Bingaman, Senate Energy Chief, Will Block Bush Plan (Update1)
Bloomberg, 06/05/01

USA: TECO breaks ground on 599-MW Arkansas power plant.
Reuters English News Service, 06/05/01

Reuters to Provide Its Customers With EnronOnline Quotes
Business Wire, 06/05/01

UK: Intl bonds-Telecoms suffer despite positive market.
Reuters English News Service, 06/05/01

Natural gas generators considered to ease electricity demand, prices
Associated Press Newswires, 06/05/01

Waste Management to Start Trading Pulp and Paper (Update1)
Bloomberg, 06/05/01

Profile: Power Play, Who's to Blame for the Energy Crisis?; Lowell Bergman,
"Frontline" correspondent, Laura Holson and Joseph Kahn, The New York Times,
discuss the energy crisis
ABC News: Nightline, 06/04/01

Bingaman, Senate Energy Chief, Will Block Bush Plan (Update1)
2001-06-05 10:50 (New York)

Bingaman, Senate Energy Chief, Will Block Bush Plan (Update1)

     (Adds company names in fourth paragraph and details about
contributions in paragraph 23.)

     Washington, June 5 (Bloomberg) -- President George W. Bush
delivered his energy plan to Senator Frank Murkowski last month,
expecting the Alaska Republican to push it more or less intact
through the Senate and on to passage by the House.
     Now the package intended to boost oil and gas production and
ease some pollution controls is in the hands of Jeff Bingaman. The
New Mexico Democrat disagrees with Bush's approach and wants to
start fresh negotiations on what U.S. policy should be.
     Bingaman, 57, who's spent most of his 19 years in the Senate
out of the spotlight, will become chairman of the Energy and
Natural Resources Committee when Democrats take control of the
Senate later this week.
     Bush wants to make it easier for companies like Enron Corp.,
Exxon Mobil Corp. and BP Plc, to build power plants and pipelines
by easing regulations, and he's opposed to regulating the carbon
dioxide emissions blamed for global warming. Bingaman has
introduced legislation to cut emissions to curb global warming.
     The president's proposal to drill in the Arctic National
Wildlife Refuge, in trouble even with Republicans in charge, is
dead as long as Democrats have control. Bingaman has no plans to
consider it.
     Bush opposes caps on energy prices; Bingaman is cosponsor of
legislation to impose caps on wholesale energy prices in
California although, according to a spokesman, he'd prefer the
Federal Energy Regulatory Commission do that on its own.

                         Seeking Consensus

     Bingaman says rather than offer his own plan now, he'll try
to sit down with Republicans and negotiate something both sides
can agree on. There is already agreement on some proposals, such
offering tax credits to encourage domestic drilling and the use by
business of renewable energy technology, such as wind-powered
turbines.
     ``Obviously, I'm going to work for consensus,'' he said.
``There's nothing about much of these issues that should be
partisan.''
     Bingaman says he hasn't decided whether to push a single,
comprehensive energy bill or move issues separately. Democrats may
insist on separate bills for political purposes, said Tim Evans, a
senior energy analyst at IFR Pegasus.
     ``They'll say, `Let's get all of the most vulnerable
Republicans on record supporting drilling and see if they get re-
elected,''' he said.
     Whatever his decision, Bingaman won't meet Murkowski's goal
to have a bill for Bush to sign on July 4.
     ``I'm not anxious to have some artificial deadline so that we
can have a bill-signing ceremony on a holiday,'' Bingaman said.
``I don't think that's the way to legislate.''

                     Visionary or Do-Nothing?

     Throughout his career, Bingaman has made a practice of taking
time to study an issue before acting.
     ``He's something of a visionary,'' said Bruce Black, a former
law partner who became a federal judge in New Mexico after
Bingaman recommended his nomination. ``He sees trends.''
     Opponents see inaction.
     ``He doesn't accumulate much in the way of negatives by not
doing much,'' said John Dendahl, chairman of the Republican Party
of New Mexico.
     Bingaman is a politician who doesn't stray from party
positions, Dendahl said. ``He's not a maverick. He's always been
when the chips are down a straight Democratic voter.'' In 2000,
Bingaman voted with the party leadership 87 percent of the time on
votes in which the two parties took opposing positions, according
to data compiled by Congressional Quarterly.

                        Fundraising Success

     In the Senate, Bingaman's strategy has been to home in on
issues that have been neglected, such as school accountability and
defense research that has civilian uses, work with others, and not
hog the credit.
     ``He wouldn't try to beat it to the front of the class,''
said Ben Alexander, a Bingaman fundraiser.
     That approach appears to have worked: Republicans haven't
been able to budge Bingaman from his Senate seat by appealing to
New Mexicans' distrust of party-line politicians.
     With Alexander's help, Bingaman built a campaign fund that's
helped him fend off rivals. He raised $2.7 million for his 2000 re-
election bid compared with his Republican challenger's $669,000.
     The $295,527 Bingaman got from oil and gas companies and
electric utilities made him the industry's sixth-largest
congressional recipient in last year's elections, according to the
Center for Responsive Politics.
     The oil and gas industry gave $32.6 million overall last year
in campaign contributions. The top contributor, Enron, a pipeline
and energy-trading firm, gave $2.4 million. Exxon, the world's
largest publicly traded oil company, followed with $1.4 million
and BP, the third largest publicly traded oil company, donated
$1.3 million, according to the Center for Responsive Politics.

                     Comparison With Murkowski

     Environmentalists said Bingaman will balance conservation and
production concerns better than Murkowski.
     ``Murkowski wants to jam through an agenda'' to boost
production, said Alyssondra Campaigne, legislative director of the
National Resources Defense Council. Bingaman ``tends to be more
studious and thorough.''
     As chairman, Murkowski has pushed a comprehensive bill that
includes tax incentives to promote the use of alternative energy
and opening 1.5 million acres of the 19-million acres of the
Alaska refuge to oil and gas exploration.
     Bingaman has proposed leasing land in the Gulf of Mexico for
oil production, and that concerns environmentalists.
     ``It would put too much at risk in coastal resources,'' the
NRDC's Campaigne said.

USA: TECO breaks ground on 599-MW Arkansas power plant.

06/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, June 5 (Reuters) - TECO Energy subsidiary TECO Power Services held
a groundbreaking ceremony Tuesday on its 599-megawatt natural gas-fired power
plant in Dell, Ark.
Actual construction on the Dell Power Station began in March, the company
said in a statement.
One megawatt provides enough electricity for about 1,000 average homes,
therefore the Dell plant will provide enough electricity for about 600,000
homes.
National Energy Production Corp. (NEPCO), a subsidiary of Houston-based
energy giant Enron Corp. , is building the plant.
The Dell plant, along with a sister plant, the McAdams station in Kosciusko,
Miss., are designed to interconnect with the Entergy transmission system.
Both will sell electricity to wholesale customers in the Southeast and
Midwest, TECO said.
Dell is expected to begin commercial operation in the second half of 2002.
Tampa, Fla.-based TECO Energy units include Tampa Electric, Peoples Gas
System, TECO Transport, TECO Coal, TECO Coalbed Methane, TECO Propane
Ventures and TECO Solutions. TECO Power Services have announced projects to
serve customers in 18 states, spanning the southern half of the U.S.
TECO Energy has ownership in nearly 11,000 megawatts, operating, under
construction or in advanced stages of development worldwide.
- New York Power Desk, 646 223-6074, fax 646 223-6079, e-mail
Eileen.Moustakis@reuters.com.

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

Reuters to Provide Its Customers With EnronOnline Quotes

06/05/2001
Business Wire
(Copyright (c) 2001, Business Wire)

NEW YORK--(BUSINESS WIRE)--June 5, 2001--Reuters (NASDAQ: RTRSY), the global
information, news and technology group, today announced the launch of a new
service called "EnronOnline Real-Time Quotes." Subscribers of the service
have access on their Reuters screen to real-time EnronOnline quotes for
power, natural gas, crude oil and refined products, bandwidth, metals, coal,
emission allowances, sea freight and weather derivatives. In addition, the
quotes are archived so users can retrieve, track, view and analyze the
information over time using their Reuters desktop tools.
Users - including traders, analysts and others - can view bids, offers, and
midpoints as well as the high, low, closing midpoint and change from the
previous day. Using their Reuters tools, they can create charts, models,
position reports and other analysis. Subscribers will not be able to transact
on the quotes through Reuters.
Phil Lynch, Reuters America Co-Chief Executive Officer, said: "With the
increased volatility in energy markets and the growth in online commodities
trading, the EnronOnline Real-Time Quotes service will provide a
comprehensive source of market pricing for our customers."
Subscriptions to EnronOnline Real-Time Quotes are available to Reuters
customers globally. The service provides quotes on North American and
European markets. Quotes are available in real-time during EnronOnline's
market hours. In global markets such as crude oil, quotes are updated 24
hours a day, seven days a week. More information on this service is available
at www.reuters.com/enrononlinequotes.
Since the November, 1999 launch of EnronOnline, the world's largest commodity
trading website, customers have completed over one million transactions on
the site. Today, EnronOnline transacts over $3 billion daily in energy and
other commodities.

Note to Editors:

Reuters (www.about.reuters.com) premier position as a global information,
news and technology group is founded on its reputation for speed, accuracy,
integrity and impartiality combined with continuous technological innovation.
Reuters strength is based on its unique ability to offer customers around the
world a combination of content, technology and connectivity. Reuters makes
extensive use of internet technologies for the widest distribution of
information and news. Around 73 million unique visitors per month access
Reuters content on some 1,400 Internet websites. Reuters is the world's
largest international text and television news agency with 2,500 journalists,
photographers and camera operators in 190 bureaux, serving 160 countries. In
2000 the Group had revenues of (pound)3.59 billion and on 31 December 2000,
the Group employed 18,082 staff in 204 cities in 100 countries. Reuters
celebrates its 150th anniversary this year.

Reuters and the sphere logo are the trademarks of the Reuters group of
companies.

EnronOnline is a trademark of Enron Corp.

CONTACT: Reuters Nancy Bobrowitz / Felicia Cosby 646-223-5220 / 646-223-5223
nancy.bobrowitz@reuters.com felicia.cosby@reuters.com or Middleberg Euro RSCG
Bill Ferguson / Ayesha Talwar 212-699-2742 / 212-699-2741
williamf@middleberg.com ayesha@middleberg.com
14:07 EDT JUNE 5, 2001

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

UK: Intl bonds-Telecoms suffer despite positive market.

