elisa.trevino@firstdatacorp.com, vatrevino@aep.com,
info@natinst.com, tydelski@lawhbs.com, info@netsolve.net,
underwood@scripps.com, bob.unfried@smi-birmingham.com,
igvalverde@celanese.com, fslavic@amp.com, avoogd@technip.com,
jvoudouris@jandjmaintenance.com, simonw@pdq.net, kzippe@acad.stedwards.edu,
perserv@our-town.com, ivill@tisd.net, aaxtman@ixc-comm.net,
cynthia.magallanez@austin.ppdi.com, marc@fisd.org,
meg@austinsoftwarecouncil.org, information@decisionone.com,
moinfo@ambion.com, lwinters@ch13boudloche.com, joe.wood@airgas.com,
cjwright@aep.com, jimy@dprinc.com, syelenosky@advocacyinc.org,
roberto.zamora@esconett.org, jmzannon@sherwin.rmc.com, epz@sonnenschein.com
cc:
Subject: 2000 EEO-1 Surveys Deadline Extended September 25, 2000 (From: Kelly
Killian Satel)

2000 EEO-1 Surveys Deadline Extended
September 25, 2000

The Joint Reporting Commission  of the U.S. Equal Employment Opportunity
Commission (EEOC) has extended the deadline for employers to file their
2000 EEO-1 Surveys from September 30, 2000 to October 30, 2000. Private
employers with 100 or more employees and federal contractors with 50 or
more employees and contracts of $50,000 or more, are required to file
an EEO-1 report.
The EEOC has recently completed its mail-out of EEO-1 forms, so keep checking
your mail - it should be on its way!  If October 15th rolls around and
you have not yet received your survey, you may call the Joint Reporting
Committee at (757) 461-1213, or log on to www.mimdms.com, to request a
copy.

If you would like more information on this issue, please contact Kelly
Killian Satel at (210) 299-3590 or 1-800-597-1166.


Content-Transfer-Encoding: quoted-printable
Date: Thu, 22 Mar 2001 09:38:53 -0600
From: "Tracey Bradley" <tbradley@bracepatt.com>
To: "Paul Fox" <pfox@bracepatt.com>
Cc: "Aryeh Fishman" <afishman@bracepatt.com>, "Andrea Settanni"
<asettanni@bracepatt.com>, "Charles Ingebretson"
<cingebretson@bracepatt.com>, "Charles Shoneman" <cshoneman@bracepatt.com>,
"Deanna King" <dking@bracepatt.com>, "Jeffrey Watkiss"
<dwatkiss@bracepatt.com>, "Gene Godley" <ggodley@bracepatt.com>, "Kimberly
Curry" <kcurry@bracepatt.com>, "Michael Pate" <mpate@bracepatt.com>, "Ronald
Carroll" <rcarroll@bracepatt.com>
Subject: LA Times - Energy Overcharge of $5.5 Billion Is Alleged
Mime-Version: 1.0
Content-Type: text/plain; charset=US-ASCII
Content-Disposition: inline

The California ISO has leaked to the press that it is filing a study at FERC
today (presumably this will be part of the ISO's comments regarding FERC
Staff's Market Mitigation and Monitoring Plan) that shows that five major
in-state power suppliers -- Reliant Energy, Dynegy, Williams/AES, Duke Energy
and Mirant (formerly Southern Energy) -- plus 16 power importers have
overcharged for power.  The ISO's finger appears to be pointed primarily at
the five major in-state generators

Thursday, March 22, 2001

Energy Overcharge of $5.5 Billion Is Alleged

 Power: Money should be refunded to taxpayers and utilities, the state grid
operator says, citing evidence of market manipulation. Suppliers deny the
accusation.

By TIM REITERMAN and NANCY RIVERA BROOKS, Times Staff Writers

     Wholesale electricity suppliers overcharged California by about $5.5
billion between May and last month, and that money should be refunded to the
state's taxpayers and financially strapped utilities, the state power grid
operator said Wednesday.

     Generators engaged in market manipulation and consistent patterns of
bidding far above costs in the deregulated energy market, the California
Independent System Operator found in a study of pricing data. The findings
support the widespread belief that these suppliers reaped massive additional
revenue by manipulating the market.

     Spokesmen for the companies denied the accusation.

     The study, prepared for a filing with federal regulators today, is
central to Cal-ISO's efforts to seek reimbursement for what it considers
excessive charges by electricity suppliers during the state's energy crisis.

