USA: Enron shares in stay in doldrums after downgrade.
Reuters English News Service, 10/29/01
USA: US companies' credit quality to worsen-Moody's.
Reuters English News Service, 10/29/01

Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)
Bloomberg, 10/29/01

USA: Enron shares drop despite further triage attempts.
Reuters English News Service, 10/29/01

USA: Enron says in talks with banks for new credit line.
Reuters English News Service, 10/29/01
USA: UPDATE 1-Enron says in talks with banks for new credit line.
Reuters English News Service, 10/29/01
POWER POINTS:Enron May Have To Rethink Asset-Light Focus
Dow Jones Energy Service, 10/29/01
OFFICIAL CORRECTION Enron long-term ratings downgraded to Baa2 - Moody's
AFX News, 10/29/01
USA: Moody's cuts Enron to 2 notches above "junk".
Reuters English News Service, 10/29/01
UK: Europe energy firms wary of Enron on credit worries.
Reuters English News Service, 10/29/01
BANDWIDTH BEAT: Enron Puts Spotlight Back On Broadband
Dow Jones Energy Service, 10/29/01

USA: Enron shares in stay in doldrums after downgrade.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Enron Corp.'s share price hovered above seven-year lows touched in earlier trade Monday after Moody's Investor Service cut the credit status of its senior unsecured debt of North America's largest energy trader to two ratings above junk status.
Enron, the largest electricity and natural gas trader in North America, also on Monday said it was in talks with banks to expand its credit lines to ease financial concerns that have sent its stock slumping more than 50 percent in the past two weeks.
Enron shares were down $1.40, or 9.03 percent, to $14.10 on the New York Stock Exchange, after earlier in the session trading below $14 for the first time since December 1994.
Moody's also warned that it could cut the debt rating again, now downgraded to Baa2, as well as its rating for the Enron's commercial paper.
Enron's credit-worthiness will have a direct affect on its day-to-day trading operations and its trading partners' perception of making good on trades. With a credit rating hovering above junk status, the cost of doing business will soar as trading partners look for increased collateral to back trades.
Last week Enron shares lost almost $14 billion in market value as a series of piecemeal disclosures about the company's involvement in complex partnerships began to trickle out.
Investors have fled Enron's stock in droves following disclosures that the company did off-the-balance sheet transactions with two limited partnerships run by former chief financial officer Andrew Fastow in deals the U.S. Securities and Exchange Commission is now looking into for possible conflict of interest.
Enron compensated its partners in this off-balance sheet structure with the promise of Enron shares, if the value of private investments in several of its units fell below a certain level.
Many industry observers see Enron's request for additional credit, after the company tapped its banks for $3.3 billion last week, as a sign a weakness.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead ... it's an act of desperation," said Carol Levenson, an analyst with independent research firm gimmecredit.com.

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

USA: US companies' credit quality to worsen-Moody's.
By Jonathan Stempel

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - U.S. corporate credit quality is likely to grow much worse before it gets better, a leading credit rating agency said in a report issued on Monday.
Moody's Investors Service said that in the third quarter, it put on review for downgrade its credit ratings for 122 U.S. companies. At the same time, it put on review for upgrade its ratings for just 22 companies.
That 5.5-to-1 ratio is far greater than the 1.3-to-1 ratio in the second quarter.
In dollar terms, the situation looks more dire. Moody's warned it may downgrade $543 billion of debt, dwarfing the $66 billion Moody's said it may upgrade by 8.2-to-1.
"Particularly in light of September 11, the fourth quarter will be particularly weak for credit rating changes," said John Puchalla, Moody's senior economist. "A wide excess of rating reviews for downgrade over upgrades in the third quarter suggests credit deterioration will persist at least into early next year."
Rating reviews are significant because, unlike actual rating changes, they are not a "lagging" indicator, and suggest the future direction of corporate credit. Moody's normally wraps up its reviews within three months.
U.S. corporate credit quality is falling for many reasons. These include the weakening U.S. economy, an inability of marginal companies to raise cash, debt-financed merger activity and fallout from the Sept. 11 attacks on such industries as airlines, insurance, and travel.
For example, Moody's in July warned it may cut Comcast Corp.'s ratings after the Philadelphia-based company bid $44.5 billion for AT&T Corp.'s cable TV operations.
Then last month, Moody's warned it may cut Chicago-based Boeing Co.'s ratings because of the attacks' potential impact on demand for commercial airplanes.
In the third quarter, Moody's warned it may cut its ratings of 54 speculative-grade, or "junk"-rated, companies, and raise the ratings of just 11. For investment-grade companies, the gap was even more yawning: 68-to-11.
And in the fourth quarter? Through Friday, Moody's warned it may downgrade 47 companies and raise a mere four. On Monday, it downgraded embattled energy trading giant Enron Corp., and put all of its ratings on review for another downgrade.
Puchalla, however, said the decline could slow next year, in part because interest rates are low and companies are managing their balance sheets more conservatively.
"Lower borrowing costs and slowing debt growth should reduce debt servicing costs, and fiscal stimulus from the federal government should boost business revenues," he said. "That is a positive for credit quality."
The third quarter was the 14th in a row when corporate rating downgrades outpaced upgrades. The record is 19 quarters, set between 1988 and 1993.

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

Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)
2001-10-29 12:16 (New York)

Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)

     (Updates with analyst comment in fifth paragraph.)

     Houston, Oct. 29 (Bloomberg) -- Enron Corp., which can't get
low-interest, short-term loans, faces skeptical lenders who will
demand increasingly harsher terms as the largest energy trader
tries to get cash in the bank, credit analysts said.

     ``Anyone providing new funding is going to be nervous,'' said
Sean Egan, managing director at Egan-Jones Ratings Co. ``It's
likely that lenders are going to demand collateral.''

     Enron is trying to get $1 billion to $2 billion in loans from
Citigroup Inc., J.P. Morgan Chase & Co. and other banks to calm
investors after a 52 percent drop in the company's stock since
Oct. 17, the Wall Street Journal reported. The company needs cash
every day to settle commodities transactions and to keep trading
partners.

     The company on Thursday tapped $3.3 billion in bank credit
lines last week to pay off about $2 billion in commercial paper,
or short-term corporate loans. A week ago, the Enron said the U.S.
Securities and Exchange Commission had began an inquiry into
related-party transactions. They cost the company $35 million and
$1.2 billion in lost shareholder equity.

     ``Banks are in the driver's seat, and Enron is a little
desperate,'' said Peter Petas, a debt analyst at CreditSights Inc.
``I think their interest rates for loans would go up.''

                       Sells Assets for Cash

     Companies in Enron's situation often agree to other bank
terms in order to secure loans, Petas said. Those can include
agreeing to use proceeds from selling assets to pay debt and
putting up assets as collateral.

     Enron is attempting to sell assets to raise cash. Two related
partnerships, Osprey and Marlin, depend on selling power plants
and similar assets to repay $3.3 billion borrowed to buy the
plants. Enron may have to pay any difference between the debt and
sales proceeds.

     The company plans to complete the $2.9 billion sale of
Portland General Electric, an Oregon utility, to Northwest Natural
Gas Co. next year.

     Shares of Houston-based Enron fell $1.30, or 8.4 percent, to
$14.10 in midday trading. Earlier, they touched $13.55, down 12
percent. The company's credit rating was cut by Moody's Investors
Service after it wrote down the value of its assets.

     The stock had tumbled 80 percent in the past 12 months.