06/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, June 5 (Reuters) - European telecoms firms were hit by rumours of new
issuance and profit taking in the international bond markets on Tuesday while
other industries enjoyed stable prices on good market sentiment.
The Reuters CorpTop index and traders had telecoms spreads - the difference
between the yield on corporate and similarly dated government bonds - between
two and four basis points wider on Tuesday.
Industrial companies and utilities, however, traded two to three basis points
tighter.
The fall in telecoms bonds prices was partly caused by strong indications
from investment banks that Deutsche Telekom is on the verge of launching a
deal for between five and 10 billion euros.
"That rumour has caused some repricing today bu we also have profit taking
after a month-long rally in telecoms prices caused patly by a fall in equity
volatility and partly by a feeling that the harsh part of the storm may have
passed," said one London-based trader.
Telecoms bonds have benefitted from a feeling among many investors that the
immediate danger of credit rating downgrades and further bad news has now
passed.
"Telecoms is a roller coaster but maybe the twists and turns are a little
more gentle than they were four months ago," said one Paris-based trader.
"Also remember that many of these companies are household names and that
attracts the retail market while the possibility of getting a heavier coupon
on further downgrades attracts those out looking for risk," she added.
A good run, however, has triggered some selling as investors look to cash in.
British Telecom's 6.125 percent, February 2006 bond, for example, was trading
two basis points wider on the day, traders said.
Meanwhile, Deutsche Telekom's 6.125 percent July 2005 issue was trading out
seven basis points by 1400 GMT.
Investment banks have been in talks with the German telecom giant for several
months regarding a jumbo bond issue, but Deutsche Telekom's need to make
coupon repayments on outstanding bonds in June and July mean an announcement
is expected soon.
Bankers said they expected the bond to be entirely denominated in euros as
this is where the operator can achieve the best cost of funding.
Deutsche Telekom issued a $14.6 billion transaction last year which was the
largest corporate bond sale ever at the time.
Moody's put Deutsche Telekom's A2 long-term rating on review for a possible
downgrade in March while S&P placed its A-rating on review for a downgrade in
February.
In the primary market insurance firm Swiss Life launched a 300 million euro,
0.50 percent exchangeable bond which can be switched for shares of HSBC
Holdings or Swiss Life itself.
An official from lead manager Lehman Brothers said that the bond was three
times oversubscribed and that a 50 million euro greenshoe - extra bonds held
by the underwriter and released if there is sufficient demand - was also
sold.
The bond was entirely sold to European investors and all buyers where from
major financial institutions, the official said.
Elsewhere in the primary market the European bank for Reconstruction and
Development launched a one billion euro five-year deal. It priced at 52 basis
points over the 4.625 percent May 2006 U.S. Treasury.
Meanwhile, Energy giant Enron sold 10 billion yen due 2004.
British supermarket chain Sainsbury announced that it plans to launch a
benchmark euro bond in the near future. Deutsche Bank and HSBC will lead the
transaction.

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

Natural gas generators considered to ease electricity demand, prices

06/05/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

EUGENE, Ore. (AP) - Natural gas generators could ease demand and prices for
electricity in the southern Willamette Valley, where businesses and utilities
are bracing for skyrocketing rates and power shortages.
The biggest proposal is a 500-megawatt power plant that Texas energy giant
Enron Corp. may build on industrial property in the Coburg area, possibly on
the site where Willamette Industries runs a wood products plant.
By comparison, Eugene and neighboring Springfield use a total of about 450
megawatts.
The rest of the proposals are for smaller operations that mostly would be
connected to local businesses and mills.
"Everyone's looking for power," says Frank Lambe, general manager of the
Emerald People's Utility District.
Even if the Enron plant is built within Emerald's service territory, it
doesn't mean the local utility would get any of the power.
Enron, with revenues of more than $100 billion, typically sells power to the
highest bidder.
In fact, an Enron plant likely would require Emerald to buy another 10
megawatts of electricity on the open market to run the plant's lights,
heating and other needs.
Emerald board member Katherine Schacht, who represents the Coburg area, said
she's concerned that the power from the Enron plant would go to California
rather than helping meet local energy needs.
She also said "there are a lot of questions that need to be asked and
answered" about the plant's impact on water, air quality and other issues.
The Enron plant would be similar to those now under construction in the
Hermiston area and in Klamath Falls. Those plants are several stories high,
emit large amounts of carbon dioxide and consume between 2,000 and 2,400
gallons of water a minute.
Carbon dioxide, a greenhouse gas, isn't a regulated pollutant.
Enron and the businesses considering their own generators would buy natural
gas from the main north-south pipeline that runs down the Willamette Valley.
The plans are only preliminary, but they illustrate growing concern about
future price increases that could reach 100 percent this fall and worries
that the region will suffer energy shortages for the next several years.
Many businesses also see a chance to make money by generating electricity in
a market with wholesale prices that have jumped over $300 a megawatt - 10
times the going rate a year ago.
Enron hasn't applied for any permits for a plant in the Eugene area, nor has
the company given the state an official notice that it intends to build the
plant.
But Enron has notified the Bonneville Power Administration, the federal power
marketing agency in Portland that supplies the Northwest with half its
electricity, that it is considering building the plant.
If Enron does build a plant in the Eugene area, it would need a permit from
the Lane Regional Air Pollution Authority to emit nitrogen oxides and any
other contaminants.
A large plant also would need approval from the Oregon Energy Facilities
Siting Council, as well as local jurisdictions if it requires land use
changes.

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

Waste Management to Start Trading Pulp and Paper (Update1)
2001-06-05 16:15 (New York)

Waste Management to Start Trading Pulp and Paper (Update1)

     (Adds closing share price.)

     Houston, June 5 (Bloomberg) -- Waste Management Inc., North
America's largest trash hauler, formed a pulp- and paper-trading
group to help control the risk of price swings from its recycling
business.
     The largest recycling company, Houston-based Waste Management
expects trading to begin in the third quarter, the company said in
a Business Wire release. It runs 190 facilities for collecting
such items as paper, plastic, glass and aluminum.
     Trading will begin gradually as the company emphasizes
management of the 4 million tons of paper it handles annually,
President A. Maurice Myers said in the statement.
     Other companies also have begun trading in pulp and paper
items such as old newspapers and corrugated containers. Enron
Corp., an energy-trading and pipeline company, is applying its gas-
and power-trading models to paper. It owns a newsprint mill in
Garfield, New Jersey, and another in Canada.
     Waste Management shares rose 56 cents to $28.40. The company
had sales of $12.5 billion last year.

Profile: Power Play, Who's to Blame for the Energy Crisis?; Lowell Bergman,
"Frontline" correspondent, Laura Holson and Joseph Kahn, The New York Times,
discuss the energy crisis

06/04/2001
ABC News: Nightline
(c) Copyright 2001, American Broadcasting Companies, Inc. All Rights Reserved.

