You may have already read this but thought I'd forward on just in case.  MW

 -----Original Message-----
From: 	Vignaroli, Donald
Sent:	Thursday, October 25, 2001 9:15 AM
To:	Bowers, Janet; Brennan, Lorna; Darveaux, Mary; Fritch, Bret; Graham, Charlie; Joyce, Jane; Kirk, Steve; Sebesta, Chris; Swett, Larry; Thurber, Bob; Winckowski, Michele
Subject:

How Enron Blew It
Less than a year ago, the Houston-based energy behemoth had everything: money, power, glitz, smarts, new ideas, and a CEO who wanted to make it the most important company in the world. Now its stock is down, wall street is bearish, and the CEO is gone. What went wrong?
by Mimi Swartz </mag/issues/authors/mimiswartz.php>
THE ENRON SKYSCRAPER NEAR THE SOUTH END OF HOUSTON'S DOWNTOWN feels like the international headquarters of the best and the brightest. The lobby in no way resembles the hushed, understated entryways of the old-fashioned oil companies, like Shell and Texaco nearby. Enron, in contrast, throbs with modernity. The people hustling in and out of the elevators are black, white, brown; Asian, Middle Eastern, European, African, as well as American-born. They are young, mostly under 35, and dressed in the aggressively casual uniform of the tech industry-the guys wear khakis, polo shirts, and Banana Republic button-downs. Almost preposterously fit, they move through the building intently, like winners. Enron is nothing if not energetic: A Big Brother-size TV screen frantically reports on the stock market near a bank of elevators, while another hefty black television relaying the same news greets people entering from the garage. A sculpture of the corporate symbol, an E tipped at a jaunty angle, radiates colors as it spins frenetically on its axis; a Starbucks concession on the ground floor keeps everyone properly caffeinated. Multicolored, inspirational flags hang from the ceiling, congratulating Enron on its diversity and its values; one more giant banner between elevator banks declares Enron's simple if grandiose goal: "From the World's Leading Energy Company to . . . The World's Leading Company!"
For a while, that future seemed guaranteed, as Enron transformed itself from a stodgy, troubled pipeline company in 1985 to a trading colossus in 2000. It was a Wall Street darling, with a stock price that increased 1,700 percent in that sixteen-year period, with revenues that increased from $40 billion to $100 billion. "The very mention of the company in energy circles throughout the world creates reactions ranging from paralyzing fear to envy," notes a 2001 report from Global Change Associates, a firm that provides market intelligence to the energy business.
This Enron was largely the creation of Jeff Skilling, a visionary determined to transform American business. Hired sixteen years ago as a consultant by then-CEO Ken Lay, Skilling helped build a company that disdained the old formula of finding energy in the ground, hauling it in pipelines, and then selling it to refineries and other customers. Instead, it evolved into a company that could trade and market energy in all its forms, from natural gas to electricity, from wind to water. If you had a risky drilling venture, Enron would fund it for a piece of the action. If you wanted your megacorporation's energy needs analyzed and streamlined, Enron could do the job. If you were a Third World country with a pitiful infrastructure and burgeoning power needs, Enron was there to build and build. Basically, if an idea was new and potentially-and fantastically-lucrative, Enron wanted the first crack. And with each success, Enron became ever more certain of its destiny. The company would be the bridge between the old economy and the high-tech world, and in February of this year, Skilling reaped his reward when he succeeded Lay as chief executive officer. Enron, says Skilling, "was a great marriage of the risk-taking mentality of the oil patch with the risk-taking mentality of the financial markets."
The Enron story reflects the culture that drove American business at the end of the twentieth century. Like the high-tech companies it emulated, Enron was going to reinvent the American business model and, in turn, the American economy. Maybe it was natural that this Brave New World also produced a culture that was based on absolutes: not just the old versus the new, but the best versus the mediocre, the risk takers versus the complacent-those who could see the future versus those who could not. The key was investing in the right kind of intellectual capital. With the best and the brightest, a company couldn't possibly go wrong.
Or could it? Today Enron's stock trades at around $35, down from a high of $80 in January. The press cast Enron as the archvillain of California's energy crisis last spring, and Skilling caught a blueberry pie in the face for his relentless defense of the free market. A long-troubled power plant project in India threatened the company's global ambitions. Telecommunications, in which Enron was heavily invested, imploded. Wall Street analysts who once touted the company questioned its accounting practices. Some of the change in Enron's fortunes can be attributed to the economic downturn in uncertain times that has afflicted all of American business. But the culture that the company created and lived by cannot escape blame.
ENRON, JEFF SKILLING SAYS, HAD "a totally different way of thinking about business-we got it." At Enron, in fact, you either "got it" or you were gone-it was as simple as black and white. It is not coincidental, then, that the color scheme of Skilling's River Oaks mansion mirrors the corporation he once headed. Here, the living room's white walls shimmer against the mahogany floors. Black leather trims the edge of snowy carpets. Billowy sofas set off the jet-black baby grand. In the entry, white orchids cascade from a black vase on a black pedestal table that in turn pools onto cold, white marble. There is only one off-color note: After almost twenty years, Jeff Skilling is no longer associated with Enron, having resigned abruptly after just six months as CEO. Once, Skilling was hailed as the next Jack Welch (General Electric's masterful CEO), as one of Worth magazine's best CEO's in America (anointed in 2001), and even as a daredevil who hosted the kind of unchained adventure junkets in which, a friend told BusinessWeek, "someone could actually get killed." Today, he sounds more like Ebenezer Scrooge on Christmas morning. "I had no idea what I'd let go of," Skilling says of all the personal sacrifices he made while retooling Enron.
From a black chair in the white library, across from a huge black and white photograph of his daughter and two sons, Skilling clarifies. The demands of working 24-7 for Enron caused him to ignore his personal finances. Divorced, he lived in a 2,200-square-foot house without a microwave or a dishwasher. He almost missed his brother's wedding. "Learning a foreign language-I never learned a foreign language!" he exclaims. He never once took his youngest son to school. "I'm interested in the kids. You don't do kids in fifteen-minute scheduling." Travel: "You can't go to Africa for a week and get anything out of it!" Skilling includes the study of architecture and design on his list of missed opportunities, then he stops and sighs. "I'm not sure that fulfillment in life is compatible with a CEO's job," he says, finally. Then his eyes lock on mine, and his voice, which had softened, regains its pragmatic edge. "It would have been easy to stay," he says. "But that would not have been good for me."
He's a smallish, ruddy-faced man who keeps himself at fighting weight, handsome in the way of corporate titans, with piercing cheekbones and that assiduously stolid gaze. But the impatience Skilling once reserved for cautious underlings and dull-witted utility company executives is now targeted at reporters who have labeled his resignation "bizarre" and associates who are bitterly skeptical of his need for family time. His shrug stretches the limits of his shimmering blue button-down, and his matching blue eyes look put upon. "I'm surprised," he says, "that people have so much trouble understanding this."
PEOPLE WHO PASSED THROUGH DOWNTOWN HOUSTON in the late eighties or early nineties couldn't help but notice a funny and, for its time, novel scene unfolding throughout the workday at the base of the Enron Building. From nine to five and before and after, you could see people slipping out of the pristine silver skyscraper to smoke. They perched on the chrome banisters or lurked near the glass doors at the entry, puffing like mad. They always looked hurried and furtive, even ashamed. Whatever people knew about Enron in those days (and most people didn't know much), it was often associated with that scene: Enron boasted one of the first nonsmoking corporate headquarters in Houston, and there couldn't have been clearer evidence of its break with the energy world of the past. What macho engineer would have put up with such humiliation?
But this company was a child of another time, that period in the mid-eighties when chaos enveloped the gas business. Federal deregulation of natural gas turned a steady, secure industry, in which gas pipeline companies frequently enjoyed a monopoly in portions of the areas that they served, into a volatile free-for-all. The situation was compounded five years later by federal deregulation of the pipeline business. So it happened that a gentlemanly gas pipeline company, Houston Natural Gas (HNG) found itself under attack from Coastal Corporation, Oscar Wyatt's less than gentlemanly firm. HNG was then run by Lay, a sturdy, taciturn former economics professor and Transco chief operating officer who had a passion for military strategy. (His doctoral thesis at the University of Houston was on supply and demand in the Vietnam War.) Lay, who was from Missouri and never succumbed-at least outwardly-to Texas brashness, had done well enough: Thanks to canny expansions, HNG's pipelines stretched from Florida to California and throughout the state of Texas.
HNG fended off Coastal, but to protect the company from other takeover attempts, Lay nimbly engineered the sale of HNG in 1985 to a friendly Nebraska pipeline concern called InterNorth, one of the largest pipeline companies in the country at the time. Then, a funny thing happened: HNG started acting in a way that would characterize the company for years to come-a lot like Coastal. What the Nebraskans blithely labeled "the purchase" was being called "the merger" back in Houston, and before long, following some particularly brutal politicking between Omaha and Houston, the company's center of gravity started shifting toward Texas, and shortly after that, Ken Lay was running a new company called Enron. "Over time it became clear that Lay had a better vision of the future," says one person associated with Enron at that time. "He never fought change. He embraced change."
Lay had won, but what exactly did that mean? Enron was saddled with massive debt from the takeover attempt, and thanks to deregulation, no longer had exclusive use of its pipelines. Without new ideas-for that matter, a whole new business plan-the company could be finished before it really even got started.
LIKE MANY PEOPLE WHO TEAMED UP WITH ENRON IN THE EIGHTIES, Jeff Skilling had spent a lot of time in the Midwest, and he was self-made-at fourteen he had been the chief production director at a start-up TV station in Aurora, Illinois. (His mother would drop him off there every day after school.) "I liked being successful when I was working, and I was smart," he told BusinessWeek earlier this year. But unlike many of his Enron colleagues, Skilling wasn't deliberate and soft-spoken and happy to go home at five o'clock; he was anxious and excitable, and nothing, but nothing excited him more than what he would come to call "intellectual capital." He loved being smart, and he loved being surrounded by smart people. He graduated from Southern Methodist University, went into banking-assets and liability management-and took on Harvard Business School, where he graduated in the top 5 percent of his class. Then Skilling took the next step on what was then the new, souped-up path to American success: He joined Manhattan's McKinsey and Company as a business consultant, and that is where Ken Lay found him in 1985.
It is often said of Lay that his instincts for hiring the best are flawless, and his choice of Skilling probably saved the company. Skilling was above all an expert at markets and how they worked. While everyone else was worrying about the gluts and the shortages that defined the gas industry, he alone saw the parallels between gas and other businesses. And so in a world where credit was nearly impossible to come by, Skilling came up with what he called the Gas Bank, which contractually guaranteed both the supply and the price of gas to a network of suppliers and consumers. Enron would not be a broker but a banker. It would buy and sell the gas itself and assume the risk involved. And Enron would make money on transactions, much like an investment bank would.
Skilling worked up some numbers and found them "absolutely compelling." Then the McKinsey consultant took the idea to a meeting of about 25 Enron executives. He had a one-page presentation. "Almost to a person," Skilling says, "they thought it was stupid." Almost. After Skilling left the meeting dejected, he walked Ken Lay to an elevator and apologized. Lay listened and then said, "Let's go."