--Russell Hubbard in the Princeton newsroom, 609-750-4651

USA: Enron shares drop despite further triage attempts.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Enron shares slipped to a new six-year low in early trade as North America's largest natural gas and electricity trader said it was talking to banks about tapping additional credit lines to ease financial concerns that have sent its stock slumping more than 50 percent in the past two weeks.
Enron's shares were trading down 90 cents, or 5.8 percent, to $14.60 in early morning trade on the New York Stock Exchange. Shares crashed through $15, a low not seen since February 1995.
Last week, Enron shed almost $14 billion in market value as its stock price tumbled more than half since last week, when a series of piecemeal disclosures about its involvement in complex partnerships began to trickle out.
However, many industry observers see Enron's request for an additional credit after tapping its banks for $3.3 billion last week after as a sign a weakness not of strength.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead ... it's an act of desperation," said Carole Levenson, research analyst with independent research firm gimmecredit.com.

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

USA: Enron says in talks with banks for new credit line.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. said on Monday it is in talks with banks for additional credit, in a move to shore up investor confidence.
Enron declined to comment on the size of the credit line, which banks it is in talks with and when it expects to complete an agreement on a new credit line.
"We want to restore investor and market confidence and nothing instills confidence like cash," said Enron spokesman Mark Palmer.
The Wall Street Journal reported Monday the beleaguered energy trader is negotiation with bank for a new credit line of between $1 billion to $2 billion to prop up share prices following last week's selling that sent shares plummeting.
Enron said it drew about $3 billion in new credit lines last week, and has a net cash liquid position in excess of $1 billion.
Enron shares sank 50 cents, or 3.2 percent, to $15 in early morning trade on the New York Stock Exchange. ((David Howard Sinkman, New York Newsdesk 646-223-6094)).

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

USA: UPDATE 1-Enron says in talks with banks for new credit line.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. said on Monday it is in talks with banks for additional credit, in a new move to shore up investor confidence after it tapped about $3 billion in credit last week, and to stop a plunge in the company's stock that set new six-year lows.
Enron declined to comment on the size of the credit line, which banks it is in talks with and when it expects to complete an agreement on the new credit line.
Enron shares crashed through a psychological barrier of $15 a share, shedding $1.66, or 10.65 percent, to $13.85 in early morning trade on the New York Stock Exchange. The stock has lost more than half of its value in the past two weeks, losing more than $14 billion in market capitalization.
"We want to restore investor and market confidence and nothing instills confidence like cash," said Enron spokesman Mark Palmer in Houston.
Enron shares have tumbled since the company reported its first-quarterly loss in more than four years on Oct. 16. The company also wrote down $1.2 billion in equity, including transactions with partnerships formerly run by its chief financial officer who was forced to step down from Enron last week.
The sell-off was sparked by investor concern about the transparency of the transactions, which the Securities and Exchange Commission is examining. Enron last week replaced CFO Andrew Fastow as part of efforts to restore investor confidence.
The Wall Street Journal reported Monday the beleaguered energy trader is negotiation with bank for a new credit line of between $1 billion to $2 billion to prop up share prices following last week's selling that sent shares plummeting.
Enron said it drew about $3 billion in new credit lines last week, and has a net cash liquid position in excess of $1 billion.
"Clearly, both the stock and bond market view Enron as being in dire straits," said independent research firm Gimme Credit analyst Carol Levenson.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead it's an act of desperation."

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

POWER POINTS:Enron May Have To Rethink Asset-Light Focus
By Mark Golden

10/29/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column

NEW YORK -(Dow Jones)- On the face of things, it's hard to understand the stock market's headspinning reaction to Enron Corp.'s (ENE) revelation of some bad news in recent weeks.
Why the talk of a "death spiral" for North America's premier energy trading company? The stock price of Cisco Systems Inc. (CSCO), for example, saw an almost identical drop over a similar 12-month period. Nobody questioned the viability of Cisco.
The difference is that over the past few years, Enron has redefined itself as a company that runs on financial and intellectual muscle - not hard assets - and that focus is getting the company into trouble now that its credibility is in question.
If you're buying network components, you can probably stand some ambiguity in the finances of your supplier. After all, you're buying something you can touch. But if you're buying power or gas, what you're really buying is a commitment to deliver. If your supplier doesn't come through when the market gets tough, you're left totally exposed. In Enron's energy trading business, then, credibility at every level is critical.
For now, Enron looks to be more than viable. But the company's asset-light strategy might not be. Gross profits from trading have shrunk to 1.65% in the third quarter from 5.26% in the first quarter of 1998. Meanwhile, asset-heavy energy companies like Mirant Corp. (MIR) and Calpine Corp. (CPN) successfully use trading to optimize the performance of power plants and other infrastructure.
Two weeks ago, Enron reported a $618 million third-quarter loss, resulting from $1.01 billion in write-offs. That didn't send investors running, however. In fact, its stock price rose a bit on the news.
What hurt was the disclosure that Enron had reduced its net assets, or "shareholders' equity," by $1.2 billion as a consequence of unwinding positions in partnerships headed by former Chief Financial Officer Andrew Fastow. That, along with warnings of possible downgrades by credit ratings agencies and an inquiry by the Securities & Exchange Commission produced a $15.6 billion drop in Enron's market value.
On Monday, Moody's Investors Service followed through by downgrading its rating on Enron's senior, unsecured long-term debt to Baa2 from Baa1, leaving it two steps above junk-bond levels. The agency kept Enron's ratings on watch for further downgrade.
Long-Running Concerns

A 50% hit to shareholder value still seems like an overreaction to a 10% reduction in shareholders' equity. The stock price reflects the expectation of additional losses to be reported and Enron's loss of credibility. Enron executives in a conference call Tuesday insisted that the worst was behind them, but few on the call believed that.
For some analysts, Enron's revelations only fed long-running concerns about the company's lack of financial disclosure.
Cary Wasden, managing partner of Reed Wasden Research, has had a "sell" recommendation on Enron since March. Unlike the analysts at big Wall Street firms, Wasden isn't in the business of selling stock. His firm isn't involved in brokerage and isn't a hedge fund. Wasden gets paid for his research, and the company doesn't invest in the securities it covers.
A main Wasden concern with Enron is that the company has regularly included the proceeds from one-time sale of physical assets in operating income. His belief is that Enron has dramatically inflated its earnings for the past couple of years - a concern to which an Enron spokeswoman couldn't immediately respond.
"Don't believe by any means this is the end of the story," Wasden said.
Wall Street sell-side analysts have largely kept Enron as a "buy" or "strong buy" as the stock fell from $90 to $20. But even they are expressing concerns about the quality of Enron's reporting.
For now, the plunge in the price of Enron's shares and bonds, which last week started trading like junk-rated debt, hasn't hurt its credit standing with energy trading partners.
"We haven't changed our thinking regarding Enron or our policies and practices. We're watching it, and so is everybody else, but they are a solid company," Reliant Energy Inc. (REI) spokesman Richard Wheatley said in a typical reaction. "This is unfortunately a feeding frenzy regarding some dealings that I'm sure Enron will be able to come out of at some point."
Keeping Talent A Challenge

Enron is a big company - far too big to ignore. But continued deterioration in the price of its shares and bonds could lead counterparties to restrict their traders' transactions with Enron. If the company's investment-grade bonds continue to trade near levels traditionally considered distressed, risk managers won't be able to ignore it, whatever else Moody's does.
Assuming that doesn't happen, Enron still faces a tough road ahead. Like all companies, Enron is the combination of capital and talent. For financial companies, talent is the more important ingredient, and Enron has been suffering damage to its talent for some time.
New Chief Executive Jeff Skilling left in August, and a handful of his key lieutenants left earlier in the year. The losses can be expected to continue. Much of the top management cashed out when the company's stock price was high and moved on. Now middle management on down is angry and anxious to move on, if they haven't already.
Over the years, Enron has compensated its very talented labor with stock options to make up for base pay considered low by the industry. Those options are now nearly worthless. If Enron's debt-service costs rise, the company could struggle to attract the talent needed to generate income in its core business of trading energy in North America.
Some analysts would like to see more turnover at the very top. When Skilling left, nobody believed Skilling or Chairman Kenneth Lay's assurances that it was for "personal reasons." When CFO Fastow was forced out of his position last week, Lay said, "In my continued discussions with the financial community, it became clear to me that restoring investor confidence would require us to replace Andy as CFO."
That's putting words in Wall Street analysts' mouths. Who thought scapegoating Fastow was really the answer?
"I don't know anybody who said that," Wasden said. "What did the CFO do, what did Skilling do, that Ken Lay wasn't part of?"
Real change will have to come from without, Wasden said.
"Enron has been a cult, more than a company," he said. "Recruiting from within does nothing to change the company, it just changes the disciples. Enron needs to pull some top talent from outside."
Nevertheless, Wasden thinks Enron's stock has reached its natural floor and, if the company starts disclosing how it really makes money, it can recover over time.
"There are a lot of earnings that can be wrung out of really strong operating assets, like pipelines and power plants," he said.
That means paying more attention to the assets that Enron has spent the past few years denigrating. Given the bind Enron is in, Lay won't have much choice. Enron will survive, but it won't be the same company at all.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com

