Hi Herman,

Here's the agreement I referenced in my voice mail.  We will change it so
that they can't buy any equipment without further written authorization from
Enron.  Anything else?

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 07/19/2000 03:39
PM ---------------------------

Fred Mitro@ECT
07/11/2000 02:29 PM
To: Ben Jacoby/HOU/ECT@ECT
cc: Rusty Stevens/Corp/Enron@ENRON, Kay Mann/Corp/Enron@Enron

Subject: Kendall New Century Development,LLC; Plano Letter of Intent

Ben:

Attached is the ComEd Letter of Intent to interconnect at the Plano TSS.  In
addition, ComEd has included a cover letter which indicates a significant
level of uncertainty regarding a '01 interconnect at Plano.  Under the
guidelines of Appendix K of ComEd's Open Access Transmission Tarriff, we are
required to execute this LOI within 15 days of the date of receipt (7/7/00)
in order to maintain our current position (6/12/00) in the ComEd queue.  If
we execute after 7/22/00, then the date our date in the ComEd queue becomes
the date of execution of the LOI.

Appendix K provides that once the LOI is executed, ComEd shall provide Enron
with an Interconnection Study (IS)  and Project Diagram (PD) within 45 days
(ComEd has the option to extend another 30 days, if needed).  The IS and PD
will provide Enron with a description of the upgrades required and an
estimate of the proposed allocation of the cost to interconnect.  The IS and
PD do not provide Enron with information on transmission availability (ie
ATC), this would be addressed by the Interconnection Feasibility Study
currently in progress by ComEd (I am expecting the results of this IFS in the
next 2-3 weeks).

ComEd informed me in a discussion yesterday afternoon that their current
interpretation of AppendixK provides that if the commercial start date of a
proposed IPP project is delayed, that there is no impact to that proposed
projects' queue position relative to competing projects provided that all
interconnection milestones (LOI, PD, Notice To Proceed, and IA) remain
current.  ComEd further indicated that such a delay would result in a project
with an inferior queue position (i.e. Wizvest) being charged with the
necessary system upgrade costs even though their project would come on line
prior to the project with the superior queue position.  I will request that
this interpretation be confirmed by ComEd in writing to Enron. (This
interpretation obviously has a large value implication for the Torrence site
relative to the Wizvest planned '01 interconnect).

I will review this letter on the plane to Houston this afternoon.  I believe
that it authorizes ComEd to spend up to $100K on engineering related to the
interconnect design.  It also addresses the ordering and payment
responsibilities for long-lead equipment required to facilitate the proposed
interconnection.  Based upon our development budget discussions earlier this
week,  we obviously do not want to incurr long-lead equipment charges prior
to having a clear value proposition in our sights.  I will have
recommendations ready for you on these issues by Wednesday.  I am
simaltaneously forwarding it to Kay Mann for her review so that we will be in
a position to move forward to execution prior to 7/22 if we choose to do so.
From a legal standpoint, this is ComEd's boilerplate LOI.  I believe that we
executed a similar LOI for Wilton Center in early 1999 under Des Plaines
Green Land Development, L.L.C.

Call me if you wish to discuss.

Fred
---------------------- Forwarded by Fred Mitro/HOU/ECT on 07/07/2000 05:24 PM
---------------------------

<Bruce.L.Tanouye@ucm.com> on 07/07/2000 03:57:31 PM
To: fred.mitro@enron.com
cc: Carter.C.Culver@ucm.com, Robert.D.Koszyk@ucm.com
Subject: Kendall New Century Development,LLC; Plano Letter of Intent

Fred,

Thank you for your request to Interconnect nw generating facilities per your
request to, Steven T naumann, Transmission Services Vice president. Please
execute the Letter of Intent per the attachments to maintain your place in
the queue of Applicants fo interconnection.

 <<LOI attachmwn_7_7_00enron plano.doc>>  <<1XM10!7.7.00.DOC>>

Thank You,

Bruce L. Tanouye
Com*Ed Transmission Services
Independent Power Production Services
Phone:  708-410-5276
Fax:  708-410-5900
E-Mail:  bruce.l.tanouye@ucm.com

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

 - LOI attachmwn_7_7_00enron plano.doc
 - 1XM10!7.7.00.DOC


Greg,

Our P&L losses over the last few days have been due to four things primarily.

1)  We have been short crude, and are still short, in a $2.00 up move.  (today the market was down)
2)  We are liquidating many of our portfolios, and are paying large bid/offers.  We are also abandoning some of our P+ options with Koch since credit has indicated our inability to access cash will completely hamper our ability to exercise puts.
3)  As a company we are short vol, and vol has been extremely strong, and continues to move against us.
4)  being long physical inventories in europe in a falling market.  In addition, none of our counterparts/customers/competitors are willing to take the product from us.

We will continue to work out of positions.


Dear Mark,

The changes that you've incorporated into the non-disclosure are acceptable.

If you could make one final change in the signature block to change
"Experian" to "Experian Information Solutions, Inc.", then you can forward
the originals to my attention at the following address:

				Jeannine A. Ford
				Manager, Contracts
				Experian Information Solutions, Inc.
				505 City Parkway West, 10th Floor
				Orange, CA.  92868

Thank you very much for making the requesting additions.

Respectfully yours,

Jeannine A. Ford
Manager, Contracts
Experian Information Solutions, Inc.

-----Original Message-----
From: Greenberg, Mark [mailto:Mark.Greenberg@enron.com]
Sent: Wednesday, October 31, 2001 2:30 PM
To: jeannine.ford@experian.com
Cc: Detiveaux, Kim; Jones, Tana
Subject: FW: non disclosure
Importance: High

Jeannine -

I have have been asked to work with you directly on completing a
non-disclosure agreement between Experian and Enron Credit, Inc.

As you can see from the below message, I have been provided with your
Addendum to the Confidentiality Agreement.  Based upon this document, I
have made the appropriate changes to the original agreement forwarded so
that all terms are contained in one agreement.  I have attached a
redlined version of the agreement below for your review.

I have not incorporated portions of your suggested changes to Paragraph
1 (a portion of the last sentence) or Paragraph 8 (now 18)(the lenght of
the confidentiality obligations).  Otherwise, all modifications have
been incorporated.

Please review the attached at your convenience and let me know your
thoughts.  If this draft meets with your approval, please let me know
and I will forward originals for Experian's signature.

Mark Greenberg
Senior Counsel
Ph: 713-345-8897
Fax: 713-646-4842
E-mail:  mark.greenberg@enron.com

-----Original Message-----
From: Detiveaux, Kim
Sent: Wednesday, October 31, 2001 7:47 AM
To: Jones, Tana
Cc: Greenberg, Mark; Chaney, Craig; Perinne, Albane; Sharon Granger
(E-mail)
Subject: FW: non disclosure

Tana:

The attached file contains changes, prepared by Experian's attorneys, to
the NDA we sent last week.  Their legal contact is Jeannine Ford.
Jeannine's email address is Jeannine.Ford@experian.com.  Please work
directly with her to resolve outstanding issues.

We are scheduled to meet with Experian Tuesday 11/6, to discuss the
application of their data.  The NDA needs to be in place by that time.

Please contact me with any questions.

Kim Detiveaux

-----Original Message-----
From: Sharon.Granger@experian.com [mailto:Sharon.Granger@experian.com]
Sent: Tuesday, October 30, 2001 4:09 PM
To: Detiveaux, Kim
Subject: non disclosure

I'm sure you did not expect this, but our legal department has made some
suggested changes to your standard non disclosure agreement. They
prepared them
in the form of an Addedum and I am attaching it for your review. Please
call me
if we need to get the legal teams talking.

(See attached file: Enron non disclosure add 10_01.doc)

Sharon Granger
Experian Business Information
450 Gears Road, Suite 130
Houston, Texas  77067
281.877.1436
sharon.granger@experian.com

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


---------------------- Forwarded by Larry May/Corp/Enron on 04/10/2001 11:35
AM ---------------------------

	Enron Energy Services

	From:  Roger Reynolds @ EES                           04/10/2001 11:31 AM

To: Larry.May@Enron.com
cc:

Subject: Derivative Pricing

---------------------- Forwarded by Roger Reynolds/HOU/EES on 04/10/2001
11:30 AM ---------------------------

Christopher L Connolly
04/10/2001 11:01 AM
To: Roger Reynolds/HOU/EES@EES
cc:
Subject: Derivative Pricing

Mark Jackson needs unwind cost for 11:00 am conference call.
Thanks
Chris
---------------------- Forwarded by Christopher L Connolly/HOU/EES on
04/10/2001 11:00 AM ---------------------------

Mark Jackson
04/10/2001 10:57 AM
To: Christopher L Connolly/HOU/EES@EES
cc: Martin Rodgers/HOU/EES@EES, Barbara Kortes/HOU/EES@EES
Subject: Derivative Pricing

Hi,

We are looking for the following:

EES sells/OC buys a $3.850 NYMEX put swaption for Jan 2002-Dec 2002 expiring
Dec 26, 2001 on 700,000 mmbtu per month.  (We need ENA's offer)
EES sells/OC buys a $3.750 NYMEX put swaption for Jan 2002-Dec 2002 expiring
Dec 26, 2001 on 180,000 mmbtu per month. (We need ENA's offer)
EES buys/OC sells a $3.500/$3.000 NYMEX put spread for Apr 2002-Oct 2002. (a
strip of monthly options) on 880,000 mmbtu per month.  (We need ENA's bid)

Please call me if you need more info.  We need to get the pricing together
within the hour for a phone call with Leff & Delainey.

Thanks very much.

Mark


We've got a draft master with the following rounding conventions:

Short tons: zero decimals
Temperatures:  zero decimals
US Dollar Amounts:  to the nearest cent

Do you know whether those are our standard rounding conventions?

P.S.  Do you get a invite to our favorite email person's political
swankienda?


Vince,
feel free to use this username and password to surf around the amrresearch site
ken
---------------------- Forwarded by Kenneth Parkhill/NA/Enron on 04/12/2001 01:23 PM ---------------------------

webmaster@www.amrresearch.com (Craig MacKay) on 04/11/2001 05:34:08 PM
To:	Kenneth Parkhill <Kenneth.Parkhill@enron.com>
cc:

Subject:	AMR Research Preview Information

The following is your user name and password for an AMR Research preview account.

