Panel finds ex-chairman of FERC violated no laws or ethics policies
Houston Chronicle, 09/21/01
Houston man held for lapsed visa, FBI says
Houston Chronicle, 09/21/01
Enron to go ahead with legal steps
The Economic Times, 09/21/01
Regulators end consumer choice, a last vestige of California's failed power deregulation
Associated Press Newswires, 09/21/01
Judicial panel set up to probe Enron deal
The Times of India, 09/21/01
Terrorist attacks derail resolution of Enron issue
The Economic Times, 09/21/01
COMPANIES & FINANCE INTERNATIONAL - PG&E files plans for restructuring.
Financial Times, 09/21/01
COMPANIES & FINANCE INTERNATIONAL - Attacks spark surge in oil transport costs.
Financial Times, 09/21/01
Pacific Gas & Electric's Bankruptcy Plan Would Split Utility Into Two Firms
KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California, 09/21/01
USA: Enron exec, ex-FERC head cleared in ethics probe.
Reuters English News Service, 09/20/01

Sept. 21, 2001
Houston Chronicle
Panel finds ex-chairman of FERC violated no laws or ethics policies
Reuters News Service
WASHINGTON -- The investigative arm of Congress Thursday said there was no evidence the former chairman of the Federal Energy Regulatory Commission violated ethics regulations by asking Enron Corp.'s chairman for political support.
The General Accounting Office said its investigation found that former FERC Chairman Curtis Hebert did not accept anything of value from Ken Lay and did not discuss any of the giant electricity and natural gas company's cases pending before the agency.
In January, President Bush named Hebert, a Mississippi Republican, the acting chairman of FERC. However, rumors spread that Bush planned to replace Hebert with Patrick Wood, a Texas utility regulator.
The GAO said it investigated a telephone conversation Hebert had with Lay in February. During that exchange, the acting FERC chairman asked Lay, who is a close friend of Bush's, for his endorsement to continue in the job.
"Mr. Lay said that because Mr. Hebert was pressing him for an endorsement, he took the opportunity to ask him about his position on (electricity grid) access, an issue that he and Mr. Hebert did not agree on," the GAO wrote.
"Mr. Lay told us that during the conversation, Mr. Hebert said that FERC was addressing some issues and that Mr. Lay would probably be happy with the direction in which FERC was moving," the GAO said. "This statement conflicts with Mr. Hebert's recollection."
The GAO concluded that no criminal laws or ethics regulations were violated. Regardless of what was said about open access, the GAO said no criminal laws or ethics regulations were violated during the conversation.

Sept. 21, 2001
Houston Chronicle
Houston man held for lapsed visa, FBI says
By MARY FLOOD and DALE LEZON
Copyright 2001 Houston Chronicle
A Houstonian named Asem Atta, reportedly of interest to federal authorities investigating terrorism, is in custody of the Immigration and Naturalization Service because he stayed in this country longer than his papers allowed, an FBI spokesman said Thursday.
But Bob Doguim said the FBI "has no interest in" Atta, 23, an Enron employee who lived in Midtown.
"We're interviewing a lot of people, a lot who have the Arabic equivalent of the name Bob Jones," said Doguim. "Obviously, we're talking to a lot of folks from the Middle East and we're finding a lot of wonderful people, some who've overstayed their visit. That doesn't make them criminals."
Doguim said Atta is what the INS calls "out of status." The INS would not comment.
Enron would say only that it did employ Atta, but that he is not now at work.
A friend responding to a Chronicle e-mail query Thursday said Atta has been missing since right after the Sept. 11 explosions in New York and Washington, and his friends were worried about him and did not believe he could have been involved.
The Washington Post reported that Atta is a Pakistani national and former resident of Kuwait and was being sought for questioning in the attacks.
From his own online diary and resume, it appeared that Atta came to Houston in August 1999 from Wichita, Kan. His resume and school records indicated that he lived there at least since 1994.
One of the alleged terrorists had the last name Atta and there has been some question whether it is simply a common Arabic surname or one purposely adopted by some in the terrorist group, perhaps because it is common.

Enron to go ahead with legal steps
Soma Banerjee

09/21/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

THE TERRORIST attack on America has its fallout on the Dabhol controversy as well. Enron has declared its intention to press ahead with legal measures that would, it claims, impose a financial obligation of $5 billion on the Indian parties involved in the dispute.
The renewed emphasis on legal recourse would appear to be a direct fallout of the cancellation of the Prime Ministers planned visit to New York later this month, during which Enron hoped to press its case through high level interaction between the governments of India and the US.
This issue which had been taken up at the highest level by the PMO, finance ministry and power ministry in the past few months was expected to be discussed billaterally between the two countries.
In fact, the PMO had even directed the concerned ministries to find a solution to resolve the payment crisis.
The government had set up a committee led by Indian financial institutions to work out an exit route for the US power developer which had already decided to exit the project.
Although, the report submitted by this committee was not accepted by Enron who has demanded its stake to be bought out at a minimum cost of $ 1 billion, a dialogue between the FIs and Enron had been initiated to find a solution.
However, now following the recent developments in the US which has sent the economy and the government in a tizzy, it is most unlikely that Enron will be able to cut any ice with US government officials at this juncture.
Although, it is not known as to what the fallout of the arbitration proceedings would be, the Indian government has also preferred to take advantage of the developments and has remained low keyed.
According to Enrons estimates, the project incurs an additional cost of Rs 500 crore every day on account of interest during construction.
Moreover, the rejigging of the project and the rescheduling has already hiked the project cost by $14 million . The total increase in the project cost would be to the tune of about 39 per cent with a whopping financial liability of Rs 15,000 crore on MSEB if Enron wins the case.
The companys concern over the delay and the fallouts of the recent developments are reflected clearly in a recent communication by the company to the Centre.
The project has not been in operation and stoppage of fund disbursals for maintenance by the lenders is affecting the health of the project too. According to this communication international financial institutions who have a total exposure of $ 1.1 billion too now want to exit from the project, and would want their stake to be bought out.

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

Regulators end consumer choice, a last vestige of California's failed power deregulation
By KAREN GAUDETTE
Associated Press Writer

09/21/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SAN FRANCISCO (AP) - State power regulators voted to suspend a key aspect of the state's deregulation effort, leaving California electricity customers unable to buy power from anyone other than their local utility.
The state Public Utilities Commission on Thursday also abruptly delayed a decision for at least two weeks on whether to grant the state's power-buying agency the authority to raise electric rates for millions of Californians without commission review.
That approval is necessary to encourage Wall Street to buy $12.5 billion in bonds the state is issuing to recoup the $9.5 billion it has spent buying power for three financially ailing utilities, Gov. Gray Davis has said.
Critics, including the utilities, consumer advocates, businesses and some PUC members, say following the Legislature's orders to surrender the commission's rate-setting authority only will hurt consumers. Commissioner Jeff Brown said protecting ratepayers from unjust and unreasonable costs is part of the PUC's job.
Allowing consumers to buy power directly from retailers such as Green Mountain Energy or Enron Corp. was one of the key elements of the failed deregulation system passed in 1996.
Its end will affect customers around the state, including more than 170 school districts that had pooled together to seek a new electricity provider. About 200,000 customers had switched utilities by September.
The PUC voted 3-2 to keep ratepayers from switching from their utilities to other power providers as of Thursday, dropping previous efforts to suspend consumer choice retroactive to July or earlier.
Current direct access customers can remain with their energy providers through the end of their contracts.
After the Legislature enlisted the water department to buy power for the customers of financially ailing Pacific Gas and Electric, Southern California Edison and SDG&E, it ordered the PUC to suspend so-called direct access to prevent customers from leaving the utilities.
To get its billions back, the state plans to issue bonds. It has been told by Wall Street it can expect better rates if it shows it has a guaranteed and expandable incoming flow of money.
Consumer advocates say a suspension also will keep thousands of big businesses from switching providers for cheaper prices and leaving smaller residential customers stuck with the state's power bill.
"What direct access really means is direct access to the pocketbooks of small consumers," Paul Perkovic of San Mateo told the commission.
The commission had called for a retroactive suspension to force businesses to return to utilities and pay their share of the state's mammoth power bill.
The businesses left after learning power contracts the state had cut in the spring likely would have California ratepayers paying more than if they bought power elsewhere.
The PUC on Thursday also approved a 12 percent rate increase for residential customers of San Diego Gas and Electric Co.
---
On the Net:
http://www.cpuc.ca.gov

AP Photo CAGN121
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Judicial panel set up to probe Enron deal

09/21/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

MUMBAI: Negotiations in the multi-billion dollar Enron deal, the consent letters issued by the state authorities, and the power purchase agreement (PPA) signed between the US power company and the Maharashtra State Electricity Board (MSEB) will come under fresh scrutiny by the judicial commission set up by the state government on Wednesday.
The probe panel to be headed by a retired justice of the supreme court will be invested with powers under the commission of inquiry act.
press conference held at Mantralaya after the weekly cabinet meeting on Wednesday. The cabient meeting, it is learnt, witnessed a heated debate as the Nationalist Congress Party was not in favour of the probe and also disputed the appointment of a supreme court judge for the inquiry.
"The committee will check whether the licenses, letters of consent and other clearances given by various authorities for this project were in line with the Electricity (supply) Act, 1948," Mr Deshmukh said adding that the committee has been given six months to finalise its report.
He said the terms of reference of the inquiry committee were broadly the same as demanded by the leaders of the Left Front parties who are supporting the Democratic Front government.
"The committee will probe into the circumstances that led to the renegotiations of the Enron deal. The stand taken by individuals responsible for renegotiating the deal and whether the decision on the second phase of the project was in the interest of the state will also be looked into by the inquiry commission," Mr Deshmukh said.
The second phase of the Enron project was finalised by the erstwhile Shiv Sena-BJP government with the then energy minister Gopinath Munde declaring that the deal was renegotiatiated to ensure adequate supply of power to the state. He claimed that the power tariff was also considerably reduced and announced a mega project of 2,100 MW at Dabhol.
The then chief minister Manohar Joshi and Mr Munde had filed an affidavit in the Bombay high court justifying the renegotiation and the addition of phase-II and LNG terminal as compulsory part of the revised PPA.
Mr Deshmukh said the probe panel will examine the deal in totality and will present its recommendations to the state government in six months time.
The move to constitute a judicial commission was suggested in the voluminous 181-page report of the Madhav Godbole committee appointed by the state government to renegotiate the power tariff with the DPC.
Interestingly, the DPC on Tuesday invoked the central government counter guarantee to the tune of Rs 378 crore as the Maharashtra State Electricity Board (MSEB) had failed to pay up for the power used for the three months from April-June. This is the second such occasion that the DPC has invoked the Union government's counter guarantee.
The Godbole panel had recommended renegotiations with the DPC officials in a bid to reduce the energy tariff. Pointing at the DPC's ``distorted pricing policy'' the Godbole panel had suggested delinking the changes in the rupee-dollar exchange rate so as to bring down the tariff.