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

OFFICIAL CORRECTION Enron long-term ratings downgraded to Baa2 - Moody's

10/29/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

(Moody's corrected its stance on Enron ratings to a downgrade)
NEW YORK (AFX) - Moody's Investors Service said it has lowered the senior unsecured long-term debt ratings of Enron Corp from Baa1 to Baa2 following a deterioration in Enron's financial flexibility since the company announced significant writedowns as well as equity charges in previously undisclosed partnership investments.
The long-term debt ratings remain on review for further downgrade, Moody's said.
Moody's also placed the company's Prime-2 rating for commercial paper on review for downgrade.
Moody's initially placed Enron's long-term debt ratings on review on Oct 16. The write-downs and equity charges led to a substantial loss in investor confidence that has led to a more than halving of Enron's share price and difficulties in rolling over commercial paper, according to Moody's.
In response to these events, Moody's said Enron has shored up its near-term liquidity position by drawing down on all of its committed revolving credit facilities and buying back its outstanding commercial paper, leaving the company with a net cash position of approximately 1.2 bln usd.
Moody's said it plans to focus on management's success in lining up further liquidity support and on their ability to retain credit availability from their major counterparties.
aw/gc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

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

USA: Moody's cuts Enron to 2 notches above "junk".

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Moody's Investors Service on Monday cut embattled energy trading giant Enron Corp.'s senior unsecured debt rating to two notches above junk status, and warned it may cut that rating again, as well as its rating for Enron's commercial paper.
The rating agency cut Houston-based Enron's senior unsecured debt to "Baa2" from "Baa1," and said it may cut Enron's "Prime-2" commercial paper rating, which affects short-term debt. Its rating actions affect $13 billion.
Moody's said Enron is suffering from deteriorating financial flexibility since it announced big write-downs and equity charges from previously undisclosed partnership investments this month. This triggered "difficulties in rolling over commercial paper," Moody's said.
Enron, which has about $63.4 billion in energy assets, said on Monday it is talking with banks to get more credit, after last week drawing down $3 billion from a bank credit line to buy back its outstanding commercial paper.
Its shares traded Monday on the New York Stock Exchange at $13.75, down $1.75, or 11.3 percent. They have fallen 62 percent since Oct. 12, from $35.81.
Rating agency, Standard & Poor's, on Thursday revised its outlook for Enron's ratings to "negative" from "stable."

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

UK: Europe energy firms wary of Enron on credit worries.
By Stuart Penson

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Oct 29 (Reuters) - Energy companies in Europe are shying away from trading with troubled U.S. energy group Enron amid concerns about the company's credit status, industry sources said on Monday.
Several large energy groups have frozen their dealings with Enron - one of Europe's biggest gas and power traders - as they hold urgent talks with the U.S. group about setting up new credit arrangements, the sources said.
"I think Enron's approach is to get the major counterparties back on board as quickly as possible and then hope the smaller ones will follow," said the head of risk management at one UK utility that halted its trade with Enron last week.
"They are talking with us about bank letters of credit," he said. "The people that are still trading with them are doing so on a very restrictive basis."
A spokesman for Enron's European headquarters in London headquarters declined to comment.
Reluctance to trade with Enron in Europe comes as the company tries to rebuild investor confidence after its stock hit five-year lows.
Triggering the slide was news last week the U.S. Securities and Exchange Commission is investigating huge losses relating to a private equity operation run by its former chief financial officer.
Houston-based Enron trades a large amount of its volume in the U.S. and Europe through its Internet EnronOnline system.
Last Friday the company said trade on EnronOnline was above average levels with more than 8,400 transactions at a notional value of approximately $4 billion.
Traders said Enron's plight could hit liquidity in European gas and power markets, where liberalisation has unleashed rapid growth in energy trading in the last couple of years.
One industry source cited a brokers list showing eight companies in the UK electricity market had put on hold their trading Enron, which is among the biggest five traders in the market.
In mainland Europe, where Enron has been a major driver of liquidity, potential counterparties are treading with care.
"We are avoiding them as counterparties - either by not trading with them or by using a 'sleeve' (a third party trader)," said a senior trader at one of Germany's big utilities, who declined to be named.
French traders said wariness about dealing with Enron had dampened liquidity although Enron was still in the market on Monday morning.
"Enron is a major player so counter parties are looking to see if there is a problem," said one French trader.

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

BANDWIDTH BEAT: Enron Puts Spotlight Back On Broadband
By Michael Rieke

10/29/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column

HOUSTON -(Dow Jones)- Thanks to Enron Corp. (ENE), the broadband sector again looks like a place to make money.
But it won't be traders who will cash in on this new potential. It will be class-action attorneys. They're already lining up to sue Enron in at least five shareholder suits.
As of Oct. 25, two of lawsuits had been filed against Enron in federal court and three more in Texas state court. Most of them name as defendants Ken Lay, Enron's longtime chairman, former Chief Executive Jeff Skilling and Andrew Fastow, Enron's chief financial officer until he was put on leave of absence Oct. 25.
Still another suit, which isn't a class action suit, was filed naming as defendants members of Enron's board of directors.
All the lawsuits concentrate on private investment partnerships Enron set up, many of them managed by Fastow. Most of the suits contend that it was a conflict of interest to have the Fastow partnerships doing complicated hedging transactions with Enron.
The transactions named in the lawsuits involved billions of dollars of underperforming assets in broadband, water and other Enron investments.
Fastow operated on both sides of some of those transactions. As Enron's chief financial officer, he was being paid to manage the corporation's finances. As general partner of two LJM partnerships, he managed the counterparties to billions of dollars of trades with Enron. He shared in profits of those partnerships.
When investors began demanding information about the transactions, Enron's share price began to slide. With the heat on, Enron recently unwound the trades with the partnerships and booked $544 million related to losses from early termination of the deals, among other things.
That's when the class action attorneys went to work. So far, at least 14 law firms are representing the plaintiffs. Enron didn't respond to calls asking about the lawsuits.
Among the law firms representing plaintiffs is Milberg Weiss Bershad Hynes & Lerach, which put out a news release announcing its lawsuit. The release points out that the firm has been responsible for recovering more than $30 billion from class action lawsuits.
The lawsuits bring up questions about the bandwidth trading market. Some of the deals with the LJM partnerships run by Fastow "purportedly involved hedging transactions in the broadband market," according to Abrams and Franks v. Enron et al.
That could tie into questions that have lingered in the bandwidth market for months. Market skeptics have said Enron and other energy companies are the only ones trading bandwidth.
Enron has reported that it has been trading with a growing number of counterparties, a total of 120 in the second quarter of this year, according to Enron.
Now market watchers will want to know if any of Enron's trades were done with the LJM partnerships managed by Fastow.
They will also want to know how many bandwidth trades were done with Chewco Investments. That Houston company, according to a report in The Wall Street Journal, was managed by Michael Kopper and was set up in 1997 when Kopper was a managing director with Enron's Global Equity Markets Group. He left Enron earlier this year to work for partnerships run by Fastow.
Do the plaintiffs' attorneys know whether Enron was trading bandwidth with any of those investment partnerships?
"I think if is too early to tell," Thomas Bilek of Hoeffner & Bilek told Bandwidth Beat. "As you know, (information) is coming out in drabs and dribbles from Enron."
It could be several months before plaintiffs' attorneys get a chance to ask Enron officials those questions, Bilek said.
It's also too early to tell what potential damages plaintiffs could win, said Steven Schulman, an attorney with Milberg Weiss. "At this point, you can only talk about it in terms of (shareholder) losses, and the losses are in the billions."
Total losses will depend on the price each shareholder plaintiff paid for the stock and the price at which each shareholder later sold the stock.
Enron's share price topped out between $90 and $91 in the summer of last year. It set a 52-week low Oct. 26 at $15.04. That spread leaves plenty of room for losses.
Schulman told Bandwidth Beat that the record for losses in shareholder cases is $11 billion in a case involving Cendant Corp. (CD). Damages are usually a substantial portion of losses, Schulman said.
"Whether (the Enron case) is bigger or less, I couldn't opine," he said. "This is a big case, by any means."
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@dowjones.com

