Texans fans, you've received our email on holiday specials at
http://store.houstontexans.com.?

Response has been great, but a few fans had trouble following the links.?
We've listed a few more featured items here and corrected the links, so it
will be easier for you to order the hottest Texans gear.?

Remember, if you order $50 or more of Texans merchandise online between now
and Dec.20, you'll receive free shipping and handling!

*** HOLIDAY SPECIALS ***

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Once again, have a happy holiday season!
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All,

I have  received from UBS a confidentiality form which you are required to sign. (this is a general form to be signed by all employees).   Pls either come by my desk to sign or e:mail me your desk location.

I would be grateful if you could return these to me by 4 pm, Wed, 6th.

Kind regards,

Karen.
ECS05845


Everyone,

This is hot news showing that the CAISO/CDWR relationship is even more cozy than we thought.  I am not sure how to best use this information, but this scam needs to be brought to the public's and FERC's attention.

1.  According to two sources, the CAISO is helping to bail Gov. Davis out of his high-priced CDWR long-term power contracts by purchasing CDWR's excess energy as an "Out Of Market" purchase---instead of purchasing real-time energy from the CAISO's Supplemental Energy auction as required by the CAISO Tariff.  The costs of purchasing this high-cost power is being charged to Scheduling Coordinators who are largely unaware of the CAISO's surreptitious transactions.

2.  This sweetheart deal violates the CAISO Tariff, which requires the CAISO to buy energy from its Supplemental Energy (Real-Time) auction first.  CAISO Tariff, Dispatch Protocol section 8.6.2 (d).  Only after the CAISO has used up the Supplemental Energy  bids, can the CAISO buy Out Of Market ("OOM") energy.  If the CAISO were following the Tariff, CDWR's excess energy would be treated as an uninstructed deviation and CDWR would be paid the clearing price for Supplemental Energy---which is often as low as $0.00.  Therefore, under the Tariff the CAISO could have paid CDWR the same price paid to other SCs, but instead is buying it at a price agreeable to CDWR.

3.  By ignoring Supplemental Energy bids in favor of CDWR power, the CAISO is able to manipulate the price it pays for energy in the Supplemental Energy market.  Low CAISO demand for Supplemental Energy drives down prices.  The clearing price for Supplemental Energy has often been as low as $0.00.  Therefore, the CAISO gets to keep all excess energy on the grid for free.  If CDWR was not getting preferential treatment, its energy would be treated as excess energy, and it would get little or nothing for it.

4.  While there is no evidence that Gov. Davis has directed the CAISO to buy from CDWR first, this behavior clearly benefits Davis.  Absent the CAISO's purchases of CDWR's excess energy, CDWR would be forced to sell its energy at a huge loss in the open market (just like many other suppliers).  The media has been been making hay out of Davis's strategy of buying high and selling low.  Therefore, Davis and CDWR benefit by being able to offset some of their losses under the long-term contracts.  Of course, they are only able to offset their losses through a back-door deal with the CAISO.

5.  The costs of this expensive CDWR power are being passed through to unwitting Scheduling Coordinators who, frequently seeing 10-minute Ex Post prices of $0.00, expect that the cost of imbalance energy will be close to $0.00.  These SCs are in for a big surprise.  According to one source at Sierra Pacific, the CAISO charged him as much as $400/MWh for imbalance energy.  (Where is the price mitigation here?)

6.  Who benefits under this scam?  Davis and CDWR.  Who loses under this scam?  In-state generators who are currently obligated to sell to the CAISO; Scheduling Coordinators who overgenerate or that have negative imbalances; consumers who end up paying higher prices for energy.

7.  Sources:  Our client representative from the CAISO has confirmed this practice and "the Friday Burrito," an industry insider publication mentioned it also.