     "This might be the first time we told them the total impact and
magnitude [of the overcharging]," said Anjali Sheffrin, Cal-ISO's director of
market analysis. "We think the entire amount deserves consideration for
refunds."

     Using confidential bidding data on tens of thousands of electricity
sales, Cal-ISO found that five companies that together supply about 30% of
the power delivered to customers of the state's investor-owned utilities
engaged in two types of behavior that tended to push up prices:

     * They effectively withheld supplies by bidding at excessive prices,
even though they could have made some money selling more electricity.

     * Less frequently, they had power generation available but did not bid
at all.

     The study concluded that energy suppliers commonly offered their
electricity at twice their cost. For example, Sheffrin said, the average
markup in August was 100% during peak hours.

     A spokeswoman at the Federal Energy Regulatory Commission, which
oversees wholesale electricity pricing across the country, declined to
comment Wednesday, saying, "This is part of an ongoing proceeding."

     FERC member William L. Massey, who has considered previous commission
actions on refunds to be inadequate, said it would be improper for him to
comment on a report that has not yet been filed. But when told of the
$5.5-billion total, Massey said: "That doesn't shock me in any way."

     "Prices over the past 10 months in California have greatly exceeded the
federal standards of just and reasonable prices, and I think they have
exceeded the standards by possibly billions of dollars," he said.

     Cal-ISO, which oversees grid operations and an emergency energy market,
previously detailed $550 million in alleged overcharges for December and
January and asked FERC for refunds. But the commission has proposed refunds
of only a tiny fraction of that amount.

     The study covered five major in-state power suppliers--Reliant Energy,
Dynegy, Williams/AES, Duke Energy and Mirant, formerly Southern Energy--plus
16 power importers, all of which deliver power to customers of Pacific Gas &
Electric Co., Southern California Edison and San Diego Gas & Electric Co.

     "All [21] overcharged, but some excessively and some by moderate
amounts," Sheffrin said.

     Cal-ISO's public filing will quantify the alleged overcharging by each
company, but the companies will be identified only by a number. The code will
be provided to FERC, Sheffrin said, and Cal-ISO lawyers will determine how
much information about the companies will be made public.

     State, U.S. Investigations

     California electricity markets and the companies that buy and sell power
in the state have been the subject of several investigations by state and
federal authorities since wholesale electricity prices first skyrocketed in
May.

     Electricity suppliers have repeatedly denied manipulating the California
market in any way, whether through above-cost bidding in spot markets or
through physical withholding of electricity to drive up prices.

     Reliant Energy is cooperating with FERC's requests for more data and is
confident the commission will conclude that prices charged by Reliant were
justified, said Joe Bob Perkins, president of the Houston-based company.

     Perkins also bitterly disputed charges that Reliant has shut down units
so that it can earn bigger profits on the power sold by the remaining plants.
These charges have been leveled against all of the power-plant owners in the
state.

     Reliant Vice President John Stout said Cal-ISO's calculations typically
don't include such fixed costs as salaries, taxes and the interest on bonds
they sold to finance their power plants, which they acquired under terms of
the state's landmark 1996 deregulation law.

     In addition, he said, many high-priced power days have resulted from
buyers bidding against each other for scarce supplies rather than sellers
charging excessive amounts--like a house price being driven far above the
listing price in a hot real estate market.

     Williams Energy Services, a trading company that markets most of the
power produced by plants owned by AES, also says it will be exonerated by
FERC once the commission examines documentation being submitted, said Paula
Hill-Collins, spokeswoman for the Tulsa, Okla., company.

     "FERC has the obligation to investigate when these accusations are
made," Hill-Collins said. "This is just a process of justification, not
necessarily proof of guilt."

     Williams/AES was recently ordered by FERC to prove that it did not take
generating units out of service last year to drive up electricity prices, or
refund $10.8 million to California utilities.

     During the period studied, suppliers sold electricity in the California
Power Exchange to Southern California Edison, PG&E and San Diego Gas &
Electric Co. and in a backup market for last-minute electricity operated by
Cal-ISO. But sky-high prices plunged Edison and PG&E deeply into debt, and
most suppliers stopped selling to them in January, forcing the state
Department of Water Resources to step in as the primary electricity buyer for
the three big utilities' 27 million customers.

     The Cal-ISO study, first summarized at an energy conference last week at
UC Berkeley but not otherwise publicized, concluded that the companies
exercised so-called market power to pump up electricity prices.