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


Ryan,

I made two styles of inc sheets for our future use.  One of them is an inc sheet, position manager, and profit/loss sheet in one...please note that the colors are a little busy and it may be simplified.  The other is broken out with the inc sheet similar to yours with a few additions and then the position manager and profit/loss sheet on a different worksheet.  See what you can do to improve them...Obviously neither are fully integrated yet as I am a bit rusty on my excel skills.  Especially when it comes to macros.

If you want I can come in later today and we can work on them together.

Bert Meyers


I just spoke with Karla Haislip, who heads up the Origination Group at VEPCO.  She was fairly upset about the last meeting Enron had with them and was adamant that our next meeting be dramatically different from the previous one.  I assured her that we would have the appropriate decision makers at the meeting who could intelligently discuss the various options.  I also told her that we were committed to working with them and that our COO, Louise Kitchen, would be calling Kevin Howell,  President of Dominion Energy Clearinghouse (their trading division).  She said she'd communicate that to Kevin.

We have agreed to meet early part of the week of November 5th.  Will give you feedback re. this after our meeting with Richard and Elizabeth on Monday.

Once again, Kevin Howell's contact details are as follows:
Work:	804.273.4848
Cell:	804.921.3726

- R


FYI.

Jim

----- Forwarded by James D Steffes/NA/Enron on 03/14/2001 08:22 AM -----

	"Ronald Carroll" <rcarroll@bracepatt.com>
	03/13/2001 05:08 PM

		 To: <jsteffe@enron.com>, <rsanders@enron.com>
		 cc: "Andrea Settanni" <asettanni@bracepatt.com>, "Jeffrey Watkiss"
<dwatkiss@bracepatt.com>, "Kimberly Curry" <kcurry@bracepatt.com>,
<jhartso@enron.com>, <mary.hain@enron.com>, <smara@enron.com>
		 Subject: Status of California Cases

Jim/Richard:

Per your request, I have attached a memo that describes the status of Enron's
participation in cases concerning the California investigation and related
market issues established since FERC's December 15, 2000 order, including
cases for which the date for intervention has not yet passed.  Please call me
if you wish to discuss or have any questions.

Ron

 - 0139365.01


As mentioned in yesterday's email, please find attached Project Summer's
Matrix.


This may sound like a silly question, but why?  Is this something Ben wants
Matt doing?

1-4 are all the CO's I know about.

I'm out today, but we can discuss it tomorrow, and I can explain my point of
view.

Kay

	From:  Rebecca Walker                           12/18/2000 10:18 AM

To: Kay Mann/Corp/Enron@Enron
cc:

Subject: LM 6000 Documentation

Kay

Have you had a chance to collect the following information for Matt Tezyk:

The free storage letter from GE
Any correspondence between GE and you relating to all 24 turbines
Any change orders in addition to #1-4
Documentation on any other deals we have made with GE

Please let me know if I can help with this.  If possible, I'd like to get
this information to Matt some time early this week.

Regards,
Rebecca


As a reminder...there are several pieces of equipment that are set up on the 30th Floor, as well as on our floor, for the Disaster Recovery Team.  PLEASE DO NOT TAKE, BORROW OR USE this equipment.  Should you need to use another computer system, other than yours, or make conference calls please work with your Assistant to help find or set up equipment for you to use.

Thanks for your understanding in this matter.

T.Jae Black
East Power Trading
Assistant to Kevin Presto
off. 713-853-5800
fax 713-646-8272
cell 713-539-4760


Would we want to invite Wood to participate?

Wednesday 08/23/2000

     Texas lawmakers heard reassuring words from the top state regulator
yesterday
that Texas will not experience a generation shortfall in coming years or the
wholesale market price spikes similar to those in California this summer.
     Public Utility Commission of Texas Chairman Pat Wood pointed to
sufficient
generation already online to cover 2000 peak summer demand an additional 9,655
MW
slated to hit the grid by 2002 that will amply meet current load growth
projections.
     The subject of energy prices is of particular interest as Texas launches
a
statewide pilot program in eight months, a precursor to full-blown competition
starting Jan. 1, 2002. Texas regulators said candidly they hope to profit from
mistakes identified in California's move to a retail electric market. While
California has quickly retired much of the debt associated with stranded
costs,
restructuring has been fraught with problems.
     Three problems mentioned concerning the California plan include
insufficient
generation being until two years ago, insufficient participation by
non-utility
players and, most recently, naturally short utilities having to pay daily
clearing
prices at the California Power Exchange that might have been gamed by other
utilities. Under questioning by eight lawmakers, Wood deflected each question
with
answers designed to calm consumer and industry fears that a repeat of
California is
possible in Texas.
     Wood said without hesitation that Texas is benefiting from other states'
forays
into a competitive marketplace. Texas will not experience California's
difficulties
because its rules have been written slower and with participation from all
industry
participants -- consumer groups, investor owned utilities, public power
entities,
independent power producers and environmental concerns, he said.
     Wood described an East Texas utility without generation as being in a
similar
situation as beleaguered San Diego Gas & Electric. The key distinction is that
the
utility has entered into long-term contracts to cover its obligations and
forecast
needs removing it from being susceptible to price swings during periods of
high
price volatility. The utility, Wood said, has even experienced a per kilowatt
decrease over the last three years from near 8 cents/kWh to near 4.5 cents.
     Texas ratepayers can rest easier than Californians because Texas moved
aggressively to adopt a "pro-generation atmosphere," Wood said.
     Texas and the nation's growing dependence on natural gas to fuel most of
the
large generation projects currently permitted or under construction caused at
least
some concern to one lawmaker. "I'm a little concerned about all our eggs being
put
in the natural gas basket," state Sen. David Sibley, one of the leaders of the
restructuring effort in Texas, said. Wood responded that coal may again come
into
favor if gas prices stay high. "There will be a market response at every level
of
natural gas," Wood said.
     Wood concluded his by describing microturbines and distributed generation
as
vital in helping Texas avoid generation shortfalls and price explosions. "This
is
our future," Wood said, pointing to distributed generation as being able to
circumvent existing transmission constraints. "That's why I call it the silver
bullet," he ended.
     Wood testified before the Electric Restructuring Legislative Oversight
Committee in a road show put on by the Texas Legislature in Houston, one of
several
cities to host the hearings.      RC


"The only things I need from anyone is love and respect and anyone who can't
give me that has no place in my life"


Shirley,

Iris  took another job.

Vince

Shirley Crenshaw
07/20/2000 03:46 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Re: Re[10]: Greetings from London (to Enron)

Vince:

Since Teresa is no longer here was anything every done about this?  Do
you still want to?

