yes,  I'm in Houston today and tomorrow and I am available any time except
for between 10:30 and 12 today

 -----Original Message-----
From:  Mann, Kay
Sent: Thursday, May 24, 2001 9:32 AM
To: Krause, Greg
Subject: Re: SDEC: Certosa Holdings Option Agreement

Don't know the answers. We need to visit with Herman Manis to get his buy-in
on an approach.  I have a call in to him on another transaction, so I'll
ask.  Are you in Houston today?

ckm

From: Greg Krause/ENRON@enronXgate on 05/24/2001 09:26 AM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: SDEC: Certosa Holdings Option Agreement

Does the first option need to expire or can we terminate prior to expiration
and concurrent with execution of a new option agreement?  I got a call from
the owner of Certosa Holdings pleading for help on reimbursement of those
legal fees.   If we are going to pay a flat fee and renegotiate this
agreement, I think we need to do so quickly.   Regardless, I need to tell
them something soon.  They are getting desparate.  I've a call in to Taffy
Milligan. AEW's assistant to locate the Shutts & Bowen invoice.

I understand we have engaged Shutts & Bowen in Tallahassee to review some
property tax issue.  Cound this be an avenue to avoid this on balance sheet
hard cost thang?

 -----Original Message-----
From:  Mann, Kay
Sent: Thursday, May 24, 2001 7:43 AM
To: Krause, Greg
Subject: RE: AEW's backup

Unless the first option expires (and the original premium is expensed), you
add the original payment to the renewal premium to determine the percentage.
If we can't beat the percentage game, we can have the land on the balance
sheet and that won't put the entire project on it.  Don't ask me to splain
that, because I can't.  If the land is going to be on the balance sheet, you
would think that it would be better to have $1.3 on than $4.2.  However, one
thing I don't know (haven't asked) is what the environmental restrictions are
with our financing vehicle.  I don't know if the land has to be clean before
it can go into the vehicle.  I can ask.  If it is required to be clean, then
you may be back to the $4.2 anyway.

Kay

PS.  Feel like Alice in Wonderland  yet?

From: Greg Krause/ENRON@enronXgate on 05/23/2001 07:14 PM
To: Kay Mann/Corp/Enron@Enron
cc: Kathleen Carnahan/ENRON@enronXgate

Subject: RE: AEW's backup

Yes we do want to renew the option through September of next year and we will
need to persuade them to lower the option premium.  Her is a thought:  the
land fill closure cost is approximately $2.9 million.  Could we create a new
option agreement that states that the strike price is $4.2 million ($1.3 the
original strike price plus the cost of land fill closure cost) so we could
pay an option premium of up to $210,000 (5% of $4.2 million).  At closing, we
reduce the purchase price by the costs yet to be incurred in the closing the
land fill.  Since Certosa Holdings will not start the closure until they are
assured that we will exercise the option if even then, the net cost to us
would drop back to  the original strike price.  Could we get this past the
accountants?

Only the memorandum of option was recorded.

 -----Original Message-----
From:  Mann, Kay
Sent: Wednesday, May 23, 2001 4:40 PM
To: Krause, Greg
Cc: Carnahan, Kathleen
Subject: RE: AEW's backup

I've skimmed it.  I see that the option expires August 9th.  Are we planning
to renew it?  If so maybe we can renew early and fix what we can to preserve
some optionality (no pun intended) and cover the fee issue.  Might take too
long to address the immediate issue.

I don't see anyway we can get around the balance sheet issue unless we let
the option expire and then reoption, but in that case the option payment
would have to be smaller (acct says an option of 5% creates a problem as it
would be considered a down payment).  Just fyi.

Kathleen, was the option recorded, or just a memo of option, or neither?  I'm
just wondering what is public info.

Herman is out of the office today, but I can discuss the fee issue to get his
vote.

More to come...

ckm

From: Greg Krause/ENRON@enronXgate on 05/23/2001 02:19 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: RE: AEW's backup

I think the invoice was for between $20,000 and $30,000, but I can't
remember.  AEW has the invoice.  This probably will not be the final as we
will need to work with them in discussions with DERM on delaying the landfill
closure and in moving jurisdiction of the project from CZAB to the County
Commissioners.   I think Shutts & Bowen (who may get stiffed by their client
if this deal blows up) and Certosa Holdings would be open to any suggestions
and we need to renegotiate the option anyway.  Shall I call and suggest this
this flat fee for retooling the option agreement to them or shall we do it
together?  I,m not sure I could explain to them acequately the idiosyncrasies
of our accounting requirements.

 -----Original Message-----
From:  Mann, Kay
Sent: Wednesday, May 23, 2001 2:00 PM
To: Krause, Greg
Subject: RE: AEW's backup

How much is it and should this be the final amount?  One thought I have is
that maybe we can retool the option agreement so that we pay them a flat fee,
which is enough to cover the expenditures.  Don't know if this works, but it
is one thought.  What do you think?

Kay

From: Greg Krause/ENRON@enronXgate on 05/23/2001 01:50 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: RE: AEW's backup

One more thing on the SDEC project:  According to the option agreement we
executed last October, we agreed to reimburse Certosa Holdings for actual
third party costs that they incurred in support of our necessary
applications, submittals and in seeking local approval.  Several weeks ago,
we recieved an invoice from Shutts & Bowen, attorney for Certosa Holdings
requesting reimbursement pursuant to the contract.  I forwarded this invoice
on th Ann Elizabeth not necessarily to pay for but to review considering this
whole soft cost hard cost discussion.  I recieved another call this morning
from Shutts & Bowen asking about the invoice.  What should I do?
 -----Original Message-----
From:  Mann, Kay
Sent: Wednesday, May 23, 2001 11:03 AM
To: Krause, Greg
Subject: RE: AEW's backup

Greg,

You can call me on whatever you have, including Midway, SDEC and Medley
Dunn.  If I have a problem getting to something, I'll find help.

Kay

From: Greg Krause/ENRON@enronXgate on 05/23/2001 10:50 AM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: RE: AEW's backup

Kay,

Ann Elizabeth did not provide a designated hitter for the South Dade Energy
Center (Dade Development Company LLC is Optionee, Certosa Holdings is
Optionor) nor did she provide one for tne Medley Dunn project.  I have been
told that the Dunns are considering backing off their ultimatums that they
gave Ann Elizabeth and I regarding taxes to the town and assumption of
enviromental liability.  Who do I talk to about the Dunn contract while Ann
Elizabeth is out?
 -----Original Message-----
From:  White, Ann Elizabeth
Sent: Tuesday, May 22, 2001 10:33 PM
To: gkrause@enron.com; Krimsky, Steven; Ben Jacoby/HOU/ECT@ENRON; Carnahan,
Kathleen
Cc: Milligan, Taffy
Subject: AEW's backup

Kay Mann is the designated hitter for the Pompano and Deerfied projects while
I'm on vacation.  I've given her a down load of the status of Greg and
Steve's projects.  Chris Boehler at A&K will be the designated hitter for
Midway.  I'm not going to check my voice mail while I'm gone but, if
necessary, here are the contact numbers while I'm gone.

Walter and Marlena Schilling  011-49-8218-89351 schilling.jun@freenet.de

Monika and Bernhard Steinacher 011-49-8232-8932 m.steinacher@schwabmuenchen.de

If you call, Walter and Bernhard and Bernhard's daughter, Susanne, speak very
good English.  Monika's isn't bad.  Marlena may get flustered and hang up on
you.

Best of luck at Deerfield and hope to see Pompano on track when I get back in
the office on June 11th.  Kay is planning on going to Florida on June 12 for
the moratorium hearing and the rezoning hearing.


Errol & Joey,

The post id for Friday's date (1304275) was manually pulled in.  I manually pulled in the post id for Monday (1306371) therefore, positions are in and var is being re-run.  To avoid manually pulling in the post ids in the future for this book,  the WHERE clause in the gas daily tab needs to be filled in with either "1=1" or "Region Code = DESK".  Please contact me if you have any questions.

Thanks,
Susan
x3-1462


We need to schedule a meeting to go over the NYMEX stuff.

Call me at 33102.

Thanks,
Chris


While situations arise where I might need some information on the status of
the various agreements, I generally would prefer to relie on the collective
competence of the experts (ie, yourselves) to get them resolved.  Therefore,
please remove me from these distributions unless outstanding situations arise.

Thanks and regards,
John

25/04/2001 14:51
Cheryl Nelson@ENRON
Cheryl Nelson@ENRON
Cheryl Nelson@ENRON
25/04/2001 14:51
25/04/2001 14:51
Sent by: Cheryl Nelson@ENRON
To: Theresa T Brogan/HOU/ECT@ECT
cc: John Greene/LON/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Sheila
Glover/HOU/ECT@ECT, Stephanie Panus/NA/Enron@Enron

Subject: Re: Cantor Fitzgerald & Co. executing broker agreement

I sent legal comments to Cantor Fitzgerald yesterday.

Cheryl Nelson
Senior Counsel
EB3816
(713) 345-4693

	Theresa T Brogan@ECT
	04/24/2001 10:17 AM

		 To: Cassandra Schultz/NA/Enron, Cheryl Nelson/NA/Enron@Enron, Stephanie
Panus/NA/Enron@Enron
		 cc: Sara Shackleton/HOU/ECT@ECT, John Greene/LON/ECT@ECT, Sheila
Glover/HOU/ECT@ECT, Mary Nordstrom/ENRON@enronXgate
		 Subject: Cantor Fitzgerald & Co. executing broker agreement

Cassandra and Cheryl,
 ENA has begun an executing broker relationship with Cantor Fitzgerald.  The
business purpose for establishing the relationship is because Cantor is a
market maker in illiquid convertible bonds.  This relationship is for
execution only.  All settlements will still occur through existing Prime
Brokers Goldman, Morgan and Bear.  The agreement is to be established for ENA
only.

Thanks,
Theresa


We have never confirmed a financial deal for this counterparty before, but just in case we do.  Will I need to have a special credit annex attached or would I just confirm them on our standard ISDA template?
 -----Original Message-----
From: 	Boyd, Samantha
Sent:	Wednesday, October  31, 2001 11:30 AM
To:	Adams, Laurel; Allen, Kimberly; Anderson, Diane; Bailey, Derek; Bell, Jean; Bell, Rebecca; Bowen, Bob; Brewer, Julie; Cason, Sharen; Cisneros, Celeste; Fischer, Jason; Garcia, Jorge A. ; Heaney, Gordon; Hundl, Kimberly; Murphy, Melissa Ann; Ornelas, Bianca; Piwetz, Stephanie; Rodriguez, Melissa; Seib, Dianne; Theriot, Kim S.; Whalen, Melinda; Williams, Tiffany; Brackett, Debbie R.; Bradford, William S.; Brown, Angela Y.; Campbell, Lesli; Conwell, Wendy; Curry, Ken; Espinoza, Veronica; Gonzalez, Veronica; Johnson, Rudwell; Landry, Shemeika S.; Lebrocq, Wendi; Mendoza, Nidia; Monterrey, Maribel; Moran, Tom; Ngo, Tracy; North, Carol; Otto, Randy; Radous, Paul; Rajaram, Aparna; Rohauer, Tanya; Sacks, Edward; Sonnonstine, Max; Vanek, Darren; Williams, Jason R (Credit); Campos, Anthony; Colbert, Marilyn; Crawford, Sharon; Ebow, Amber; Ellstrom, Diane; Gerard, Camille; Hare, Bill D.; Johnson, Cheryl; Lambert, Karen; Landau, Georgi; Lees, Lisa; Moore, Jason; Neuner, Dale; Reeves, Leslie; Richardson, Stacey; Rodriguez, Bernice; Schott, Samuel; Sever, Stephanie; Shivers, Lynn; Sietzema, Linda; Southard, Carrie; Bailey, Susan; Cook, Mary; Gray, Barbara N.; Heard, Marie; Hendry, Brent; Jones, Tana; Koehler, Anne C.; Leite, Francisco Pinto; Nelson, Cheryl; Panus, Stephanie; Sayre, Frank; Shackleton, Sara; St. Clair, Carol; Taylor, Mark E (Legal)
Subject:	Amendment Agreement - Royal Bank of Canada

We have received an executed Amendment Agreement dated October 9, 2001 to the ISDA Master Agreement between Enron North America Corp. ("ENA") and Royal Bank of Canada ("RBC") dated as of February 15, 1995.  This Amendment revises (1) certain definitions in the Credit Support Annex and (2) the notification information for ENA and RBC.