8.  Here is the quote from the Friday Burrito:

"There is another problem that is being introduced by the long-term contracts. The ISO is utilizing the DWR contracts as Out of Market (OOM) calls, thereby forcing the contract energy into the grid ahead of the supplemental energy bids in the balancing energy ex post (BEEP) market. As one of our faithful observers told me, "The ISO will be billing some DRW/CERS long-term contracts to SCs as OOM energy. This has been confirmed by the ISO. This means there is no real-time price transparency. We may see an hourly ex-post price of, say, $15, but this will bear no resemblance to the eventual Real-Time settlement price. There is no way to estimate what the OOM charge was as the ISO doesn't post that information. The implication is that parties buying real-time energy will wait 90 days before theyhave any idea of the price. This sort of price uncertainty is completely contrary to the FERC's goals of creating open, transparent markets."
9.  Here is the e-mail from our CAISO representative:

-----Original Message-----
From: Almeida, Keoni [mailto:KAlmeida@caiso.com]
Sent: Thursday, August 23, 2001 4:04 PM
To: Emmert, Caroline; O'Neil, Murray P.; Gilbert, Scotty
Cc: Sheidun, Donna; Blair, Kit
Subject: RE: "Burrito"

Issue highlighted in blue lettering. This is being researched internally and
an ISO response on how these transactions are being handled should be
forthcoming, I would think.

Keoni Almeida
California Independent System Operator
phone: 916/608-7053
pager:  916/814-7352
alpha page:  9169812000.1151268@pagenet.net
e-mail:  <mailto:kalmeida@caiso.com>

-----Original Message-----
From: Emmert, Caroline [mailto:Caroline.Emmert@ENRON.com]
Sent: Thursday, August 23, 2001 3:15 PM
To: Keoni Almeida (E-mail)
Cc: Sheidun, Donna; Blair, Kit
Subject: "Burrito"

Can you send me a copy of the 'Burrito' that we were discussing, or at
least outline in an e-mail the name of the person who has written about
CERS and what was published?   What is the official name of this
newsletter?  I have seen them in the past (Harvey Hall used to get it
and sent a couple to me), but I haven't seen it for a long time.

Also, to recap our telephone discussion:  the charges assessed to the
Market in Charge Type 487 are determined by CERS, and are being
collected by the ISO on behalf of CERS, to cover the cost of contracts
that CERS has signed for energy purchases? and 487 pricing/charges have
do direct relationship to the Inc and Dec prices charged or paid to
those who inadvertently over- or under-schedule?  Please clarify that I
have understood this correctly.

Thanks a lot for your assistance.

Caroline

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

10.  Here is an e-mail from the intrepid and vigilant Kit Blair, in Volume Management, who first brought this scam to my attention.
 -----Original Message-----
From: 	Blair, Kit
Sent:	Thursday, August 23, 2001 3:42 PM
To:	Hall, Steve C. (Legal)
Cc:	DL-Portland Volume Mgmt
Subject:	487 Revelation

Steve,
	Here is a summary of what we have learned regarding how the CAISO is handling 487.  Kent at Sierra Power inquired to me why he was being charged 487, (487 is the charge code the CAISO uses when it has to go out of market, and purchase power that exceeds $150.00/mwh, 481 is the charge code they use to credit it back), for the same hours and intervals that both the INC and DEC prices were zero.  This was obviously very peculiar and nobody in VM knew the answer. So Caroline posed the question to Keoni at the CAISO.  His response was this:  that the CAISO is charging 487 regardless of the INC and DEC prices, to cover the forward market contracts signed by CDWR and CERS.  In effect, they are ignoring their tariff that states they are supposed to purchase power at the lowest price, and are in effect trying to recover costs for CDWR and CERS.

-Kit


Taylor 713-767-6368 Dynegy, runs Texas/West book
Chuck Nuetzler 713-420-3134, knows Valero, 19 years with them, knows waha
Tom Mathiasmeier 281-293-4301, runs Texas trading and lobo pipeline
Brad Clausen 713-369-8745 knows everyone in Texas
Sandy Tomme 713-752-7889 currently trading, most aggressive transportation
rep we ever had, has all the right contacts
Todd Warner 713-752-7702, great trader, could easily run a stack, knows texas
intrastates and gulf coast


Here are the latest bullets approved by Louise.

Vance

 -----Original Message-----
From: 	Kean, Steven J.
Sent:	Thursday, October 25, 2001 9:53 AM
To:	Meyer, Vance
Subject:


Got it.  Thanks.  I'll be sending mine around later this afternoon.

