USA: UPDATE 2-SoCal Edison in default, bankruptcy looms.
By Jonathan Stempel

01/16/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Jan 16 (Reuters) - In a move that escalates the California power
crisis, embattled California utility Southern California Edison said on
Tuesday it has suspended at least $596 million of payments to creditors,
moving it closer to a possible bankruptcy filing.
SoCal Edison and No. 1 rival Pacific Gas and Electric Co., a unit of San
Francisco-based PG&E Corp., have run up billions of dollars of debt this year
because they are subject to a rate freeze and have been unable to pass on
their skyrocketing wholesale power costs to consumers.
In mirror filings on Tuesday with the Securities and Exchange Commission, the
state's No. 2 utility and its parent, Rosemead, Calif.-based Edison
International, said that to conserve cash SoCal Edison has "temporarily
suspended" three payments due Tuesday.
These payments include $230 million of principal and interest on its 5.875
percent notes, $215 million to the California Power Exchange, and $151
million to "qualifying facilities," as well as "certain other obligations."
Failure to make the note payment puts SoCal Edison in default on the notes,
and on other of SoCal Edison's and Edison International's credit facilities,
the filings said. The Power Exchange, which arranges sales of power to the
utilities, can foreclose on collateral the utility pledged, they said.
SoCal Edison said it had nearly $1.2 billion of cash on hand as of Monday,
and will run out of cash on Feb. 2 assuming it makes all payments when due.
"It's an extremely negative sign, and telegraphs the company's intention to
take this to the mat," said Shawn Burke, head of U.S. investment-grade
research at Barclays Capital. "Unless the legislature pulls a bill out of its
hat, giving them virtually all of what they want, it's pretty much over."
Edison International also said in the filings that it plans to amend the
articles of incorporation and by-laws for Edison Mission Energy, a
wholly-owned unit, to protect its low investment-grade ratings.
Edison International shares traded Tuesday on the New York Stock Exchange at
$9-1/8, down $1-1/16, or 10.4 percent. PG&E shares fell $1-9/16, or 13.5
percent, on the Big Board to $10.
On Jan. 4, the California Public Utilities Commission recommended giving the
utilities a temporary 10 percent rate hike. The utilities, rating agencies
and many analysts consider such a hike inadequate. Edison International has
suspended its dividend, and SoCal Edison plans to slash up to 1,850 jobs.
DOWNGRADES LIKELY
The missed payments effectively ensure that credit rating agencies Standard &
Poor's and Moody's Investors Service will cut at least some of SoCal Edison's
credit and debt ratings to junk status.
When a company misses a debt payment, S&P ordinarily does not wait for a
grace period, if any, to run before cutting its rating for that debt to "D,"
or default.
A downgrade to below investment-grade status would put SoCal Edison in
default of some of its credit lines and bank loans, and ratchet up its
liquidity crunch.
"It's difficult to lend if there is no short-term solution, much less a
long-term one," said Burke.
The utility, as well as Pacific G&E, have been shut out of the short-term
debt capital markets, and have already drawn on backup credit lines.
S&P now rates most of SoCal Edison's senior long-and short-term debt
"BBB-minus" and "A-3," its lowest investment grades. Moody's rates the
respective debt a roughly equivalent "Baa3" and "Prime-3." The utilities'
debt trades like junk.
A third rating agency, Fitch, has already cut SoCal Edison's and Edison
International's ratings deeply into junk. The bank loans and credit lines
contain no default provisions triggered by that downgrade, analysts said.
DELAYING REPORTING RESULTS
Separately, SoCal Edison and Edison International said they plan to postpone
release of their fourth quarter and year-end 2000 fiscal results pending
further developments.
Analysts said SoCal Edison is acting now to push California legislators and
regulators to craft a remedy fast.
"This is a rugged step toward moving this process along, and forcing
California to do something," said Jerry Bellucci, senior vice president for
Applied Economic Research, a New York-based energy consulting firm.
Burke said SoCal Edison will wait as long as possible to file for bankruptcy
protection.

USA: S&P to issue statement on SoCal Edison Tuesday.

01/16/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Jan. 16 (Reuters) - Credit rating agency Standard & Poor's said on
Tuesday it plans to issue a statement by 12 P.M. (1700 GMT) about Southern
California Edison's failure to make $596 million of payments to various
creditors.
The announcement came in a voice-mail message left by Richard Cortright, an
S&P analyst following the California power crisis.
SoCal Edison, a unit of Rosemead, Calif.-based Edison International , said it
temporarily postponed the payments as it seeks to negotiate a resolution for
its cash crunch.

USA: Calif. declares highest level power alert.

01/16/2001
Reuters English News Service
(C) Reuters Limited 2001.

SAN FRANCISCO, Jan 16 (Reuters) - California, in the grips of its worst-ever
power crisis, on Tuesday declared a Stage Three power emergency, the
highest-level alert, citing a severe shortage of power and natural gas needed
to generate electricity.
A spokesman for the California Independent Operator System (ISO), the agency
that oversees the operation of most of the state's power grid, said it did
not appear likely they would have to trigger rolling blackouts to relieve the
heavy load on the system, although the possibility exists whenever a Stage
Three alert is called.
The ISO spokesman said 10,700 megawatts of generation were off line in
California for repairs or maintenance. Schools and offices reopened after the
Martin Luther King Day U.S. holiday on Monday, pushing up demand. One
megawatt powers about 1,000 homes.
The spokesman said there was also a shortage of natural gas available in
southern California, forcing power plants there to switch to oil to run their
generators. About one-third of all California power is produced at gas-fired
plants.
California has declared a statewide Stage Three alert only twice before, but
each time narrowly averted rolling blackouts as emergency supplies were made
available from neighboring states.
.
Only 54% of Californians Feel That There Is an Energy Crisis

01/16/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

Knowledge Networks Unique Poll Finds Majority Expect Even More Increases
From the CPUC.
MENLO PARK, Calif., Jan. 16 /PRNewswire/ -- The energy crisis, which is
dominating media coverage, paralyzing state government, and prompting
industry to consider moving operations elsewhere, is causing less concern
among average California citizens. Results from a recent survey conducted by
Knowledge Networks using its unique population projectable Web-enabled panel,
show that just 54% think the current situation is a crisis -- 21% don't
believe that there is a crisis and 25% don't know.
However, California citizens are losing confidence in the system that
controls electric power in the state. -- 80% believe the CPUC will extend the
recent temporary rate increase
given to PG&E and Southern California Edison beyond the 90 day limit
-- 75% expect an additional rate increase once the 90 day period is over
-- 14% are positive about electricity deregulation
-- 61% support reconsidering deregulation

In addition to attitudes about changing deregulation, Californians were
surveyed about an extensive range of proposals for dealing with the energy
situation. People were asked the questions in the same manner as the various
proposals have been summarized in the media reports. This may account for the
high support received on a couple of the proposals. For example 90% of the
respondents approved the Governor's suggestion to, "add new power generation
plants within California and make existing plants more efficient." The
proposal as worded doesn't distinguish between adding new plants or making
existing plants more efficient or some combination thereof. Critics note that
in the past Californians have been hesitant about power plants being built in
their own communities. Among the other proposals, Californians are most
supportive of:
-- 76% Federal limits on the amount that electricity suppliers can charge
for wholesale energy sold to California utilities
-- 59% Incentives for reducing electricity usage by 8%
-- 57% Creating a state power authority to take over existing plants and
speed up the building of new power plants

Attitudes towards the two largest investor owned utilities, PG&E and Southern
California Edison are noticeably split. 41% find the explanations about the
crisis given by the utilities to be believable, while an equal percentage
(42%) don't believe them. With regards to the possibility of going bankrupt,
46% think that it is somewhat likely that the two utilities will be forced to
declare bankruptcy if they don't receive outside help. 70% think that the
state and or Federal government should help prevent bankruptcy.
While just over half think that the electricity situation is a crisis, there
are clear signs that people take the situation seriously. When asked about
actions they have taken to reduce their electricity usage a majority report
taking basic steps like shutting off lights, reducing the temperature, and
cutting back on holiday lighting.
Looking forward, Californians will be replacing less efficient lighting and
taking other steps to make their homes more efficient. 11% state that they
will likely switch to another electricity supplier.
A full release including data tables is available at:
www.knowledgenetworks.com/press. The survey was completed by 529 California
head of household members of the Knowledge Networks panel, between Tuesday
January 9 and Thursday January 11, 2001. The margin of error for results
based on the total sample is plus or minus 4.4 percentage points.
About Knowledge Networks
Knowledge Networks' revolutionary single-source marketing information system
provides continuing insights about consumers' opinions, attitudes, activities
and behavior. Knowledge Networks is the first to combine traditional
statistically valid probability sampling with Web technologies to create a
panel that is representative of the U.S. population. The company equips all
panel households with interactive TV and Internet access enabling it to
collect a wealth of information with unusual speed.
Knowledge Networks, a privately held company, was founded in 1998 by two
Stanford Political Science Professors, Norman Nie and Douglas Rivers.
Knowledge Networks serves clients nationally from seven offices: Boston,
Chicago, Cincinnati, New York, Fairfield CT, Washington DC, and its
headquarters in Menlo Park, California.
For information on Knowledge Networks, please visit its Website,
www.knowledgenetworks.com.

Southern Calif Edison Projects Will Be Out Of Cash Feb 2

01/16/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- Southern California Edison, a subsidiary of Edison
International (EIX), said it will be out of cash on Feb. 2 based on its
current cash flow forecast, according to a Form 8-K filed Tuesday with the
Securities and Exchange Commission. , Southern California Edison had cash
reserves of about $1.2 billion, according to the filing.

08:49 AM
Southern California Edison said it estimates it has a $215 million payment
due to the California Power Exchange Tuesday, $259 million in payments to
qualifying facilities due through Jan. 31, a scheduled interest payment of
$230 million on maturing 5.875% notes due Tuesday and $255 million pyaments
for commercial paper due through Jan. 31.
The company also has total expenses for energy delivered as of Monday, but
not yet paid for, of $1.54 billion.
However, Southern California Edison states that due to a "significant lag
time" between the delivery of energy and the final billing, the actual
expenses through Monday can't be determined at this time.

Southern California Edison said that in an attempt to conserve cash it has
"temporarily suspended" payment of $230 million of principal and interest on
its 5.875% notes due Jan. 16, $215 million due to the California Power
Exchange due Jan. 16, $151 million due to certain qualifying facilities as
well as certain other unnamed obligations.
As reported, a company representative told Dow Jones Newswires Monday that
the company might not be able to make the payment to bondholders.
According to the company, failure to pay the notes when due constitutes a
default, allowing the noteholders to exercise remedies available to them.
Failure to make the payment on the notes also constitutes a default under
Southern California Edison's credit facilities, entitling the lenders to
exercise certain remedies.
If the company doesn't cure or waive the defaults within a specified time
period, the defaults may trigger defaults on all outstanding series of the
company's senior unsecured notes and subordinated debentures.
Failure to make the payment to the California Power Exchange constitutes a
default under the agreement, allowing the exchange to foreclose on collateral
pledged by the company.

According to the filing, Southern California Edison is attempting to avoid
bankruptcy and intends to pay all of its obligations once a solution to the
current liquidity crisis has been reached.
However, the company warns that it's possible that it could be forced into
bankruptcy.
Based on the ongoing "uncertainties," Southern California Edison and Edison
International intend to postpone releasing their financial results for the
fourth quarter and year-end 2000 "pending further developments in federal and
state regulatory proceedings, judicial proceedings, legislative enactments
and other efforts to resolve the current energy crisis," notes the filing.