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

Terrorist attacks derail resolution of Enron issue
Girish Kuber

09/21/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

LAST Tuesdays terrorist attacks in US seems to have had an unexpected casualty the resolution of the imbroglio sorrounding the Enron-promoted Dabhol power project.
According to highly placed sources in the ruling National Democratic Alliance , Prime Minister Atal Bihari Vajpayee wanted to resolve the Enron impasse before his US tour.
According to the earlier schedule, the PM was to leave for the US on September 25 to attend a United Nations meet.
However, Black Tuesday altered the scenario forcing the PM to cancel his tour.
According to sources, the PM wanted to resolve the issue before his US visit so as to avoid any uncomfortable questions in his meeting with US-based industrialists. Enron would certainly have been a major issue had he gone to the US, he said.
This forced the IDBI-led financial institutions to propose various measures to end the standoff. However the PM had to call off his US tour. As a result, the Maharashtra government yesterday announced a judicial inquiry into the Enron deal.
Interestingly, the Centre does not support the judicial probe, sources indicated. The state governments decision smacks of political vendetta which, we fear, would again mess up the industrial atmosphere, feels the Centre. The state government has been informed about the Centres views on the issue, it is learnt.
The finance and the legal departments of the state government had also cautioned the political leadership about the judicial inquiry. We already have initiated a series of actions including legal against Enron. There was no need to open one more front in this battle, a senior official from the state government said.
Centre government sources say that the proposed probe will be nothing but a political tool. However, the feeling amongst some elements of the state government is that the judicial probe will unearth the corruption part of the deal, and once that is proved, the power purchase agreement (PPA) between Enron and MSEB can be declared null and void. As a result, the state will not have to pay any damages.

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

COMPANIES & FINANCE INTERNATIONAL - PG&E files plans for restructuring.
By JULIE EARLE.

09/21/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Pacific Gas & Electric Co, which is operating under bankruptcy protection, yesterday said it had filed a significant restructuring plan that will pay its creditors in full and avoid rate increases for customers.
PG&E Corp and its utility PG&E jointly filed a plan of reorganisation in the US Bankruptcy Court yesterday. The companies said the official creditors' committee supports the plan.
Under the plan, Pacific Gas and Electric will be spun off from PG&E Corp, creating two separate companies. Pacific Gas & Electric Co shares will be distributed to PG&E shareholders.
PG&E filed for Chapter 11 protection with $9bn in losses in April. It has about 30,000 creditors, including power generation companies and banks. The energy traders Enron, Dynergy and Reliant are among these.
"This plan will allow Pacific Gas & Electric to move out of Chapter 11 as a financially strong business positioned to continue safe, reliable and responsible delivery of gas and electricity to its customers, pay all claims in full and without asking for a rate increase or a state bailout," said Robert Glynn, PG&E Corp president. He expected the restructuring process to be completed by the end of 2002.
The reorganised Pacific Gas & Electric will continue to own and operate existing retail electricity and natural gas distribution systems. The electricity generation, transmission and natural gas transmission operations under Pacific Gas & Electric will be part of PG&E.
Mr Glynn said he hoped the shake-up would not lead to job losses.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

COMPANIES & FINANCE INTERNATIONAL - Attacks spark surge in oil transport costs.
By ADRIENNE ROBERTS.

09/21/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Crude prices may have slipped, but the price of transporting oil has soared in the wake of last week's terrorist attacks on the US.
Last Monday, it cost $7.65 a tonne to ship a standard cargo of 250,000 tonnes of crude oil from the Arabian Gulf to Japan. By yesterday, it cost 34 per cent more at $10.28 a tonne, adding $657,500 to a freight bill.
To charter a ship would have cost about $27,000 a day last Monday. Owners are now charging $42,000.
Even on the North Sea route, James Tweed at Global Freight Forwards in London points out that the cost of moving half a million barrels of crude oil was $430,000 yesterday, compared with $315,000 last Tuesday.
Last week's attacks, and the uncertainty they created about US military retaliation, put pressure on an already rising market.
The events triggered a rush for very large crude carriers (VLCCs) with charterers booking tankers well into the future to ensure that they can move oil from the Arabian Gulf if there is conflict in the region.
Uncertainty about insurance costs has also put pressure on the market. "Tanker owners expect war risk insurance to go up, so they want to try to write that into their freight rates as quickly as possible," said Mr Tweed. "I think rates will start to slip after this initial spike, but they're going to take time to come down."
Last week's attacks have also pushed up ship-owners' costs. The price of bunker oil for VLCCs on the Arabian Gulf-Japan route has increased from about $148 a tonne to $158 a tonne since last Monday.
Prices were already on the increase following consolidation among shipowners, some of whom have formed a tanker pool, removing some ships from the market in order to support prices. In mid-August, freight rates on the Arabian Gulf-Japan route were only about $5.20 a tonne.
"Short-term, there's been a spike. Long-term, we think prices will decline because of the volume of ships being delivered," said John Banaszkiewicz at SSY Freight Futures. There are 43 VLCCs on order next year and a further 31 due for delivery in 2003.
Meanwhile, he says, owners can pass the costs of war insurance on to clients, "but there's still the psychology of being in that area when there's a potential war risk. Owners don't want their ships delayed in a port for ages or hit by a missile".
Scott Moncrieff, head of Enron's global tanker freight group, said: "There's a lot of hype at the moment. A lot of owners are sitting on the fence waiting to see how much extra war risk insurance will be required."
Lloyd's List, the maritime publication, reports that tanker managers have received quotes of as much as 1 per cent of the insured value of the ship for loadings in some parts of the Gulf.
Experts believe that freight prices will find support for as long as uncertainty persists about US retaliation for the attacks.
"Whatever the scale or location of the US response, I think freight will probably strengthen again," said Mr Moncrieff.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

Pacific Gas & Electric's Bankruptcy Plan Would Split Utility Into Two Firms

09/21/2001
KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World Reporter (TM)

PG&E filed a plan Thursday to pay off $13.2 billion in debt that it says won't raise rates, but outraged consumer advocates and some California officials argue the proposal violates state law and will lead to higher prices.
The blueprint calls for splitting the company in two, allowing it to avoid regulation by the California Public Utilities Commission. It shifts some of its most valuable assets, including transmission lines and hydroelectric plants, over to its non-regulated parent company.
Although company executives described it as "plain vanilla bankruptcy work," the 244-page reorganization plan pushes the envelope on the power of federal bankruptcy law and is sure to come under intense scrutiny in coming months. Company executives said they anticipate the plan would go into effect Jan. 1, 2003.
"We feel great about it," Robert Glynn, PG&E Corp.'s chief executive told analysts in a conference call Thursday.
PG&E filed the plan in U.S. Bankruptcy Court in San Francisco, less than six months after its utility filed bankruptcy.
The creditors committee, the 11-member body representing thousands of creditors in the landmark bankruptcy, said it "fully supports this plan."
Others clearly do not.
"It's a total and complete disaster for consumers," said Assemblyman Fred Keeley, D-Santa Cruz, who is the Assembly's Speaker pro tem. "They have fashioned a way to conduct a regulatory jail break. They are going to completely remove themselves from any regulatory oversight by the state of California."
Keeley said he planned to talk to the state attorney general and the PUC about possible legal challenges to the PG&E plan.
Nettie Hoge, executive director of The Utility Reform Network (TURN) in San Francisco, said she was shocked at how audacious the plan is. Hoge said she suspects that the company filed it in the middle of the terrorism crisis to escape public scrutiny.
"We haven't seen anything this bold and outrageous in the whole history of TURN," Hoge said. "They are plundering all of the beneficial assets of the utility and they're not giving us anything back."
The company's strategy is to split itself in two. It would shift the power plants, in-state gas pipes, gas storage, electricity transmission lines and the vast network of hydroelectric plants of Pacific Gas & Electric Co., the regulated utility, over to PG&E Corp., the non-regulated parent company, for $4.6 billion in cash and some debt.
The stripped-down utility would stick to the retail gas and electric business going forward, although it would keep two power plants and some other equipment. The goal would be two separate publicly traded companies. The plan doesn't call for layoffs.
PG&E proposes that the utility's assets would become three new units under PG&E Corp. One unit would focus on generating power, one would focus on electricity transmission and one on gas transmission. The proposed unregulated units would issue investment-grade bonds to raise the cash to pay off creditors in a combination of cash and tradable IOUs.
The plan requires not only the vote of the entire body of creditors, but the approval of the bankruptcy judge and three federal regulatory agencies, including the Federal Energy Regulatory Commission.
PG&E Corp. Chief Financial Officer Peter Darbee told analysts Thursday that the company had received a "highly confident letter" from the Lehman Brothers investment bank indicating it could get investment-grade ratings for each of the businesses.
The proposed retail company would buy gas on the market, and electricity from the proposed power-generating unit of PG&E Corp. under a 12-year contract at an average of 5 cents a kilowatt hour. Retail customers won't be affected, executives said.
Others are concerned because the plan sidesteps the PUC, which is not being asked to approve it. It also appears to fly in the face of state law. Section 377 of the California Public Utilities Code, signed into law earlier this year, requires utilities to keep hold of their power plants until Jan. 1, 2006.
Gov. Gray Davis said the plan troubled him.
"This plan transfers more power to the federal government, which, during the last 18 months, has by and large treated California ratepayers shabbily," he said. "The California PUC, while far from perfect, has proven to be a more aggressive defender of ratepayers."
Conservationists worry that the utility's hydroelectric network, which includes 140,000 acres of land that is home to old-growth forest, could be plundered if it is transferred to a public company free of public oversight.
"Going forward in the brave new world of Duke and Enron and everyone else profits matter before necessarily these other public benefits," said Stephen Wald, coordinator of the California Hydropower Reform Coalition, representing 22 river-conservation groups.
PG&E argues that federal bankruptcy law trumps state law. The first page of the reorganization plan lists Harvard law professor and constitutional-law heavyweight Laurence Tribe as co-counsel. There's legal precedence for the move, and FERC has previously allowed utilities to divide, company executives told analysts Thursday.
Alan Gover, PG&E Corp.'s bankruptcy counsel, said the company isn't required to consult the PUC because the plan doesn't propose a rate change and the only area that is the PUC's business is rates. He said there are legal precedents for the shift of assets "in the railroad area" and in the case of the 1988 bankruptcy of Public Service Co. of New Hampshire.
FERC Commissioner William Massey confirmed that FERC has approved the transfer of power plants and related equipment to affiliated and unaffiliated companies but said he couldn't comment in this case or whether the state would have any legal claim to challenge such a move.
The PUC said it was prepared to fight the plan.
"We're entitled to say-so under state law," said Commission President Loretta Lynch.
--By Jennifer Bjorhus and Steve Johnson
--Mercury News Staff Writer Michael Bazeley contributed to this report.