The Gas Bank was not an overnight success. For months Skilling woke up in a cold sweat, sure he had ruined not only his career but the careers of dozens of colleagues who had assisted him. In fact, he had come upon one of those divides that seem to define his life: "I believed this whole world would be different, a huge breakthrough" is the way Skilling puts it today, and even if he is typically immodest, he was right. Fairly soon after launching, the company sold $800 million worth of gas in a week. True to Skilling's character, success turned out to be a matter of old versus new: He says the joke around Enron was that if a company's CEO was under fifty, "We were in." And he was in too: In 1990 Skilling finally left McKinsey and joined Enron as the head of Enron Finance Corporation, a new division created just for him. In 1991 that company closed a deal that earned $11 million in profit. After that, says Skilling, "we never looked back."
Skilling and Lay also realized that the Gas Bank couldn't work unless it had a trading component. Myriad trades were needed to build the market that would make the project go. But by buying and selling enormous quantities of gas, Enron not only constructed a market but almost instantly came to dominate it. The company had the best contacts, the best intelligence, and the best access to supplies. That, in turn, attracted more customers who wanted to be part of the play. With so many customers in its pocket, Enron could better predict the direction of the market and could use that knowledge to make trades for its own benefit-Enron could in effect bet on which way the price of gas would go, as one might do with pork bellies or soybeans, but with startling accuracy, thereby generating profits higher than anyone could have ever imagined.
THIS CHANGE COULD NEVER HAVE OCCURRED without another change Skilling had made: He created, within Enron, a new culture to match its new trading business. The idea was to build a "knowledge-based business," which demanded a skill set not exactly prized by Enron's employees from the old HNG days. Most were deliberate, cautious, responsible, somewhat defensive people, most of them men, of course-the kind of people you'd expect to find working in an industry regulated by the federal government. But now the company needed bolder people for its bold new era: that included anyone who wanted to make money-lots of money-for themselves and for the company. "Enron was going to create a niche for itself or die," one former executive explains. "The people who had narrow views eventually were forced out, because if they had narrow views about other things, they had narrow views about the market."
Skilling wanted smart people but not just any smart people. He wanted the smartest people from schools like Harvard, Stanford, and maybe, Rice. And because his firm was now acting more like a bank than a pipeline company, he wanted to draw from the pool of recruits that would be attracted to the biggest and best investment banks, like Merrill Lynch or Credit Suisse First Boston. In addition to being smart, Enron people were also supposed to be "aggressive." You were right for Enron if you didn't want to wait until you were thirty to close your own deals or move up in an organization.
You could see what he was looking for on "Super Saturdays" at the Houston headquarters: eight fifty-minute interviews with ten minute breaks in between-the company might herd as many as four hundred people through in just one day. They were scored from 1 to 5 on their smarts, their problem-solving ability, their passion for hard work, and what at Enron was called "a sense of urgency." People who scored less than 2.5 were scratched. The shrewdest candidates knew how to work Enron before they were even hired: These were the types that automatically turned down the company's first offer, knowing Enron would come back with more. The starting salary was around $80,000. Maybe it wasn't a fortune-yet-but the signing bonus, about $20,000, was more than enough for a lease on the obligatory Porsche Boxster or one of the lofts being renovated close to downtown. (Enron people didn't live in far-flung suburbs. Suburbs were uncool and too far from the office.)
For the lucky winners, Enron offered the corporate equivalent of a gifted-and-talented program. New associates learned the latest techniques for structuring energy deals, and there were rotations at Enron offices around the globe. The hours were long, but every possible need was taken care of. A company concierge handled all the things important people couldn't be bothered with: picking up dry cleaning or prescriptions, shining shoes, cleaning the house, planning a vacation. Of course, a lot of people who worked for Enron never got to take vacations-they were too busy making money-but they could use the company gym and the company's personal trainers. If they were overweight or wanted to quit smoking, they could join Enron's Wellness Program. Massages were offered six days a week, from seven in the morning until ten at night. "They were so cutting edge," rhapsodizes someone involved with the company health care program at the time. "They really thought about the psychology and what it took to keep these people going."
Skilling handed out titles analogous to those at Wall Street firms-analysts, associates, directors, and managing directors-but everyone knew that those titles didn't really matter. Money did. Instead of competitive salaries and decent bonuses, Enron offered competitive salaries and merit-based bonuses-with no cap. "If you really worked hard and delivered results, you could make a lot of money," says Ken Rice, who stayed with Enron for 21 years until resigning recently as the head of the company's faltering broadband division. Or, as the saying goes, you got to eat what you killed. Gas traders with two or three years of experience could wind up with a $1 million bonus. And the more you produced, the closer you got to Jeff: Real hot dogs joined him glacier hiking in Patagonia, Land Cruiser racing in Australia, or off-road motorcycling in a re-creation of the Baja 1,000 race, ending at a spectacular Mexican villa. "Every time he'd speak, I'd believe everything he'd say," one loyalist says.
And why not? By 1995 Enron had become North America's largest natural-gas merchant, controlling 20 percent of the market. But at a company where the buzzword was "aggressive," that was no place to stop: Skilling and Lay believed the Gas Bank model could easily be applied to the electricity business. Firmly committed to the notion that a deregulated market meant better service at lower prices for consumers (and untold profits for Enron), they began barnstorming the country, pressing their case with entrenched power company presidents (who, with their multimillion-dollar salaries and monopoly service areas, had little incentive to change) and energy regulators (who were somewhat more receptive, thanks in part to Enron's generous lobbying efforts).
But the biggest winner of all was probably Jeff Skilling. In 1997 Ken Lay made him the president and chief operating officer of the company. By then, the division known as Enron Capital and Trade Resources was the nations largest wholesale buyer and seller of natural gas and electricity. The division had grown from two hundred to two thousand employees, and revenues from $2 billion to $7 billion. "Mr. Skilling's experience so far with the turmoil in the industry has convinced him that he is on the right track," the New York Times noted. Everyone would certainly have thought so: Enron and Skilling had totally transformed one industry and were well on their way to transforming another.
"FIRING UP AN IDEA MACHINE; Enron Is Encouraging the Entrepreneurs Within," sang the New York Times in 1999. "In the staid world of regulated utilities and energy companies, Enron Corp is that gate-crashing Elvis," crowed Fortune in 2000. Wall Street was demanding tech-size growth on a tech timetable, and Enron, in 2000, obliged with second quarter earnings of $289 million, up 30 percent from the previous year. That year the company seemed to discover a market a minute: Under Skilling, Enron was trading coal, paper, steel, and even weather. No one blinked when a London wine bar became an Enron client. People drank more in warm weather than cold, so why not buy a hedge against the usual winter downturn?
But most exciting to the financial world was Enron's entry into high-tech communications. Because of the company's marketing dominance, EnronOnline became another overnight success, handling $335 billion in commodity trades online in 2000. Enron, as usual, made its money on the spread between the bid price and the asking price. Then there was the broadband business: To Enron, trading excess capacity in large, high-speed fiber-optic networks (empty lanes on the fabled information highway) wasn't that different from trading the capacity of natural gas pipelines. So Enron created a market for what the industry calls bandwidth. Soon after, it also announced a twenty-year deal with Blockbuster to deliver movies on demand electronically to people in their homes. Enron looked like a company that couldn't lose. "Its strategy of building businesses, shedding hard assets, and trading various commodities can help it do well even in an uncertain market," BusinessWeek insisted.
There was, however, another reason Enron did so well in such a short time: the company's hard-nosed approach toward its customers. The old notion of customer service was based on the long haul-you had to nurse and coddle customers to keep them. But Enron had new markets and new ideas-customers had to come to it. Over time, the company stopping referring to its business clients as customers and began calling them "counterparties."
Skilling wanted the biggest profits on the shortest timetable: Gains were maximized by creating, owning, and then abandoning a market before it became overtaxed and overregulated. So if you wanted to launch a high-risk venture quickly-such as Zilkha Energy's new high-tech approach to drilling for oil-you got your financing from Enron because a bank would take forever to underwrite the project, if it ever would. But because Enron invented its markets and subsequently dominated them, Enron could set the terms of its deals, from the timeline to the method of accounting to whether the deal happened at all.
While many businesses used what was known in the industry as "mark-to-market accounting," for instance, Enron used it on an unprecedented scale. The company priced their deals at current market value-but it was always Enron's idea of the market value; companies that balked at their pricing didn't get deals. And while old-fashioned companies spread their profits out like annuities over a period of years, Enron took most of its profit up-front. However many millions would be made on a deal that covered several years, they went on the books in the current year. If a few analysts thought there might be something fishy about what they called "subjective accounting," investors didn't particularly care as long as the profits rolled in. As the market fluctuated and the landscape changed, the company might abandon a project that had been in the works for months because its profit margins weren't going to be high enough. "Enron is known for leaving people at the altar," says one former employee. Winning the highest possible profits for the company could even extend to Enron's attitude toward charity. When a fundraiser for the Houston READ Commission, a literacy group, called on Enron for a contribution, it was suggested that he start raising money for Enron's competing literacy charity: "Even the person who was supposed to give money away for Enron was supposed to make money for Enron," he says.
As Enron became more and more successful, the culture Skilling had created took on a dark side: The competition turned inward. As one member of the Enron family put it, "It became a company full of mercenaries." The change started at the bottom. As Enron's domination of the energy market grew, most of the recruiting frills fell away. New associates were treated much like the commodities the company traded. Global Change's Enron spies reported overhearing orders like "I need a smart person-go buy me one" or "Buy me an intelligent slave, quick." Enron had never been the kind of place where people sang to you on your birthday, but now the workaholism bordered on self-parody: A Random Acts of Kindness program lasted only a few months. It was too disruptive. People couldn't get their work done.
And, of course, Enron had a program for institutionalizing creative tension. The Performance Review Committee, which had initially been installed by Skilling in the Capital group, became known as the harshest forced ranking system in the country. Employees were rated on a scale of one to five, and those with fives were usually gone within six months. (The PRC's nickname quickly became "rank and yank.") It was a point of pride that Skilling's division replaced 15 percent of its workforce every year. As one Skilling associate put it, "Jeff viewed this like turning over the inventory in a grocery store." Skilling's approach to business-get in and get out-had become Enron's attitude toward its workers. In time, it would become many workers' attitude toward the company. Teamwork, never that valuable in a trading culture, went the way of the eyeshade and the abacus. If protocol required an Enron higher-up to come from Europe to help with a project in the Third World, he might help-or he might not, depending on whether another, potentially more lucrative project was pending elsewhere.