Best,
Jeff


Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com
----- Forwarded by Carol St Clair/HOU/ECT on 07/10/2000 06:37 PM -----

	Rod Nelson
	07/10/2000 10:30 AM

		 To: Carol St Clair/HOU/ECT@ECT
		 cc:
		 Subject: Re: Deutsche Bank

No problem on the crib.  As for Mexico setoff, I am aware.  I was under the
impression that even setoff among common entities is questionable.  My
rationale is that we will almost certainly trade with any given cp through
one Enron entity or the other, and not both.  If I am wrong, we will manage
the process internally (i.e. cut the cp's credit line in half).

Rod

   Carol St Clair                07/10/2000 08:47 AM

To: Rod Nelson/HOU/ECT@ECT
cc:
Subject: Re: Deutsche Bank

Rod:
Thanks.  I expect to get a new draft of the Schedules from DB later today.
As for the crib, it is perfect and Bill and a friend managed to put it
together.  Thanks so much for lending it to us.  I'm hoping that we will have
a child to put in it within the next week.  As for Mexico, the issue there is
that they do not recognize setoff in bankruptcy so that if deals are done
with 2 different Enron counterparties we will not be able to setoff.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com

	Rod Nelson
	07/10/2000 01:21 AM

		 To: Carol St Clair/HOU/ECT@ECT
		 cc:
		 Subject: Re: Deutsche Bank

I will continue with this one, for as long as we can adapt to the time
difference.  I will approve the A/A2 minimum requirement.

Did Bill get the crib together?

Rod

   Carol St Clair                07/07/2000 10:12 AM

To: Rod Nelson/HOU/ECT@ECT
cc:
Subject: Deutsche Bank

Rod:
I don't know if you are still handling this.  We are close to getting this
finalized.  One credit comment from them that I need someone's thoughts on.
They want the Issuer of LC's to maintain a credit rating of A from S&P and A2
from Moody's.  We usually put A- and A3.  are you okay with this?  If I need
to run this by someone else please let me know.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com


Here is the presentation.  Let me know if you have any questions. Thanks
Ben


BUSINESS HIGHLIGHTS

Enron Freight Markets
Enron Freight Markets (EFM) launched its over-the-road trucking business this
week.  In addition, EFM completed 199 intermodal transactions in the first
week of April.

ENA West Power
ENA West Power recently closed the sale of two power projects.  The 750MW
Pastoria Energy Facility in Kern County, California was sold to Calpine and
the 240MW Fountain Valley Power project in Colorado was sold to Black Hills
Energy Capital.  Given the power shortage in the West, ENA is developing
additional power generation in Nevada, California and Washington.

Enron Industrial Markets
The newsprint group of EIM is working to revolutionize the newsprint market
and bring financial rigor and market efficiencies to a business that has
remained relatively unchanged for more than a century. The global newsprint
market is a 23 billion dollar a year business with the North American market
comprising one third.  The group's originators, mid-marketers, and financial
and physical traders offer our customers numerous financial and physical
products not previously available in the market.

EIM has made a substantial commitment to this business with the purchase of
Garden State Paper company last year and the recent purchase of Daishowa
Paper in Quebec City. The number of transactions has grown exponentially with
the physical trading alone reaching a nominal trading volume of more than
$10,000,000 per month in little more than four months since opening.  In
addition to physical spot transactions, the desk offers our counterparties
log-term fixed priced transactions, indexed based pricing, forward contracts,
swaps, and derivative products.

Forest Products
Forestweb Inc., an Internet-based generator, aggregator and integrator of
knowledge and information for the forest products industry, announced a new
window to industry financial and risk management tools available from
Clickpaper.com. Clickpaper allows the industry direct access to transactable
prices for both physical and financial products, in an electronic format.

Paperloop.com, one of the leading online resources for the forest products
industry, announced the addition of Clickpaper.com in their emarketplace,
which showcases various e-commerce companies and highlights their services.
Paperloop provides Clickpaper.com exposure to its 250,000+ monthly users in
the pulp, paper and converting industries.

IN THE NEWS

Ken Lay was the cover story for the April 2001 issue of Continental Magazine.
 He had positive things to say about his employees.