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

USA: Enron exec, ex-FERC head cleared in ethics probe.

09/20/2001
Reuters English News Service
(C) Reuters Limited 2001.

WASHINGTON, Sept 20 (Reuters) - The investigative arm of Congress on Thursday said there was no evidence the former chairman of the Federal Energy Regulatory Commission violated ethics regulations by asking Enron Corp.'s chairman for political support.
The General Accounting Office said its investigation found that former FERC Chairman Curtis Hebert did not accept anything of value from Ken Lay and did not discuss any of the giant electricity and natural gas company's cases pending before the agency.
The GAO investigation was requested by Sen. Joseph Lieberman, a Connecticut Democrat and former candidate for vice president.
Soon after taking office in January, Bush named Hebert, a Mississippi Republican, the acting chairman of FERC. However, rumors spread that Bush planned to replace Hebert with Patrick Wood, a Texas utility regulator.
The GAO said it investigated a telephone conversation Hebert had with Lay in February. During that exchange, the acting FERC chairman asked Lay, who is a close friend of Bush, for his endorsement to continue in the job.
"Mr. Lay said that because Mr. Hebert was pressing him for an endorsement, he took the opportunity to ask him about his position on (electricity grid) access, an issue that he and Mr. Hebert did not agree on," the GAO wrote.
"Mr. Lay told us that during the conversation, Mr. Hebert said that FERC was addressing some issues and that Mr. Lay would probably be happy with the direction in which FERC was moving," the GAO said. "This statement conflicts with Mr. Hebert's recollection."
The GAO concluded that no criminal laws or ethics regulations were violated.
Regardless of what was said about open access on the electricity grid, the GAO said no criminal laws or ethics regulations were violated during the conversation.
Lay said he would not support Hebert continuing as chairman and "neither party offered to use his influence for the benefit of the other," the GAO said.
Wood was confirmed by the U.S. Senate as a FERC commissioner on May 25. The White House moved him into the chairman's position last month, after Hebert announced his resignation on Aug. 6 to join utility holding company Entergy Corp. as vice president for governmental and regulatory affairs.

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


Due to the recent flooding in the Houston area, there has been a sharp demand
in the need for rental cars.  Availability in the area has been severely
limited, increasing the burden on effected employees.

Together, Global Strategic Sourcing (GSS), HR-Work Life, Community Relations
and The Travel Agency in the Park, have arranged for a limited number of
vehicles to be reserved at Intercontinental Airport - Houston (IAH) through
Enron,s preferred car rental providers, National Car Rental and Alamo
Rent-a-Car.

To obtain a rental vehicle, please contact The Travel Agency in the Park at
713-860-1189 between 9 a.m. and 6 p.m. and ask for Sheryl Blackman.  The
reserved vehicles are being held outside of the normal reservation system and
will only be available through the Travel Agency in the Park.

The Enron Shuttle will depart for IAH from in front of the Enron Building,
today, June 13 and tomorrow, June14, at 12:00 p.m., 2:00 p.m., and 4:00 p.m.

Enron employees renting a vehicle for personal use may take advantage of
Enron,s negotiated corporate rates, which include Loss/Damage Waiver and
liability insurance.  Specific information on rate plans and coverages can be
found on the intranet at http://travel.enron.com/accomm.html.

If you have questions or need additional assistance, please contact Tracy
Ramsey at 713-646-8311 or Jeff Leath at 713-646-6165.

If you know of any Enron employee who is out of the office and has been
impacted by the flooding, please contact Elyse Kalmans in Enron Community
Relations at 713-853-0565.


Mr. Dasovich,

The call in number to the conference room is 713-345-7386.  Please call if you have any questions, my number is 713-853-0402.

Thank you,
AC Romero


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 08/08/2000
09:39 AM ---------------------------

"Pierre-Philippe Ste-Marie" <stemarie@icubed.com> on 08/03/2000 08:54:22 AM
To: <vkamins@enron.com>
cc:
Subject: MSCF Speaker Series

MSCF SPEAKER SERIES

Dear Mr.  Kaminsky, I have included the web page of the list of confirmed
speakers, most  of them are people I worked with as a fixed income bond
options  trader.?Having you as a speaker would?give a chance to the MSCF
students to gain insight in an area (commodities) and in a field
(research)?in which many are?interested.
OFFICIAL  INVITATION
?
?
?

THE FIRST EVENT IS NEXT FRIDAY!

?

First  Event:

August 11,  2000
10:30 to 12:30 a.m. Fast Lab

David Hartney & Jerry  Hanweck

Vice President, Futures and Option Sales &  Head of North American Futures
and Options Research;?

J. P. Morgan

n.b.
There will be free  caps and a copy of the treasury Bond basis. Priority will
be given to MSCF  students.
?
??
Price and Hedging  Volatility Contracts
September 1, 2000
Dmitry  Pugachevsky
Deutsche Bank

Dmitry Pugachesky is a Director with OTC  Derivatives Research of Deutsche
Bank, where his research is primarily focussed  on credit derivatives. Prior
to joining Deutsche Bank, Dmitry worked for six  years with Global Analytics
Group of Bankers Trust. There he developed models  for emerging markets,
interest rates, and equity derivatives and also  participated in actual
trading and structuring of interest rate options. He  received his PhD in
applied mathematics from Carnegie Mellon University  specializing in control
theory for stochastic processes. He has published  several papers on
modelling in emerging markets and on valuation for passport  options.

A Measurement  Framework for Bank Liquidity Risk
September 15,  2000
Raymond Cote
Vice President, FinRad Inc.  NBC

Raymond Cote is Vice President, Financial Engineering at FinRad Inc.,  a
Montreal-based consulting firm offering financial management solutions that
combine advisory and systems development services to &corporations and
financial institutions.

Abstract:

Liquidity risk, as opposed to  credit and market risks, has received little
attention in professional or  academic journals. We argue that analyzing bank
liquidity risk can be viewed as  a variation of credit risk analysis. After
introducing some concepts and  definitions, the presentation defines a
framework allowing to measure a bank's  structural liquidity risk. It then
shows that combining the framework with  modern credit risk measurement tools
leads to a liquidity risk VAR measure. The  presentation then offers
concluding comments on the integration of the liquidity  risk measurement
framework within enterprise-wide risk management.

Swaps, Spreads and  Bonds
September 29, 2000
Chris  Leonard
Senior Trader

Fixed Income  Arbitrage?
October 27, 2000
Chuck  McHugh
Vice President, NBC-New York

Fund Management and  Market efficiency
November 10, 2000
Andrea  Lee
Portfolio Manager, Freiss Associates

Pierre-Philippe  Ste-Marie
--------------------------------------
http://pstemarie.homestead.com


sorry cant stay

-----Original Message-----
From: Brian Constantine [mailto:brianc@saltgrass.com]
Sent: Tuesday, November 20, 2001 4:10 PM
To: Parks, Joe
Subject: RE: Aggie Song

Joe?that is FUNNY.  Hey, can you stay until Monday to hunt? I'm looking for someone to that b/c I REALLY want to!!!

                                                                                PIGGY

-----Original Message-----
From: Parks, Joe [mailto:Joe.Parks@ENRON.com]
Sent: Monday, November 19, 2001 3:00 PM
To: Chad Knipe (E-mail 2); Chet Fenner (E-mail); Erik Wollam (E-mail); Todd Feder (E-mail); Brian Constantine
Subject: FW: Aggie Song

-----Original Message-----
From: Bass, Eric
Sent: Monday, November 19, 2001 2:56 PM
To: Parks, Joe
Subject: FW: Aggie Song

-----Original Message-----
From: Graf, Dustin KWP [mailto:dgraf@KennedyWilson.com]
Sent: Friday, November 16, 2001 2:51 PM
To: 'Adam Turner'; 'Chad Newton'; 'e_mir@hotmail.com'; 'JeffB utler'; 'Jeff Heineman'; 'Luis Mena'; 'ryan.wisnieski@accenture.com'; 'Ryan_Franks@Dell.com'; 'Tucker, Michael'; 'vetter1975@yahoo.com'
Subject: FW: Aggie Song

Dustin Graf
KENNEDY-WILSON INTERNATIONAL
5929 Balcones Drive, Suite 100
Austin, TX7 8731
512.483.9477 (tel)
512.459.9617 (fax)
dgraf@kennedywilson.com
-----Original Message-----
From: Jeff Boldrick [mailto:jboldrick@deloitte.com]
Sent: Thursday, November 15, 20011 0:31 AM
To: Christopherry Herry (E-mail); Darryl Baucum (E-mail); David Hanna; Jason Guest; Keith Crew; Paul Olcese; Shield (E-mail)
Subject: Aggie Song
I am sure all of yall have this, but for those that don't:
<http://www.plumlees.com/aggie.wav>
Jeff D. Boldrick
Business Development Coordinator - SE Region
Deloitte & Touche LLP
phone: (404) 220-1084
fax: (404) 631-8998
This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law.  If you are not the intended recipient, you should delete this message.  Any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited.
==================================================================?This email was sent to: dgraf@kennedywilson.com? ?EASY UNSUBSCRIBE click here:  <http://Topica.com/u/?aVxiKA.a2jvrI>?Or send an email to: betamu-unsubscribe@Topica.com? ?T O P I C A -- Register now to manage your mail!?<http://www.topica.com/partner/tag02/register>?==================================================================

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Wednesday morning, June 27 (before the CPUC decision to delay the vote on
DA), I gave Marty Sunde this view on exit fees and surcharges for DWR costs
in the California market:

There is a 75% probability that customers who go to direct access and who
used utility service between January and June 2001 will pay an exit fee
calculated as the difference between market price and utility rates during
that period.  The exit fee could also include the going forward costs or
alternatively, those costs could be passed along in the form of a uniform
surcharge.  In other words, with regard to past costs, regulators or
legislators would require DA customers to pay the amount they belive had been
sucked from the state during the January-June crisis period.  I said the
"retroactive ratemaking" argument is a nicety that California could easily
dispense with.

Now that we know the CPUC decision will be delayed, I think the probability
of exit fees for retroactive costs is even higher - either the DA legislation
will pass between now and July 3, or Carl Wood will change the PUC order to
get the "jailbreaking" customers to pay up.


---------------------- Forwarded by Kay Mann/Corp/Enron on 04/20/2001 09:41
AM ---------------------------

"Campbell, Carolyn" <CCampbell@KSLAW.com> on 04/19/2001 10:42:28 PM
To: "'kay.mann@enron.com'" <kay.mann@enron.com>
cc: "Keffer, John" <JKeffer@KSLAW.com>

Subject: FW: ENA Letter

Kay:

See Greg's e-mail below.  Attached is a re-draft of the "no objection to
forms" letter.  I have not yet furnished the re-draft to Greg.  Please
review and advise of any comments.  Thanks.