Everyone felt the pressure to perform on a massive scale at massive speed: "They were so goal oriented toward immediate gratification that they lost sight of the future," says one former employee. Anyone who couldn't close deals within a quarter was punished with bad PRC scores, as were the higher-ups who had backed them. Past errors and old grudges were dredged up so often as new ammunition in PRC meetings that the phrase "No old tapes" became an Enron clich?. "People went from being geniuses to idiots overnight," says one former Enron executive.
In such a hothouse, paranoia flowered. New contracts contained highly restrictive confidentiality agreements about anything pertaining to the company. E-mail was monitored. A former executive routinely carried two laptops, one for the company and one for himself. People may have been rich at Enron, but they weren't necessarily happy. One recruiter described the culture this way: "They roll you over and slit your throat and watch your eyes while you bleed to death."
BEFORE JEFF SKILLING COULD TRANSFORM ENRON from the world's leading energy company into the world's leading company, he had to make one more change: Just as he had done ten years before, Skilling had to purge the company of its remaining old order. Where Enron once prized cautious executives who dealt with tangible assets like pipelines, it now valued bold executives who dealt with intangible assets. Pipelines, power plants-they may have been Enron's pride, but Skilling wanted them gone. Expensive, long-term building projects had no place when Wall Street was devoted to quick profits and enormous returns on investment capital, and Skilling knew it. "It wasn't the time for long-term approaches," an Enron executive says of Wall Street's mood. "It was the technology era."
To rid Enron of the last vestiges of its past, Skilling had to take on Rebecca Mark, long considered his rival for the CEO's job. Mark was for many years the poster child for the Enron way: Young, attractive, aggressive-her nickname was Mark the Shark-she came from sturdy Midwestern stock but had the requisite Harvard MBA. Mark was largely responsible for the success of Enron International, the asset-heavy side of the company where she developed $20 billion worth of gas and power plants, which accounted for 40 percent of Enron's profits in 1998. For this she reaped breathtaking compensation-one Enron executive estimated $10 million-and adoring press clips, including two appearances on Fortune's list of the fifty most powerful women in corporate America.
But then Mark ran into trouble with a gas-fired power plant in Dabhol, India, one of the largest ever constructed. She had played the game the Enron way: Taking Enron into a new market, she had finagled low import taxes (20 percent instead of the usual 53) and hung in through 24 lawsuits and three changes in government. But the time and expense needed to make India and other Enron plants around the globe successful did not mesh with Enron's goals, and Skilling's impatience with Mark grew.
Forcing Mark out, however, was no easy matter. Key executives left, divisions were dismantled, but she remained. The truth was Enron didn't mind firing lower-level employees, but it hated to fire the kind of aggressive, relentless people it tended to promote. The company preferred humiliation-keeping a director in his cubicle, say, but failing to include him in the glamour deals, or kicking someone upstairs with a fancy title. (One particularly difficult executive won a few years at graduate school, gratis.) A company as smart as Enron could probably deduce too that dispatching one of the most visible businesswomen in the country would provoke a public-relations disaster. So Lay and Skilling did something classically Enronian: They gave Mark her own company. Despite Skilling's contempt for asset-heavy businesses, Enron spent more than $2 billion to buy a run-of-the-mill British water utility that could serve as Enron's entry into the emerging world of water privatization. Mark was put in charge of making Enron, yes, the world's greatest water company. Azurix, as the new business was called, looked like another sure thing: Its IPO in 1999 raised $695 million.
But Mark had to succeed on Enron's increasingly abbreviated timetable in a business fraught with political and emotional complexities. Water is not like gas or electricity-owners and governments are a lot less willing to give it up, even for lots of money. The company stumbled, layoffs commenced, and confidence evaporated. By August 2000 the stock price, which had started out at $19, had fallen to $5. Mark's resignation followed, and Azurix, much diminished, was folded into Enron. "I think it's best for Rebecca to start afresh," Lay, who had been a mentor to Mark, told the Wall Street Journal. Or as one critic put it, "They were more interested in destroying the old culture than running a business."
As 2000 drew to a close, Skilling was in total command. In December Ken Lay announced the inevitable: "The best time for the succession to occur is when the company is doing well," he told the press. "Enron is doing extremely well now." In February 2001 Jeff Skilling took over the CEO's job.
ALMOST IMMEDIATELY THE TROUBLE STARTED. Enron's domination of the electric-power market made it an instant target in the California deregulation debacle. Both PBS's Frontline and the New York Times took on Enron, portraying the company as a heartless colossus that used its influence in Washington (Lay and Enron's political action committee are the top contributors to George W. Bush) to force old people on fixed incomes to choose between buying food or electricity. Skilling and Lay appeared on camera singing belligerent anthems to the free market, while another memorable scene juxtaposed one of the company's jackallike traders against a hapless state employee in California, as both tried to buy power online. The Times reported that Lay had tried to persuade a new federal commissioner to change his views on energy deregulation. The bad press was, to say the least, ironic: Just as the media was pounding Enron for its omnipotence, Wall Street was discovering its weaknesses. By late March the stock price had slid to $50 a share from $80 in January.
Within Enron, the asset-based divisions took the rap for the decline. (The India plant continued to be enormously costly, at least in part because of constant turnover within Enron's management team.) But the California situation was more visible and therefore more damaging, despite Enron's claim that the state had never built enough power plants to service its population and never properly managed those it had. "For three months Gray Davis did a very good job of blaming us," says Mark Palmer, a vice president for corporate communications. "We were a Texas company. There was a Texan in the White House. California was a state that didn't put him in office, and his biggest contributor was a Texas energy company. Performance is going to take care of our stock price. The truth will take care of Gray Davis." (California utilities still owe Enron $500 million, another reason stockholders might be panicky.) But more problematic than the crisis itself was Skilling's all too apparent lack of contrition. Facing down his critics, he cracked a joke comparing California with the Titanic. ("At least the Titanic went down with its lights on.")
But the biggest problem was Enron's telecommunications division, which had been responsible for at least one third of its heady stock price. Investors believed that Enron could revolutionize high-speed communications, just as it had revolutionized gas and power. Enron estimated the global market for buying and selling space over fiber-optic cable would grow from $155 billion in 2001 to $383 billion by 2004-but then the tech bubble burst. So too did the much-hyped movies-on-demand deal with Blockbuster. For the first time in its confoundingly successful life, Enron had nothing new to take to market. Like the popular high school girl who suddenly packs on a few pounds, Enron suddenly looked less alluring to Wall Street.
Skilling launched a campaign to keep Enron's most important cheerleaders, the stock analysts, in the tent, but he wasn't cut out to be a supplicant. During the reporting of first quarter profits, he called an analyst who challenged Enron's financial reporting an "asshole." When the company reported hefty second quarter profits, many analysts questioned whether those profits had come from the generation of new business or from the sale of old assets. Ignoring the growing chorus critical of Enron's accounting, Skilling promised, as he always had, that innovations were just around the corner. "There wasn't any positive news," Carol Coale, of Prudential Financial, says now. "Basically, he talked me out of a downgrade."
The business press, so generous in the past, turned surly. Fortune had asked in March whether Enron was overpriced. ("Start with a pretty straightforward question: How exactly does Enron make its money?") The routine cashing in of stock options that were about to expire by key executives was portrayed in the media as a fire sale. (Skilling had sold $33 million worth, Ken Lay and Ken Rice close to four times that amount.) Then the Wall Street Journal reported on a fund run by the CFO that had been a source of strife within the company. (It was essentially risk management against Enron's possible failures.) Every negative story seemed to produce a concurrent drop in the stock price: By late August it had fallen below $40. Enron, so institutionally unforgiving, finally got a taste of its own medicine. "When Wall Street is in love with a stock, they're forgiving of something like accounting," says Carol Coale. "When a company falls out of favor, all these issues carry more weight."
This fact was not lost on people inside the company, who suddenly started experiencing an attack of conscience. Those who had looked the other way as the most powerful Enron executives dumped their wives and married their secretaries or carried on flagrant interoffice affairs now saw the error of their ways. "It just created an attitude," one executive still at Enron says. "If senior people are doing that, why are we held to a higher standard? There was a real culture of 'We're above everyone else.'"
Loyalty had never been prized at Enron, so there was no reason to expect it now. An old-fashioned, slow-moving company like Exxon could demand hardship duty in Baku with the promise of greater rewards down the road. "But," as one Houston oilman explains, "if you have to negotiate a hardship duty with someone who doesn't have loyalty and has money, then you have a corporation that's better suited for good times than bad."
As it turned out, that description applied to Jeff Skilling too. As the stock price stubbornly refused to ascend, he made no secret of his unhappiness and frustration. Then, after a trip to visit the families of three employees killed at a plant in England, he had an epiphany: Life was short; for him, Enron was over. Ever stoic, Ken Lay returned to the CEO's office, named a new president, arranged a trip to New York to calm analysts and investors, and promised a kinder, gentler Enron in the future. Trading anything and everything was out. The company, Lay says, will still innovate but "innovate much closer to our core." As for the culture: "Things like the Performance Review Committee, I think we could have applied better. By trying to categorize people into so many different categories, you ended up creating a morale problem."
That Skilling's supposedly brilliant colleagues were as shocked at the news of his departure as the rest of the business community may be testament to their lack of emotional intelligence. Despite Skilling's lengthy tenure with Enron, he'd always been contemptuous of the long haul; he'd always believed in cutting losses and moving on. But now that he was abandoning them when the company was in trouble, it was different. "Even Jeff's biggest detractors wouldn't have wanted him to walk out the door," one loyalist admits.
But on the day we meet, Skilling is looking forward, not back. "Look," he says with finality, "ninety percent of my net worth is in Enron. Were my interests aligned with the shareholders? Absolutely."
Free of falling stock prices and shareholder pressures, he is nestling himself back into the world of ideas. His eyes flash as he talks about new technologies. "The first wave never gets it right," he says. "The stand-alone dot-coms didn't work, but the technological applications will create a second wave that will change the world." Houston, he promises, will become the world's center of commodity trading, and he intends to be a part of it. In fact, he is already shopping for office space.
"This is the second wave, and Enron's got it," he says, almost breathless. "There are thousands of people running around the streets of Houston that get it."