&Sitting in his 50th floor mahogany-paneled office overlooking his
much-beloved downtown Houston, Lay, with a self-conscious smile, bows his
head slightly as he,s described as an innovative market maker.  +I really can,
t take any credit, he says. My employees are responsible for what Enron
does.,  What he does best, the Missouri-born corporate icon says, is +to
create an atmosphere of empowerment and creativity and hire bright,
innovative people who aren,t afraid to take risks and try new things.8

WELCOME
New Hires
EIM   - Craig Rickard, Lisa McClendon
ENA  - Ben Brasseaux, Stephen Swisher, Tamera Joyner, Vanessa Griffin,
Kathleen Ashton

Weekly EnronOnline Statistics

Below are the latest figures for EnronOnline as of April 6, 2001.

* Total Life to Date Transactions >  845,000
* Life to Date Notional Value of Transactions > $500 billion

NUGGETS & NOTES

Mark your lunch calendars now! The next EWS Brown Bag is Thursday, April 19
at 11:30 AM.  Tim Battaglia VP/EIM will be discussing Steel Origination.

Congratulations to Peter del Vecchio, EIM senior counsel, and his wife, Nair.
They are the proud parents of Dante Valentin del Vecchio, born April 3,
weighing 4 pounds, 8 ounces.

NEWS FROM THE GLOBAL FLASH

Enron Poland obtains Gas Trading License
On 22nd March 2001 Enron Poland received a 10-year Gas Trading License, valid
for both domestic gas trading within Poland as well as for gas exports.  The
license is a key component to our entering the gas trading market in Poland
and, coupled with the Power Trading License we obtained in 1999, will give
Enron Poland a strong position in the developing wholesale energy market.  In
the next two to three weeks, we expect to receive a cross-border trading
license covering gas imports that are further regulated under the Polish
Energy Law Ordinance on Gas Import Diversification.

Enron Wind announces first UK off-shore wind farm
On 5th April 2001, Enron Wind announced that it had been granted the right to
initiate the planning process for its first UK offshore wind farm, located at
Gunfleet Sands, 7km from Clacton-upon-Sea in Essex.  Construction is expected
to start towards the end of 2002, with the wind farm of 30 turbines being
operational by Q4 2003.  Enron Wind is also actively involved in a number of
on-shore projects in the UK, including the development of wind farms in Wales
and Northern Ireland.

LEGAL STUFF
The information contained in this newsletter is confidential and proprietary
to Enron Corp. and its subsidiaries.  It is intended for internal use only
and should not be disclosed.


Kate, please check with trader, Mark Fischer...Public Ser New Mexico returned
our Enron confirmation letter executed, they wrote in by delivery point: West
Wing      500KV

Is this acceptable?  Thank you
Stephanie


Jeff,

Thanks for this analysis. I think we would all agree that the solution to
put power
100% in the hand of the state is an extremely frightening proposition.
Unfortunately, it
falls in-line with what Gov. Davis likes to do, which is to control all of
the process himself.
I know John will not be able to digest all of this, but will brief him over
the phone on the
excellent arguments you make here against support for AB1X.

I will give you all feedback from the meetings tomorrow. Thanks for all
your help.

Laura

At 10:02 AM 2/14/2001 -0600, Jeff.Dasovich@enron.com wrote:

>Hi Laura:  I've attached three things, but first wanted to give you a bit
>of an update on events transpiring in Sacramento and at the Public
>Utilities Commission.
>
>Move to Prohibit Customer Choice
>As you may know, AB1X, the bill that the Legislature recently passed and
>the Governor signed, gives the California Department of Water Resources the
>authority to buy power on behalf of the utilities.  Included in that bill,
>however, is a provision that prohibits "Direct Access,"  California's term
>for customer choice.
>
>In sum, the bill, in its current form, prohibits businesses and consumers
>from chosing an alternative energy service provider, like Enron.  Our
>understanding is that the Department of Finance called for the prohibition.
>Their reasoning is that they need a "captive" customer base to pay for the
>bonds that the State will issue in order to finance DWR's power purchases.
>
>Customer choice was of course the foundation of California's restructuring
>law, AB 1890, and is arguably the only bright spot in an otherwise fatally
>flawed plan.  For example, the only businesses and consumers that were
>protected in San Diego when rates were deregulated last year were those
>businesses and consumers that had signed fixed price power deals with
>competitive service providers.  Ironically, the recently passed legislation
>takes choices away from consumers and diminishes their ability to manage
>their energy costs.  Before AB 1890, consumers and businesses had one
>choice--the monopoly  utility.  With the passage of AB 1X, they again will
>have one choice. But this time their only choice will be to buy from a
>government agency DWR.
>
>A broad coalition of consumer groups has expressed its opposition to the
>prohibition and Senator Debra Bowen (a key player on the Senate side), and
>Fred Keeley (a key player on the Assembly side), have promised to "fix" the
>prohibition in another bill "SB27X."  I'll forward in another email the
>language that the coalition has drafted and hopes Bowen and Keeley will
>carry.
>
>Unfortunately, we are now hearing rumors that the Governor intends to
>direct the California Public Utilities to immediately implement the
>provisions of AB1X prohibiting Direct Access, despite the fact that a large
>coalition of consumers and service providers are actively working with Bown
>and Keeley to amend the prohibition language.
>
>It would be extremely useful if the folks participating in the meeting on
>Thursday with the Governor let him know that taking choices away from
>businesses and customers is the wrong way to go and that he and the
>legislative leaders need to work with the coalition to fix it.  You'll note
>in the language developed by the coalition that the proposal strikes a
>reasonable balance between the Dept of Finance's concerns about recouping
>DWR's costs of buying power, and the need to give consumers and businesses
>maximum flexible in managing their energy costs.
>
>Move to Have the State Take Over the Electric Industry in California
>
>John Burton, the Democratic leader of the Senate, insists that, "if
>California is going to 'bail out' the utilities, the State needs to get
>something in return."  Burton wants the state to buy and operate PG&E's and
>Edison's transmission system and create a state power authority that would
>get in the business of (among other things) developing, financing,
>constructing and operating power plants and natural gas pipelines.  Burton
>got both of these bills designed to take over the industry passd out of his
>committee yesterday (SB6X and SB33X).  It is unclear how much support he
>has in the full Senate or in the Assembly, but the possibility of passage
>is certainly greater than zero at this juncture.
>
>Others experts are offering a better alternative.  When the federal
>government helped Chrysler out of its financial difficulties 20 years ago,
>the federal government received stock warrants in return.  Until recently,
>the Governor favored warrants, but more recently he has waivered in his
>statements regarding a state take over.  Burton appears to have negotiating
>leverage with the Governor and appears to be using it.
>
>Again, it would be extremely useful for folks to let the Govenor know in
>the meetings on Thursday that a State take over of the industry is an
>extreme move and bad public policy.  I will forward to you in a separate
>email letters that we sent to Burton expressing our opposition to his bills
>and the reasons for our opposition.  In brief, there is no shortage of
>private capital ready and willing to invest in California's energy
>infrastructure (i.e., power plants, electric transmission lines, gas
>pipelines).  All California needs to do is create the investment climate
>necessary to attract the capital.  In addition, history shows that the
>State is extremely ill-equipped to become California's mega-utility.
>
>Here are the attachments:
>
>    A demand buy-down proposal.  We made this proposal to the Governor (and
>    continue to propose it to policymakers in Sacramento, Washington D.C.
>    and just about everywhere else).  In short, the notion is that, if the
>    market is willing to pay power producers, say, 7 cents/kwh to "produce"
>    power, then the market ought to be willing to pay businesses and
>    consumers 7 cents/kwh to "reduce" power consumption.
>
>    This approach is critical for two reasons:  first, it provides
>    businesses and consumers the financial incentives necessary (and that
>    California currently lacks) to conserve energy and use energy more
>    efficiently.  Second, because California delayed identifying and
>    implementing a solution to California's energy crisis, its options for
>    addressing the severe shortages that are likely occur this summer are
>    very limited.  Reducing demand represents one of the few options that
>    can help to immediately reduce the gap between supply and demand.
>    Putting financial incentives in place now to reduce demand and "free up"
>    electrons is an investment with significant payback.
>
>    A "manifesto" recently released by a group of Berkeley and Stanford
>    economists and industry experts urging the Govenor to pursue a
>    "market-oriented" solution to California's energy crisis.
>
>    An editorial in yesterday's Wall Street Journal by Dan McFadden, a nobel
>    prize-winning economist from Berkeley echoing the proposal advanced in
>    the "manifesto."  McFadden was one of the manifesto's signatories.
>
>Finally, we are working on "model Legislation" proposing a market-based
>solution that we will share with you soon and that we hope the business
>community--and the Valley in particular--can embrace and advocate.
>
>I realize that this is a lot of information and I apologize for the length
>of this note, but I wanted to try to make sure that you're up-to-date.
>Please don't hesitate to give me a call if you'd like to discuss further.
>
>Best,
>Jeff
>
>
>(See attached file: Manifesto-final version.doc)(See attached file:
>McFadden Editorial in WSJ.doc)(See attached file: Demand buy-down
>proposal.doc)
>
>