Copies will be distributed

Samantha M. Boyd
Senior Legal Specialist
Enron Wholesale Services
1400 Smith Street, EB3803
Houston, Texas 77002
Ph:  (713) 853-9188
Fax:  (713) 646-3490


Principles with edits received thus far.

Best,
Jeff


Almost pulled off the 4 tease yesterday.
I was robbed

Denver +3 350
Phili +3 350


Vince,

I appologize for shipping another version of the paper so soon after the
last.  However, my wife picked me up for some last minute shopping at noon
and I wasn't sure I would get back to this before leaving tomorrow.  The
only changes in the two documents related to a sentence or two in the intro
plus the addition of "Unused information" at the end of the document.  The
unused stuff is made up of notes I made from Hamel, some news stories,
press releases, and random thoughts.  We probably won't use any of this
stuff but I wanted you to have it just in case it might prove useful.

The challenge we face at this stage (and where I can most use your help) is
in documenting Enron's risk management functions in a meaningful way.  This
may be best done through examples or in some other way.  I think that our
audience would appreciate our including some numerical and detailed
examples (even if they are to be placed in boxes or sidebars that don't
interrupt the flow of the article.  If you'll make a pass at what you feel
is appropriate I'll gladly polish on the words as i try to learn about what
you are doing myself.

Vince, I really am enjoying this learning experience.  You guys make a
wonderful "lab".

Sally and I are driving to Louisiana to pick up her mom tomorrow and then
driving to New Orleans and back to Waco by Saturday.  However, I will check
in my e-mail regularly.

Your friend,

John

 - Enron Transformation Paper12_19_00.doc

John D. Martin
Carr P. Collins Chair in Finance
Finance Department
Baylor University
PO Box 98004
Waco, TX 76798
254-710-4473 (Office)
254-710-1092 (Fax)
J_Martin@Baylor.edu
web:    http://hsb.baylor.edu/html/martinj/home.html


Thank you very much.

Mike Grigsby


The 27th works for me also.  See you there.

Lisa

-----Original Message-----
From: Harshbarger, Robert [mailto:bharsh@puget.com]
Sent: Wednesday, June 13, 2001 10:40 AM
To: 'DEMPSEY, JERRY'; Ellingson, Mons; Fotiou, Demetrios; Grow, Lisa;
Holden-Baker, Susan; Smith, Chris; Tilghman, Carmine; Underwood, John;
Williams, Bill
Cc: 'Hackney, Mark'
Subject: Meeting

Based on what I've seen so far, looks like June 27th.

Based on that, I have tentatively booked a room 9:30 a.m. to 3:30 p.m. at
the PDX Conference Center, Portland, OR.  If you haven't been there before,
there's diagram/map at:

http://portlandairportpdx.com/web_pop/CONFER.HTM

Some of the items for an agenda:
*	Elimination of preschedule flag
*	Time table times refer to prevailing time of the sink/load control
area
*	Preschedule items
*	Real-time items

There are more specific items, I just haven't had enough coffee yet.  A real
agenda out next week.

Robert Harshbarger
Puget Sound Energy
OASIS Trading Manager
425.882.4643 (desk)
206.604.3251 (cell)


Mr. Kaminski,

I have attached a resume below I thought you might find of interest, it is
from a Business School acquaintance of mine, Denis Suvorov.  Denis is a
highly intelligent Ph.D. candidate at my former school and is currently
looking for opportunities within a research/modelling framework.  He has
significant academic experience working on Asset pricing models and after
speaking with Pavel Zadorozhny about his background and objectives, he
recommended I forward a copy of his credentials to you.

I hope this is suitable and would be of interest to you.

Thanks,
Matthew Frank


brian psiropoulos
478 w 13
eugene, OR 97401
psionotic@yahoo.com

To Mr. Ken Lay,

I'm writing to urge you to donate the millions of dollars you made from selling Enron stock before the company declared bankruptcy to funds such as Enron Employee Transition Fund and REACH, that benefit the company's employees, who lost their retirement savings, and provide relief to low-income consumers in California, who can't afford to pay their energy bills.  Enron and yourself made millions out of the pocketbooks of California consumers and from the efforts of your employees.

Indeed, while you netted well over a $100 million, many of Enron's employees were financially devastated when the company declared bankruptcy and their retirement plans were wiped out.  And Enron made an astronomical profit during the California energy crisis last year.  As a result, there are thousands of consumers who are unable to pay their basic energy bills and the largest utility in the state is bankrupt.

The New York Times reported that you sold $101 million worth of Enron stock while aggressively urging the company's employees to keep buying it.  Please donate this money to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings.

Sincerely,

brian psiropoulos


Attached is the template settlement agreement for the EPMI assignment transactions.  Bill and Tanya, can we get an updated copy of the transaction list (I think you may have identified some additional transactions since you ran the copy that I have in front of me).

Bill, has anyone discussed with you the "message" that these transactions may be sending to counterparties ...  you have probably already discussed this with Louise and John and others, but if not, we may want to make sure we are on the same page as to communications with counterparties before we get the ball rolling.

Travis C. McCullough
Enron North America Corp.
1400 Smith Street EB 824
Houston, Texas 77002
Phone:  (713) 853-1575
Fax:      (713) 646-8860


---------------------- Forwarded by Errol McLaughlin/Corp/Enron on 02/09/2001
09:25 AM ---------------------------

Jeffrey C Gossett@ECT
02/09/2001 09:26 AM
To: Darron C Giron/HOU/ECT@ECT, Errol McLaughlin/Corp/Enron@ENRON
cc:

Subject: Credit Report--2/9/01

It looks like these are all Darron's new guy and Laura.  Can you guys make
sure that everyone is using the correct CP name and the list provided by
confirms?

Thanks
---------------------- Forwarded by Jeffrey C Gossett/HOU/ECT on 02/09/2001
09:23 AM ---------------------------

From:  Veronica Espinoza @ ENRON
               02/09/2001 09:19 AM

To: Larry Joe Hunter/HOU/ECT@ECT, Bob Bowen/HOU/ECT@ECT, Kim S
Theriot/HOU/ECT@ECT, Melinda Whalen/CAL/ECT@ECT, Dianne Seib/CAL/ECT@ECT,
Janie Aguayo/HOU/ECT@ECT, Derek Bailey/Corp/Enron@ENRON, Kevin
Meredith/Corp/Enron@ENRON, Ellen Wallumrod/NA/Enron@ENRON, Celeste
Cisneros/NA/Enron@Enron, Diane Anderson/NA/Enron@Enron, Tiffany
Williams/NA/Enron@Enron, Cindy Feldman/CAL/ECT@ECT, Patricia
Boulanger/CAL/ECT@ECT, Linda Sietzema/CAL/ECT@ECT, Sharon
Crawford/CAL/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Tanya
Rohauer/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT,
Russell Diamond/HOU/ECT@ECT, Lesli Campbell/HOU/ECT@ECT, Nidia
Mendoza/HOU/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT, Kam Keiser/HOU/ECT@ECT,
David Baumbach/HOU/ECT@ECT, Errol McLaughlin/Corp/Enron@ENRON, Darron C
Giron/HOU/ECT@ECT, Walter Guidroz/NA/Enron@Enron, Leslie Reeves/HOU/ECT@ECT,
Veronica Gonzalez/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Jean
Bell/HOU/ECT@ECT, Ken Curry/HOU/ECT@ECT
cc:
Subject: Credit Report--2/9/01


can you do lunch friday

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


Please find attached a detailed briefing paper on the captioned order.  Ray
Alvarez


Greetings Mark:

Any interest?

Best,
Jeff

	"Daniel Douglass" <Douglass@ArterHadden.com>
	01/11/2001 03:18 PM

		 To: <jdasovic@enron.com>, <susan_j_mara@enron.com>
		 cc:
		 Subject: Eastern European Opportunity

Jeff and Sue,

I have a potential lead which may be of interest to Enron.  However, I don't
know if you have any interest in Eastern European projects.

Who would you suggest talking to with regard to a Bulgarian power plant
development?  It involves a 25 year requirements contract with the national
energy company, the retrofit of two existing units and building three new
hydro units.  Total around 450 MW.  Party with exclusive deal with government
wants to deal with an engineering company who could finance and do work ( @
$160 million).  Any suggestions on how to proceed?  My guess is that few
engineering companies are into financing these days, particularly in emerging
nations.  However, what are your thoughts/suggestions?

Thanks, and Happy New Year!

Dan


-----Original Message-----
From: Veronica Cherry [mailto:Veronica@preparedhunter.com ]
Sent: Monday, June 11, 2001 4:18 PM
To: Cherry, Beth
Subject: RE: Did you flood?
Has he tried to drive it?  If he got water over the seats, then the water got in his oil pan and his transmission oil case.
Get him to check his dip sticks and see if it looks kind of light brown on both.  If it does not look like the normal dark brown for oil, or lighter colored (not brown) for transmission then he got water in it.  It will ruin his car if he drives it with water in the oil or his transmission.
It sounds HIGHLY likely that he has more water damage than just interior.
How did Jay's co-worker die?
V
---------- Original Message ----------------------------------
From: "Cherry, Beth" <Beth.Cherry@enform.com>
Date: Mon, 11 Jun 2001 15:39:42 -0500
>It flooded over the seats -- we dried it out -- i don't know if he is going
>to get into a mess with insurance...
>
>someone that jay worked with died.
>
>i parked on a higher level than normal.
>
>no one in my office that i know of.
>
>i'll send you some pictures.
>
>b.
>
>
>
--
Veronica Cherry
HunterPro....for the Prepared Hunter!
--


Please excuse the long e-mail below - I knew we'd never get a chance to all
get together, and this is somewhat urgent as I have to complete the Finance
Committee presentation for the upcoming BOD meeting by the end of next week,
and it will include trading results for the 1st quarter, reported in
accordance with the risk management policy.  Due to issues noted below, this
may require immediate attention by your staff as we have a few short days to
come up with the best quality numbers we can.  I talked to Beth already, and
MRM met with Chris Abel's group to see if there was a short cut, but our
joint conclusion was that the business unit controllers need to be involved
in this process as you are the experts on your businesses and can apply the
best judgment to decide on the trading results to be reported to the BOD.
We'll probably need to go with our best estimate of 3/30 #s as of end of the
day next Tuesday or Wednesday at the latest.

