---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/19/2000
02:45 PM ---------------------------

"The Alliance of Energy Suppliers" <alliance@eei.org>@ls.eei.org on
12/19/2000 02:08:58 PM
Please respond to "The Alliance of Energy Suppliers" <alliance@eei.org>
Sent by: bounce-app-ippexecs-33275@ls.eei.org
To: "Generation and Power Marketing Executives" <app-ippexecs@ls.eei.org>
cc:
Subject: Alliance Info Alert

Dear Generation/Power Marketing Executive:

This Alliance Info Alert includes three items of interest:
1)  The weekly Alliance Express newsletter
2)  Listing of recent filings at FERC
3)  Timeline for FERC action on California Markets  (attached)

                       Alliance of Energy Suppliers ExpressDecember 19, 2000

INSIDE WASHINGTON   FEDERAL AFFAIRS

***FERC De-Federalizes California Markets, Adopts Other Structural Reforms***

At a special meeting Friday afternoon, FERC unanimously approved its eagerly
awaited final order reforming the California wholesale markets, adopting the
major outlines of its November 1 proposed order and sending back to
California the responsibility for addressing state-related matters.  At the
same time, FERC deferred consideration of retroactive refund issues as well
as the imposition of region-wide price caps.  FERC reiterated their earlier
conclusions that under certain circumstances, California ratepayers were
subjected to unjust and unreasonable power rates due to California's
"seriously flawed" market structure and rules in conjunction with tight
demand and supply conditions throughout the West.

FERC adopted the November proposal to eliminate, effective immediately, the
state's mandatory requirement that the state's investor-owned utilities buy
and sell electricity through the PX, and allow these utilities to purchase
electricity through forward contracts and other alternative mechanisms to
manage supply risks.  FERC terminated the PX's rate schedules effective at
the close of business on April 30, 2001.  In effect, as Chairman James
Hoecker stated, the order de-federalizes 60 percent of the California
wholesale market established under the state's restructuring law, returning
ratemaking authority over company-owned generation to the California Public
Utilities Commission (CPUC).

The agency also modified the effective period of the $150/MWh "soft cap"
proposal, limiting its application through April 2001, whereupon a
"comprehensive and systematic monitoring and mitigation program which
incorporates appropriate thresholds, screen and mitigation measures" must be
in place.  In a related move, FERC ordered a technical conference early next
year to develop such a program by March 1, 2001, so that these measures can
be place by the May 1, deadline.

***Energy Secretary Issues Order to Power Generators and Marketers To Bolster
California's Supplies***

Energy Secretary Bill Richardson has responded to the severely constrained
power supply situation in California by issuing an order, pursuant to Section
202(c) of the Federal Power Act, to require generators and marketers to make
power available to meet the state's electricity needs.  The emergency
directive requires that, if the California independent system operator (ISO)
certifies that there is an inadequate supply of electricity, certain
suppliers would be required to make power available to the ISO if they have
power available in excess of the amount needed to satisfy service to firm
customers. Those suppliers that have provided power to the California power
exchange (PX) and the ISO over the last 30 days that have firm capacity
available would be subject to the order.

Under the order, the ISO is required to provide notice to each supplier
subject to the order of the amount and type of service requested by 9:00 pm
EST on the day before the requested service.  The ISO must, to the extent
feasible, allocate the requests in proportion to the amount of each
supplier's available power.  The price for the power provided pursuant to the
order will be set by an agreement between the ISO and the supplier.  If no
agreement is reached, FERC is to determine the just and reasonable rate at a
later date.   The order will remain in effect until 3:00 am EST on December
21, 2000 unless modified.

***EPA Sets Plans to Regulate Plants' Mercury Emissions***

EPA Administrator Carol Browner, in a long-awaited announcement, indicated
last week that the Administration will require reductions of mercury
emissions from coal- and oil-fired power plants.  The agency stated that it
plans to propose new regulations in December 2003, and hopes to finalize new
rules by December 2004.

In the wake of the decision, EEI called on EPA to make certain that any
program to control utilities' mercury emissions be based on the best
scientific information available in order to assure the protection of public
health.  "EEI urges EPA to maintain its commitment to resolving the key
scientific and technological issues," said Paul Bailey, EEI Vice President,
Environmental Affairs.  Given these uncertainties, EEI is disappointed that
the regulatory determination includes statements regarding public health
threats and hazards that are unsupported by current science," said Mr. Bailey.

"In the meantime, the electric power industry will continue to work with all
stakeholders to determine the extent to which additional mercury reductions
from power plants may be needed, and how those cuts should be achieved," Mr.
Bailey concluded.

MERGERS & ACQUISITIONS

 ***Calpine Completes Acquisition of EMI Power Assets***

Calpine Corporation has announced that it has completed the acquisition of
power assets from Energy Management, Inc. (EMI).  In the deal, Calpine
acquired the remaining interest in three recently constructed, combined-cycle
power generating facilities located in New England, as well as a joint
marketing venture between Calpine and EMI.  Prior to the transaction, Calpine
held a 50 percent net interest in the projects.

"We are very pleased to have completed the acquisition of these new and
highly efficient power plants.  The Dighton, Tiverton, and Rumford facilities
were among the first merchant power plants to enter commercial operation in
New England," said Calpine Senior Vice President Bob Alff.  "Combined with
our other announced project in the Northeast, we have created a coordinated
system of low-cost assets, with excellent geographic diversity, to provide
power to a very attractive New England market," added Alff.

***Exelon Completes Acquisition of 49.9 Percent of Sithe***

Exelon Corporation and Sithe Energies have announced the completion of
Exelon's acquisition of 49.9 percent of the stock of Sithe.  The completion
of the acquisition finalizes an agreement in which PECO Energy Company agreed
to purchase 49.9 percent of Sithe's assets in North America for $682
million.  PECO has since merged with Unicom Corporation to form Exelon
Corporation.

Under the terms of the agreement, Exelon has the option to purchase the
remaining 50.1 percent of Sithe within two to five years at a price based on
prevailing market conditions when the purchase option is exercised.  Exelon
and Sithe will continue to operate independently, said the companies.

ENERGY DATA

*** Weekly Electric Output (Week 50)***

Electric output reached 74,737 GWh for the week ending December 9 (Week 50),
with the highest increase over 1999 levels in the Mid-Atlantic region, which
had a 15.8 percent increase over 1999.  Looking at year-to-date information,
the Pacific Southeast leads the nation in growth of output.  For more
information, email alliance@eei.org.

WHO'S WHO

***Allegheny Energy Announces Leadership Change***

Allegheny Energy, Inc. this week announced the appointment of Michael
Morrell, Senior Vice President and CFO, as President of its unregulated
supply business, Allegheny Energy Supply Company, effective February 1,
2001.  Morrell will replace Peter Skrgic, current President, who will be
retiring on that date after 37 years of service to the company.

In his new position, Mr. Morrell will direct and continue the growth of
Allegheny's energy supply business, which operates and markets competitive
retail and wholesale electric generation throughout the eastern US.
Additionally, Morrell will identify new opportunities to expand the Company's
generation holdings, announced a press release.

The Alliance Express is a free news service sponsored by the Alliance of
Energy Suppliers.  This document can be redistributed.  Please send
questions, comments, or requests to alliance@eei.org, or telephone
202/508-5680.

***Due to the holidays, the Alliance Express will not be published next
Tuesday, December 26.

                                             == RECENT FERC FILINGS ==

(1)  RTO DEVELOPMENTS

*  The following entities filed comments regarding the California wholesale
electric market.  EL00-95-000, et. al.  Filed December 13, 2000.

-  AMERICAN PUBLIC POWER ASSOC.:  "Market Power: Will We Know It When We See
It?  The California Experience"
-  SOUTHERN CALIFORNIA EDISON CO.: "Proof that Soft Price Caps Do Not Result
in Lawful Rates" and request for rehearing
-  SOUTHERN CALIFORNIA EDISON CO.: Request for immediate modification of the
December 8, 2000 Order
-  SAN DIEGO GAS & ELECTRIC: Motion to clarify the record

*  The following entities filed motions for an immediate modification and to
intervene regarding the Commission's emergency order December 8 approving the
CA ISO's tariff amendments.  ER01-607-000, ER00-95-000 et. al.  Filed
December 13, 2000.

-  WESTERN POWER TRADING FORUM
-  RELIANT ENERGY POWER GENERATION
-  PACIFIC GAS AND ELECTRIC
-  CA ISO
-  DYNEGY POWER MARKETING

*  SOUTHERN ENERGY COMPANIES filed a supplemental protest regarding PJM's
Order 2000 Compliance Filing.  RT01-2-000.  Filed December 14, 2000.

(2) OATT/TRANSMISSION

*  UGI UTILITIES filed an interconnection agreement with ALLEGHENY ENERGY
SUPPLY CO.  ER01-617-000.  Comments due by December 28, 2000.

*  PUBLIC SERVICE COMPANY OF NEW MEXICO filed proposed revisions to its FERC
Electric Tariff, a statement of Policy and Code of Conduct governing the
relationship between itself and wholesale power marketing affiliates and a
notification of a change in status relating to its authorization to sell
power at market-based rates.  ER01-615-000.  Comments due by December 28,
2000.

*  AMERICAN ELECTRIC POWER SERVICE CORP. (AEP) filed an executed
interconnection agreement between INDIANA MICHIGAN POWER CO. and DUKE ENERGY
BERRIEN.  The agreement is pursuant to AEP COMPANIES' OATT.  ER01-626-000.
Comments due by December 29, 2000.

*  COMMONWEALTH EDISON CO. filed revisions to its OATT to reflect the
creation of a new generation subsidiary of EXCELON CORP., COMED's holding
company.  ER01-628-000.  Comments due by December 29, 2000.

*  DETROIT EDISON COMPANY filed a Service Agreement for Network Integration
Transmission Service under the Joint OATT between itself and CONSUMERS
ENERGY.  The Service Agreement is between itself and NORDIC MARKETING.
ER01-622-000.  Comments due by December 28, 2000.

*  DETROIT EDISON COMPANY filed service agreements for short-term firm and
non-firm point-to-point transmission service under the joint OATT between
itself and CONSUMERS ENERGY. The Service Agreement is between itself and H.Q.
ENERGY SERVICES.  ER01-621-000.  Comments due by December 28, 2000.