Announcer: June 4th, 2001. CHRIS BURY host:
Rolling power blackouts, bankrupt utilities, skyrocketing electricity prices.
Unidentified Man #1: It is the most volatile commodity in the world.
BURY: Are power generators gouging consumers?
Unidentified Woman #1: I think it's pretty appalling that the folks who sell
us power can charge whatever they want.
Mr. KENNETH L. LAY (Chairman, Enron): And every time there's a shortage or a
little bit of a price spike, it is always collusion or conspiracy or
something. I mean, it always makes people feel better that way.
BURY: And right in the middle, a federal agency you've probably never heard
of.
Mr. CURTIS HEBERT (Chairman, Federal Energy Regulatory Commission): They
didn't build this monopolistic system overnight, and we won't change it
overnight either.
BURY: Tonight, Power Play, Who's to Blame for the Energy Crisis?
Announcer: From ABC News, this is NIGHTLINE. Substituting for Ted Koppel and
reporting from Washington, Chris Bury.
BURY: California is known as the great American incubator. From hem lines to
Hula-Hoops, the Golden State gives birth to trends that often spread east.
That is why so many states are paying close attention to California's
troubled attempt at deregulating electricity. Last week, California Governor
Gray Davis asked President Bush for help in the form of a price cap on power
companies. The president said no. Now Governor Davis is threatening to sue
the federal agency that regulates electricity prices. More on that later.
But first, the results of a new ABC News/Washington Post poll. It suggests
that President Bush is developing an energy problem. When asked what they
think of the president's performance on energy, a clear majority, 58 percent,
say they disapprove. That's up 15 percent since Mr. Bush released his energy
plan. When asked if they think the United States is heading into an energy
crisis, six in 10 Americans answer yes.
TEXT:
ABC News POLL The Washington Post
Margin of Error +-3.0%
How do you rate the president's performance on energy?
June 3 May 13
Disapprove 58% 43%
Do you think the US is heading into an energy crisis?
Yes 61% No 36%
BURY: California is already there. For months now, The New York Times and the
public broadcasting program "Frontline" have teamed up to investigate. Their
collaboration, "Blackout," airs tomorrow night on many PBS stations. It
documents a colossal mismatch in the brand new game of buying and selling
power on the open market. It's like the New York Yankees against the Toledo
Mud Hens.
Unidentified Woman #2: We didn't use his five because their minimum was, you
know, higher than what we were willing to pay.
Unidentified Man #2: I'll sell you 108 now.
BURY: (VO) On one side, companies such as Enron, the Texas energy broker,
trade electricity like any other commodity. A sophisticated trading operation
buys and sells billions of dollars worth of energy every day. It's the
largest company of its kind in the world.
Unidentified Man #3: See what I'm saying?
KELLY: CRS. This is Kelly.
BURY: (VO) On the other side, in this converted department store in
Sacramento, is California's trading team.
Unidentified Man #4: This is the operations center. This is the--this is the
location where we make energy purchases and fill the state of California
energy requirements.
BURY: (VO) Here, employees drafted from the state's water department go
head-to-head with the pros from Enron and other companies. Since 1999, the
cost to California has skyrocketed from $7 billion to an estimated $60
billion this year, an increase of 750 percent. And the demand for
electricity, up less than 5 percent.
(OC) In their documentary, reporters for The New York Times and "Frontline"
address a fundamental question, who's to blame? Narrating this segment is
"Frontline" correspondent Lowell Bergman.
Unidentified Man #5: Our forecast reserves look like they'd be pretty thin
over the peak as well.
Unidentified Man #6: How much is...
LOWELL BERGMAN reporting:
(VO) The power industry blames the high prices on shortages brought on by
California's failure to build any major power plants over the last decade,
despite a booming economy.
Mr. LAY: I mean, we have a supply/demand imbalance. Too much demand, too
little supply in California.
BERGMAN: (VO) Not everyone agrees. Consumer advocates in California accuse
the generators of actually withholding supply.
Ms. NETTIE HOGE (Executive Director, TURN): The idea that all of a sudden we
had a supply crunch is preposterous. What happened is, all of a sudden, the
new plant owners and the traders, like Mr. Lay's organization, looked at the
data and figured out how to manipulate the market. As soon as that happened,
the prices never went down again. If it was totally a supply problem, why
would we have excess prices at 5:00 in the morning on Christmas Day when
nobody but Santa is working?
BERGMAN: (VO) The generators, in turn, say they shut down plants for routine
winter maintenance.
Mr. LAY: Every time there's a shortage or a little bit of a price spike, it's
always collusion or conspiracy or something. I mean, it always makes people
feel better that way.
BERGMAN: But you know as well as I do that the price--it's nice for a
business.
Mr. LAY: Yeah.
BERGMAN: You're in the business of--of making money for your shareholders.
Mr. LAY: Mm-hmm.
BERGMAN: Right, as a company?
Mr. LAY: Yeah.
BERGMAN: So you would be foolish, as you said, to turn down the kind of money
you could make this past winter in California. Is--isn't there a...
Mr. LAY: I--I--I think you put words in my mouth out there.
BERGMAN: OK.
Mr. LAY: I said we--we made some money in California. We made some money
across the country and around the world. I mean, and as I tell my friends in
California, Enron was doing quite well before California imploded.
Unidentified Man #7: So you can't blame the Enrons. I mean, they're the
guys--that's--that's what they do. They try to make as much money from the
money that they get invested. You blame the regulators.
BERGMAN: (VO) Across the country, tucked in an out of the way building behind
Union Station in Washington, DC, sits the Federal Energy Regulatory
Commission or FERC. FERC's commissioners are appointed by the president and
control a $250 billion energy sector critical to America's economy. With the
coming of deregulation, state control over wholesale electricity rates passed
to the federal government, making FERC the final arbiter of just and
reasonable rates. It's a power FERC has been reluctant to use.
Curt Hebert is a protege of Senator Trent Lott, who convinced President
Clinton to appoint Hebert to the FERC in 1997. In January, President Bush
made him the FERC chairman, and Hebert has made no bones about where he
stands on free markets.
Mr. HEBERT: The rules of competition govern that economies work, that choice
works. It's why we're American. We inherently like choice. It's why we left
the mother country. We didn't like the rules they were setting. We wanted to
make our own rules. We want our own choices and we believe that works.
BERGMAN: OK, but is electricity different?
Mr. HEBERT: It's a transition . It takes some time. Look, they didn't build
this monopolistic system overnight, and we won't change it overnight either.
Mr. WILLIAM MASSEY (FERC Commissioner): Without some effective price control
this summer, I fear for the worst.
BERGMAN: (VO) William Massey is a FERC commissioner, a Democrat, who has
found himself in opposition to his chairman.
Unidentified Man #8: Mr. Massey, what is the nub of the disagreement that you
have with Mr. Hebert?
Mr. MASSEY: I think what it boils down to is a philosophical disagreement
about the role of my agency in ensuring just and reasonable prices.
I think it's long past time for this agency to step in and--and impose a
temporary time out on the markets.
Mr. HEBERT: Well, that is the problem because these people are saying
temporary, but they don't mean temporary. It's kind of like the temporary
rent control you have in New York. It's not temporary at all. Matter of fact,
you know, in Washington, DC, we don't do temporary very well, and that's a
problem.
BERGMAN: (VO) In fact, late last year, after six months of unrelenting high
prices in California, the FERC finally did declare California's rates unjust
and unreasonable, but took no action.
Governor GRAY DAVIS (Governor, California): So they found these people guilty
a year ago. They just haven't agreed on the sentence.
BERGMAN: Well, we talked with Curt Hebert. And we got...
Gov. DAVIS: Well that's, you know.
BERGMAN: That's what?
Gov. DAVIS: Lots of luck.
BERGMAN: What do you mean, "Lot's of luck"?
Gov. DAVIS: Because...
BERGMAN: He's the federal--he's the guy you are turning to to give you the
money.
Gov. DAVIS: He is the chairman of the commission. But he has not been overly
sympathetic to California. He's more of an ideologue than a problem solver.
BERGMAN: Well, he's saying you just want him to give you short-term relief,
price caps, which won't solve the problem.
Gov. DAVIS: Problems meaning fattening the balance sheet of already
enormously wealthy energy companies.
BURY: How much blame do the energy companies really deserve?
BERGMAN: Watch your--your heating bills, your natural gas bills, which are,
to a certain extent, reflected in your electricity bill. And don't think that
this couldn't happen where you are.
BURY: And how much of this energy crisis did California bring upon itself?
Those questions when we come back.
Announcer: This is ABC News: NIGHTLINE, brought to you by...
(Commercial break)
BURY: Joining us from Boston, Lowell Bergman, the correspondent for
tomorrow's "Frontline" broadcast. From our Los Angeles bureau, Laura Holson,
a business correspondent for The New York Times, who's been covering the
California energy crisis. And here in Washington, Joe Kahn, who reports on
energy and economics for The New York Times.
Laura, just before the break, we heard California Governor Davis blaming the
energy companies and the federal regulators. How much of his argument is
sinking in. In other words, whom do Californians blame for this?
Ms. LAURA HOLSON (The New York Times): The interesting thing is Californians
blame everybody for this ap--for what has happened with the energy crisis.
They blame the governor for not responding quickly enough to a crisis that
started, you know, a year ago, if you really, you know, look at when prices
starting going up. They are angry at their utilities who they feel have
failed them. They have often had very close kind of paternal relationships
with their utilities and they feel that they've been cheated. And they are
very angry with the power generators, in particular, who they feel are
charging them just exorbitant amounts for energy.
In particular, there was a company last week, a power generator that said it
charged consumers, rather the utilities, 4,000, nearly $4,000 per megawatt
hour, which is enough to light a thousand homes for one hour. And when they
heard this, they were outraged. They just thought, you know, `How can this
be? How can we get,' in their terms, kind of ripped off by power generators
who are using them to make, you know, a lot of money.
BURY: Joe Kahn we heard those poll numbers from this survey out tonight
suggesting that President Bush has a bit of a public relations problem on
energy. How is that going to affect the politics here in Washington?
Mr. JOSEPH KAHN (The New York Times): Well, clearly the--President Bush and
the White House are calculating that by the time people have to go to the
polls to select a new president, a slew of new power plants will be online in
California. Electricity prices, presumably, will come down quite a bit and
their free market stance on this will not ultimately cost him at the polls.
It's not as clear that Republicans in the Congress have the same commitment.
This has already been a very turbulent time in Washington with the Democrats
now in control of the Senate. I think you can expect to see a legislative
initiative by the Democrats to introduce some kind of price caps in
California. Some Republicans may sign on to that. Some have already indicated
that they will. It's going to be a real knockdown political flight--fight in
Washington over what the strategy ought to be.
BURY: Lowell Bergman, talk a little bit about that free market activity that
Joe just mentioned. We saw the clip from your documentary with the--the
traders from Enron pitted against the--the buyers from California. And I must
say, it really did look like a mismatch.
BERGMAN: Well, in fact, some of the people at Enron told us that they welcome
the day when PG&E and Southern California Edison, the regular utilities get
back in the marketplace because they do feel like they've got them, if you
will, outgunned. And--but I should point out to the audience, that when Laura
was talking about this $3800 a megawatt hour, which was Duke Energy Company,
the normal price, if you will, the standard price for a megawatt hour was
around 40 or less. So the level of profit that we're talking about is what
people are upset about. And the problem here is--is primarily that in a free
market and the way that the marketplace in California is set up in
particular, there's no limit to what could be--could be charged when you get
close to that area of scarcity with electricity. Electricity truly is
different and as Jeff Skillings says in our documentary, he's the CEO of
Enron, it is the most volatile commodity in the world.
BURY: Yet, at the same time, Joe, we are seeing electricity traded as if it
were oil or soybeans or steel. I mean, how is electricity different?
Mr. KAHN: Well, for economic reasons, it's different in a--in a couple of key
respects. For one thing, it's an absolutely vital commodity. People aren't
prepared to do without it. Moreover, electricity powers every other part of
the economy. So, it's one of these sort of fundamental rights that we have.
In fact, as far back as the New Deal, Franklin Roosevelt made clear that
electricity was so important that it would be subject to federal legislation
guaranteeing everybody in this country just and reasonable electricity
prices.
BURY: But just and reasonable electricity prices, Laura, do you want to pick
up the question of well, who determines what's just and reasonable here?
Ms. HOLSON: Well, it's very clear that President Bush believes that the
market, you know, sets what's just and reasonable. And, you know, that has
not been what Governor Davis has said at all. He believes that because this
is a commodity that people, you know, believe is guaranteed that there should
be some price cap on it. It's an interesting, if you will, situation when
business and politics kind of intersect. Governor Davis said very early on
that he did not want two things to happen in California. One is that the
utilities would go bankrupt and the second was that rates would be raised for
consumers. And he's in a very tight spot right now because those two things
that he did not want to happen indeed have happened. And it only looks like
it will get worse this summer when experts have said Californians can expect
another 260 hours of blackouts.
BURY: Laura, we have to take a break. But when we come back, we want to
address the question of whether power companies are doing what just comes
naturally to them. Back with our guests in a moment.
(Commercial break)
BURY: We're back with "Frontline"'s Lowell Bergman and Laura Holson and Joe
Kahn of The New York Times.
Joe, aren't these power companies doing exactly what they are supposed to be
doing, which is maxi--maximizing profits and to get the biggest return for
their shareholders?
Mr. KAHN: Sure. That's their responsibility. They--they have no excuse for
arbitrarily lowering the price that they could charge for electricity if the
market will bear a higher price.
BURY: Lowell Bergman, in your documentary, do you find any evidence that the
power companies are--are gouging consumers or doing anything illegal?
BERGMAN: Well, illegality, no one really has any serious evidence, although
there have been lots of allegations and there's been lots of speculation
about it. But we should also point out in the documentary and in The Times
that some of the companies are starting to realize, it seems, that even
though they are owed hundreds of millions, in some cases $500 million or more
still by these bankrupt utilities, they're going to have to take a hair cut
as Governor Davis describes it. They're going to have to make some bargain.
And I think we may...
BURY: Let me jump in there. What do you mean they're going to have to get a
hair cut?
BERGMAN: Well, apparently, that's Governor Davis's way of telling them that
they're going to have to take less to a--less than a full dollar payment for
what they are owed, and that there has to be some kind of settlement here of
between the various parties, other we're not--otherwise we won't see any
progress.
BURY: Lowell, one of the old cliches in investigative reporting is follow the
money. And much has been made of this argument that the Bush administration,
accusations have been made, that the Bush administration is too cozy with the
power companies and the power company regulators. What did you find in your
reporting?
BERGMAN: Well, we found that Vice President Cheney was very up front about
it, I mean, about his relationship with Ken Lay, the head of Enron, the fact
that he built a stadium for Enron when he was head of Halliburton. You know,
the vice president is the first CEO of a Fortune 500 company to hold
presidential office in the history of the United States. So--but they are
very open and up front and balance this relationship with their friends and
with the people who they feel comfortable with.
BURY: Laura Holson, this idea that so many Texas companies are profiting from
California's misery, as it were, I suppose Californians find that
particularly infuriating.
Ms. HOLSON: It's funny, in the San Francisco Bay area when I was growing up
near there, there was this great rivalry between the San Francisco 49ers,
which is, as we all know, a football team and the Dallas Cowboys. And that
seems to be replaced, if you will, with consumers in California who look at
Texas gen--at, you know, a lot of the power generators, which are based in
Texas, and who they feel now are just, you know, making a lot of money off
them. It's--there's always been a rivalry between those two states. And now I
think it's deeply personal because it's hitting consumers, or as they believe
it, it's hitting them in their pocket books.
BURY: Joe Kahn, how long before these new power plants are going to be coming
on line? And before they do, or in the time before they do, what--what is it
that the federal government can do to help California out?
Mr. KAHN: Well, it--it will probably be about 18 months before sufficient new
power comes online in California to start substantially changing the supply
and demand equation there. And that's a very speedy pace. That's with a very
expedited permit process for new plants. The governor in California has put a
lot of effort into building new plats--plants quickly.
BURY: So what happens between now and then?
Mr. KAHN: Well, that's the question. That's the debate. The Federal Energy
Regulatory Commission has the power under the Federal Power Act, in fact some
people argue it has the obligation under the Federal Power Act to ensure that
just and reasonable electricity rates prevail in California at all times. It
can't just selectively choose the times. And it has already found at the end
of last year that rates in California are unjust and unreasonable.
BURY: So what's it doing about that?
Mr. KAHN: Well, it's--it's tried a variety of compromise measures so far,
very limited price controls on certain kinds of electricity sales during
emergency hours. So far that appears to be an insignificant contribution to
reducing the overall electricity bill in California.
BURY: Laura, Governor Davis is demanding wholesale price controls. President
Bush has made it pretty clear that he's not going to lean that way. What
options does Governor Davis have?
Ms. HOLSON: You know, it's--again he's stuck in this place where it--it
doesn't look like he's got any kind of real out. I mean, he can try to
demand. He can demand as much as he wants from the power generators, but if
the federal government doesn't step in, he really can't do anything. The
interesting thing, at least I see kind of going forward, is how Californians
have really adapted to a really, you know, awful situation. There's a law
that's being proposed right now in California in which businesses will know
months in advance whether their neighborhood is going to be impacted by a
blackout so they can plan. I mean, we've almost turned into--if anybody
remembers traveling through Italy during their college days, you always kind
of knew when the airlines or the trains were going to go on strike because
they told you a day ahead of time. And that's very much what's happening in
California where they're warning people, you know, two days, an hour, you
know, one day ahead of time so that they can prepare.
BURY: That's a pretty dark scenario. Lowell, we just have a few seconds left,
what lessons should the rest of the country take from California's crisis?
BERGMAN: Well, watch your--your heating bills, your natural gas bills, which
are to a certain extent reflected in your electricity bills. And don't think
that this couldn't happen where you are. And I think that the industry itself
is beginning to understand that the crisis in California may, in fact, impact
on the future of deregulation nationally.
BURY: Lowell Bergman, Laura Holson, Joe Kahn, thank you so much for joining
us tonight.
BERGMAN: Thank you.
Mr. KAHN: Thank you.
Ms. HOLSON: Thank you.
BURY: When we come back, an update on a NIGHTLINE broadcast from just over a
month ago.
Announcer: To receive a daily e-mail about each evening's NIGHTLINE and a
preview of special broadcasts, logon to the NIGHTLINE page at abcNEWS.com.
(Commercial break)
BURY: In May, we profiled the case of death row inmate Johnny Paul Penry,
convicted of murdering the sister of a former pro football player. Today, the
Supreme Court overturned Penry's death sentence. It ruled, six to three, that
the jury did not have clear instructions on how to weigh his mental
retardation when it sentenced him. The court will take up the broader issue,
whether executing the mentally retarded is cruel and unusual punishment, in
its next term.
That's our report for tonight. I'm Chris Bury in Washington. For all of us
here at ABC News, good night.