Southern California Edison said in the filing that as of Dec. 31, the
difference between the cost of supplying electricity to customers and the
amounts received from customers reached $4.5 billion and "is continuing to
increase."
As reported, because of liquidity and other problems, the company has no
unused borrowing capacity under its existing credit facilities, and it's been
unable to arrange any additional facilities. In addition, the company is
unable to issue commercial paper or access the capital markets on "reasonable
terms."
On Jan. 4, the California Public Utilities Commission authorized a surcharge
for 90 days in an attempt to help Southern California Edison as well as PG&E
Corp. (PCG), which is also undergoing severe liquidity problems.
Southern California Edison said the rate increase provides "no real relief"
and will increase revenue by about $65 million a month during the three
months the surcharge is in effect.
Edison International is an energy holding company. Southern California Edison
provides electricity to people in California. -Todd Goren; Fed Filings/Dow
Jones; 202-628-9782

Calif Gov Could Stymie Solution To Crisis -FERC's Hebert

01/16/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

(This article was originally published Monday)
By Bryan Lee
Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- High-level talks over the weekend on a plan to
rescue California's troubled two largest utilities and keep power flowing to
customers have brought participants no closer to a solution, sources involved
in the discussions said Monday.
And as events Tuesday are expected to push the state's financially ailing
electric utilities closer to bankruptcy, responsibility for the potential
meltdown rests squarely with California Gov. Gray Davis, a key federal energy
regulator said Monday.
"You've got a governor who cares more about being on a nighttime news show
than he does about fixing the problem in California," said Curtis Hebert, a
Republican on the U.S. Federal Energy Regulatory Commission.
Hebert criticized Davis, a Democrat, for his refusal to swallow the bitter
financial medicine needed to rescue the state's flawed power market
restructuring initiative.
Hebert's comments echo those voiced privately by industry officials and
Clinton Administration officials involved in unprecedented discussions
brokered by the White House since Tuesday.
The talks are designed to reach agreement on a plan that will allow the
state's utilities to continue purchasing power for their retail customers,
despite a liquidity crunch brought about by the state's power market
restructuring effort.
Broadly, the proposed deal involves having California's Department of Water
Resources enter into long-term power sales contracts on behalf of the
utilities. This would end the utilities' reliance on volatile spot markets
for power purchases.
In return, power generators are to grant some form of "forbearance" for the
money they are owed while the forward contracts are ironed out.
But throughout seven days of negotiations, Davis has refused to consider
raising state-protected retail rates and has resisted calls for the state to
issue credit guarantees for the utilities. In the meantime, Davis has
insisted that power suppliers agree to sell the state power under long-term
contracts at rates generators say is below their cost of production.
Unless Davis backs down, no rescue package can be struck, some people close
to the negotiations say.
"Everybody's still trying to talk, (but) now it's spinning out of control,"
said a person involved in the discussions.
A person representing power marketers and familiar with the status of the
talks: "I don't see any great cause for optimism - particularly when I hear
some of the things that Davis's office says." Governor's Office Rejects Talk
Of No Progress

A spokesman for the governor rejected the characterization that the talks
were stymied.
"People are working and moving forward," said Steve Maviglio, the governor's
spokesman. "If they weren't closer (to an agreement), they wouldn't still be
talking. To send a message to the markets that there's not progress here is
irresponsible."
Draft legislation to be unveiled Tuesday at the state Legislature will hold
up the governor's end of the deal, Maviglio said.
The legislation will give the state the authority to purchase power on behalf
of the utilities, and the structure of the long-term contracts will give the
utilities the ability to pay down the billions in uncollected power costs
they have accumulated to date, he said.
The utilities - Edison International's (EIX) Southern California Edison Co.
and PG&E Corp.'s (PCG) Pacific Gas & Electric Co. - say they have no cash on
hand and have been squeezed out of capital markets after hemorrhaging some
$12 billion buying high-cost wholesale electricity and selling it for a
considerable loss under state-mandated frozen retail rates.
Southern California Edison has a multimillion-dollar bill due Tuesday for
power purchases made in November and no cash on hand. Pacific Gas & Electric
says it can squeak by until early February, but obtained approval from
federal regulators on Friday for a corporate restructuring that will help
shelter its successful unregulated business units should the utility unit
files for bankruptcy.
Developments could come fast and furious if financial markets open Tuesday
with no deal struck.
Wall Street credit ratings agencies have warned they will downgrade the
utilities' debt to speculative, or junk-bond, status if a solution isn't
reached soon. And various entities are expected to file emergency petitions
with the Federal Energy Regulatory Commission to ensure that power keeps
flowing to the state despite the utilities' inability to purchase power for
their retail customers.
According to sources familiar with the discussions, one filing would allow
the Department of Water Resources to purchase wholesale power on behalf of
the utilities, while another would give Southern California Edison more time
to make good on amounts owed power suppliers.
Whether the regulatory filings buy the utilities time to avoid bankruptcy
remains to be seen.
"They've got to make some real decisions here," FERC's Hebert said of the
stymied negotiations with Davis. "If (Davis is) not willing to make those
decisions, then certainly I think he's to blame."
-By Bryan Lee, Dow Jones Newswires, 202-862-6647, bryan.lee@dowjones.com

Houston power supplier threatens to bankrupt California utilities

01/16/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SACRAMENTO, California (AP) - In the midst of California's struggle to obtain
more regional power, a major electricity supplier is threatening to take the
state's two largest utility companies to bankruptcy court.
If Southern California Edison and Pacific Gas & Electric do not make payments
due this week, officials from Houston-based Dynegy Inc. said Monday they will
have no choice but to take them to court.
"If we can't get this bill through in the next two days, this will start to
unravel," Stephen W. Bergstrom, president of Dynegy, told the Los Angeles
Times. "When and if they (Edison) default on Thursday, it puts us in a
position where we have to take them into bankruptcy, and I'm sure others will
be right beside us."
Bergstrom refused to say how much money Dynegy is owed but said if any three
creditors jointly petitioned the court, it would be enough to start
involuntary bankruptcy proceedings.
State and federal lawmakers are trying to craft a temporary solution to
California's power crisis. Officials met this past weekend with electricity
wholesalers to negotiate a plan by California Gov. Gray Davis for the state
to buy electricity and sell it to utilities. That plan was to be introduced
Tuesday in the Legislature.
The state believes it can negotiate better prices than the utilities, which
have seen their credit ratings plummet in recent months. PG&E and SoCal
Edison say they have lost more than dlrs 9 billion because of wholesale price
increases and the state's 1996 deregulation law that froze rate hikes.
Electricity sellers have been increasingly reluctant to supply California
because of the utilities' dwindling finances.
Edison owes a major payment Tuesday to the Power Exchange, which manages the
wholesale buying and selling of electricity. Power industry sources estimate
the bill to be more than dlrs 150 million but believe the company has the
resources to make the payment. Technically, SoCal Edison will not be in
default on the payment until Thursday.
Company officials refused to comment on their obligations to the Power
Exchange. They said they would disclose details Tuesday in a filing with the
federal Securities and Exchange Commission.
PG&E officials said Monday that they would pay their dlrs 40 million bill due
this week. The utility has approximately dlrs 500 million in cash, a
spokesman said, with a bill for about dlrs 580 million due Feb. 1.
On Monday, the state's power reserves shrank to nearly 5 percent even though
many businesses were closed for the holiday.
Dynegy purchased three Southern California power plants when SoCal Edison,
PG&E and San Diego Gas & Electric auctioned off assets as part of
deregulation. The company's plants can generate enough electricity to supply
2.8 million homes.

California Utility's Power Supply Could Be Cut
By John R. Emshwiller and Mitchel Benson
Staff Reporters of The Wall Street Journal

01/16/2001
The Wall Street Journal
A4
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Today could prove to be a critical day in California's electricity crisis as
one of the state's biggest utilities, Southern California Edison Co., faces a
possible cutoff from power supplies.
Edison, a unit of Edison International Inc., is considering not paying a big
wholesale electric-power bill, believed to be in the hundreds of millions of
dollars, that comes due today from the California Power Exchange, a person
familiar with the matter said. Edison is suffering from a cash shortage
brought on by the skyrocketing cost of wholesale power. An Edison spokesman
declined to comment yesterday.
A spokesman for the Power Exchange said Edison could face immediate cutoff
from further purchases via the exchange if it doesn't pay its bill. However,
the exchange was talking with various parties in an effort to avoid such a
suspension. "We are still in negotiations. We don't know what we have yet,"
the spokesman said.
The Power Exchange, created as part of California's utility-deregulation
effort, serves as a crucial middleman between utilities and power generators.
Under deregulation, Edison obtains much of its daily electricity through the
exchange. An inability to buy through that venue could leave Edison and its
4.2 million customers in Southern California facing power shortages and
possible blackouts.
Adding to the financial uncertainty surrounding Edison, Dow Jones Newswires,
citing a senior Edison executive, reported late yesterday that the company
has a $200 million bond payment due today that it also might be unable to
pay.
Meanwhile, state officials met through the Martin Luther King Jr. holiday in
Sacramento in a frantic effort to resolve the power crisis. Within the next
24 to 48 hours, Wall Street and the energy producers "need a precondition, a
signal that we're serious and heading in a direction they're comfortable
with," said one lawmaker involved in the talks.
One idea proposed by Gov. Gray Davis and others is to have the state use its
financial resources to purchase power from electricity producers for resale
to the financially beleaguered utilities. "We don't have to go into business
tomorrow as the purchaser," the lawmaker said. "We simply have to make a
strong enough and substantive enough statement coming out of the state
capitol so that the creditors and [energy] producers will exercise
forbearance." Such forbearance would give utilities more time to pay billions
of dollars of wholesale power costs that they have accrued but haven't been
able to collect from customers through rates.
Several people involved in yesterday's talks said they were optimistic that
some plan would be ready to present to a legislative committee today for
public hearings and, potentially, a vote in the Assembly. They acknowledged
that as of late yesterday that no agreements had been reached with
electricity producers on such crucial issues as the price to be charged for
the electricity and the length of the supply contracts. California's
Legislature has been called into special session by Gov. Davis to consider a
series of bills aimed both at improving the state's electricity supply and at
curtailing demand.
Edison's move on its Power Exchange bill could compress the timeframe for
action. Many observers believed the utilities had sufficient cash to see them
through early February, when another round of big wholesale electric bills
comes due.
Last weekend, the Pacific Gas & Electric utility unit of PG&E Corp.
reiterated its belief that it has sufficient cash to pay its expenses until
early February. In recent weeks, Edison and PG&E have said they are being
pushed to the brink of insolvency and bankruptcy-law filings because of
skyrocketing wholesale electricity costs.
Some observers speculate that if Edison doesn't pay its Power Exchange bill,
it could be a signal that the utility is moving closer to a bankruptcy-law
filing. Richard Cortright Jr., a Standard & Poor's director, said an analysis
by the credit-ratings concern indicates that Edison has enough cash to pay
the Power Exchange. Preserving cash by not paying bills "is often a tactic a
company uses before bankruptcy," Mr. Cortright said.
S&P and other ratings concerns have been closely following the California
electricity crisis, because of the impact it could have on billions of
dollars of utility bonds outstanding. The ratings concerns have severely
downgraded both Edison and PG&E bonds. The agencies generally haven't dropped
those bonds into "junk- bond" status, which is below investment grade. Such a
downgrade would put the utilities into various financial defaults that could
exacerbate their acute cash problems.
While the California situation is "incredibly fluid," any failure by Edison
to pay its power bills "paints a very, very dire picture," Mr. Cortright
said.
To better understand the current picture, state legislative leaders have
recruited several legal and financial advisers. Among them is David Wiggs,
managing director of Lido Capital in Newport Beach, Calif., a financial
adviser to the utility and telecommunications industries. Mr. Wiggs, who has
been hired to advise the newly created Assembly Committee on Energy Costs and
Availability, is a retired chairman of the utility El Paso Electric Co. Mr.
Wiggs, in turn, has hired to assist him Robert D. Albergotti and Stacey
Cowand Jernigan, members of the Dallas law firm of Haynes & Boone. Two
investment advisers from New York investment bank Credit Suisse First Boston
Corp. are advising legislators on a pro bono basis.
As regulators, politicians and executives struggled to come up with fixes,
California itself struggled through another day of tight power supplies.