*  LOUISIANA GENERATING filed a motion to intervene and protest regarding
SOUTHWESTERN ELECTRIC POWER COMPANY's Restated and Amended Electric System
Interconnection Agreement between SOUTHWESTERN and LOUISIANA GENERATING.
ER01-504-000.  Filed December 13, 2000.

*  ALLIANT ENERGY CORPORATE SERVICES filed a response to several protests
regarding its proposed amended OATT.  ER01-312-000.  Filed December 14, 2000.

*  ELECTRICITIES OF NORTH CAROLINA, PIEDMONT MUNICIPAL POWER AGENCY and the
CITIES OF ORANGEBURG and SENECA, SC filed a motion to intervene and protest
regarding DUKE ENERGY, CAROLINA POWER & LIGHT and SOUTH CAROLINA ELECTRIC &
GAS' proposed accounting and rate treatment of start-up costs associated with
establishing a new RTO.  EL01-13-000.  Filed December 14, 2000.

*  SOUTHERN COMPANY SERVICES filed a proposed amendment to its OATT in order
to incorporate creditworthiness criteria, interconnection procedures and
source and sink requirements.  ER01-668-000.  Filed December 14, 2000.

*  BONNEVILLE POWER ADMINISTRATION filed a petition for declaratory order
stating that its proposed OATT satisfies the Commission's reciprocity
compliance principles.  NJ01-1-000.  Filed December 14, 2000.

*  AMERICAN TRANSMISSION CO. filed proposed Open Access Transmission rates
and requested expedited consideration.  ER01-677-000.  Filed December 15,
2000.

(3) MARKET COMPLAINTS

*  H.Q. ENERGY SERVICES filed for an Order directing the NY ISO to restore
the original market clearing prices for energy on May 8, 2000.  EL01-19-000.
Comments due January 2, 2001.

*  NEW ENGLAND POWER CO. filed an answer to the RHODE ISLAND ATTORNEY
GENERAL's protest regarding the application of the joint owners of the
undivided interest in the Millstone 3 nuclear plant to transfer ownership to
the DOMINION Applicants.  EC00-137-000 and ER00-3639-000.  Filed December 13,
2000.

(4) MERGERS/CORPORATE RESTRUCTURING

(5) MISCELLANEOUS

*  CA ISO filed an amendment to schedule 1 of the Participating Generator
Agreement between CA ISO and SIERRA PACIFIC INDUSTRIES.  ER01-619-000.
Comments due by December 28, 2000.

*  AUTOMATED POWER EXCHANGE filed a new rate schedule under which it will
provide its auction and scheduling service in its California market.
ER01-658-000.  Filed December 14, 2000.

*  AUTOMATED POWER EXCHANGE filed a new rate schedule under which it will
provide its auction and scheduling service in a new geographic market, known
as the APX Midwest Market.  ER01-659-000.  Filed December 14, 2000.

Nancy Tarr
Manager, Business Development
ntarr@eei.org
202-508-5680

_________________________________________________________

 - Timeline.doc


This email was sent automatically by the PayPal server in response
to your request to recover your password. This is done for your
protection --- only you, the recipient of this email can take the next
step in the password recovery process.

To reset your password, you will need to provide the answers to the
two secret questions you chose when you signed up for your PayPal
account. To continue, follow the link below, which will lead you to a
web page containing your secret questions.

If you use AOL, please copy the link below and paste it into the
Web address field:

https://secure.paypal.com/fq/ac=Awa9UiZiFVloHu8ZeSx.Y4LqqsxMYrNTOHHyStawiTvEjJ
mKs.20NDXb7CtJYSB9LdE

If you need help, please contact customer service by email
at service@paypal.com.

Thanks for using PayPal!

*********************************************************************
PAYPAL SECURITY REMINDERS

Protect Your Password

PayPal and its representatives will NEVER ask you to reveal your
password. There are NO EXCEPTIONS to this policy. If anyone asks for
your password by phone or by email, or on any website other than
PayPal.com, refuse and immediately report this to service@paypal.com.

Email Links and Logging In

If you are logging in to your PayPal account after clicking a link
in an email or clicking on a logo, make sure the URL appearing in
your browser window begins with http://www.paypal.com or
https://secure.paypal.com.

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


When: Monday, June 11, 2001 4:00 PM-5:00 PM (GMT-06:00) Central Time (US & Canada).
Where: EB2541

*~*~*~*~*~*~*~*~*~*


Status please?
----- Forwarded by Dan J Hyvl/HOU/ECT on 10/17/2000 09:59 AM -----

	Debbie R Brackett
	10/17/2000 08:20 AM

		 To: Russell Diamond/HOU/ECT@ECT, Lisa Mellencamp/HOU/ECT@ECT, Dan J
Hyvl/HOU/ECT@ECT
		 cc: William S Bradford/HOU/ECT@ECT, Molly Harris/HOU/ECT@ECT
		 Subject: CAGE GAS SERVICES CORPORATION BANKRUPTCY

Please let me know current status on this default, and what steps we should
take now that they've filed bankruptcy.

---------------------- Forwarded by Debbie R Brackett/HOU/ECT on 10/17/2000
08:16 AM ---------------------------

CICS *RASM <"RASM+CICS:JES+xRISK ASSESSMENT 6737089"@MCIMAIL.COM> on
10/17/2000 02:12:14 AM
To: DEBBIE BRACKETT <DBRACKE@ECT.ENRON.COM>
cc:
Subject: NO SUBJECT 10/17 02:39:58

DUN & BRADSTREET ALERT SERVICES/SEVERE RISK OPTION
       BANKRUPTCY NOTIFICATION
-
FORWARD TO:     DEBBIE BRACKETT
SUB:            073012898
SUB NAME:       ENRON CORPORATION - ORG
SUB CITY,STATE: HOUSTON TX
INQUIRY DATE:   06/15/00
TRADE TAPE:
LIST SERVICE:
DUNS:           927895490
BUSINESS NAME:  CAGE GAS SERVICES CORPORATION
TRADESTYLE:
TRADESTYLE:
TRADESTYLE:
BUSINESS STREET:6 EAST 5TH ST SUITE 800
CITY,STATE,ZIP: TULSA OK 74104
BUSINESS PHONE: 9185920110
SIC CODE:       4924
ACCORDING TO OUR RECORDS, YOU ARE MONITORING THE ABOVE BUSINESS UNDER THE
SEVERE
RISK OPTION.  OUR INVESTIGATION REVEALED THE FOLLOWING:
------------------------------------------------------------------------------
--
FILING NAME:      CAGE GAS SERVICES CORPORATION   ATTORNEY INFORMATION
CITY,STATE,ZIP:   TULSA OK 74104
TYPE OF FILING:   INVOLUNTARY
CHAPTER:          07
FILING DATE:      10/03/00
DOCKET/CASE#:     00-03753-M
BANKRUPTCY COURT: TULSA OK
ASSETS:                      $0
LIABILITIES:                 $0
------------------------------------------------------------------------------
--
IF YOU HAVE ANY QUESTIONS OR WISH TO ORDER A COPY OF THE D&B REPORT OR HAVE
ANY
INFORMATION REGARDING SEVERE BUSINESS SITUATIONS, CALL 800-846-0033 OR FAX
610-882-7979
------------------------------------------------------------------------------
--
THIS REPORT, PROVIDED UNDER CONTRACT SOLELY FOR USE BY SUBSCRIBERS CREDIT,
INSURANCE, MARKETING OR OTHER BUSINESS DECISIONS, CONTAINS INFORMATION
COMPILED
FROM SOURCES D&B DOES NOT CONTROL AND WHOSE INFORMATION, UNLESS OTHERWISE
INDICATED IN THE REPORT, HAS NOT BEEN VERIFIED. IN PROVIDING THIS REPORT, D&B
DOES NOT ASSUME ANY PART OF THE USERS BUSINESS RISK, DOES NOT GUARANTEE THE
ACCURACY, COMPLETENESS OR TIMELINESS OF THE INFORMATION AND SHALL NOT BE
LIABLE FOR ANY LOSS OR INJURY RESULTING FROM THE RELIANCE ON THIS REPORT.
THIS
REPORT MAY NOT BE REPRODUCED IN WHOLE OR IN PART IN ANY MANNER WHATEVER.


Need to get you 2 talking to LORI,    I don't see much of a problem in going along with the EOTT valuation.   It's their asset now.

-----Original Message-----
From: Saunders, James
Sent: Monday, October 29, 2001 7:11 AM
To: Hayslett, Rod; Meers, Thomas; Meers, Thomas
Subject: FW: EOTT/EGP Fuels SEC Data Responses

Rod, Tom,
Roger's question/concern is serious, and the approach I've seen in documentation
does not help our position

We are proposing (or are) to argue that Fair Value is substantially less than $41.9mm.
If that is the case, we will have to go back and impair the MTBE facility, and re-do the
financials. We have asserted that the fair value for book purposes approximates a higher value than our tac position. Normally this variance is no big deal, but because of the "sale", this book tax variation is problematic. This will result in a substantial loss, and cause EOTT's SEC filings to be in jeopardy.

-----Original Message-----
From: roger.d.willard@us.andersen.com
[mailto:roger.d.willard@us.andersen.com]
Sent: Friday, October 26, 2001 7:26 PM
To: Saunders, James
Cc: Hayslett, Rod; Butts, Bob; Farmer, Stanley; Meers, Thomas; Meers,
Thomas; stephen.p.huzar@us.andersen.com; Jolibois, Anne; Rogers, Rex;
Saunders, James; Maddox, Lori
Subject: Re: EOTT/EGP Fuels SEC Data Responses

Is Enron disputing the fair value of $41.9 million already disclosed as
agreed to with HCAD?  And if so what value is the company asserting?

To:   Rod.Hayslett@enron.com, Bob.Butts@enron.com,
      Stanley.Farmer@enron.com, Thomas.Meers@enron.com,
      Thomas.Meers2@enron.com, Stephen P. Huzar@ANDERSEN WO,
      Anne.Jolibois@enron.com, Roger D. Willard@ANDERSEN WO,
      Rex.Rogers@enron.com, James.Saunders@enron.com, Lori.Maddox@enron.com
cc:
Date: 10/26/2001 06:07 PM
From: James.Saunders@enron.com
Subject:  EOTT/EGP Fuels SEC Data Responses

Attached is a red line version and "clean" version of proposed EGP Fuels
responses to the EOTT SEC request.