Thanks!

Shirley

Vince J Kaminski
06/16/2000 10:14 AM
To: Teresa Bien/Corp/Enron@Enron
cc: Vince J Kaminski/HOU/ECT@ECT, Shirley Crenshaw/HOU/ECT@ECT
Subject: Re: Re[10]: Greetings from London (to Enron)

Teresa,

I would like to invite Iris for an interview in Houston.
She works currently in London Can you call her
and ask when she is planning to visit the States.
We could pay the airfare from a location in the States.

I would hate to pay the 1st class ticket from London to Houston,
though I would go for it, if necessary (I don't
want a candidate to think that we are that cheap).
Business class is a standard
for business related, cross-Atlantic flights.

I would be more comfortable if you could negotiate this issue.

Thanks

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 06/16/2000
10:13 AM ---------------------------

Vince J Kaminski
06/12/2000 03:51 PM
To: iris.mack@bnpparibas.com @ ENRON
cc: Vince J Kaminski/HOU/ECT@ECT
Subject: Re: Re[10]: Greetings from London (to Enron)

Iris,

At this point it's my group: Research, i.e. Quantitative Modeling.
Please, let me know what your interests are and I shall try to line up
other groups for the interview.

Vince

iris.mack@bnpparibas.com on 06/09/2000 02:33:50 AM
To: Vince.J.Kaminski@enron.com
cc:
Subject: Re[10]: Greetings from London (to Enron)

Hi,

     I will be out of the country until Wednesday afternoon - London time.
Maybe we can chat then.

     Also, could you please tell me about the group(s) that are interested in
speaking with me.

Thanks,
Iris

Internet

From:     Vince.J.Kaminski@enron.com on 06/06/2000 20:31 GMT

To:  Iris MACK

cc:  Vince.J.Kaminski

bcc:

Subject: Re: Re[8]: Greetings from London (to Enron)

Iris,

Leaving for Ca in a few minutes. I shall get back to you Monday.

Vince

iris.mack@bnpparibas.com on 06/06/2000 10:36:46 AM

To:   Vince.J.Kaminski@enron.com
cc:
Subject:  Re[8]: Greetings from London (to Enron)

Hi,

     Thanks for your email.  Begining of July - what about July 4th week?

     Could you give me a bit more info regarding the best days for you and
your
colleagues.

Thanks,
Iris

Internet

From:     Vince.J.Kaminski@enron.com on 06/06/2000 14:29 GMT

To:  Iris MACK

cc:  Vince.J.Kaminski

bcc:

Subject: Re: Re[6]: Greetings from London (to Enron)

Iris,

The beginning of July would be better for us. Please, let me know what
is your availability.

Vince

iris.mack@bnpparibas.com on 06/06/2000 02:30:49 AM

To:   Vince.J.Kaminski@enron.com
cc:
Subject:  Re[6]: Greetings from London (to Enron)

Hi,

     Thank you for your email.  How many days do we need?

     I have checked my calendar.and think that I should be able to come on
Monday June 19th (Tuesday June 20th - if you need more than one day)..

     I can fly from London to Houston during the following weekend to
arrive in
time for Monday morning.

     Let me know if these days are good for you and your colleagues.

Regards,
Iris

Internet

From:     Vince.J.Kaminski@enron.com on 25/05/2000 18:33 GMT

To:  Iris MACK

cc:  Vince.J.Kaminski

bcc:

Subject: Re: Re[4]: Greetings from London (to Enron)

Iris,

We can invite you for an interview to Houston.

What would be a  the time  for you?

Vince

iris.mack@bnpparibas.com on 05/25/2000 11:32:04 AM

To:   Vince.J.Kaminski@enron.com
cc:
Subject:  Re[4]: Greetings from London (to Enron)

Hi,

     Thank you for your prompt response.  I am interested in any contacts
you
may have in your rolodex.

     Also, I would be opened to talk to Enron as well.  Please let me know
more
details.

Kind regards,
Iris

Internet

From:     Vince.J.Kaminski@enron.com on 25/05/2000 16:19 GMT

To:  Iris MACK

cc:  Vince.J.Kaminski, Stinson.Gibner, Grant.Masson,
Pinnamaneni.Krishnarao,
     Vasant.Shanbhogue

bcc:

Subject: Re: Re[2]: Greetings from London (to Enron)

Iris,

I shall go through my Rolodex and try to find some good leads for you. I
left
investment banking 8 years ago and this field changes very fast.

Alternatively, would you be interested in a company like Enron
or another energy company in Houston?

Please, let me know.

Vince

iris.mack@bnpparibas.com on 05/25/2000 09:20:01 AM

To:   Vince.J.Kaminski@enron.com
cc:
Subject:  Re[2]: Greetings from London (to Enron)

Hi,

     How are you?  Thank you kindly for your email.  Sorry I have not
responded
sooner.

     Currently I am working in Derivatives Structured Products and Risk
Management at BNP Paribas in London.  Although I currently enjoy living and
working in London, I may need to return to the states - because of my
mother's
failing health.

     Do you know of any good contacts at investment banks that I may
forward my
details to?

     For your information, I have attached my CV.  (Please see attached
file:
Iris Marie Mack.doc).

     Thank you in advance for your time and consideration.

Kind regards,
Iris Mack

44 (0)20  7595 8665 (work)
44 (0)20  7229 9986 (home)

(See attached file: Iris Marie Mack.doc)

Internet

From:     Vince.J.Kaminski@enron.com on 04/04/2000 15:03 GMT

To:  Iris MACK

cc:  Vince.J.Kaminski

bcc:

Subject: Re: Greetings from London (to Enron)

Iris,

Please, feel free to give me a call when you have a few minutes.
I shall be glad to chat with you.

Vince

iris.mack@paribas.com on 03/30/2000 02:24:27 AM

To:   vkamins@enron.com
cc:   denis.autier@paribas.com
Subject:  Greetings from London (to Enron)

Dear Dr. Kaminski,

     How are you?  It was nice to meet you at the Real Options conference
in
NYC.

     I was intrigued by some of the comments in your conference talk.  In
particular, by your use of real options to hedge financial options.  This
is
something I am interested in as well.

     When you have some time, could we chat about this topic in a bit more
detail?

     Thanks for your time and consideration.  Hope to hear from you soon.

Regards,
Iris Mack

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

This message is confidential; its contents do not constitute a
commitment by BNP Paribas Group* except where provided
for in a written agreement between you and BNP Paribas Group*.
Any unauthorised disclosure, use or dissemination, either
whole or partial, is prohibited. If you are not the intended
recipient of the message, please notify the sender immediately.
*BNP Paribas Group  is a trading name of BNP SA and Paribas SA

Ce message est confidentiel; son contenu ne represente en
aucun cas un engagement de la part du groupe BNP Paribas*
sous reserve de tout accord conclu par ecrit entre vous et le
groupe BNP Paribas*. Toute publication, utilisation ou diffusion,
meme partielle, doit etre autorisee prealablement. Si vous n'etes
pas destinataire de ce message, merci d'en avertir immediatement
l'expediteur.
*Le groupe BNP Paribas est le nom commercial utilise par BNP SA et Paribas
SA

(See attached file: Iris Marie Mack.doc)

(See attached file: Iris Marie Mack.doc)

(See attached file: Iris Marie Mack.doc)

(See attached file: Iris Marie Mack.doc)

 - Iris Marie Mack.doc


Shirley,

11:00am CA-time is fine (1:00pm TX-time).
I'll be at 650 725-5525.

My cell phone number is 650 796-8163.
Please call me there if plans change.