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


John:
Please see the enclosed letter.
carol


Christie,

I am forwarding you a message I have received from the University of Houston.
Can you help them? We have a very good relationship with the UoH.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/24/2001
05:14 PM ---------------------------

Aisha Jamal <aisha@uh.edu> on 04/23/2001 03:15:29 PM
Please respond to aisha@uh.edu
To: vkamins@ect.enron.com
cc: mmfoss@uh.edu
Subject: Dr. Michelle Foss- Energy Institute

Dear Mr. Kaminski,

I am writing to ask a favor for Dr. Michelle Foss. As you know we will
be running our "New Era" program from May 14- May 25th. Dr. Foss was
wondering if on May 22nd (between 1:30pm and 4:00pm) , we would be able to
bring
our participants for a tour of your trading floor. At this time we will have
30-40 people, and since only 10 people maximum should really be on a
trading floor we need to have 4 companies among which to divide our
participants. At this time, we have a floor from Coral Energy, and are
working with Duke,
and I will be contacting Mr. Paul Roberts to arrange for the Reliant Energy
trading floor. I was hoping very much that you would be able to direct
me to the right person to contact to arrange this tour. Will this be a
possiblity? I really appreciate your help very much. Thank you!

Best Regards,

Aisha Jamal
Energy Institute
713-743-4634


Dear Ben:

Its nice hearing that you are doing well and that you are taking MBA
finance classes --- are these at U. of Houston?

The admissions people mentioned that your GMAT score was too low when you
applied last year.  They said that if you had a higher GMAT score we could
consider you as a special case because of your background in energy
finance.  Basically, my impression was that you didn't need to have a score
close to the 660 median, but you need to improve a lot.  I would also
recommend that you work more on the quantitative sections, since it is
clear to me that your verbal skills are quite good.

Keep in touch.

regards,

Sheridan

At 10:52 AM 10/2/00 -0500, you wrote:
>
>Professor Titman:
>     I hope you had an enjoyable summer and it didn't go too quickly.   I
>hope you remember who I am from last years application process.  I enjoyed
>meeting you last year and talking with  you regarding the curriculum and
>admissions process.  I wanted to let you know that I am still very much
>interested in attending the Business School.
>     I took your advice this summer and took a graduate level finance class
>(Financial Management), which I received an A.  I was very pleased with
>myself, because I had not taken this type of class in quite some time.  I
>have decided to take another graduate level finance class (Macroeconomics),
>which I am currently taking and runs through December.
>     I also sent my information regarding my learning disability into GMAC
>to try and receive a "special testing status" for the GMAT.   I am
>currently waiting to hear back from them with their decision.
>     As you can see, I am still very much interested in attending the
>Business School for next year and I'm in the process of doing whatever I
>can to increase my application profile.  I am also sending an e-mail to
>Carl Harris, who heads up the admissions process  to inform him of these
>recent developments.
>     Please let me know if there is anything else you think I need to do to
>enhance my application profile.   Again, I hope all is going well and I
>look forward to hearing from you soon
>
>Regards,
>
>Ben Rogers
>Enron Corp.
>
>P.S. David Martin says hello!
>
>
Sheridan Titman
Department of Finance
College of Business Administration
University of Texas
Austin, Texas 78712-1179

512-232-2787 (phone)
512-471-5073 (fax)

titman@mail.utexas.edu


Mark,
     I hate losing Steve, but the most important thing is keeping him here.  As you know, he was an EDS employee assigned to Enron until about 1999.  As such, he didn't receive all of the equity upsides that his counterparts did.  I know a lot of people  have, and will continue to, make runs at Steve.  So do what you can to keep him a happy Enron employee.  Thanks.

Dan

-----Original Message-----
From: Pickering, Mark
Sent: Friday, October 19, 2001 2:18 PM
To: Horton, Stanley; McCarty, Danny
Subject: Net Works Organizational Announcement

Stan/Danny,

I tried to call you today to let you see the announcement I am running on a number of org changes including Steve Hotte. Unfortunately you were both in the air and I am away next week, so I've run it anyway. I'm pretty sure we have all the bases covered and  you guys wont have any problem with it.

Best Regards

Mark Pickering
Chief Technology Officer

Enron Net Works, LLC

  _____


Thanks for the quick turnaround. I will take a look at this today.
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)


What pipe is this off of or is it split up between several??

pdrexel@columbiaenergygroup.com on 12/27/99 02:03:03 PM
To: Dan Junek/HOU/ECT@ECT, Chris Germany/HOU/ECT@ECT
cc:
Subject: January 2000 Volume

---------------------- Forwarded by Paul Drexelius/CES/ColumbiaGas on
12/27/2000 02:09 PM ---------------------------

Heidi Boyd
12/27/99 02:04 PM

To: 8145895507&Lori Bunce&BeldonBlake@mailfax
cc: Noel Bartlo/CES/ColumbiaGas@ColumbiaGas, Paul
Drexelius/CES/ColumbiaGas@ColumbiaGas, John Singer/CES/ColumbiaGas@ColumbiaGas
Subject: January 2000 Volume

Hi Lori,

I believe we are still pulling our Local Production from you behind NYSEG,
please let me know ASAP if you disagree.

I am going to pull    1620 dth's/day  , again, let me know if this creates a
problem for you.

Thanks!


Brett, this looks fine.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 12/18/2000
05:10 PM ---------------------------

Brett R Wiggs@ENRON
12/18/2000 04:50 PM
To: David W Delainey@ECT
cc:
Subject: Additional Language

Dave:

The following is the additional language I discussed.  Please let me know if
this is acceptable.

Thanks,
Brett

Section 24.14 Purchase Option.  Within ninety (90) Days following the
Execution Date, each of PETROBRAS and SFE agree to discuss the potential
option of PETROBRAS or one of its Affiliates to purchase all of the
outstanding equity interests in SFE following the Term of this Agreement.
Each of PETROBRAS and SFE agree that unless definitive documentation is
executed regarding such potential sale, no such discussions shall be binding
on either PETROBRAS or SFE. Each of PETROBRAS and SFE shall have no
obligation to enter into any transaction regarding such proposed sale.
Nothing in this Section 24.14 shall be deemed as a condition to the
performance of any Party under this Agreement and the failure to effect such
sale shall in no way relieve any Party of any obligation set forth herein.