     Severin Borenstein, director of the Energy Institute at Berkeley, said
Cal-ISO's study is consistent with his research examining pricing practices
in 2000.

     "We found several billion dollars . . . in departures from competitive
pricing," he said. "When the market was tight this summer, they were able to
push up prices, and they did."

     The early warning signs of electricity price spikes, the study found,
appeared in May after two years of relatively stable prices of $30 to $40 per
megawatt-hour under deregulation. Prices went up during the summer, dipped in
September and October with lower demand, then took off in November and
December as weather turned cold and the price of natural gas, which is used
to generate much of the state's electricity, reached record levels.

     "There were plant outages, and demand and supply became close," Sheffrin
said. "Whatever price they bid had to be taken, and market power asserted
itself."

     Cal-ISO found that $3 billion of the alleged overcharges occurred
between May and November.

     On Friday, federal regulators ordered six wholesale power suppliers to
refund $55 million to California if they cannot justify prices charged in
February. The refund was limited to power sold that month in excess of $430
per megawatt-hour during Stage 3 power alerts, when supplies are so tight
that rolling blackouts are threatened. (One megawatt-hour is enough
electricity to supply 750 typical homes for an hour.)

     The previous week, FERC ordered 13 suppliers to justify or refund $69
million for power sold in January at prices above $273 per megawatt-hour.

     Massey opposed the potential refunds as too low because they were
limited to hours in which a Stage 3 power emergency was in place and because
the benchmark price set for each month was too high--combining to exempt more
than 70,000 transactions from scrutiny.

     "We're still looking for our lost wallet under the lamppost, which is
Stage 3 alerts," said Massey, one of three commissioners on the five-member
board (two seats are vacant).

     Generators "have been given the free and clear," he said.

     "These tinkling little refunds they have come out with recently are
almost a joke," said Cal-ISO board member Mike Florio, senior attorney at the
Utility Reform Network.

     Resisting Price Caps

     Cal-ISO contends that the last 10 months have proved that generators can
no longer be allowed to receive electricity prices that are dictated by what
the market will bear.

     "FERC granted market-based rate authority on each of these suppliers'
own showing that they could not manipulate prices, yet their actions have
shown the contrary," Sheffrin said. "We feel FERC needs to look at the
premise of allowing these generators to continue selling at market-based
rates."

     The commission is responsible for ensuring just and reasonable
electricity rates. Although it has called California's power market
dysfunctional and vulnerable to manipulation, the agency has resisted setting
firm price caps sought by California's congressional delegation.

     Chairman Curt L. Hebert Jr. strongly opposes caps, while Massey wants to
use caps across the West as a "temporary timeout."

     Energy Secretary Spencer Abraham, in a New York news conference
Wednesday, reiterated his opposition to electricity price caps as a way to
cope with California's energy crisis.

     "If we put price caps in place, there will be more blackouts, and
they'll be worse," Abraham said.

     Cal-ISO is filing its market study as part of its comments on FERC staff
recommendations on ways to thwart market manipulation. FERC's proposal
includes strict coordination of power plant outages by Cal-ISO with reporting
of suspicious closures to FERC, and generator-by-generator bid caps tied to
costs.

---
     Reiterman reported from San Francisco, Rivera Brooks from Los Angeles.
Times staff writer Thomas S. Mulligan in New York contributed to this story.

Copyright 2001 Los Angeles Times


Here are the settles.  Thanks.

John

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, October 29, 2001 2:17 PM
To:	Griffith, John
Subject:	daily settles

 << File: Daily Settles.xls >>


Here is second related article
----------------------------------------------------------------------
This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2000/12/15/M
N5101.DTL
----------------------------------------------------------------------
December 15, 2000 (SF Chronicle)
Power Board's Industry Ties May Be Cut/Federal regulators consider making
deregulation's creation independent
Susan Sward, David Lazarus