Metro Desk
Power Firm Demands Utilities Pay Bills Now Electricity: Supplier says it will
haul Edison and PG&E into bankruptcy court if money isn't forthcoming.
Lawmakers scramble for a solution.
NANCY VOGEL; MIGUEL BUSTILLO
TIMES STAFF WRITERS

01/16/2001
Los Angeles Times
Home Edition
A-1
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- Increasing the pressure on state lawmakers to craft at least a
temporary solution to California's power crisis, a major power supplier
threatened Monday to force Southern California Edison and Pacific Gas &
Electric into bankruptcy court unless the utilities pay their bills due this
week.
The move by Dynegy Inc. of Houston upped the ante on a day when legislators
huddled with financial experts and lawyers but reached no agreement on a
mechanism for the state to buy electricity for Edison and PG&E at rates far
lower than they pay now--allowing the beleaguered utilities breathing room to
restructure their massive debts.
"If we can't get this bill through in the next two days, this will start to
unravel," said Stephen W. Bergstrom, president of Dynegy. "When and if they
[Edison] default on Thursday, it puts us in a position where we have to take
them into bankruptcy, and I'm sure others will be right beside us."
Bergstrom refused to say how much money Dynegy is owed, but said if any three
creditors jointly petitioned the court, it would be enough to start
involuntary bankruptcy proceedings.
Under a plan outlined this weekend by Gov. Gray Davis after marathon
bicoastal negotiations, the state would use its excellent credit rating to
purchase electricity and then resell it to debt-hobbled utilities.
The state Department of Water Resources has stepped in on an emergency basis
to buy power to prevent blackouts, but Davis' plan would, overnight, make
California the biggest single buyer of electricity in its own market.
Legislators generally backed the need for the state to buy power, but there
has been no agreement on two key issues: the price and the duration of the
contracts. The price needs to be low enough so that utilities, with the rates
currently in place, can save enough to restructure their debts--but high
enough so that the power producers will go along with the plan.
With attention focused on how Wall Street will view the tenuous agreement
when markets reopen after the weekend, legislators were fighting multiple
deadlines in trying to make good on the weekend promise to pass a bill by
today.
Edison owes a major payment today to the Power Exchange, the market created
in 1998 under deregulation.
Power industry sources say they believe Edison has the cash to make the
payment, estimated at more than $150 million, but that the firm could play
high-stakes political poker by delaying payment to increase pressure on
lawmakers. Technically, Edison will not be in default on the payment until
Thursday.
Edison officials refused to comment on the negotiations with state leaders or
the firm's obligations to the Power Exchange. They said they would disclose
details today in a filing with the federal Securities and Exchange
Commission.
PG&E officials said Monday that they would pay their $40-million bill due
this week. The utility has approximately $500 million in cash, a spokesman
said, with a bill for about $580 million due Feb. 1.
Electricity sellers have been increasingly reluctant to supply California
because of the deteriorating financial condition of the utilities.
The volume of electricity traded in the Power Exchange has dropped by roughly
75% in the last month. Grid operators have struggled daily to buy enough
power to balance flow on high-voltage wires and prevent blackouts.
On Monday, a holiday during which many offices and businesses were closed,
the state's power reserves shrank to nearly 5%.
Legislators, convened in an emergency session on the state's energy crisis,
quickly seized on Davis' idea.
"We're working here around the clock, doing everything we can," said Assembly
Speaker Bob Hertzberg (D-Sherman Oaks) during an afternoon break in talks
among a half-dozen Republican and Democratic lawmakers. Also involved were
the state's finance director, a bankruptcy lawyer, and two utility experts
from Credit Suisse First Boston.
Their purpose was to craft a skeleton of the legislation that California will
need to implement Davis' proposal and have it passed by at least one house of
the Legislature today.
Senate leader John Burton (D-San Francisco) has said that while the
Legislature works, power generators should be willing to give utilities
leeway on bills coming due.
But that's unlikely unless the Legislature acts quickly, said Bergstrom of
Dynegy. His company purchased three Southern California power plants when
Edison, PG&E and San Diego Gas & Electric auctioned off assets as part of
deregulation. Dynegy's plants can generate enough electricity to supply 2.8
million homes.
"We're just not going to do that," Bergstrom said, "because the stakes are
too high."
He met with Davis and California lawmakers in Washington, D.C., last Tuesday
evening and spoke to them again through a bicoastal video conference
Saturday. The governor has been lobbying power plant owners to sign long-term
contracts with the utilities at roughly 5.5 cents per kilowatt-hour--well
below the recent market rate of 30 cents.
Power plant owners call that price unrealistic unless the contract lasts at
least six or seven years, allowing them to recoup money later, when the cost
of natural gas is expected to fall and make electricity cheaper to generate.
Contract details do not matter, Bergstrom said, so long as the utilities are
so debt-ridden as to be unworthy of credit. That's why the state needs to
step in to buy power and guarantee payment, he said.
But some lawmakers have downplayed the urgency.
Burton has said it is more important to get the details of a bill right than
to move quickly.
To insert the state as a go-between in California's electricity market raises
many complex financial and political issues.
Even lawmakers who support helping the utilities insist that consumers get
something in return.
Stock options, ownership of utility transmission lines or takeover of
hydroelectric power plants--a cheap source of power that affects the
environmental health of many Sierra Nevada rivers--are among the assets the
state should consider, Burton said.
Hertzberg spokesman Paul Hefner said lawmakers have included bankruptcy
lawyers and financial experts not solely to impress Wall Street, but also
because they realize they are entering a realm they know little about.
He said politicians clearly want to "send a message to financial markets"
that they are working with industry experts when considering the consequences
of their legislation.
But he said their main goal is to get technical advice from someone who is
not a bureaucrat and is not employed by a power firm.

Metro Desk
Court May Decide if Power Users Pay More Court: Edison calls ruling that it
can pass on costs a victory. The PUC says it's just the first of many steps
in the battle over setting rates.
HENRY WEINSTEIN
TIMES LEGAL AFFAIRS WRITER

01/16/2001
Los Angeles Times
Home Edition
A-15
Copyright 2001 / The Times Mirror Company

A federal judge's recent ruling that Southern California Edison Co. has the
right to pass on to consumers its costs of acquiring power on the wholesale
market does not mean that ratepayers will have to bear any of those costs
soon.
But the decision nonetheless provided immediate benefits to the beleaguered
utility--primarily making the company look more financially secure and
credit-worthy because the ruling could pave the way for a recovery of more
than $2 billion for Edison.
Consequently, attorneys and spokesmen for Edison trumpeted the ruling of U.S.
District Judge Ronald S.W. Lew as a significant victory. Attorneys for the
California Public Utilities Commission played down the decision's
consequences, saying it was merely the first skirmish in a long process.
Regardless of how significant Lew's ruling was, the legal battle clearly has
important ramifications, and they go beyond Edison's financial health.
Ultimately, the case, titled Southern California Edison vs. Loretta M. Lynch
(president of the PUC), may determine whether Edison's customers have to pay
more for electricity.
Moreover, the case--and a virtually identical one filed by Pacific Gas &
Electric Co. in Oakland federal court--may clarify whether there will be any
change in the traditional demarcation of regulatory authority over utilities
as a result of deregulation.
Historically, the federal government has regulated wholesale power rates and
state governments have regulated retail rates, those charged to consumers.
One of the key issues in the Edison and PG&E cases is the utilities'
contention that a PUC-imposed rate freeze violated the traditional
demarcation by indirectly interfering with federal regulatory authority.
Both companies say that they have been prevented from recovering their
wholesale purchase costs because of the rate freeze imposed by the PUC as
part of the massive utility deregulation law enacted in 1996, known as AB
1890.
Unless the issues are resolved by legislative action on the state energy
crisis, it seems likely that the two suits will wind up in the U.S. 9th
Circuit Court of Appeals and perhaps ultimately the U.S. Supreme Court. The
California Public Utilities Commission and the Utility Reform Network, a
consumer advocacy group, are opposing the companies in court.
The 1996 deregulation law provides that the California rate freeze lasts
until March 31, 2002, or until what are known as a utility's "stranded costs"
(in essence, certain assets such as nuclear power plants that were overvalued
in 1996) are recovered. The PUC determined last year that San Diego Gas &
Electric, the state's other major privately owned utility, had recovered its
"stranded costs," enabling that company to impose rate hikes. But the agency
has said that Edison and PG&E are not entitled to take such action yet.
On Jan. 8, Judge Lew agreed in principle with Edison's contention that the
Federal Power Act trumps California's 1996 energy deregulation law.
Lew rejected the PUC's argument that he should dismiss the case because
retail rates are exclusively a matter of state regulation. The judge also
rejected the agency's alternative request that he defer a decision for at
least 120 days while the PUC gathered more facts. The judge said the gravity
of the situation required immediate action.
PUC actions "are having devastating effects on [Edison's] current ability to
obtain financing to enable it to continue to procure wholesale power at
current prices," Lew said.
In essence, Lew agreed with Edison's lawyers, Ronald L. Olson and John W.
Spiegel, that the company is caught in "a vise that threatens to squeeze it
out of existence."
"On the one side, SCE has been forced to pay astronomically high prices to
buy wholesale electricity," the lawyers said in a brief filed in Lew's court.
The 1996 statute requires SCE "to procure all of the electricity needed to
serve its 4.3 million retail customers from two wholesale market
institutions, whose pricing practices are exclusively within the Federal
Regulatory Commission's jurisdiction. Since last June, the cost of procuring
electricity through these market institutions has increased nearly
four-fold," the attorneys said.
"On the other side, SCE has been unable to recover these expenses through
retail rates, which are currently frozen under California law." In addition,
Edison's lawyers maintain that the PUC has interpreted California law "to
prohibit SCE from recovering these costs, either now or in the future."
Consequently, Edison has had to buy high and sell low, leaving it with a
shortfall in excess of $2.6 billion, the company says.
The PUC counters that a substantial portion of Edison's costs are paid to
itself from power the company buys from its own plants and that Edison has
reaped additional billions in the last two years from the sale of certain
assets. The agency contends that those funds should be available to offset
the financial problems the company is complaining about.
The PUC also contends that Edison failed to take other steps that could have
lowered its costs in acquiring power.
In addition to the dispute over the facts, there has been a clash over Edison
's contention that California's rate freeze interferes with federal
regulation of the wholesale energy market. The PUC and the Utility Reform
Network counter that the freeze is an essential component of the Federal
Regulatory Commission's approval of wholesale sales.
The regulatory commission has taken no formal position on the pending
litigation. However, Douglas W. Smith, the agency's general counsel, sent a
letter to Edison attorney Spiegel saying that the "filed rate doctrine"
applies in a situation such as this. The doctrine, according to a 1986 U.S.
Supreme Court decision, holds that interstate power rates filed with the
Federal Regulatory Commission or set by it must be given binding effect by
state utility commissions determining intrastate rates.
However, Michael Strumwasser, attorney for the consumers group, said the 1986
Supreme Court decision arose in an entirely different context. He said the
specific question now at issue--whether the "filed rate doctrine" applies
when wholesale rates have been set by market forces rather than a regulatory
proceeding--has never been ruled on by an appellate court.
Lew made no explicit rulings on the PUC allegations that Edison should have
offset wholesale payment costs through other revenues.
However, Lew said the PUC is entitled to present evidence about the prudence
of Edison's wholesale electricity purchases. Further hearings on that issue
could determine how much of its costs Edison is entitled to recover. The PUC
contends that Edison could have made some purchases at lower prices than it
did. But Edison attorneys counter that this is a disingenuous argument,
because the PUC has not objected to the prudence of Edison's purchases.
Indeed, the Edison lawyers say the next phase of the case should be very
brief because the PUC, in effect, consented to Edison's prior actions.
Attorneys for the PUC and the consumers group disagree sharply, saying a bevy
of issues need to be reviewed in detail. There is no timetable for further
proceedings in the Edison case. The next hearing on the PG&E case is
scheduled for Jan. 30 in Oakland.