As you recall, the February 12th BOD meeting resulted in a clarification that
the BOD approved trading limits were limits on the generic commodity groups
defined, and accordingly the trading results must be reported consistent with
that limit structure (management reporting can be different of course).
Chris Abel's global energy operations group has prepared a "RAC" DPR that
attempts to aggregate the commodity groups in accordance with the risk
management policy, so that top management and the BOD can see Enron's
exposure to individual commodities on a consolidated basis.    (A)  This DPR
will not impact actual sharing of P/L from a management reporting/business
unit perspective - this is purely for market risk management purposes and
reporting to the BOD.  But commercial management will need to review and sign
off on the RAC DPR and monitor limits accordingly, as these limits are at an
Enron level.

The specific trading results we need for the BOD presentation are the first
quarter P/L and average daily VaR, by commodity group.  The first RAC DPR
available is as of 3/30 - so while it has cumulative P/L, VaR is only as of
3/30.  (Note - we're also comparing to 1Q 2000, but we're not going to
attempt to resolve cross-commodity reporting for that period except at a high
level).

Your participation is needed in resolving: 1) cross-commodity reporting per
the new RAC DPR - both retroactively for the 1st quarter, and going forward,
and 2) ROVAR (return on average daily VaR by commodity group) for the 1st
quarter.  This aggregation of cross-commodity activity has been completed by
Chris as of 3/30, so he has what he believes to be P/L aggregated for the
quarter in accordance with the policy. What we don't have is VaR on a daily
basis as the first time it was calculated on an aggregated basis was on
3/30.  Obviously we're not going to be able to go back and calculate daily
VaR for the entire quarter by commodity group aggregated in this new manner -
especially within a week.  So it appears we'll need to "swag" average daily
VaR - by reviewing the cross commodity positions aggregated at 3/30, by
considering cross-commodity activity you're aware of that took place
throughout the quarter, and using our best estimate of the impact on VaR for
this cross commodity activity.

Due to this adjustment in historical reporting practices, we feel a certain
level of due diligence is required for us to  feel confident we're reporting
to the BOD in accordance with the policy. And since we only have a few days,
I thought a team approach to tackling the review would facilitate a prompt
resolution of material issues, and then you and Chris' group can work out
your processes and procedures on how to handle going forward as you see fit.
When you consider materiality, please involve your Market Risk contact -
while a transaction/position/book may not be material to gas or power, it may
be material to Global Products,  Weather, etc..

Would you please help us with the following:
? Confirm your review of Chris' aggregation on the RAC DPR at 3/30 (Chris'
staff can walk you through)
? are all the cross-commodity positions you're aware of being reported
correctly?
? is there other cross-commodity activity not present at 3/30 and
consequently not aggregated for the quarter's results, but actually present
during the first quarter and material? If so, estimate impact on P/L and
average daily VaR.
? we're not expecting an exhaustive search or analysis - perhaps you can
simply discuss this issue with the traders who handle this type of activity
to get a feel, and if they point on specific material transactions, we can
address those; you can determine best approach
? are there certain books in RisktRAC that have cross-commodity positions
imbedded/combined - either held currently or those that generated significant
VaR or P/L during the quarter?  Going forward these will need to be reported
separately to facilitate risk reporting, but in the next week what we need is
an estimate of the impact on the corresponding commodities, or a conclusion
that the impact is immaterial.
? Once you've reviewed the summary of cross commodity activity per the RAC
DPR and per your own knowledge, help us estimate the impact on the respective
commodities' average daily VaR for the quarter - you can discuss with your
market risk contact your recommendation on a reasonable "swag" approach.

After considering the information above, please provide your assessment on
whether you are in fact able to capture and report all the cross-commodity
activity, and if not, identify the issues involved and whether it is
something that market risk needs to address, or if it will simply take more
time to resolve the reporting details.

If you have other recommendations on how to get comfortable with the trading
results for the quarter, please feel free to pursue those.  I do not mean to
imply I know how to do your jobs, or that you're not doing them - I simply
want to coordinate with you to ensure the #s we report to the BOD are the
numbers you agree with, and that if they're not completely accurate given
recent implementation, that we are able to articulate and estimate the
potential misstatement, if any.  As you are the experts on your businesses'
results, I simply wanted to make sure I closed the loop with what we in MRM
understand regarding your reporting of the cross-commodity activity and
trading results and the application of the policy.

On a separate note, we need you to identify P/L related to special
transactions that flowed through the DPR, but do not really represent trading
activity - examples in the past are SFAS 125 transactions and other unique
gain/loss events - we're reporting 1Q 2001 and 1Q 2000, so whatever we can
recall about last year will also be considered. We will be sending you a
reconciliation from the DPR to the BOD package that we use to document any
special adjustments, and will discuss this with you to come to an agreement
on adjustments to the DPR reporting to derive true trading activity. These
adjustments should be minimal, but we'd like your input to conclude.

Thank you for your cooperation,

Regards,
Cassandra Schultz
x30429
713 858 2618 cell
936 321 2185 home

(A)  For example, North American Electricity limits represent Enron's
consolidated NA Electricity trading activity, without regard to which
business unit or commodity group actually executes the trades or holds
positions. So if Power has some gas positions for hedges or other reasons,
these gas trades need to be removed from Power VaR and P/L and combined with
Gas' VaR and P/L, etc..  Heating oil positions held outside Global Products
should be aggregated with Global Products; Global Products' positions in gas
and power should be aggregated with gas and power, with corresponding
adjustment to Global Products' results.


Enron Net Works LLC needs another NDA in place with the referenced company.
Any conflicts?


Sorry.  I forgot to attach the file with the overheads in the previous
message.

Dear class:

Here are the last group of overheads for the class.  There are a couple of
small changes (and an additional overhead) from what was placed earlier on
the web.

Barry Staw

 - Session 8 overheads97.doc


Thanks for your help.  I also left a message for Jeff because I was told that
he worked on the transaction.

The name "Compagnie de Papiers Stadacona" ("Stadacona") does not appear on
the corporate database so I cannot verify that it is an Enron-owned entity.

The only question is:  Can we book the FX trade in the names of Stadacona and
RMT?

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


Yes, does it still have your name on it??????

It looks like we are planning on getting there around 2:30 - 3:00.  Does that
fit in with your schedule?

Our cell phone number is (503) 757-7380

Rick

--- Mark.Guzman@enron.com
> wrote:
>
>sounds good.  Do you have my cell phone number?

_____________________________________________________________
http://www.osubeavers.com - The Official Athletic Site of Oregon State
Beaver Fans! Get your FREE email at --> http://mail.osubeavers.com!


Thanks Marie!

 -----Original Message-----
From: 	Heard, Marie
Sent:	Wednesday, October 24, 2001 8:26 AM
To:	Johnson, Cheryl
Subject:	Pacifica Papers Inc.

Cheryl:

We have received a certificate of amalgamation evidencing the amalgamation of Pacifica Papers Inc. with and into Norske Skog Canada Limited with Norske Skog Canada Limited being the surviving entity.  Credit is aware of this and has no problems.  I will forward copies of the documentation to you.  Let me know if you have any questions.

Marie


I sent this document back by fax.  BT

-----Original Message-----
From: Wailes M (Michelle) [mailto:MWailes@equilon.com]
Sent: Monday, September 10, 2001 9:52 AM
To: Tycholiz, Barry
Subject: FW: Car Repair

Barry, please excuse me if you have already received this message.  Our
email system was disrupted with a virus last week and it seems as if many
people did not receive the emails I sent on Wednesday.

> -----Original Message-----
> From:	Wailes M (Michelle)
> Sent:	Wednesday, September 05, 2001 4:01 PM
> To:	'Tycholiz, Barry'
> Subject:	RE: Car Repair
>
> I spoke to Poutous yesterday and they said you had picked up the car.  I
> paid them via the phone and they are supposed to send me the invoice.
> Please look this over and sign if you feel it is appropriate or let me
> know of any suggested changes.  If you wish to fax it back, my fax number
> is now 713-277-9616.
>
> 	 <<Car Repair.doc>>
> Thank you,
> Michelle
>
> -----Original Message-----
> From:	Tycholiz, Barry [SMTP:Barry.Tycholiz@enron.com]
> Sent:	Tuesday, August 28, 2001 6:14 PM
> To:	Wailes M (Michelle)
> Subject:	RE: Car Repair
>
> I don't know if I sent this to you or not.. I have made arrangements for
> my car to be repaired this thurs and fri. Can you contact the repair
> shop and make payment arrangements.  I have not had a chance to draft up
> a letter and if you had something in mind I am sure I will sign off on
> it..
>
> Thanks. BT
>
> -----Original Message-----
> From: Wailes M (Michelle) [mailto:MWailes@equilon.com]
> Sent: Wednesday, August 22, 2001 1:55 PM
> To: Tycholiz, Barry
> Subject: RE: Car Repair
>
>
> Barry,
> As you can imagine, I really do not want to have to file a claim with my
> insurance company.  Let's arrange this so that I pay Poutous directly.
> Let
> me know when you will be taking the car in and I can talk to them about
> the
> payment.  As you suggested, perhaps you can provide a letter regarding
> this
> and also fax me the estimate.  My fax number is 713-346-9590.
>
> Michelle
>
> > -----Original Message-----
> > From:	Tycholiz, Barry [SMTP:Barry.Tycholiz@enron.com]
> > Sent:	Tuesday, August 21, 2001 2:23 PM
> > To:	Wailes M (Michelle)
> > Subject:	RE: Car Repair
> >
> > Michelle.. I have received a written estimate for the car repair.... $
> > 775.00 - $ 800.00.  The company that I plan on using is Poutous Auto
> > Repair @ 713-524-4444 ( John).  You can contact him if you would like.
> >
> > I don't know what deductable you have but with this pretty modest
> > expense you may want to pay them directly.. I don't care one way or
> > another... but if it is easier on you and you don't want to claim...
> we
> > can make arrangements ourselves and I can provide you a letter or
> > something acknowledging same..
> >
> > Let me know.
> >
> > BT
> >
> > -----Original Message-----
> > From: Wailes M (Michelle) [mailto:MWailes@equilon.com]
> > Sent: Monday, August 06, 2001 11:55 AM
> > To: Tycholiz, Barry
> > Subject: Car Repair
> >
> >
> > Barry,
> >
> > I have spoken to my insurance agent.  Please take the car in for an
> > estimate
> > and let me know what they say.  After that I can work with the
> insurance
> > company to get them to do the rest of the coordination.
> >
> > Thank you.  I am sorry for the inconvenience and for the whole
> incident.
> >
> > Michelle Wailes
> > Equiva Services
> > SG&A Redesign Project Team
> > 713-277-9684
> > ELB 580M
> > email:  mwailes@equilon.com
> >
> >
> >
> > **********************************************************************
> > This e-mail is the property of Enron Corp. and/or its relevant
> affiliate
> > and may contain confidential and privileged material for the sole use
> of
> > the intended recipient (s). Any review, use, distribution or
> disclosure by
> > others is strictly prohibited. If you are not the intended recipient
> (or
> > authorized to receive for the recipient), please contact the sender or
> > reply to Enron Corp. at enron.messaging.administration@enron.com and
> > delete all copies of the message. This e-mail (and any attachments
> hereto)
> > are not intended to be an offer (or an acceptance) and do not create
> or
> > evidence a binding and enforceable contract between Enron Corp. (or
> any of
> > its affiliates) and the intended recipient or any other party, and may
> not
> > be relied on by anyone as the basis of a contract by estoppel or
> > otherwise. Thank you.
> > **********************************************************************