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

Enclosure:    140366v4

-----Original Message-----
From: Lang, Gregory F. [mailto:gregorylang@paulhastings.com]
Sent: Thursday, April 19, 2001 8:58 PM
To: 'ccampbell@kslaw.com'
Subject: ENA Letter

Carolyn- I discussed the issue re the ENA letter with the lenders and they
can live with the delivery of a letter attaching the forms with the "no
objection" and "no act in furtherance of frustration" language we discussed
with Kay.  We also need to make sure a mechanism in place that ensures that
upon Pegasus' payment of the $800 on the morning of the transaction closing
(post-Turbine K execution and pre-escrow release), ENA will deliver the
membership interest in Salmon and any other deliverable required to allow
the Delta/Pegasus slate of officers to be installed to execute the Salmon
Note and the Salmon Security Agreement. I suppose this can be effected in
that escrow control letter that Freshfields is drafting that ENA and the
lenders will sign.

Do you want to redraft your letter or would you prefer us to mark it up. Let
me know.

Greg

Gregory F. Lang
Paul, Hastings, Janofsky & Walker LLP
1055 Washington Blvd.
Stamford, CT 06901

203.961.7446 (p)
203.674.7646 (direct fax)
203.359.3031 (firm fax)
gregorylang@paulhastings.com <mailto:gregorylang@paulhastings.com>

"paulhastings.com" made the following annotations on 04/19/01 21:57:48
----------------------------------------------------------------------------
--
NEW E-MAIL ADDRESSES AT PAUL, HASTINGS, JANOFSKY & WALKER LLP

We have changed our e-mail address. Our new domain name is paulhastings.com.
In most cases, our address is composed of conventional first name and last
name plus @paulhastings.com. Here are two examples:
janesmith@paulhastings.com and danjones@paulhastings.com. If you have any
questions, please contact us at noc@paulhastings.com.

============================================================================
==
"The information transmitted is intended only for the person or entity to
which it is addressed and may contain confidential and/or privileged
material. Any review, retransmission, dissemination or other use of, or
taking of any action in reliance upon, this information by persons or
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                    Confidentiality Notice
This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure.  If you are not the
named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.

 - ENA Ltr to Delta Lender re Form of Agmt.DOC


Updated - SWAP Group

Mark Taylor, 37459 (Taffy Milligan, 57373)
Bob Bruce, 57780 (Brenda Whitehead, 35438)
Mary Cook, 57732 (Chaundra Woods, 57621)
Angela Davis, 58347 (Chaundra Woods, 57621)
Brent Hendry, 37124 (Becky Tlucek, 37599
Anne Koehler, 33448 (Carolyn George, 33439)
Cheryl Nelson, _______ (Keegan Ferrell, 53317)
Francisco Pinto-Leite, 55181 (Margaret Doucette, 67708)
Frank Sayre, 67383 (Holly Keiser, 66574)
Sara Shackleton, 35620(Kaye Ellis, 35968)
Carol St. Clair (Suzanne Adams, 37340)

Specialists:
Susan Bailey, 34737 (Taffy Milligan, 57373)
Samantha Boyd, 39188 (Keegan Farrell, 53317)
Tana Jones, 33399 (Taffy Milligan, 57373)
Stephanie Panus, 53249 (Becky Spencer, 37599)

SWAP Group Meetings- PLEASE MARK YOUR CALENDAR.
Legal/Credit meeting - every other Tues., 2-3 p.m. in EB38C2, next meeting
November 27.
SWAP Group meeting - 1st & 3rd  Wed., 10-11 a.m. in EB38c1, next meeting
December 6.

COMPANY CODE = 0413
COST CENTER = 105657


---------------------- Forwarded by Ursula Brenner/NA/Enron on 03/16/2001
05:56 PM ---------------------------

Katrina Burton
03/07/2001 05:09 PM
Sent by: Katrina Burton
To: Ursula Brenner/NA/Enron@Enron, Gina Taylor/OTS/Enron
cc:

Subject: Stan Horton's Presentation

Sorry for the delay.

Katrina Burton
5-4498


T;  please print this and any attachments and file under "Japan --
Pre-Employment Testing."  Thanks!

----- Forwarded by Michelle Cash/HOU/ECT on 06/17/2000 08:37 AM -----

	Paul.TYO.Davis@BakerNet.com
	05/15/2000 03:20 AM

		 To: John.Viverito@enron.com, Phillip.-SYDNEY-.Taylor@enron.com,
Paul.TYO.Davis@BakerNet.com
		 cc: Alan.Aronowitz@enron.com, Michelle.Cash@enron.com
		 Subject: RE: Enron and PDI Japan

John

Our team does not know the answer off hand but we will check and come back in
a
couple of days.

Regards

Paul Davis

-----Original Message-----
From: John.Viverito@enron.com [mailto:John.Viverito@enron.com]
Sent: Saturday, May 13, 2000 1:30 AM
To: Phillip.-SYDNEY-.Taylor@enron.com; Paul.TYO.Davis@BakerNet.com
Cc: Alan.Aronowitz@enron.com; Michelle.Cash@enron.com
Subject: Re: Enron and PDI Japan

Phil-

I have raised the issue of testing with Michelle Cash, an ENA labor lawyer,
whose comments and queries are set forth below, for your review.  Please
reply to Michelle's specific queries in paragraph 3 of her e-mail.

Paul-

Following your review of the attached e-mail traffic, please provide us
with the Japanese legal perspective on undertaking these types of
activities.  Also, based on your experience, inform us as to how testing of
this nature may be perceived in the Japanese market.

Best regards,

John
----- Forwarded by John Viverito/Corp/Enron on 05/12/2000 11:13 AM -----

                    Michelle
                    Cash@ECT             To:     John
                                         Viverito/Corp/Enron@ENRON
                    05/12/2000           cc:     Alan Aronowitz/HOU/ECT@ECT
                    10:59 AM             Subject:     Re: Enron and PDI
                                         Japan(Document link: John
                                         Viverito)

John,

Thanks for including me on the distribution of this -- I received your
voice mail and was glad to be in the loop.

In general, we try to avoid any type of personality/psych testing because
of issues relating to the Americans with Disabilities Act, which prohibits
pre-employment medical testing.  It does apply to US citizens working for
Enron in foreign locations (i.e. extraterritorially).

Before we go forward and do this type of testing, it is useful to ascertain
the purpose/goal of the tests.  Why do they want this information?  Is
there another, less intrusive, way to obtain that information (e.g.,
references from prior employers, etc.)?

As noted below, there may be Japanese labor/employment law issues that
address this type of activity as well.  I suggest that we obtain the
information above as well as the opinion requested below and then determine
how to proceed.

Michelle

                    John
                    Viverito@ENRO        To:     Michelle Cash/HOU/ECT@ECT
                    N                    cc:     Alan
                                         Aronowitz/HOU/ECT@ECT
                    05/11/2000           Subject:     Enron and PDI Japan
                    02:44 PM

Michelle-

Pursuant to my voicemail, I am forwarding the attached e-mail traffic for
your consideration.  I am unsure as to the types of testing contemplated,
but want to ensure that such activities are permitted under Enron's policy.

Your comments on the attached agreement would also be appreciated.

Thanks,

John
----- Forwarded by John Viverito/Corp/Enron on 05/11/2000 02:36 PM -----

                    Phillip
                    -SYDNEY-              To:     John Viverito@Enron
                    Taylor@ENRON_D        cc:
                    EVELOPMENT            Subject:     Enron and PDI Japan

                    05/10/2000
                    05:13 PM

Hi John

  Enron will be using PDI in Tokyo for candidate abilities testing prior to
employment.  The outcome of the testing is a confidential report that comes
to me (as HR) and I then send to the participant(s) in the recruitment
decision making process for their confidential consumption.  PDI have
agreed to me doing this via email, however are seeking some reassurance as
to our use of and maintenance of confidentiality of the final product.  Can
you review the attached and come back to me with your thoughts?  I would
also appreciate a local (Japan) opinion on the legal issues associated with
abilities/psych testing prior to employment (I know you guys shy away from
it in the US although it is quite widely accepted "down under").

Thanks and regards

Phil
---------------------- Forwarded by Phillip -SYDNEY-
Taylor/ENRON_DEVELOPMENT on 11/05/2000 09:12 ---------------------------

"Jack, Douglas" <doja@pdi-corp.com> on 10/05/2000 21:09:41

To:   "'Phillip.-SYDNEY-.Taylor@enron.com'" <Phillip.
      -SYDNEY-.Taylor@enron.com>
cc:   "Matsushita, Mayumi" <mama@pdi-corp.com>

Subject:  RE: Enron and PDI Japan

Phil,
With the e-mail transmission (using .pdf files), we'll need you or someone
else in Enron to sign a document similar to the attached letter. Please
read it and let me know if you want to make any changes before we fill in
all the details.

Thanks very much,
Douglas

(See attached file: emailrelease.doc)


i  wish.  leaving to return to SF in a little bit.  should be back in town
around 2 PM.

best,
Jeff

	Joseph Alamo
	06/29/2001 12:04 PM

		 To: 9167184@skytel.com, Jeff Dasovich/NA/Enron
		 cc:
		 Subject: Friday whereabouts?

JOD - still in Monterey??? didya go to the Acquarium or something??


why?  scared to talk over email?

713/420-5807

-----Original Message-----
From: Clint.Dean@enron.com [mailto:Clint.Dean@enron.com]
Sent: Monday, May 21, 2001 10:29 AM
To: Mobley, Rena
Subject: RE:

What's your #?

"Mobley, Rena" <Rena.Mobley@ElPaso.com> on 05/21/2001 10:18:44 AM

To:   "'Clint.Dean@enron.com'" <Clint.Dean@enron.com>
cc:

Subject:  RE:

oh?  and.. how do you feel about it!

-----Original Message-----
From: Clint.Dean@enron.com [mailto:Clint.Dean@enron.com]
Sent: Monday, May 21, 2001 10:06 AM
To: Mobley, Rena
Subject: RE:

Well let me know when you figure it out.  I'm very curious.

"Mobley, Rena" <Rena.Mobley@ElPaso.com> on 05/21/2001 09:53:59 AM

To:   "'Clint.Dean@enron.com'" <Clint.Dean@enron.com>
cc:

Subject:  RE:

OHHHHH!!!!! sorry.

not sure.

-----Original Message-----
From: Clint.Dean@enron.com [mailto:Clint.Dean@enron.com]
Sent: Monday, May 21, 2001 9:30 AM
To: Mobley, Rena
Subject: RE:

Again, wow.  But I meant, how are you feeling about other stuff.

"Mobley, Rena" <Rena.Mobley@ElPaso.com> on 05/21/2001 09:23:24 AM

To:   "'Clint.Dean@enron.com'" <Clint.Dean@enron.com>
cc:

Subject:  RE:

I'm fine - we went and had breakfast and then up until about 6AM
talking!!!!!!  Got up and went home around 10 and then to the Astros game
yesterday - I WAS EXHAUSTED!!!!!!!!  And... how did you feel yesterday?