Bob - I assume you will also review this w Mr Causey
Tom - Item # 18 on affiliated revenues requires additional data, that I
believe you have on file.
All - Item #17 on Morgan's Point tax valuation should be reviewed
closely.

>
>
>
>  <<SEC Data Responses.doc>>       <<SEC Data Responses Redline.doc>>
>
>

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

*******************Internet Email Confidentiality Footer*******************

Privileged/Confidential Information may be contained in this message.  If
you are not the addressee indicated in this message (or responsible for
delivery of the message to such person), you may not copy or deliver this
message to anyone. In such case, you should destroy this message and kindly
notify the sender by reply email. Please advise immediately if you or your
employer do not consent to Internet email for messages of this kind.
Opinions, conclusions and other information in this message that do not
relate to the official business of my firm shall be understood as neither
given nor endorsed by it.


See attached files


This is the same version you sent today, right?
---------------------- Forwarded by Kay Mann/Corp/Enron on 05/01/2001 12:42
PM ---------------------------

Kay Mann
04/24/2001 06:09 PM
To: Lisa Bills/Enron@EnronXGate, Roseann Engeldorf/Enron@EnronXGate,
Catherine Clark/Enron@EnronXGate, Herman Manis/Enron@EnronXGate
cc:

Subject: LV Cogen Turbine Agreement

Latest draft of turbine contract for LV Co Gen.

ckm
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/24/2001 06:07
PM ---------------------------

"Thompson, Peter J." <pthompson@akllp.com> on 04/24/2001 02:56:48 PM
To: "Kay Mann (E-mail)" <kay.mann@enron.com>, "Bill Williams (E-mail)"
<Bill.Williams@enron.com>, "Dale Rasmussen (E-mail)"
<Dale.Rasmussen@enron.com>, "Lee. Johnson (E-mail)"
<lee.johnson@ss.ps.ge.com>, "Kent. Shoemaker (E-mail)"
<kent.shoemaker@ae.ge.com>
cc: "Pipitone, Paul" <paulpipitone@akllp.com>, "Cobb, Chris"
<chriscobb@akllp.com>

Subject: LV Cogen Turbine Agreement

Attached please find the latest LV Cogen Turbine Agreement (second
document below) that provides notices to Enron North America, as agent
for E-Next Generation, and changes to the signature blocks.  Also
attached is a blackline (first document below) showing changes made to
the version circulated on April 10. Pursuant to instructions received
from Kay Mann and Bill Williams, this version does not contain the
contractor's comments.  To complete the agreement, we will need to
insert the date of execution and Exhibit H-2.
 <<Comparison of LV Cogen Agreement, Versions 3 to 5.DOC>>  <<LV Cogen
Gas Turbine Agreement - Version 5.DOC>>
 - Comparison of LV Cogen Agreement, Versions 3 to 5.DOC
 - LV Cogen Gas Turbine Agreement - Version 5.DOC


Thanks. I should be there about 7.  You know that I love you very much,
Prentice.


Please see the attached memo regarding the Enron Advisory Council Meeting
scheduled for

September 16 & 17.


--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:

--------- Inline attachment follows ---------

From:
Date: 18 EAS [H2NFK0-2] RFITZMEYER;ER;????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Subject:


Tom says this deal was firm energy, but it is transmission contingent. When
Tom did the deal with FPL, he said he wouldn't buy it unless the energy was
firm. The power has already been delivered, however, so Tom said it shouldn't
matter what kind of energy the confirm has, so for the sake of getting it
done, he said just to agree with what they have in their confirmation. Does
that make any sense? And the same goes for deal 516506.

He is still disputing the price (where Enron shows $90 and FPL shows $95 in
deal 517520), and he's expecting a call back from Jeff Wallace on that.

Thanks,
Kate

From: Kimberly Allen on 03/05/2001 11:17 AM CST
To: Kate Symes/PDX/ECT@ECT
cc:
Subject: #517518 and 517520

Kate, could you ask Tom if this transaction is suppose to be Firm in Enpower.
Their confirmation says Non-Firm, Transmission Contingent. Could you ask him
which is correct?

Enron Power Marketing, Inc.
Kimberly Indelicato Office:713-853-3031
Trading Support Fax:713-646-2443
kallen3@enron.com


Tomorrow is fine.

 -----Original Message-----
From: 	Ngo, Tracy
Sent:	Tuesday, August 28, 2001 3:11 PM
To:	Heard, Marie
Subject:	RE: Allegheny

Well, I'll be on the legal floor tomorrow.  Do you want me to just drop by your office then?  Or do you need it now?

 -----Original Message-----
From: 	Heard, Marie
Sent:	Tuesday, August 28, 2001 3:10 PM
To:	Ngo, Tracy
Subject:	RE: Allegheny

Boy, I'm REALLY mad at you!  Just kidding!  I thought you were just going to initial the signature pages and then we would get Kevin to sign it here.  Since you're in town, I can run the originals down to you (if you'll tell me where you are) so that you can initial and then I can ask Kevin to sign.

Thanks!

Marie

 -----Original Message-----
From: 	Ngo, Tracy
Sent:	Tuesday, August 28, 2001 3:08 PM
To:	Heard, Marie
Cc:	Shackleton, Sara
Subject:	RE: Allegheny

Marie,

Don't be mad.  I have not gotten it signed.  When I was ready to do so, Belden was unreachable.  Then I suddenly forgot prior to rushing down to H-town.  What do you want me to do now?  Get Kevin this week?  or Get Tim on Tues. after Labor Day?  Are you really mad?  I'm sorry.  Please advise on how I can try and do damage control.

Tracy

 -----Original Message-----
From: 	Heard, Marie
Sent:	Monday, August 27, 2001 4:34 PM
To:	Ngo, Tracy
Subject:	Allegheny

Hi, Tracy!

I have never received the signature pages for the Allegheny ISDA.  Have you sent them?

Mare


It's not the same as a self evaluation form but I hope you find this
informative as to my where abouts this year.  I am collecting similar lists
from the folks who report to me.


Please do not print anything to Princess, the printer located at ECN687a. Corp has two printers called Princess located on the 33rd floor, the printer located on the 6th floor will be renamed shortly.

Thanks,
Kathy
x39308


-----Original Message-----
From: 	Enron Announcements/Corp/Enron@ENRON [mailto:IMCEANOTES-Enron+20Announcements_Corp_Enron+40ENRON@ENRON.com]  On Behalf Of Enron Global Technology@ENRON
Sent:	Monday, September 24, 2001 3:51 PM
To:	All Enron Worldwide@ENRON
Subject:	Computer Virus

There are several new computer viruses that are spreading rapidly on the internet.  The viruses target Windows computer users and arrives in e-mails with various subject lines like "Fwd:Peace BeTweeN AmeriCa and IsLaM!" The messages also contain attachments that can be directly executed by clicking on the attachment.  The most prevalent virus has an attachment named wtc.exe.

If you ever get an email with an attachment that has an executable file, you should never launch the attachment.  At Enron, these file types are blocked automatically from entering our environment.  However, if you would connect to an external email service (i.e. Hotmail, AOL, Yahoo, etc) while using an Enron computer or attached to the Enron network, you could infect our internal computing systems.  If you do, the virus could cause significant issues and prevent some of our systems from working effectively.

If you ever get an email that you are not sure about, simply delete the email and contact your resolution center to let them know how you obtained the message.  It is much better to be safe than sorry as we will be able to track down the origin of the virus in the Enron Network.

Thank you.
Enron Global Technology


That's great Riddles will be there.  Bobby said he would try to be there
late Friday night (after Davis), but that was it.

WE ARE GETTING HER THE BANJO SHE HAS ALWAYS DREAMED OF (Earl Scruggs Gibson
banjo with maple neck).  DO NOT GET ANYTHING ELSE EITHER OF YOU THE BANJO IS
VERY EXPENSIVE (around 2K) AND IT WILL BE FROM ALL OF US AND IT WILL BE BOTH
HER BIRTHDAY AND XMAS.  Mom already said she will put in $500.  How about
the rest of you??  Can we make this happen.  I have all the details of the
banjo from Avram and Larry now and I am pricing it.  They have told me where
to get the best prices and Avram has put me in touch with a guy that just
bought one and researched prices for weeks.  I will update you when I have a
little more info.  OK???????????????????

Cameron Sellers
Vice President, Business Development
PERFECT
1860 Embarcadero Road - Suite 210
Palo Alto, CA 94303
cameron@perfect.com
650.798.3366 (direct dial)
650.269.3366 (cell)
650.858.1095 (fax)

-----Original Message-----
From:  Scott Laughlin [mailto:scottwl@hotmail.com]
Sent: Monday, November 27, 2000 10:57 AM
To: cameron@perfect.com; Jeff.Dasovich@enron.com
Cc: Nancy.Sellers@mondavi.com
Subject: Re: guest list so far

Riddles is on there for at least one night, plus his "woman," I imagine.
Then we got Bobby most likely coming late on Sat night, after his gig in
Davis.
Jeff--what can I help with?? What about her present... are we all getting
her a banjo, or do you have something else you want to get her, leaving us
to fend for ourselves?

Chapeau!

>From: Cameron Sellers <cameron@perfect.com>
>To: "'Jeff.Dasovich@enron.com'" <Jeff.Dasovich@enron.com>
>CC: 'Scott Laughlin' <scottwl@hotmail.com>, 'Mom'
><Nancy.Sellers@mondavi.com>
>Subject: guest list so far
>Date: Mon, 27 Nov 2000 10:33:15 -0800
>
>
>Sure Thing:
>
>Jeff
>Prentice
>Cameron
>Scott
>Carter (Friday night only)
>Colleen Silva
>Chris Shea
>Cristina Shea
>Miriam
>Renee Lanam
>Doug Sinclair
>Mike Herring
>Lisa Herring
>Steve Pottier
>David Hoffman
>Heidi Hoffman
>
>
>Maybe:
>
>Avram Seagle
>Allison Seagle
>Ed Neff
>Lizanne Jensen
>Ken Jensen
>Sean
>Molly
>Mom
>Dad
>
>No Answer Yet:
>
>Bill Growney
>Buddy Arnheim
>Celise
>Andre
>Denis & Lynn
>Liz Sellers
>John Whiting
>Cary & Leslie
>Riddles
>
>
>
>Cameron Sellers
>Vice President, Business Development
>PERFECT
>1860 Embarcadero Road - Suite 210
>Palo Alto, CA 94303
>cameron@perfect.com
>650.798.3366 (direct dial)
>650.269.3366 (cell)
>650.858.1095 (fax)
>

____________________________________________________________________________
_________
Get more from the Web.  FREE MSN Explorer download : http://explorer.msn.com


Mark,

It appears there was a mixup in contracts admin. Copies of the licenses
should be forthcoming shortly.