Sierra Pacific Suspends Dividend Because of Energy Crisis in Western States
The Wall Street Journal, 04/16/01

Wind Farms May Reap Profit as Britain Looks to Add Renewable Energy Sources
--- Seek Profits Out of Thin Air As Britain Pursues Renewable Energy
The Wall Street Journal, 04/16/01

Internet Rumor Mill Changes Layoff Process --- Companies Scramble to Keep
Their Plans Off the Web
The Wall Street Journal, 04/16/01

Time Seems Bright for Solar Power / Big companies bring financial clout to
field
The San Francisco Chronicle, 04/16/01

Small Tech Rally Precedes Earnings Reports from Silicon Valley
San Jose Mercury News - California, 04/16/01

A REBUKE FROM ENRON'S BOSS
Business Week, 04/16/01

BUSH TAPS DEFENSE INC. AGAIN
Business Week, 04/16/01

Godbole panel report a boost for MSEB
The Times of India, 04/16/01

TUs gear up for April 25 Maharashtra bandh
The Times of India, 04/16/01

It happens only in Indiya
Business Standard, 04/16/01

NAPSTER-LIKE THREAT PUTS MOVIE INDUSTRY ON GUARD DIVX LETS USERS COPY AND
TRADE FILMS ONLINE
Chicago Tribune, 04/16/01

Enron Restarts MTBE Plant.
The Oil Daily, 04/16/01

Panel Suggests Enron Solutions.
The Oil Daily, 04/16/01

Sierra Pacific Suspends Dividend Because of Energy Crisis in Western States
By Rhonda L. Rundle
Staff Reporter of The Wall Street Journal

04/16/2001
The Wall Street Journal
B4
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Sierra Pacific Resources, which owns two Nevada utilities, said it suspended
its quarterly dividend, citing high power costs and other fallout from the
energy crisis afflicting the Western part of the U.S.
The utility holding company said it still hopes to complete a $2 billion
agreement to purchase Enron Corp.'s Portland General Electric unit. The
transaction, which will also include the assumption of $1 billion in debt,
has been delayed partly because of a new California law that has blocked
Sierra Pacific from raising funds through planned sales of certain
power-generating assets.
Sierra Pacific has paid a quarterly dividend of 25 cents in recent quarters.
Suspension of the payout will save "less than $20 million -- but every dollar
counts at times like this," said Mark Ruelle, senior vice president and chief
financial officer. The dividend policy will be reviewed again at the next
board meeting, set for May 21, the company said.
Sierra Pacific, based in Las Vegas, said it is continuing several
cost-control programs that were recently undertaken to reduce expenses. The
cutbacks are mainly in the area of administrative expenses and include
elimination this year of incentive pay for executive staff.
Sierra Pacific, like utility owners in other Western states, has been hit by
rising energy costs. Sierra Pacific has said it incurred an unanticipated
expense of $889 million in 2000 to purchase fuel and electricity on the open
market. That produced a full-year 2000 loss of $39.8 million, or 51 cents a
share.
"There is no question that both our utilities in Las Vegas and the Tahoe
region are exposed to the same general market conditions as all of the
western U.S.," Mr. Ruelle said. The impact on Sierra Pacific has been
moderated somewhat by power contracts that were secured before the latest
runup in prices. "Our contracted prices for fuel and purchased power are
favorable compared to current prices, but still above what we can recover
through utility rates," he said.
Sierra Pacific got some relief in February when the Nevada Public Utilities
Commission approved a 17% rate increase, equal to about $300 million of
additional revenue. Now the Nevada legislature is considering a proposed new
law that would restore stability to the state's electricity markets, Mr.
Ruelle said. The measure would reinstate an old regulatory provision that
assures utilities of eventual recovery of any fuel and power purchase costs
that exceed current rates.
Sierra Pacific's agreement to purchase Portland General Electric from Enron
was reached in November 1999. Enron's chief executive, Jeffrey Skilling, said
last month that there is only a "5% probability" that the sale will go
through. But Mr. Ruelle said Friday that Sierra Pacific is "continuing to
work toward the deal and to address the difficulty in securing necessary
regulatory approvals given the underlying dislocations in the markets."
Sierra Pacific has agreements to sell seven of its nine power plants, and
related assets, to various power generators for an aggregate of $1.8 billion.
The sales have been blocked partly by the new California law, which prohibits
the sale of power plants that serve California customers. Sierra Pacific's
Sierra Pacific Power Co. unit has a small service territory in the Lake Tahoe
area of California. The parent company's "financial profile" looks much
different without the sale of those plants, Mr. Ruelle said.

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

Wind Farms May Reap Profit as Britain Looks to Add Renewable Energy Sources
--- Seek Profits Out of Thin Air As Britain Pursues Renewable Energy
By Geoffrey T. Smith
Dow Jones Newswires

04/16/2001
The Wall Street Journal
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Ten years ago, Peter Edwards, a dairy farmer in Cornwall, sold his cattle to
raise money to establish the United Kingdom's first wind farm intended to
produce electricity. It wasn't competitive and did nothing to lessen the
country's dependence on fossil fuels -- not the most encouraging vision of
the future.
Today, many farmers might willingly change places with him.
As livestock farming staggers from crisis to crisis, wind farming is showing
strength. Last week, in a landmark move, the Crown Estates, which holds the
U.K. seabed in trust for the country, issued seabed leases for 13 offshore
wind-farm projects to companies traditionally associated with fossil-fuel
energy. The projects, which could attract up to GBP 1.6 billion ($2.3
billion) of investments, according to the British Wind Energy Association,
will allow for the installation of 1,500 megawatts of generation capacity
along Britain's coast by 2004. That would meet the electricity needs of 1.1
million households, according to BWEA estimates.
The projects -- seven in the Irish Sea and six in the North Sea -- are the
first concerted effort in the U.K. to raise the contribution of renewable
power sources, other than hydropower, to the energy mix.
For the wind industry, going offshore is a test of technology and viability.
Larger numbers of more-powerful turbines, driven by higher wind speeds, could
yield economies of scale. Offshore winds also are more constant than those
onshore, which could help offset wind power's major drawback:
unpredictability.
Such projects no longer are the preserve of companies on the fringe of the
energy sector. Among those awarded leases were units of Innogy PLC, Powergen
PLC, Scottish Power PLC, Enron Corp. and TXU Europe.
Under terms of the government's Renewables Obligation, all public electricity
suppliers must get some of their power from renewable generation sources by
2003. The amount will probably start at 5% or more, rising to 10% by 2010.
Via a system of tradable "green certificates," companies can trade surplus
renewable power on the open market with suppliers who can't meet the
obligation by themselves.
The emphasis of U.K. policy-makers for the past 10 years has been on bringing
prices down, rather than encouraging green energy to become competitive. As a
result, the role of wind in the U.K. has been restricted to blowing the
emissions of coal and gas-fired plants across the North Sea, forcing Norway
and Germany to cope with the environmental impact.
In countries with more government subsidies, more wind farms have flourished.
Germany and Denmark had installed capacity bases of almost 5,500 megawatts
and 2,280 megawatts, respectively, by the end of 2000, according to estimates
by investment bank Dresdner Kleinwort Wasserstein. Crown Estates and the BWEA
are in talks concerning a second round of licenses for larger sites.
Alison Hill, communications manager at the BWEA, says the generation costs of
existing onshore facilities have fallen to between 1.9 pence and 3.5 pence
(between 2.7 cents and five cents) a kilowatt-hour today from about 11 pence
a kilowatt-hour for first-generation technology. That makes some prices for
wind-generated electricity competitive in Britain, where the market is
deregulated. A pilot project off Blyth in northeast England is generating at
between five pence and six pence per kilowatt-hour, Ms. Hill says.

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

Internet Rumor Mill Changes Layoff Process --- Companies Scramble to Keep
Their Plans Off the Web
By Stephanie Miles WSJ.com

04/16/2001
The Wall Street Journal
B3E
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- When British technology publisher Future Network PLC announced a
broad restructuring that would result in 350 layoffs, few employees were
surprised. For a week, workers had been glued to an industry-gossip site.
"Everybody was waiting, expecting to be fired," says Scott Laine, who was
laid off from a job in sales for Revolution magazine, published by Future's
U.S. subsidiary Imagine Media.
Managers were watching the message boards, too. So, when Future announced the
restructuring in February, it sent a short companywide e-mail with the press
release attached. The company also sent out two more detailed letters, from
Future's chairman and chief executive respectively, explaining the
circumstances surrounding the layoffs. But instead of beaming them
electronically, the U.S. unit printed out color paper copies and placed them
on employees' desks, in an effort to keep the note from being quickly posted
online or cleanly photocopied.
"Why make it easy?" says Nancy O'Neill, then president of Imagine Media. Ms.
O'Neill stepped down as president at the end of March.
Leaks are nothing new. But the "post once, read anywhere" nature of Internet
rumors has forced companies to make much quicker decisions about when to
release information about layoffs to employees and the public, and what
exactly to say. Companies, for a variety of reasons, are often stuck saying
"no comment," only to confirm the layoff rumors later on. Worse, a scramble
to respond to investor and press inquiries can sometimes result in
embarrassing reversals.
The Web-consulting industry is among the most closely scrutinized sectors on
Web rumor boards, and companies are under constant pressure to respond. After
rumors popped up online, consulting firm Razorfish Inc. confirmed to several
press groups that it was offering a "voluntary termination plan" to an
undisclosed number of employees. But a little more than a week after the
reports of the voluntary plan, postings on Vault.com message boards were
abuzz with reports of early morning wake-up calls. "Woke me from a sound
sleep," wrote one anonymous poster at noon on a Saturday. "Anybody else get
jousted out of bed?" Other cryptic notes followed, and a note on Sunday
spelled it out: "They didn't get as many people to volunteer as they wanted
to, so from now on it's involuntary."
Melissa Kramer, a Razorfish spokeswoman, confirmed that the company called an
undisclosed number of employees at home Saturday to tell them they no longer
had jobs, and sent them packages confirming their involuntary termination.
She says the voluntary plan hadn't drawn as many people as hoped.
Ms. Kramer says the activity on the message boards had no effect on how
layoffs were carried out, either in terms of how affected employees were
notified or the timing of the announcement.
In general, companies have latitude in deciding what information to release.
Aside from releasing quarterly earnings reports, public companies are
required to disclose news that is material to their operations. But when it
comes to layoffs, the requirements laid out by the Securities and Exchange
Commission are fuzzy.
"It's a fact-specific situation," says John Heine, an SEC spokesman,
explaining that the SEC expects companies to report any material changes in
the company's outlook in its quarterly and annual reports. Severance pay and
other layoff-related expenses will show up in quarterly reports as
restructuring charges, but "There isn't a specific rule that I can point you
to that deals with layoffs," Mr. Heine says.
Unless the job cuts are so large that local or federal authorities are
required to be notified under plant-closure or other laws, publicly held
companies are generally under no obligation to confirm the number of layoffs,
specific firings, or other work-force changes, experts say.
Disclosing job cuts is often "less of a legal determination than it is a
business decision," says Richard Rowe, a corporate attorney and partner with
Proskauer & Rose LLC in Washington, D.C. Another issue is timing. Some
companies issue a press release announcing cuts right away; others wait to
release the news with their quarterly earnings reports, while others refuse
to even comment.
The decision depends often on how the company thinks layoffs will play with
investors and surviving employees. For Old Economy industrial firms, cuts are
often seen as an effective way to slash overhead costs. But in the
beleaguered Internet sector, layoffs often are viewed as a harbinger of
future troubles. For example, defunct e-tailers eToys Inc. and Garden.com
Inc., which traded on the Nasdaq Stock Market, both disclosed broad layoffs
about three months before the companies shut down altogether.
If the jobs cuts "are enhancing shareholder value, that's really good news
for a publicly traded company," says John Kroen, executive vice president at
investor-relations firm Dresner Corporate Services. "As long as it doesn't
signal the end."
Adding to the pressure on companies facing layoffs are new rules about
disclosure. While the Internet has loosened companies' control of
information, the new Regulation FD, which prohibits selective disclosure of
information, largely limits companies' dissemination options. News can't be
filtered through analysts or large investors as in the past, so for the most
part, companies have to either make a public statement or stay mum.
When EMC Corp. fired several hundred workers in February as part of an annual
review, word leaked out on investor message boards run by Yahoo! Inc.
Although the storage maker maintains that the job cuts were a routine course
of business, the company's shares fell as rumors hit the Internet. In years
past, EMC didn't publicly disclose what it termed performance-based firings,
according to Mark Fredrickson, vice president of corporate communications.
This time, however, the company decided to confirm the firings in the press
to make clear that the job cuts weren't related to the state of the economy
or the technology sector.
"I think it attracted attention because of" the environment," he says, adding
that the company didn't consider the cuts, of roughly 3% of EMC's 24,000
employees, of material importance to investors. "Two years ago, in the midst
of the high growth which we were enjoying, this would not be news."
But sometimes, being active in the face of rumors can help change the tone of
coverage. "It's better to put your words out there yourself then have them
cut and pasted back at you," says Elliot Sloane, president of Sloane PR, a
public- and investor-relations firm.
Last month, for instance, energy company Enron Corp. publicly denied rumors
that it was planning layoffs in its broadband Internet unit, rumors that had
helped to send its stock to a 52-week low. The company had recently
terminated a video-on-demand partnership with Blockbuster Inc.
But in a conference call that reiterated the company's 2001 earnings outlook,
the company explained that third-party contracts for broadband capacity had
eliminated some of the need to build its own network. An undisclosed number
of employees had been redeployed as a result, the company said, but the
rumors of layoffs were false. The stock rallied, reaching $59.40 as of 4 p.m.
that Friday, up from a low of $51.51 Thursday morning.
Still, many executives resist issuing any comment on layoffs or work-force
shifts. "The majority of the CEOs I've dealt with want to keep it as much
in-house as possible," says Dresner's Mr. Kroen. "It's rare that you find a
CEO who wants to tell as much as possible. They have to be pushed to air
their dirty laundry."
While top executives huddle to put the final touches on layoff plans and
discuss how much information to release publicly, employees can face days or
weeks of waiting for the ax to fall. Message boards can get very crowded.