Key lawmaker doubts Skilling didn't know about debt shielding
<http://www.chron.com/cs/CDA/story.hts/special/enron/1250764>

Former traders for Enron start work under UBS
<http://www.chron.com/cs/CDA/story.hts/special/enron/1250804>

Two Enron executives will face more questions
<http://www.chron.com/cs/CDA/story.hts/special/enron/1250772>

Insurance costs for executives going up
<http://www.chron.com/cs/CDA/story.hts/special/enron/1250762>

Waxman asks probe of politics
<http://www.chron.com/cs/CDA/story.hts/special/enron/1250741>

Senator suggests outside firms for retirement plans
<http://www.chron.com/cs/CDA/story.hts/special/enron/1250722>

Law firm's Enron work comes under scrutiny
<http://www.chron.com/cs/CDA/story.hts/special/enron/1250709>

Enron lobbyist tried to craft political tool
<http://www.chron.com/cs/CDA/story.hts/special/enron/1249550>

Enron briefs
<http://www.chron.com/cs/CDA/story.hts/special/enron/1250714>


Due to the overwhelming response from Enron employees and contractors, today's blood drive appointments are completely full, and there are a large number of you who still wish to donate blood.  We are working diligently with the M. D. Anderson Blood Bank to schedule another day for blood donations, and you will be notified as soon as that date is secured.  For those of you who are interested in giving, please continue to either call the Enron Health Center, ext. 3-6100, to get your name on the waiting list or go to the donation line in front of the building.  We recognize and are grateful to the many of you who are wanting to give blood today, but ask that you be patient and understand our inability to accept walk-in donations at this time.

Thanks again for the tremendous outpouring of concern.


Here is the latest presentation we have on the structure of our deal.  If you
have any questions please call Don Black at (713) 853-4750. Thanks
Ben


ENA Legal Birthday Party today at 3:30 PM in EB 38C2.

Hope you can come!

(Please let me know if I've left anyone off of my list. Thanks!)

Holly Keiser
Enron Americas
Legal Department - EB 3887
713-345-7893 (ph)
713-646-3490 (fx)
Holly.Keiser@enron.com


Energy Committee Members:
Please find the agenda for tomorrow's energy committee meeting attached.
This is a critical time on the energy front.  We find ourselves both excited
and discouraged and have a number of things to share with you.

There have been some encouraging developments - the ISO approved the SVMG
proposal for an early notification system and are working on implementation,
which is expected by June 13.  This is something our committee plainly
expressed as necessary for business to survive through this crisis and is
something the SVMG advocated for on behalf of its members for the past month
or so.  Also, the first SVMG-NRDC joint energy webcast conducted last week
was a success.  Leslie Hummel will be available to provide feedback and
discuss next steps.

There are also a few things that make us very concerned.  Such as a proposal
from Speaker Hertzberg that has potential to severely raise rates for the
business class.  We need your help in devising an energy plan and a strategy
by which we can adress proposals such as this one.  We also need to hear
from you in devising a long range plan for the energy committee as we
re-tool the focus and tactics of the SVMG on energy.  Please review the
agenda.  If you have any questions or concerns, feel free to adress them by
responding to this e-mail or at tomorrow's committee meeting.  Thanks!

 - Energy Committee Agenda May 30.doc


Lake Benton 1, Strom Lake 2, VGR,  750kw STAR data is complete.

The Mon0206 file for all of June have been uploaded to STAR:
Fenner
Klondike
Mill Run
Monfort
Somerset
Trent

Have not received Desert Sky: will make it priority Monday morning.

Also, will complete Friday weekly report for posting

-John


Adam,

Our original agreement with UBS (Nevin & Goran) was that selected customer references would be permitted shortly before signing.  We would not want to allow this so early in the process when there is still some 6 weeks to signing and the Banks have not obtained final credit approval.  I have spoken to Nevin and reminded him of this understanding and he agrees that introducing uncertainty in the market this far ahead of signing is not beneficial for either the buyer or the seller.  He will speak to Jason Perkins and explain.

Amit

 -----Original Message-----
From: 	Umanoff, Adam
Sent:	Monday, June 04, 2001 4:41 PM
To:	Amit Walia/HOU/ECT@ENRON
Cc:	Metts, Mark; Horton, Stanley; Gates, Bob; Miller, Michael
Subject:	UBS Customer References

Attached is a short list of recommended U.S. customer references.  These four customers account for the bulk of our 2001 order book and we think provide a good cross-section of people for UBS to speak with.  I will wait to hear back from you before releasing this list to UBS.  Also, there are a number of other customers who, if I were UBS, I would want to speak with, including investors in our 750 projects (other than FPL) who as a group are not all that happy, and some of the other US developers.  We should anticipate requests to speak with those entities as well.  Adam

 << File: customerreferences6-01.doc >>


Rick,

I agree with Rick that three categories are sufficient--if the issues are substantive, they should either result in an increase in the capital price and a "Return below Capital Price" or a "Do Not Proceed" recommendation.  "Other RAC Comments" should highlight any issues succinctly, but are not a substitute for a recommendation and should be read irrespective of being highlighted on the cover page of the DASH.

Regards,

Dave

 -----Original Message-----
From: 	Carson, Rick L.
Sent:	Thursday, September 13, 2001 5:54 PM
To:	Buy, Rick; Gorte, David
Subject:	RE: DASH Classification - "Proceed - See Other RAC Comments"

 Rick:  Are you saying that you just want three DASH categories, i.e. 1) Proceed, 2) Do not Proceed and 3) Returns Below Capital Price  with no category for Issues, RAC Comments, etc.  RC

 -----Original Message-----
From: 	Buy, Rick
Sent:	Thursday, September 13, 2001 5:45 PM
To:	Carson, Rick L.; Gorte, David
Subject:	RE: DASH Classification - "Proceed - See Other RAC Comments"

i don't like this. we must make a decision. rick

 -----Original Message-----
From: 	Carson, Rick L.
Sent:	Thursday, September 13, 2001 2:38 PM
To:	Buy, Rick; Gorte, David
Subject:	DASH Classification - "Proceed - See Other RAC Comments"

As we discussed yesterday, in our review of our DASH recommendation vs. actual performance we found 36 DASHes that have been approved since late 1999 that carry the recommendation "Proceed - See Other RAC Comments".  Typically the RAC Comments describe substantial issues that must be resolved if the transaction is to be successful.

Given RAC's increased visability and accountability for portfolio performance, perhaps a more forceful description than "See Other RAC Comments" would be desirable which could be  something like:

		"Issues - Sr. Management Approval Required"

Therefore, the four DASH categories would be as follows:

	___  Proceed with Transaction

	____ Issues - Sr. Management Approval Required

	____ Returns Below Capital Price

	____ Do Not Proceed

The "See other RAC Comments" could be used as a footnote with an asterisk placed on any of the above categories where we wanted to call the reader's attention to our comment section.  We would, however, eliminate "See other RAC Comments"  as an official DASH classification category.

Please let me know what you think.  We can instantly make this change or any variation you would like in both the DASH Template and Library.
							Regards!
							Rick C.


Fred, this info was forwarded to you a while ago.  I sent it return receipt.
I never saw where you opened your e-mail.  I know you're been busy.
Thanks, Stella
---------------------- Forwarded by Stella L Morris/HOU/ECT on 03/03/2000
03:03 PM ---------------------------

	From:  Stella L Morris                           02/25/2000 08:35 AM

To: Fred Boas/HOU/ECT@ECT
cc: Howard B Camp/HOU/ECT@ECT, Robert E Lloyd/HOU/ECT@ECT, Daren J
Farmer/HOU/ECT@ECT
Subject: Re: 1/2000 Meter 9643 Three Rivers Issues

Fred, I hope this is the information that you needed to complete January
business.  I have already set up Track I.D. 80705 per your first request.
Thanks, Stella

---------------------- Forwarded by Stella L Morris/HOU/ECT on 02/25/2000
08:31 AM ---------------------------

Daren J Farmer
02/24/2000 06:58 PM
To: Stella L Morris/HOU/ECT@ECT
cc:
Subject: Re: 1/2000 Meter 9643 Three Rivers Issues

The purchase from Swift was shown at mtr 3405 during Dec and Jan.  I have
created a new deal (#204777) to add mtr 9643 to the deal.

Deal 114096 is the purchase from HPLR Liquids.  This purchase is on 138544
for Jan 2000 forward.

D

	From:  Stella L Morris                           02/24/2000 02:39 PM

To: Daren J Farmer/HOU/ECT@ECT
cc: Fred Boas/HOU/ECT@ECT, Howard B Camp/HOU/ECT@ECT, Robert E
Lloyd/HOU/ECT@ECT
Subject: 1/2000 Meter 9643 Three Rivers Issues

Fred is trying to set up accounting arrangments to cover the Swift deal.  Can
you please verify that you made this purchase from Swift?  If so, is there
another deal to replace deal #114096 of should this deal be extended into
January.    If I should forward this to someone else, please let me know.

Thanks for you help, Stella

---------------------- Forwarded by Stella L Morris/HOU/ECT on 02/24/2000
02:33 PM ---------------------------

Fred Boas
02/24/2000 11:25 AM
To: Stella L Morris/HOU/ECT@ECT
cc: Robert E Lloyd/HOU/ECT@ECT, Howard B Camp/HOU/ECT@ECT
Subject: 1/2000 Meter 9643 Three Rivers Issues

Stella:

The Swift deal is not pathed correctly in POPS.  I set up an accounting
arrangement on the 012-41500-02-015 contract with the Track ID 80705.  Would
you put the contract in POPS with the associated Track ID?

The transportation contract (012-41500-02-003) for the Liquids Replacement
gas is not POPS.  I looked in Path Manager and there is no deal for it
either.  In December, the deal for this gas was 114096.  Could you extend the
deal or get me the number for the new deal if there is one?  I need to set up
an accounting arrangement so I will need for you to verify the deal number
and transportation contract that this gas is supposed to go on.  When I set
up the accounting arrangement I will let you know what the Track ID is so you
can put the contract at meter 9643.

Let me know when all of this is done so that I can reallocate the meter.