Username:        parkhill151647
Password:        remain

The preview section will give you access to the executive summaries section and the presentation library. If you have any questions about AMR Research, please email info@AMRResearch.com or call (617) 542-6600.

To access the preview section, please go to the following URL.
http://www.amrresearch.com/members


Start Date: 4/10/01; HourAhead hour: 23;  No ancillary schedules awarded.
Variances detected.
Variances detected in SC Trades schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041023.txt

---- SC Trades Schedule ----
+++ Hour 23 - bad data from ISO.
  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/10/01
  TRADING_SC: PGAE
  PNT_OF_INTRC: NP15
  SCHED_TYPE: ENGY
  PURCH_SALE: 2
  DEAL_NO: 1


forward that file to John Valdes and Ramesh once you are ready


Darren:

I never received copies of the confirms which we discussed.

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


I have it - I will get it to her.

 -----Original Message-----
From: 	Hayslett, Rod
Sent:	Wednesday, November 21, 2001 1:08 PM
To:	Howard, Kevin A.
Subject:	FW: TW info

Do you have this data?

 -----Original Message-----
From: 	Taylor, Sarah
Sent:	Wednesday, November 21, 2001 8:55 AM
To:	Hayslett, Rod
Cc:	Desai, Jayshree
Subject:	TW info

Rod,

Per our conversations yesterday there is one other item that we would like to obtain: the current percentage ROE and return on rate base allowed by FERC.  If there is someone in your organization that I can contact please let me know.

Thank you for all of your help!  I hope that you get to relax and enjoy at least some of your holiday.

Regards,
Sarah


Here's the next sawdust pile creator.

http://www.newyankee.com/col/511.shtml


Thank you for the invitation but I already have other obligations during this time so I will not be able to attend.

 -----Original Message-----
From: 	Garcia, Ava
Sent:	Friday, October 12, 2001 10:41 AM
To:	'adele.zuroff@elpaso.com'; 'agold@coral-energy.com'; 'becky.wells@eprime.com'; 'bdahncke@pcenergy.com'; 'bhong@calpine.com'; 'blyons@coral-energy.com'; 'rmattice@enron.com'; 'bwoody@pnm.com'; 'carla.j.johnson@usa.conoco.com'; 'charlesh@wtrt.net'; 'cweyman@astraoil.com'; 'cthompson@pnm.com'; 'cdoescho@utilicorp.com'; 'cwhie@brr.com'; 'carol_briscoe@kindermorgan.com'; 'corny.boersma@cargill.com'; 'ccarley@reliantenergy.com'; 'cwlipke@czn.com'; 'point_management@kindermorgan.com'; 'darrenb@ngtsllc.com'; Fuller, Dave; 'agave@ypcnm.com'; 'd6taylor@socalgas.com'; 'debbie.fortman@swgas.com'; 'dennis.j.boucher@williams.com'; 'douglas_allen@cargill.com'; 'grains1@txu.com'; 'gschwartz@txuenergy.com'; 'elkassed@cook-inlet.com'; 'igs@aol.com'; 'jhcathey@txu.com'; 'jlfo@dyengy.com'; 'james.tabacco@elpaso.com'; 'jnoniker@cmsenergy.com'; Tholt, Jane M.; 'kelmj@epenergy.com'; 'jacammarano@pplweb.com'; 'jeff.goforth@williams.com'; 'jroberson@oneok.com'; 'javallillo@sempratrading.com'; 'jwade@sidrichgas.com'; 'jody.oberman@neg.pge.com'; 'coganja@aol.com'; 'jlopez@opltexas.com'; 'jrojas@gas.pemex.com'; 'jchapa@calpine.com'; 'juliac@usgt.com'; 'jburton@utilicorp.com'; Gomez, Julie A.; 'jreames@br-inc.com'; 'kdopson@pnm.com'; 'kswett@tmvgas.com'; 'kathleen.royal@elpaso.com'; 'kholdr@ppco.com'; 'kevinfo@questar.com'; 'kevinh@cook-inlet.com'; 'ketchekl@bp.com'; 'kristi.birdsall@eprime.com'; 'llblack1@attglobal.net'; 'nmng@nmng.com'; 'lee.a.catron@williams.com'; 'lmiller1@pnm.com'; 'mbutler@tristargas.com'; 'mfenton@pnm.com'; 'mfharmon@ppco.com'; 'mark_kraus@eogresources.com'; 'mschneider@duke-energy.com'; 'marykayo@qstr.com'; 'mmartindale@tmvgas.com'; 'mdavis02@coral-energy.com'; 'mkeen@reliantenergy.com'; 'meo2@pge.com'; 'curtisnt@bp.com'; 'nthomas@utilicorp.com'; 'psteiger@cmsenergy.com'; 'pabercrombie@txuenergy.com'; Sullivan, Patti; 'barryp@bp.com'; 'rbigler@unocal.com'; 'gaylenh@qstr.com'; 'rmoore@ameramex.com'; 'rdmoncrief@sidrichgas.com'; 'rick.wadle@mirant.com'; 'rony@panallberta.com'; 'rkboone@duke-energy.com'; 'sprentice@pnm.com'; 'sfhawk@cmsenergy.com'; 'sjdavis@sidrichgas.com'; 'sbreen@czn.com'; 'scott.s.harrison@elpaso.com'; 'spark@oneok.com'; 'cam6@pge.com'; 'cjenkins@txu.com'; 'poguesr@texaco.com'; Miller, Stephanie; 'skatz@sempratrading.com'; 'ang2@arn.net'; 'susan.jones@et.pge.com'; 'terry.reyna@elpaso.com'; Evans, Ted; 'theresa_cline@apsc.com'; 'twickersham@enserco.com'; 'tom_carlson@apsc.com'; 'tds8@pge.com'; 'van.johnson@williams.com'; 'vesparza@txu.com'; 'wwp1@pge.com'; 'william.vandenboom@southernenergy.com'; 'willia25@bp.com'
Subject:	2001 November TW Customer Meeting

You have been selected to attend the Transwestern customer meeting in November.  Review the attachment below for details.  Please indicate whether you will attend, specifiy date of attendance, or whether you will not attend in a email to ava.garcia@enron.com or phone at 713-853-5842.

Hope to see you in November.

 << File: TWCustomermtg..ppt >>  << File: DRIVING  DIRECTIONS.doc >>


OK.

 -----Original Message-----
From: 	Lavorato, John
Sent:	Thursday, May 31, 2001 10:54 AM
To:	Oxley, David
Cc:	Kitchen, Louise
Subject:

I told Jean that she could pay Bilbury 50K and nonthing else.  I told her that I completely disagree with any payment so view it as a payment to her or for her to be happy.  This upset her.  She wanted to give him 25k later and I vetoed that.  Is that how you spell vetoed.

John


SBX 6 (Burton), which would establish a public power authority, passed
out of the Senate this morning on concurrence on a party-line vote of
24-14 .   The bill now goes to Governor Davis for signature or veto.

http://info.sen.ca.gov/pub/bill/sen/sb_0001-0050/sbx1_6_bill_20010426_amended_
asm.pdf


---------------------- Forwarded by Darron C Giron/HOU/ECT on 11/13/2000
08:36 AM ---------------------------

"KRISTI GIRON" <KRISTI.GIRON@cfisd.net> on 11/09/2000 10:36:36 AM
To: <Darron.C.Giron@enron.com>
cc:
Subject: Fwd: Fw: Get out the Vote

Received: from smtp.email.msn.com (cpimssmtpu02.email.msn.com
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Received: from default - 63.28.143.245 by email.msn.com with Microsoft
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Message-ID: <001a01c04a5d$86304c20$f58f1c3f@default>
From: "hollyw" <hollyw@email.msn.com>
To: "Steph and MO" <headbergms1@home.com>, "Stacy Warren"
<swarre02@coair.com>, "Sheri Thomas" <Sheri.Thomas@enron.com>, "Shane Herzog"
<SHERZOG@ridgways.com>, "Ron Jones" <jonesr@tpi-sourcing.com>, "Rochelle
Smith" <rochelle@waterengineers.com>, "Rick Couvillon"
<julierickcouv@hotmail.com>, "Nicol, Gary" <nicolg@bp.com>, "Matt Frazier"
<fraz2girls@ev1.net>, "Len" <bigusdickus70@hotmail.com>, "KRISTI GIRON"
<KRISTI.GIRON@cfisd.net>, "John Schmitz" <jschm@telxon.com>, "Jim Miller"
<jraggie1@pdq.net>, "Janine Gregor" <janine.gregor@talk21.com>, "Jim Henness
\(E-mail\)" <jhennes@c2i2.com>, "Diego Gotthelf" <dygotthelf@hotmail.com>,
"Debbie Hall" <gmind@icsi.net>, "Darron C Giron" <Darron.C.Giron@enron.com>,
"Ben Schulein" <advantage@infovia.com.ar>, "Ben & Phyllis Tobias"
<benandphyllistobias@compuserve.com>, "Barbara Denson" <bbdenson@pdq.net>
Subject: Fw: Get out the Vote
Date: Thu, 9 Nov 2000 08:58:25 -0600
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Thats adorable!!

----- Original Message -----
From: <raymond.paterson@dfait-maeci.gc.ca>
To: <gonzalo@loadmedia.com>; <hollyw@email.msn.com>;
<Paul.Steed@glencore-us.com>; <TRatchford@webtonetech.com>
Sent: Thursday, November 09, 2000 5:22 AM
Subject: Get out the Vote

>
>
>
> Don't open in your cube
>
>
>

 - att1.jpg


Recently you should have received an email invitation asking for your
participation in an executive customer survey regarding Sun's performance.
This is just a reminder that Sun is still very interested in your feedback.
You can participate in the survey by clicking on the URL below or by cutting
and pasting the entire URL (including the verification string) into the
address field of your browser.  Thank you for your time and consideration.

http://survey3.burke.com/tcs/begin.cgi?keycode=q2y6w

Cordially,

Paige Schehr
Burke CSA
paige.schehr@burke.com


Attached is a redlined Natural Gas Services Agreement with the revisions we discussed.  Also attached is the Transaction Agreement.  The term has been revised to reflect a Dec. 31, 2002 ending date.  Please review and if acceptable, we can prepare executables.  Call with any questions.