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

NEWS
Time Seems Bright for Solar Power / Big companies bring financial clout to
field
Jim Doyle
Chronicle Staff Writer

04/16/2001
The San Francisco Chronicle
FINAL
A.13
(Copyright 2001)

On the sun-bleached floor of the Mojave Desert, solar-thermal plants are
producing electricity to fulfill a long-term contract with Southern
California Edison Co.
Rows of parabolic mirrors focus the sun's rays into a high-energy beam that
heats an element to make steam, which turns an electrical turbine. In all,
nine solar-thermal units near Barstow generate enough daytime power for
350,000 homes.
"This technology has been around for 15 years," said Bob Cable, manager of
KJC Operating Co., which runs five of the solar-thermal units for investors
that include East Coast utilities and insurance firms. "It's very reliable.
And with today's high fuel prices, we're a bargain.
"There's really nothing like us in the world," Cable said. And for renewable
energy advocates, that's the problem.
Solar-thermal is just one of several renewable forms of energy that have
languished for years. No new plants have been built in a decade, mainly
because power produced using low-cost fossil fuels made alternative energy
look pricey.
But now that the price of natural gas has shot up, solar, wind and geothermal
are more attractive to big energy suppliers.
"There's a lot of consolidation in the field now. Big players are coming in
and setting up divisions for solar and wind energy," said Dave Renee, a
research analyst for the National Renewable Energy Laboratory in Golden,
Colo., a division of the U.S. Department of Energy.
Even before the power crisis, oil and gas companies were increasing their
stake in renewables and buying up smaller energy firms because of rising fuel
costs and tighter environmental restrictions on fossil fuel plants.
Sharp, the Japanese electronics company, last year became the world's largest
producer of photovoltaic solar cells, which convert sunlight directly into
electricity. At the Sydney Olympics, BP Solar - - a division of British
Petroleum's energy-producing empire -- powered a solar suburb of 650 homes to
house the athletes.
A year ago, Shell Oil created its Shell Renewables division, which formed a
joint venture with Siemens Solar, another leading manufacturer of solar
cells. Shell predicts that by 2050 half the U.S. energy mix will be
renewable.
Enron, the Texas supplier of natural gas, has bought Zond, a major wind power
company. The oil companies have also invested in hydrogen fuel cell
technology, which may soon be used to power cars, homes, offices and
factories.
"We think the new technologies are going to get better, and prices will come
down," said George Douglas, a spokesman for the National Renewable Energy
Laboratory. "And we think the price of conventional power plants, whatever
fuel they're using, is going to come up."
12 PERCENT RENEWABLE POWER
Today, only 12 percent of California's power comes from renewables, but
advocates envision a future electrical grid with a diverse mix of
nonpolluting energy sources, large and small.
"California should be much more aggressive in pursuing the renewable energy
options," said Dick Swanson, president of SunPower Corp., a Silicon Valley
company that has developed new solar technology being used in power plants in
Australia and Arizona. "We are leaving the state too vulnerable if we are too
dependent on natural gas."
Gov. Gray Davis wants to rush 5,000 megawatts of capacity into service by
July through construction of large and small power plants. Renewable energy
advocates say Californians should carefully consider which kind.
"The investments we make this year and next year will stay with us for the
next 30 years," said Kari Smith, a regulatory affairs manager for Powerlight,
which makes photovoltaic systems for factories and office parks. "We need to
promote as much renewable energy as possible so that we're not stuck again
with a fossil fuel economy."
Sixteen percent of the new 5,000 megawatts will come from renewables --
mainly from wind power, but also from biomass, energy created from organic
waste.
The California Energy Commission's $202 million subsidy program for renewable
plants offers financing incentives of as much as 1.5 cents per kilowatt hour,
or up to one quarter of cost, to help these systems compete.
ECONOMIC INCENTIVES
Environmentalists want more economic incentives for renewables, and also
taxes on fossil fuel power plants to offset the pollution they cause.
Since the 1970s, most government subsidies for renewable technologies have
gone to solar power, although it accounts for less than 1 percent of the
state's electricity -- less than geothermal (5 percent), wind (2 percent),
small hydro plants (3 percent) and biomass (2 percent).
Solar has proved costly to develop, but appears to be on the verge of paying
off.
"In the last 20 years the cost of producing electricity from solar cells has
dropped tenfold," Douglas said. "We can expect it to drop at a similar rate
over the next 20 years by raising efficiencies of solar cells and decreasing
the manufacturing costs."
The U.S. market for solar energy has grown steadily in recent years, but more
than 70 percent of photovoltaic systems are exported to developing countries.
Solar panels, used since the late 1950s on orbiting satellites, are only now
becoming affordable. A household unit can cost $10,000 to $30,000, though in
California, state rebates can reduce the cost by half.
In December, the state Energy Commission received 50 applications from homes
and businesses for its "buy down" program, which offers rebates of up to 50
percent for the cost of solar panels and small wind generators. In January,
there were 250. In February, there were 245.
WAIT LIST FOR HOME SYSTEMS
In Sacramento, the local utility district sells solar panels to residential
customers at reduced rates. The utility, which also installs the panels, has
a waiting list of 700 homeowners for a total of 100 solar units available
this year.
"We foresee the day in the next five or 10 years when photovoltaics will
compete with fossil fuel-generated power price- wise without subsidies," said
Vince Schwent, who runs the Sacramento Municipal Utility District's solar
energy program. "At that point, the market for solar will explode. Mass
production will lead to lower prices."
Independents that have tried to break into California's power market,
however, have had difficulty obtaining investors and loans for unconventional
technologies.
"The investment market and engineers have been focused on the creation of
large power plants," said Richard Harkrader, a North Carolina energy
consultant. "How do you persuade people to make the higher investment in
return for no emissions and (ending the uncertainty of) fuel costs?"
But solar research scientist Jim Augustyn, a contractor for the U.S.
Department of Energy, cautions against the federal or state governments
pushing too hard for alternative energy systems.
"The government could do more, but they have to be careful about how they do
it," Augustyn said. "You can't just throw a lot of money at the technology
and expect it to grow fast. You have to build this whole infrastructure.
There are people who can install a photovoltaic system on your roof, but
there are not a lot of them."
Scientists disagree on how much fossil fuel the Earth holds. But few think
this year's energy crisis will be the last.
"I think that we should view this century as a transition away from fossil
fuels," SunPower's Swanson said. "If we wait too long, it's just going to be
that much more painful."
----------------------------------------Energy EconomicsWith tax credits and
rebates, wind power is already competitive in price with conventional energy
sources, and solar power is fast becoming more affordable..The cost of
building a natural gas boiler runs about $1 million per megawatt of capacity.
Wind generators cost about the same to build. Solar thermal units cost more
than twice as much. But the fluctuating price of fuel must be factored into
the cost of making electricity from natural gas.

PHOTO (3); Caption: (1) Rows of parabolic reflectors bounced the sun's rays
onto a steam generator at this KJC Operating Co. power plant in the Mojave
Desert. / Photos by Kendra Luck/The Chronicle, (2) Brandon Banks monitored
the power output at the KJC Operating Co.'s desert solar thermal plant., (3)
Bob Cable, manager of the KJC Operating Co. plant, walked among the solar
reflectors, which pivot on their stands to keep sunlight focused on the steam
generator.