Thanks,

Fred


[IMAGE]
 [IMAGE]    Search NYTimes.com  Today's News Past Week Past 30 Days Past 90 Days Past Year Since 1996
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   November 26, 2001  QUOTE OF THE DAY "I don't dream. I don't cry. But I get migraines."  ELLEN DUBE, an AIDS counselor at Hlabisa Hospital in South Africa.    HolidayShopping Holiday Shopping Take advantage of special offers and discounts -- on gifts, travel and luxury items from NYTimes.com's premium advertisers -- with the Holiday Shopping E-Mail.  Sign up now .     NATIONAL 3 Teenagers Held in Plot at Massachusetts School  Officials said a massacre may have been averted by their use of techniques and studies developed after the 1999 killings at Columbine High School.   For Most, Holiday Travel Is Light and Smooth  By most accounts the return trips home from the holiday weekend by plane, train, bus and automobile went smoothly.   As Attacks' Impact Recedes, a Return to Religion as Usual  Immediately after Sept. 11 Americans flooded to their local houses of worship, but polls now indicate that for most people the spiritual storm has passed.     MORE NATIONAL NEWS   [IMAGE]  INTERNATIONAL Hundreds of U.S. Troops Land 12 Miles From Taliban Stronghold  Hundreds of marines landed at a makeshift airfield near Kandahar on Sunday in the first major infusion of American ground troops into Afghanistan.   Fresh Fighting Erupts in Kunduz  Northern Alliance troops came under fire today on the streets of Kunduz, eventually pinning down a  group of Taliban holdouts who tried to break out of the newly fallen city.   An American Is Said to Be Killed During a Failed Prison Uprising  Surrendered Taliban troops staged a revolt Sunday at a prison where hundreds of them were being held under the control of the Northern Alliance.     MORE INTERNATIONAL NEWS    BUSINESS Cautious Optimism on Shopping  Shoppers went back to the malls after Thanksgiving, but it is still unclear whether they will spend enough to pull the economy from its downturn.   Barnes & Noble to Try to Squeeze Better Publisher Deals  Leonard Riggio, the chairman of Barnes & Noble, told analysts that his company might have to "persuade our suppliers to be fair to us."   Telecommunications Entrepreneur With a Colorful R?sum?  Gary Breshinsky, originally from suburban Long Island, set up a telecommunications network in Afghanistan in the late 1990's. Now he's considering going back.     MORE BUSINESS NEWS    TECHNOLOGY Europe Plans to Compete With U.S. Satellite Network  Countries are building independent satellite navigation networks, troubled that the G.P.S. system is run by the United States military.   Intel Unveils Chip Advances  Intel semiconductor design innovations will help it to continue doubling the performance of microchips every 18 to 24 months through the end of the decade.   Telecommunications Entrepreneur With a Colorful R?sum?  Gary Breshinsky, originally from suburban Long Island, set up a telecommunications network in Afghanistan in the late 1990's. Now he's considering going back.     MORE TECHNOLOGY NEWS    POLITICS Treasury Chief Sees an Economic Brightening  Faced with the likelihood the U.S. is about to be declared officially in a recession, Paul H. O'Neill said the economy was "poised for recovery."   Congress Divided on Stimulus Package  Bush administration officials are stressing corporate tax cuts and Democrats are insisting on new help for the unemployed.   Ashcroft to Testify Before Senate  Lawmakers critical of the Justice Department's anti-terrorism campaign will hear directly from the attorney general in early December.     MORE POLITICS NEWS    SPORTS Oakland Hammers Floundering Giants  In a game played in a driving rain, the sloppy, reeling Giants were thoroughly outclassed from start to finish by the Oakland Raiders.   Hurricanes Leave Questions to Others  With the season beginning its finishing kick, it is fair to wonder whether any team is good enough to give Miami a good game in the Rose Bowl on Jan. 3.   Redskins' Recovery Continues  Squandering a chance to take command of the N.F.C. East, the Philadelphia Eagles fell to the streaking Washington Redskins, who have won five straight.     MORE SPORTS NEWS    ARTS David Robertson: Rapport at the End of a Baton  The conductor of the Orchestre National de Lyon in France frequently takes assignments with America's top orchestras, and he's become an audience favorite and a reviewer's darling.   Are the Wizard's Numbers Just the Tip of the Iceberg?  "Harry Potter and the Sorcerer's Stone"  chases after the still elusive box office record set by "Titanic," which earned more than $600 million.   Power Meets Modern Art in Los Angeles  The first major exhibition from the collections of  Eli and Edythe Broad is now under way at the Los Angeles County Museum of Art.     MORE ARTS NEWS    NY REGION Nassau County Tries to Reach Budget Accord  Leaders in the Nassau County Legislature are considering a package of budget cuts and increases in property taxes in order to avert a state financial takeover.   Parking Garages Suffer From Manhattan Security Rules  Parking garage operators in Manhattan say that   in the aftermath of the World Trade Center   attack they, too, are suffering.   Landlord Kills Tenant and Tries to Commit Suicide, Police Say  A Queens landlord who had been feuding with a tenant beat her to death and then poisoned himself by swallowing a bottle of Drano, the police said.     MORE NY REGION NEWS    OP-ED  Justice, 200 Years Later   By BOB HERBERT  Last  month, New York State was ordered to pay the Cayuga Indians a sum which is believed to be the largest resolution of  an Indian land claim in U.S. history.   Kangaroo Courts   By WILLIAM SAFIRE  President Bush's initiative to create military tribunals turns back the clock on all   advances in military justice, through   three wars, in the past half-century.   Rebuilding a Ravaged Land   By M. ISHAQ NADIRI  Afghanistan has great potential for economic development.  There has been much devastation, but the country can be rebuilt.     MORE OP-ED  NEWS    About This E-Mail You received these headlines because you requested The New York Times Direct e-mail service. To sign up for other newsletters, cancel delivery, change delivery options or your e-mail address, see http://www.nytimes.com/email .   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[IMAGE]


I am here.. what are you up to sweetie?

 -----Original Message-----
From: 	raquel.nunes-thomas@us.abb.com@ENRON
Sent:	Tuesday, October 09, 2001 12:51 PM
To:	Thomas, Paul D.
Subject:	Hi

Hoon
are you there?


Holden,
You should expect a credit on your Amex.
Anna

-----Original Message-----
From: Cynthia Biggs [mailto:cynthia.biggs@travelpark.com]
Sent: Thursday, September 13, 2001 11:14 AM
To: Mehrer, Anna
Subject: RE: Travel Cancellation - Holden Salisbury 9/11

Hi Anna. I will give this ticket to accounting to send in for refund.
thanks
cynthia

> ----------
> From: 	Mehrer, Anna[SMTP:Anna.Mehrer@ENRON.com]
> Sent: 	Thursday, September 13, 2001 2:01 PM
> To: 	Cynthia (E-mail)
> Subject: 	Travel Cancellation - Holden Salisbury 9/11
>
> Hi Cynthia,
> Following is the itinerary that should be refunded to Holden. We will
> rearrange travel at a later date.
> Thanks,
> Anna
> -----Original Message-----
> From: TRAVEL AGENCY IN THE PARK, INC. (AGENTID00041979)
> [mailto:emailserver@pop3.amadeus.net]
> Sent: Tuesday, September 04, 2001 3:16 PM
> To: Mehrer, Anna
> Subject: ITINERARY CONFIRMATION FOR HOLDEN SALISBURY
>
>
> ITINERARY CONFIRMATION FOR HOLDEN SALISBURY
>
>   _____
>
>
>
>
>
>
>
>                                            DATE 04SEPTEMBER01
>
>                                            AGENT PK/PK BOOKING REF
> ZNJWOI
>
>
>
>
>
>   ENRON BROADBAND SERVICES                 SALISBURY/HOLDEN
>
>                                            ATTN: ANNA MEHRER
>
>                                            ENA 3WTC
>
>                                            ETKT RECEIPT
>
>
>
> SERVICE               DATE  FROM           TO             DEPART  ARRIVE
>
>
>
> UNITED AIRLINES       11SEP PORTLAND OR    DENVER CO      1231P   354P
>
> UA 492     H          TUE   INTERNATIONAL  DENVER INTL
>
>            NON SMOKING
>
>                             LUNCH                         NON STOP
>
>                             RESERVATION CONFIRMED         2:23 DURATION
>
>                   AIRCRAFT: BOEING 757-200/300
>
>                             SEAT 27B NO SMOKING CONFIRMED
>
>            ** CENTER SEAT CONFIRMED. AISLE/WINDOW UNAVAILABLE
>
>                ** CHECK-IN AT AIRPORT FOR BETTER SELECTION
>
>
>
> UNITED AIRLINES       13SEP DENVER CO      MONTROSE CO    800A    906A
>
> UA 7121    M          THU   DENVER INTL    MONTROSE COUNT
>
>                                                           NON STOP
>
>                             RESERVATION CONFIRMED         1:06 DURATION
>
>                             FLIGHT OPERATED BY UNITED EXP/AWAC
>
>                   AIRCRAFT: FAIRCHILD DORNIER 328
>
>                             SEAT 07F NO SMOKING CONFIRMED
>
>                ** CHECK-IN AT AIRPORT FOR BETTER SELECTION
>
>                         ** WINDOW SEATS CONFIRMED
>
>
>
> UNITED AIRLINES       13SEP MONTROSE CO    DENVER CO      410P    515P
>
> UA 7130    B          THU   MONTROSE COUNT DENVER INTL
>
>                                                           NON STOP
>
>                             RESERVATION CONFIRMED         1:05 DURATION
>
>                             FLIGHT OPERATED BY UNITED EXP/AWAC
>
>                   AIRCRAFT: FAIRCHILD DORNIER 328
>
>                             SEAT 09F NO SMOKING CONFIRMED
>
>                ** CHECK-IN AT AIRPORT FOR BETTER SELECTION
>
>                         ** WINDOW SEATS CONFIRMED
>
>
>
> UNITED AIRLINES       13SEP DENVER CO      PORTLAND OR    603P    731P
>
> UA 449     B          THU   DENVER INTL    INTERNATIONAL
>
>            NON SMOKING
>
>                             DINNER                        NON STOP
>
>                             RESERVATION CONFIRMED         2:28 DURATION
>
>                   AIRCRAFT: BOEING 757-200/300
>
>             ** NON-REFUNDABLE AIRFARE IS 912.12. THE LAST DAY
>
>              ** TO PURCHASE FOR FARE IS TODAY, 4SEP. I WILL
>
>                    ** WAIT FOR YOUR APPROVAL TO TICKET
>
>                 SEAT ASSIGNMENT IS AIRPORT CHECK IN ONLY
>
>                THIS IS A NON-REFUNDABLE FARE THAT REQUIRES
>
>                TRAVEL ON THESE SPECIFIC DATES AND FLIGHTS.
>
>                ANY CHANGES WILL RESULT IN A PENALTY AND/OR
>
>                          ADDITIONAL COLLECTION.
>
>            **************************************************
>
>          YOUR TICKET REFLECTS A NEGOTIATED DISCOUNT FROM THE TAP
>
>              THE PUBLISHED FARE FOR THIS TICKET IS $1236.50
>
>            **************************************************
>
>
>
> MISCELLANEOUS         11JAN HOUSTON TX
>
>                       FRI   ** THANK YOU FOR USING THE TAP **
>
>
>
> RESERVATION NUMBER(S)  UA/SX4JKC
>
>
>
> SALISBURY/HOLDEN  S0C0413R1073           TICKET:UA/ETKT 016 7032417455
>
>
>
> **********************************************
>
> INTL TVLRS: CARRY SOS WALLET CARD W/ENRON ASSISTANCE INFO
>
> CALL SOS MEDICAL EMERGENCY: IN US 800-523-6586
>
> CALL SOS MEDICAL EMERGENCY:INTL 215 245-4707 (COLLECT)
>
> *********************************************
>
> THIS IS THE PASSENGER RECEIPT FOR YOUR ELECTRONIC TICKET.
>
> PLEASE CHECK-IN WITH PHOTO IDENTIFICATION AND WITH
>
> EITHER (1) THIS RECEIPT OR (2) YOUR CONFIRMATION NUMBER.
>
> YOUR ETKT CONFIRMATION NUMBER IS: S X 4 J K C
>
> ALL FARES ARE SUBJECT TO CHANGE UNTIL TICKETED/PURCHASED
>
>
>
>   _____
>
>
>
> **********************************************************************
> 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.
> **********************************************************************
>