-----Original Message-----
From: Clint.Dean@enron.com [mailto:Clint.Dean@enron.com]
Sent: Monday, May 21, 2001 9:15 AM
To: Mobley, Rena
Subject: RE:

How are you doing?  I didn't know how you were feeling?

"Mobley, Rena" <Rena.Mobley@ElPaso.com> on 05/21/2001 09:07:03 AM

To:   "'Clint.Dean@enron.com'" <Clint.Dean@enron.com>
cc:

Subject:  RE:

I was wondering if I would hear from you today.  :)

-----Original Message-----
From: Clint.Dean@enron.com [mailto:Clint.Dean@enron.com]
Sent: Monday, May 21, 2001 9:05 AM
To: rena.mobley@elpaso.com
Subject:

Wow.

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sender.
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Corporation are confidential and intended solely for the
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If you have received this email in error please notify the
sender.
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This email and any files transmitted with it from the ElPaso
Corporation are confidential and intended solely for the
use of the individual or entity to whom they are addressed.
If you have received this email in error please notify the
sender.
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This email and any files transmitted with it from the ElPaso
Corporation are confidential and intended solely for the
use of the individual or entity to whom they are addressed.
If you have received this email in error please notify the
sender.
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---------------------- Forwarded by David W Delainey/HOU/ECT on 01/11/2001
11:18 AM ---------------------------
From: Brian Bierbach@ENRON on 01/11/2001 09:14 AM MST
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: End of Year Bonus

--  PLEASE DISREGARD IF YOU RECEIVED AN E-MAIL FROM ME ON 1-9-01 (I was
having trouble with the network in Houston)

Dave,

The attached spreadsheet outlines my recommendations on proposed changes to
the bonus distribution.

In regard to my expectations, I am expecting a significant increase from last
years bonus for the following reason.

It was my strategic decision to:
pursue the asset development business in conjunction with other business
lines (made and received approval to hire the necessary people and execute
the strategy from Kevin Hannon).
close both Wind and Powder projects simultaneously versus only focus on the
Powder River Project (know one thought that both could get done in a 7 week
time frame. At the risk of not being able to get either closed, I went out on
the limb and sent Whitt to negotiate and close Wind River ($72 MM) while I
negotiated and closed Powder River ($75 MM).
it was my idea to create Enron Midstream Services and develop a gathering
business in the Powder. That decision enable us to hedge our firm transport
decision on Fort Union and enabled us to receive $54 million for the sale of
the business
I made the  call and initiated the joint bid between Northern Border and ENA
to acquire a combined 49% interest in Bighorn Gas Gathering.  We sold our
interest to NBP for $22 MM
I initiated the discussions, structured the transaction, negotiated the value
and closed Project 20/20 with NBP.  There was a point in the negotiations
where it was known that I was going with NBP and therefore had to take a
neutral position.  However, by that time, the value had been established and
many contentious issues regarding valuation had been agreed upon
it was my call to preserve value in the transaction and have myself and a
team of 12 others go over to NBP versus have them deduct the cost associated
with a Management Services Agreement from the purchase price.  This saved ENA
over $20 MM in value.  Needless to say, we are now having to deal with
managing a highly aggressive budget and adjust to a very different management
style and compensation plan. I feel personally that ENA was the primary
beneficiary of the higher valuation.  As you can appreciate, I have a
personal issue with this and would like this to be considered for bonus
determination.

In general, I think Project 20/20 was just part of my contribution to ENA
during my tenure in Denver.  In total, this office has generated in excess of
$150 million in earnings with no remaining risk potential.  I have been
fortunate to have hired a solid team that approached many of the projects we
worked on in a team manner.  I think that approach has been successful and I
am hopeful that major contributors on the team will be compensated
appropriately.

I appreciate your consideration Dave!  Please let me know if you have any
questions or thoughts regarding this e-mail.

Brian


The record on Friday showed that 127 employees from Energy Operations had
pledged dollars to the United Way campaign.  Large number, but still
percentage-wise smaller than we would like.  I sent the message below to all
Energy Operations employees on Friday afternoon.  We'll see in a few days if
this helped on contributions.

Text of e:mail message to Energy Operations employees:

Two weeks ago I toured the Depelchin Center, one of the organizations that
receives much of its funding from the United Way.  I was surprised to find
out about the many programs that the center offers to neglected and abused
Houston children and  the caring adults who will open their homes as foster
parents.  I had already completed my electronic pledge card before going to
the center.  Learning about the important programs offered through Depelchin
and meeting four year-old Jessica and ten year-old Steven who were
temporarily housed there before going to foster homes made me very glad to
have made that pledge.

Enron has a terrific matching program that allows all employees to receive
matching funds for dollars that you may choose to give to non-profit
organizations.  Hopefully, many of you take advantage of this to stretch your
charitable giving during the year.  The United Way campaign is the one time
each year that Enron invites employees to partner with the company to make a
difference in the lives of so many in Houston.  Each dollar pledged by an
employee is matched by Enron.

If you have not yet completed your electronic pledge, please consider doing
so as soon as possible.  Our United Way campaign draws to its conclusion next
Wednesday, August 23.  I hope that each one of you will consider making a
pledge.  There is no gift that is too small, because cumulatively all Enron
employees can make a significant positive impact for Houston.  Log on to
http://unitedway.enron.com to complete your pledge card.

Thanks to the many of you who have already completed your electronic
pledge.


Kathryn Corbally (Senior Director currently in Investor Relations) is moving
to Connecticut soon to join her husband.  He has been working up there for
the last six or eight months - he was one of the group that defected from our
weather derivatives team about a year ago.  She hopes to continue to work for
Enron - has been talking with Investor Relations and some other groups that I
can't remember - and to do so either out of her home or in Enron's New York
office.

It struck me that depending upon needs at MG's New York office, that Kathryn
could be someone for you to consider.   She came originally from the London
office - you may or may not find anyone still there that could give you some
feedback on her.  In London, she ran mid and back office - that was in very
early days for EEL, so most of the job was probably accounting.  She came to
Houston and  has done a number of different things.  I think that she is well
organized and control minded.  Understands Enron's business.  Managing a
group of people is probably not her strongest attribute.  I am not sure that
people enjoy working under her.  That could be old news, however.  There are
a number of people here in Houston that could probably give you a read on her
based on very recent experience.  Do you know of her?

Just thought that I would mention her as a potential resource in New York.
Don't know what your short and longer term needs are there.  She would
definitely represent an Enron point of view.  They have two small daughters -
she might be interested in something part time even.  Could mean lower cost
that way.

This idea may not have any merit or you may not have a need around metals.
If you do want to consider this, I will be glad to help identify who you
could go to for some fact finding around her.  Let me know.  --Sally


<<2RR404!.DOC>>

Kay:

An updated closing checklist for the ENA / SEL transaction is attached.

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

Enclosure: 129280v4

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

 - 2RR404!.DOC


Actually, could you call me on my cell phone @ 415.505.6633?

Best,
Jeff


Tanaaaaaa,

Don't forget to send me a check for $185.00 for your plane ticket to Dallas.  You can mail it to me at 13919 Queensbury Lane, Houston, TX.  77079.

You should see my Hollyhock trees - they are in full bloom - my back yard is awash in purple and white.

See yah!!

Holly


Enron has been increasing security at its facilities around the world.  Some of the changes took effect immediately (e.g. additional security personnel) and some are phasing in.  While not all of the changes will be visible, there are a few that will have an impact on everyday activities.  In all the steps we take and recommendations we make, we will be making our facilities and systems more secure and endeavoring to increase your sense of security, while doing our best to minimize disruption to our day-to-day business.

Primary responsibility for Enron Corp. Security resides in our business controls organization.  You can contact this organization through their website (<http://home.enron.com/security>), by phone (713-345-2804), or by email (CorporateSecurity@enron.com <mailto:CorporateSecurity@enron.com>).  John Brindle, Senior Director, Business Controls, leads this organization.  Please feel free to provide John and his team with your comments and questions, or to report security threats.

We have two areas to update you on:  changes in the access procedures for the Enron Center Campus in Houston and changes to our travel advisory.

Access to the Enron Center

Over the next few days, the following access control procedures will be instituted at the Enron Center (and other facilities where practical):

?	As employees swipe their badges at the card readers to enter the Enron Center, a guard will match the photo on the badge to the bearer.

?	Employees and contractors who forget their badges must present a valid picture ID to obtain access to the Enron Center (U.S. driver's license, U.S. or foreign passport, or some form of U.S. federal, state or local identification).

?	Visitors to the Enron Center must produce a valid photo ID when signing in at the lobby reception desk and must completely fill out the visitor card.  Adult visitors without a valid photo ID (U.S. driver's license, U.S. or foreign passport, or some form of U.S. federal, state or local identification) will not be allowed access to the Enron Center.

?	Visitors to Enron facilities must be escorted by an Enron employee or badged contractor at all times.

?	Visitors to the Enron Center will be met in the lobby by an Enron employee or badged contractor, signed into a visitor's log at the lobby reception area by the employee or badged contractor, and escorted to their appointment.  At the conclusion of the appointment, the visitor will be escorted to the lobby by an employee or badged contractor, the visitor badge collected, and the visitor signed out in the log at the plaza reception area by the escorting employee or badged contractor.

?	Employees are also being asked to participate in the security of their workplace by following these guidelines; report suspicious activity to Security (phone 3-6300), do not open secured doors for individuals unknown to you or hold doors open, allowing "tail gating" by others.

These will be the first in a series of new security procedures to be instituted at Enron.  We ask that all employees be patient during congested times in the lobby.  As we proceed and obtain increased guard personnel and equipment, we expect the inconvenience to decrease.  We hope you understand these measures are being instituted for the security of all our employees.

Travel Advisory Update

With the beginning of retaliatory strikes, we have two important recommendations:

?	While the retaliatory strikes are ongoing, corporate security recommends that travel through or to the Middle East be avoided.  We continue to strongly recommend that all travel during this time to Afghanistan, Yemen, Pakistan, Indonesia, Iran, Iraq, Sudan, Somalia, Tajikistan, Turkmenistan, Georgia, and the Kyrgyz Republic be canceled.  In addition, we recommend that planned travel to Egypt, Israel, Gaza/West Bank, Jordan, Lebanon, Saudi Arabia, Syria, and Algeria be very carefully considered.

?	For non-U.S. citizens traveling in the United States, corporate security recommends that you carry documentation.  There have been several recent reports of non-U.S. citizens who reside in the United States being questioned and asked for documentation when boarding U.S. domestic flights. As a result, we suggest that all non-U.S. citizens who currently reside in the United States - and who do not have Permanent Resident Alien status - carry their passport, Form I-94 and Form I-797 at all times.  We would also suggest that Permanent Resident Aliens carry their Permanent Resident (Green) Card as proof of their status as a precautionary measure.  It appears that Immigration Officials may be applying a section of the Immigration and Nationality Act that requires individuals over the age of 18 to carry his/her "registration" documentation with them at all times. This can include a Permanent Resident Card, Form I-94 card, Employment Authorization Card, Border Crossing Card, or a Temporary Resident Card. Immigration Officials have not historically been asking domestic travelers for "registration" documentation, but in light of the heightened security measures and current atmosphere, it would be best to be prepared with all of your documentation proving your current lawful status.