Is this what you had in mind?


Sean:

Torrey Moorer in EOL called regarding the setup of Mid-C "Dart Product" ( I might be mis-spelling).  He advised you have been asking IT to get this created.  Would you let me know the nature of this new "product"?  Risk might need to set you up in some systems in order for everything to be working right.

Thanks,

Fran
x7973


The attached memo contains Enron America's Gas Trading net open position, maturity gap risk, and VaR violation memos based on preliminary numbers.

Please call me at x33102 if you have any questions.

Chris Abel


That's the way it should be and that's what we're doing!  The technology
groups from Enron Net Works, Enron Transportation Services, Enron Broadband
Services and Enron Energy Services are joining together to bring you the
latest Enron Technology Showcase.  The purpose of this event is to keep you,
our customer, aware of the tools available to you today as well as plans for
the future.  Come see and hear about the future of( laptops, desktops,
operating systems, messaging and much more.

When:  November 2 & 3
Time:  10:00 a.m. ) 2:00 p.m.
Place: Enron Building Plaza

Thursday, November 2, 2000
? Windows 2000 * ) See the latest workstation operating system coming to a
desktop near you.
? Help Desk * ) Let,s talk it over.  Come meet your front line support group.
? IT Procurement * ) Everyone loves to shop, but do you know what you,re
buying?  We do.
? Security * ) We,ll answer your questions about gaining access to
applications and other network resources.
? Hardware * ) See the latest laptops, desktops, etc.
? Integrated Solutions Center ) Do you have questions about eHRonline?  We
have the answers!
? Technology Training ) If you,re not learning, you,re not growing.  Stop by
and see what classes are available to you.

Friday, November 3, 2000
? Messaging * ) E-Mail, E-Mail, E-Mail( See and hear about the future
solution for your Business Unit.
? Remote Connectivity * ) Do you work from home or are you a &road warrior8?
This exhibit can help you get connected.
? Global Strategic Sourcing ) We,ve got plans to &Save You Money8.  Stop by
and see how.
? Enron Broadband Services ** ) EBS specific offering.
? Enron Energy Services ** ) EES specific offering.
? Enron Transportation Services ** ) ETS specific offering.
? Enron Net Works ** ) ENW specific offering.

*   Representatives from all of the IT Business Units (ENW, ETS, EBS and EES)
will be present to answer your questions.

** Each IT Business Unit has an exhibit to &Strut their stuff8!  They will be
showcasing products and services that are specific to their
    customer base.  You,ll have to see it to believe it!

As you can see, we have 2 full days of information to share with you.  So,
mark your calendar and don,t forget to stop by and see your Information
Technology Team in action.  We look forward to seeing you there.

Susan Lopez
Director, Customer Connection
Enron Net Works
713-853-7947


FYI in case you hadn't already heard

---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 03/29/2000
02:05 PM ---------------------------

John Llodra@ENRON
03/28/2000 04:41 PM
To: Paul Racicot/HOU/ECT@ECT, Mark Dana Davis/HOU/ECT@ECT, Elizabeth
Sager/HOU/ECT@ECT, Edward D Baughman/HOU/ECT@ECT, Tracy Ngo/HOU/ECT@ECT
cc:
Subject: NHEC ICAP and Energy Sale

All:

I wanted to give you a heads-up that we have been shortlisted to negotiate
with New Hampshire Electric Coop (NHEC) on supplying their load requirements
from Sep-00 through May-01.   Attached is a table that sets forth the monthly
quantities and our indicative pricing (will be refreshing pricing based on
updated forwards).  They have decided not to go with the purchase for Jul-Aug
at this time.  They seem to have gotten their act a little better together
this time around with pre-approvals internally, but any deal they do would
still need to be approved by the NHPUC.