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What people know:

Hertzberg (et al's) bill (82XX)was heard in an "informational" hearing today
and still sits in the Assembly Energy Committee.  It will be heard again
tomorrow (perhaps beginning at 10 AM) , at which time parties will have a
chance to support/oppose and ask for amendments.  Most, including us, oppose
unless significantly amended.
The Wright (D) -Richman (R) bill (83XX)was heard in an "informational"
hearing today and still sits in the Assembly Energy Committee.  It will be
heard again tomorrow, at which time parties will have a chance to
support/oppose and ask for amendments.  From our perspective, this is the
best bill out there yet, though it still has serious problems---it isn't
available electronically yet, but should be tomorrow, and I'll distribute
then.  The chances of the joint D-R bill being successful are slim, however,
since it's up against the Speakers competing bill.  There is talk that the
Speaker will try to negotiate with Wright/Richman tonight and include any
agreement in his bill (82XX).
The original version of the Governor's MOU bill sits in the Senate.  Most
believe that Burton will put it up for a vote this week and it will fail.
The Senate's version of the MOU (Sher-Peace-Kuehl) (78XX)came out today.  It
will likely be heard in the committee tomorrow or the next day.  Notably, it
kills Direct Access completely and makes Edison shareholders responsible for
that portion of Edison's debt owed to suppliers.  In short, a very bad bill.
Burton's 18XX, which would de-link the bond issuance (to pay back the General
Fund) from the DWR contracts is likely to pass the Senate tomorrow or the
next day.  Many--including Enron--support the bill (though we are supporting
it behind the scenes).

What people don't know:
Whether there's the time or the will in the Assembly and Senate to achieve by
Friday a single, comprehensive bill that can be sent to the governor for his
signature.
Whether the Legislature would postpone its month-long recess if the
Legislature hasn't finished a bill by Friday (most folks think they will not
postpone).
Whether it's true that, irrespective of the energy issue, the Legislature
will fail to get the budget completed by Friday and therefore have to
postpone their recess anyway, in which case they might continue to work on
the energy legislation at the same time.

Odds-makers still say it's better than 50-50 that the Legislature does not
get the Edison bills done by Friday and leaves on on its 30-day vacation.

Best,
Jeff

Sacramento is one goofy place.


Nice thought,  but Lay spiked the Treasury rumor right after I started it.
Bummer, that bag boy job would have been a lot of fun.  And to think I
started out as Dave Hooker's bag boy!!!  DF

"Hooker, David" <dhooker@caes.net> on 12/15/2000 02:47:13 PM
To: Drew.Fossum@enron.com, Alan Jenkins <ajenkins@lanlaw.com>
cc: dhill@bspmlaw.com

Subject: RE: Fossum news rocks Enron stock

Ken will likely require professional counsel as Sec. Treas. Could be an
opportunity for the Fossum's to return to the toilet bowl, I mean DC, as
Ken's bag boy.

-----Original Message-----
From: Drew.Fossum@enron.com [mailto:Drew.Fossum@enron.com]
Sent: Wednesday, December 13, 2000 5:33 PM
To: Alan Jenkins
Cc: dhill@bspmlaw.com; Dhooker@caes.net; dfossum@enron.com
Subject: Re: Fossum news rocks Enron stock

Dammit Jenkins, don't even joke about stuff like that!  If the market ever
realized that I worked here, the stock would go down $10!!!  You think Lay
is taking the first step toward Sec. Treas. in the new Bush admin???
That's the rumor I heard a month ago.  Hope all goes well for you in sunny
hotlanta.  Its 5 below zero here today so your whole Georgia good ole' boy
lifestyle thing sounds pretty attractive.  AMF  DF

"Alan Jenkins" <ajenkins@lanlaw.com> on 12/13/2000 04:35:48 PM

To:   dhill@bspmlaw.com, Dhooker@caes.net, dfossum@enron.com
cc:

Subject:  Fossum news rocks Enron stock

I trust you guys saw this on the wires today:

Enron's stock was off $3-3/16 or 4.1 percent in afternoon trading at $74,
following an announcement that Jeff Skilling will become its new chief
executive officer on Feb. 12. An analyst, who asked not to be named, said
that it had been widely assumed that Drew Fossum would be named CEO;
therefore, the company's stock traded lower on the news.


Dear Paul,

With reference to the message below and further to my fax to Mr Sanabria
dated 25th September (copied to you), could you please follow up the latest
status with him, as I have not received any direct communication from him
as to why this invoice is still outstanding.

I would appreciate your urgent attention to this matter.

Regards,

Debbie

"Y'Barbo, Paul" <Paul.Y'Barbo@enron.com> on 02/08/2001 21:05:37

To:   <dynegyuk@dynegy.com>
cc:

Subject:  FW: Invoice 11-AR-9281-9PC

Please forward to Debbie Alleyne.   Thanks.

>  -----Original Message-----
> From:   Y'Barbo, Paul
> Sent:   Thursday, August 02, 2001 12:12 PM
> To:     'debbie.alleyne@dynegy.com'
> Cc:     Sanabria, Jaime; Maltes, Miguel
> Subject:     Invoice 11-AR-9281-9PC
>
>
> Debbie,
>
> I have forwarded the above invoice ($61,621.83) for payment to Jaime
> Sanabria of EcoElectrica. Jaime's contact numbers are Telephone (787)
> 759-0203 and FAX (787) 282-0986. Please let me know if I can be of
> further assistance.
>
> Regards,
>
> Paul

**********************************************************************
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.
**********************************************************************


Got a question about Enron or what our businesses are doing?  Ask Jeff Skilling!  Join him for an Office of the Chairman "open mike" session today (May 30) on eSpeak at 10 a.m. Houston time.
Can't make the live event?  No worries.  Go to eSpeak (http://ethink.enron.com/eSpeak/exec/default.asp) now and submit your question.  Jeff will try to answer it during his event and you can read the transcript later.

Cost cutting ideas are still coming into the Thinkbank (http://nahou-lnapp01.corp.enron.com/eThink/Thinkbank.nsf/HomePage?OpenPage).  We know you've got some great ideas tucked away in that brainy head of yours -- deposit them into the ThinkBank!

There's some fiesty conversations going on in eMeet http://nahou-lnapp01.corp.enron.com/eThink/eMeet.nsf.  Start your own today!


John

It seems the fates were against us meeting up! you were in Singapore while I
was in Houston. I really do hope we get to meet up sooner rather than later.

I did get the chance to meet with Stuart and had what I thought was a very
fruitful discussion on, among other tings, MT Pacific Valour. I hope you have
both had the chance to speak about it since. I understand Richard has been
trying to catch you to discuss the matter as well, but both your busy
schedules have prevented it.

Richard and I would very much like to get your take on the situation at
present. Whilst it is clear that if a commercial solution is met with Hyundai
we would not be able to claim against our contracting counterparty under the
C/P, I understand from Stuart that a commercial solution may not be in the
offing. If so, our option would be to commence arbitration against the
contracting counterparty under the C/P .Present information indicate the
contracting counterparty to be MTM Shipmanagement which has substantial
assets sufficient to meet our claim (which is relatively small although not
insignificant). Arresting the vessel would therefore not be necessary since
it is simply a tool to obtain security for the claim.

Hope to hear from you soon.

Regards

Matt


Start with Joe hillings in DC

To: Steven J Kean/HOU/EES@EES
cc:
Subject: MEC

Steve,

What are your thoughts on public subsidies/tax breaks for MEC?  Who should I
contact to discuss the possibilites for some tax advantages on new facilities?

Thanks,
Mark


----- Forwarded by Jeff Dasovich/NA/Enron on 03/13/2001 05:11 PM -----

	"Katie Kaplan" <kaplan@iepa.com>
	03/13/2001 03:13 PM

		 To: "'Andy Brown (E-mail)'" <ABB@eslawfirm.com>, "'B Brown Andy (E-mail)'"
<andybrwn@earthlink.net>, "'Baker Carolyn (E-mail)'"
<cabaker@duke-energy.com>, "'Bob Escalante (E-mail)'"
<rescalante@riobravo-gm.com>, "'Bob Weisenmiller (E-mail)'"
<rbw@mrwassoc.com>, "'Curtis Kebler (E-mail)'"
<curtis_l_kebler@reliantenergy.com>, "'Douglas Kerner (E-mail)'"
<DKK@eslawfirm.com>, "'Greg Blue (E-mail)'" <gtbl@dynegy.com>, "'Jan
Smutny-Jones (E-mail)'" <smutny@iepa.com>, "'Jean Munoz (E-mail)'"
<jmunoz@mcnallytemple.com>, "'Jeff Dasovich (E-mail)'"
<Jeff.Dasovich@enron.com>, "'Joe Ronan (E-mail)'" <joer@calpine.com>, "'John
Larrea (E-mail)'" <john.g.larrea@williams.com>, "'John Stout (E-mail)'"
<John_H_Stout@reliantenergy.com>, "'Julee Malinowski-Ball (E-mail)'"
<jmball@ns.net>, "'Kassandra Gough (E-mail)'" <kgough@calpine.com>, "'Katie
Kaplan (E-mail)'" <kaplan@iepa.com>, "'kent Palmerton (E-mail)'"
<kent.palmerton@williams.com>, "'Lynn Lednicky (E-mail)'" <lale@dynegy.com>,
"Marie Moretti (E-mail 2)" <mmoretti@mccabeandcompany.net>, "'Marty Wilson
(E-mail)'" <mwilson@pstrategies.com>, "'McNally Ray (E-mail)'"
<rmcnally@mcnallytemple.com>, "''Nam Nguyen' (E-mail)'"
<nam.nguyen@powersrc.com>, "'Norton Kelli (E-mail)'"
<knorton@mcnallytemple.com>, "'Paula Hall-Collins (E-mail)'"
<paula.hall-collins@williams.com>, "'Pigott Jack (E-mail)'"
<jackp@calpine.com>, "'Richard Hyde (E-mail)'" <rwhyde@duke-energy.com>,
"'Roger Pelote (E-mail)'" <roger.pelote@williams.com>, "'Stephanie-Newell
(E-mail)'" <stephanie-newell@reliantenergy.com>, "'Sue Mara (E-mail)'"
<smara@enron.com>, "'Tom Ross (E-mail)'" <tross@mcnallytemple.com>, "Tom
Williams (E-mail)" <tcwillia@duke-energy.com>
		 cc: "'Alex Sugaoka (E-mail)'" <alex.sugaoka@uaecorp.com>, "'Bill Carlson
(E-mail)'" <william_carlson@wastemanagement.com>, "'Bill Woods (E-mail)'"
<billw@calpine.com>, "'Bob Ellery (E-mail)'" <bellery@spi-ind.com>, "'Bob
Gates (E-mail)'" <bob.gates@enron.com>, "'Cody Carter (E-mail)'"
<cody.carter@williams.com>, "'Curt Hatton (E-mail)'"
<Curt.Hatton@gen.pge.com>, "'David Parquet'" <david.parquet@enron.com>,
"'Dean Gosselin (E-mail)'" <dean_gosselin@fpl.com>, "'Doug Fernley (E-mail)'"
<fernley.doug@epenergy.com>, "'Duane Nelsen (E-mail)'"
<dnelsen@gwfpower.com>, "'Ed Tomeo (E-mail)'" <ed.tomeo@uaecorp.com>,
"'Eileen Koch (E-mail)'" <eileenk@calpine.com>, "'Eric Eisenman (E-mail)'"
<eric.eisenman@gen.pge.com>, "'Frank DeRosa (E-mail)'"
<frank.derosa@gen.pge.com>, "Frazier Blaylock (E-mail)"
<frazier_blaylock@ogden-energy.com>, "'Hap Boyd (E-mail)'"
<Hap_Boyd@enron.com>, "'Hawks Jack (E-mail)'" <jack.hawks@gen.pge.com>, "'Jim
Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe Greco (E-mail)'"
<jgreco@caithnessenergy.com>, "'Jonathan Weisgall (E-mail)'"
<jweisgall@aol.com>, "'Kate Castillo (E-mail)'" <CCastillo@riobravo-gm.com>,
"'Kelly Lloyd (E-mail)'" <kellyl@enxco.com>, "'Ken Hoffman (E-mail)'"
<khoffman@caithnessenergy.com>, "'Kent Fickett (E-mail)'"
<kfickett@usgen.com>, "'Lynn Lednicky (E-mail)'"
<lynn.a.lednicky@dynegy.com>, "'Marty McFadden (E-mail)'"
<marty_mcfadden@ogden-energy.com>, "'Paula Soos'"
<paula_soos@ogden-energy.com>, "'Randy Hickok (E-mail)'"
<rjhickok@duke-energy.com>, "Rick S. Koebbe (E-mail)"
<rskoebbe@powerworksinc.com>, "'Rob Lamkin (E-mail)'"
<rllamkin@seiworldwide.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>,
"'Steve Iliff'" <siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'"
<steve_ponder@fpl.com>, "'Tony Wetzel (E-mail)'" <twetzel@thermoecotek.com>,
"'William Hall (E-mail)'" <wfhall2@duke-energy.com>
		 Subject: 39x Opposition