Please find attached our Weekly Report (10th August 2000) for your perusal
and information.

Regards,

Beverley


This is the confirm I have received from NYPA.  I will be asking him if they
will consider using ours.  But it may be efecient to start looking at theirs
in case they insist.
---------------------- Forwarded by Janelle Scheuer/HOU/ECT on 09/19/2000
10:25 AM ---------------------------

"Carey, Michael" <Michael.Carey@nypa.gov> on 09/18/2000 02:09:35 PM
To: "'Janelle.scheuer@enron.com'" <Janelle.scheuer@enron.com>
cc:
Subject: isda confirmation

Janelle:  Thanks for the price quotes. Please confirm that the total energy
under consideration is 265,000 MWh. Also, here is our ISDA confirmation for
your consideration  Thanks, MIKE.

 <<CFD1.doc>>

 - CFD1.doc


*  one speaker had to be dragged away from microphone (see red)

PUC Delays Decision on Power Rate Hike

Energy: Panel will discuss a new plan today that would shift more of the
burden to residences from business.

By TIM REITERMAN and MARLA DICKERSON, Times Staff Writers

SAN FRANCISCO--The state's utility regulators delayed a decision Monday on
how to structure a $5-billion electricity rate increase until today, when
they will take up a revised plan that is expected to shift a larger share
onto residential customers.
Assailed by power users and pressured by the governor, the California Public
Utilities Commission said more time was needed to assess the impact on
competing interest groups.

"The problem here is making sure we are allocating [the increase] equitably,"
PUC President Loretta Lynch said after the meeting. That, she said, is
"tricky."

About half the residential customers of the state's two largest utilities
would see increases under Lynch's plan proposed last week.
Bills for Southern California Edison customers who use moderate to heavy
amounts of power would rise about 9% to 60%. Similar customers of Pacific Gas
& Electric Co. would experience increases of about 7% to 40%.

To encourage conservation, Lynch said, she favors moving more of the overall
burden of the increases to residential customers who are moderate users of
electricity. Other commissioners say they believe that such a shift is
necessary to protect the state's business climate.

Consumer advocates voiced concern that the PUC may be yielding to pressure
from industry groups that enjoy relatively low rates but say they are being
hit unfairly with much larger percentage increases than residential customers.

"The fear is the commission is caving in and taking [the increase] off big
[business] customers and putting it on residential users above 130% of
baseline," said Mike Florio, senior attorney for the Utility Reform Network.

The baseline amount on a bill is the minimum of electricity deemed necessary
for a customer and varies by region. Under state legislation, there is no
rate increase for consumption up to 130% of baseline. Also exempted are
low-income customers who already receive discounted electricity rates.

The commission passed an increase of 3 cents a kilowatt hour March 27. In
recent weeks, the panel has been conducting hearings on how to divvy up the
increase among 9 million customers of Edison and PG&E. Monday's meeting was
supposed to climax that process, paving the way for utilities to start
billing customers June 1.

Dozens of speakers addressed the commission, and boisterous protesters in
white coveralls repeatedly criticized the rate increase, chanting: "I ain't
payin' no hike, while they're getting rich from our power rates! Who you
gonna call? Rate Busters!"

One had to be dragged away from the microphone.

To stunned surprise, Lynch later announced that the commission would not vote
on her rate design proposed last week or a similar one proposed by a PUC
administrative law judge.

Lynch revised the plan over the weekend and some commissioners said they had
not yet seen the changes.

The delay means two commissioners will be out of town when the five-member
panel designs the state's largest rate increase ever. Commissioner Richard
Bilas is undergoing a medical procedure in Mendocino County. Commissioner
Henry Duque is traveling to Texas as a director of the National Assn. of
Utilities Commissioners. They said the law permits them to vote by phone as
long as they do it from a publicly accessible place.

Lynch's proposal called for average rate increases of about 20% to 50% for
various classes of customers. But officials said the proposal was being
reviewed after testimony late last week and mounting concerns among some
commissioners that it would hit industry and big commercial customers too
hard, potentially hurting the state's economy.

After his financial advisors reviewed the PUC's proposals, Gov. Gray Davis
put out a statement over the weekend saying his own proposal, including a
slightly smaller rate hike, was better.

"My plan raises sufficient revenues to deal with the problem without putting
an undue burden on California consumers and businesses that might hurt our
economy," he said.

The governor's office last week asked the PUC to "come around," said press
secretary Steve Maviglio. "There are gaps between his proposal and the PUC's."

Carl Wood, one of three Davis appointees on the commission, said that he was
generally comfortable with the Lynch proposal but that "this is a big
decision, and it is not ready" for a vote.

Jeff Brown, another Davis appointee, said he spoke to the governor's office
recently and learned that Davis had two primary concerns about the proposal:
"No. 1 that there be sufficient price signals within the residential class
[to make people conserve], and that the industrials not be walloped and have
some mitigation of the rate increase."

Brown said he would like to see industrial users paying less than the 50%
hike in Lynch's proposal. He said that would mean residents who consume 300%
of their baseline amount would have their rates rise 28% instead of about 15%.

"I want [the proposed amount for industrial customers] to go down somewhat
but can't put all the burden on residentials," he said.

"There are no good answers."

Duque and Bilas, appointees of former Republican Gov. Pete Wilson, expressed
concerns that the rate proposal would further damage the economy.

"Industry is not getting a fair shake," Bilas said. "If you want to achieve
maximum conservation, you put [the increase] where demand is most elastic. It
should be placed on you and me."
Duque said: "I think [industrial users] are getting an undue amount."

Business groups have argued strongly that consumers must endure their fair
share of the pain in order to encourage conservation.

Carl Guardino, president and chief executive of the Silicon Valley
Manufacturing Group, said his group phoned Davis' staff to voice their
opposition to the proposed rate structure.

"We found a receptive audience," he said. "They saw that this [proposed rate
structure] will deeply hinder our economy."
---
Reiterman reported from San Francisco, Dickerson from Los Angeles.

Copyright 2001 Los Angeles Times


A wild week in Iowa.  By the end of the day Tuesday, it became clear to all
parties that the bill would not be called for a vote.  The customers were
unwilling to give anymore on the enviroment issues and the democrats would
similarly not back off their positions.  Mid American then switched gears to
pull out all the stops on getting labor support in order to trump the enviro
supporters.  Mid American put forward a proposal to the unions/legislators
that they would commit to build 2 power plants in the state of Iowa (as
opposed to developing in Illinois) over the next 5 years that would employ
union labor. Mid American also had it's top management making many visits
this week---Greg Abel and I believe also David Sokol.  (No Warren Buffet
sightings yet!!!!)This offer created a flurry of activity on both sides, but
at the end of the day Thursday, the state IBEW group let it be known that
they would still not support the bill even with the Mid Am proposal.

Mid American believes that the Republicans now have a hook to force the
democrats into voting for the de reg bill, by saying that if they don't vote
affirmative, they are not for economic development in the rural/struggling
areas of the state where the power plants would be built.

WHile I may not share Mid American's positive assessment, the proponent's
group continues it's advocacy and will meet with legilsators in their
districts over the weekend. The senate leadership agreed to hold off
reconvening the committee until Monday afternoon in an effort to allow any
last minute maneuvering over the week end.
---------------------- Forwarded by Susan M Landwehr/HOU/EES on 04/14/2000
05:43 PM ---------------------------

Susan M Landwehr
04/10/2000 11:15 PM
To: Richard Shapiro/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Janine
Migden/DUB/EES@EES, Becky L Merola/DUB/EES@EES, Mark Harada/HOU/EES@EES,
Scott Stoness/HOU/EES@EES, Ajit Gill/HOU/EES@EES, Richard D
Rathvon/HOU/EES@EES, Barton Clark/HOU/ECT@ECT, John Moore/Corp/Enron@Enron,
Ben Jacoby/HOU/ECT@ECT, Stephen Plauche/Corp/Enron@Enron, Fred
Mitro/HOU/ECT@ECT, Janel Guerrero/Corp/Enron@Enron, Daniel Reck/HOU/ECT@ECT,
Christi L Nicolay/HOU/ECT@ECT, Lon Stanton/ET&S/Enron@Enron, Barbara A
Hueter/DUB/EES@EES, Roy Boston/HOU/EES@EES, Kerry Stroup/DUB/EES@EES,
dmangsk@enron.com, Thomas S Reichelderfer/DUB/EES@EES, Steven J
Kean/HOU/EES@EES, Elizabeth Linnell/HOU/EES@EES
cc:
Subject: Iowa de reg update

The latest from Des Moines.  The chair(republican) of the Senate committee
had a hearing this morning to consider all of the enviromental amendments put
forward by the Democrats and it was clear that no Dems would vote for the
eventual bill without their amendments, so the chair recessed the committee
without a vote.  The committee can be recalled at any time, but the general
sense is that it will not be brought back up without at least 2 democrat
votes guaranteed.  As is often the case in these debates, the proponents
continue to try many strategies, but all of us agree that without direct
intervention from Governor Vilsack, the democrats will not come around. As
stated in my earlier message, I am not optimistic about passage.  Tempers are
running very high and it is very possible that the utilities will try to cut
a deal at the last minute that will negatively impact the customers (likely
by rate impacts on envriomental/efficiency programs).  Please give me a call
#612-339-4599 if you want any added insight.