Here's the scoop on timeline:

They will send to us a draft contract this Friday for review/comment.  We
need to have our comments back to them by Weds Apr 5th.  Elizabeth, does this
fit your schedule OK?
They plan to hold negotiations with us and other parties via phone on Monday
Apr 10th, and hope to close  a deal that same day.  Again, this deal would be
subject to NHPUC approval, so we need to get a feel for the risk of NHPUC
disapproval.
Tracy - as you know, they are not so attractive from a credit standpoint.
Is letter of credit sufficient in their case?  Can we talk about what we need
to put in place for the transaction.

I will be in Houston on Weds-Fri of this week (Elizabeth and Tracy -- I'll be
sure to swing by and introduce myself).  Thanks much and I'll forward the
contract when I get it.

Regards,
John


Hello ,

I need a computer and flat screen moved.

The location is EB3240E.

ONLY- One computer and a flat screen needs to be moved to EB3240G.

 The remaining flat screens should stay at the location EB3240E.

R.C. 107043  -   Co. # 0413

                                     Thanks
                                Kevin Moore

Please if at all possible let me know when this should take place.


Phillip and/or Kam,

Jim Little booked some liquidation pmas in 10/00 GL for 05/00 production for
Central region.  I'm not able to tie these taggs to a Sitara deal so I'm not
sure what to do with them.  Can you help?

ND2875.3     Consumers Gas  93,000 revenue  Jim says this should probably be
reclassed to Ontario, but I don't have any open issues related to Ontario and
I       don't know what the Sitara link is.

EC3704.7     Enron Canada            19,848 revenue  The tagg references
Sitara #313723 but when I try to open it, I get an access denied message, any
clues what this       is?

ND9423.1    Enron Canada 23,249 revenue I didn't see a Sitara reference on
this tagg, either.

He also booked a pma for 760,000 of expense for Consumers on tagg NF9881.1
but it looks to me like we've already booked this one in the original
liquidation file, so I've asked him to research that one.

Thanks for your help.

Cathy


Is this any help?

 -----Original Message-----
From:  Blay, Jennifer
Sent: Thursday, May 17, 2001 9:04 AM
To: Vanek, Darren
Cc: Stevens, Mechelle
Subject: Re: Texaco

Darren-
The wiring instructions are the same for both Texaco Inc and Texaco Natural
Gas-

Chase Manhattan Bank
Acct # 910-277-4818
ABA # 021000021

Thanks
Jennifer

	Enron North America Corp.  From:  Mechelle Stevens
05/17/2001 07:07 AM

To: Jennifer Blay/HOU/ECT@ECT
cc:
Subject: Texaco

Jennifer,

Can you please handle this.

Thanks,
Mechelle
---------------------- Forwarded by Mechelle Stevens/HOU/ECT on 05/17/2001
07:07 AM ---------------------------
From: Darren Vanek/ENRON@enronXgate on 05/16/2001 04:16 PM
To: Mechelle Stevens/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT
Subject: Texaco

Mechelle,
Thanks for helping me earlier. Have you been able to teack down the
wiring/settlement instructions for Texaco Inc and Texaco Natural Co Inc?

Darren Vanek
713-853-1436


Today's Pre-Bid Meeting will be held in 05075 from 3:00 PM to 5:00 PM

Patti:  Please pass on to the schedulers.


Don't know
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)


We had a very good work session with GE today to iron out the details of the
break out contract.  We expect to have a draft on Monday, which should be
close to final as far as the form goes.  I have also asked A & K to prepare a
memo outlining what will need to be done on a project basis to complete the
document.

Please let me know if you have any questions.

Kay


This is a copy of the presentation that Bob Superty made to the Peoples
Energy Board this week.  Lousie Kitchen told me that he was very impressive
in the presentation (not a surprise to me, but it is nice when others
recognize the talent that is in the operations organization).  We may be able
to incorporate some of this into our presentation to originators for internal
purposes, and there may be parts of this that could be used in external
marketing tools. --Sally
---------------------- Forwarded by Sally Beck/HOU/ECT on 04/05/2001 05:48 PM
---------------------------

Robert Superty
04/05/2001 04:53 PM
To: Sally Beck/HOU/ECT@ECT, Bob M Hall/NA/Enron@Enron
cc:
Subject: Peoples presentation

Sally, Bob  FYI (or your files) - here is the presentation I gave to the
Peoples Energy Board of Directors.