Thanks,

Nick

Shirley.Crenshaw@enron.com wrote:
>
> Hello Nick:
>
> I agree  e-mail is much easier.
>
> There is a two-hour time difference between Calif and Texas, i.e., 1:00 pm
> Texas Time - 11:00 am Calif time.
>
> Would tomorrow at 11:00 am Calif time be ok with you (1:00 pm Texas)?
> This time is fine for Vince, Tom Gros and Stinson Gibner.
>
> Can they call you and if so, what number?
>
> Please let me know.
>
> Thanks!
>
> Shirley
> 713-853-5290
>
> Nick Bambos <bambos@stanford.edu> on 03/16/2000 12:28:58 PM
>
> To:   Shirley.Crenshaw@enron.com
> cc:   bambos@stanford.Stanford.EDU
> Subject:  Re: Visit to Enron
>
> Shirley,
>
> It's easier to communcate by e-mail, since I am moving from
> meeting to meeting (but I have the laptop always with me).
>
> Please give me a phone number that I could call tomorrow.
> What is the time difference between California and your
> location? I think it's 2 hours (CA->TX) - is that right?
>
> I can do the conference call any time from 9-11 CA time.
> Would that be OK on your side?
>
> Thanks,
>
> Nick
>
> Vince.J.Kaminski@enron.com wrote:
> >
> > Nick,
> >
> > We can close the loop on our commitment to support the research projects
> > before your visit to Enron.
> >
> > My assistant, Shirley  Crenshaw, will call you to set up a conference
> call
> > with me, Stinson Gibner,
> > and Tom Gros from Enron Broadband Services to discuss all the isssues.
> > Friday this week would work for
> > both Tom and me. I think we need about 15 minutes.
> >
> > Vince
> >
> > P.S. Shirley, Nick's phone number is 650 796 8163 (cell), 650-725-5525
> > (office).
> >
> > Nick Bambos <bambos@stanford.edu> on 03/12/2000 05:32:35 PM
> >
> > To:   Vince.J.Kaminski@enron.com, bambos@stanford.Stanford.EDU
> > cc:
> > Subject:  Visit to Enron
> >
> > Hello Vince,
> >
> > It was nice seeing you at Stanford and many thanks for the lunch
> > we had together. I really enjoyed our discussions, both at the
> > technical level and otherwise.
> >
> > I promised to send you an e-mail regarding possible dates for
> > a visit to Enron. I delayed it for a week till my schedule was
> > clearer. Let's see if we can get a match with your schedule -
> > mine is rather terrible:
> >
> > Friday, 21st of April looks good. But April 23rd is Easter
> > Sunday, so that may make it difficult for some people at Enron
> > to be around. Let me know if that is the case. I am willing to
> > visit then, because the week after that I am scheduled to be in
> > Japan and in the previous weeks I am all committed on Fridays.
> >
> > Friday, 19th of May is the next possibility, but this probably
> > is too far out. The main problem is that I am operating within
> > a window of opportunity for attracting top students for this
> > research. This window closes by the end of April, and it would be
> > important for the student support funds to be in place then, so
> > that I can make hard commitments to students and attract top
> > talent. I am already reviewing files of students who have
> > approached me for PhD advising, and I am in a mode of doing "soft
> > commitments to star-level students" to get this research and its
> > potential on their radar screen. Top students are highly sought
> > after by advisors and I want to be an early player in this
> > competition.
> >
> > Does my visit to Enron have to happen before we can set up the
> > project and student support at Stanford? If so, doing it before the
> > end of April is important for getting top people. If the visit can
> > happen after we get the ball rolling, then we can schedule it in May.
> > I assume there will be multiple visits both ways when the project gets
> > going. Please let me know what you think.
> >
> > Best Regards,
> >
> > Nick


---------------------- Forwarded by Don Miller/HOU/ECT on 10/28/2000 02:30 PM
---------------------------

"Miller, Scott" <Scott.Miller@DPLINC.com> on 10/27/2000 04:07:04 PM
To: "'Don.Miller@enron.com'" <Don.Miller@enron.com>
cc:
Subject: RE: Scheduling of Meeting

Would you please email me the list of names of the ENRON participants in our
conf. call and the areas they represented.

Thanks

Scott

> -----Original Message-----
> From: Don.Miller@enron.com [SMTP:Don.Miller@enron.com]
> Sent: Wednesday, October 25, 2000 4:32 PM
> To: HGPMULLINX@aol.com
> Cc: Chris.Norris@enron.com; rnewlin@enron.com; Jeffrey.Keenan@enron.com
> Subject: Re: Scheduling of Meeting
>
>
> Thursday, the 26th.
>
> Time 1:30 -3:30 pm (CST)
>
>      888-380-9636
>      code# 840019
>
> If you have problems, please call me at 713-412-8967 (cell).
>
> Thanks,
>
> Don Miller
>

*** CONFIDENTIALITY NOTICE ***

This electronic mail message and any attachments to this electronic mail
message contain confidential information belonging to the originator, and may
be attorney client privileged or constitute inside information.  It is
intended only for the use of the individual(s) listed as the recipient(s).
If you are not one of the intended recipient(s), you are hereby notified that
any disclosure, copying, distribution, or the taking of any action in
reliance on the contents of the electronically mailed information is strictly
prohibited.  If you have received this electronic mail message in error,
please forward the electronic mail message to security@dplinc.com and then
remove all traces of the electronic mail message from your system.

*** The Dayton Power & Light Company. ***


---------------------- Forwarded by Liz Bellamy/NA/Enron on 10/27/2000 11:37
AM ---------------------------

Royal_B_Edmondson@reliantenergy.com on 10/27/2000 11:15:30 AM
To: lbellamy@enron.com
cc: janet.h.wallis@enron.com, troy_a_benoit@reliantenergy.com

Subject: Nov 1 st Entex Nom

As promised our Nov 1 noms are attached...let us know if you need anything
...lets hope for some weather....

(See attached file: HPL-Nov.xls)
 - HPL-Nov.xls


I'm sending my comments to Thomas Alterson within the hour.  He is not the
lawyer.

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

	Sheila Glover
	02/22/2001 08:25 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Ellen Su/Corp/Enron@Enron
		 Subject: J.P. Morgan Futures Inc. ("JP")

SARA,
Notes below.  Gary is going to an offsite meeting with JP Morgan next week
and has requested that he would like this in place when he goes.
Many thanks. Sheila
---------------------- Forwarded by Sheila Glover/HOU/ECT on 02/22/2001 08:25
AM ---------------------------
From: Sara Shackleton on 02/21/2001 04:43 PM
To: Sheila Glover/HOU/ECT@ECT
cc:
Subject: J.P. Morgan Futures Inc. ("JP")

Sheila:

Just a few questions about this futures agreement:

(1)  Is it OK for JP to combine our orders with orders of other clients and
JP's affiliates? YES
(2)  Is it OK (after we deposit property into our account) for JP to return
"property of like or equivalent kind or amount"? NO
(3)  Do you want to agree to an interest rate (on customer funds) upfront or
only "as agreed from time to time"? I WOULD LIKE TO AGREE TO AN INTEREST RATE
UPFRONT. (EG. FED FUNDS). CAN WE TAKE A LOOK AT PRU, CARR AND CSFB futures
agreements TO SEE WHAT IS MARKET?