---------------------- Forwarded by Susan M Landwehr/HOU/EES on 04/10/2000
10:47 PM ---------------------------

Susan M Landwehr
04/05/2000 12:24 PM
To: Richard Shapiro/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Janine
Migden/DUB/EES@EES, Becky L Merola/DUB/EES@EES, Mark Harada/HOU/EES@EES,
Scott Stoness/HOU/EES@EES, Ajit Gill/HOU/EES@EES
cc: Richard D Rathvon/HOU/EES@EES, Barton Clark/HOU/ECT@ECT, John
Moore/Corp/Enron@Enron, Ben Jacoby/HOU/ECT@ECT, Stephen
Plauche/Corp/Enron@Enron, Fred Mitro/HOU/ECT@ECT, Janel Guerrero/HOU/EES@EES,
Daniel Reck/HOU/ECT@ECT, Christi L Nicolay/HOU/ECT@ECT, Lon
Stanton/ET&S/Enron@Enron, Barbara A Hueter/DUB/EES@EES, Roy
Boston/HOU/EES@EES, Kerry Stroup/DUB/EES@EES, dmangsk@enron.com, Thomas S
Reichelderfer/DUB/EES@EES
Subject: Iowa de reg update

The Iowa customer choice bill has run into some significant roadblacks the
last few days due to the political maneuvering of the Democrats.  As you will
recall, the House Republicans have always stated that they needed Democrat
votes in order to bring the matter to the floor for a vote.  Despite Governor
Vilsack's stated support for the measure last week as well as last weekend,
the House  Democrat leadership is unwilling to push their members, as they
want to use this bill against the Republicans in the House races this fall.
(The tactic they will take is that residential rates will rise in the
Southeastern part of the state due to the Republicans passing the bill).

The primary issue that the Dems are using as a reason not to vote for the
bill is that the enviromental protections/funds are not high enough.  The
Republicans are unhappy about the exhorbitant amount of funds and the RPS
that are already in the bill, and are not willing to vote for an amended bill
that the Dems are pushing for.  The enviros and the unions are, as they have
been for the last 6 months, the dividing force in this debate.

Therefore, the proponents coalition moved their efforts to the Senate, with
the hope of getting a vote out this week and then move it back over to the
HOuse.  While we had a good commitment from Senate leadership (both Dems and
Republicans) on Monday, that support has eroded as of this morning.  We are
trying a number of tactics, and hope that there will be some positive
movement today and tomorrow.  Without the Governor stepping up to the plate
and "encouraging" the democrats to gather the number of democrat votes
neccessary this week, I am not optimistic about passage.

There are still two-three weeks of session left, so this debate could rage
until then, but my sense is that if we don't get something out of the Senate
by the end of this week or early next week, we'll be dead.  Call if you have
any questions.
#612-339-4599


More pictures of the line rupture!
---------------------- Forwarded by Cindy Stark/Corp/Enron on 02/10/2000
10:05 AM ---------------------------

Phil Lowry
02/10/2000 09:14 AM
To: Cindy Stark/Corp/Enron@Enron
cc:
Subject: Rupture

This explains the first set?
---------------------- Forwarded by Phil Lowry/OTS/Enron on 02/10/2000 09:18
AM ---------------------------

Walt Williams
02/10/2000 08:27 AM
To: Michel Nelson/ET&S/Enron@Enron, Ken Earl/ET&S/Enron@Enron, Phil
Lowry/OTS/Enron@Enron
cc:

Subject: Rupture

Sorry about the one picture this was more personal camera and had some grand
kids pictures on it.
Here are a few more.


Okay with Financials.  Georgi

From: Karen Lambert@ECT on 05/08/2001 09:28 AM
To: Lisa Lees/ENRON@enronXgate @ ENRON
cc: Tana Jones/HOU/ECT@ECT, Kelly Lombardi/NA/Enron@Enron, Stephanie
Sever/ENRON@enronXgate@ENRON, Georgi Landau/NA/Enron@ENRON, Anthony
Campos/HOU/ECT@ECT

Subject: Re: FW: Can Gas Fin Opt Put & Call - please process

Yes, Global agrees.

From: Lisa Lees/ENRON@enronXgate on 05/08/2001 08:29 AM
To: Tana Jones/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Kelly
Lombardi/NA/Enron@Enron
cc: Stephanie Sever/ENRON@enronXgate
Subject: FW: Can Gas Fin Opt Put & Call - please process

The product long descriptions in the attachment directly below will fall
under the new product types CAN Gas Financial Option Call and CAN Gas
Financial Option Put.  Credit (Tom Moran) has approved copying the profiles
for the new product type from the following:

 CAN Gas Financial Swap

Please respond no later than 10 a.m. on Wednesday, May 9.

Thank you.

 -----Original Message-----
From:  Lozano, Melba
Sent: Wednesday, May 02, 2001 2:07 PM
To: Lees, Lisa; Sever, Stephanie
Cc: Cass, Robert B.; Walker, Chris; Meredith, Kevin; Draper, Lon
Subject: Can Gas Fin Opt Put & Call - please process

Lisa/Stephanie:

Can Gas Fin Opt Call
Can Gas Fin Opt Put

Was uploaded a couple of weeks ago as an internal product.  They have not
created any products under them.  Lon Draper in Canada wants to upload the
following profile if it's ok with Legal and Credit. Let me know what you find
out.

Thanks,

Melba

#1
      Product Type name: Can Gas Fin Opt Call (1992)

GTC: Same as Can Gas Fin Swap (1063)

Profile:   Copy external profiles (Bid, offer, tenor, investment grade flag,
masters) from  Can Gas Fin Swap (1063)  EXCLUDE BROKERS/Broker Master Users &
Broker Sub Users from file upload

#2
Product Type name: Can Gas Fin Opt Put (1993)

GTC: Same as Can Gas Fin Swap (1063)

Profile:  Copy external profiles (Bid, offer, tenor, investment grade flag,
masters) from  Can Gas Fin Swap (1063)  EXCLUDE BROKERS/Broker Master Users &
Broker Sub Users from file upload


Carol St. Clair
EB 3889
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com
----- Forwarded by Carol St Clair/HOU/ECT on 06/06/2001 02:36 PM -----

	Rhonda L Denton
	06/06/2001 02:23 PM

		 To: DrewK@merchantenergy.com
		 cc: Carol St Clair/HOU/ECT@ECT, Wendy Conwell/Enron@EnronXGate
		 Subject: Re: MEGA Assignment

Kristina, here are the proposed changes to the Assignment Consent Agreement.
Our attorney is Carol St. Clair .  Please respond to her (and copy me if via
email) with your response to the proposed changes.  She indicated that we are
negotiating an amendment to our master with Morgan in order to accommodate
this assignment so we will not be executing the Assignment Consent Agreement
until Enron and Morgan sign the amendment to our Master with them.   We need
to know from MEGA and Morgan what the transfer effective date is that
establishes the cutoff date for these trades as between ourselves and each of
Morgan and MEGA.  She indicated that her revised draft of the Consent makes
it clearer how this cutoff date works.  Carol's contact information is below.

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


kay please schedule

regards
delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 07/05/2000
07:48 PM ---------------------------

	Enron North America Corp.

	From:  Ken Lay, Jeff Skilling & Joe Sutton @ ENRON
07/05/2000 02:01 PM

Sent by: Office of the Chairman@ENRON
To: Executive Committee
cc: Executive Committee Assistants
Subject: United Way Alexis de Toqueville Breakfast

Please join us for the Alexis de Toqueville Breakfast at DePelchin Children,s
Center, our adopted agency for this year and one of the more than 80
community organizations supported by the United Way of the Texas Gulf Coast.
The Alexis de Toqueville Breakfast will focus on our 2000 campaign.  To reach
our goal of  $2,310,000, it will take the active leadership and support of
all the Alexis de Toqueville members. We look forward to seeing all of you at
the breakfast.

Event:  Alexis de Toqueville Breakfast
Date:  Monday, July 24, 2000
Time:  7:45-9:00 a.m.
Location: DePelchin Children,s Center
  100 Sandman (close to Memorial and Shepherd intersection)

Transportation: Bus will depart from the Enron Building (Andrews Street side)
promptly at 7:30 a.m.

NOTE: Bus transportation is encouraged, due to limited onsite parking.
However, if you should need to drive, a map will be provided.

Please R.S.V.P. no later than Friday, July 14 to confirm your attendance and
bus transportation to Kathy Mayfield
at 853-3264.


We are trying to decide what to do this weekend and wondered (with fond
memories of last year in mind) what you guys had planned.....


======================== THE MOTLEY FOOL ========================
                   B R E A K F A S T   N E W S
                    Monday, September 24, 2001
benjamin.rogers@enron.com
=================================================================

IN THIS ISSUE
---------------------
- TOP STORY: Federated's September Chill
  http://www.fool.com/m.asp?i=501890

- NEWS TO GO: VeriSign, Boeing, and Novell
  http://www.fool.com/m.asp?i=501891

- POST OF THE DAY: Buffett Says...
  http://www.fool.com/m.asp?i=501892

=================================================================

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the only way to stay happy." -- Carl Holmes

-----------------------------------------------------------------
TOP STORY
-----------------------------------------------------------------

FEDERATED'S SEPTEMBER CHILL
Federated Department Stores (NYSE: FD), operator of such chains
as Macy's, Bloomingdale's, and Lazarus, said September business
has dropped off dramatically since the terrorist attacks that
targeted New York and Washington on the 11th.

>>FULL STORY:
http://www.fool.com/m.asp?i=501894

-----------------------------------------------------------------
NEWS TO GO
-----------------------------------------------------------------

Internet infrastructure firm VeriSign (Nasdaq: VRSN) agreed to
buy wireless communications network services company Illuminet
(Nasdaq: ILUM) in a stock deal valued at approximately $1.2
billion based on Friday's closing prices.

Aircraft maker Boeing (NYSE: BA) agreed to pay $92.5 million to
settle a class action stockholder lawsuit filed against the
company in 1997. Stockholders alleged that the company withheld
information about production problems, hurting the company's
share price. Boeing recently announced broad job cuts.
http://www.fool.com/m.asp?i=501895

A story in today's Los Angeles Times cites unnamed sources as
saying file-swapping maverick Napster may soon ink a deal with
an agency that represents many leading recording companies,
which may free up the company to launch a fee-based music
download service. While the company already has deals with some
labels, they won't take effect until the new service debuts.
http://www.lnksrv.com/m.asp?i=501896

American Trans Air parent company AmTran (Nasdaq: AMTR) said
Citigroup's (NYSE: C) Citicorp and Salomon Smith Barney withdrew
their commitment to finance the company's planned going-private
transaction. AmTran is currently evaluating its options but is
not sure the deal will go through. Paul Larson covered the
situation facing several airline operators last week.
http://www.fool.com/m.asp?i=501897

Internet software vendor Novell (Nasdaq: NOVL) extended its
stock buyback plan through June 30, 2002, and said $400 million
was available for use. Many companies have restarted or extended
their buyback plans following last week's poor market
performance.
http://www.fool.com/m.asp?i=501898

Vacation rental property management company ResortQuest (NYSE:
RZT) said it would cut 100 jobs and institute pay and hiring
freezes as it looks to reduce overhead during what is expected
to be a difficult time for travel companies. Boca Resorts (NYSE:
RST), meanwhile, lowered its guidance for the second half of the
year. Cruise lines were among the companies reporting bad news
last week.
http://www.fool.com/m.asp?i=501899

-----------------------------------------------------------------
POST OF THE DAY
-----------------------------------------------------------------

BUFFETT SAYS...
"[Bill Mann] Buy and Hold is only defenseless when it is applied
without any view of business realities. Buy and Hold cannot
protect one from bad buy decisions, which JDS Unipahse at $150
undoubtedly was, as Lucent at nearly any price was. That Buffett
makes better buy decisions than most is irrefutable."