Greetings:
As we discussed on the call IEP will be opposing 39x when it goes to the
floor on Thursday.  Please take a minute to look over the below copy and let
me know if there are any glaring issues by 9:00 a.m. on Wednesday.  We will
be sending the art out later today.
Let me know if you have any questions.
Thanks!
Katie Kaplan
Manager of State Policy Affairs
Independent Energy Producers Association
(916) 448-9499

____________
Don?t discourage new electricity supply . Oppose SB 39x

SB 39x threatens private investment in new generation at a time when
California faces a serious electricity supply shortage.

Not one major power plant has been built in California for the past ten
years and nearly 2/3 of existing power plants are 30 years or older.

California?s population has grown 16% over the past ten years and the peak
demand for electricity has climbed 15% (33% in the Silicon Valley), power
generation capacity has increased only 2%. (We will be siting this in the
handout)

Currently billions of dollars of private capitol are flowing into California
to bring new supply on-line . improving reliability, protecting air quality
increasing local tax revenues and creating hundreds of high paying jobs.

SB 39x threatens this critically needed investment in supply by imposing yet
one more layer of unneeded regulatory oversight.

Please join the following organizations in opposing SB 39x:

? California Chamber of Commerce
? California Co-generation Council
? California Manufacturing and Technology Association
? Independent Energy Producers Association
? Western States Petroleum Association

Create more electricity supply, not one more layer of unneeded regulatory
oversight . Vote no on SB 39x


TODAY'S HEADLINES
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QUOTE OF THE DAY
=========================
"Terrorists want to turn the openness of the global economy
against itself. We must not let them."
-PRESIDENT BUSH

http://www.nytimes.com/2001/10/21/international/asia/21PREX.html?todaysheadlines

NATIONAL
=========================
Anthrax Found on a 3rd Letter From Trenton

Officials said the letter, which was sent to the New York
Post, was postmarked Trenton, N.J., and addressed in
handwriting similar to earlier letters containing anthrax.
http://www.nytimes.com/2001/10/21/nyregion/21CAPI.html?todaysheadlines

-----

Focus of F.B.I. Is Seen Shifting to Terrorism

The Bush administration is discussing proposals that would
lead to a reorganization of the Federal Bureau of
Investigation, shifting its focus to counterterrorism.
http://www.nytimes.com/2001/10/21/national/21BURE.html?todaysheadlines

-----

Arrests Have Yielded Little So Far, Investigators Say

Despite pursuing more than 365,000 tips from the public,
senior investigators acknowledged that most of their
promising leads have unraveled.
http://www.nytimes.com/2001/10/21/national/21DETA.html?todaysheadlines

-----

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INTERNATIONAL
=========================
Troops Sought Information; Airfield Also a Target

The raid into southern Afghanistan on Friday night attacked
Taliban military targets and masked a smaller mission to
uncover Taliban and Al Qaeda leaders.
http://www.nytimes.com/2001/10/21/international/asia/21MILI.html?todaysheadlines

-----

Eavesdropping, U.S. Allies See New Terror Attack

The United States and its close allies are still
intercepting communications among Osama bin   Laden's
associates and are convinced more attacks are coming.
http://www.nytimes.com/2001/10/21/international/21INTE.html?todaysheadlines

-----

Afghan and Pakistani Tribe Lives by Its Own Set of Rules

The Pashtun, who make up about half the entire population of
Afghanistan, is a tribe that anthropologists consider one
of the oldest on earth.
http://www.nytimes.com/2001/10/21/international/asia/21PASH.html?todaysheadlines

-----

MORE INTERNATIONAL NEWS:
http://www.nytimes.com/pages/world/index.html?todaysheadline

BUSINESS
=========================
Drug Makers Wrestle With World's New Rules

With fears of bioterrorism growing by the day, the nation's
pharmaceutical companies are trying to show that they are
patriots, not profiteers.
http://www.nytimes.com/2001/10/21/business/21DRUG.html?todaysheadlines

-----

Venture Capital, Withering and Dying

Just as Richard Thompson and Larry Braitman, the founders of
Flycast Communications, symbolized the Internet boom of the
1990's, they also came to illustrate the venture-capital
bust.
http://www.nytimes.com/2001/10/21/business/yourmoney/21VENT.html?todaysheadlines

-----

A Leader-in-Waiting at Motorola

When the General Instrument Corporation was acquired, its
chief executive, Edward D. Breen Jr.,  found a lasting home
in the senior management of the new owner.
http://www.nytimes.com/2001/10/21/business/yourmoney/21PROF.html?todaysheadlines

-----

MORE BUSINESS NEWS:
http://www.nytimes.com/pages/business/index.html?todaysheadline

TECHNOLOGY
=========================
A Leader-in-Waiting at Motorola

When the General Instrument Corporation was acquired, its
chief executive, Edward D. Breen Jr.,  found a lasting home
in the senior management of the new owner.
http://www.nytimes.com/2001/10/21/business/yourmoney/21PROF.html?todaysheadlines

-----

Trend Bucked as Nokia Net Meets Hopes

Nokia, the world's largest mobile phone maker, did what only
a handful of technology companies have managed recently:
reported earnings that did not disappoint investors.
http://www.nytimes.com/2001/10/20/technology/20NOKI.html?todaysheadlines

-----

Rosie the Riveter in a New Generation

The military industry is once again seeing virtues in their
old businesses and a revived sense of being needed.
http://www.nytimes.com/2001/10/20/business/20WORK.html?todaysheadlines

-----

MORE TECHNOLOGY NEWS:
http://www.nytimes.com/pages/technology/index.html?todaysheadline

POLITICS
=========================
Anthrax Found on a 3rd Letter From Trenton

Officials said the letter, which was sent to the New York
Post, was postmarked Trenton, N.J., and addressed in
handwriting similar to earlier letters containing anthrax.
http://www.nytimes.com/2001/10/21/nyregion/21CAPI.html?todaysheadlines

-----

Bush Calls World Economy Goal of Attacks on U.S.

President Bush told leaders of 21 nations that the
terrorists who struck the World Trade Center were trying to
bring about a collapse of world markets.
http://www.nytimes.com/2001/10/21/international/asia/21PREX.html?todaysheadlines

-----

Democrats Are Pushed on Judicial Nominees

Senate Republicans are engaged in a full-scale campaign to
press Democrats to quickly confirm President Bush's
judicial nominees.
http://www.nytimes.com/2001/10/21/national/21COUR.html?todaysheadlines

-----

MORE POLITICS NEWS:
http://www.nytimes.com/pages/politics/index.html?todaysheadline

SPORTS
=========================
Mariners Silence Whispers of a Sweep

Uncertainty enveloped Orlando Hernandez in the fifth
inning, Seattle scored seven runs in the sixth, and the
Mariners crushed the Yankees, 14-3, in Game 3 of the
A.L.C.S.
http://www.nytimes.com/2001/10/21/sports/baseball/21YANK.html?todaysheadlines

-----

Diamondbacks Jump on Maddux and Atlanta Early

Greg Maddux allowed six runs on eight hits in three-plus
innings as Arizona routed the Braves, 11-4, to take a 3-1
lead in the N.L.C.S.
http://www.nytimes.com/2001/10/21/sports/baseball/21BRAV.html?todaysheadlines

-----

Curtis Martin Enjoys Being Chased Into the End Zone

Like all the best running backs, Curtis Martin loves to run
while being chased. And yard by yard, Martin is emerging as
the best player the Jets have ever had aside from Joe
Namath.
http://www.nytimes.com/2001/10/21/sports/baseball/21ANDE.html?todaysheadlines

-----

MORE SPORTS NEWS:
http://www.nytimes.com/pages/sports/index.html?todaysheadline

ARTS
=========================
Classical Recording: Spinning Into Oblivion?