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


---------------------- Forwarded by Susan M Scott/HOU/ECT on 04/18/2000 10:46
AM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  Lisa.A.Meador@chase.com                           04/14/2000 08:37 AM

To: joemeador@aol.com, bath@dynegy.com, jesbateman@aol.com, sscott5@enron.com
cc:
Subject: FW: Century's best pictures

 Subject: FW: Century's best pictures

> -----Original Message-----
> From:   patti@thehealthmanagementacademy.com
> [SMTP:patti@thehealthmanagementacademy.com]
> Sent:   Thursday, April 13, 2000 2:18 PM
> To:     Galeana Younger Woodson; Allison Dreeben Zeller; Raleigh Trumbo;
> Stephanie Hale; Kevin Pape; Bryan Pape; Judy Pape; Keri Moses; Josie
> Meador; Julie McSween; Tifini Kiselis; Per Huge-Jensen; Carrie Haugen;
> Brandon Grant; Boyd B. Haugen; Tamara dybala; Neal Dunn; Gina Dillard;
> Robin DeWees; Edward & Robin DeWees; Dottie Cooper; Tonya Young Bottoms;
> Haley Beckel; Jimmy Bartz; Cindy Bartz; Elizabeth Archer; Kelly Aaron;
> Gary Bisbee
> Subject:     FW: Century's best pictures
>
> Pretty cool.  Enjoy. <<FW: RE: FW: Century's best pictures>>

Message-ID: <65CDFBEFBBA8D11198E90000F6B0ACEE321455@ntascsg22.intranet.hdr>
From: "Schroller, Aimee" <ASchroll@hdrinc.com>
To: "'Kimberly (work)'" <kkeller@bracepatt.com>
Subject: FW: RE: FW: Century's best pictures
Date: Thu, 13 Apr 2000 08:17:32 -0500
MIME-Version: 1.0
X-Mailer: Internet Mail Service (5.5.2448.0)
Content-Type: application/msword;  name="CENTURYBESTPICS_1.DOC"
Content-Transfer-Encoding: base64
Content-Disposition: attachment;   filename="CENTURYBESTPICS_1.DOC"

 - CENTURYBESTPICS_1.DOC


Gentlemen,

We have revised the option agreement to reflect most of your suggested
changes.  Please advise if the attached is acceptable.

Thank you,

Kay


Ken, Mark, and Greg:  a thoughtful piece regarding Dabhol by The Hindu.  Jim

 -----Original Message-----
From: 	Leach, Doug
Sent:	Tuesday, October 16, 2001 9:21 AM
To:	Lundstrom, Bruce; Walls Jr., Rob; Derrick Jr., James
Subject:	FW: Article sent from The Hindu

fyi

 -----Original Message-----
From: 	thehindu@admin.hinduonnet.com@ENRON
Sent:	Tuesday, October 16, 2001 8:43 AM
To:	undisclosed-recipients:;@ENRON
Subject:	Article sent from The Hindu

An interesting article.  Could it happen?
=============================================================
This article is emailed to you by tushar s. dhruv ( tushar.dhruv@enron.com )
=============================================================
Source: The Hindu (http://www.hinduonnet.com)

Dabhol and the do nothing Government

By Prem Shankar Jha

Ever since the Vajpayee's Government came to power more than two
and a half years ago, the economy has been sliding relentlessly
into the deepest recession it has ever known. In the nine months
since December industrial growth has averaged 1.7 per cent. The
decade when it averaged 9 per cent and the months, only five
years ago, when it touched 16.2 per cent, are now but a distant
memory. Consumer demand was utterly flat before the September 11
terrorist strikes in the U.S. It has now shrunk dramatically -
vehicle sales dropped by 20 percent in September and colour TV
sets registered a growth of a measly 3 to 4 per cent. With no
demand to power it, inflation, measured by the consumer price
index, has fallen almost to zero. The share market is dead and
there is no fresh investment. Employment in the organised sector
is shrinking in absolute terms for the first time in human
memory.

In the past three years two million new job seekers have tried to
find a place, however humble, in the organised sector of the
economy but been turned away. By 2004, the number will have risen
by another three million. But Mr. Yashwant Sinha is confident
that a good monsoon will revive demand and by itself solve all of
the country's problems.

But one recent event highlights the government's paralysis more
sharply than any ream of statisitcs can ever do. This is its
failure to react to the defeat in a London Consumer court of the
Maharashtra State Electricity Boards's attempt to foil Enron's
bid to take it before an international arbitration court by
claiming that a case was pending before an Indian court
challenging the arbitration clause in the power purchase
agreement.

The London Court correctly maintained that just as a government's
international obligations as defined by the Treaty or the
agreement supercede its obligations under domestic law,
proceedings in an international court must take precedence over
those in a domestic court. The way has, therefore, been cleared
for India to face the humiliation of being dragged before an
international tribunal for a breach of it contractual
obligations.

Given the fearsome proficiency of Enron's lawyers, both those
whom they retain and those who drafted the power purchase
agreement, it is virtually a foregone conclusion that the MSEB
will lose the case. If that happens, then by a conservative
estimate, India will have to pay around $5 billion, in costs and
damages. In addition it will have to spend a little more to
complete phase II of the project. Thus in the end the project is
likely to cost not $3 billion but more like $5.2 to 5.4 billion.
For much of the year or more that this demeaning dispute has
dragged on, the Centre played ostrich and pretended that this was
simply a dispute between a State Government and a private
company, and it had no say in the matter. That pretext in any
case wore thin when New Delhi refused to honour its counter-
guarantee after the MSEB stopped paying its monthly dues. But
today it has been exposed for the hollow sham it was because
neither the MSEB nor the Maharashtra Government is even capable,
let alone willing, to pay such an enormous penalty. So the bill
will, inevitably land at the Centre's door. And that means the
taxpayer's door.

The Centre will have no option but to pay. But having done so,
will it then gift the project to the Maharashtra government? The
answer, obviously, is no. What it will be forced to do is
transfer it to the National Thermal Power Corporation to complete
and operate. But since no one can possibly run a $5 billion power
plant generating 2,100 MW of power profitably, the NTPC too will
insist on the capital value of the project being substantially
written down first. Judging from the offers that the Tata
Electric Company and the Bombay Suburban Electricity Supply
Company (BSES) were making to Enron, the written down value will
not exceed $2 billion. Thus, whichever way we look at it, the
country will end by paying for a Dabhol-size power plant ($3
billion) without getting a single watt of electricity or for that
matter anything else) in return.

None of the above criticism is intended to deny that Enron
probably did gold plate the Dabhol project once the Narasimha Rao
government agreed to price its power on a cost-plus basis. Nor is
it intended to mitigate the criticism of the Rao government that
had it only brought the Maharashtra government and more
particularly the MSEB into the negotiations from the beginning
the latter's inability under law to pay backup charges at more
than twice the rate being demanded by public sector power plants
would have been exposed long ago.

But the mistakes of the past cannot in any circumstances justify
even greater mistakes in the future. For better or for worse, the
Enron deal was struck, and it was struck not once but twice. As a
serious, responsible government that knows the importance of
honouring one's word in a world where contract is king, the
Vajpayee Government must honour the country's contractual
obligations. This does not in any way preclude its trying to
alter its terms by negotiation to avoid pitfalls that it did not
see, but by definition all future changes must be by mutual
consent.

The changes that Enron will accept and will make Dabhol's power
affordable, are known to all. As the 1995 Renegotiating Committee
and the Godbole Committee recommended, the Government should buy
the $800 million LNG regasification plant and turn it into a
separate company that can supply gas to all the current and
future users on the west coast. In fact, it could go one better
and bring in a foreign strategic partner to invest in and manage
the plant. This is entirely feasible because its installed
capacity is more than twice what Dabhol is likely to need. This
will bring down the capital cost, upon which backup charges and
cost per unit of power will be calculated, to $2.2 billion.

Second, the Central Government should buy 30 per cent of the
equity in Dabhol from the promoters. This was negotiated with the
1995 committee but the MSEB could not raise the funds to do so.
This will bring down the cost that has to be serviced in foreign
exchange to $1.9 billion and the debt portion whose servicing
represents a fixed charge in foreign exchange to $1.2 billion.

The Centre could also follow up a suggestion made by the chairman
of BSES to convert a part of the foreign exchange into rupee
debt. That will reduce further the vulnerability of electricity
tariffs to changes in the exchange rate. With the price of oil
having fallen (for India) to around $20 a barrel, these changes
will bring down the cost of Dabhol's power at 90 per cent
capacity utilisation own to below Rs. 2.40 a unit. This will make
it entirely viable, especially if Maharashtra and the
neighbouring states agree to make a marginal increase in the
average power tariff or are able to bring down power theft and
reduce subsidies to the pseudo-rural sector.