>>FULL POST:
http://www.fool.com/m.asp?i=501900

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MsgId: msg-31679-2001-09-24_9-20-40-336403_2_Plain_MessageAddress.msg-09:21:09(9-24-2001)
X-Version: mailer-sender-master,v 1.84
X-Version: mailer-sender-daemon,v 1.84
Message-Recipient: benjamin.rogers@enron.com


I never would have guessed smoked oysters.  I think I'm cooking for the 4 of
us, plus Lena and any stray friends we find.  We will probably come to
Palacios on Saturday and spend the night, although I haven't discussed it
with Mom yet.

It is dreary here today, but in a nice way.  I don't mind it too much,
although by Sunday we may be stir crazy.

We went to Michael's school on Wednesday, as his class was singing in
chapel.  Roger Clements was there, video cam in hand, doing the dad thing.
He is a really big guy, much bigger than I thought.  He looks like a football
player.  I see why Piazza didn't take a swing!

I would say "break a leg" for Katie, but with your groups orthopedic
problems, I hesitate to use the phrase!

Love,

Kay


Dynegy Issues Statement On Enron Merger Status
Business Wire, 11/21/01
Enron says repayment of 690 mln usd debt extended until mid-Dec
AFX News, 11/21/01
USA: Enron secures credit line as shares fall.
Reuters English News Service, 11/21/01
Enron stock free-fall continues
Associated Press Newswires, 11/21/01
Enron Closes On $450M Secured Credit Line
Dow Jones News Service, 11/21/01
USA: UPDATE 1-Enron shares fall further on credit concerns.
Reuters English News Service, 11/21/01
USA: Enron shares tumble on credit concerns.
Reuters English News Service, 11/21/01
Upgrades and Downgrades
CNNfn: Market Coverage - Morning, 11/21/01
USA: RESEARCH ALERT-Enron, Dynegy cut by Goldman.
Reuters English News Service, 11/21/01
Enron Gets Extension on $690 Mln Note Due Next Week (Update1)
Bloomberg, 11/21/01

Enron, Dynegy Shares Fall 2nd Day on Threat to Buyout (Update2)
Bloomberg, 11/21/01

U.S. Equity Movers: Cardiac Science, Enron, Guidant, TriQuint
Bloomberg, 11/21/01

Enron, Dynegy Shares Fall 2nd Day on Threat to Dynegy Bid
Bloomberg, 11/21/01

Enron Corp. Cut to `Market Perform' at Goldman Sachs
Bloomberg, 11/21/01

Enron Says Lenders Extend $690 Mln Note Payment to Mid-December
Bloomberg, 11/21/01

Plunge Says End Is Near at Enron
TheStreet.com, 11/21/01

DYNEGY, ENRON SAY MERGER TO PROCEED
CBS.MarketWatch.com, 11/21/01

Dynegy Issues Statement On Enron Merger Status

11/21/2001
Business Wire
(Copyright (c) 2001, Business Wire)
HOUSTON--(BUSINESS WIRE)--Nov. 21, 2001--Dynegy Inc. (NYSE:DYN) Chairman and CEO Chuck Watson today said he is encouraged by Enron Corp.'s report this morning that it has closed the remaining $450 million credit facility secured by the assets of Northern Natural Gas Pipeline and has received a commitment from its lead bank to extend the $690 million note payable obligation described in Enron's recent 10-Q filing.
"We are continuing our confirmatory due diligence and working to accelerate the regulatory approvals required to complete the merger in accordance with the previously announced agreement," he said.
Watson also noted that ChevronTexaco recently reiterated that it has "full confidence in Dynegy's disciplined management approach to complete the merger and to build a new company into an industry leader." ChevronTexaco owns 26 percent of Dynegy's outstanding common stock.
Dynegy Inc. is one of the world's top energy merchants. Through its global energy delivery network and marketing, trading and risk management capabilities, Dynegy provides innovative solutions to customers in North America, the United Kingdom and Continental Europe.
Certain statements included in this news release are intended as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements include assumptions, expectations, predictions, intentions or beliefs about future events. Dynegy cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Some of the key factors that could cause actual results to vary from those Dynegy expects include changes in commodity prices for energy or communications products or services; the timing and extent of deregulation of energy markets in the U.S. and Europe; the timing of required approvals for the Dynegy/Enron merger and the success of integration and cost savings measures relating to the merger; the effectiveness of Dynegy's risk management policies and procedures and the creditworthiness of customers and counterparties; the liquidity and competitiveness of wholesale trading markets for energy commodities, including the impact of electronic or online trading in these markets; operational factors affecting Dynegy's power generation or Dynegy's midstream natural gas facilities; uncertainties regarding the development of, and competition within, the market for communications services in the U.S. and Europe; uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Dynegy's business; general political, economic and financial market conditions; and any extended period of war or conflict involving the United States or Europe. Moreover, Dynegy's expectation that the acquisition will be accretive to earnings in 2002 and beyond is based upon achieving certain sales projections, meeting certain cost targets and successfully integrating the acquired assets. More information about the risks and uncertainties relating to these forward-looking statements are found in Dynegy's SEC filings, which are available free of charge on the SEC's Web site at http://www.sec.gov.

CONTACT: Dynegy Inc., Houston 713/767-5800
13:26 EST NOVEMBER 21, 2001

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron says repayment of 690 mln usd debt extended until mid-Dec

11/21/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
HOUSTON (AFX) - Enron Corp said its creditor banks have granted an extension on a 690 mln usd note payable by Nov 27 until mid-December, giving it enough time to restructure the debt.
In a statement, the troubled energy company said the extension has been agreed following talks with its main creditor banks on restructuring its debt to avoid a liquidity crisis.
"We have been in continuous contact with our banks and believe we can identify a mutually beneficial restructuring to enhance our cash position, strengthen our balance sheet and address upcoming maturities," said chief financial officer Jeffrey McMahon.
Enron first informed investors of the possibility it would be forced to repay the 690 mln usd note in a filing to the Securities and Exchange Commission on Monday.
The obligation arose after Standard & Poor's cut the company's long-term debt rating to BBB- last week, forcing it to either post collateral on the note or repay it on maturity.
Enron said it has also secured the remaining 450 mln usd of a previously announced 1 bln usd credit line from JP Morgan and Salomon Smith Barney. The facility is secured by the assets of Enron's Northern Natural Gas Co unit.
The other 550 mln usd are secured by the assets of its Transwestern Pipeline Co.
Enron also said it is still committed to its merger with Dynegy Inc, announced on Nov 9.
"We continue to believe that this merger is in the best interests of our shareholders, employees, and lenders," said chairman and chief executive Kenneth Lay. "It offers the opportunity to create a formidable player in the merchant energy business with substantial growth prospects and a strong financial position."
JP Morgan Chase vice chairman James Lee said the bank will work with Enron and its other creditor banks "to develop a plan to strengthen Enron's financial position up to and through its merger with Dynegy", which is expected to close in the third quarter of 2002.
cl/gc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: Enron secures credit line as shares fall.

11/21/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 21 (Reuters) - Enron Corp. said on Wednesday it secured the remaining $450 million of its $1 billion credit line and reaffirmed its commitment to an agreement to be taken over by rival Dynegy Inc.
Facing a crisis of confidence, Enron said it is in active talks with its other lenders to restructure its debt obligation and had pushed back the deadline for repaying a $690 million loan obligation to mid-December.
"We continue to believe that this merger is in the best interests of our shareholders, employees, and lenders," Enron Chairman and Chief Executive Ken Lay said in a statement.
Enron shares were down 28 percent after noon on Wednesday, after being down 33 percent earlier in the day. Its shares fell about 23 percent on Tuesday amid concerns over its liquidity and growing questions over whether the proposed takeover by Dynegy would go ahead.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron stock free-fall continues