What is the ETA for the legal analysis of the impact of becoming regulated -
i.e. at what point are we subject to regulations, and what is the impact?

Dave


From: 	Choate, Heather
Sent:	Monday, November 26, 2001 8:51 AM
Cc:	Bates, Kimberly; Hogan, Irena D.; Villarreal, Alex; Rangel, Ina; Vuittonet, Laura; Jackson, Brandee; Saldana, Alex; Superty, Robert; Hall, Bob M; Presas, Jessica; Quezada, Daniel; Showers, Digna; Greif, Donna; Lamadrid, Victor; Kinsey, Lisa; Sullivan, Patti; Calcagno, Suzanne; Farmer, Daren J.; Smith, George F.; Olinger, Kimberly S.; Jaquet, Tammy; Young, Becky
Subject:	Logistics Commercial Realignment

After a careful review of the wholesale and retail gas trading and scheduling process it has been decided that the Gas Logistics teams should report directly into the Enron America's Commercial organization. This realignment will help to strengthen the commercial focus and communication between the trading desks and the schedulers and will play a critical role as Enron tries to maximize opportunities and maintain a competitive trading edge. The details are as follows:

Wholesale

Bob Superty will maintain his management of the Logistics support functions which include the Transport Rate team (Kim Olinger), Electronic Commerce team (Tammy Lee-Jaquet) and Regulatory Affairs teams (Suzanne Calcagno). In addition, Bob will now manage the Northeast Logistics team as part of the East desk. Bob will report directly to Scott Neal and will also help coordinate the Logistics function across all regions working closely with each of the regional Logistics Managers, Commercial desk heads and Enron Americas senior management team.

Victor LaMadrid will manage the Southeast Logistics team and will report directly to Scott Neal. Victor's knowledge and overall east desk experience will be critical to help  maximize east desk opportunities and promote new initiatives across all regions.

Lisa Kinsey will manage the Central Logistics team and will report directly to Hunter Shively.

Patti Sullivan will manage the West Logistics team and will report directly to Mike Grigsby.

Darren Farmer will manage the Texas Logistics team and will report directly to Tom Martin

George Smith will manage the Well Head Logistics team and will report directly to Fred Lagrasta.

Retail

Donna Greif will now report directly to Don Black. Each of the regional Logistics Managers (East - Marde Driscoll-Ernest, Central - Charlie Muzzy, West - Sabra Dinari) will continue to report directly to Donna. Donna will continue her ongoing efforts in the development and integration of the new retail trading systems, prior period adjustments and development of a strong and talented Logistics team.

Congratulations to all involved and welcome to the commercial gas team - John Lavorato, President and CEO, Enron Americas.
 _____________________________________________________________________________________________________________________

Assistants - Please forward on to your groups.


Audrey,

Please see the attached docs and send out. Also, note the cc: 's.

Thanks,

Paul


Thanks.  Mark


Start Date: 1/19/02; HourAhead hour: 15;  HourAhead schedule download failed. Manual intervention required.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002011915.txt
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
Error: dbCaps97Data: Cannot perform this operation on a closed database
Error: dbCaps97Data: Cannot perform this operation on a closed database
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
!!!Unknown database.
Alias: dbCaps97Data
Error: dbCaps97Data: Cannot perform this operation on a closed database


Robert Fleming Eqty - Circ re Call Warrants

  DOCUMENT RE UP TO 10,000,000 FLEMINGS CALL WARRANTS ISSUED BY ROBERT
FLEMING EQUITY DERIVATIVES LIMITED AND GUARANTEED BY ROBERT FLEMING &
CO. LIMITED ON 5 MARCH 1999, RELATING TO ORDINARY SHARES OF TELEFONICA
S.A. EXPIRING 11 AUGUST 2000 (THE ...

Published by: Regulatory News Service
Date: 07/30/1999
Word Count: 60
Relevance Score on Scale of 100: 98
Folder Name: Derivatives

Full-text article available at
http://nrstg1p.djnr.com/cgi-bin/NewsRetrieval?cgi=WEB_ST_WC_STORY&DBNAME=BAD_S
TDBNAME&HDAN=RNSS9921051207&Search=Derivatives&QID=105954&QT=R&HDSC=RNSS

Articles are included at no charge for flat-fee corporate customers. (Under
standard pricing, charges apply.  For details, click the $ icon on the Dow
Jones Interactive home page, located at http://www.djinteractive.com.)
______________________________________________________________________

To review or revise your folder, visit http://www.djinteractive.com or
contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com
or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511
or contact your local sales representative.)
______________________________________________________________________
Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved


Nicola:

In follow-up to our telephone conversation, today's meeting is cancelled.  Could you advise everyone at your end?  The next meeting will be 2 weeks from today.

Thanks,

Jeff
 -----Original Message-----
From: 	Beales, Nicola
Sent:	Tuesday, October 23, 2001 6:26 AM
To:	Hodge, Jeffrey T.
Subject:	European Trading Meeting

Jeff,

I just wanted to check whether the Trading Meeting was actually taking place today (Justin wondered whether it would be cancelled as you have the All-Employee Meeting).

Hope you are well.

Kind regards,
Nicola


Claude Huss found this article on whether a government program to promote
training is using marginal incentives

Should California Media Firms Get State Funds for Training?

By SHEILA MUTO
>From The Wall Street Journal Interactive Edition

 For years, the state Employment Training Panel gave little attention to
two renowned California enterprises -- multimedia and entertainment.
 But then both industries started complaining of a tight labor market and
stiff competition from outside the state. As a result, a raft of companies,
including Seagram Co.'s Universal Studios, Walt Disney Co. and USWeb/CKS
Corp., have been the beneficiaries of $9 million from the Employment
Training Panel. The eight-member board metes out about $100 million
annually to attract and retain businesses and jobs by improving workers'
skills.
 And while California clearly has an interest in promoting a healthy
climate for business -- including an able work force -- some are
questioning whether multimedia and entertainment are really the kind of
struggling industries that couldn't make it without state assistance.
 The funds doled out by the Training Panel amount to "corporate welfare,"
says Naomi Lopez, a policy analyst at the Pacific Research Institute, a
free-market-oriented think tank in San Francisco. And "just because there's
a labor shortage in entertainment and multimedia doesn't mean we need to be
using government resources to alleviate {it}."
 According to Brady Bevis, director of San Francisco's Bay Area Multimedia
Partnership, that's exactly what the Training Panel should be doing to
ensure the health of the state's economy. "These industries and jobs can go
anywhere," she adds, noting they are already moving to Canada, India and
Japan.
 Training Panel funds come from a special tax collected from businesses,
which amount to a maximum of about $7 per employee. Businesses or training
agencies apply to the panel to underwrite their training programs, and can
be reimbursed for them after employees complete the training and stay with
their jobs for 90 days. The bulk of panel funds -- between 60% and 70% --
go to manufacturers.
 Kathleen Milnes, a senior vice president at the Entertainment Industry
Development Corp. in Los Angeles, estimates that entertainment companies
fork over about $4 million annually to the panel fund, but until recently
hadn't benefited from it. "We were subsidizing other industries," she says.
 So in 1996 Ms. Milnes's and Ms. Bevis's organizations prompted the
Training Panel's venture into the celluloid and digital realms. The two
economic-development nonprofits devised a program called SkillsNet, which
aims to keep cutting-edge, high-paying entertainment and multimedia jobs in
the state. The effort has received about $653,000 from the panel to study
which skills companies are looking for, set up a Web page, and help firms
tap into state training funds, among other things. Later this month,
SkillsNet plans to unveil a new report on the post-production industry,
plus an online posting of internships.
 But misgivings about the panel's new focus are being unveiled as well.
 Though he hasn't looked at the impact of state training dollars spent on
multimedia and entertainment companies, Richard W. Moore, a management
professor at California State University-Northridge, says that panel funds
are most effective when used as an incentive for employers who typically
"underinvest" in training. In contrast, entertainment and multimedia
companies "tend to invest in training anyway," says Prof. Moore, who was
commissioned by the panel to assess its effectiveness. He released reports
in 1994 and 1995; his next study is set to come out later this summer.
 In general, he says, the panel "works." Based on his 1995 report, Prof.
Moore found that the training provided by panel funds meant that after two
years, employees who received retraining increased their salary by $4,910,
and new hires increased theirs by $6,038. Considering the panel spends only
about $1,500 a participant, he says that's a healthy payoff.
 Still, Sen. Patrick Johnston, the Stockton Democrat who wrote the
legislation that created the Employment Training Panel in 1982, is
attempting to reel in the agency through Senate Bill 43. Among other
things, the bill, which has already passed the Senate, reduces the panel
from a grant-making agency to an advisory commission to the state
Employment Development Department.
 While the panel has "helped some workers and boosted some businesses that
are important to the California economy," in other instances, it has made
less than stellar funding decisions, Sen. Johnston says, pointing to funds
given to hotels, law firms and other service industries that "clearly
weren't going anywhere." But he believes that the agency's focus on
multimedia and entertainment will prove to be "an effective use of state
funds."
 During the past three years, the panel has awarded $8.9 million for
retraining about 5,000 workers and training 320 new hires on the latest
computer systems, software, and techniques in the multimedia and
entertainment fields. For example, state records show that Universal
Studios was granted $1.1 million last year to retrain 1,423 employees in
management and computer skills. And Video Symphony Entertraining Inc. in
Los Angeles, received $1.4 million to retrain workers from companies
including Walt Disney on techniques such as video editing and digital
animation.
 The entertainment and multimedia industries need the funds, says Charles
Lundberg, the panel's marketing director, because "competition keeps
getting tougher and the software and hardware keeps getting upgraded."
 Indeed, Paul Sidlo, chief executive of REZN8 Productions Inc., which does
everything from Web design to visual effects for film and television, says
his Los Angeles firm has lost out to Canadian companies on a handful of
contracts because they underbid him by nearly 40% -- thanks to government
subsidies. Given that, the 3-D animation training that 15 of his employees
received last year through funding from the state -- which he estimates was
worth about $40,000 in instruction costs and employees' time -- went a long
way toward reducing the $700,000 he spends annually on retraining workers.
 The training subsidy, he says, "really helped."