The right course for the centre even at this late stage will be
to take over the project from the MSEB, renegotiate it with
Enron, or if Enron wants to opt out, then buy the project from it
at cost and make the above structural changes on its own before
handing it over to the NTPC. Getting dragged to court will
neither solve the problem of paying for Dabhol's power nor answer
the more basic question - how can any electricity grid add new
power plants to itself without raising the average tariff it
charges for electricity.

Copyrights: 1995 - 2001 The Hindu

Republication or redissemination of the contents of this screen are expressly
prohibited without the consent of The Hindu


What a start to the 2000 United Way Campaign!

We hope you enjoyed the kick-off festivities.  Now, it's time to HELP
MILLIONS by making your electronic pledge.  It's fast and simple.  Just click
on the United Way link http://unitedway.enron.com or go directly to Internet
Explorer or Netscape and type in unitedway.enron.com in the address field.
Either option should take you to Enron,s United Way 2000 Campaign site where
you should be able to make your pledge within minutes.

If you have any technical questions, please contact the Enron Helpdesk at
x31411, and for general United Way campaign questions please email Kathy
Mayfield.

Help Millions, Pledge Today!  Thank you in advance for your generosity!


Holden,

We are restricted in the number of people we can have listed as "receiving" PIRA reports.  Kathy Axford and Emily Butler will make sure that yiou get the reports you want.   Just sent them an email.

Thanks,
Kathy


Here you go.  We're only about 6 contracts off.

Talk to ya tomorrow.

Robin


James F. Nielsen

the F stands for Frederick

I received your faxes yesterday and will begin working on the letters.

	-----Original Message-----
	From: Causholli, Monika [mailto:Monika.Causholli@ENRON.com]
	Sent: Tuesday, November 20, 2001 7:12 AM
	To: Nielsen, James - COB
	Subject: RE: Fax the recommendation letters

	Jim,

	What is you middle name if you don't mind me asking you. I need
it to fill out the recommendation letter

	Monika

		-----Original Message-----
		From: Nielsen, James - COB
[mailto:NielsenJ@bus.orst.edu]
		Sent: Monday, November 19, 2001 10:12 AM
		To: Causholli, Monika
		Subject: RE: Fax the recommendation letters

		The fax number here is 541-737-4890.

			-----Original Message-----
			From: Causholli, Monika
[mailto:Monika.Causholli@ENRON.com]
			Sent: Monday, November 19, 2001 6:41 AM
			To: Nielsen, James - COB
			Subject: Fax the recommendation letters

			Jim,

			I was thinking that since I do not have enough
time to prepare the appplication process, it would be a good idea for me
to fax the recommendation letter forms to you first so you know what to
expect and maybe start writing. In the meantime, I will mail those forms
as well as envelopes because you have to retunrn those to me. The
envelopes would have to be signed across the seal.
			There will be a total of four schools that I am
applying to.
			   1- Yale
			   2- Boston College
			   3- University of Massachusetts
			   4- Bocconi University (Italy)

			Thanks,
			Monika

				-----Original Message-----
				From: Nielsen, James - COB
[mailto:NielsenJ@bus.orst.edu]
				Sent: Friday, November 16, 2001 4:24 PM
				To: Causholli, Monika
				Subject: RE: Information from University
of Colorado

				Hi -

				I would contact the other finance guys
here. Who knows, they may have some great leads. As far as the letter is
concerned, I would be happy to do it. Generally, however, each grad
school has a specific recommendation form that they want references to
fill out. So let me know after you get the required info from the
schools. Typically, students just send it to me as I will probably have
to submit it directly to the grad school people as they generally want
confidential letters.

				Jim

				-----Original Message-----
				From: Causholli, Monika
[mailto:Monika.Causholli@ENRON.com]
				Sent: Friday, November 16, 2001 11:37 AM
				To: Nielsen, James - COB
				Subject: RE: Information from University
of Colorado

				Jim,

				I did write to Eric Hughson about the
PhD program and I am waiting for his response.
				In the meantime can you write me a
recommendation letter. I know you don't like to do this but if you would
it would be great. I am planning to apply to about 3-4 schools for now.
I will mail the paperwork to you on Monday.
				Also, should I contact the other finance
professors at OSU trying to see what they can help me with?
				Thanks for all your help. I will keep
you posted.

				Monika

				-----Original Message-----
				From: Nielsen, James - COB
[mailto:NielsenJ@bus.orst.edu]
				Sent: Friday, November 16, 2001 12:29 PM
				To: Causholli, Monika
				Subject: FW: Information from University
of Colorado

				Hi Again Monika -

				Here is what I heard from my former
professor. If I were you, I would contact Eric Hughson about CU's PhD
program in Finance. It is worth a try.

				I will contact you if I hear about other
opportunities either for graduate study or employment opportunities.
Keep me posted.

				Jim

				-----Original Message-----
				From: Ron Melicher
[mailto:Ronald.Melicher@Colorado.edu]
				Sent: Friday, November 16, 2001 10:18 AM
				To: Nielsen, James - COB
				Subject: RE: Hello Old Friend

				Hi Jim,
				It has been a long time between
communications.  We no longer offer an MS in Finance (however, I believe
the Denver Campus does).  We admit only one or two new students in the
Finance PhD Program each year--thus it is very competitive.  Our Finance
PhD Program coordinator is Eric Hughson and he could be contacted at
Eric.Hughson@Colorado.EDU.  Unfortunately, I don't have any specific
recommendations.
				Ron
				PS--I also still like the teaching part
of the academic life and probably won't be retiring for another few
years.

				-----Original Message-----
				From: Nielsen, James - COB
[mailto:NielsenJ@bus.orst.edu]
				Sent: Thursday, November 15, 2001 2:49
PM
				To: Ronald.Melicher@Colorado.EDU
				Subject: Hello Old Friend

				Hi Ron -

				It certainly has been a long time since
we have communicated. I am glad to see that you have not yet retired and
either have I. Moreover, I don't have any plans to do so in the
immediate future as this job is so much fun.

				The reason I am writing is that a former
student of mine from Albania who works for Enron has been thinking for
some time that she would like to go back to school and get a Master's
Degree in Finance or PhD. Being a foreign student she needs to get some
sort of scholarship or assistantship. She graduated from OSU a year or
so ago and has been working at Enron since that time. Given what is
happening at Enron, I am not surprised that she has decided to go back
for a graduate degree.

				Our College of Business does not have
any graduate student assistantships and we also don't offer a master
degree in finance or PhD.  Monika is without a doubt one of the sharpest
students I have had in recent years. She is incredibly bright and works
very hard.

				Does CU still offer the masters degree
in finance and still offer student assistantships. If I recall, George
Carvel was working on a MS in Finance and had an assistantship under
Maurice Unger when I was going to CU. If so, can I give Monika your name
and have her contact and perhaps forward her resume to you. Or can you
put her in touch with the right person at CU?

				If CU does not have anything available
do you know of a few schools who might so that I can pass the
information on to Monika?

				Thanks for any help you can provide.

				Best regards,

				Jim

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Hi Marie and Tana,
Believe it or not, you are both right.There is no way any friend is going to
come between my friends in the Swap team and at EBS and me. I was definitely
with Kofi. In the bushes, trying to resolve some real trying issues. And the
two beautiful babes on my arms? My gorgeous friends, Tana and Marie. Wishes,
wishes,and more wishes. A guy can't get any luckier. I was in Anfoeta Gbogame
over the weekend, doing my loin cloth thing. I am back in Accra today, and
will be here until Wednesday. I will then be back in my village for a few
days to attend my dad's burial. I miss you all. I am looking forward to
seeing you soon.

Yao