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

Small Tech Rally Precedes Earnings Reports from Silicon Valley
David A. Sylvester

04/16/2001
KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

The stock market looks like it's following that old cliche that it takes more
muscles to frown than to smile.
As if tired of the effort required by persistent pessimism, investors gave
into optimism last week and started buying tech stocks with little apparent
reason. As a result, the Nasdaq composite index had its largest weekly rise
in 10 months, rising 14 percent during the four-day week and closing Thursday
at 1961.43. Only the week before, it was scraping along the bottom by coming
near the one-year low it had hit on April 4.
The overall market did well, too. The Dow Jones industrial average closed
above 10,000, and Standard & Poor's 500, a broader gauge of the market, rose
nearly 5 percent for the week.
Yet the surge of buying came along with bad news. The economic reports last
week showed the U.S. economy is stumbling: worsening consumer confidence,
flat retail sales and sharply rising unemployment claims. And the earnings
results weren't great either. Motorola reported its first loss in 16 years,
and Juniper Networks warned analysts that its sales and profits would fall
below previous forecasts.
What gives? "I'd say we're in a correction to a bear market," said Ken
Fisher, chairman of the Woodside investment company Fisher Investments.
"Sentiment is much too optimistic for the market to bottom yet."
This week may give further evidence of whether that's true. Some of the
biggest tech companies will report their first-quarter earnings, revealing
how much damage the slowdown has caused to profits and sales, the vital signs
for the future health of stocks. The list of companies reporting is a Who's
Who of Silicon Valley and the tech world: Intel, Sun Microsystems, Apple
Computer, IBM, Microsoft, Lucent Technologies. Also coming are results from
major banks such as Bank of America and Wells Fargo, airlines such as United
Airlines parent company UAL Corp. and independent energy producers such as
Duke Energy and Enron.
Wall Street is looking not just for the current reports but what companies
will say about their expectations for the summer:
-- How bad is the slowdown among personal computer makers? Analysts are
expecting Microsoft to earn 42 cents a share for the quarter, down slightly
from 41 cents a year ago when it had disappointing results.
-- What is demand in Europe, the strongest economy in the world right now?
Intel was one of the first to blow the whistle on slowing sales in Europe and
is expected to report 15 cents a share, half of its 35 cents a year ago.
-- Are corporate customers still reducing their purchases of big-ticket
computer systems, software and Internet equipment? In the telecommunications
world, Juniper indicated last week that its customers among phone and
Internet companies were reducing their orders for capital goods.
-- Most importantly, what is the outlook for the second half of the year?
Will the slowdown persist? Some think so, particularly for tech. "It's going
to be a harder quarter for software companies in June than it was in March,"
says Wendell Laidley, software analyst at Credit Suisse First Boston.
The answers to these questions could determine whether the current bear
market for technology stocks ends soon or turns into an extended one. Those
who believe the bear market has a lot further to go point to trouble. They
say the economy is stuck with excess capacity to produce goods, especially in
technology, as well as an unstable bubble of credit that paid for the boom.
Consumers overspent and undersaved as they went on a spending spree, and
businesses bought too much of the tech products. Moreover, a U.S. recession
of two quarters of decline in the real Gross Domestic Product appears on the
horizon, if not already arrived, in this view.
"We haven't had much of a bear market so far," says David Tice, an investment
adviser who manages $180 million in the Prudent Bear mutual fund. "People
need to remember how seductive bear markets are. They keep investors
invested. They keep you hoping."
But the bulls believe help is on the way. The Federal Reserve Board is
certain to cut interest rates to lower the cost of borrowing, and tax cuts
should help stimulate demand. From this point of view, an economic rebound is
expected by the end of the year to boost corporate profits. And if the
economy improves, stocks may rise sooner, since changes in the market often
precede those in the economy.
Abby Joseph Cohen, investment strategist and long-time bull at Goldman, Sachs
& Co., advised investors in mid-March to put more money into stocks. "The
U.S. economy still benefits from favorable secular trends: the world's most
productive workforce, well-managed companies, mild inflation and large
federal surplus," she wrote in a note to investors on March 7.
If it ends now, this current Nasdaq bear market will go down as the sharpest
in its 30-year history, but hardly the longest. In fact, Nasdaq has had nine
bear markets -- defined as a 20 percent drop in the index -- and three of
them were as long or longer. The longest, from Jan. 11, 1973, to October 3,
1974, lasted almost 21 months when the national economy was moving into a
recession.
But it was a bear of a bear. That one down market was big enough to absorb
the next two bull surges -- each one nearly 60 percent -- and bring Nasdaq
back to its 1973 peak five and a half years later, on Sept. 13, 1978. In
other words, Nasdaq had been basically flat for more than five and a half
years.
The second longest bear market lasted just more than 15 months, from 1981 to
1982, also in the teeth of a national recession. But this bear market was
sandwiched between two others, so that Nasdaq went through three 20 percent
declines by 1984. In fact, the bull market for Nasdaq didn't really start
until July 25, 1984 -- two years after it started for the Dow Jones
industrials.
After doubling by 1987, Nasdaq then waffled for two years and nine months,
gaining only 0.4 percent in total by May 23, 1990. It punctured the 1990s
bull market with another one-year flat spot from March 18, 1994, to March 14,
1995, and hit another six-month pothole in 1999.
Fisher, who accurately diagnosed the tech bubble in March 2000, compares its
bursting with the drop in energy stocks in the early 1980s. And he has
developed a rule of thumb about bear markets: the last two-thirds of the drop
comes during the last third of the time spent in a down market. "It's the
back end of a bear market that kills you," he said.

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

Washington Outlook: CAPITAL WRAPUP
A REBUKE FROM ENRON'S BOSS
EDITED BY PAULA DWYER

04/16/2001
Business Week
55
(Copyright 2001 McGraw-Hill, Inc.)

Ever since the President backed away from action to prevent global warming,
greens have wondered what Enron Chairman Kenneth L. Lay, a pal of George W.
and a backer of anti-global warming measures, thought of the decision. Well,
at an Apr. 4 Toronto Board of Trade meeting, a questioner put Lay on the
spot. Visibly uncomfortable, according to one participant, Lay responded that
the Administration team went too far--and that he has already let them know
it.

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

Washington Outlook: CAPITAL WRAPUP
BUSH TAPS DEFENSE INC. AGAIN
EDITED BY PAULA DWYER

04/16/2001
Business Week
55
(Copyright 2001 McGraw-Hill, Inc.)

After picking industry execs as his leading candidates to head the Navy and
Air Force, President Bush is following the same pattern for the Army. His
expected choice: Enron Corp. executive and retired Brigadier General Thomas
E. White Jr. White is expected to be a strong proponent of outsourcing such
services as electricity delivery--which could benefit his former company.
Enron won a $25 million contract in 1999 to provide power and water to New
York's Fort Hamilton.

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

Godbole panel report a boost for MSEB
Vidyadhar Date

04/16/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

MUMBAI: The Madhav Godbole committee report has come as a boost to the
Maharashtra State Electricity Board as it has run into a financial crisis
because of the high tariff of the Dabhol power project of Enron. Trade unions
too are pleased as they have made the Enron issue a focal point in their
campaign against globalisation and the proposed Maharashtra bandh for April
25.
The committee has observed that even if the MSEB improves its performance,
phase II of the Dabhol project will still drag the MSEB into financial
sickness. The MSEB has already taken steps to improve its performance and
recover dues and reduce losses, board sources said. The MSEB has also told
the government a few months ago that it would not be able to cope with phase
II of 1490 MW of the power project. The state does not need that much power
and does not have the financial capacity to buy it. The board, however, can
by improving its own performance withstand the hardships created by phase I.
The MSEB has also expressed reservations about using excess power generated
by the proposed Bhadrawati and Reliance projects. The Godbole committee has
suggested that the MSEB should defer all power purchase agreements reached
with independent power producers (IPPs) till such time as it is possible to
fully absorb power generation from them.
The burden of Dabhol power is nearly Rs 6000 crore per annum, which would
rise due to the depreciation of the exchange rate. This could conceivably
lead to a drastic cut in budget allocation for the plan and lead to a
declaration of a plan holiday, the Godbole committee has observed. Mr Godbole
should know since he is a former state finance secretary and former
chairperson of the MSEB.
The Bhadrawati and Reliance projects will also be a drag on the MSEB since
the board will have to buy nearly 90 per cent power produced by them or else
pay a higher tariff for purchasing less power as in the case of Enron.
A.R. Bapat, a former chief electrical engineer of BEST Undertaking, said the
question now was how to force Dabhol to come to the negotiating table. At the
same time, he said the MSEB was doing well to impose a fine on Dabhol
corporation for its failings. This should drive the point home to Dabhol.
P.J. Joglekar, a former professor at IIT, Delhi, and electronics expert, said
that even if Dabhol is allowed to sell power directly to other companies, as
recommended by the committee, it would not solve the problem. Industrial
units are already charged high rates and the MSEB uses the profit to cross
subsidise to the weaker sections. The MSEB would be in trouble again if
industrial units have to pay more. Even if the Dabhol power was sold to other
states, the question is why should people in other states pay a high price
for Dabhol.

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

TUs gear up for April 25 Maharashtra bandh
Vidyadhar Date

04/16/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

MUMBAI: The report that 86,000 workers lost their jobs in the US last March,
the biggest loss for a single month in more than nine years, has vindicated
the stand of the organisers of the proposed Maharashtra bandh for April 25.
``This is what free market is doing to workers,'' trade union leaders say.
The bandh call is against globalisation, the growing power of the free
market, increasing unemployment and the adverse impact of WTO on farmers.
So far, workers had borne the brunt of the development process, now for the
first time farmers are feeling the pinch. That is why farmers from different
parts of Maharashtra turned up in large numbers for the rally organised by
Left political parties at Shivaji Park recently.
The big response has boosted the morale of the organisers. The rally was
attended by three Maharashtra ministers, Ganpatrao Deshmukh, Mohan Patil and
Meenaxi Patil, all belonging to the Peasants and Workers Party.
The news of the protests by employees of the Marks and Spencer group against
layoff in Paris last week is also seen by the TU leaders as a vindication of
their stand that only progressive policies can help create and retain jobs.
The French prime minister, Lionel Jospin, a socialist himself, has protested
against the layoffs in France. But his critics say with irony: ``He is
neither Marx nor Spencer.''
The job losses in the US have shaken the government and the secretary of
labour, Elaine Chao, has said: ``The new unemployment numbers show that the
patient isn't getting any better, so it is time to prescribe some medicine.''
Trade union leaders in Maharashtra will also be watching with interest the
Shiv Sena's response to the bandh call since the party has suddenly taken an
aggressively pro-labour stand. It has strongly criticised the Central
government's new policy on labour, globalisation and imports of agricultural
commodities. Uddhav Thackeray, Sena leader, gave a call at a rally organised
by the party on March 21 for trade unions of all ideologies to come together
to oppose the policy of globalisation.
Left-wing trade union leaders say they would not be averse to the support of
the Sena to the bandh. But they would not share the platform with the Sena
leaders. ``We must maintain our separate identity,'' the leaders said.
With the unions of state transport and BEST joining the bandh, life in the
state will be considerably affected. Efforts would also be made to block
suburban trains in Mumbai, a trade union leader said.
The news that the government proposed to close down 25 textile mills of the
National Textile Corporation in Mumbai and 11 in other parts of the state has
strengthened the resolve of the workers to enforce the bandh. The Rashtriya
Mill Mazdoor Sangh, the Congress party's recognised union in the textile
industry, has already organised a rasta roko on the issue.
The high tariff of Enron's Dabhol power plant has also provided a major issue
to the Left parties. A number of booklets on the subjects have been brought
out. One booklet, written by Ajit Abhyankar and published by the CPM, was
eagerly bought at a recent rally along with Dr Ashok Dhawale's book on the
Shiv Sena and Krishna Khopkar's on the `post-mortem of the new agricultural
policy'.