11/21/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
HOUSTON (AP) - Shares of embattled Enron Corp. plunged another 32 percent Wednesday morning as analysts and investors continued to doubt the once-mighty energy trader's ability to recover lost business and investor confidence.
In a report released Wednesday, Goldman Sachs & Co. analyst David Fleischer became the latest to question Enron's future, saying that an SEC filing by the Houston-based company earlier this week "raised new issues about liquidity and the ability of the company to even finance itself over the next several months."
Analysts are also questioning whether Dynegy Inc.'s planned dlrs 8.9 billion acquisition of Enron will survive given the latest revelations.
Documents filed with the Securities and Exchange Commission by Enron late Monday restated the company's third-quarter earnings and stated that it may have to repay a dlrs 690 million debt by next week because of decreased credit ratings.
The filing also noted that Enron's financial woes have led to a "reduced level of transaction activity" with the company by trading partners.
Enron shares fell 23 percent Tuesday, then dropped another dlrs 2.25, or 32 percent, to dlrs 4.74 Wednesday in extremely heavy trading on the New York Stock Exchange.
Fleischer said Enron's Nov. 16 cash balance of dlrs 1.2 billion is inadequate to meet remaining debt obligations.
Fleischer acknowledged, however, Enron's efforts to renegotiate next week's due date for the dlrs 690 million debt, which was triggered Nov. 12 when the company's credit rating was downgraded to BBB-, saying that there are indications that Enron's banks may be willing to roll current maturities over and even make new equity investments.
Michelle Foss, director of the Energy Institute at the University of Houston, said this latest round of troubles had to raise concerns about whether the Dynegy-Enron deal will be pulled off.
"It doesn't look like it's going to be able to happen," Foss said. "It did look like a decent idea when they proposed the merger, but today I'm sure they'll look at it and see if they can salvage their attempt to buy Enron."
Shares of Dynegy were off dlrs 2.55 to dlrs 39.15 in trading on the NYSE.
---
Tobacco suits by Venezuela, Brazil's Espirito Santo dropped
MIAMI (AP) - Health care cost-recovery lawsuits against major U.S. cigarette makers by Venezuela and the Brazilian state of Espirito Santo have been dismissed.
"This is another important reminder to American plaintiffs' lawyers that a state court won't ignore the overwhelming number of decisions by federal courts rejecting these lawsuits," William S. Ohlemeyer, Philip Morris Cos. vice president, said Tuesday after the decisions.
Attorneys for several foreign governments have filed an assortment of lawsuits in U.S. federal and state courts in an attempt to find some legal mechanism that withstands judicial scrutiny.
Russia and other Brazilian states are among the foreign governments that have sued in Miami, where a verdict of dlrs 145 billion was awarded to Florida smokers against the five biggest U.S. cigarette makers.
Ecuador's suit in Miami was withdrawn earlier when another state judge announced his intention to dismiss it.
----
General Motors of Canada inks supplier agreement with Quebec rubber plants
Eds: Dollar figures are Canadian.
MONTREAL (AP) - General Motors of Canada has signed supplier agreements with a Quebec auto-parts maker that helped create about 800 jobs, news reports said Wednesday.
The deal with Saar-Gummi Automotive Group in Magog, Quebec, is part of General Motors' commitment to offset the jobs that will be lost when it shuts down its car assembly factory in Boisbriand, Quebec, next year, killing 1,400 jobs.
GM did not reveal the value of the contracts, but German-based Saar-Gummi said Tuesday it has made a dlrs 40 million investment in its seven Magog plants, doubling its workforce to 1,600 employees from 800 since last summer.
The factories make molded rubber parts for cars, such as the rubber strips and molding found along the doors of vehicles. Most of the production is sold to GM, and goes into 56 GM plants in Canada, the United States and Mexico.
The products will be used in several models including the Chevrolet Avalanche, GMC Envoy, Saturn VUE and Cadillacs.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Closes On $450M Secured Credit Line

11/21/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -(Dow Jones)- Enron Co. (ENE) closed on the remaining $450 million of a previously announced $1 billion in secured credit lines and said it is in active discussions to restructure its debt to improve liquidity.
In a press release Wednesday, Enron said the $450 million credit facility is secured by the assets of Enron's Northern Natural Gas Co.
A $550 million credit facility, secured by the assets of Enron's Transwestern Pipeline Co., closed Nov. 16. The proceeds are being used to supplement short-term liquidity and to refinance maturing obligations.
The company said it was informed by the lead bank on the facility that the maturity on its $690 million note payable obligation will be extended to mid-December. Enron expects the extension to be finalized shortly.
Dow Jones Corporate Filings Alert reported Monday that Enron is currently preparing a restructuring plan aimed at taking aggressive steps to rationalize the company's existing cost structure, accelerating the process of divesting noncore businesses and assets and restructuring scheduled maturities of debt and other obligations.

Enron's credit lines are from J.P. Morgan, the investment-banking arm of J.P. Morgan Chase & Co. (JPM), and Salomon Smith Barney, the investment-banking arm of Citigroup Inc. (C).
Enron also reaffirmed its commitment to the merger with Dynegy Inc. (DYN). On Nov. 9, Enron and Dynegy signed a definitive merger agreement that would give Enron shareholders 0.2685 share of a Dynegy share. The merger is expected to close by the end of the third quarter of 2002.
On Monday, Enron filed its Form 10-Q for the third quarter, which reflected a wider loss by 3 cents a share. The energy company previously reported a loss of $618 million, or 84 cents a share, on revenue of $47.6 billion for the third quarter ended Sept. 30.
-Stephen Lee; Dow Jones Newswires; 201-938-5400

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: UPDATE 1-Enron shares fall further on credit concerns.

11/21/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 21 (Reuters) - Enron Corp. shares tumbled 33 percent in early trading on Wednesday, following a 22.8 percent drop on Tuesday, amid concerns over the company's liquidity and growing questions over whether the proposed takeover by Dynegy will go ahead.
Enron's shares were down $2.29 to $4.70 in early trading on the New York Stock Exchange. The stock was the biggest loser by percentage and the most active stock on the NYSE.
"The Dynegy deal will take a long time and a lot of things could happen over that time period. Dynegy did their homework, but if they missed anything, they have a number of exit opportunities," said Fulcrum Global Partners analyst Michael Barbis.
Dynegy was not immediately available for comment.
Wall Street analysts said Enron is losing market share because of credit concerns from its trading partners and questions over Dynegy Inc.'s takeover offer. Enron warned on Monday it could be forced to pay by next week a $690 million debt triggered by a credit downgrade last week.
"Enron is definitely losing market share on credit concerns. Cash needs to run the buisness have now increased. The market perceives Enron as needing more cash," said Barbis.
On Monday, Enron disclosed it is up against a deadline of Nov. 26 to deliver collateral against the debt owed to a third party in one of its many partnerships.
If not, the partner has the right to liquidate all of the assets of the partnership, which include a Brazilian natural gas company that Enron was counting on selling to raise $250 million in cash.
Enron is working to make alternative payment arrangements, since it can ill-afford to pay the debt now. Enron has already already maxed out its $3 billion credit line, secured roughly $2 billion in loans and is looking for more cash to stay afloat.
On Monday, the Houston-based company also reduced previously reported 2001 third-quarter earnings by 3 cents per share and increased reported earnings for the first 9 months of the year by a penny per share.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: Enron shares tumble on credit concerns.

11/21/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 21 (Reuters) - Enron Corp. shares tumbled 19 percent in opening trade on Wednesday, amid concerns over the company's liquidity and growing questions over whether the proposed takeover by Dynegy will go ahead.
Shares were down $1.33 to $5.66 in early trading on the New York Stock Exchange.
Wall Street analysts said Enron is losing market share because of credit concerns from its trading partners and questions over Dynegy Inc.'s takeover offer. Enron warned on Monday it could be forced to pay by next week a $690 million debt triggered by a credit downgrade last week.
"The Dynegy deal will take a long time and a lot of things could happen over that time period. Dynegy did their homework, but if they missed anything, they have a number of exit opportunities," said Fulcrum Global Partners analyst Michael Barbis.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Business
Upgrades and Downgrades
Rhonda Schaffler, Charles Kadlec

11/21/2001
CNNfn: Market Coverage - Morning
(c) Copyright Federal Document Clearing House. All Rights Reserved.
RHONDA SCHAFFLER, CNNfn ANCHOR, MARKET CALL: Time now for upgrades and downgrades.
Salomon Smith Barney downgrades Microsoft (URL: http://www.microsoft.com/) to neutral from outperform saying the company`s earnings estimates too aggressive in light of the economic conditions.
Goldman Sachs, as we heard from Chris, removing three energy firms; Enron (URL: http://.www.enron.com/) , Dynegy (URL: http://www.dynegy.com/) and Williams (URL: http://www.williamsenergy.com/) , from the recommended list.
Dynegy was expected to buy the troubled Enron. It is still, but it`s rated market perform now as is Enron. Williams rated market outperform. Goldman says it`s concerned about Enron`s ability to recover from the loss of significant business deals and sees no positive catalysts for the entire group largely due to the problems in Enron.
On the upside, Deutsche Bank is raising Xerox (URL: http://www.xerox.com/) to buy from market perform saying it`s pleased with the company`s turnaround strategy. We`re going to talk about that in detail when we speak with the analyst who made that call in just a moment.
First, we want to take a look at how these stocks are trading. Entire group is down with the exception of Xerox. It`s up 15 cents.
Peter Ausnit is imaging analyst at Deutsche Bank Alex. Brown and joins us.
And thanks for joining us here on MARKET CALL. What is it about Xerox you like?
PETER AUSNIT, IMAGING ANALYST, DEUTSCHE BANK ALEX. BROWN: Well I think the company`s really put its liquidity concerns behind it and now investors can look at the long-term picture, which is much brighter.
CHARLES KADLEC, J&W SELIGMAN: Peter, it`s Chuck Kadlec. Good morning. Is this is a heroic recommendation here? Is this - should we consider this more of a speculative investment or is this something that a conservative investor ought to be interested in?
AUSNIT: I think investors should be interested in this if, over the next several quarters - in the near-term, the conditions are still quite difficult but over the long-term it`s not that speculative. Xerox has a large install base, a tremendous sales and service force and can probably return to industry standard margins.
KADLEC: As you say, this probably depends on management`s ability to execute here. Why do you believe this management is going to be able to execute their strategy?
AUSNIT: Well their track records during the turnaround has been fairly strong and the strategy has made a lot of sense. They`ve sold a lot of businesses. They`ve done most of the things they promised to do such as bring on new third party equipment financing and they`re going to bring on a new CFO as well.
SCHAFFLER: Peter Ausnit of Deutsche Bank Alex. Brown, thanks for joining us.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: RESEARCH ALERT-Enron, Dynegy cut by Goldman.

11/21/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 21 (Reuters) - Goldman Sachs said on Wednesday it removed merger partners Enron Corp. and Dynegy Inc. from its "recommended list" and downgraded the stocks to "market perform."
Goldman said it cut Enron's 2001 earnings estimate to $1.35 a share, and cut the 2002 estimate to 50 cents a share amid concerns about "new and major" liquidity issues, and the company's ability to recover the business that has been lost.
The firm said the cash infusion from Dynegy "appears inadequate to restore the confidence of Enron customers."
It said Dynegy and Williams Cos Inc. have "excellent long-term prospects," but valuations throughout the sector may be under pressure until Enron's issues are resolved.
Shares of Enron closed at $6.99 on Tuesday, while Dynegy closed at $41.70. Shares of Williams closed at $29.26.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Gets Extension on $690 Mln Note Due Next Week (Update1)
2001-11-21 12:38 (New York)

Enron Gets Extension on $690 Mln Note Due Next Week (Update1)

     (Updates with amount of debt in fourth paragraph.)