   As power prices skyrocket and California reels from the threat of
blackouts, the agency charged with overseeing the state's power grid has
come under increasing attack, and federal regulators are poised to order
sweeping changes in its governing board.
   Ever since the Legislature created the California Independent System
Operator four years ago, critics have lambasted the agency, saying it is
dominated by the power industry and does not have ratepayers' interests at
heart.
   Criticism of the ISO has grown as electricity reserves have dwindled and
as the agency has initiated statewide energy alerts that have required
hundreds of businesses to cut back their operations.
   "There are people on the ISO governing board who have a direct financial
interest in the policies they set," said Severin Borenstein, a professor
of business administration and public policy at the University of
California at Berkeley and the director of the University of California
Energy Institute.
   Today, the Federal Energy Regulatory Commission is expected to issue a
ruling that would remake the ISO's 26-member board, which includes
representatives of three investor-owned utilities, four municipal
utilities and two power generators.
   From its high-tech headquarters in Folsom -- reminiscent of NASA's mission
control center -- the nonprofit ISO essentially acts as traffic cop for a
power system that serves three-quarters of the state.
   Responsible for assuring a stable source of electricity, the ISO has the
authority to initiate emergency alerts and, if need be, rolling blackouts
if supplies drop to near nothing. By law, the utilities and power
generators must comply with ISO directives.
   Last month, federal regulators proposed an order calling for the ISO board
to be replaced by seven independent members. The new board would be
selected by the current ISO before it was replaced.
   Striving to restore order to the state's turbulent electricity market, the
commission said an overhaul of the ISO's management would be an important
first step toward easing the burden on consumers. CREATURE OF DEREGULATION
   The ISO was created as part of the Legislature's deregulation of the
state's electricity market in 1996. The Legislature set up the ISO as a
"stakeholder board" with designated seats for participants in the energy
marketplace.
   The theory was that those involved in the industry would be best able to
guarantee reliable electricity for the Bay Area and the other ISO-served
areas in California.
   "It was designed to be as neutral as possible," said Michael Shames,
executive director of the Utility Consumers' Action Network in San Diego.
"If anything, it's turned out to be far too cozy with power generators."
   State Sen. Debra Bowen, D-Marina Del Rey, said lawmakers were told that
the deregulation blueprint they adopted in 1996 was a better alternative
than more sweeping proposals being considered by the state Public
Utilities Commission.
   Lawmakers were reassured at the time that the deregulation plan, which was
intended to lower power prices by increasing competition, had the full
backing of utilities, including Pacific Gas and Electric Co., power
generators and large users of electricity.
   "You have to remember that the political climate was different then," said
Bowen, the author of a pending measure replacing the existing ISO board
with one appointed by the governor and independent of the industry.
   "We had a Republican Assembly and a Republican governor (Pete Wilson) with
(his) appointees on the PUC with a free market point of view," Bowen said.
"The bargaining position of the ratepayers and consumer groups was not
strong." PRIVATE COMPANIES' LEVERAGE
   Doug Heller, assistant director of the Foundation for Consumer and
Taxpayer Rights, said the Legislature set up the ISO the way it did
because "it and the regulators were so transfixed with the idea of the
free market that they ignored the tremendous leverage they were handing
over to the private energy companies."
   He added, "Because the ISO has a mandate to keep the lights on and procure
power when the utilities are short, this energy industry-dominated board
has used its mandate as justification for gouging consumers."
   If the prices currently being paid for electricity are sustained over
time, Heller said ratepayers would have an average monthly bill of $620
and a small business paying a $1,000 monthly electricity tab could see its
bill jump to $10,000 based on current energy market prices.
   Federal regulators almost certainly will not let this happen. They are
expected to announce measures today intended to keep wholesale prices
stable and thus protect users from sharp increases in their power bills.
   The ISO is currently chaired by Jan Smutny-Jones, executive director of
the Independent Energy Producers Association, a trade association whose
members generate about 24,000 megawatts of power in California.
   The board's members include representatives from two power generators,
Dynegy Inc. and an affiliate of Florida Power and Light; the state's three
investor-owned utilities, PG&E, Southern California Edison and San Diego
Gas and Electric; and four municipal utilities serving Los Angeles,
Sacramento, Silicon Valley and several Southern California communities.
   UC's Borenstein said the ISO board should be constituted along the lines
of New England's power agency where "you go out and find independent
experts in power, finance and economics. New England has had its ups and
downs, but I think there is a trust the New England board is acting in the
best interests of consumers." POWER PRICING GATEKEEPER
   Mike Florio, an attorney for The Utility Reform Network in San Francisco
and a member of the ISO board, said that although the composition of the
ISO board is only one element of the California energy crisis, the ISO "is
at the crux of the matter because it establishes and administers the state
market rules that determine how pricing gets done.
   "The ISO has been a law to itself -- with its attitude being: 'We keep the
lights on, we know what's going on and others should butt out,' " he said.
   If federal regulators order an overhaul of the ISO today, "that may just
be the beginning of the battle," Florio said. "If the changes they order
don't offer customers relief from the extremely high prices, TURN and
others will call for the state to buy the transmission system from the
utilities as a means of wrestling back control from FERC."
   For his part, the consumer network's Shames is proposing a merger of the
ISO and the California Power Exchange, which coordinates the wholesale
market, thereby creating a "superagency" with full powers of oversight and
enforcement.
   Yesterday, the idea of making the ISO board independent picked up some
utility support as well. PG&E, which serves millions of customers in
Northern and Central California, issued a statement that "to restore
public confidence, we agree with state and federal officials that the ISO
board needs to be independent."
   In any case, the ISO is not without its defenders. Barbara Barkovich, an
ISO board member who is a San Rafael consultant to large industrial
customers, said some of the criticism of the ISO has been unfair.
   "There are larger market forces at work here: Clearly, we have a tight
supply situation compared to demand -- which means there will always be
upward pressure on prices," Barkovich said. "We have had a situation where
prices out of state have recently been very high, meaning when anyone is
selling, they will go where prices are the highest." POWERFULLY NOBLE
CAUSE
   For its part, she said, the ISO "has seen its role as doing everything it
could to keep the lights on rather than have blackouts."
   Others say the ISO simply does not have sufficient enforcement powers to
make its orders stick in a volatile energy market.
   "The ISO is a flawed institution, but it is not responsible for the
shortages," said Shames of the Utility Consumers' Action Network.
   Such assertions do not halt the drive to reform the ISO's makeup.
   Assemblyman Fred Keeley, D-Monterey, is the author of one of several bills
now pending in the Legislature that would give Gov. Gray Davis authority
to appoint both a new ISO and a revamped Power Exchange.
   But he cautioned that if an ISO restructuring is all that happens, "We
might as well do nothing. It is only one element of the solution." MORE
REFORMS NEEDED
   Keeley said that for California to work through its energy crisis, several
major reforms must be put in place, including energy conservation moves,
as the state's population climbs by as much as 600,000 a year.
   One area crying out for attention, Keeley said, "is the demand side of the
market. When California found itself in an energy crisis in the 1970s, it
took good action on solar, renewable sources of energy, pricing and tax
actions in the law and do on."
   But he said that many of those changes have been tossed out or whittled
away in the intervening decades.
   The Legislature also needs to look at the possibility of "the public
having some generation assets under its control -- for example, the
hydroelectric assets PG&E now has up for sale," Keeley said.
   "PG&E's assets on Northern California rivers is the largest group of
hydroelectric assets under one ownership in the state," he said. "Public
ownership of these hydroelectric assets is preferable to private ownership
because those assets in public ownership would mean lower rates for
consumers."
   Whatever course the Federal Energy Regulatory Commission and state
lawmakers take, the stakes are undeniably high.
   "If this conflict is allowed to continue," Bowen wrote FERC Chairman James
Hoecker last month, ". . . then we have failed our duty to Californians."