We will keep you apprised of new information and developments on the Corporate Security website and by e-mail, as appropriate.


Please find attached Q3 revision to Regional Office Trading Risk profile.

Naomi Connell
Regional Support Co-ordination


Guess what, i will be on vacation starting next monday for a week.  Maybe we can hook up this weekend?

 -----Original Message-----
From: 	Phillips, Monique
Sent:	Wednesday, June 06, 2001 4:38 PM
To:	Mims, Patrice L.
Subject:	RE:

I have the eye creme and the eye liner.  However, I will be out of the office until Monday.  So I will bring it then.  Also, I will see if I can get the stress free cologne.  I don't have that.

 -----Original Message-----
From: 	Mims, Patrice L.
Sent:	Wednesday, June 06, 2001 1:18 PM
To:	Phillips, Monique
Subject:

Hello,

Tasha told me that you just got back from your trip abroad.  Was is just Fantastic! (smile).  Any brotha's and sistah's over there?  Hope you had a great time.    I would love to see pictures sometime.  I would like to purchase some of that eyeshadow base.  I think it is the triple action cream or something like that.  It has the gold cap to it.  Also, I would like some black eyeliner.  Just call me whenever you have it.  Also, I'd like some of that "Stress Free" cologne from the Private Spa collection.

Just let me know when you have it.

Thanks!


I have not heard back from Mike Olsen on this.  Can you extend this deal for me?

---------------------- Forwarded by Megan Parker/Corp/Enron on 07/20/2001 08:38 AM ---------------------------

	  From:  Megan Parker                           07/03/2001 11:28 AM

To:	Michael Olsen/NA/Enron
cc:

Subject:	El Paso Merchant Deal 637225

Mike:
I need to have deal 637225 extended to include April and May 2001.  The allocations we received from El Paso show that HPLC sold gas to them at meter 6884 for both months.  Let me know if you have any questions.

Thanks,
Megan
x5-7480


Start Date: 12/23/01; HourAhead hour: 8;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001122308.txt


Gentlemen,

Attached are GE's comments which I just received.  They are concerned that we
tried to improve the contract.  Oh well.

I hope to get this resolved today so we can wrap it up early next week.

Talk to you soon,

Kay


Start Date: 3/9/01; HourAhead hour: 23;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001030923.txt


CONGRATULATIONS!!!
PAT JOHNSON is the winner for +The Name This Newsletter Contest,.  It was a
close call. After receiving over 50 great ideas, the PR Dept had a tough time
narrowing the list to the top ten for Mark Frevert,s final decision.  We,d
like to thank everyone who submitted suggestions and a special thanks to Pat
Johnson for sending in the winning name EnTouch.

BUSINESS HIGHLIGHTS

EGM Coal & Emissions
The November and December NYMEX market remains very tight.  Offers in the OTC
market have climbed to the low $40s.  The highest reported trade for December
was reported at $38.50.   The tightness should continue through the first
half of the year  with the Martin County mine still shut down.  The rest of
the year remains strong piggy backing off of the current spot market.

Finally--Life beyond the 150 to 155 range--vintage year 2000 SO2 allowances
broke out of this trading range this week.  The low trade was around $119.50
and the last trade was around $120.50.  The sharp drop in prices was caused
in large part by the news of Dominion Virginia Power settling the New Source
Review lawsuit brought against it by the state of NY and the EPA Continuing
rumors of further NSR related settlements will likely create continued
volatility.  It is as yet unclear what the new price floor will be.

NOx has settled down a bit with last trade 2001 vintage of $675.

Principal Investments
Solo Energy Corporation, an Alameda, California based developer of Wireless
Energy microturbine products to supply superior on-site energy service to
U.S. commercial and light industrial customers, announced that Enron North
America has completed an equity investment in Solo Energy as well as entered
into an alliance agreement.

In exchange for warrants to purchase the Company,s preferred stock, Enron
will assist in obtaining fuel contracts to support the Company,s distributed
generation contracts, including the provision of gas and backup electricity,
and will work with the Company to support its market and gas technology
research.

NEWS FROM THE GLOBALFLASH

EnronCredit.com
On Halloween, Enron Credit.com hit the City of London last Tuesday. As an
original PR stunt, the EnronCredit.com team organized a Grim Reaper with two
female vampires to distribute candy carrying the message, "Corporate
bankruptcies are on the increase and could be your worst nightmare. You can
protect your company and sleep well at night". Locations for the distribution
of 5,000 packs of candy were Bank, Broadgate and Canary Wharf. The general
feedback and reaction of people was positive. Photos of the event will be
available on the EnronCredit.com site.

Enron Japan Corp.
Enron is powering ahead in Japan following the official launch of Enron Japan
Corp. in Tokyo last week.  In keeping with Japanese tradition, Ken Lay, Joe
Hirl, Ken Rice and Mike McConnell donned "happi coats" - a sort of short
kimono - and used ceremonial hammers to break the lid of a wooden cask of
sake in front of an audience of 350 drawn from major companies and
government.  Enron has made an immediate impact already by offering eligible
consumers 3-5 year contracts with immediate savings of up to 10 percent in
the first year.   View the Japan website at www.enron.co.jp  [No worries,
it's in Japanese and English ...Ed]

There are 35 Enron employees in the Tokyo office including an Enron Metals
team.  EBS will be staffing up there over the coming months.

Nordic energy agreement with UPM-Kymmene
Enron Nordic Energy and UPM-Kymmene Corp. have signed a two-year portfolio
management agreement covering UPM Kymmene's Nordic power portfolio. The
Mid-Market desk in the Oslo office will assist UPM in optimising its
portfolio of approximately 14 TWh. energydesk.com will provide UPM with the
risk management system used in the process. In addition, the agreement opens
the door for Enron Energy Services to explore a variety of opportunities
within the company. The Nordic agreement is the first step towards a broader
scope of co-operation with UPM on a European and Global basis. The total
contract value is estimated to be $375 million.

UPM-Kymmene's nominal electricity resources total about 3000 MW, of which
2500 MW in Finland and about 500 MW in other countries. The group's power
procurement totals approximately 18 TWh per year, of which about 14 TWh in
Finland. Around 15 TWh/a is consumed by the group's own mills and the rest is
sold to the market.

http://www.upm-kymmene.com
http://www.upm-kymmene.com/upm/energy/energybuild.html

The deal was led by Sami Tenngren - Nordic Mid-Market, and was supported by
Magnus Groth - EES, Jukka Hormaluoma - energydesk.com, and Martin Rosell -
Legal.

Congratulations on a job well done to all those who worked so hard to put
this transaction into place........Thor Lien.

Australia
Despite heavy flooding in NSW, the weather is looking up for Enron
Australia.  Last week, the Sydney Office launched online Hong Kong weather
derivatives  and the Sydney weather node traded on EnronOnline in the US time
zone.  With this precedent, we hope to support the takeoff of global weather
on EnronOnline.

The Coal Group in Sydney has suddenly become very popular. There is no doubt
that a recent sale to AES for the plant at Barbers Point, Hawaii is the real
reason.  Coal purchases during year 2000 have been concluded with most major
producers in Indonesia and Australia.  We will soon be loading our first
shipment from China. Deliveries to Nippon Steel in Japan are underway. Also,
a shipment to a large power utility in Japan will take place in early 2001.

Off-shore wind plans
Enron has entered into agreement to purchase the development assets of a 30
MW offshore wind project in the UK.  The Harwich project, situated in
Gunfleet Sands approximately eight kilometres offshore in the North Thames
Estuary is believed to represent one of the first serious investments in the
development of offshore wind energy in the UK.

ENRONONLINE STATISTICS

Below are the latest figures for EnronOnline as of November 27, 2000.

* Total Life to Date Transactions> 464,000
* Life to Date Notional Value of Transactions > $263 billion

NUGGETS & NOTES

"How does your earnings target look for the quarter?" ) Brent Price,
VP/Operations & Chief Accounting Officer for EGM

"Always price the illiquidity risk premium appropriately!" ) Doug Friedman,
Director of Financial Petrochemicals and Plastics

What people say to Julie Gomez,VP/Upstream Services-ENA - "I heard your laugh
clear across the floor!!!"

IN THE NEWS

"The uncertainty [of the presidential election] does not influence business.
It is a relatively short-term distraction. Our business model has not changed
and will not change as a result of the election because we've worked very
well with both the Clinton/Gore administration in Washington and the Bush
administration in Texas."
-- Mark Palmer, vice president of Enron Corporate Communications, Associated
Press

"The name of Enron may be unfamiliar in Japan, but it should not stay that
way for long.........Joseph Hirl, president of Enron Japan, says: "We don't
go in and try to destroy markets - we go in and create them."  Some of the
company's potential customers and business partners may still need to be
persuaded of that, but Enron has a large stock of experience to reassure
them".---Financial Times

WELCOME
New Hires ENA/EIM/EGM
ENA ) Lydia Atwood-Minter, Kenneth Thibodeaux, Lacye Trevino-Brymer
EGM )Humaira Badat, Daiquiri Lucas

Transfers to ENA/EIM/EGM
ENA ) Trinh Abrell, Terri Austin, Guillermo Balmaceda, Eric Booth, Robert
Chmielewski, Joyce Dorsey, Sharon Gonzales, Laura Gutierrez, Scott Healy,
Dawn Kenne, Robert Kraszewski, Sandra Morris, David Porter, Daniel Quezada,
Henry Quigley, Steven Rose, Felecia Russell, Mary Symes, Dan Williams,
Rosalinda Zermeno
EGM ) Braedi Craig, Scott Baukney, Samantha Davidson, David Loosley, John
Massey, Diana Monaghan, Adam Siegel, Ioannis Tzamouranis