NEWS
Stealthy Deal Protects Profits of PG&E's Parents
Christian Berthelsen
Chronicle Staff Writer

01/16/2001
The San Francisco Chronicle
FINAL
A1
(Copyright 2001)

PG&E Corp. has quietly won approval from federal regulators to restructure
itself in a way that shields the parent company's profits, and shareholders,
from the mounting debts of the utility it owns.
The move appears to allow Pacific Gas and Electric Co.'s parent to record
substantial profits while maintaining that its subsidiary, which supplies
power to 4.5 million customers, is teetering on the edge of bankruptcy and
trying to force ratepayers to pick up the tab.
The corporate restructuring, approved by the Federal Energy Regulatory
Commission on Friday, came as a surprise to consumer advocates and state
leaders dealing with the energy crisis -- including Gov. Gray Davis. They
have been working feverishly the past seven days to construct a deal that
would alleviate debt pressure on PG&E and Southern California Edison by
having the state of California buy power and provide it to the utilities at
cost.
Steve Moviglio, a spokesman for Davis, said the governor was displeased by
PG&E's move, although he said it was not likely to derail the state's efforts
to intervene in the crisis. He also said Davis was "disappointed that FERC
acted in the middle of the night without notice to all parties."
Ratepayer advocates and even some state officials have said that any aid to
the ailing utilities should be offset by the huge profits that PG&E Corp. has
made during the crisis from electricity generation and trading revenues. The
money has certainly flowed in the other direction, they argue. In the past,
PG&E Corp. has used revenues from the utility to pay down corporate debt, pay
stock dividends and buy assets in other states.
PG&E Corp.'s action appears to eliminate that possible means of paying off at
least part of the $2 billion in debt incurred since November by its utility,
Pacific Gas and Electric Co., as it bought power at prices higher than it can
legally charge customers.
"It's certainly a response to them feeling the threat that the holding
company's going to be held responsible for all this," said Bob Finkelstein,
an attorney for The Utility Reform Network, an advocacy group.
Meanwhile, California's energy crisis continued in full force yesterday, as
the California Independent System Operator issued a Stage Two emergency,
meaning that demand had reached within 5 percent of the state's electric
supply, prompting requests to certain large users to shut down and conserve
power. This occurred despite a national holiday, Martin Luther King Day, on
which most businesses were closed and demand was forecast to reach about
30,000 megawatts, a fairly modest number.
Further, conditions appeared as if they were going to worsen imminently.
Edison said it will be unable to pay bills coming due today, and PG&E said it
has only about $500 million on hand to cover what it owes. Bankruptcy filings
by both utilities appeared more likely.
State leaders were still in negotiations yesterday to broker a deal in which
California's Department of Water Resources would step in and buy power on
behalf of the utilities, who are facing a growing inability to pay for their
purchases. The talks were reported to be breaking down, however, because
Davis refused to consider raising California rates or backing utility debts
with a letter of credit from the state.
In San Francisco, state Senate President Pro Tem John Burton said legislation
passed last week by the Assembly will probably make its way to the governor's
desk by the end of the month. One bill would change the makeup of the boards
that oversee the state's power market, and the other would prohibit utilities
from selling off their power-generating assets.
In the midst of yet another Stage 2 electrical emergency the Democratic
leader said, "I want the people of California to have long, stable, available
energy throughout the rest of our lives."
But in the short term, with the threat of rolling blackouts and urgent
requests for power conservation, Burton stated the obvious: "Turn the goddamn
lights off," he said.
NO CHALLENGES TO RESTRUCTURING
The Federal Energy Regulatory Commission approved PG&E's restructuring plan
on a 3-to-1 vote on Friday. It was apparently described in a Dec. 28 public
notice as a stock transfer, and thus flew under the radar screens of most
observers. Details of the plan were first reported in the Wall Street Journal
on Monday.
Greg Pruett, a spokesman for PG&E Corp., said the intent of the plan was
merely to allow another unit of the corporate parent, National Energy Group,
to receive its own credit rating that would be weighed independently of the
troubled utility. But he acknowledged that all or nearly all of PG&E Corp.'s
assets outside the utility are held by National Energy Group and that the
move would reduce the liability for the corporation.
Although it was unclear whether PG&E informed state leaders of its plans,
Pruett said the notice of the meeting was publicly available and had at least
been provided to the Public Utilities Commission.
In addition to proceeds from the sale of power plants and other revenues that
PG&E has forwarded on to its corporate parent, the utility has reaped
windfall profits during the crisis from the generation and sale of
electricity and has not applied those profits to its own debt. To do so would
require an accounting rule change by the California Public Utilities
Commission, but company officials have maintained that should not be done.
PG&E IN DEBT TO ITSELF
Critics say that PG&E is its own biggest debtor, with money flying out of one
pocket and into the other and that nearly half of its debt is owed to itself.
In the third quarter of 2000, the company reported a 22 percent increase in
profits, with a net income of $225 million, while saying it expected
California consumers to eventually pick up the tab for its debt.
--------------------------------- ON TAP TODAY -- Shortage: Electricity
demand is expected to grow as Californians return to work from a three-day
weekend, increasing the likelihood of energy emergencies. -- Talks: Energy
officials huddle in Washington and Sacramento over Gov. Gray Davis' plan for
the state to buy energy for the beleaguered utilities. -- Credit: If Wall
Street doesn't like the plan to rescue the state's ailing utilities, it may
begin downgrading stock and bond ratings - even to "junk" status. --
Payments: Southern California Edison has a multimillion dollar bill coming
due, but the company says it has no money to pay.


Dear task force members,
Attached please find a draft report for us to discuss at the upcoming
conference call.  Also attached is a recent article in "Restructuring Today."
 I was given permission by "Restructuring Today"  for a limited distribution
of this article to this task force.  Rae

 - task force summary.PDF


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 01/08/2001
12:10 PM ---------------------------

Shirley Crenshaw
01/08/2001 11:07 AM
To: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Pinnamaneni
Krishnarao/HOU/ECT@ECT, Vasant Shanbhogue/HOU/ECT@ECT, Mike A
Roberts/HOU/ECT@ECT, Joseph Hrgovcic/HOU/ECT@ECT, Tanya
Tamarchenko/HOU/ECT@ECT, Zimin Lu/HOU/ECT@ECT, Martin Lin/HOU/ECT@ECT,
Maureen Raymond/HOU/ECT@ECT, Osman Sezgen/HOU/EES@EES, Paulo
Issler/HOU/ECT@ECT, Amitava Dhar/Corp/Enron@ENRON, Alex
Huang/Corp/Enron@ENRON, Kevin Kindall/Corp/Enron@ENRON, Kevin G
Moore/HOU/ECT@ECT, Clayton Vernon/Corp/Enron@ENRON, William
Smith/Corp/Enron@ENRON, Jose Marquez/Corp/Enron@ENRON, Chonawee
Supatgiat/Corp/Enron@Enron, Shalesh Ganjoo/HOU/ECT@ECT, Tom
Halliburton/Corp/Enron@Enron, Elena Chilkina/Corp/Enron@Enron, Sevil
Yaman/Corp/Enron@Enron, Sofya Tamarchenko/NA/Enron@Enron, Bob
Lee/NA/Enron@Enron, Gwyn Koepke/NA/Enron@Enron, Hector Campos/HOU/ECT@ECT,
Anita DuPont/NA/Enron@ENRON, Youyi Feng/NA/Enron@Enron, V Charles
Weldon/HOU/ECT@ECT, Praveen Mellacheruvu/HOU/EES@EES, Li Sun/NA/Enron@Enron,
Stephen Bennett/NA/Enron@ENRON, Roman Zadorozhny/HOU/EES@EES, Lance
Cunningham/NA/Enron@ENRON, Leann Walton/NA/Enron@ENRON, Shane
Green/HOU/EES@EES, Seksan Kiatsupaibul/HOU/EES@EES, Kate Lucas/HOU/ECT@ECT,
Nelson Neale/NA/Enron@Enron, Rabi De/NA/Enron@ENRON, Kenneth
Parkhill/NA/Enron@ENRON, Jaesoo Lew/NA/Enron@ENRON, Jason
Sokolov/HOU/ECT@ECT, Steve Bigalow/NA/Enron@Enron, Tom
Barkley/NA/Enron@Enron, Rakesh Bharati/NA/Enron@Enron
cc:
Subject: Research Directory

Oops!  Forgot the attachment!

---------------------- Forwarded by Shirley Crenshaw/HOU/ECT on 01/08/2001
11:01 AM ---------------------------

Shirley Crenshaw
01/08/2001 11:05 AM
To: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Pinnamaneni
Krishnarao/HOU/ECT@ECT, Vasant Shanbhogue/HOU/ECT@ECT, Mike A
Roberts/HOU/ECT@ECT, Joseph Hrgovcic/HOU/ECT@ECT, Tanya
Tamarchenko/HOU/ECT@ECT, Zimin Lu/HOU/ECT@ECT, Martin Lin/HOU/ECT@ECT,
Maureen Raymond/HOU/ECT@ECT, Osman Sezgen/HOU/EES@EES, Paulo
Issler/HOU/ECT@ECT, Amitava Dhar/Corp/Enron@ENRON, Alex
Huang/Corp/Enron@ENRON, Kevin Kindall/Corp/Enron@ENRON, Kevin G
Moore/HOU/ECT@ECT, Clayton Vernon/Corp/Enron@ENRON, William
Smith/Corp/Enron@ENRON, Jose Marquez/Corp/Enron@ENRON, Chonawee
Supatgiat/Corp/Enron@Enron, Shalesh Ganjoo/HOU/ECT@ECT, Tom
Halliburton/Corp/Enron@Enron, Elena Chilkina/Corp/Enron@Enron, Sevil
Yaman/Corp/Enron@Enron, Sofya Tamarchenko/NA/Enron@Enron, Bob
Lee/NA/Enron@Enron, Gwyn Koepke/NA/Enron@Enron, Hector Campos/HOU/ECT@ECT,
Anita DuPont/NA/Enron@ENRON, Youyi Feng/NA/Enron@Enron, V Charles
Weldon/HOU/ECT@ECT, Praveen Mellacheruvu/HOU/EES@EES, Li Sun/NA/Enron@Enron,
Stephen Bennett/NA/Enron@ENRON, Roman Zadorozhny/HOU/EES@EES, Lance
Cunningham/NA/Enron@ENRON, Leann Walton/NA/Enron@ENRON, Shane
Green/HOU/EES@EES, Seksan Kiatsupaibul/HOU/EES@EES, Kate Lucas/HOU/ECT@ECT,
Nelson Neale/NA/Enron@Enron, Rabi De/NA/Enron@ENRON, Kenneth
Parkhill/NA/Enron@ENRON, Jaesoo Lew/NA/Enron@ENRON, Jason
Sokolov/HOU/ECT@ECT, Steve Bigalow/NA/Enron@Enron, Tom
Barkley/NA/Enron@Enron, Rakesh Bharati/NA/Enron@Enron
cc:
Subject: Research Directory

Hello everyone:

Attached is an updated copy of the Research directory for your information.