Let me know if you have any questions - Bob


Alan,

This is a very valid question and one which was asked by Steve Hall about 6 weeks ago.  We have been working with the ISO the get the following information.

Based on the latest information provided by the ISO Client Reps.  Enron would be eligible for receiving part of the Allocation.  There were some questions regarding this in the past because, the tariff was written in our favor to receive part of this allocation but the Settlement documentation by the ISO did not represent the same.

Per John Gooden at the ISO

The CT 1480 is used to allocate the revenues received by the ISO through CT 480.  Such revenues will be allocated to the SCs with a positive Uninstructed Demand Deviation and to those with a negative Uninstructed Demand Deviation with a magnitude less than or equal to 5% of the metered Demand.  These SCs will receive revenues based on the ratio of each SC's metered demand to the sum of all such SCs metered demand in the control area.

Chris Stokley has placed a request with the ISO to provide us with information indicating how much of this has been allocated to Enron.  If they are truly calculating this today they should not have any problems providing this information.

If you have any additional questions please let me know.

Thanks - MO

 -----Original Message-----
From: 	Comnes, Alan
Sent:	Wednesday, June 27, 2001 2:56 PM
To:	Steffes, James; Alvarez, Ray
Cc:	Hall, Steve C.; Mara, Susan; Perrino, Dave; O'Neil, Murray P.; Belden, Tim
Subject:	Underscheduling Penalty--CONFIDENTIAL

The Calif. EOB has released information on the size of the FERC-approved, tracked, but-as-yet-unimplemented underscheduling penalty.

See the attached PDF file, especially the figures in the attachment at the end.

The total liability for PG&E and SCE is approaching $1billion. (EOB says that DWR is off the hook but I am not sure that is true.)

As a generally balanced SC, Enron would likely be eligible for some of these proceeds.  How the proceeds would be allocated is less than fully clear.  MURRAY O'NEIL: Have you seen anything on who would receive the revenues from this tracking A/C if it were to be billed and paid?)

Also the probability of ever extracting these $s out of noncreditworthy counter parties must be taken into account.

Alan Comnes

 << File: EOB Request for Rehearing June 14.pdf >>


Today FERC issued the following draft orders:

NYISO TEP and Bid Cap (ER01-3001):  Commission granted NYISO's request to extend the currently effective $1000/MWh Bid Caps on certain NYISO adminstered markets, and to extend its Temporary Extraordinary Procedures for Correcting Market Design Flaws and Addressing Transitional Abnormalities, until the Northeastern RTO is operational.  The Commission ordered NYISO to narrow the scope of the TEP, and to file tariff sheets doing so within 30 days.

NYISO proposed virtual bidding procedures (ER01-3009; ER01-3153):  Tariff changes to implement virtual bidding were approved.  The changes would allow market participants to bid non-physical generation and load into the day-ahead market and settle the bids in the real-time market.  Also accepted were NYISOs Market Mitigation Measures to address gaming or market power strategies that might emerge as a result of the virtual bidding.

NYISO - Cost responsibility for new interconnections.  (ER01-2967):  Tariff changes allocating cost responsibility for interconnection facilities.  The provisions allocate to developers 100% of the cost of facilities necessary to physically interconnect the project.  Additionally, developers are allocated the coswts for transmission system upgrades that would not have been made "but for" the interconnection, minus the cost of any facilities that the NYISO's regional plan dictates would have been necessary anyway for load growth and reliability purposes.

ISO-NE - Interim Bid Caps (ER01-3086):  Commission approved extension of bid caps until the Northeastern RTO is operational.

Calpine v. ISO-NE (EL01-124):  Commission granted complaint by Calpine and Mirant, finding that ISO-NE has amended Market Rule 5 to exclude external contracts from setting the energy clearing price, in violation of a Commission order.

If you need further information, please let me know.

Susan Lindberg
x30596


Please use the form attached when preparing the top ten risks for your
businesses.  Please be brief!