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


----- Forwarded by Jeff Dasovich/NA/Enron on 06/22/2001 07:10 PM -----

	Tom Ross <tross@mcnallytemple.com>
	06/22/2001 05:02 PM

		 To: Jean Munoz <jmunoz@mcnallytemple.com>, "'Andy Brown (E-mail)'"
<ABB@eslawfirm.com>, "'B Brown Andy (E-mail)'" <andybrwn@earthlink.net>,
"'Baker Carolyn (E-mail)'" <cabaker@duke-energy.com>, "'Bob Escalante
(E-mail)'" <rescalante@riobravo-gm.com>, "'Bob Weisenmiller (E-mail)'"
<rbw@mrwassoc.com>, "'Curtis Kebler (E-mail)'"
<curtis_l_kebler@reliantenergy.com>, "Dean. Nistetter (E-mail)"
<Dean.Nistetter@dynegy.com>, "'Douglas Kerner (E-mail)'" <DKK@eslawfirm.com>,
"'Greg Blue (E-mail)'" <gtbl@dynegy.com>, "'Jan Smutny-Jones (E-mail)'"
<smutny@iepa.com>, "'Jeff Dasovich (E-mail)'" <Jeff.Dasovich@enron.com>,
"'Joe Ronan (E-mail)'" <joer@calpine.com>, "'John Larrea (E-mail)'"
<john.g.larrea@williams.com>, "'Julee Malinowski-Ball (E-mail)'"
<jmball@ns.net>, "'Kassandra Gough (E-mail)'" <kgough@calpine.com>, "'kent
Palmerton (E-mail)'" <kent.palmerton@williams.com>, "'Lynn Lednicky
(E-mail)'" <lale@dynegy.com>, dpeters@mccabeandcompany.net, "'Marty Wilson
(E-mail)'" <mwilson@pstrategies.com>, "'McNally Ray (E-mail)'"
<rmcnally@mcnallytemple.com>, "''Nam Nguyen' (E-mail)'"
<nam.nguyen@powersrc.com>, "'Norton Kelli (E-mail)'"
<knorton@mcnallytemple.com>, "'Paula Hall-Collins (E-mail)'"
<paula.hall-collins@williams.com>, "'Pigott Jack (E-mail)'"
<jackp@calpine.com>, "'Richard Hyde (E-mail)'" <rwhyde@duke-energy.com>,
"'Roger Pelote (E-mail)'" <roger.pelote@williams.com>, "'Stephanie-Newell
(E-mail)'" <stephanie-newell@reliantenergy.com>, "'Sue Mara (E-mail)'"
<smara@enron.com>, "Tom Williams (E-mail)" <tcwillia@duke-energy.com>, "'Alex
Sugaoka (E-mail)'" <alex.sugaoka@uaecorp.com>, "'Bill Carlson (E-mail)'"
<william_carlson@wastemanagement.com>, "'Bill Woods (E-mail)'"
<billw@calpine.com>, "'Bob Ellery (E-mail)'" <bellery@spi-ind.com>, "'Bob
Gates (E-mail)'" <bob.gates@enron.com>, "'Cody Carter (E-mail)'"
<cody.carter@williams.com>, "'Curt Hatton (E-mail)'"
<Curt.Hatton@gen.pge.com>, "'David Parquet'" <david.parquet@enron.com>,
"'Dean Gosselin (E-mail)'" <dean_gosselin@fpl.com>, "'Doug Fernley (E-mail)'"
<fernley.doug@epenergy.com>, "'Duane Nelsen (E-mail)'"
<dnelsen@gwfpower.com>, "'Ed Tomeo (E-mail)'" <ed.tomeo@uaecorp.com>,
"'Eileen Koch (E-mail)'" <eileenk@calpine.com>, "'Eric Eisenman (E-mail)'"
<eric.eisenman@gen.pge.com>, "'Frank DeRosa (E-mail)'"
<frank.derosa@gen.pge.com>, "Frazier Blaylock (E-mail)"
<frazier_blaylock@ogden-energy.com>, "'Hap Boyd (E-mail)'"
<Hap_Boyd@enron.com>, "'Hawks Jack (E-mail)'" <jack.hawks@gen.pge.com>, "'Jim
Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe Greco (E-mail)'"
<jgreco@caithnessenergy.com>, "'Jonathan Weisgall (E-mail)'"
<jweisgall@aol.com>, "'Kate Castillo (E-mail)'" <CCastillo@riobravo-gm.com>,
"'Kelly Lloyd (E-mail)'" <kellyl@enxco.com>, "'Ken Hoffman (E-mail)'"
<khoffman@caithnessenergy.com>, "'Kent Fickett (E-mail)'"
<kfickett@usgen.com>, "'Lynn Lednicky (E-mail)'"
<lynn.a.lednicky@dynegy.com>, "'Marty McFadden (E-mail)'"
<marty_mcfadden@ogden-energy.com>, "'Paula Soos'"
<paula_soos@ogden-energy.com>, "'Randy Hickok (E-mail)'"
<rjhickok@duke-energy.com>, "Rick S. Koebbe (E-mail)"
<rskoebbe@powerworksinc.com>, "'Rob Lamkin (E-mail)'"
<rllamkin@seiworldwide.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>,
"'Steve Iliff'" <siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'"
<steve_ponder@fpl.com>, "'Tony Wetzel (E-mail)'" <twetzel@thermoecotek.com>,
"'William Hall (E-mail)'" <wfhall2@duke-energy.com>,
trusso@mcnallytemple.com, sadlersa@earthlink.net, mstultz@epsa.org,
rtemple@mcnallytemple.com, tracy.fairchild@edelman.com,
megan.beiser@edelman.com, deborah.fiorito@dynegy.com, lchurch@epsa.org, Katie
Kaplan <kaplan@iepa.com>, tcwillia@duke-energy.com, rwhyde@duke-energy.com,
tmcmorrow@manatt.com, Suzy.L.Rodriguez@dynegy.com, ppitts@wiredworld1.com,
mnobili@cal-lobby.com, sscsus@aol.com, kvellandi@pstrategies.com,
kelly@hnks.com, kirk@cea.com, jbkinney@duke-energy.com
		 cc:
		 Subject: Smutny Letter to Senator Dunn

June 22, 2001

The Honorable Joseph Dunn
Chair, Senate Select Committee
California State Senate
Room 2080
California State Capitol
Sacramento, CA 95814

Dear Senator Dunn:

Earlier this year, you met individually with IEP and various other parties to
explain the purpose of the Senate Select Committee?s hearing and the process
under which they were to be conducted.  You made it very clear that you were
planning to have fact-finding hearings based upon fundamental fairness and
due process.  You made a further commitment that there would be no
surprises.  Prior to today, the hearings have been conducted consistent with
that representation.

Unfortunately, today it appears that the Committee has set a new course that
radically departs from these previous commitments.  Today, the Committee is
hearing testimony from several surprise witnesses.  These witnesses are
former employees of San Diego Gas and Electric (SDG&E) under contract with
Duke Energy for an interim period during which Duke Energy operated the
facilities in San Diego.   It is our understanding that these former contract
employees are alleging that the company failed to properly maintain these
facilities, and they are alleging that Duke Energy cycled these facilities
differently than the former owner, SDG&E.  It is also our understanding that
Duke Energy will not be afforded the opportunity to contemporaneously
challenge these allegations and/or provide an explanation as to the
operational behavior of the facilities.  In short, the hearings are being
reduced to a media event, giving credence to the unsustainable allegations of
disgruntled ex-employees.

Respectfully, it would appear that the Committee has wandered far afield of
its stated goals.  These hearings have the potential of identifying what went
wrong with California?s energy policy and how to fix it.  However, this will
only occur if this inquiry is based on informal facts and complete
information, not innuendo and unsubstantiated allegations.  It is the pursuit
of facts, not headlines, which will solve California?s energy crisis.  These
facts will be revealed only in a fair process, where allegations made are
subject to contemporaneous response.

It is our hope that today?s process is an aberration, and not a departure
from your commitments.  The Committee is at a crossroads.  It can choose to
engage in fact-finding and analysis, or it can be reduced to a witch-hunt in
pursuit of headlines.  For the benefit of all Californian?s, the Committee
should focus on fact-finding and analysis.

Sincerely,

Jan Smutny-Jones
Executive Director


This morning I raised a concern regarding TW's sale of excess fuel at
downstream points.  Here's the problem:  the tariff requires shippers to
tender fuel to us at their receipt points.  With rare exceptions, those
receipt points are not at the Cal. border.  Order 636 mandates that pipelines
unbundle transportation from storage.  It also requires that pipelines that
make gas sales do so at the furthest upstream point on their pipeline.  That
latter requirement means that if a pipe buys gas at point "x", it should
resell the gas at point "x" and not haul the gas to point "y" and then sell
it there as a delivered (i.e., bundled) product.  My concern this morning was
that our receipt of fuel gas in the San Juan or Permian and shipment of that
gas to the Cal. border for sale arguably violates the unbundling requirement
(because the Cal. border sale is a bundled combination of the sale and the
transportation of the gas to the downstream location) or the "furthest
upstream point" requirement or both.  Susan and my recollection was that when
ECS wanted to receive the Gallup fuel deliveries at  a point other than
Permian pool, we made them sign a transport contract to move the gas to where
they wanted it.  I haven't confirmed that recollection but I am recalling
that we told Courtney that we couldn't just move our fuel gas around
whereever we wanted it--we needed someone to pay us to transport it.

Irrespective of what we did with ECS, I think the following is the correct
way to look at this situation:  We receive fuel at the shippers' receipt
points.  Once we receive it, however, it is no longer "fuel."  It becomes
line pack until it is burned.   Line pack moves around based on a lot of
reasons, including shipper imbalances, etc.  It also, obviously, has to move
to the compressors where it is burned as fuel.   It is our job to  manage
line pack, and that means we buy line pack at locations where we are short,
and sell it at locations where we are long.  If we end up long at the Cal.
border from time to time, we should sell excess line pack to get line pack
back to optimal levels.  I wouldn't want to get into a pattern where we are
consistently buying line pack in the San Juan and Permian and selling line
pack at the Cal. border, but  thats not what we are talking about here.  I
can't think of anything in the tariff or otherwise that is inconsistent with
this interpretation of our authority as operator of the pipeline.  MKM--OK
with you?  DF


Hi Vanessa:

You will need to fill out a "Churn Request" and forward it to the "Move Team"
they will take care of everything that you put on the form.  I am attaching a
copy
of the form for your information.  The receiving department is responsible
for
doing this.  He will need boxes to pack his belongings (ask him how many
he needs - he will have to do the packing).  The only item that moves other
than his personal items, is his telephone.  The computer, chair, etc.
belongs to
the Research Group.

If you have any questions, or need help, please let me know.

Thanks!

Vanessa Carranza@ENRON
06/08/2000 04:47 PM
To: Shirley Crenshaw/HOU/ECT@ECT
cc:
Subject: Moving Roy Ibasco

Shirley-

I need to have Roy Ibasco's things moved to EB2930C from EB1948 and have it
charged to Co/RC 413-1708.  Please give me a call if you have any questions!

Thanks-
Vanessa C
3-5030


yeeeeeeeeeeeeesssssssssssssss, it does.  Thank you very much!

	Enron North America Corp.

	From:  Chris Germany @ ECT                           05/15/2001 11:48 AM

To: Darla Saucier/NA/Enron@ENRON
cc:

Subject: Re: 10/2000 Production - New Power

Looky at what I just opened in my email.  I had some stuff tucked away in a
different directory and I'm going thru it now.  Does this still need to be
addressed?