If there are any changes, please let me know.

Thanks!

Shirley


---------------------- Forwarded by Darron C Giron/HOU/ECT on 10/10/2000
12:24 PM ---------------------------

	Enron North America Corp.

	From:  Enron Human Resources @ ENRON                           10/06/2000
05:27 PM

Sent by: Enron Announcements@ENRON
To: All Enron Downtown
cc:
Subject: United HealthCare Contracting Update

TO: Houston Area Employees Participating in Domestic Medical Plan Benefits

FROM: Enron Human Resources

We are pleased to pass along to you the fact that United HealthCare (UHC) and
Memorial Herman Health Systems (MHHS) reached agreement on a long-term
contract.   There will be no disruption in terms of accessing network
services from the hospital system or those providers who were scheduled to be
terminated.  Employees currently electing UHC will receive a confirming
letter shortly from UHC.

As mentioned in our earlier memo, it is our understanding that Cigna has also
been contacted by MHHS and are now in contract negotiations.

Open Enrollment packages are in the mail and you should consider the above
facts when making your decision on your medical election.


The Wholesale Power Trading Training will be held on Wednesday, June 20, 2001
in Houston (location to be determined and provided at a later date) from 9:00
a.m. to 6:00 p.m.     Please mark your calendars accordingly (lunch will be
provided).

Attendees are as follows:

 Harlan Murphy
 Elizabeth Sager
 David Portz
 Marcus Nettelton
 Janet Moore
 Leslie Hansen
 Genia Fitzgerald (not available)
 Steve Hall
 Christian Yoder
 Carol St. Clair
 Kay Mann
 Travis McCullough
 Jeff Hodge (if available)
 Mark Haedicke (if available)

If you have any questions, please do not hesitate to contact me at
713-853-5438.    Thanks.


First of the trade press reports???..

The FERC order has not been issued yet.

 -----Original Message-----
From: 	Calcagno, Suzanne
Sent:	Wednesday, September 26, 2001 4:43 PM
To:	Superty, Robert; Hall, Bob M; Jaquet, Tammy; Cantrell, Rebecca W.; Lamadrid, Victor; Smith, George F.; Sullivan, Patti; Farmer, Daren J.; Kinsey, Lisa; Molinaro, Jeffrey
Subject:	Proposed Rule Extends Marketing Affiliate Regulations to All Affiliates

NGI's Daily Gas Price Index
Breaking News : posted Sep 26, 4:16 PM
Proposed Rule Extends Marketing Affiliate Regulations to All Affiliates
Federal Energy Regulatory Commissioners Wednesday agreed to issue a notice of proposed rulemaking broadening the application of standards of conduct for transmission providers, including both natural gas pipelines and power lines, to require separation of the regulated monopolies from any other company affiliate.
Previously, the rules simply required creation of a firewall, including separate operations in separate locations staffed by separate personnel, between gas pipelines and their marketing affiliates. The proposed rule would wall off both gas and electric transmission operations from any other affiliate, gas or electric, including financial affiliates.
The Commission was presented with two options regarding the application of the proposed rule to electric transmission affiliates, which still in many cases have bundled operations. One option would enforce complete separation, while a second would have exempted employees who deal in sales or purchases of bundled retail native load. Staff and Commissioners Wood, William Massey and Nora Brownell appeared to favor walling off all affiliated personnel, so they would not be privy to market information about transmission operations that other non-affiliated competitors did not have access to.
Commissioner Linda Breathitt, however, argued for exempting personnel dealing solely with retail native load. Breathitt said that while she supported the eventual separation of the entities, she was concerned about the timing. "I see no compelling reason at this time; there have been no complaints and no evidence." She said she thought state commissions might consider the move an infringement on their jurisdiction. "I agree with concept philosophically, but I think there will be other opportunities later on, after we do a little more bridge-building with state commissions."
Wood said he understood "the political issue here with respect to federal-state relations, but I think this is an opportunity for discrimination that ought to be eliminated." Staff pointed out that if there were any problems with transmission reliability or if some small utilities had problems, waivers could be granted. Staff was questioned by the commissioners as to how much information was available to affiliate personnel. "If I am an affiliate employee dealing solely with retail native load, I can go into the control room and get all the information I want," one staffer responded.
Wood proposed, and the commissioners ratified, a proposed rule with no exceptions, but which makes clear that in the final rule the Commission may reverse field and determine that separation of employees dealing with sales of native load is not required. Commenting parties should provide cost/benefit analysis on both sides of the question. State commissions are also invited to comment. Wood had suggested the Commission extend the separation to all sales employees, "but make it clear that if we don't hear from people that they really want this separation, we ain't going to do it."


Megan,

Mara has been terminated so I looked in our files and found a spreadsheet for November.  However, it doesn't have the volumes filled in. Shannon Groenewald should be able to provide you with the actual volumes and all you should have to do is add them to this spreadsheet.  I have copied Shannon on this email so she should expect to hear from you.  Let me know if you have any questions.

Thanks,

Kim

 -----Original Message-----
From: 	Parker, Megan
Sent:	Thursday, December 20, 2001 9:57 AM
To:	Ward, Kim S (Houston)
Subject:	Citizens 11/01

Kim:
I tried to find Mara Bronstein in the address book, but I could not find her name.  I'm hoping you can help me.  Do you know if there is a Griffith spreadsheet for Nov?  My last day with Enron is next Thursday and I'm trying to complete Citizens before I go.

Megan


Please approve the following product type in Data Manager after 11 A.M.

US East Power Phy Spd

STEPS FOR APPROVAL:

click the  START button
select  PROGRAMS
select  TEST APPLICATIONS
select ENRONONLINE CLUSTER(PROD)
 PROCEED WITH USUAL LOGIN/PASSWORD
click the Enron Online Production Cluster "START" button
select EnronOnLine (this is the EOL Datamanager)
 PROCEED WITH EOL LOGIN/PASSWORD
click on the "+" for EnronOnLine
click on the "+" for Product Types
click on the "+" for "Awaiting Approval" (OR  "Partially Approved")
select the product requiring review as stated in e-mail above
Right "mouse" click on "properties" to view product set-up
TO APPROVE:  Right mouse click on "Approved"


wonderful --- thanks

 -----Original Message-----
From:  Jones, Tana
Sent: Friday, May 25, 2001 8:42 AM
To: Gray, Mary Griff
Subject: Re: AES Eastern Energy

I need to approve, I'll approve today.

	Mary Griff Gray/ENRON@enronXgate 05/25/2001 07:08 AM 	   To: Tana
Jones/HOU/ECT@ECT  cc:   Subject: AES Eastern Energy

Miss Tana ---
Is this app almost through Legal?  The customer is anxious to get on board
--- this has been an extremely difficult process so far.
Thanks, Tana, and have a wonderful holiday weekend.
Griff

 -----Original Message-----
From:  Gray, Mary Griff
Sent: Wednesday, May 23, 2001 6:32 AM
To: Sever, Stephanie; Jones, Tana
Subject: AES Eastern Energy

Ladies,

What's the status on this registration?  The customer is eager to receive
transaction status (calls fairly often so I would call that "eager").

Thanks,
Griff


That was nice!!!  I forgot what your reply was, do you need any of the two
extra tickets I have for Saturday?  Thanks.
PL


Dorothy, Joannie may have already responded, but Jeff is not available for
dinner Monday night.  This was communicated to Dr. Ghosh last week.  SRS

From: Dorothy Dalton@ENRON COMMUNICATIONS on 03/26/2001 01:28 PM
To: Ken Rice/Enron Communications@Enron Communications, Sherri
Sera/Corp/Enron@ENRON, Joannie Williamson/Corp/Enron@ENRON, Jeff
Skilling/Corp/Enron@ENRON
cc:

Subject: Re: 4/3/01 - 1:30-3:30 p.m. - Meeting Confirmation

Fyi - agenda for meeting with Partha Ghosh of Adventis next week.  Are Ken &
Jeff interested in dinner Monday evening?

Dorothy Dalton
Office of the Chairman
Enron Broadband Services
1400 Smith Street, EB4505
Houston, TX  77002
713-853-6724 - direct
713-853-9469 - fax
----- Forwarded by Dorothy Dalton/Enron Communications on 03/26/01 01:16 PM
-----

	Parthasg@aol.com
	03/23/01 10:26 PM

		 To: Dorothy Dalton/Enron Communications@Enron Communications
		 cc: PGHOSH@adventis.com, MBruneau@adventis.com, ABelt@adventis.com,
Bkirby@adventis.com
		 Subject: Re: 4/3/01 - 1:30-3:30 p.m. - Meeting Confirmation

Dear Dorothy:

Thank you very much for your note; below I have laid out the agenda for the
meeting for Ken and Jeff's approval:

1. Introduction to Adventis and our work in the Broad band space; - 20 minutes
2.  Ken's brief on Broad Band Services group's way forward: challenges,
issues, aspirations; - 15 minutes
3. Jeff's expectations and views form the corporate center;-10 minutes
4. Adventis' approach, likely routes to partnership;-10 minutes
5. Next steps: JEFF, KEN and our team.- 10/15 minutes

During the second hour with Ken, we wish to address specific points on the
out come of the first meeting to define areas of focus for path forward:

1 Strategic and operational issues for short term value creation, and
long-term robust development of BBS as global player
2. Acceleration capacity at BBS to capture short range opportunities versus
outside assistance.
3. Likely ways we could engage with Enron for both short term and long-term
wins.
4. Time line for creating the upside.

I am sure Ken and Jeff, will have a lot to add. Please do let me know.

Dorothy, given the significant challenges and opportunities ahead for Enron
BBS, we will have four of our senior most partners with deep insights into
Broad band and ASPs/CSPs join the meeting. I will come the night before, if
possible to have dinner with Jeff and/or Ken. Please do let me know the
possibility.

Regards,

Partha Ghosh
617 421 9990 X475

 - att1.htm


Hey guys,, just thought that this one was too good not to pass on.  Hope you
all had a wonderful Easter or Passover!!
I miis you all!!