My comments:
 Trainin funds are most useful it they go to folks who would not pay for
the training themselves; perhaps due to difficulties borrowing.  Also, if
the skills are useful at many employers, no single employer wants to pay
for the skills that workers walk away with to competitors.
 Do you think the multimedia training subsidies meets these critera?  If
not, how could one target the training better?

David I. Levine                 Associate professor
Haas School of Business    ph: 510/642-1697
University of California    fax: 510/643-1420
Berkeley CA  94720-1900                            email:
levine@haas.berkeley.edu
http://web.haas.berkeley.edu/www/levine/


I will be out of the office attending a conference this week.  I will be back in the office on Thursday.  If you need immediate assistance please contact Felicia Buenrostro at x3-7862.


Ken's role will likely be more defined by the end of the week and it probably
won't include meeting / conference calls.

	Susan J Mara
	03/21/01 01:49 PM

		 To: Janel Guerrero/Corp/Enron@Enron, Karen Denne/Corp/Enron@ENRON, Jeff
Dasovich/NA/Enron@Enron
		 cc:
		 Subject: Ken Smith

So, if we send Ken to represent us at a meeting or telecom, shouldn't he be
reporting back to us right away?

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854


Sandi, Joe Hartsoe, Mary Hain --

Sandi --

I realize that the bill needs Assembly passage, but given the current
situation I don't see why this won't happen.  I am still very concerned about
the language in the newsstory which creates a "witch hunt" mentality to go
after "suppliers" for the refund to San Diego.  With the ISO report that
concludes that there was market power in certain hours, we are exposed to the
ability to have a retroactive pricing.

Joe -

Will you please look into legal of retroactive ratemaking.contained in the
news story?  I am not sure if it makes sense to have to "refund" our
earnings, but don't they do this in New England?

Mary --

Look at the ISO report and let's determine our total exposure.  If FERC wants
to allow the ISO to restate energy prices during certain hours, will we have
a huge exposure?

Let me know.

Jim

Sandra McCubbin
08/11/2000 01:28 PM
To: Susan J Mara/SFO/EES@EES
cc: Jeff Dasovich/SFO/EES@EES, Richard Shapiro/HOU/EES@EES, Steven J
Kean/HOU/EES@EES, Mona L Petrochko/SFO/EES@EES, Karen Denne/Corp/Enron@Enron,
Peggy Mahoney/HOU/EES@EES, mpalmer@enron.com, James D Steffes/HOU/EES@EES,
Paul Kaufman@EES, Mary Hain@ENRON_DEVELOPMENT, Joe Hartsoe/Corp/Enron@Enron,
Sarah Novosel/Corp/Enron@Enron, Bruno Gaillard/SFO/EES@EES
Subject: Re: Energy rate relief bill gets OK
State Senate passes rollback; legislation to go to Assembly

the bill passed the Senate and not the Assembly, there are problems with both
the Republicans and some Democrats in the Assembly.  The legislature does not
necessarily follow the lead of the Govenor... the legislature is out until
next Friday due to the convention so nothing can happen until then.  the
Govenor is supposed to release his expedited siting package next week, we
have been working with his office and the CEC on our list of suggestions.
The Williamson Act legislation has been introduced, it is AB2698, we have
gathered 15 coauthors, including Senator Costa as lead coauthor, we are now
soliciting support, labor is being helpful, the bill will be heard in Senate
Local Government next Friday


FYI - SRS
---------------------- Forwarded by Sherri Sera/Corp/Enron on 03/28/2001
08:53 AM ---------------------------

Lana Steffen
03/28/2001 08:09 AM
To: Kenneth Lay/Corp/Enron@ENRON, Jeff Skilling/Corp/Enron@ENRON
cc:

Subject: Re: California Energy Crisis

Mr. Lay and Mr. Skilling:

I shared the below article with my brother, due to his interest in the
California energy crisis.  Since he is an "outside" source, I thought you
might like to see his comments regarding your article.  They follow below:

 I read the entire article you sent on the California power crisis by Enron.
I think
 they should publish this very article in all of the California papers.
That's the simplest and best,
 get to the point, no bull article I've seen on the  matter. I would agree
100% with their assesment
 of the mess. Californian's have no one to blame but their State government's
stupidity, although they're
 trying to find someone.

Thanks for an understandable article!

Lana Steffen
Administrative Analyst
Liberal, KS

Ken Lay and Jeff Skilling
03/13/2001 04:17 PM

Sent by: Ken Lay and Jeff Skilling
To: All Enron Worldwide
cc:

Subject: California Energy Crisis

California,s power crisis has generated heated debate over the last several
months.  Unfortunately, this debate has generated more heat than light.  We
want you to know what the facts are and what we are doing about the crisis.
Please spend a few minutes reading the following overview on the situation
and our position on California energy issues.

What happened in California

The source of California,s current problem is as straightforward as supply
and demand.  California,s economy grew 29 percent since 1998.  This increased
the demand for electricity by 24 percent.  At the same time, regulatory
restrictions prevented new generation from getting built in the state.  So
demand grew but regulations prevented supplies from being added.  The result,
predictably, is a shortage.  This summer, peak capacity will be about 10
percent shy of peak demand, leading to further blackouts in the state.

In addition to the supply and demand imbalance, there are two other related
factors that led to the current crisis.  First, the state,s regulations
forced all sales and purchases into the spot market.  The spot market for
power is extraordinarily volatile.  The way firms behave in a free market
when faced with such volatility is to construct a portfolio of purchases long
term, medium term and short term, to reduce exposure to this volatility.  In
California, state regulation prevented this strategy.  This would be the
equivalent of putting the entire state on an adjustable rate mortgage in the
most volatile interest rate environment imaginable.  Everything was fine
while the power surplus persisted, but when shortages ensued, every megawatt
was purchased at the sky rocketing spot price.

Second, retail markets were not deregulated.  Regulated retail rates remained
in effect, and stranded cost recovery charges were structured to keep
competition out.  This meant that utilities were forced to pay high wholesale
prices in the spot market but were only able to recover costs at the
regulated retail rate.  They are now nearly bankrupt.

In short, California,s problems were caused by regulation, not deregulation.
Regulations prevented competitors from entering the market, prevented new
generation from being built, and prevented prudent hedging against volatile
spot prices.

At the time California was developing its restructuring plan, Enron warned
the state,s policy makers about these risks and proposed alternatives, which,
if adopted, would have averted the current crisis.

Enron,s Role

Many political leaders in the state have elected to fix blame rather than fix
the problem.  Power sellers, including Enron, have been vilified by the
politicians and the media.  Here are the facts:

? Other than a small amount of wind power, Enron is not a generator in the
state of California.  Every megawatt we sold in California we bought in the
same market available to other California purchasers.  Because we are a
market maker, not a generator, we are not biased toward high prices.  We are
interested only in having a market that works so that we can package products
for our customers.
? As a seller to end-use markets in the state, we provided protection from
the problems the states, utilities, and their customers, now face.  We
protected, and still protect, our customers from price volatility.

You may have read that EES recently elected to have the utilities supply
power directly to its customers in California instead of procuring power on
the open market.  Early reports mischaracterized this as a &turnback8 of our
customers to the utilities.  Here are the facts:

? As a result of a variety of factors existing in the current California
market, it made more sense for EES to source power for its customers directly
from the utilities.  This decision reduced EES,s market price risk by
allowing EES to access lower utility rates.
? EES did not terminate any customer contracts, and our customers continue to
receive the financial benefits of their contract prices.
? EES is continuing to work with its California customers to provide them
with other energy-related products and services, including assistance in
reducing the demand for power, particularly at peak times.

Enron is currently proposing solutions to help California work out of its
crisis; Enron continues to sign up customers in the state; and Enron
continues to actively manage its risks and capture opportunities in Western
power markets.  Enron,s primary business is managing risk for our customers
with solutions customized to meet their needs.  There has never been more
demand for our products and services.

The Solution

The solution to California,s crisis is also straightforward.  In summary, the
state must increase supply, reduce demand, reduce reliance on the spot market
and shore up the financial stability of the state,s utilities.

Increasing Supply

California,s process for siting and permitting new generation is nothing
short of Byzantine.  Enron has built plants elsewhere in the country in less
than a year.  In California, it often takes 5 to 7 years.  California simply
must streamline this process.  Ironically, while many of the regulations
generators must overcome are aimed at improving environmental quality, the
regulations are preventing new clean technology from coming online and
displacing current plants, which emit 40 times as much NOx.  California can
have abundant power and cleaner air by expediting the permitting of new
facilities.

Reducing Demand

Customers in California today have no incentive to reduce or shift demand.
They pay the same rate no matter what the market price is.  An open retail
market would trigger demand responses, which would balance supply and demand
at lower prices than today.  California should fully open its retail market.

Reducing Reliance on the Spot Market

In a truly deregulated market, customers would protect themselves from
volatile spot prices by purchasing some of their requirements on a longer
term, fixed-price basis.  The state has instead left procurement in the hands
of the utilities, which it has forced to buy exclusively in the spot market.
Opening the market at the retail level will give customers control over their
price risk.

Restoring the Financial Integrity of the State,s Institutions

The utilities in California are not paying their bills.  This has led to
greater uncertainty in the market, higher costs, and reduced flexibility to
arrive at lasting solutions.  California must permit its utilities to recover
their costs so they can pay their bills and invest in the transmission and
distribution assets necessary to get power from where it is to where it is
needed.

Just as important as doing these things, the state must avoid policies that,
while politically attractive, do not fix the problem or even make matters
worse.  Price caps have been proposed.  They don,t work; have never worked;
and they will not work here.  Price caps succeed only in creating shortages,
which then have to be allocated among competing users.  Imagine how
ineffectively the government would be in determining, for example, whether it
is better to make its limited power supplies available to the Imperial Valley
or Silicon Valley.  Price caps are a surefire way to make the current
shortage worse.