Darla Saucier@ENRON
03/01/2001 05:14 PM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: 10/2000 Production - New Power

Hey Chris,

Does this amount look correct to you??  Do we actually owe New Power $5MM ?
they haven't mentioned it to me, but it's showing up as a balance due to
them.  could you please verify ASAP?

Thanks!


Jim et al:
Based on our experience with PG&E's refusal to accept the data from a
customer-owned meter for calculating the cogen payments (ie. SJSU), we need
to defer the Santa Cruz meter installation.
I will need to get a 'read' from PG&E before we waste any of the UCSC's
money.
I have asked Jeff Dasovich to include this issue in his Rule 21 and 22
arguments before the CPUC. More fireworks to follow. Dirk

-----Original Message-----
From: Wright, James
Sent: Thursday, October 21, 1999 7:59 PM
To: Huddleson,Diann
Cc: Pollard, Geoff; vanUlden, Dirk; O'Jones, Deborah; Smoot,Robert; Rank,
Stephan; Bosley,Annamaria; Messina,Jeff
Subject: RE: UC/CSU PG&E meter data

Diann,

This issue has been around awhile.  It is an important one to resolve.  You
broke the logjam.  Thanks.

I propose the following tasks to get started:

? Validate the list of meters below to insure that it is complete -  Action:
OMD
? Identify the full life cycle cost impact per campus and account - Action:
OMD
? Send letters to each campus to offer the meter change, identify the value
and benefits of the change, clarify schedule and cost impacts and request
confirmation of their willingness to change out the meters - Action: Draft by
OMD, review and distribution by AM
? Investigate the installation of transdata meters with or without phone
lines to replace the Santa Cruz cogen meters - Action: CSC

Also, I would like to investigate the possibility of extending the
EnergySense "no cost" option beyond 12/99.  Its value is just beginning to be
utilized because of the many missteps in the beginning.  I would recommend a
year extension.  If approved, this should be included in the letter to the
customer.

Let's talk while I am in Houston next week.

Jim

-----Original Message-----
From: Huddleson,Diann
Sent: Thursday, October 21, 1999 10:03 AM
To: Wright, James
Cc: Pollard, Geoff; vanUlden, Dirk; O'Jones, Deborah; Smoot,Robert;
Bosley,Annamaria
Subject: Re: UC/CSU PG&E meter data

Jim, I suppose the first thing we need to do is make sure the campuses are
amenable to this.  As I recall, the reason we used existing IDR meters was to
mitigate the cost to the campuses.   The only instance where we were not able
to change PGE's meters was at Santa Cruz (cogen), but we may be able to come
up with a different solution with Steve Krein and Ben Garcia's input.

How should we proceed?
---------------------- Forwarded by Diann Huddleson/HOU/EES on 10/21/99 11:54
AM ---------------------------

 << OLE Object: Picture (Device Independent Bitmap) >>  Enron Energy
Services  From:  Robert J Smoot                           10/21/99 10:03 AM
Phone No: 713-853-7946

To: Diann Huddleson/HOU/EES@EES
cc: Robert Kettyle/HOU/EES@EES, Clifford R Pelchat/HOU/EES@EES, Annamaria
Bosley/HOU/EES@EES, James Wright/Western Region/The Bentley Company@Exchange
Subject: Re: UC/CSU PG&E meter data   << File: Notes Link >>

Diann,

Your point is well taken.  We need to get the ball rolling and investigate
the possibility of replacing these IDR meters with Enron meters.  The
following list of 16 meters are the ones that pose the problems.  For about
$430/meter, we could eliminate this issue for $6880.  This amount should be
charged back against the deal, but it really is a small price to pay to
resolve this menacing issue.  Please initialize the dialogue necessary to
achieve this goal so we can get to some level of customer satisfaction
involving this problem.  Your efforts are appreciated and if you need any
further information, please contact me.

Thanks,
Robert

683T22    Univ. of Calif. - UC Berkeley
2623R6    1161 5th Street - UC Berkeley
None     6701 San Pablo Ave. (UDC Account # YJRN545502) - UC Berkeley
2621R2    Richmond Field Station - UC Berkeley
649T34    MCB - UCSF
2007R6    UCSF CUP 2007R6 - UCSF
6702R9    25 Medical Ctr. Way - UCSF
2008R9    UCSF CUP 2008R6 - UCSF
2025R7    Concord Campus - CSU Hayward
2R0550    3601 19th Avenue - CSU San Fransisco
VT747A    Cogen Out 1 - UCSC
VT632C    Cogen Out 2 - UCSC
3199T8    Main Service - CSU San Jose
2022R7    Main Service - Cal Poly SLO
3144T7    Main Service - MCRC Stockton
20191R1    9002 Stockdale Hwy. - CSU Bakersfield

 << OLE Object: Picture (Device Independent Bitmap) >>
Diann Huddleson
10/21/99 08:37 AM
To: Robert J Smoot/HOU/EES@EES
cc: James Wright/Western Region/The Bentley Company@Exchange, Robert
Kettyle/HOU/EES@EES, Annamaria Bosley/HOU/EES@EES, Gay Mayeux/HOU/EES@EES
Subject: Re: UC/CSU PG&E meter data   << File: Notes Link >>

Robert, would our problems be solved if we put our own meters in?  Jim, do
you know of any reason we can't replace these IDR meters with Enron meters?
I know that Tom C. and I had discussed that last spring, but I never got a
definite go-ahead to do it.

It may be the best solution.

 << OLE Object: Picture (Device Independent Bitmap) >>  Enron Energy
Services  From:  Robert J Smoot                           10/21/99 08:04 AM
Phone No: 713-853-7946

To: adeller2@csc.com @ ENRON, ppriest2@csc.com @ ENRON
cc: Robert Kettyle/HOU/EES@EES, Clifford R Pelchat/HOU/EES@EES,
rcoates4@csc.com, Diann Huddleson/HOU/EES@EES, Mark Finkle/Omnicomp@EES,
Narayan Moni/HOU/EES@EES
Subject: UC/CSU PG&E meter data

Art and Pat,

We are really under the gun to deliver on this issue involving the PG&E
meters located throughout the UC/CSU campuses.  We (EEIS) have tried to
assure those interested parties repeatedly that we will deliver on this
ability to display PG&E data via EnergySense and have not came close to
satisfying this commitment.  This has been an ongoing ulcer, so to speak,
since I came into the loop late last March.  I have been told many reasons
why we can't display the data and some possible solutions to make this
evolution happen.  But up to now, no solid answers or solutions have been
provided.

As you may know, we are providing this service at no charge to the UC/CSU
campuses until 12-31-99.  At that time, EEIS would like to present this
service to the campuses in a revenue generating contract.  But unless we get
this last sticking point involving the PG&E meters resolved, there are some
vocal critics within the UC/CSU structure that will most likely be opposed to
the continued usage of the EnergySense product, especially when it would be
on a pay-for basis from 12-31-99 and beyond.  They (the campuses) view this
problem as a simple fix.  In fact, one campus's most important meters to view
are PG&E meters which currently can't be displayed.  This particular location
has four non-accessible meters via EnergySense and are a result of this PG&E
problem.

This is becoming a serious customer satisfaction issue that needs to be moved
up on the priority list and deserves a positive resolution.  We can display
some of the interval data involving PG&E meters, but not for all of the
meters.  I have previously forwarded a list of the problem meters to Pat
Priestley for action.  She did respond that she was working on a resolution,
but we now must get a quicker remedy in place.  Your cooperation and
assistance involving this matter will be appreciated.  Should you have any
questions, please contact me.  I will be looking forward to receiving a
response on how to solve this issue in a timely manner.  I would like to
communicate the resolution to the involved parties by the first of next week.

Thanks,
Robert


Good thing we decided to wire on Friday.

Thanks for the update.

Tammy

	Enron North America Corp.

	From:  Dana Davis                           02/07/2001 02:42 PM

To: Tammy Barta/HOU/ECT@ECT
cc:
Subject: Crescendo Wire

FYI:

As far as I know Rick Carson still has this wire.  If he doesn't call my by
the end of the day I will call him 1st thing tomorrow morning.

Thanks, Dana.


I'm putting the freezing one on my webpage with a few happy hour photo's as
soon as I get off my lazy butt.


In response to the tragic events of September 11th and due to popular demand, eSource is offering a valuable Country Risk Analysis for those monitoring global implications and risk due to recent developments in Afghanistan, Pakistan, and India.

This report, prepared by the Economist Intelligence Unit (EIU) and available through eSource at no charge, contains the following information:

?          Political Background
?          Country Infrastructure
?          Economic Policy and Sectors
?          Trade

To request a copy of this report logon to http://esource.enron.com/RequestSearch.asp <http://esource.enron.com/RequestSearch.asp>

Submit your request online by entering applicable employee data in the required fields and referencing "EIU Pakistan/Afghanistan" or "EIU India" in the "Describe Request" box.

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If you are not interested in receiving these messages in the future, please let us know, and we will kindly adjust our mailing list.


Here's the H-2 Training insert in pdf format.  I don't have a word file.
Kay, please copy for insert into the execution copy of the Exhibits.

Thanks,

Lee

-----Original Message-----
From: Thompson, Peter J. [mailto:peterthompson@akllp.com]
Sent: Thursday, December 21, 2000 3:45 PM
To: Kay Mann (E-mail)
Cc: Kent. Shoemaker (E-mail); Lee. Johnson (E-mail); Brett. R. Wiggs
(E-mail); John. R. Ayres (E-mail); Tim Oxley (E-mail); Ben. Jacoby
(E-mail); Roseann Engeldorf (E-mail); Cheryl. Lipshutz (E-mail); John.
R. Ayres (E-mail); Pipitone, Paul; Cobb, Chris; Taylor, Rob;
michael.storm@ss.ps.ge.com
Subject: Enron South America FacilityAgreement and Exhibits

Attached please find the latest version of the Enron South America
Facility Agreement and Exhibits, as well as a blackline showing changes
from the last version circulated.  The Agreement has only been changed
to show tomorrow's date. Exhibit B-1 has been cleaned up and
placeholders put in for Exhibit H-2.  I will forward an execution copy
to Kay Mann tonight which will incorporate the agreement and exhibits
into one document and will have the copy of Exhibit H-2 attached.

 - Training LM60001.pdf


Linda, et al,

Can you adjust the Daily notices to indicate the periods covered by the Daily Bill Amount and the Standstill Financial Assurance Amounts.

Thanks

Wade

-----Original Message-----
From: McDonough, Linda [mailto:lmcdonough@iso-ne.com]
Sent: Mon 12/31/2001 11:03 AM
To: Stubblefield, Wade
Cc: Nettelton, Marcus; Gulluni, Maria; Arnold, Cheryl; Francoeur, Ellen; Steffes, James D.; Nicolay, Christi L.
Subject: Enron Daily Notice

 <<Daily Notice - 12_31_01 EEMC.doc>>  <<Daily Notice - 12_31_01 EESI.doc>>