Group,

For the third day in a row (4th time this week) I have received an email or
call from Kathy at EPE asking the model to be resent because of simple
errors.  Typos in the model should be caught and corrected while checking out
with counterparties and running the CARP.  The ancillary service (spin) deals
need to sum into the ancillary section at the bottom...not with the regular
deal entry summary.  We need to use the reconciliation sheet when appropriate
(which has not been used since Feb--and this will haunt us when Houston tries
to check out March and April).  We do a good job trading for EPE and managing
their system but I am not impressed with our attention to detail for this
customer on deal entry.  I continue to see the same mistakes which suggests
that procedure questions exist.  Please ask myself or a senior member of the
group if you have any questions.  I look for us to improve going forward.

Thanks,

Bill
503-887-3449


Heard the Skilling meeting was postponed.  Here's the redraft of the
Exclusivity; I'm sending a draft of the consent to Raptor transactions down
shortly.

Travis McCullough
Enron North America Corp.
1400 Smith Street EB 3817
Houston Texas 77002
Phone:  (713) 853-1575
Fax: (713) 646-3490
----- Forwarded by Travis McCullough/HOU/ECT on 11/29/2000 07:34 PM -----

	"Stockbridge, Edward T" <tstockbridge@velaw.com>
	11/29/2000 03:56 PM

		 To: "McCullough, Travis (Enron)" <travis.mccullough@enron.com>
		 cc: "Collins, Christopher" <chriscollins@velaw.com>, "Wills, Anthony"
<awills@velaw.com>
		 Subject: Redraft of the Exclusivity Agreement

Travis:

 Please find attached a clean and redline version of the revised
Exclusivity Agreement, with the changes that we discussed.  The redline
shows changes from the draft submitted to us by eSpeed.

 Per our earlier conversation, you said that Andy was still thinking
about one open point, namely: Whether the definition of the Enron Platform
should be modified to anticipate some changes that may occur.  Specifically
I suggested that the requirement that the Enron Platform be "operated" by an
Enron Party be deleted, and leaving only the limitation of ownership.

 I have given Anthony comments on the series designation.  He will be
making other changes to the designation and will forward it to you directly.

 Please let me know if you have any questions or comments, or if I
can be of any further assistance.

 Best regards,

 Ted
          ++++++CONFIDENTIALITY NOTICE+++++
The information in this email may be confidential and/or privileged.  This
email is intended to be reviewed by only the individual or organization
named above.  If you are not the intended recipient or an authorized
representative of the intended recipient, you are hereby notified that any
review, dissemination or copying of this email and its attachments, if any,
or the information contained herein is prohibited.  If you have received
this email in error, please immediately notify the sender by return email
and delete this email from your system.  Thank You
 <<Nov 29 Exclusivity Agreement [by VE].DOC>>   <<Redline.rtf>>

 - Nov 29 Exclusivity Agreement [by VE].DOC
 - Redline.rtf


Mark:  Cargill is asking us to execute with Cargill's agent a document
permitting the agent to act for Cargill online and offline with respect to
financial trades.  Will we permit?

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
----- Forwarded by Sara Shackleton/HOU/ECT on 02/28/2001 02:15 PM -----

	Caroline Abramo@ENRON
	02/28/2001 12:31 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: RE: POA

---------------------- Forwarded by Caroline Abramo/Corp/Enron on 02/28/2001
01:28 PM ---------------------------

Caroline Abramo
02/28/2001 12:28 PM
To: Wendi LeBrocq/Corp/Enron
cc: Daniel Diamond/HOU/ECT@ECT, /HOU/ECT, Mog Heu/NA/Enron@Enron

Subject: RE: POA

Wendi/Sara-

This is a Power of Attorney agreement for Global Advisors.. The mentioned
traders will be executing on behalf of Cargill Incorporated...

Can you please go through this ASAP and let me know if anything in here is
problematic...

They would also like this to govern EOL transactions... will this be a
problem?

Thanks very much.

Regards,
Caroline Abramo
212 702 3910
---------------------- Forwarded by Caroline Abramo/Corp/Enron on 02/28/2001
01:20 PM ---------------------------

Joe_Lardy@cargill.com on 02/28/2001 11:51:16 AM
To: Caroline.Abramo@enron.com
cc:

Subject: RE: POA

What timing, I was just addressing the email to you.  The POA is
attached

-----Original Message-----
From: Caroline.Abramo@enron.com [mailto:Caroline.Abramo@enron.com]
Sent: Wednesday, February 28, 2001 11:47 AM
To: lardy, joe /xtwn
Subject: POA

Joe- whenever you can send.. I'll get my legal going on it...

Thanks and Regards,
Caroline

 - enron.doc


Further to some of my recent email attached are two templates for approval
forms. They take the same information, expect that one has drop-down menus.
Please have a look and give me your comments on contents, functionality....

Many thanks

Tomas


Shirley,

No problem.

Vince

Shirley Crenshaw
05/16/2000 09:14 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc: Kevin G Moore/HOU/ECT@ECT, William Smith/Corp/Enron@ENRON
Subject: Vacation

Vince;

If it is allright, I would like to take a day of vacation, Friday, May 19th.

Thanks.

Shirley


Start Date: 1/8/02; HourAhead hour: 18;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002010818.txt


i dont really know what he is going to do, i thought i was always the big cheese

 -----Original Message-----
From: 	Rybarski, Amanda
Sent:	Tuesday, January 22, 2002 10:26 AM
To:	Maggi, Mike
Subject:	RE:

REALLY, where is he going? Are you going to be the big cheese now?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Tuesday, January 22, 2002 10:25 AM
To:	Rybarski, Amanda
Subject:	RE:

i am staying also but john is not

 -----Original Message-----
From: 	Rybarski, Amanda
Sent:	Tuesday, January 22, 2002 10:25 AM
To:	Maggi, Mike
Subject:	RE:

no he's staying...what about you?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Tuesday, January 22, 2002 10:24 AM
To:	Rybarski, Amanda
Subject:	RE:

me too, is chris leaving

 -----Original Message-----
From: 	Rybarski, Amanda
Sent:	Tuesday, January 22, 2002 10:24 AM
To:	Maggi, Mike
Subject:	RE:

I wish...that would be my dream job!

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Tuesday, January 22, 2002 10:23 AM
To:	Rybarski, Amanda
Subject:	RE:

really, so who then, me?

 -----Original Message-----
From: 	Rybarski, Amanda
Sent:	Tuesday, January 22, 2002 10:23 AM
To:	Maggi, Mike
Subject:	RE:

yeah, but I don't know for who...I don't think I will be working for Chris.

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Tuesday, January 22, 2002 10:22 AM
To:	Rybarski, Amanda
Subject:	RE:

im glad to hear that, so are you going to be doing the same thing

 -----Original Message-----
From: 	Rybarski, Amanda
Sent:	Tuesday, January 22, 2002 10:21 AM
To:	Maggi, Mike
Subject:	RE:

Not at all...I just now got my offer letter...FINALLY.  What about you? Anything exciting?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Tuesday, January 22, 2002 10:20 AM
To:	Rybarski, Amanda
Subject:

anything exciting going on over there


How about this for a business model for an origination and trading outfit.

salesperson talks to customer
customer agrees to trade
salesperson phones trading desk and gets price (trading desk is London or NY
- NB: all lines are taped)
salesperson tell customer
customers says ok
salesperson says "done" to customer and trading desk
trading desk books deal, middle and back office processes kicks in, sends out
and chases up confirm etc
accounting process identifies value added by salesperson and gives them a
piece of the price as a credit
no bank accounts or signing authority in sales office
no accountants, middle office people or other similar humans in the sales
office, just sales people
all hedging and risk taking resident in trading books in NY or London

Can we not make this work ?
DP

To: Bjorn Hagelmann/HOU/ECT@ECT
cc: Sally Beck/HOU/ECT@ECT, Ted Murphy/HOU/ECT@ECT, Shona
Wilson/NA/Enron@Enron, David Port/Market Risk/Corp/Enron@ENRON, Mike
Jordan/LON/ECT@ECT, Robert Soeldner/LON/ECT@ECT, Tim
Poullain-Patterson/LON/ECT@ECT

Subject: Re: Authorised Traders : Montreal & Chicago

Bjorn

As discussed, given Joe's comments below, a note to confirm that this being
dealt with internally.

Rob Soeldner has made it clear to Joe that:

Enron places great importance on trading controls. These are non-negotiatable.
The suggested course of action is not an option
We aren't seeking to close any of the Agency offices given implemetation of
these controls.

Joe is not in yet - Rob will be discussing with him further when the US gets
in.

Of note - Joe is on the commercial side,  Marcelo Parra who is responsible
for the operational side is fully onboard for the operational changes made.

Regards
Andy

---------------------- Forwarded by Andrew Cornfield/LON/ECT on 09/11/2000
11:07 ---------------------------

Joe Robertson@MGUSA
08/11/2000 20:38
To: Tim Poullain-Patterson/LON/ECT@ECT
cc: Andrew Cornfield/LON/ECT@ECT, Lloyd Fleming/LON/ECT@ECT, Marcelo
Parra/NYC/MGUSA@MGUSA, Michael Farmer/EU/Enron@ENRON@ECT, Naomi
Connell/LON/ECT@ECT, Robert Soeldner/LON/ECT@ECT, Sam
Hainsworth/EU/Enron@Enron@ECT

Subject: Re: Authorized Traders : Montreal & Chicago

As a practical matter the procedures outlined are not workable. We need to
find a way to go forward that works and can satisfy all concerned.