The state has also proposed to take over generation and transmission in
California.  There is no reason to believe, and every reason to doubt, that
the state will be more effective than free markets at investing in,
constructing, operating and maintaining assets.  This will also result in
California tax revenues being spent on power transmission and power
generation -- which the private sector can do -- instead of education, roads
and other public goods -- which the private sector cannot do.

As you are approached by people outside the company or are learning about the
crisis from the media, it,s important for you to know this:  We at Enron will
continue to serve our customers and we will continue to propose real
solutions to the state.


While reviewing our trading limit documentation, I realized we never obtained
signatures on the limit application for Credit Trading that was approved in
the December BOD meeting, and I'd like to complete our policy files.  Would
you please print the attached document and obtain Bryan, Ted, News/Jordan and
then Sherriff''s signatures, and fax it back to me at 713 646 2194 for our
files?  I'll get Vince to sign for Research, and then send to Rick Buy and
Jeff Skilling to sign along with our other trading limit policy documentation
from the BOD meeting this past week.

This document is exactly what Bryan sent to Oliver in January, and I just
customized it a bit to delete unnecessary signatures, identify the commodity
group, etc..

Regards,
Cassandra.


havent talked to you for awhile. hope everything is going as well as can be..
i have a biz question:   is the cash balance plan safe?

jmf


Here is the model Teco sent us and that Erin expanded on.  Let me know if you
have any questions.  Thanks
Ben


Rob--

We should probably tread carefully in this area.  My understanding is that
University is the lead agency for permitting, and if the mitigated negative
declaration you provided to me is the final one, then I don't know if the
City has the authority to require a conditional use permit other than the
negative declaration that the University obtained (prepared?).  However, if
the neg dec was only preliminary, then the City has the opportunity to
provide comments, and I suppose it's theoretically possible that the City
could seek an injunction.  I don't know if the City has separate rules, but I
do know that under Fresno County rules, items that have a utility or
quasi-utility purpose are oftentimes exempt from the CUP process (unless I
suppose that the CEQA study requires it).

I think we should let the University take the lead on this because if it
turns out that the City is going to inject itself in the permitting process
then we don't want get in the middle of yet another delay-causing dispute.

Let me know how I can help.

AW

From: Rob Cone/Western Region/The Bentley Company@Exchange on 04/18/2000
02:47 PM CDT
To: Richard Crevelt/Western Region/The Bentley Company@Exchange, Dirk
vanUlden/Western Region/The Bentley Company@Exchange, Geoff Pollard/Western
Region/The Bentley Company@Exchange, Andrew Wu/HOU/EES@EES, Jeff
Dasovich/SFO/EES@EES
cc:
Subject: Minutes from call with City of Fresno, Attorney

I received a phone call today from David Hale, City Attorney, with the City
of Fresno.  The following items below are issues that David brought up
regarding the CSU Fresno Project.  They are centered around the CEQA document
that was provided to them.

? David can not make recommendations and/or comments to the City's Team with
the scope of the 115kV line from the PG&E Herndon/Bullard Sub. to the CSU
Fresno Sub. not being fully defined.  i.e. overhead or under ground, PG&E or
CSU Fresno owning the line.
? David has numerous issues either way should PG&E owns the line or CSU
Fresno.
? David is investigating whether or not there is a public utility easement
located at Bullard.  He indicated that the likelihood is high that there is.
? If PG&E installs and owns the line then there are set of rules that the
City has in place for this work to be conducted by a public utility governed
by the CPUC.  The easement issues are broad under this scenario.
? David indicated that should PG&E install and own the 115kV line, that an
encroachment permit will not suffice.  He indicated that a Conditional Use
Permit would need to be utilized.
? David stated that should CSU Fresno want to install and own the 115kV line
that this is an area that is "convoluted and complex".  There would be a
tremendous amount of legal issues around this.  i.e. can the City grant this
easement to the University?  With the line being dedicated to the University
what does that mean?  Does CSUF have a legal right to this easement?
? It sounds like the City has never dealt with this type of issue and does
not have set of rules and/or regulations dealing with this.
? David stated that he might be in the next meeting with the University, EES,
and Fresno.

I will advise everyone should there be any other developments in this area
prior to the upcoming meeting with the City.  Let me know if you have any
comments or questions.

Rob Cone

Project Manager
Enron Energy Services
12647 Alcosta Blvd., Suite 500
San Ramon, CA 94583
Ph:925.543.3701, Fax:925.543.3550
Pager:888.397.5826


i have heard the rodeo opens at 6:45 for rodeo activities, but the concert
won't start until about 8:30.  someone up here went to duran duran last night
and it said the same thing on the schedule.  i will call tomorrow and double
check, but i really don't think they would start a concert that late, def
leppard isn't that old.


Hi, Greg:

Per my voice mail, could you please email or fax the final confirms to me?
Thanks.  Sara


The attached document, which was prepared in the context of examining the
regulatory framework in Mexico, gives a good general overview of the products
EBS offers.


CALENDAR ENTRY:	APPOINTMENT

Description:
	EB 30C2 - Doorstep Wrap-Up with East Power

Date:		6/21/2001
Time:		3:30 PM - 4:15 PM (Central Standard Time)

Chairperson:	Stacey W White

Detailed Description:

per Blanca Carrizales


Per our discussion, here is where we are on the Devon / Midcon (now Oneok)
Quinduno well  issue:

For the Devon purchase, we have been showing a price of the NGPL-Midcontinent
index + $.01 less $.3276 gathering--the 8.5% fuel was never shown in Sitara
and has never been deducted from Devon's purchase price as it should have
been.  This purchase falls under the "big" Devon deal that came to us from
CES--it is my understanding that this contract ends in July of this year.
 Mary Ellenberger handles Devon and should take care of the 8.5% fuel issue
retroactively to January 2000.

For the Midcon Texas (now Oneok) sale, we have been showing in Sitara the
NGPL-Midcontinent index less 8.5% fuel--the $.3276 gathering fee has never
showed up in Sitara as a deduction from the sales price as it should have
been.  Also, Oneok has never paid ENA for this gas all the way back to
January 2000 due to the fact that there was no contract.
 George Smith is taking care of the Midcon (now Oneok) issue.  For March
forward, Oneok has made it clear to George that they want to negotiate a
price with us for this production.  They have agreed to take all production
between 1/00 and 2/01 at NGPL Index flat less $.3276 gathering , less 8.5%
fuel.

When this is all cleaned up, the difference between the 8.5% fuel charge we
will receive from Devon vs. the $.3276 gathering fee we will not collect from
Midcon Texas is the adjustment that should hit your desk.  I do not have all
the actual volumes but, when I just use the volumes in Sitara under the
Midcon tickets, and do the fuel calculations for Devon vs the gathering fee
we did not account for, the impact was less than $20,000 (positive).
Therefore, even after actuals are used, I don't expect the amount to be
significant one way or the other

If you have any questions, please advise.

---------------------- Forwarded by Colleen Sullivan/HOU/ECT on 02/13/2001
08:36 AM ---------------------------
To: Mary Ellenberger/Corp/Enron@ENRON
cc: Colleen Sullivan/HOU/ECT@ECT, Bryce Baxter/HOU/ECT@ECT
Subject: Re: Sale to Midcon Gas Products.

The price that Oneok Field Services will be paying is a standard wellhead
netback price. Mainline index minus any associated fees required to get the
gas to the mainline. In this case that is $.3276 in gathering charges and 8
1/2% fuel. The original sale ticket was 91 1/2% of NGPL midcontinent index,
to reflect the fuel loss. The Devon purchase ticket reflects a deduction of
$.3276 reflecting the gathering charge. Neither ticket seems to capture all
of the appropriate fees.

The only way that ENA remains whole is if Devon is billed the appropraite
fuel charge.

The volumes that Devon provides to us each month do not reflect any fuel
deductions.


Joe,

This is the name and number of the attorney we talked about and the name of
the person referring you (Jenn, who works with me, is George's future
daughter-in-law).  Hope this helps - keep me posted buddy.

D-

>>> Jennifer Garnett 11/26/00 09:01PM >>>
713.940.6003


Following the Commission meeting tomorrow, the FERC report will be posted on
the following web site:
http://www.ferc.fed.us/electric/bulkpower.htm

Jacqueline Gallagher
Research/Policy Assistant
Electric Power Supply Association
1401 H Street, NW
Suite 760
Washington, DC  20005
202.789.7200
202.789.7201
jgallagher@epsa.org


Cindy-

The T-shirt people will deliver the shirts around 4 pm on Thursday.

See you then.  Hope your son is ok.

Susan Pereira


Good morning Jessica,

I'd like to be able to forward Wharton this week, Mr. Whalley's bio and his
mechanical needs (i.e. overhead projector, LDC panel, etc.) for his
presentation of December 13th.

Please let me know as soon as possible.

Regards,

Cindy


Non-smoking please.