Lots of love, KIM

>From: "andrea Nixon" <talk2nixon@hotmail.com>
>To: gintzdl@earthlink.net, miacilio@lycos.com, Tomhnixon@yahoo.com,
>liljenharris@mailcity.com, wcrich@juno.com, nixonjerseygirl@aol.com,
>nixon750@hotmail.com, kimberly_kirkwood@hotmail.com,
>moniquedole@hotmail.com, melnixon@yahoo.com
>Subject: Fwd: FW: I believe...
>Date: Fri, 13 Apr 2001 16:15:36 -0000
>
>
>
>
>>From: "Earle, Judy" <jearle@cobaltgroup.com>
>>To: "'searle@ackerley.com'" <searle@ackerley.com>,
>>"'talk2nixon@hotmail.com'" <talk2nixon@hotmail.com>,   "'Carrie-Boers
>>-ILH'"  <cboers@fwsd.wednet.edu>,   "'Stiffarmloans@aol.com'"
>><Stiffarmloans@aol.com>,   "'GILLASPY, CHET D.'" <CHEGIL@SAFECO.com>,
>>"'Lindzee Perez'" <perezlindzee@hotmail.com>
>>Subject: FW: I believe...
>>Date: Fri, 13 Apr 2001 09:06:57 -0700
>>
>>
>>
>>-----Original Message-----
>>From: Kim Jones [mailto:KJones@Aetea.com]
>>Sent: Friday, April 13, 2001 9:02 AM
>>To: 'Penny Jones'; 'Becky'; 'Heidi'; 'Kellie Marzec'; 'Judy Earle'
>>Subject: FW: (no subject)
>>
>>
>>This kinda sums up life.........I like what it has to say!!
>>-----Original Message-----
>>From: John Dupras
>>Sent: Friday, April 13, 2001 8:54 AM
>>To: Christine Pillatsch; Kim Jones; Serena Dislers
>>Subject: FW: (no subject)
>>
>>
>>
>>
>>
>>John Dupras
>>Account Executive
>>AETEA Information Technology Inc
>>425-519-4543 office
>>253-226-3405 cell
>>jdupras@aetea.com
>>
>>
>>-----Original Message-----
>>From: MMoore9099@aol.com [mailto:MMoore9099@aol.com]
>>Sent: Wednesday, April 11, 2001 7:10 AM
>>To: batesmj@usa.net; Dorsett6@cs.com; PJBLUFORD@aol.com; mollets@mwr.is;
>>RCou444@aol.com; DianeColcl@aol.com; eileen.dupras@vmmc.org;
>>jayne.galenti@eds.com; lpud@juno.com; marions21@hotmail.com;
>>mann-1@msn.com;
>>tlmccall@ix.netcom.com; sunny@mindsync.com; rlsummer@tcc.tacoma.ctc.edu;
>>asrussell@ucdavis.edu; HJTENNY@aol.com
>>Subject: (no subject)
>>
>>
>><< I believe-
>>that we don't have to change friends
>>if we understand that friends change.
>>
>>I believe-
>>that no matter how good a friend is,
>>they're going to hurt you every
>>once in a while and you must forgive
>>them for that.
>>
>>I believe-
>>that true friendship continues to grow,
>>even over the longest distance.
>>Same goes for true love.
>>
>>I believe-
>>that you can do something in an instant
>>that will give you heartache for life.
>>
>>I believe-
>>that it's taking me a long time
>>to become the person I want to be.
>>
>>I believe-
>>that you should always leave loved ones
>>with loving words. It may be the last
>>time you see them.
>>
>>I believe-
>>that you can keep going
>>long after you can't.
>>
>>I believe-
>>that we are responsible for what we do,
>>no matter how we feel.
>>
>>I believe-
>>that either you control your attitude
>>or it controls you.
>>
>>I believe-
>>that regardless of how hot and
>>steamy a relationship is at first,
>>the passion fades and there had
>>better be something else to take
>>its place.
>>
>>I believe-
>>that heroes are the people
>>who do what has to be done
>>when it needs to be done,
>>regardless of the consequences.
>>
>>I believe-
>>that money is a lousy way of keeping score.
>>
>>I believe-
>>that my best friend and I can do anything
>>or nothing and have the best time.
>>
>>I believe-
>>that sometimes the people you expect
>>to kick you when you're down,
>>will be the ones to help you get back up.
>>
>>I believe-
>>that sometimes when I'm angry
>>I have the right to be angry,
>>but that doesn't give me
>>the right to be cruel.
>>
>>I believe-
>>that just because someone doesn't love
>>you the way you want them to doesn't
>>mean they don't love you with all they have.
>>
>>I believe-
>>that maturity has more to do with
>>what types of experiences you've had
>>and what you've learned from them
>>and less to do with how many
>>birthdays you've celebrated.
>>
>>I believe-
>>that it isn't always enough to be forgiven by others. Sometimes you
>>have to learn to forgive yourself.
>>
>>I believe-
>>that no matter how bad your heart is broken the world doesn't stop
>>for your grief.
>>
>>I believe-
>>that our background and circumstances may have influenced who we are,
>>but we are responsible for who we become.
>>
>>I believe-
>>that just because two people argue, it doesn't mean they don't love
>>each other
>>And just because they don't argue, it doesn't mean they do.
>>
>>I believe-
>>that you shouldn't be so eager to find out a secret. It could change
>>your life forever.
>>
>>I believe-
>>that two people can look at the exact same thing and see something
>>totally different.
>>
>>I believe-
>>that your life can be changed in a matter of hours by people who
>>don't even know you.
>>
>>I believe-
>>that even when you think you have no more to give, when a friend
>>cries out to you you will find the strength to help.
>>
>>I believe-
>>that credentials on the wall do not make you a decent human being.
>>
>>I believe-
>>that the people you care about most in life are taken from you too soon.
>>
>>
>>Send this to all the people YOU BELIEVE In...
>>I just did.
>>
>

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


The report named: Violation/Notification Memo <http://erv.corp.enron.com/linkFromExcel.asp?report_cd=60&report_name=Violation/Notification+Memo&category_cd=2&category_name=ENRON%20CONSOLIDATED&toc_hide=1&sTV1=2&TV1Exp=Y&current_efct_date=11/08/2001>, published as of 11/08/2001 is now available for viewing on the website.

Publisher's Notes:

PRELIMINARY


Please format the text files to be processed through GRMS in the following
manner.

1) Sort by book id, then by master deal id, then by reference date.
2) The dates must be in the following format.  4-Mar-97
3) The book names must be the same every day.
4) If the cell should contain a number please put a zero if there is no
value.  GRMS will not recognize a N/A in a field that is supposed to contain
a number.
5) Please name the files in a manner consistent with those below.

If you have any questions feel free to give me a call.

Thanks,
Robin


Phillip/Tim/Yevgeny
Please review the two attachments below for final sign-off and Acceptance of this deliverable.

Phillip, you have approved these documents prior to Tim and my input reflected below, which primary consist of showing how the Knowledge system is connected to the simulation system (Tim's idea with some direct guidance from me to Accenture on how to reflect this in the flow chart). Thus it shows how the user can go to the knowledge system and get help during the simulation. This is reflected in the high level design flow chart.ppt

In addition, Accenture has added the following condition language to the High Level design. doc

	After sign-off on this document, the following things can be changed within the first two weeks of the content development phase:
?	Small story-line details (Example: company background, learner role)
?	Resources (reports and interviews) (Example: add a news article, remove a storage report)
?	Order and details of learner actions and decision (Example: add a sub-step where learner identifies the location of each risk; have the learner calculate net present value after choosing the best instrument rather than before)

Changes to any other High Level Design elements (Example: add a step where learner uses a pricing model to price a deal), or changes to anything after the first two weeks, will impact the budget and schedule.

Issue: Do we agree to this condition. I recommend we agree. Although, we are in the content development phase the two week period begins from the time we accept this deliverable. I have confirmed this with Accenture and they will send another email with this change, but I do not want to hold up acceptance since we are on our clock.

Thanks. Phillip, Tim & Yevgeny (if possible), please e-mail with your thumbs up or further input at your earliest convenience, but no later then COB 10/23.

Cheers
Kirk

---------------------- Forwarded by Kirk McDaniel/HOU/EES on 10/19/2001 07:58 AM ---------------------------

mery.l.brown@accenture.com on 10/18/2001 12:46:06 PM
To:	kmcdani@enron.com
cc:	donald.l.barnhart@accenture.com, laura.a.de.la.torre@accenture.com
Subject:	Revised High Level Design

Kirk,

Attached are the latest High Level Design and Flow Chart with revisions
based on Tim's and your comments. Please let me know if you have any
questions.

(See attached file: High Level Design.doc)(See attached file: High Level
Design Flow Chart.ppt)

Mery

Time spent on these revisions:
Mery - 30 minutes
Laura - 1 hour

This message is for the designated recipient only and may contain
privileged or confidential information.  If you have received it in error,
please notify the sender immediately and delete the original.  Any other
use of the email by you is prohibited.
 - High Level Design.doc
 - High Level Design Flow Chart.ppt


No.  I will not agree to any penalty charges on nomination errors.  Please
call me if you should have any questions.

Sincerely,
Mike Grigsby


I didn't know about this one.  I'm going to follow up with Brent on this one
and I will get back to you in a day or so.  We'll save the Scott Mills
discussion for a later date!

On another note, I enjoyed lunch today.  Let me know when you want to get out
of the building again sometime.  --Sally

Louise Kitchen
06/05/2000 04:59 PM
To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Aghh!

Brent Price just stole Jennifer Denny - no discussion or anything.  So I
obviously will get Scott Mills in return!
Louise


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/15/2001
11:08 AM ---------------------------

Shirley Crenshaw
02/15/2001 09:05 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: I just like hearing it.....

This is great!

SAY IT OVER AND OVER AGAIN !

Clinton isn't president

A man goes to the White House and asks to see
President Clinton.  The Marine on duty tells the
guy that Clinton isn't President any longer, please
leave.

The man goes away.

The next day he comes back to the White House and
asks to see President Clinton.  Marine on duty tells
the guy that Clinton is not the President any longer,
please go away.

The man goes away.  The next day he comes back again,
and again the same Marine is on duty.

The man asks to see President Clinton and the Marine
says, -- WHY DO YOU KEEP COMING HERE ASKING FOR HIM?
CLINTON IS NOT PRESIDENT ANYMORE!!!

The man smiles happily and says,
"I know, I just like hearing it."


CALENDAR ENTRY:	APPOINTMENT

Description:
	Donna - Floor Plan

Date:		11/27/2000
Time:		2:00 PM - 3:00 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Press Release Issued May 31, 2001 2:23:00 PM ET
The New DTE Energy Formed With Closing of MCN Energy Group Merger

Full text of this press release available at:
http://www.prnewswire.com/cgi-bin/micro_stories.pl?ACCT=no&TICK=MCN&STORY=/www/story/05-31-2001/0001504780&EDATE

-----------------------------------

Press Release Issued May 31, 2001 2:24:00 PM ET
Merger Will Create New DTE Energy Foundation, Awards Granted

Full text of this press release available at:
http://www.prnewswire.com/cgi-bin/micro_stories.pl?ACCT=no&TICK=MCN&STORY=/www/story/05-31-2001/0001504781&EDATE

-----------------------------------

Additional investor information is available at:
http://12.29.196.116/

To unsubscribe, click below:
http://199.230.26.96/cgi-bin/unsubscribe?LIST=mcn

Thank you for your interest,
MCN Energy Group

Please Note: The above hyperlink(s) may not retrieve the
web page if the address extends to more than one line.
If this should occur, please copy the full text of the
address and paste it into the address box in your web browser.
Do not reply to this email.


We have received the signed faxed copy of the Letter Agreement dated 12/28/99
amending the ETA for the referenced counterparty.  Copies will be distributed.