California Power ShuffleHere is how California's electricity distribution
system is set up and what steps the regulatory body can take in times of
extreme need..ISO statsVolume: 164 billion kilowatt hours a year Size:
124,000 sq. miles, or 75 percent of state.Day-by-day shortage The ISO
forecasts electricity usage throughout the state and monitors actual peak
usage..Stages of emergencyThe stages of electrical power emergencies in
California:Stage 1: Declared when the state's operating reserves of energy
dip below 7 percent. All power consumers are asked to conserve
energy.Stage 2: Declared when operating reserves fall below 5 percent.
Customers who have gotten lower rates for agreeing to go off-line when a
power crunch hits are ordered to reduce or shut off their power.Stage 3:
Declared when operating reserves fall below 1.5 percent. Rotating
blackouts could result, with power to different areas temporarily cut
off..COMPANIES THAT OPERATE WITHIN THE ISO:Pacific Gas & ElectricSouthern
California EdisonSan Diego Gas & Electric.Independent System OperatorA
not-for-profit corporation that ensures a competitive market for
electricity and controls the integrity of the state's strained power
grid..Remedies for a Stage 3 alertThe ISO can order the state to conserve
power during a Stage 3 alert by:Asking large facilities, such as a mine or
water pump, to shut down for a day to lessen demand. .Depriving some areas
of power in order to maintain others by initiating rotating blackouts or
brownouts -- temporary sags in power..Source: California Independent
System OperatorAssociated Press Graphic
   Chronicle research librarian Johnny Miller contributed to this report. /
Email Susan Sward at ssward@sfchronicle.com and David Lazarus at
dlazarus@sfchronicle.com.
----------------------------------------------------------------------
Copyright 2000 SF Chronicle


Attached is the latest draft of the Transport Option Program filing.