Suzanne Adams
09/27/99 12:14 PM
To: Alan Aronowitz/HOU/ECT@ECT, Roger Balog/HOU/ECT@ECT, Peggy
Banczak/HOU/ECT@ECT, Sandi M Braband/HOU/ECT@ECT, Teresa G
Bushman/HOU/ECT@ECT, Bob Carter/HOU/ECT@ECT, Michelle Cash/HOU/ECT@ECT,
Barton Clark/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Shonnie
Daniel/HOU/ECT@ECT, Peter del Vecchio/HOU/ECT@ECT, Stacy E
Dickson/HOU/ECT@ECT, Shawna Flynn/HOU/ECT@ECT, Chris Gaffney/HOU/ECT@ECT,
Barbara N Gray/HOU/ECT@ECT, Wayne Gresham/HOU/ECT@ECT, Mark E
Haedicke/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT,
Dan J Hyvl/HOU/ECT@ECT, Monica Jordan/HOU/ECT@ECT, Dan Lyons/HOU/ECT@ECT,
Travis McCullough/HOU/ECT@ECT, Lisa Mellencamp/HOU/ECT@ECT, Janet H
Moore/HOU/ECT@ECT, Janice R Moore/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT,
Gerald Nemec/HOU/ECT@ECT, Doug Pedigo/HOU/ECT@ECT, David Portz/HOU/ECT@ECT,
Michael A Robison/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Richard B
Sanders/HOU/ECT@ECT, Lance Schuler-Legal/HOU/ECT@ECT, Sara
Shackleton/HOU/ECT@ECT, Shari Stack/HOU/ECT@ECT, Carol St Clair/HOU/ECT@ECT,
Mark - ECT Legal Taylor/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT, Steve Van
Hooser/HOU/ECT@ECT, Ann Elizabeth White/HOU/ECT@ECT, Stuart
Zisman/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT, Genia FitzGerald/HOU/ECT@ECT,
Susan Flynn/HOU/ECT@ECT, Linda R Guinn/HOU/ECT@ECT, Marie Heard/HOU/ECT@ECT,
Ed B Hearn III/HOU/ECT@ECT, Mary J Heinitz/HOU/ECT@ECT, Tana
Jones/HOU/ECT@ECT, Deb Korkmas/HOU/ECT@ECT, Mary Ogden/HOU/ECT@ECT, Debra
Perlingiere/HOU/ECT@ECT, Robert Walker/HOU/ECT@ECT, Kay Young/HOU/ECT@ECT,
Merrill W Haas/HOU/ECT@ECT, Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Peter Keohane/CAL/ECT@ECT, Michael R Brown/LON/ECT@ECT, Karen E
Jones/HOU/ECT@ECT, Dale Rasmussen/HOU/ECT@ECT, Christian Yoder/HOU/ECT@ECT,
Anita Fam/SIN/ECT@ECT, Taffy Milligan/HOU/ECT@ECT, Erica Braden/HOU/ECT@ECT,
Scott Sefton/HOU/ECT@ECT, Justin Boyd/LON/ECT@ECT, Paul Simons/LON/ECT@ECT,
Lou Stoler/HOU/ECT@ECT, Matthias Lee/SIN/ECT@ECT, David Mims@Enron, Laurie
Mayer/HOU/ECT@ECT, Greg Johnston/CAL/ECT@ECT
cc:
Subject: Smoking/Non-Smoking Rooms

Please advise which type of room you would prefer.  Thanks, Suzanne


----- Forwarded by Mark Taylor/HOU/ECT on 02/16/2001 02:39 PM -----

	Ruth Ainslie <RAinslie@isda.org>
	02/16/2001 11:46 AM

		 To: Mark Haedicke <Mark.E.Haedicke@enron.com>, Mark Taylor
<mark.taylor@enron.com>
		 cc: Pedro Martinez <PMARTINEZ@isda.org>, Stacy Carey <SCAREY@ISDA.ORG>
		 Subject: Mexico City Conference - FEBRUARY 16, 2001

 Here's the article I mentioned.  (Also in today's Press Report -
with same copyright caveat!).

 This is particularly interesting in light of our conversation on the
May 7-8 Mexico City ISDA Conference we are planning.  The agenda is "in
formation".  Jose Manuel (Board liaison) and Diane Genova (Chair) of the
Latin American Committee are enthusiastically involved and Pedro is our
staff liaison.  We have great support from the Bank of Mexico, NAFINSA,
Mexder (the exchange) and the Mexican Banking Association (all of which will
contribute speakers).  We would very much welcome one or more Enron speakers
- particularly from the region.  (We contemplate simultaneous
Spanish/English and English/Spanish translation to accommodate and encourage
both English and Spanish speakers).  Bob, Diane, Jose Manuel will also be
speakers.

 Here's a preview of the still very preliminary (and uncirculated)
Agenda:

 DAY 1:

 _morning
 Intro
 Keynote
 History and Development of OTC Derivatives
 Legal and Regulatory Standards in the Global Derivatives Markets
 Risk Mangement in the Derivatives Markets
 Overview of ISDA and current Activities

 _afternoon
 3 Workshops*
 I.  Comparative analysis:  Local Master Agreements and the ISDA
Master Agreement
 II.  Current Approaches to Risk Management
 III.  Financial Innovation: Growth and New Products*

 DAY 2'

 Keynote:  Economic Outlook
 Panel:  OTC Derivatives in Emerging Markets _ Latin American Focus*
 Credit and Equity Derivatives
 Review of New Bankruptcy Law and Regulatory Developments
 OTC Derivatives and Repo Transactions in Mexico
 Accounting and Tax Treatment of Derivatives and Repos in Mexico
 Synergy between Exchanges and OTC Derivatives in Mexico*

 I've put asterisks in several places where Enron would be a terrific
addition.  Other areas may also be appropriate.  Please let Diane, Pedro or
me know your thoughts.  Thak you.

 Best regards, Ruth

> MANAGING NATURE WITH MARKET MEANS
> Latin Finance - February 16, 2001
> By Maria O'Brien
>
> Unpredictable weather and deregulation of Latin America's electricity
> industry have serious implications for power companies in the region. They
> must simultaneously manage the risks associated with nature as well as
> those inherent in a free market.
>
> In Argentina, Brazil and Chile, where power comes mainly from
> hydroelectric dams, the industry is vulnerable to fluctuations in
> rainfall. Meanwhile, privatization and deregulation of the electricity
> market in these countries will require generators and distributors to
> manage shortfalls and excesses in power more efficiently, a function
> financial markets are already fulfilling in the US and Europe. The use of
> financial hedges to mitigate risk is a trend companies and regulators in
> Latin America want to encourage.
>
> Mitigating weather risk is not an abstract problem for the Latin markets.
> In 1998, power generation in Chile nearly ground to a halt when droughts
> caused power cuts at hydroelectric generators. One of the most affected,
> Chile's Pullinque 49 megawatt hydroelectric dam, was forced to halt
> production when river water levels dropped drastically Scudder Kemper
> Investments and Energia Global International, who were investors in the
> project, rescued
> the plant in a $52 million deal.
>
> John Northrop, of Scudder's Latin American power group, says the company
> did not consider hedging against weather risk prior to the drought in
> 1998, since financial cover was written into the generator's 30-year power
> purchase agreement with Endesa, Chile's main power company and largest
> hydroelectric investor. Under a unique agreement between Endesa and the
> generator, Endesa had to buy power from Pullinque, but the plant was not
> required to supply power to Endesa. Unlike other hydroelectric plants in
> the region, Pullinque wasn't forced to purchase expensive natural gas
> power in the spot market to keep the plant running at a loss.
>
> During the drought, Endesa was unable to buy adequate hydroelectric output
> and had to rely on older, inefficient fossil fuel power plants to
> supplement hydroelectric production. Since then, Chile has begun importing
> natural gas power through the $325 million GasAndes pipeline from Mendoza
> in Argentina.
>
> Power companies in Brazil currently rely on assured power arrangements in
> which generators cover one another for shortfalls in energy. ma
> deregulated market, they will be able to buy and sell power as needed.
>
> The rising number of natural gas-fired merchant power projects, which sell
> all their power to the spot market when demand is high, shows how
> profitable this business can be. According to Capital DATA's global
> project finance database, financing for $4.5 billion worth of merchant
> power projects in Latin America is complete to date, with $10.2 billion in
> the pipeline. Argentina already has five operating merchant power plants
> supplying power to the spot market. Brazil is preparing itself for
> deregulation in 2003 with the launch of a thermoelectric power generation
> program that will build 49 new plants by 2003.
>
> US energy companies such as AES, Enron and Duke Energy are lining up to
> snap up distribution and generation companies in government
> privatizations. In Brazil alone, auctions of Cesp, the S?o Paulo
> generator, and Eletrobras, the federally owned generator, are expected
> this year.
>
> Following the lead of US energy companies, providers of risk management
> products are looking to get involved. One innovative risk management
> financing structure-for a power plant in Cartegena, Colombia-has been
> completed in the region and insurers, re-insurers and even investment
> banks are incorporating risk management into debt products in case another
> drought stifles hydroelectric power and injects price volatility into the
> spot market.
>
> Setting a Standard
> The Termocandelaria 314 megawatt 'peaking' gas-fired merchant power plant
> in Cartegena sells thermal power to Colombia's spot market. Colombia
> derives 70% of its power from hydroelectricity as a merchant power plant
> selling all its power to the spot market, Termocandelaria is 100% exposed
> to revenue risks.
>
> The sponsor, KMR Power Corp., originally planned to raise financing in
> 1998 with a high-yield debt issue in New York's 144A bond markets. When
> the bond market shut its doors to emerging market borrowers following the
> Russian crisis, the company was forced to look for an alternative
> financing scheme. KMR Power secured an agreement with Centre Solutions, a
> risk management unit of Zurich Financial Services, to guarantee an $85
> million subordinated loan structured to absorb power price volatility
> risks.
>
> Stefan Marti, vice president at the Centre Group in New York, says the
> insurance company determined KMR's debt repayments based on a seven-year
> projected rainfall profile. Termocandelaria scheduled repayments for
> periods when there was little rainfall and therefore increased demand for
> natural gas power in the spot market. Double A- rated Centre Solutions
> guaranteed to meet payments if revenues dipped. Marti says there were
> periods when Centre would make payments and recover them later.
>
> Once KMR Power secured this insurance, Bank of America agreed to syndicate
> a $90 million, five-year senior loan. Centre also took a $35 million chunk
> of the senior debt and five local banks joined the syndicate.
>
> Centre's participation was a landmark because until 1998, insurance was
> designed to cover catastrophic events and not to manage fluctuations in
> weather patterns. That year, MG Risk Finance, a division of the insurance
> company American International Group, developed its snow, temperature and
> rain management product to protect revenues that were adversely affected
> by unfavorable weather. MG provided insurance for an excess or shortfall
> in precipitation, extreme temperatures or any other weather event as
> measured by an independent weather source.
>
> Since the inception in the US of the weather risk management industry in
> 1997, and the creation of tradable financial instruments, approximately
> 5,000 weather derivative trades worth more than
> $5 billion have been completed.
>
> Enron was the first energy company in the US to develop weather risk
> management products. With $1.5 billion invested in hydroelectric projects
> in Latin America, the Houston-based energy conglomerate is convinced the
> potential for weather derivatives exists in that market.
>
> 'The appeal of a weather derivative" says Valter Stoiani, a marketing
> executive in Enron's global risk management group, "is that unlike
> insurance-which is designed to compensate for catastrophe and requires the
> buyer to submit a claim and demonstrate an actual loss- a derivative does
> not require proof of loss. Instead, settlement is based only on the
> performance of the index against a strike level with no up-front cost."
> Stoiani says that unlike insurance, transactions can be structured in many
> different ways. In one of the more popular forms, there is no up-front
> premium but the buyer is still able to exchange its variable exposure for
> a fixed exposure. The buyer receives financial compensation in the event
> of adverse conditions, but pays out in favorable weather.
>
> "The concept of a flexible and inexpensive derivative is appealing but
> difficult to implement in Latin America at the moment," says Stoiani,
> because the market lacks fundamental elements.
> Mark Tawney director of Enron's worldwide trading operations, agrees,
> adding that "the biggest problem for hedging weather risk in Latin America
> is the difficulty in assembling enough quality data."
>
> Unlike the National Weather Center in the US, there is typically no
> central pool of historic data in electronic form in Latin American
> countries. The quality of the data differs from country to country and in
> some countries there is little information available.
>
> Marti says Centre Solutions required 20 to 30 years of weather data to
> structure Termocandelaria's subordinated loan and "unlike other countries
> in Latin America Colombia's data is quite good." Stoiani says that without
> 30 to 50 years worth of meteorological information, "there is no
> foundation for a weather index as a benchmark for structuring weather
> derivatives."
>
> Jeff Kabel, director of trading and origination for Enron Argentina, says
> the company is working hard to educate local energy companies on the
> potential of weather derivatives "as a tool to manage cash flow exposure."
> But the lack of liquidity in the power trading markets is also a problem.
> Even in Argentina, with an active wholesale market since 1998, there is
> still relatively low liquidity.
>
> In Chile, the state energy commission still regulates prices for retail
> clients. In Brazil, Mitsumori Sodeyama, president of the country's power
> exchange administrator, ASMAE, does not expect liquidity to pick up until
> the market is fully liberalized in 2006, since the wholesale electricity
> market was just introduced in late 2000.
>
> The Brazilian electricity regulatory agency, known as Aneel, is
> encouraging investment in hydroelectricity and has invited bids for 31
> hydroelectric generation plants totaling $12.2 billion. John Foster,
> senior vice president of Latin America for InterGen, an international
> power company jointly owned by Bechtel Enterprises and Shell Generating,
> doesn't think this is part of any long-term plan to exploit Brazil's
> hydroelectric potential. He says, "There has been massive under-investment
> in Brazil in the last 10 years and with demand still growing, they are
> trying to build anything they can, period."
>
> However, Aneel is offering incentives to private investors in
> hydroelectricity and awarding concessions for the independent production
> of electricity to be freely traded in the wholesale market. Small
> hydroelectric plants with up to 30 megawatts of capacity are entitled to
> discounts of over 50% in fees for using transmission and distribution
> systems and can trade electricity at no cost with consumers of loads of
> 500 kilowatts or more.
>
> Sodeyama "absolutely expects a secondary market as the energy market
> evolves to a more mature situation." He estimates that Brazil's energy
> profile will reduce hydroelectricity to 80% of total energy investment
> from 92% in the next 10 years and increase its investment in natural gas
> from to 17.5%. from 5.5%. As private investors need to manage their hydro
> and thermal assets, "this means potential for risk management products,"
> Sodeyami says.
>
> Enron's Stoiani agrees that "a couple of years down the road the market
> will pick up, "and as competition increases, he sees "growing interest
> from counterparties looking for effective ways to hedge their exposure to
> weather, as well as additional interest from speculators." With the growth
> in liquidity, Stoiani foresees opportunities for arbitrage and
> cross-commodity trading. He says "a hydroelectric plant with no natural
> gas-fired back-up plant could purchase a derivative paying out gas units
> in times of low precipitation."
>
> The Centre Group's Marti says his company is writing weather-related
> insurance risk for both hydro and thermal power in South America for local
> and foreign power companies. "It provides an interesting profile for
> smaller sponsors of power projects, who may have equity capital
> constraints," he says.
>
> Foster agrees and says that as the deregulated electricity markets mature
> and more efficient, less-expensive products emerge, investors will need
> some long-term hedge, either a portfolio of diversified assets or these
> financial products.
>
> In the long term, Enron's Tawney predicts that the growing needs of the
> energy sector in Latin America coupled with the deregulation of the power
> market will mean "the energy industry will be both the first and the
> largest" buyer of weather derivatives.
>
>
> THE ISDA PRESS REPORT IS PREPARED FOR THE LIMITED USE OF ISDA STAFF,
> ISDA'S BOARD OF DIRECTORS AND SPECIFIED CONSULTANTS TO ISDA.  THIS PRESS
> REPORT IS NOT FOR DISTRIBUTION (EITHER WITHIN OR WITHOUT AN ORGANIZATION),
> AND ISDA IS NOT RESPONSIBLE FOR ANY USE TO WHICH THESE MATERIALS MAY BE
> PUT.
>
>