The classical recording industry seems to be collapsing, and
aggrieved music lovers are looking for someone to  blame.
http://www.nytimes.com/2001/10/21/arts/music/21TOMM.html?todaysheadlines

-----

A Rousing Rock Show for a Wounded City

Madison Square Garden played host to a virtual "who's who of
the entertainment industry" during a concert benefit to
raise money for relatives of the victims of the Sept. 11
attack.
http://www.nytimes.com/2001/10/21/nyregion/21GARD.html?todaysheadlines

-----

A Play That's Off the Wall Finds a Cast That Is, Too

Amy Sedaris, Sarah Jessica Parker, Marylouise Burke and
Kristine  Nielsen are the fearless actresses in the dark
comedy, "Wonder of the World."
http://www.nytimes.com/2001/10/21/arts/theater/21POGR.html?todaysheadlines

-----

MORE ARTS NEWS:
http://www.nytimes.com/pages/arts/index.html?todaysheadline

NY REGION
=========================
Anthrax Found on a 3rd Letter From Trenton

Officials said the letter, which was sent to the New York
Post, was postmarked Trenton, N.J., and addressed in
handwriting similar to earlier letters containing anthrax.
http://www.nytimes.com/2001/10/21/nyregion/21CAPI.html?todaysheadlines

-----

Happenstance, Not Strategy, Leaves Green Indebted to Few

Mark Green has emerged, as the first Democratic mayoral
nominee in memory who appears to owe no  debt to groups
that traditionally stake a claim on New York mayors.
http://www.nytimes.com/2001/10/21/nyregion/21GREE.html?todaysheadlines

-----

A Rousing Rock Show for a Wounded City

Madison Square Garden played host to a virtual "who's who of
the entertainment industry" during a concert benefit to
raise money for relatives of the victims of the Sept. 11
attack.
http://www.nytimes.com/2001/10/21/nyregion/21GARD.html?todaysheadlines

-----

MORE NY REGION NEWS:
http://www.nytimes.com/pages/nyregion/index.html?todaysheadline

OP-ED
=========================
Is Camel Pox Coming?
By MAUREEN DOWD
Many government officials do not yet have a grip on an enemy
etched in disappearing ink.
http://www.nytimes.com/2001/10/21/opinion/21DOWD.html?todaysheadlines

-----

Keeping Panic at Bay
By JARED DIAMOND
What can we learn from the past that could help us cope with
terrorism?
http://www.nytimes.com/2001/10/21/opinion/21DIAM.html?todaysheadlines

-----

Can War Bring Peace to Kashmir?
By ANATOL LIEVEN
If the United States is serious   about removing the sources
  of anti-American terrorism,   then at some stage
Washington will have to tackle the   conflict in Kashmir.
http://www.nytimes.com/2001/10/21/opinion/21LIEV.html?todaysheadlines

-----

MORE OP-ED  NEWS:
http://www.nytimes.com/pages/opinion/index.html?todaysheadline

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1)

3) I think we want it to apply to whatever entity employs the individuals
with access.  Most of these people will probably Peoples Energy Corp.
employees, but I suppose we could make it also include all of their
affiliates.  enovate can sign the CA as well, but since enovate doesn't have
any employees I was assuming we could use Peoples Energy as the responsible
legal entity.

4) After 3:00 is fine, let me know for sure soon enough that I can lock Sarah
up.

Thanks,

Gregg

	Kay Mann
	10/31/2000 11:29 AM

		 To: Gregg Penman/Corp/Enron@Enron
		 cc:
		 Subject: Re: enovate stuff

1)The cybergoblins ate the attachment.
2) OK
3) Which Peoples is it?  Also, I think enovate should sign at CA.
4)  I sent Heather an email re her availability.  There's a bunch of
construction near downtown, so I would hesitate to commit to an early call,
but I know I'm free after 300 tomorrow.

Kay

From: Gregg Penman on 10/31/2000 11:25 AM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: enovate stuff

Kay -

1) Attached is my quick attempt at writing something to make the management
changes at enovate that we discussed.  Could you please review this and add
the appropriate legal language.  I don't think that we need any Board
approval for any of these changes, so is some type of notification sufficient?

2)  I would like to address the idea of signature authorities other than
Laura at the same time.  My suggestion would be that Richard and myself be
granted some level of authority to execute CA's, Master Agreements, etc. that
have been reviewed and approved by legal.  If you can at least pull the
template you used to get approval for the Director you mentioned and see if
there would be any changes necessary that would be helpful.

3) I need to get the CA form for the curves and other information started.
We can discuss this any time you want.

4) What is your availability tomorrow either 8-9:15 or after 3:00 to discuss
the intercompany loan agreement, and will Heather be available?

I will be leaving around 2:00 for suburban trick or treating.

Thanks,

Gregg


Vince,

 I appreciate your response to my request for you to speak to my
class on real options.  I thought you might enjoy the following exchange of
emails that occurred yesterday.  Perhaps some of these issues could be
addressed in your talk.

 Jim

-----Original Message-----
From: Sheridan Titman
Sent: Friday, March 31, 2000 9:11 AM
To: Jim Dyer
Subject: RE: Real Options Course Feedback

Jim:

Your student has raised some difficult questions.  I would recommend Ehud,
but I thought that the finance people have the answers in cases with
complete markets and that we rely on the decision science people for cases
with incomplete markets.

If it would help, I can come in at 6pm after my class in a couple of weeks.

Sheridan

Sheridan Titman
Department of Finance
College of Business Administration
University of Texas
Austin, Texas 78712-1179

512-232-2787 (phone)
512-471-5073 (fax)

titman@mail.utexas.edu

-----Original Message-----
From: Jim Dyer
Sent: Thursday, March 30, 2000 4:37 PM
To: Sheridan Titman
Subject: RE: Real Options Course Feedback

Sheridan,

 Which of your classes do you want to miss?  Just kidding.  Actually
you probably told me that before.  Can you suggest someone else who would be
a good choice to discuss the use of option theory in the context of
incomplete markets, and to address some of the types of questions raised in
the note from the student?

 Jim

-----Original Message-----
From: Sheridan Titman
Sent: Thursday, March 30, 2000 5:58 PM
To: Jim Dyer
Subject: RE: Real Options Course Feedback

Jim:

I teach at the same time as you do.

Sheridan

Sheridan Titman
Department of Finance
College of Business Administration
University of Texas
Austin, Texas 78712-1179

512-232-2787 (phone)
512-471-5073 (fax)

titman@mail.utexas.edu

-----Original Message-----
From: Jim Dyer
Sent: Thursday, March 30, 2000 11:32 AM
To: Sheridan Titman
Subject: FW: Real Options Course Feedback

Sheridan,

 See the comments below.  I don't mean to put you on the spot, and
have not announced anything in class, but I am hoping that you could visit
my class for about an hour one Thursday afternoon to discuss your views
regarding applications of option pricing concepts to "real options".  As a
reminder, I've attached a course outline.  Chris Kenyon from Schlumberger is
speaking on April 13, and Vince Kaminski has tentatively agreed to speak on
April 20.

 I am going to be out of town on April 27, so that leaves either next
Thursday (April 6) or May 4.  Would either of those times work for you?  I'm
not thinking of any preparation, but more of an informal discussion of the
"philosophical issues" related to real options work.

 Jim

-----Original Message-----
From: Jim Dyer
Sent: Thursday, March 30, 2000 1:24 PM
To: 'jclevenger@optionii.bus.utexas.edu'
Subject: RE: Real Options Course Feedback

Josh,

 Some very thoughtful observations.  As you know, I had invited one
finance professor to our class on Arundel, but he was out of town.  I do
plan to invite Sheridan Titman to discuss the issue of using the option
models in situations where there is no underlying security that is traded.
I do think it is important to face that issue, which is actually covered at
a theoretical level in our last couple of readings.

 The issue of volatility is also an excellent issue for further
discussion, as you suggest.  So far, we've been looking at cases where
volatility is "given".  The problem of finding an "objective" measure of
volatility for a project reminds me of the problem of finding the correct
risk adjusted discount rate, which is not surprising since the concepts are
almost two sides of the same plate.  One approach, of course, is to do some
modeling using traditional decision analysis tools, including subjective
probabilities, but the finance people who write options articles don't like
to think  about such ideas.

 I'll try to address these issues in more detail as the semester
continues.  I think it was important to surface some of these points early,
and to come back to them after we have seen how to apply the methods in a
naive sort of way.

 Thanks for the feedback and comments.

 Jim

-----Original Message-----
From: jclevenger@optionii.bus.utexas.edu
[mailto:jclevenger@optionii.bus.utexas.edu]
Sent: Thursday, March 30, 2000 8:42 AM
To: Jim.Dyer@bus.utexas.edu
Cc: josh-clevenger@reliantenergy.com
Subject: Real Options Course Feedback

After overcoming the initial (I hope) overload of materials and tools
presented
thus far in the semester, it appears to me that you are achieving the
objective
of making us comfortable with optionality valuation as applied to a variety
of
problems which are outside the borders defined by a liquid market of traded
financial elements.

As a constructive feedback, you have been forthright with us in marking off
areas of this subject which are still controversial.  I also realize that
rightly so, real-world application of this type of analysis without a robust
understanding of finance may degenerate into a succession of assumptions
that
result in a "house of cards" effect.  My opinion at this point is that two
issues are of potentially "make-or-brake" importance if I am to persuade my
superiors to accept these methods for valuations outside the realm of
projects
whose value is primarily driven by the value of commodities backed by
financial
instruments.  These issues are easy to guess:

1)  Discounting and Risk Free rates:  I do not sense that anyone in the
class
has put forth convincing arguments as to the proper application of time
value
questions in the absence of liquidity.  Is there someone within the finance
department that can present a firmer position on this question?

2)  Volatility: I found Winston's examples on this metric succinct.  I would
recommend that in future years you dedicate some hours of class time to this
subject.  My criticism again relates to messy problems.  I anticipate
arguments
against real option applications based on the dispute of volatility
measures.
If I were a conservative financial manager, I would argue that:

*** Two-a: implied volatility derived from an industry specific slice of
equity
options is a shotgun approach -- the projects being valued are of a tranche
which may in fact have a significantly different outcome variance than the
weighted average measured by the equities utilized.  Oil, gas and electricty
are
good examples the major players are competing on many different levels of
the
value chain. Smaller companies do exist which are dedicated to one strata,
but
what about projects that want to exploit opportunies across strata in a
vertically integrated company?

*** Two-b: based on the following skepticism - if a real option value is
being
proposed for a new business venture (some new unexploited opportunity,)
there is
some paradox embedded in the increased value based on high volatility in new
ventures and the high risk of failure.  This skepticism is likely to be less
acute in high-tech sectors where the huge upside of new ventures is paraded
before us daily by NASDQ touts.  It is a much harder sell to "mature"
industries.