Either the people in these offices can be entrusted to transact and execute
business or we should consider closing these offices and relocating some of
the people which I do not believe makes any sense at all.

Joseph E. Robertson, Jr.
Enron Metals & Commodity Corp.
520 Madison Avenue
28th Floor
New York, NY 10022
Tel: 212.715.5254
Fax: 212.715-2357
E-mail: joe.robertson@enron.com


mara,

could you put these volumes into a spread sheet and come up with a daily average?  Remember these are in therms so you need to take off one digit.  Let me know if you have any questions.  We need to get this done so that we can get a price to Portland my this afternoon.

thanks,

Kim


here you go,

tell me what you think.

i spent a lot of time on this


actually she wasnt mad at all

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 8:46 AM
To:	Maggi, Mike
Subject:	RE:

i was sick all weekend.  i didn't get out of bed until 7pm on saturday.  i watched a movie and went back to bed at 9.  yesterday i finally got out of bed at 1 and we went and looked at cars and stopped by the lovely outlaws.  so mine was boring.  how were things friday when you got home?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 8:44 AM
To:	Nelson, Michelle
Subject:	RE:

it was ok, i didnt really do anything, how about you

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 8:43 AM
To:	Maggi, Mike
Subject:	RE:

it's ok.  i guess.  everything is backwards and i can't get used to it.  i was up there earlier.  i didn't see where you guys are sitting.  how was your weekend?
 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 8:41 AM
To:	Nelson, Michelle
Subject:	RE:

terrible, yours?

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 8:40 AM
To:	Maggi, Mike
Subject:	RE:

yes, why wouldn't we be?  how is your new desk?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 8:39 AM
To:	Nelson, Michelle
Subject:

so are we still talking


Start Date: 4/13/01; HourAhead hour: 11;  No ancillary schedules awarded.
Variances detected.
Variances detected in Energy Import/Export schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041311.txt
!!!General SQL error.
Couldn't update; currently locked by user 'Admin' on machine 'NAHOU-TRDTS3'.
Table

---- Energy Import/Export Schedule ----
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/13/01
  TIE_POINT: FCORNR_5_PSUEDO
  INTERCHG_ID: EPMI_CISO_BUNNY
  ENGY_TYPE: FIRM
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 11 / Preferred:  12.00 / Final:  11.97)
  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/13/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_TOBY
  ENGY_TYPE: WHEEL

---- SC Trades Schedule ----
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/13/01
  TRADING_SC: NCPA
  PNT_OF_INTRC: ZP26
  SCHED_TYPE: ENGY
  PURCH_SALE: 2
  DEAL_NO: 1


It is 7 bucks, I am going around 6pm and I think they are playing in the tent
area.


See attachment.
---------------------- Forwarded by Kay Mann/Corp/Enron on 01/17/2001 09:27
AM ---------------------------

Kay Mann
11/03/2000 11:00 AM
To: ppipitone@andrews-kurth.com, pthompson@andrews-kurth.com
cc:

Subject: RE: Revised Change Order #4

---------------------- Forwarded by Kay Mann/Corp/Enron on 11/03/2000 11:03
AM ---------------------------

"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 11/02/2000 05:03:37 PM
To: "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>, "Shoemaker, Kent (GEAE)"
<kent.shoemaker@ae.ge.com>
cc:

Subject: RE: Revised Change Order #4

sorry

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Thursday, November 02, 2000 6:02 PM
To: Shoemaker, Kent (GEAE)
Subject: Re: Revised Change Order #4

Kent,

There isn't anything attached that I can open.  Am I doing something wrong?

Kay

"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 11/02/2000 04:42:40
PM

To:   "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>, "Johnson, Lee L (PS,
      SSEP)" <lee.johnson@ss.ps.ge.com>
cc:   "'aivancovich@andrews-kurth.com'" <aivancovich@andrews-kurth.com>

Subject:  Revised Change Order #4

Here is the Change Order number 4 that I should have sent out earlier.
Lee,
stated on the phone call today that there may be additional comments, so
please reply to all if there are so we can revise the Facility Agreements
accordingly.

Kent

-----Original Message-----
From: Shoemaker, Kent (GEAE)
Sent: Wednesday, November 01, 2000 4:21 PM
To: 'Kay.Mann@enron.com'
Subject: RE: GE Contract

Didn't I tell you - I love outside counsel!!!

See you tomorrow
Kent

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Wednesday, November 01, 2000 4:20 PM
To: Shoemaker, Kent (GEAE)
Subject: RE: GE Contract

CST.  That was right, right?

I'm going to have the outside lawyer involved for the purpose of turning
the revised draft, so long as you don't have an objection
(objecting=volunteering to turning the next draft!)

Kay

"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 11/01/2000 03:11:13
PM

To:   "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>
cc:

Subject:  RE: GE Contract

Is that 3:30 CST? If so, I'll be ready.

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Wednesday, November 01, 2000 4:08 PM
To: Stuart.Zisman@enron.com; kent.shoemaker@ae.ge.com;
Ben.Jacoby@enron.com; lee.johnson@ss.ps.ge
Subject: GE Contract

Gentlemen:

Attached is a draft of the facility agreement, without reference to WestLB.
It just came in, so I haven't reviewed it.

It looks like 330 tomorrow will work for this group, unless you tell me
otherwise.  I'll get back to you with the location.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 11/01/2000 03:04
PM ---------------------------

"Cope, Lori" <loricope@akllp.com> on 11/01/2000 03:00:50 PM

To:   "Kay Mann (E-mail)" <Kay.Mann@Enron.com>
cc:

Subject:  GE Contract

Enclosed please find clean and blacklined versions of the GE Contract.
The blackline of the Agreement identifies the changes from the draft I
sent you. Note that no blackline of the Exhibits was necessary because
it contained no references to WestLB.
Regards,
Paul

 <<HOU_554886_3.DOC>>  <<BL554888.DOC>>  <<HOU_554888_4.DOC>>
Paul J. Pipitone
Andrews & Kurth L.L.P.
4200 Chase Tower
600 Travis
Houston, Texas  77002
Phone: 713-220-4101
Fax:  713-238-7176
ppipitone@andrews-kurth.com

The information contained in this e-mail message is legally privileged
and confidential information intended only for the use of the
recipient(s) named above.  If the reader of this e-mail is not an
intended recipient, you have received this e-mail in error and any
review, dissemination, distribution or copying is strictly prohibited.
If you have received this e-mail in error,  please notify the sender
immediately by return e-mail and permanently delete the copy you
received.

Thank you.

(See attached file: HOU_554886_3.DOC)
(See attached file: BL554888.DOC)
(See attached file: HOU_554888_4.DOC)

 - Change Order 4 (KAS 110300).doc


Gerald,
	Generally there has been a gas sales agreement with ENA.  Given that this transaction was done as ENA, it may have been handled
	differently.  What contractual provisions exist for the gas delivered by NNG to ENA?

	mk

 -----Original Message-----
From: 	Nemec, Gerald
Sent:	Thursday, December 13, 2001 10:04 AM
To:	Zisman, Stuart
Cc:	Knippa, Mark
Subject:	NNG Hubbard

Stuart,  I reviewed the contract files on the Hubbard Transaction and found the following agreements:

All these contracts are in Enron North America Corp.'s name

1.  Compression Services Agreement dated June 29, 2000 (I worked on this one.  We basically restated the existing Compression Services Agreement with NNG to revise conversion factors to allow NNG to deliver ENA more gas and thus allow ENA to mark more earnings.  NNG was able to book $2 mil of these earning as a fee paid by ENA to NNG in consideration for termination of the existing Compression Services Agreement)  This agreement has a provision for submission of a purchase offer by NNG to ENA for purchase of the motor and interconnection facilities.  No specific numbers are listed and the terms would have to be mutually agreeable.

	No events of default specifically listed (including bankruptcy).  Thus it is not terminated.  If ENA fails to provide HP there are LD payments due up to a maximum of $200,000 per contract year.  Term is through January 31, 2018.

2.  First Amended and Restated Operations Agreement dated November 1, 1997.  NNG operates the electric driver for ENA.  Fee is $44,000 per year with an escalater.  Term is through November 30, 2017 (This works with the term of the CSA above.  Even though physical operations stop in November, gas still flows for another two month period).

	No events of default specifically listed (including bankruptcy).

3.  Agreement for Purchase of Power dated March 31, 1995 as amended on November 19, 1997.  ENA purchases electricity from Midland Power Cooperative.  Term is through December 31, 2017.

	No events of default specifically listed (including bankruptcy).

4.  Master Lease Agreement dated March 31, 1995.  ENA leases the electric motor driver and appurtenant equipment from General Electric Capital Corporation. This agreement has a 10 year term with an option to purchase the equipment after year 8 for a fixed amount of $944,875.69.

	Bankruptcy of ENA is an event of default.  GE must provide notice that they wish to declare an event of default.  If they declare an event of default, GE could enter the premises and take possession of the equipment and hold ENA liable for the "Stipulated Loss Value" of the equipment and all rentals due thereunder.  The Stipulated Loss Value calculated is set forth on a Table attached to the agreement.

Let me know if you would like copies of any of these agreements.


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

Vince J Kaminski
08/02/2000 08:11 AM
To: Pierre-Philippe Ste-Marie <ps5@andrew.cmu.edu> @ ENRON
cc: Vince J Kaminski/HOU/ECT@ECT
Subject: Re: MSCF Speaker Series/Recruitment

Thanks for your message. A call sometimes between 7:00 and 8:00
is fine. I come to the office around 7:00 traffic permitting.

Vince

Pierre-Philippe Ste-Marie <ps5@andrew.cmu.edu> on 08/02/2000 07:38:42 AM
To: vkamins@enron.com
cc:
Subject: MSCF Speaker Series/Recruitment

Dear Mr. Kaminsky,

Mr. Bryant informed me of the possibility of having you as a guest speaker
for our speaker series. It would be a great honor and a pleasure for me to
help you organize a trip to Pittsburgh. Would it be possible to give you a
call tomorrow (thursday) at 7.00am central time?

Sincerely,

Pierre-Philippe Ste-marie


Sally,

Attached is the resume for Tana Cashion.  Thank you for your help.

James Scribner

405/841-8607
jscribn@email.fleming.com

 - Tana Cashion_1.doc


Charlie,

Thanks a lot. It was a very quick response.
Steve Horn was greatly impressed.

Vince

	Enron North America Corp.