Any GCP adjustments will be highlighted in red.

Best Rgds.

Samuel x3-9890
(GCP_Enron Networks)

From: Aparna Rajaram/ENRON@enronXgate on 03/05/2001 08:35 AM
To: Karen Lambert/HOU/ECT@ECT, Kelly Lombardi/NA/Enron@Enron, Samuel
Schott/HOU/ECT@ECT, Bernice Rodriguez/HOU/ECT@ECT, Bill D Hare/HOU/ECT@ect,
Steve Venturatos/HOU/ECT@ECT, Camille Gerard/Corp/Enron@ENRON, Mary G
Gosnell/HOU/ECT@ECT, Tanya Rohauer/ENRON@enronXgate, Paul
Radous/ENRON@enronXgate, Tom Moran/ENRON@enronXgate, Tana Jones/HOU/ECT@ECT,
Frank L Davis/HOU/ECT@ECT, Ken Curry/ENRON@enronXgate, Nicole
Hunter/NA/Enron@Enron
cc:
Subject: Click Paper Approvals, 3-5-01

Please see attached.

Regards,

Aparna Rajaram
ext. 5-4563


Per Kay Chapman's phone call


_____

Get your FREE download of MSN Explorer at http://explorer.msn.com <http://go.msn.com/bql/hmtag_itl_EN.asp>


Be happy to.  I may take the liberty of a little word-smithing if you don't
mind.  (and will show it to you before i send it) I should be over within the
next 4 weeks.
Regards.
Jeff

	Enron Capital & Trade Resources Corp. - Europe

	From:  Pierre Aury                           01/10/2001 03:18 AM

To: Jeffrey A Shankman/HOU/ECT@ECT
cc: Mike McConnell/HOU/ECT@ECT, Brad Hitch/EU/Enron@Enron, Eric
Gonzales/LON/ECT@ECT, Stuart Staley/LON/ECT@ECT, George McClellan/HOU/ECT@ECT
Subject: lng shipping

jeff
long time no talk on lng shipping matters. during the xmas/new year period we
discussed a lot with brad and have come up with some clear ideas on how to
proceed to drive quickly a market change in the field of lng shipping. the
best bet at this stage looks like mosk the big japanese shipping co . they
control directly or indirectly 40 lng vessels. the lng shipping market is so
inefficient that about 20 pct of that fleet is either iddle or under
utilized. the idea is to team up with mosk to have access to their idle fleet
at marginal cost plus small margin. this would enable us to ask them to give
us a ship every time we can develop a spot lng cargo : no capital outlay, no
take or pay obligation, win /win situ as mosk would then make money (that s
their incentive) out of an iddle fleet and we would then gain access to ships
enabling us to make money on lng spot cargoes without entering long term
comitment on the shipping front .

mosk being japanese , in order to jump start the entire thing we need a fax
to be sent from high level in enron to high level in mosk prior brad and
myself go and meet these guys in tokyo to discuss the idea in more details
(at lower level in mosk the idea is known and accepted/tentative date already
set last days of jan/early feb for the first meeting) . would you mind to
send such a fax along the lines i propose herebelow asap  ?

thanks in advance . any questions please feel free

pierre

quote
to

Mr Iwata , Executive Officer, LNG Division , MOSK
cc Mr Hashimoto , Manager, Project Development team, LNG Division, MOSK
both on fax number (81) 3 35 87 77 48
Mr Amine Hakim, MOSK London
on fax number (44) 870 130 97 37

 Dear Sir

Enron, through its newly formed Enron Global Market business unit, is
targeting the LNG commodity and shipping markets as being key markets for the
coming years mainly on account of their growth potential but as well because
these markets are  ripe for a change in their very nature.

MOSK , because of the sheer size of its LNG shipping fleet and Enron, because
of its proven ability to make markets change, are uniquely positioned to team
up and drive these changes rather than react to them.

Enron would like to explore with MOSK if and how both companies could
cooperate in the lng field to achieve this.

Brad Hitch on the commodity front and Pierre Aury on the shipping front will
be leading this efforts on the Enron side and you can expect to have them
contacting you very shortly to start these discussions.

Yours faithfully

signed
Jeffrey A Shankman         or         Mike McConnell
tittle (in big letters please ...)


Thanks for your notes.  Just so you know, I have the Polo Sport perfume and a
Victoria's Secret gift certificate for Emily.  Were there lists for you and
Dad?  I can't seem to find them.


-----Original Message-----
From: 	Walsh, Kristin
Sent:	Wednesday, June 27, 2001 3:35 PM
To:	Presto, Kevin M.; Sturm, Fletcher J.; Herndon, Rogers; Davis, Mark Dana; Gilbert-smith, Doug; Will, Lloyd; Imai, Rika; Mayor, Philip; Cuilla, Martin; Shively, Hunter S.
Cc:	Tholan, Scott
Subject:	Labor Update 6/27/01
Importance:	High

The following information is from a Union source:
Union planning to go on strike at 6am tomorrow morning  (1200 employees of which 250 are Management)
The current shift is the last prior to the strike
Meeting continue today and through out the night
A Federal mediator has been bought in to try and help the situation
The only way the Union won't go on strike is if there is a tentative agreement in place with Midwest, however, everyone involved feels these chances are slim
When a strike occurs, it will affect 7 plants


Start Date: 4/2/01; HourAhead hour: 1;  HourAhead schedule download failed.
Manual intervention required.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001040201.txt
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: Crawler lifetime exceeded.
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
!!!An error occurred while attempting to initialize the Borland Database
Engine (error $2A04)
Error: dbCaps97Data: Cannot perform this operation on a closed database