There are a couple of important changes from the last draft.

One is that we're no longer stating that the option fee is going to be
"market-based."  At FERC, the term "market-based" has connotations of having
to prove to FERC that a non-cost-based rate is appropriate because we lack
market power.  While we probably do lack market power, the consensus of the
legal/regulatory team was to try to portray the option fee as a built-in
feature of the transport rate, which is simply being disaggregated into a
separate option fee.  If this theory is not clear to you after you read the
filing letter, let's discuss how it should be improved.

The other significant change (also based on my meeting with legal/regulatory)
is that I've structured the tariff language and the agreement so that every
shipper, regardless of whether they currently use transport on TW, will have
to have a firm transportation agreement when they buy an option.  In other
words, a shipper that does not currently have a service agreement will simply
execute an agreement with a MAXDTQ of zero.  This structure has two
advantages:  1) it's consistent with our option-fee-as-part-of-transport-rate
theory, and 2) it will help support that theory in our next rate case.

I'd like to meet next week, either Wednesday afternoon or Thursday, to
discuss the following topics:

1)  Your comments and questions on this draft,
2)  Some examples of options, to make sure the tariff provisions and contract
work from a logistical standpoint,
3)  The bidding process, and how bids for options will be evaluated, and
4)  Comments received from shippers thus far.

I'll be working on 41 tomorrow; let's talk about what would be a good meeting
time.
I will be out Mon. and Tues.


For SLA file
 -----Original Message-----
From: 	Miller, Mary Kay
Sent:	Thursday, July 19, 2001 9:50 AM
To:	Corman, Shelley; McCarty, Danny
Subject:	Northern's 7/17 SLA/Carlton Settlement Offer

The attachment is the latest proposal for the SLA and Carlton resolution.   Shelley, as you can see the timing on the in kind is now 11/1/02.  However, you also note there is no consequence when we aren't able to accomplish.   MK
---------------------- Forwarded by Mary Kay Miller/ET&S/Enron on 07/19/2001 09:45 AM ---------------------------
From:	Steve Kirk/ENRON@enronXgate on 07/19/2001 09:25 AM
To:	Mary Kay Miller/ET&S/Enron@ENRON, Dave Neubauer/ET&S/Enron@ENRON, Drew Fossum/ENRON@enronXgate, Mary Darveaux/ENRON@enronXgate, Maria Pavlou/ENRON@enronXgate, Tim Kissner/ET&S/Enron@ENRON, Patrick Brennan/ET&S/Enron@ENRON, sstojic@gbmdc.com@SMTP@enronXgate
cc:

Subject:	Northern's 7/17 SLA/Carlton Settlement Offer

The customers asked that we send them our 7/17 offer in writing.  Here is a draft for your review.  The .xls spreadsheet shows the calculation of the 6/1/01 adjustment amount for R&T and the credit to the SLA.

We'd like to send this out to the customers this afternoon.  Please give me any comments you have by 3:00 today.  sjk


The report named: East Position Totals <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=2&report_name=East+Position+Totals&category_cd=1&category_name=EAST&toc_hide=1&sTV1=1&TV1Exp=Y&current_efct_date=11/26/2001>, published as of 11/26/2001 is now available for viewing on the website.


I can certainly send you this file each day - I hope it can be of some help.
All the deals it lists are with EPMI Short Term California, which is myself
or Jeff Richter; so I'm not sure how helpful it will be in determining which
desk or counterparty you have discrepancies with. While we're on the subject
of sharing files, though, I had spoken with the confirmation group in Houston
about the deal file you send them each day. They suggested I ask to be added
to the list so I can better assist their group in finding discrepancies in
EPMI-EES deals. If that's okay with you, I would appreciate receiving it.

In the meantime, I'll copy you on the EES sale prices starting tomorrow.

Thanks,
Kate

Judy Dyer@EES
01/29/2001 02:40 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: EPMI-EES Sale Prices

Kate,
I am in the confirmation group with EES and try to tie out our confirmtions
with the EPMI list I receive from Kim Hundle (EPMI), on a weekly basis.  This
file would be great help with this process.  Is there any way you could send
this to me as well? This would help me determine who the problem is with.  I
would appreciate it.
Thanks
Judy D