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

It happens only in Indiya
T C A SRINIVASA-RAGHAVAN

04/16/2001
Business Standard
11
Copyright (c) Business Standard

Back in the days when Kings used to rule, they would often make mistakes. The
more mistakes they made, the more they would be ridiculed, even if only
privately. But since it is hard to keep a good fool down, there would come a
time when the King became the butt of all jokes.
To counter this tendency amongst an ungrateful populace, courtiers came up
with the theory of Divine Right. The theory said that Kings, simply because
they were Kings, were divinely ordained.
As such they could not, by definition, make mistakes. Nor could they be held
responsible for any of their actions because they were carrying out God's
will.
It was a great theory, so great indeed that it has never lost its appeal.
Even that 20th century haven of atheism, the Soviet Union, adopted it while
typically denying God credit for the implicit divinity of the politbureau.
The proletariat substituted God but that was like conversion from one
religion to another. The basic notion did not change.
The USSR's co-brother-in-law, as they would call China in Chennai, still
practises this version of the Divine Right. So does that other model of
humane governance, North Korea. Millions may die of starvation but the
Supreme Leader, which is Communist for King, is never blamed. Nor are the
advisors in the politbureau.
Democracies, it was thought, would be different because, for the first time
in history, the people would have the right to remove their rulers if they
made too many mistakes. This would leave no space for Divine Right and the
theory would slowly be discarded in favour of the Right to Remove. And, by
and large, that is what has happened. But India, consistent with its genius
for assimilating ideas and coming out with a hybrid, has remained an
exception.
Defined in terms of the Right to Remove, it is a full-fledged democracy.
Indeed, we are specialists in removing governments. Everyone here the people
through elections, Parliament through no-confidence motions, and even the
central government through Article 356 has the right to remove governments.
No other country can match this.
But if you turn the coin over to see if the Divine Right theory has been
rubbed out by the efflux of democratic time, you get a nasty surprise. It
hasn't.
India's rulers can still never make any mistake and if things go wrong it is
always someone else's fault. And the beauty is that this holds for all
rulers, irrespective of the party to which they belong. For the level below
the elected one, of course, this holds with knobs on because the politician
can at least be voted out, this class can only be promoted.
There is general as well as specific proof for this. The general proof is
provided by the fact that, thanks to gigantic errors of policy since 1947,
India is now a truly awful country to live in for everyone except the rulers.
Yet, only with a few exceptions, those who made those mistakes are generally
revered. The fault is never theirs, always ours for breaking their idiotic
rules.
This brings up the specific proof, of which the two most recent instances are
the Ketan Parekh and Enron affairs. Consider the Parekh affair first. What
has he done? Borrowed money? Is that illegal?
What have the banks done? Lent him money? Is that illegal? Was it illegal for
Mr Parekh to ramp up some shares? Was it illegal for the banks to accept the
ramped-up shares as collateral?
Those with an axe to grind and I must regretfully include some crusaders from
my own tribe may go after Mr Parekh. But it will be interesting to see how
the charges stand up in court.
Likewise, in the case of Enron, why blame it? It was the government that
botched the agreement for whatever reason. Enron simply took advantage of the
fact that the people who were negotiating the agreement were either out of
their depth or worse.
The point is that the MSEB signed the contract. Once you have signed, how can
you say I didn't know this and I was not aware of that? Indeed, when you do
that, are you not admitting that you are either a fool or a knave?
Yet, what we see now is an elaborate attempt to shift the blame from the
rulers to Mr Parekh and Enron. What's worse, most people are willing to
accept this. They have been conditioned to believe that the government can
never be wrong and that if it says someone else is to blame, that must be
automatically correct.
Amazingly, people are willing to believe that D R Mehta, the Sebi chairman,
is guilty of something what, pray? but that the Governor of the RBI is
completely blameless. Why? Because the finance minister is yet to say so.
It is the Divine Right theory all over again.

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

Business
NAPSTER-LIKE THREAT PUTS MOVIE INDUSTRY ON GUARD DIVX LETS USERS COPY AND
TRADE FILMS ONLINE
Ron Harris, Associated Press

04/16/2001
Chicago Tribune
North Sports Final ; N
7
(Copyright 2001 by the Chicago Tribune)

For the movie industry, a small piece of software called DivX holds the same
promise and peril that the MP3 audio format presented to the record labels.
DivX already has shown the potential to become a de facto Internet
standard--and the basis for a California start-up that hopes to make it the
compressed digital video format of choice.
Thousands of film buffs have discovered that DivX can be a real alternative
to paying for movies, just as Napster and MP3 allow music fans to trade
millions of songs for free.
"Sometimes I rent a DVD at a local rental store, I `rip' it and send it
back," said Bruce Heller of Paris. "I know it's illegal, but I think it's
better to rent a movie each week than buying a DVD or two each year."
DivX compresses full-length movies into sizes small enough to be sent on the
Internet and stored on a single compact disc. Using DeCSS software to crack
the "content scrambling system" on DVDs, Heller copies movies using DivX onto
his own CDs and loans them to friends.
"We are only at the beginning of the movie piracy, and it's growing fast," he
said. "Who would not be interested in it?"
Setting a standard
The challenge for Hollywood and technology companies is to create a popular
yet secure standard for online video delivery before the movie industry
suffers the same losses that record labels have seen.
Publicly, Hollywood is enthusiastic about a future in which movies can be
delivered directly to personal computers over the Internet.
DivX, like other video compression technologies, could provide the answer if
coupled with strong security measures, said Jack Valenti, head of the Motion
Picture Association of America.
"I think the technology is wonderful," Valenti said. "I don't see it as a
tool of piracy. I see it as a convenience to consumers who want to [download]
legitimate licensed films."
DivXNetworks, a small, San Diego-based start-up, hopes to make DivX the
format of choice for Hollywood. It wants to negotiate revenue-sharing deals
with companies looking to sell content online but hasn't succeeded in cutting
any deals with major studios.
Jordan Greenhall, the company's chief executive and co-founder, said
DivXNetworks' only legitimate customers so far use DivX to deliver video of
monster truck contests and Japanese animation shorts.
The company faces formidable challenges from Microsoft Corp., which showed
the power of the Windows Media format last month by delivering a short film
starring John Cleese to a Pittsburgh theater via the Net.
RealNetworks Inc. also offers a secure format for "streaming" video content
online and can leverage MusicNet, its online music subscription venture with
AOL Time Warner Inc. and Bertelsmann AG.
Leveraging the Internet
Without major backers, DivXNetworks has turned to the power of the Internet,
posting the DivX source code online and encouraging programmers to retool and
improve it.
DivXNetworks hopes DivX will become so popular that Hollywood will decide to
make it the standard, in the same way that record labels have grudgingly
accepted MP3s as the way to deliver music.
But even if DivX becomes as popular as MP3, it faces other challenges.
For one thing, although Greenhall says security measures can be incorporated
into DivX, the code is loose on the Internet, where unsecured versions may
prove devilishly difficult to tame.
Also, Microsoft claims DivXNetworks uses technology stolen from Windows
Media.
"It's our technology, and they've essentially rebranded it," said Michael
Aldridge of Microsoft's Digital Media division. "It's like taking a
Volkswagen, taking the brand Volkswagen off the hood and putting DivX on it."
Greenhall denied that his company lifted Microsoft's code, saying the latest
version of the software was programmed from scratch.
The notion of piping movies on demand straight to PCs over high- speed
Internet connections stalled last month when talks broke off between
video-rental giant Blockbuster Inc. and Enron Broadband Services.
Downloading woes
Robin Diedrich, an entertainment industry analyst with Edward Jones, said
eight to 10 years could pass before consumers have full catalogs of movies
online, because most consumers still connect to the Net through telephone
wires.
Downloading a full-length DivX movie using phone wiring could take days,
compared with a few hours using high-speed T1 lines or cable modems.
Diedrich also said studios would be leery of anything that could reduce
revenue from theaters and video rentals.
Valenti said online versions likely will appear only after films are
delivered to theaters, airlines, home video and pay-per-view. He also said
the studios he represents haven't endorsed any particular file format. They
only urge that any movies delivered online be encoded with enough security
measures to prevent unauthorized copying.
But hackers aren't waiting. Both the DivX codec--techie shorthand for a
software program used to compress and decompress video and audio data--and
DeCSS software are freely available on the Internet.
The Hollywood trade group is fighting back, cruising through newsgroups, Web
sites and chat rooms for DivX movie traders. Hemanshu Nigam, the MPAA's
director of Internet enforcement, expects to send 20,000 cease-and-desist
letters this year to people who illegally trade copyrighted movies. That's 10
times the number sent out in 2000.

PHOTO; Caption: PHOTO: Jordan Greenhall of DivXNetworks wants to have his
company's DivX technology for transferring movies online become the industry
standard. The software compresses video files for storage on a CD. AP photo
by Denis Poroy.

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

Enron Restarts MTBE Plant.

04/16/2001
The Oil Daily
(c) 2001 Energy Intelligence Group. All rights reserved.

Enron said Thursday that its 15,000 b/d methyl tertiary butyl ether (MTBE)
plant in Morgan's Point, Texas, has restarted from scheduled maintenance.
The plant came back up "a few days ago," an Enron spokeswoman said Thursday,
but a specific date was unavailable. The plant was brought down for a planned
turnaround on March 9.
The MTBE plant is on the Houston Ship Channel near Baytown, and is Enron's
only MTBE plant. The company also owns a plant in La Porte, Texas, which
makes 400,000 b/d of methanol, an MTBE ingredient.
(c) Copyright 2001. The Oil Daily Co.
For more infomation, call 800-999-2718 (in U.S.) or
202-662-0700 (outside U.S.).

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

Panel Suggests Enron Solutions.

04/16/2001
The Oil Daily
(c) 2001 Energy Intelligence Group. All rights reserved.

A committee set up by the Indian state of Maharashtra to examine US energy
giant Enron's controversial power project on Thursday recommended that the
supply deal be renegotiated.
Enron and the Maharashtra State Electricity Board (MSEB) have been locked in
a long-standing dispute over the state utility's unpaid bills. In March,
Enron, which owns 65% of Enron's Indian Unit Dabhol Power Co. (DPC), invoked
a counterguarantee of the Indian government after MSEB failed to clear its
bill of 1.02 billion rupees (US$21.91 million) for December.
DPC has come under fire because of the relatively high cost of its power.
Critics object to it charging 7.1 rupees/kilowatt hour vs. 1.5 rupees charged
by other suppliers.
The committee suggested that the tariff be renegotiated to make it lower and
to remove the dollar linkage, which resulted in a steep increase each time
the rupee fell against the dollar. The report also recommended the financial
restructuring of DPC to defer payment obligations for at least five years,
with a preference of 15 years.
Earlier this week, Enron's Indian unit sent a political force majeure notice
to MSEB (OD April10,p7). Such a notice is a contractual clause dissatisfied
parties give as a first step toward possibly dissolving a contract.
(c) Copyright 2001. The Oil Daily Co.
For more infomation, call 800-999-2718 (in U.S.) or
202-662-0700 (outside U.S.).

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


Don - I never heard anything back.  Is everyone ok with these clarifications?
-----Original Message-----
From: Corman, Shelley
Sent: Friday, February 22, 2002 10:10 AM
To: 'Don.Vignaroli@dynegy.com'; Len.Hesseltine@dynegy.com; John.O'Shea@dynegy.com; Mary.Kay.Miller@dynegy.com; Mike.Mcgowan@dynegy.com; Hotte, Steve
Subject: RE: Restated 2002 CAPEX Plan

Don,

I would like to see the following notations added to the Gas Logistics CAPEX page to fully reflect the discussion and agreement.

With respect to the specific project listed:

1.  Gas Logistics is authorized to proceed with 4 Discretionary projects, including the three gas control network/security upgrades that you have listed and also the blanket desktop replacement project ($19,000) (omitted from your listing).  No further written proposal is required by Dynegy and restated capital budget will constitute the written authorization to proceed with these projects.