	From:  V Charles Weldon                           12/05/2000 11:07 AM

To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Bloomberg Request

Vince,

Mr. Horn's request has been taken care of.  He has the data he wanted and
knows how to call it up on his Bloomberg terminal in the future.

Charlie


Attached is a rough draft of my talking points for a panel I'll be on at a
CEM conference in SF on Thursday afternoon.  Have distributed to Western GA
team (plus Steffes) for comment and thought you may have some, too.

Topic for panel, "PUC Priorities."  Goal is to (politely?) refute Loretta
Lynch's and Carl Woods' continued assertions that 1) California's move to
deregulate was based solely on ideology with no basis in fact and 2) the
solution is to turn back the clock to command-and-control regulation.

The FERC order tomorrow is likely to alter the points somewhat.

Comments are much appreciated.

Best,
Jeff


any thoughts?


are you guys still in for dinner tonight.......6:30 at our place!    give me
a call @ worrk 713-853-6203


Please review the Financial Swap descriptions on the attached word document
for the Clickpaper products.  The two descriptions in red text are existing
product types in Enron Online.  In each other description, the text you see
in blue is the only portion that changes in the product type description from
commodity to commodity.  As the product types are created in the Enron Online
Production database, your approval will be requested.  The purpose of this
email is to provide you with advance notice so the approval process can be
executed quickly.  Please contact me with questions or concerns.

Thank you.
Kevin
3-9555


Beavers make plans to invade Arizona
     Associated Press

     TEMPE, Ariz. -- Oregon State capped its remarkable emergence from more
than a
     quarter-century of football ineptitude by accepting an invitation to
play Notre Dame in the Jan. 1
     Fiesta Bowl.

     The Beavers were the top choice of the Fiesta Bowl selection committee
because they were "a
     conference co-champion, a 10-win team and an incredible turnaround
story that somewhat mirrors
     what Kansas State has done," Fiesta Bowl president John Junker said.

     "For us to come here from where we were three years go, to go 10-1, and
being in the Fiesta
     Bowl against Notre Dame is a great story," Oregon State coach Dennis
Erickson said Sunday.

     As Oregon State's opponent, Virginia Tech had a higher ranking and
better record, but the Fiesta
     could not resist the Irish (9-2) and their huge nationwide following,
even though Notre Dame was
     ranked only 11th in the final Bowl Championship Series standings.
Oregon State is sixth.

     It will be a matchup of teams that weren't even in the top 25 in the
preseason.

     "I don't think any of us in our wildest imagination would have thought
this would have been the
     matchup," Junker said.

     Notre Dame won its last seven games to become bowl eligible at 9-2.

     The Fiesta considered Miami but decided the Notre Dame-Oregon State
matchup was more
     intriguing, and that the Hurricanes were a better fit against Florida
in the Sugar Bowl.

     Fiesta Bowl officials maintained that comments last week by Pac-10
commissioner Tom Hansen
     had no impact on their decision. He suggested the conference should
pull out of the BCS if
     Oregon State was left out of the Fiesta Bowl.

     "We selected Oregon State because they deserved it and won it on the
field of battle," Junker
     said.

     The Fiesta Bowl normally gives an automatic berth to the Big 12
champion, but it had two at-large
     picks this year because Oklahoma will play Florida State for the
national championship in the
     Orange Bowl.

     Oregon State set an NCAA record for futility with 28 consecutive losing
seasons, a streak broken
     when the Beavers went 6-5 last year in Erickson's first season and lost
to Hawaii in the Oahu
     Bowl.

     This year, Oregon State tied Washington and Oregon for the Pac-10
title, their first since 1964.
     That team, coached by Tommy Prothro, lost to Michigan in the Rose Bowl.
A 35-year bowl
     drought followed.

     Notre Dame, by contrast, is a regular at major bowls. Its last
appearance in one of the big-four
     bowls was in 1996, the Orange Bowl. But this Irish team was not
expected to get this far,
     especially after a 2-2 start. There was widespread speculation then
that coach Bob Davie would
     be out of a job when the season ended.

     Davie did not want to talk about vindication.

     "I think so much attention is always placed on the head coach, and I'm
sure Dennis would agree
     with me. This isn't about us. This is about our football players and
our assistant coaches who put
     so much into this.

     "That was a little bit overrated before the season and it's a little
bit overrated now. This certainly
     isn't about me."

     Each team will receive $12 million to $13 million. Oregon State will
split the money with the rest
     of the Pac-10, but Notre Dame, as an independent, keeps it all. No
wonder Davie was so anxious
     as he watched the Oklahoma-Kansas State game, knowing that a K-State
victory could have sent
     Notre Dame to a much lesser holiday payday.

     "It was brutal," he said. "As good as Oklahoma is, and as well coached
as they are, I almost
     went crazy when it was fourth-and-1 and they were in that shotgun for
that draw, but they know
     what they're doing. It was painful watching that game."

     Junker said Oregon State officials have promised 30,000 or more fans
will come to the desert from
     the Northwest for the game. Add to that Notre Dame's unparalleled
national following, and the
     Fiesta already has been declared a sellout. Each school will receive
15,000 tickets.

     Beaver players like the idea of playing Notre Dame.

     "I didn't like them growing up," running back Ken Simonton said. "I
don't like 'America's teams.' I
     don't like everybody's favorite. I was always an underdog."

Marc
*(303)401-7054
*mleslie@amgen.com


Toni,

I would like to bring two people for an interview

One of them sent me a message that is attached below.
I am including the info about the 2nd gentleman below.

I would like to include myself, Vasant Shnabhogue, Tanya Tamarchenko
Stinson Gibner, Zimin Lu, Paulo Issler,  Alex Tang on the interview list.

It would be great if we could bring them this week on Friday. Tanya
will be at a training course next week. This means that if Friday this week
is too aggressive,
we should shoot for interviews in 2 weeks.

Sorry for a short notice.

Vince

Jermakyan, Martin
410 Brightmore Downs
Alpharetta, GA 30005
Phone: (770) 753-9341 (h)
 (404) 402-8957 (c)
martin@electraparners.com

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 10/09/2000
09:48 AM ---------------------------

VKaminski@aol.com on 10/07/2000 05:55:11 PM
To: vkamins@enron.com
cc:
Subject: Fwd: hello from Charles Shen at Williams Co.

Return-Path: <charlesshen8@yahoo.com>
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Date: Wed, 4 Oct 2000 10:43:02 -0700 (PDT)
From: Charles Shen <charlesshen8@yahoo.com>
Subject: hello from Charles Shen at Williams Co.
To: vkamins@ect.enron.com
Cc: vkaminski@aol.com
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Dear Vince:

How are you? I am not sure whether you still remember
me, we met in a conference last year in Houston. After
having been working for Williams for about two years,
now I am ready to make a move. I have heard Enron is a
great company, I am wondering whether there is any
opportunity for me, either in research group or in
structure group

Here is brief description about myself: Right after I
got my Ph.D. on finance and econometrics from Duke
University in 1998, I joined Williams Energy Trading
company as a Quantitative Analyst. Now I am Lead Quant
and in charge of the quantitative research group with
7 highly talented people. I have done extensive
research and modeling about electricity,
load-following deal and tolling deals.

If you need any additional information, please feel
free to call me at 918-409-4308. I look forward to
hearing from you soon, thank you.

sincerely,
Charles

__________________________________________________
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lyonnais..agricole...does it really matter??  (I'll check on it)

From: Sara Shackleton on 06/07/2000 05:13 PM
To: Tanya Rohauer/HOU/ECT@ECT
cc:
Subject: Re: Credit Agricole

The AAA program was Credit Lyonnais.

	Tanya Rohauer
	06/07/2000 03:47 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Re: Credit Agricole

about half a dozen crude swaps. I'll have to pull the file and get back to
you on the credit worksheet.  I thought i did something on this back when we
did the AAA derivative program (or am i thinking of the wrong customer?)

From: Sara Shackleton on 06/07/2000 12:37 PM
To: Jeff Nogid/HOU/ECT@ECT, Tanya Rohauer/HOU/ECT@ECT
cc:
Subject: Credit Agricole

Just got off the phone with outside counsel for Credit Agricole.  We're very
close.
Tanya:  Can you tell me what products we trade? Are there many outstanding
transactions?  Also, I'd like to make sure that the "credit worksheet" is
current.  It looks like we're working off of something dated 1/31/96 (Terry
Donovan!!!!!).  This must be wrong.


Please plan to attend a meeting regarding EOL Int. Transportation

Friday, August 11th
3:00 - 4:00
EB3125A

Thanks,
Laura Harder
Ext 3-1994


thanks.  got it.


Tammi here is the Master Draft sent to Sandra in February.

Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


I have tried to call him directly but he was not available.


Hello - In order to cross one more item off of the enovate setup list, I
would like to pursue the initial capital contribution required under the LLC
agreement of $100,000 from each member.  Although we do not have loan
facilities in place or final cash management protocol, I believe the initial
funding can still take place.  If anyone has any other thoughts please let me
know.  If not, I would like to schedule the initial funding for Friday,
October 6th.  I believe that Mary Lynne will prepare the necessary vouchers
and journal entries.  I am assuming that Enron MW, L.L.C., as Member, will be
funding enovate, L.L.C.  Does ENA then fund Enron MW, L.L.C.? (Kay? Mary
Lynne?)

As an update - Peoples' Board meets next Wednesday, Oct. 4th to approve the
risk management policy.  Assuming approval, enovate will be free to transact
with third parties.  Therefore, depending on payment terms, money will begin
flowing through the enovate account.  Therefore, any loan docs and service
agreements should be in place by the second week of October.

Any thoughts, please let me know.

Thanks,

Gregg


The RCR meeting today at 12:00 pm (noon) CDT has been rescheduled for 1:30 pm
CDT TODAY!!!  Please note the time change.  The dial in number will remain
the same (1-800-283-1805).

Thanks

gngr
713-853-7751


Your Ameritrade Electronic Confirmation is now available for viewing - click on the link below
or copy and paste it into your browser to access your confirmation.

http://documents.advancedclearing.com/405416.2761.0.118


Jeff,

Unfortunately, Jeff doesn't have any information on Rick Barsky.  Would you like for me to try and get information from anyone else?

Thanks,
Joannie
joannie.williamson@enron.com

Jeff_Hines@hines.com on 05/01/2001 11:26:22 AM
To:	jeff.skilling@enron.com
cc:

Subject:	Membership question

Through YPO International, we got a membership inquiry from Rick Barsky,
CEO of Agennix(don't know what company does).  He apparently used to work
at Enron.  Bio says he was involved in start up of Enron Renewable Energy
Corp. and Enron Solar.  Any input you can give us on this guy?