     Houston, Nov. 21 (Bloomberg) -- Enron Corp., whose shares had
dropped 92 percent this year amid a financial crisis, said lenders
extended to mid-December the payment date on a $690 million note
due next week.

     Enron, which agreed to be bought out by rival energy trader
Dynegy Inc. in a transaction now valued at more than $23 billion,
said earlier this week a drop in its credit rating may force it to
repay the $690 million note. The repayment would strain cash
reserves Enron needs to back its trading operations, investors and
analysts said.

     The Houston-based company didn't say in its release who holds
the note, which is owed by an affiliated partnership that owns
Brazilian natural-gas assets and was backed by Enron.
     The note is held by a group of banks led by the Citibank unit
of Citigroup Inc., Standard & Poor's said in a press release
yesterday.

      Enron also is in discussions with other lenders on a
restructuring of its debt, the company said in a statement
distributed by PR Newswire.

     ``We believe the interests of Chase and Enron's other primary
lenders are aligned in this restructuring effort,'' James Lee,
vice president of JP Morgan Chase & Co., said in the Enron
statement. ``We will work with Enron and its other primary lenders
to develop a plan to strengthen Enron's financial position up to
and through its merger with Dynegy.'' Morgan has been advising
Enron on its merger with Dynegy.

     Enron said yesterday it may have to pay $9.15 billion in debt
due by 2003, suggesting the company may run out of cash before the
merger closes. Dynegy has said the merger should close before the
end of the third quarter of 2002.

      Enron said in a regulatory filing that it has less than $2
billion in cash or credit lines.

     Shares of Enron, the most active stock in U.S. trading, fell
$1.79, or 23 percent, to $5.20 in midday trading. Before the
announcement that it had renegotiated the $690 million note, its
shares had fallen as much as 42.78 percent, the lowest level in
more than a decade.

     Dynegy fell $2.50, or 6 percent, to $39.20. Shares of
ChevronTexaco Corp., which owns 26 percent of Dynegy, rose 49
cents to  $87.02

Enron, Dynegy Shares Fall 2nd Day on Threat to Buyout (Update2)
2001-11-21 11:49 (New York)

Enron, Dynegy Shares Fall 2nd Day on Threat to Buyout (Update2)

     (Adds analyst comment in fourth paragraph.)

     Houston, Nov. 21, (Bloomberg) -- Shares of Enron Corp., the
biggest energy trader, and Dynegy Inc. fell for a second day on
concern Enron may run out of cash before its takeover by Dynegy
can be completed.

     Enron tumbled as much as 33 percent, and Dynegy dropped as
much as 6.7 percent. Enron's bonds also fell. The company's 6.4
percent notes maturing in July 2006 were bid at 62 cents and
offered at 66 cents, traders said. They sold at about 72 cents
yesterday.

     Institutional investors sold shares of both companies after
Goldman, Sachs & Co. analyst David Fleischer downgraded them to
``market perform'' from his ``recommend'' list, other analysts
said.

     The Dynegy bid ``did not eliminate customer concerns about
Enron's liquidity and long-term viability,'' Goldman Sachs said
in its report. ``We now believe that it will be difficult for
Enron shares to generate strong returns until it is clear that
Enron can operate on a normal basis without having to provide
cash or letters of credit to back routine transactions.''

     Fleischer also cut his 2002 profit estimate for Enron to 50
cents from $1.35. Enron had been expected to make $1.90 next
year, the average estimate of 16 analysts surveyed by Thomson
Financial/First Call.

     Enron said Monday it may have to pay $9.15 billion in debt
due by 2003, suggesting the Houston-based energy trader may run
out of cash. The company said in a regulatory filing it has less
than $2 billion in cash or credit lines.

     It also surprised some investors by saying a drop in its
credit rating may force it to repay a $690 million note next
week. Enron said yesterday the terms of the notes, which it
guaranteed for an affiliated partnership that owns Brazilian
natural-gas assets, are being renegotiated and that it had a
``verbal indications'' that the maturity of the notes will be
extended.

     The company's dealings with affiliated partnerships led to
earnings restatements, credit-rating cuts, a federal
investigation and a management shakeup. Dynegy plans to complete
its buyout by October, and Enron may have to ask lenders to
restructure payment schedules.

     Mirant Corp., Aquila Inc. and other big energy traders are
doing fewer transactions with Enron as concerns increase about
its credit rating and ability to finance daily business,
executives said yesterday.

     Enron's stock fell $2.28, or 32 percent, to $4.71 in
late-morning trading. Earlier, it touched $4.67, its lowest price
in more than a decade. The shares have plummeted 92 percent this
year. Dynegy fell $2.70, or 6.5 percent, to $39.00. The shares
had dropped 26 percent this year.

U.S. Equity Movers: Cardiac Science, Enron, Guidant, TriQuint
2001-11-21 10:24 (New York)

U.S. Equity Movers: Cardiac Science, Enron, Guidant, TriQuint

     New York, Nov. 21 (Bloomberg) -- The following is a list of
companies whose shares are moving in U.S. markets Wednesday, Nov.
21. The stock symbol is in parentheses after the company name.

Major Moving Stocks:

     Enron Corp. (ENE) fell $1.54, or 22 percent, to $5.45 and
traded as low as $5.44. The energy trader shares fell for a second
day on concern Enron may run out of cash before its takeover by
Dynegy Inc. (DYN) can be completed.

Other Moving Stocks:

     Cardiac Science Inc. (DFIB) rose 51 cents, or 16 percent, to
$3.65 and traded as high as $3.89. The maker of equipment used to
restore a normal heartbeat to patients in cardiac arrest said the
San Diego City Council approved an agreement for the company to
deploy automated external defibrillators in the region. The
company made the announcement in a press release distributed by PR
Newswire. Officials couldn't immediately be reached to comment.

     Guidant Corp. (GDT) rose $4.18, or 8.9 percent, to $51 and
traded as high as $51.50. The maker of products to treat heart
disease said a study showed implantable defibrillators cut deaths
by 30 percent in heart-attack survivors, potentially expanding the
$1.9 billion market for the product.

     Portal Software Inc. (PRSF) fell 34 cents, or 15 percent, to
$1.89 and traded as low as $1.64. The provider of Internet-billing
programs said in a release distributed by Business Wire that it
forecasts a loss of 9 cents to 10 cents a share in the fourth
quarter ending Jan. 31. The company is expected to lose 11 cents,
the average estimate of analysts surveyed by First Call. Officials
couldn't be reached to comment.

     TriQuint Semiconductor Inc. (TQNT) fell $1.99, or 10 percent,
to $17.56 and traded as low as $17.35. The communications-
equipment chipmaker said it would report fourth- and first-quarter
results at the low end of previous forecasts. TriQuint was cut to
``neutral'' from ``buy'' in a report by U.S. Bancorp Piper Jaffray
Cos. analyst Samuel May.

Tickers: ENE DFIB GDT TQNT

     Money flows, the difference between the value of trades made
at a higher price than the previous trade and those made at a
lower price, may also appear for some stocks. These inflows and
outflows show whether people are willing to pay more for a stock
that's rising, or to sell a stock that's falling for less. If not
it's a signal the share price may soon change direction.

Enron, Dynegy Shares Fall 2nd Day on Threat to Dynegy Bid
2001-11-21 09:57 (New York)

Enron, Dynegy Shares Fall 2nd Day on Threat to Dynegy Bid

     Houston, Nov. 21, (Bloomberg) -- Shares in Enron Corp. and
Dynegy Inc. fell for a second day on concern Enron may run out of
cash before its takeover by Dynegy can be completed.

     Enron fell $1.37, or 20 percent to $5.62 in early trading.
Dynegy fell $1.95, or 4.7 percent, to $39.75.

     Enron bonds extended declines. The company's 6.4 percent
notes maturing in July 2006 were bid at 60 cents and offered at 68
cents, traders said. They traded at about 72 cents yesterday.

Enron Corp. Cut to `Market Perform' at Goldman Sachs
2001-11-21 08:46 (New York)

     Princeton, New Jersey, Nov. 21 (Bloomberg Data) -- Enron Corp. (ENE US)
was downgraded to ``market perform'' from ``recommend list'' by analyst David
N Fleischer at Goldman, Sachs & Co.

Earnings estimates:  Period       Previous estimate     New estimate
per share   (USD)    FY 2001      1.80                  1.35
                     FY 2002      2.15                  0.50

Enron Says Lenders Extend $690 Mln Note Payment to Mid-December
2001-11-21 12:10 (New York)

Enron Says Lenders Extend $690 Mln Note Payment to Mid-December

     Houston, Nov. 21 (Bloomberg) -- Enron Corp. said its lenders
extended to mid-December the payment date on a $690 million note,
giving the debt-laden energy trader more time to restructure its
finances.

     Enron said it's still committed to a takeover by Dynegy Inc.
The company said it secured the remaining $450 million of a
previously announced $1 billion credit line.

     Enron shares pared losses after the announcement of the debt
extension. The stock fell $1.54, or 22 percent, to $5.45 in midday
trading.