Mike,

Pursuant to section 8(a) of the Letter Agreement, please be advised that ENA made a payment to General Electric in the amount of $386,342.00 on 10/31/2001 (fed ref # 4378).  Please note ENA has not yet received payment for $48,000 from NorthWestern for the storage invoice submitted 9/28/2001.  For your convenience, I have attached a copy of the storage invoice.

Please feel free to call if you have any questions or concerns.

Regards,

Chris Booth
Enron North America
1400 Smith Street, EB3147c
Houston, Texas 77002
(713) 345-3364 - phone
(713) 646-3037 - fax
chris.booth@enron.com


I can't open the attachment, can you?

K-

Kay Mann
01/30/2001 01:10 PM
To: Rusty Stevens/Corp/Enron@ENRON, Kathleen Carnahan/NA/Enron@Enron
cc:

Subject: Shaeffer redline

I ran a redline from the last version I had electronically.

I've forwarded the current version to Herman for his review and approval.
Due to some of the changes, Enron may need some revisions as well.

Kay


Bev:
Based on yesterday's conversation, we've set up a call for 2 PM California time on Friday.  Here's the call-in info.

Best,
Jeff

 -----Original Message-----
From: 	Dernehl, Ginger
Sent:	Thursday, October 18, 2001 10:00 AM
To:	Dasovich, Jeff; Kaufman, Paul; Mara, Susan; Shapiro, Richard; Steffes, James D.
Cc:	Alamo, Joseph; Noske, Linda J.; Dernehl, Ginger
Subject:	Conf. Call re:California Campaign Contributions

A conference call has been scheduled for Friday, October 19 @ 4:00 PM (CDT) regarding the above subject.  Please make note of the dial-in information below:

Number:	1-877-660-6591
		Participant Code 558191

Thanks!

Ginger Dernehl
Administrative Coordinator
Global Government Affairs
Phone# 713-853-7751
Fax# 713-646-8160


Gerald,

 I wanted to get you started on this ASAP as we discussed.  I don't expect a
finished product but
 preferr that you initiate the draft and I'll work with it as necessary in
you absence.  Thanks for you
 cooperation.

 I have attached a summary of the Parking Provision and the CSA in addition
to the Term Sheet
 that is dated but you get the idea.


Here are some ideas for discussion this  week.??
?
Next week we won't be meeting, and after that we  will have only two meeting
times left before Christmas.? Be thinking about  what you'll want to do as a
group?for the last meeting, since it'll be here  real soon.? Some groups have
a party, with a Chinese gift exchange (why is  it called Chinese?), or some
go to eat somewhere and then go as a group in a van  or suburban to look at
Christmas lights, etc.? If your group doesn't have  some tradition or
enjoyable end to the semester, be imaginative and see if you  can't come up
with something fun to do.? Of course if you need help let me  know!
?
Bobby
 - NEON Roaring 5.doc


FYI

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/17/2000
02:52 PM ---------------------------

Vince J Kaminski
02/17/2000 11:25 AM
To: gappy@stanford.edu
cc: Vince J Kaminski/HOU/ECT@ECT, Ravi Thuraisingham/Enron
Communications@Enron Communications
Subject: Re: Visiting Enron

Giuseppe,

Thanks a lot. I would appreciate if you could set up a meeting with Prof.
Bambos.
We talked to him during our last visit and we would like to follow up with
some
specific proposals regarding research projects Enron could sponsor.

Vince

Giuseppe Andrea Paleologo <gappy@stanford.edu> on 02/14/2000 03:20:52 PM
Please respond to gappy@stanford.edu
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Visiting Enron

Dr. Kaminski, I would like to thank you very much for taking care of Amy and
me
during our trip to Houston. What I saw at Enron Communication was nothing
short
of revolutionary. More than that, I was impressed with the drive of the
people,
their kindness, and their proficiency. I look forward to meeting you again in
Stanford during the last weekend of February. I will send you an email next
week, so that we can arrange a meeting between you and Prof. Bambos.
All the best wishes,

Giuseppe

--
::Giuseppe A Paleologo::                  http://www.stanford.edu/~gappy
________________________________________________________________________
"What a waste it is to lose one's mind. Or not to have a mind is being
very wasteful. How true that is."

    - Vice President Dan Quayle winning friends while
      speaking to the United Negro College Fund, 5/9/89 -


The following counterparty has changed its name from

ALLROUND FUEL TRADING BV

to

ALLROUND FUEL TRADING CHEMOIL  BV

Regards

Stuart
 -----Original Message-----
From: 	Patel, Nish
Sent:	20 November 2001 09:32
To:	Sheldrick, Stuart
Subject:	RE: RE : Allround Fuel Trading BV - NAME CHANGE

Stuart,

If Brian has been notified by the counterparty then that's sufficient - please amend accordingly.

Thanks and rgds,

Nish

 -----Original Message-----
From: 	Sheldrick, Stuart
Sent:	20 November 2001 09:31
To:	Patel, Nish
Cc:	Hunter-Lindsay, Brian
Subject:	RE: RE : Allround Fuel Trading BV - NAME CHANGE

Nish

I have spoken to Brian, he was notified of the this change by the counterparty
Please let me know once you have agreed this name changed and I will make the amendments in GCP

Regards

Stuart

 -----Original Message-----
From: 	Patel, Nish
Sent:	19 November 2001 14:20
To:	Sheldrick, Stuart; Millerchip, Rebecca; Maley, Paul
Cc:	DL-Lon Credit; Hunter-Lindsay, Brian
Subject:	RE: RE : Allround Fuel Trading BV - NAME CHANGE

Stuart,

Did youn receive a confirmation from the counterparty regarding the name change????

Rgds,

Nish

 -----Original Message-----
From: 	Sheldrick, Stuart
Sent:	19 November 2001 12:11
To:	Millerchip, Rebecca; Maley, Paul
Cc:	DL-Lon Credit; Hunter-Lindsay, Brian
Subject:	RE : Allround Fuel Trading BV - NAME CHANGE

The name of the following counterparty CPID 56764 has changed from
Allround Fuel Trading BV
to
Allround Fuel Trading Chemoil BV
We are about to amend the record in GCP, please let me know if this will cause any problems

Regards

Stuart


Facility Planning confirms a verbal approval to the faxed Burlington
revisions for January 2001.


no problem. I just received my copy of the new policy with AIG and will send you proof.


----- Forwarded by Sara Shackleton/HOU/ECT on 08/09/2000 03:17 PM -----

	Mark Taylor
	08/09/2000 02:47 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: FX Transactions

Looks like Justin has already contacted S&C.
----- Forwarded by Mark Taylor/HOU/ECT on 08/09/2000 02:46 PM -----

	Justin Boyd
	08/09/2000 12:53 PM

		 To: Alan Aronowitz/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Marcus
Nettelton/NA/Enron@ENRON
		 cc:
		 Subject: FX Transactions

Gentlemen - please see below as well as the S&C memo attached.  I will also
send you a related email later.

Thanks.
Justin
---------------------- Forwarded by Justin Boyd/LON/ECT on 09/08/2000 18:55
---------------------------

Jon Barrett@MGLTD
07/08/2000 17:46
To: Justin Boyd/LON/ECT@ECT, Janine Juggins/LON/ECT@ECT
cc: Trena McFarland/LON/ECT@ECT, Kevin Rhodes/MGLTD_London/MGLTD@MGLTD, Sid
Tipples/MGLTD_London/MGLTD@MGLTD, Alfred Pennisi/NYC/MGUSA@MGUSA, Andrew
Cornfield/LON/ECT@ECT

Subject: FX Transactions

We received the attached from Sullivan & Cromwell re the FX business and the
possibilities of using a US companyn which company to use for contract
purposes. At a meeting here at MG today, the consensus/preference was not to
use a UK company as we have no full ISD (chapter 10) firm nor the wish to
change MG's status.

Per the advice from S&C, we like the idea of using a US corporation with a UK
"arranger" to cover any UK regulatory issues that arise. Dependent on where
the business will end up (I understand to be discussed by Gary Hickerson/Mike
Hutchinson 18th August), the following appears to be the among the logical
solutions:

1. Contractual entity - either Enron North America, MG London Inc or Newco
Inc.
2. Arranger - either EEFT Ltd, Metallgesellschaft Ltd or MG Brokers Ltd
(depending on the effect on their chapter 3 status for the last two).

The current customer base consists of entities in the US, Canada, France, UK
and Switzerland.

Please advise on any group/tax issues that can affect the final decision. If
you need any further information, please let me know.

Many thanks.

---------------------- Forwarded by Jon Barrett/MGLTD_London/MGLTD on
07/08/2000 15:59 ---------------------------

GILBERGD@sullcrom.com on 06/08/2000 15:45:55
To: jbarrett
cc: RAISLERK@sullcrom.com

Subject: FX Transactions

eSafe Protect Gateway (tm) has scanned this mail for viruses, vandals and
suspicious attachments and has found it to be CLEAN.

File: 62cy01!.DOC (38,400 bytes)
Encoding: Base64
Result: Clean.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Attached is a draft of the memo we discussed on the proposed FX business.
Please call or e-mail with any questions.  Best regards.

----------------------------------

This e-mail is sent by a law firm and contains information
that may be privileged and confidential. If you are not the
intended recipient, please delete the e-mail and notify us
immediately.

 - 62cy01!.DOC


Dear Don,

Just wanted to let you know that the following items from your
order #9276038 have shipped and are on the way to your door:

item sku 40145298    qty :1  GONE IN 60 SECON DVD
*This item shipped on 11/29/2000

If you have any questions regarding this or any other order, please
feel free to contact us at any time by visiting customer support at
https://www.us.buy.com/corp/support.

We built buy.com with one thing in mind - enabling you and all our
customers to buy products better - that means offering you top brands,
superstore selection, low prices, and outstanding service.

Once again, thank you for your order. We look forward to earning your
business as we set out to be the "best place to buy on the Internet."

Sincerely,

Travis Fagan
Vice President, Customer Support

*****************************************************************

-If there are other items in your order that have not yet shipped,
 we will send you a confirmation email as soon as they do.

-Do not be concerned if items in your order arrive in separate
 packages. For quicker delivery, we ship from multiple warehouses
 throughout the country.

-You can track your order online at
 https://www.us.buy.com/corp/support/login.asp

******************************************************************
Please enjoy these offers from our partners:
******************************************************************

* Holiday gift values for everyone on your list!  Save up to 20%, or
  get free shipping and handling, and more - at many of your favorite
  merchants.  Only for Cardmembers.  Only at the Offer Zone.

   http://www.us.buy.com/clickfrom/shipping/amexconsumer1113.asp

* Get $10 Off when you shop for your home, from your office.

   http://www.us.buy.com/clickfrom/shippingconf/netgrocer.asp

* Get $100 off buy.com when you open an E*TRADE account!

   http://www.us.buy.com/clickfrom/neweacct/etrade_0801.asp


Joe,

I'm meeting w/Greg today about you.  I'll call you this afternoon or tomorrow
morning.

Liz

"Mathew, Joe" <jmathew@chematch.com> on 06/26/2000 12:32:15 PM
To: "'greg.whalley@enron.com'" <greg.whalley@enron.com>
cc: "'liz.m.taylor@enron.com'" <liz.m.taylor@enron.com>
Subject: FW: Hello Again

Greg,

I trust that you are doing well.? In reference to the email below, I will
plan on calling you this week to discuss.? I have not heard from you, most
likely due to your hectic schedule, but my enthusiasm remains extremely high.