With respect to Footnote 2.  I believe the description below more precisely reflects our discussion:

2.  Dynegy requested and Enron agreed that NNG will not be charged any additional amounts for the Base Contract System through June 30, 2002, UNLESS Dynegy authorizes Enron to begin work on the customization and implementation of the NNG contract system prior to June 30, 2002.   To the extent that Enron is not directed to begin work on the customization of the base contract system for NNG prior to June 30, 2002, it is understood that the implementation date of the NNG contract system will be impacted.

3.  Dynegy requested and Enron agreed that NNG will not be charged any additional amounts for the Base Rates and Revenue System through June 30, 2002.

An additional footnote should be added to the page.

4.    The 2002 Capital Budget does not currently authorize the system modifications that will be necessary to implement NNG's Order 637 filing/revised filing provisions or GISB changes.   Dynegy and Enron will need to mutually agree whether to commence work on these modifications to meet filing commitments or expected FERC requirements.

 -----Original Message-----
From: Don.Vignaroli@dynegy.com [mailto:Don.Vignaroli@dynegy.com]
Sent: Thursday, February 21, 2002 5:23 PM
To: Len.Hesseltine@dynegy.com; John.O'Shea@dynegy.com; Dan.Dienstbier@dynegy.com; Carolyn.J.Stone@dynegy.com; Mary.Kay.Miller@dynegy.com; Dave.Neubauer@dynegy.com; Mike.Mcgowan@dynegy.com; Steve.Gilbert@dynegy.com; Keith.Petersen@dynegy.com; Lowry, Phil; Rice, Randy; Pribble, Dan; Nelson, Mike; Brassfield, Morris; Corman, Shelley; Hotte, Steve; Kleb, Steve; Concklin, Elaine
Subject: Restated 2002 CAPEX Plan

Attached for your review and information is a copy of the Restated 2002 Capital Budget (25 page report) which reflects the planned CAPEX recently agreed to between NNG/Dynegy and Enron.

Feel free to contact Mike McGowan (402.398.7110) or Don Vignaroli (402.398.7139) with questions or comments.


David Spradlin has reviewed the attached language and agrees with all of it.
We can cross another clause off the list.

Steve Swift

-----Original Message-----
From: Scott.Dieball@enron.com [mailto:Scott.Dieball@enron.com]
Sent: Tuesday, May 29, 2001 7:33 PM
To: John.G.Rigby@enron.com; Sheila.Tweed@enron.com; Kay.Mann@enron.com;
Matthew.F.Gockerman@enron.com; Lisa.Bills@enron.com;
Bill.Williams@enron.com; Roseann.Engeldorf@enron.com; Swift, Stephen L
(PS, CommOps); Barnas, Michael C (PS, Legal); Thompson, Peter J.
Subject: Re: World Hunger - Tax Clause Revisions

Attached below for everyone's review is suggested redraft of tax provisions
(Sections 5.2.1-5.2.3) of the std. contract based on our conference call
with GE and Enron tax folks (Dave and Matt) earlier today.

Steve - Please forward this Email to Dave (if necessary) as I do not have
his Email address.

Matt - If you have any further comments to the revised text, please give
John or myself a call so that we can include your thoughts in our
conference call with GE tomorrow at 1:30 CST.

(See attached file: GE - Taxes-Section 5.2.1-5.2.3.doc)

John G Rigby

To:     Scott
Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
05/29/2001           cc:

02:33 PM             Subject:     World Hunger - Tax
clause revisions May 29th AM

----- Forwarded by John G Rigby/ENRON_DEVELOPMENT on 05/29/2001 02:33 PM
-----

John G Rigby

To:     Matthew F
Gockerman/HOU/ECT@ECT,
05/29/2001           stephen.swift@ps.ge.com@ENRON

11:26 AM             cc:

Subject:     World Hunger - Tax
clause revisions May 29th AM

Attached is a file containing Section 5.2.2 and 5.2.3  where I have
attempted to clarify the intent of each clause.  Steve- Matt has not have
the opportunity to review this.

(See attached file: Section 5-2-2 & 5-2-3.doc)


I spoke to the professors and we decided that the Midcontinent class will be held Monday's and Wednesday's from 3:00 to 4:00, Ontario class will be held Tuesday's and Thursday's at the same time.

Classes will commence Monday 8, 2001, and will continue until Thursday 19, 2001.  Midcontinent test will be held on Monday the 22nd and Ontario test will be held on Tuesday the 23rd.

Please e-mail any suggestions, conflict, registry.

Thanks


The problem has been corrected, please try to login.  Let me know if you have
anymore problems.

Ina
---------------------- Forwarded by Ina Rangel/HOU/ECT on 01/19/2001 10:39 AM
---------------------------
From: Fangming Zhu@ENRON on 01/18/2001 09:27 AM
To: Ina Rangel/HOU/ECT@ECT
cc: Dutch Quigley/HOU/ECT@ECT
Subject: Re: Gas Message Board

http://gasmsgboard.corp.enron.com

Thanks,

Fangming

	Ina Rangel@ECT
	01/18/2001 08:07 AM

		 To: Andrea Ring/HOU/ECT@ECT, Andrew H Lewis/HOU/ECT@ECT, Brad
McKay/HOU/ECT@ECT, Craig Breslau/HOU/ECT@ECT, Chris Germany/HOU/ECT@ECT,
Carey M Metz/HOU/ECT@ECT, Charles T Muzzy/HOU/ECT@ECT, Daren J
Farmer/HOU/ECT@ECT, Dick Jenkins/HOU/ECT@ECT, Dan Junek/HOU/ECT@ECT, Dutch
Quigley/HOU/ECT@ECT, Eric Bass/HOU/ECT@ECT, Edward D Gottlob/HOU/ECT@ECT,
Elsa Villarreal/HOU/ECT@ECT, Frank Ermis/HOU/ECT@ECT, George N
Gilbert/HOU/ECT@ECT, Gary W Lamphier/HOU/ECT@ECT, Geoff Storey/HOU/ECT@ECT,
Hunter S Shively/HOU/ECT@ECT, John Arnold/HOU/ECT@ECT, Jared
Kaiser/HOU/ECT@ECT, Jay Reitmeyer/HOU/ECT@ECT, Jim Schwieger/HOU/ECT@ECT,
Jennifer Shipos/HOU/ECT@ECT, John Craig Taylor/HOU/ECT@ECT, Jane M
Tholt/HOU/ECT@ECT, Judy Townsend/HOU/ECT@ECT, Janet H Wallis/HOU/ECT@ECT,
Jason Williams/HOU/ECT@ECT, Kate Fraser/HOU/ECT@ECT, Kevin
Ruscitti/HOU/ECT@ECT, Kelli Stevens/HOU/ECT@ECT, Lauri A Allen/HOU/ECT@ECT,
Martin Cuilla/HOU/ECT@ECT, Mike Grigsby/HOU/ECT@ECT, Monique
Sanchez/HOU/ECT@ECT, Phillip K Allen/HOU/ECT@ECT, Peter F Keavey/HOU/ECT@ECT,
Patrice L Mims/HOU/ECT@ECT, Robin Barbe/HOU/ECT@ECT, Sandra F
Brawner/HOU/ECT@ECT, Scott Hendrickson/HOU/ECT@ECT, Sarah
Mulholland/HOU/ECT@ECT, Jennifer Fraser/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT,
Stacey Neuweiler/HOU/ECT@ECT, Susan W Pereira/HOU/ECT@ECT, Sylvia S
Pollan/HOU/ECT@ECT, Steven P South/HOU/ECT@ECT, Tom Donohoe/HOU/ECT@ECT, Tori
Kuykendall/HOU/ECT@ECT, Thomas A Martin/HOU/ECT@ECT, Victoria
Versen/HOU/ECT@ECT, Barry Tycholiz/NA/Enron@ENRON, Caroline
Abramo/Corp/Enron@Enron, Danny Conner/NA/Enron@Enron, Bill
Berkeland/Corp/Enron@Enron, Joe Parks/Corp/Enron@ENRON, Kevin
Brady/NA/Enron@Enron, Liz Bellamy/NA/Enron@Enron, Larry May/Corp/Enron@Enron,
Mark Smith/Corp/Enron@Enron, Mike Maggi/Corp/Enron@Enron, Nelson
Ferries/Corp/Enron@ENRON, Paul T Lucci/NA/Enron@Enron, Robyn
Zivic/NA/Enron@Enron, Scott Goodell/Corp/Enron@ENRON, Troy
Black/Corp/Enron@ENRON, Tammi DePaolis/Corp/Enron@ENRON, Sean
Boyle/Corp/Enron@ENRON, Fangming Zhu/Corp/Enron@ENRON, Allen
Elliott/HOU/ECT@ECT, Michael Sellers/LON/ECT@ECT, Deirdre
McCaffrey/HOU/ECT@ECT, Kirk Lenart/HOU/ECT@ECT, Bryan Powell/HOU/ECT
		 cc:
		 Subject: Gas Message Board

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

A message board has been set up for the natural gas trading floor. This is a
secure internal Enron board with viewing rights only for personal on the
natural gas trading floor, both traders and marketers. Please follow the
steps outlined here to access the Gas Message Board.

Steps to launch Gas MSG Board:

1) Launch Internet Explorer

2) Type:  http://gasmsgboard.corp.enron.com/msgframe.asp (or just click on
this URL  Link)

3) You should see the messages if there are any new messages for that  day.
If you don't see any messages, there are two reasons:
 A. You are not a valid user, contact Ina Rangel at ext. 3-7257
 B. There are no new messages added for that given day yet.

4) Sending a message:
 A. Just simply enter a message in the test box at the lower portion of the
web page
 B. Click on the "send" button to send the message.

5) Once the message has been sent  it will be displayed on the main window
immediately and all people who are on-line will get the new message on the
next refresh cycle.

6) All messages will be cleared daily at 6:00 PM

Dutch Quigley
ext. 3-9257


This issue of eBiz  is dedicated to Enron's response to the tragedy and how it affected our businesses and our people.

It's all in the latest eBiz http://home.enron.com/pubs/ebiz/issues/092401.  Or go to home.enron.com (http://home.enron.com ), click Publications, then click eBiz, and "eBiz September 24, 2001."

<Embedded >


What was this one about?
---------------------- Forwarded by Mark Taylor/HOU/ECT on 10/25/99 01:41 PM
---------------------------

David Forster
10/25/99 12:39 PM
To: Elena Kapralova/LON/ECT@ECT, Mark Dilworth/LON/ECT@ECT
cc: Robert Campbell/LON/ECT@ECT, Marcello Romano/LON/ECT@ECT, Bob
Shults/HOU/ECT@ECT, Stacy E Dickson/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT,
Jennifer deBoisblanc Denny/HOU/ECT@ECT
Subject: U.S. Gas

OK - I hate the solution, but don't see any alternatives to the Master <31
vs. > 31 day problem.

Elena/Mark: Please coordinate as necessary to reintroduce the <31, >31 day
split for U.S. Gas. This means that U.S. Gas Product Types will now be
differentiated based on location (Inside/Outside Texas) and tenor (<31/>31
days). Please amend the MPS and the database as required. Obviously, we would
like for these changes to be accomplished soon, so we can put all this stuff
to bed.

Thanks,

Dave