Plunge Says End Is Near at Enron

By Peter Eavis <mailto:peavis@thestreet.com>
Senior Columnist
11/21/2001 12:32 PM EST
Enron (ENE <http://tscquote.thestreet.com/StockQuotes.jhtml?tkr=ENE>:NYSE - news <http://tscquote.thestreet.com/BBNews.jhtml?tkr=ENE> - commentary <http://find.thestreet.com/cgi-bin/texis/cmttkrfind/results.html?tkr=ENE&site=tsc> - research <http://thestreet.multexinvestor.com/search.asp?Ticker=ENE> - analysis) <http://www.riskgrades.com/clients/thestreet/index.cgi?tickers=ENE> shares plunged a second straight day Wednesday as fear mounted that the struggling energy trader's bailout merger plan will unravel.
A potentially lethal cash crunch appears to be gripping Enron, even though its planned acquirer Dynegy (DYN <http://tscquote.thestreet.com/StockQuotes.jhtml?tkr=DYN>:NYSE - news <http://tscquote.thestreet.com/BBNews.jhtml?tkr=DYN> - commentary <http://find.thestreet.com/cgi-bin/texis/cmttkrfind/results.html?tkr=DYN&site=tsc> - research <http://thestreet.multexinvestor.com/search.asp?Ticker=DYN> - analysis) <http://www.riskgrades.com/clients/thestreet/index.cgi?tickers=DYN> has injected $1.5 billion of cash, and banks have opened new credit lines. An Enron collapse would cause weeks of dislocation in the energy markets that would damage other energy traders, and it would cause big losses for the Houston company's creditors.
Just before noon EST, Enron announced in a press release that it had extended to mid-December a $690 million obligation that was due next week. It also said that it had agreed with its bankers to draw down the remaining $450 million of a previously announced $1 billion secured credit line that has J.P. Morgan Chase as its lead banker.
Investors have been fleeing Enron since the company last month disclosed a $1.2 billion writedown to unwind some related-party hedging transactions. The Securities and Exchange Commission is probing Enron deals with related parties. The October disclosure made investors uneasy because it suggested the company hadn't been forthcoming about the true state of its finances, and it showed that Enron was facing serious liquidity problems.
Those fears were temporarily quieted earlier this month when Enron agreed to be acquired by smaller rival Dynegy. But Enron's disclosure Monday that it faces additional earnings and financing troubles renewed the rush to the exits. In the Wednesday release, Enron CEO Ken Lay said his company was still committed to the merger: "We continue to believe that this merger is in the best interests of our shareholders, employees and lenders." Dynegy later issued a press release indicating it is "continuing our confirmatory due diligence" regarding the merger. Neither Enron nor Dynegy returned calls seeking comment.
After plunging 23% Tuesday to $6.99, Enron was down a staggering 34% at one point Wednesday. It moved slightly higher after the midday press release to trade at $4.90. Enron shares have lost more than 80% of their value since the company issued its third-quarter earnings release last month. Dynegy dropped $2.44, to $39.26, though it remains substantially above premerger levels.
At the heart of Enron's trouble is the sense that the company isn't letting on the full extent of its troubles. The selloff in Enron shares began in earnest Oct. 16, when the company disclosed in an earnings conference call that it would take a $1.2 billion writedown to unwind some related-party transactions. Critics of the company said those deals, in which the company did business with separate entities involving Enron managers, raised serious ethical and disclosure issues.
The Dynegy merger was taken as a vote of confidence for Enron, since as a big trading partner Dynegy would appear to have a solid grasp of Enron's situation. As a result, shares in both companies rallied after the deal's announcement. But Monday's disclosure that Enron faced $690 million in bond payments next week reignited worries that the company faced steeper challenges than it has detailed. According to a Merrill Lynch report cited in The New York Times Wednesday, Dynegy wasn't aware of the $690 million obligation. Critics of the deal wondered whether Enron had told Dynegy about all its obligations. <http://www.thestreet.com/markets/detox/10003860.html>
Liquidity fears have also been rekindled by information contained in a filing of quarterly results that show the company consumed as much as $5 billion of cash in recent weeks. By the end of 2002, Enron has to find around $9 billion to pay back various obligations. It had $1.2 billion in cash on hand as of Nov. 16, according to the filing.
Tellingly, Dynegy shares haven't plunged along with Enron, suggesting that investors see a collapse of the merger as catastrophic for Enron but not for Dynegy. At current levels, Enron shares are trading at more than a 50% discount to the Dynegy offer.
J.P. Morgan has taken a leading role in helping Enron. It has lent funds and it helped restructure the $690 million obligation. The bank's stock was down 78 cents to $38.62. "We will work with Enron and its other primary lenders to develop a plan to strengthen Enron's financial position up to and through its merger with Dynegy," said James Lee, a top banker at Morgan, in the Enron release.

From CBS.MarketWatch.com, online at:

DYNEGY, ENRON SAY MERGER TO PROCEED

By Myra P. Saefong

1:52 PM ET Nov 21, 2001

WASHINGTON (CBS.MW) -- Merger partners Enron and Dynegy restated their
commitment Wednesday to completing a deal, on the heels of embattled
Enron's announcement that its lead lender granted it more time to pay
off a $690 million note set to come due next week.

"We are continuing our confirmatory due diligence and working to
accelerate the regulatory approvals required to complete the merger,"
said Chuck Watson, Dynegy's chairman and chief executive,  in a
statement.

Shares of Enron (ENE) recovered slightly in afternoon  trading but
remained under pressure.

On heavy volume, the stock -- which had touched $4 earlier in the
session -- was down $1.83 to trade at $5.16, a new 10-year low. Some 84
million shares had changed hands.

Enron declined 23 percent Tuesday after the company revealed the
upcoming debt deadline and restated its earnings.

Meanwhile, Dynegy shares lost $1.83 to stand at $39.87.

Enron said that the lead bank on the $690 million debt agreed to extend
the maturity date to mid-December, which will give the company time to
restructure the facility, and added it expects to further restructure
its debt.

"We ... believe we can identify a mutually beneficial restructuring to
enhance our cash position, strengthen our balance sheet, and address
upcoming maturities," said Jeff McMahon, chief financial officer, in a
statement.

J.P. Morgan Chase & Co. said it and other lenders are committed to
helping Enron improve its financial position.

Also, Enron reaffirmed its commitment to a merger with Dynegy and said
it closed on a previously announced $450 million line of credit from
J.P. Morgan, collateralized by the company's Northern Natural Gas Co.

Enron -- which is being acquired by its smaller rival Dynegy (DYN) at a
fire-sale price -- revealed in a Securities and Exchange Commission
filing Monday that it had to pay off or refinance $690 million in debt
obligations by next Monday or risk triggering nearly $4 billion in
additional payments.

If Enron had missed that deadline and didn't post collateral, investors
had the right to demand immediate liquidation of the assets of one of
Enron's limited partnerships, the unusual business entities at the
center of the company's murky transactions currently under
investigation.

The SEC filing of Monday also contained yet another restatement of
financial results on the heels of a similar filing that disclosed more
than four years of restated earnings figures.
<http://cbs.marketwatch.com/news/story.asp?guid=%7B35D690E0%2D13BE%2D43D9%2D9644%2D1B1CF4896115%7D>

Earlier Wednesday, Goldman Sachs lowered its rating on Enron's stock to
"market performer" from its "U.S. recommended list," citing "major"
liquidity issues and concerns over whether the company can recover the
business it has lost.

CIBC World Markets also cut Enron to a "hold" from a "buy."

Commerzbank weighed in Wednesday, saying Enron's viability is in doubt.

"We believe the filing clearly shows that Enron remains in a precarious
financial position and its status as a going concern is much in doubt,"
analysts Andre Meade and Andrew Smith wrote. "It appears that Enron's
situation could worsen in a number of ways."

Though Enron's most recent disclosures shed more light on the fiscal
situation, Meade and Smith characterized the information as "piecemeal."

"It appears that the full extent of Enron's problems is not currently
known," they said in a note, cautioning clients against investing in
Enron.


I apologize for being tardy.  I can have my IRS to you by Monday.


Peter, the summary is very helpful.  Perhaps, we should drop the summary into
the monthly report?  Please talk to Julia about that.  I want to make it as
efficient as possible.  Mark


I do know Susan so I could probably approve this request.  However, in my
staff meeting on Monday ( I know that Katherine was there, and not you), one
of the major points that I made centered around my approval of requests for
EOL access.  We can discuss when we get together on Friday morning.  Susan
needs to put her managers name at the bottom of this form, and the manager
should  okay this as well.  --Sally
---------------------- Forwarded by Sally Beck/HOU/ECT on 04/13/2000 07:14 PM
---------------------------

From:  Information Risk Management/HOU/ECT

Subject: Your approval is requested

	Security Resource Request System
Application Approval
Please review and act upon this request. You have received this eMail because
you are listed as an approver on the original request.
			Instructions
For: 	Susan M Scott
Request	Original:
Application Name:	EOL - Backoffice (US)
Request Type:	Grant
Role(s):	EOL- Bridge Monitor, EOL- Data Manager, EOL- Product Data Manager,
EOL- Reports, EOL- Stack Manager
Comments:	I was sent an email with my log-on and password and then sent a
subsequent email telling me to disregard. When I cold booted my computer and
tried to log-on I was unable to. I need access ASAP as I am supporting a
trader who does most of his deals on EOL.		Review the request in the Request
section at left.
			For more information regarding who the request is for, do the following:
			Click on the name for PeopleFinder info
			See the Further Information section below
			In the Approval Section, select Approve or Reject, enter comments as
necessary and click [Submit].

	Further Information

Requestor:			Susan M Scott/HOU/ECT
Manager:
Request Date:	04/13/2000 11:14:18 AM
RC #:	1839	WO #:
Company #:	413	Priority:	High
General Comments:


Thank you, Marcia.

	Marcia A Linton
	10/10/2000 02:57 PM

		 To: Jeff Dasovich/NA/Enron@Enron
		 cc:
		 Subject: Conference Call re: Commissioner Massey's Questions

---------------------- Forwarded by Marcia A Linton/NA/Enron on 10/10/2000
02:56 PM ---------------------------

Marcia A Linton
10/09/2000 02:25 PM

To: Steve Walton/HOU/ECT@ECT, Tom Hoatson/HOU/EES@EES, Tom
Mcnamara/EFS/EES@EES, Dan Staines/HOU/ECT@ECT@ENRON_DEVELOPMENT, James D
Steffes/NA/Enron@Enron, Tom Delaney/Corp/Enron@ENRON, Joe
Hartsoe/Corp/Enron@ENRON
cc: Jeff Brown/NA/Enron@Enron
Subject: Conference Call re: Commissioner Massey's Questions

A conference call has been set up for Wednesday, October 11 at 10:45 am
Central time to discuss a response to Commissioner Massey's questions at the
Edison Electric Institute meeting.  The call in number is 877-322-9648, Host
Code (for Jeff only) is 620623, Participant Code (for everyone else) is
601911.  Conference room EB-47C1 has been reserved for this call.

If you have any questions regarding this call, please give me a call at Ext.
33226.

Thanks,
Marcia


I just left you a voice-mail stating that I am available this morningor(even
better) Monday morning.