Best Regards,
Joe

Joseph P. Mathew
Vice President-Information & Analytics
CheMatch.com
2900 North Loop West, Suite 1120
Houston, TX 77092

(Main):(713)681-6600 Ext. 2238
(Cell):(832)423-7435
(Fax) :(713)681-0906
(E-mail):jmathew@chematch.com
(URL): www.chematch.com
(URL): www.petrochem.net

-----Original Message-----
From: Mathew, Joe
Sent: Tuesday, June 13, 2000 11:06 AM
To: 'greg.whalley@enron.com'
Cc: 'liz.m.taylor@enron.com'
Subject: Hello Again
Importance: High

Greg,

I do hope you remember me, and that Liz Taylor passed the note on to you
requesting a meeting with you regarding possible re-employment with Enron,
but more specifically, employment with Enron Net Works.? I believe that you
are running the efforts of that group, and I am more than excited to speak
with you about employment opportunities.

Although you have interviewed me in the past for the crude oil options
trading position (1996, my first year at Enron), the passage of time
hopefully allows me to refresh you on my background, in brief.

Pursuant to working at Enron, I currently work at Chematch.com, a leading
online, real-time B2B Exchange, concentrating in the petrochemical and
polymer industry, but with reaches into the fuel products arena.? I was one
of the first dozen employees. We were the first movers of our business type
in this vertical.? My role here has been on the 1) business development
efforts, 2) prime member on the venture capital raising process, and 3) prime
member of the IPO process/due diligence team.? Most recently, I was promoted
from Vice President to Vice President & Senior Officer, heading the entire
content portion of our firm (petrochem.net).

Prior to joining Enron, I attended the University of Chicago Graduate School
of Business and received an MBA with concentrations in Analytic Finance and
Accounting.? Prior to that, I spent three years on Wall Street with Merrill
Lynch and Prudential Securities, in in both investment banking and FI capital
markets.

If you need a couple of quick recommendations from Enron, I would humbly
suggest Fred Lagrasta, Jeff Shankman, Harold Buchanan, Donald M. Black, Greg
Woulfe, and others of your choice.

Attached is my resume for your review.? I know the extremely busy schedule
that you uphold, but would greatly appreciate the chance to meet you once
again to discuss any opportunity you may see fit for me within your group.

Best Regards,

Joseph P. Mathew
Vice President-Information & Analytics
CheMatch.com
2900 North Loop West, Suite 1120
Houston, TX 77092

(Main):(713)681-6600 Ext. 2238
(Cell):(832)423-7435
(Fax) :(713)681-0906
(E-mail):jmathew@chematch.com
(URL): www.chematch.com
(URL): www.petrochem.net

?
 - JoeDoc.doc


what do you want for it?


Julie:

I talked to both Maureen and Tanya and neither one want this service and
have not been using it.

Maureen told me that she told you a year ago that she did not want Telerate
(when she was supporting Gary Hickerson's group on 30).  If that is the case,
we probably need a refund.

Let me know if there is anything that can be done about this.

The only person in our group that wants Telerate is Jason Sokolov and I
put in a request for that yesterday.  Please cancel everything else.

Thanks!

Shirley

From: Julie Pechersky/ENRON@enronXgate on 04/09/2001 12:33 PM
To: Shirley Crenshaw/HOU/ECT@ECT
cc:
Subject: RE: Various Market Data Charges to the Research Group for February
2001

Hi Shirley,
 Regarding Telerate:  I can cancel the service for both Maurenn and Tanya,
but another name commonly used for the Telerate application is Bridge or
Bridgestation so you may want to just ask the two of them once more to be
sure that they do not use it.  Just let me know and I will cancel billing

Jason can get access to it by submitting an e-request for him for Telerate.
When you go into E-request and it is prompting you for what application to
choose, type in the words Market Data and hit Search.  Telerate will pop up
as an option and within that choose the role Basic Energy.  We will take care
of it from there.

I will also remove Hector Campos from Reuters.  Was there anyone else being
charged for Reuters services that are not needed?

I will also remove Clayton Vernon.  I do not see anything under the name Brad
Amoine, is this the correct spelling of his name?  I will also find
out where Shalesh's charges should be moved to.

Thanks for updating us and let me know if there is anything else.

Julie

 -----Original Message-----
From:  Jackson, Clifford
Sent: Wednesday, April 04, 2001 1:44 PM
To: Crenshaw, Shirley
Cc: Pechersky, Julie
Subject: RE: Various Market Data Charges to the Research Group for February
2001

Hi Shirley.  I've copied this to Julie Pechersky, who maintains the Market
Data database, and will be able to make the user changes you request.  She'll
also be able to tell you how / when Telerate can be enabled for Mr. Sokolov.

We get the billing data from her, so once it is correct there, it will be
billed correctly.

Cliff Jackson

 -----Original Message-----
From:  Crenshaw, Shirley
Sent: Wednesday, April 04, 2001 1:31 PM
To: Jackson, Clifford
Cc: Kaminski, Vince
Subject: Various Market Data Charges to the Research Group for February 2001

Clifford:

In reviewing our February EIS Billing Summary for Co#0413, CC#107043,
I have several questions.

Telerate: (February charges: $3,032,35)
I polled the group and only one person has asked for Telerate and he is
not shown being charged for it.    That is Jason Sokolov.  He would like to
have access to Telerate.  If you could let me know how to get that for him.

The largest percent of the Telerate charges appear to be for Maureen
Raymond, who says that she does not use Telerate.  Could she be accessing
some data that she does not know is Telerate?  Please let me know.  If there
are individual accounts for Telerate the only one we need is for Jason
Sokolov,
unless Maureen's charges are for something that she does not know is Telerate.
Tanya Tamarchenko does not need Telerate and she has the second largest
percentage of the charges.  Anyway, the only Telerate subscription we need is
for Jason Sokolov.

Reuters: (February charges:  $405.96)
No one in Research uses Reuters.  I believe most of the charges are for
Hector
Campos who used it when he was on the trading desk.  When he rotated into the
Research group he did not need it any longer, but is still being billed for
it.  Please
remove from the Research Cost Center.

The following individuals are no longer with Enron or no longer with Research
and their accounts should be removed from the Research Cost Center.

Clayton Vernon  No longer with the Research Group Remove his LIM/LIM/EXCEL
and LIM Core charges from the Research Cost Center
Brad Amoine  No longer with Enron   Remove his LIM/LIM/EXCEL and LIM Core
charges from the Research Cost Center
Shalesh Ganjoo No longer with the Research Group Remove his LIM and LIM Core
charges from the Research Cost Center

I hope this is not too confusing!

Please advise.

Thanks!

Shirley Crenshaw


>  -----Original Message-----
> From:  Lindner, Fred
> Sent: Friday, February 23, 2001 5:23 PM
> To: Cherry, Beth
> Subject: http://www.thomasbohnet.com/hard/AYB1.ASF
>
>
>
> Fred Lindner
> Viceroy of Pixels
> EnFORM Technology
> 713.350.1826
> fred.lindner@enform.com
>
> Somebody set up us the bomb!!
>


FYI.
----- Forwarded by Jeff Dasovich/NA/Enron on 05/04/2001 04:25 PM -----

	"Costigan, Richard" <Richard.Costigan@asm.ca.gov>
	05/03/2001 05:50 PM

		 To: "'jeff.dasovich@enron.com'" <jeff.dasovich@enron.com>,
"'Kenneth.Lay@enron.com'" <Kenneth.Lay@enron.com>
		 cc:
		 Subject: California Energy Crisis Timeline

 <<Energy Crisis Timeline.doc>>

Good afternoon:

You have been added to an e-mail distribution list form Assembly Republican
Leader Dave Cox's office.  This timeline is one of many documents produced
by the Assembly Republican Caucus.  Daily documents include daily agendas
and a daily energy briefing document.  I will forward today's copies to you.

If you have any questions as a result of your meeting with Mr. John
Campbell, please do not hesitate to wither contact Mr. Campbell or Mr. Cox,
or this office.  On behalf of Mr.. Cox, please accept his apologies for
having to reschedule the meeting due to session.

If you have any questions, please do not hesitate to contact us.

Thank you,

Richard

Richard Costigan, III
Chief of Staff
Office of the Assembly Republican Leader
California State Assembly
Phone:(916) 319-2005

 - Energy Crisis Timeline.doc


Rick & Joe --

Here are the people that I would recommend we anoint for the "lead" and
"team" positions in each relevant market.  I would like any feedback ASAP so
I can get with Ed Baughman and finalize.

ERCOT - Ron McNamara (Lead); Robin Kittel

SPP - Sarah Novosel (Lead); Ron McNamara [We need to replace Sarah Novosel
within 3 months]

SERC - Joe Connor (Lead)

FRCC - Dan Staines (Lead); May Need another Person

MISO (ECAR/MAIN/MAPP) - Jeff Brown (Lead); Kerry Stroup, Janine Midgen

PJM - Tom Hoatson (Lead)

NY - Howard Fromer (Lead)

NEPOOL - Dan Allegretti (Lead)

Please let me know your thoughts.

Jim


Can you print this for me?  Thanks.
---------------------- Forwarded by Sally Beck/HOU/ECT on 04/03/2001 09:51 AM ---------------------------

	Enron North America Corp.  From:  General Announcement @ ENRON                           04/02/2001 11:53 PM

Sent by:	General Announcement@ENRON
To:	All Enron Worldwide
cc:
Subject:	Enron's 2001 Goals

Our vision to become The World's Leading Company positions our company for great success this year and beyond.  Our success is dependent on execution.  With that in mind, we are making Enron's 2001 corporate and business unit goals available to employees.

Please take a few minutes to review our 2001 goals on Enron's intranet at http://172.28.92.190/bowne/    We believe they will help you gain a better understanding of our vision for the company and will inspire you to identify innovative ways to help your organization and Enron achieve our objectives.  We have a lot to accomplish this year, and with your hard work and dedication, we can realize another year of stellar performance.


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 09/18/2000
04:49 PM ---------------------------

Pinnamaneni Krishnarao
09/18/2000 02:10 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: pres. files


Hey Steve; S
Sorry to bug you, but I'd like to ask howyou want us to include/review the
MD's on 9 Jan, and whom among that group we should anticipate being reviewed,
having profiles and data on etc?  We have the normal straight (for lack of a
better description) MD's; we have the COO's who are also MD's (Lavorato,
Sunde, Bowen, Mccarty, et. al); and finally we have the former EC members who
are not Policy Committee (but were, and perhaps still are EC ( i.e. Haug,
Bannentine, Sanjay, Tom White).

Should they be :
reviewed all one group,
divided so that COO's who are also policy committee and will be present on 9
Jan remain in NR during the main review period, then excused for their reviews
How to handle the former EC members? Are they still EC or effectively MD's of
another level to be reviewed separately?

Welcome your thoughts and advice on this,

Regards, Gina


Ludmila,

Skontaktowalem sie z autorem ksiazki i obiecal mi wyslac  ja
na moj adres.

Wicek

Ludkam@aol.com on 01/30/2001 01:31:45 AM
To: vkamins@ect.enron.com, VKaminski@aol.com
cc:
Subject: Ksiazka do zamowienia w Polsce

Wicku, rozmawialam z Jadzia, pytala sie, czy pamietales wyslac e-mail do
Marysi na temat ksiazki, ktora chcesz zeby kupila dla ciebie. Martwi sie, ze
myslisz, ze nie chce tego zrobic, ?Marysia sparawdza e-mail codziennie i nic
od ciebie nie ma. Trzymaj sie, chodz spac wczesniej etc. L.