Of particular interest in the power industry are investments centered around
opportunities arising from restructuring of electricity and natural gas
sectors
as regulation is removed.  A large proportion of the risk is embedded in
ongoing
changes of public policy on an international basis.  As an intentionally
screwed-up example, can anyone other than a financial genius correctly asses
volatility for U.S. companies investing in seed projects in Mexico based on
speculation of the inevitable dismantling of the national utility (CFE) and
PEMEX?

James S. Dyer
Fondren Centennial Chair in Business
Department of Management Science and Information Systems
CBA 5.202
The University of Texas at Austin
Austin, Texas 78712-1175

Email:  j.dyer@bus.utexas.edu
Telephone:  512-471-5278
Fax:  512-471-0587


Sounds good to me.  We just wanted to invite you guys anyway.  We look
forward to seeing you in April.

My grandfather actually passed away on Thursday afternoon and we had the
funeral on Saturday.  I had to give the eulogy and boy was it difficult.  I
bet a stood there for 1 minute without saying a word, unable to hold my
emotions.  I hope I never have to do that again.  Thanks for your thoughts.
I actually had a dream this morning about talking to you about it.  Wild huh?

Talk to you soon.
PL

rachel.bonilla-kragel@accenture.com on 01/26/2001 04:18:48 PM
To: Phillip.M.Love@enron.com
cc:
Subject: Re: hey

Hey Phillip-

I talked with Jason...and I think we have to lean towards not this year.
We (Jason, Drew, I) are coming home for Easter weekend (April 15) and
staying for appx. 5 days.  We can probably only do one....and have already
promised Drew that we would take him to Houston (he's never been).  If I
were single, or w/o child I would be all over it!!

Hope everything turns out ok in Alabama....I'm thinking of you.

Rach

Rachel Bonilla-Kragel
Accenture
North American C&HT
Denver - Octel 359/6017 - Direct Dial (720) 359-6017
rachel.bonilla-kragel@accenture.com

Accenture is the new name for Andersen Consulting as of January 1, 2001.
Our web address is http://www.accenture.com

            Phillip.M.Love@enron.c
            om                            To:     Rachel
Bonilla-Kragel@Accenture
                                          cc:
            01/25/2001 02:04 PM           Subject:     Re: hey

Thanks.  I think we have everything covered.  We are taking Jackson, I
believe everyone else is leaving their kids at home.  If you guys want to
bring Drew, we have no problem with that, there however won't be any other
kids his age to play with.  Talk to you next week.
PL

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Please use the following two files as your detail support for finanical
liquidations:

Previously, I believe you were given the capacity hedges file the
pricebasisindex file and the pricebasisindex_revised file.  All three of
these equalled the 3.7 million.  You should use the revised and the capacity
hedge file.  When you use the two files listed above, you will come up with a
variance going the other way of roughly $(817,385).  This amount should be a
"desk adjustment".  We have accounted for the variance in our current month
(0800) file and will simply reclass between the months.  Please shout with
any questions.
PL


I may have to start training now for that.

Wilson Kriegel@ENRON
05/02/2000 01:11 PM
To: Susan M Scott/HOU/ECT@ECT
cc:
Subject: Re: Red Meat

Yes coming to visit in NY will be a must and i'll take you out, with my Boyz,
and show you a little what partying, drinking and going all out is all about.


Are we meeting at noon?  Can I assume that Lawyer Burlingame will procure a
table at the seminar?   Sara

	"P. Keith Daigle" <pkdaigle@neosoft.com>
	11/17/2000 04:57 PM
	Please respond to pkdaigle

		 To: Sara.Shackleton@enron.com
		 cc:
		 Subject: Re: CLE Seminar @ Galatoires

Sara:  Monty says Dec. 8 is OK!  He will make Julie drive to Memphis in case
he is passed out.   See ya then.

Lawyer Dago

Sara.Shackleton@enron.com wrote:

> Hey, Lawyer Daigle:
>
> On November 17, I'll be exercising my wheelchair along the winding roads of
> Napa and Sonoma Valleys.  However, would you two kids be interested in the
> more popular seminar at Galatoires on Dec. 8, entitled "Dot.com for
> Seniors", 3 hours CLE credit requested?  Please let me know as soon as
> possible so that I can request my cheap senior fare on Southwest Airlines,
> a reduced rate rental car and other freebies afforded through the AARP.
> Sara
>
>
>                     "P. Keith
>                     Daigle"              To:     Sara Shackleton
<sshackl@ect.enron.com>, Shackleton Sara
>                     <pkdaigle@neo        <Sara.Shackleton@enron.com>
>                     soft.com>            cc:
>                                          Subject:     CLE Seminar @
Galatoires
>                     11/08/2000
>                     04:09 PM
>                     Please
>                     respond to
>                     pkdaigle
>
>
>
> Dear Sara:
>
>     I am sending this to both addresses I have for you.  I don't know
> which one is right.
>
>     James L. Burlingame, IV, Esq. and I are thinking about attending a
> seminar at Galatoires on Nov. 17, 2000.   The title of the Seminar is,
> "Elder Law and You".  Please let us know if you can attend and if you
> have special needs such as wheelchair, walker, Depends, or supplemental
> oxygen.
>
> P. Keith Daigle, Esq.


What does this proposal imply about transmission pricing.  We have debated
from time-to-time whether we would be better off with a pure "loads pay"
transmission pricing scheme because it would leave fewer places for utilities
to hide the ball (when they pay for transmission they are just transferring
money from one pocket to the other) and it would allow us to reach the
maximum number of counterparties for each MW (thereby increasing liquidity).
Where do we stand?

	Charles Yeung@ECT
	11/09/2000 11:19 AM

		 To: Thane Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@EES
		 cc: Christi L Nicolay/HOU/ECT@ECT, Janice R Moore/HOU/ECT@ECT, Joe
Hartsoe/Corp/Enron@ENRON@EES, Mary Hain/HOU/ECT@ECT, Richard
Shapiro/HOU/EES@EES, Ron McNamara/NA/Enron@Enron@EES, Sarah
Novosel/Corp/Enron@ENRON@EES, Steve Walton/HOU/ECT@ECT, Tom
Delaney/Corp/Enron@ENRON@EES, Steven J
Kean/NA/Enron@Enron@ENRON_DEVELOPMENT@EES, Thresa A Allen/HOU/ECT@ECT, Edward
D Baughman/HOU/ECT@ECT, Oscar Dalton/HOU/ECT@ECT, Patrick Hanse/HOU/ECT@ECT,
Gary Justice/NA/Enron@Enron@ENRON_DEVELOPMENT@EES, Mike E
Kelly/NA/Enron@Enron@ENRON_DEVELOPMENT@EES, Jeff
King/Corp/Enron@Enron@ENRON_DEVELOPMENT@EES, Matt Lorenz/HOU/ECT@ECT, Dave
Mangskau/Corp/Enron@ENRON@ENRON_DEVELOPMENT@EES, Janine Migden/DUB/EES@EES,
David Portz/HOU/ECT@ECT, Doug Sewell/HOU/ECT@ECT, Kerry Stroup/DUB/EES@EES,
Ron Tapscott/HOU/ECT@ECT, Lloyd Will/HOU/ECT@ECT, Jeff Brown/HOU/EES@EES,
James D Steffes/HOU/EES@EES, Damon
Harvey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@EES
		 Subject: Re: First Draft of eTransMart FAQ's

These questsions seem to be focus on the modularity of the product.  This is
fine from the vendors' perspectives, however, from a Tariff perspective, it
hints at conceding to others' tariiffs/structures.  There should be a few
questions that paint the entire Real Flow solution - even referencing that a
tariff is available.

Also, can I assume the entities listed are endorsing eTransMart?  Or do they
not even know their name is referenced here?

From: Thane Twiggs@ENRON_DEVELOPMENT on 11/08/2000 03:09 PM CST
To: Charles Yeung/HOU/ECT@ECT@EES, Christi L Nicolay/HOU/ECT@ECT@EES, Janice
R Moore/HOU/ECT@ECT@EES, Joe Hartsoe/Corp/Enron@ENRON@EES, Mary
Hain/HOU/ECT@ECT@EES, Richard Shapiro/HOU/EES@EES, Ron
McNamara/NA/Enron@Enron@EES, Sarah Novosel/Corp/Enron@ENRON@EES, Steve
Walton/HOU/ECT@ECT@EES, Tom Delaney/Corp/Enron@ENRON@EES, Steven J
Kean/NA/Enron@Enron, Thresa A Allen/HOU/ECT@ECT, Edward D
Baughman/HOU/ECT@ECT, Oscar Dalton/HOU/ECT@ECT, Patrick Hanse/HOU/ECT@ECT,
Gary Justice/NA/Enron@Enron, Mike E Kelly/NA/Enron@Enron, Jeff
King/Corp/Enron@Enron, Matt Lorenz/HOU/ECT@ECT, Dave
Mangskau/Corp/Enron@ENRON, Janine Migden/DUB/EES@EES, David
Portz/HOU/ECT@ECT, Doug Sewell/HOU/ECT@ECT, Kerry Stroup/DUB/EES@EES, Ron
Tapscott/HOU/ECT@ECT, Lloyd Will/HOU/ECT@ECT, Christi L Nicolay/HOU/ECT@ECT,
Jeff Brown/HOU/EES@EES, James D Steffes/HOU/EES@EES, Damon
Harvey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:
Subject: First Draft of eTransMart FAQ's

Please see the note below.   EtransMart is the consortium's name for E-trans
and they are putting together the FAQ's for their website.  If you have any
comments feel free to send them to me and I will forward them to Dave.
----- Forwarded by Thane Twiggs/ENRON_DEVELOPMENT on 11/08/2000 03:04 PM -----

	"Dave Perrino" <dperrino@apx.com>
	11/08/2000 02:47 PM
	Please respond to dperrino

		 To: <Jeff.Brown@enron.com>, <david.sun@alstom.esca.com>, <dfoley@apx.com>,
<jchapman@apx.com>, <jd.hammerly@alstom.esca.com>, <jeflory@calpx.com>,
<mheinrich@apx.com>, <norris.peterson@alstom.esca.com>,
<randy.berry@alstom.esca.com>, <rbjohnson@calpx.com>, <rday@apx.com>,
<rpseide@calpx.com>, <rsamuelson@apx.com>, <trevor.alvey@alstom.esca.com>,
<Thane.Twiggs@enron.com>
		 cc: <James.D.Steffes@enron.com>, <Susan.M.Landwehr@enron.com>,
<jmigden@enron.com>, <Lloyd.Will@enron.com>, <Steve.Walton@enron.com>,
<nmathur@apx.com>, <lfisher@apx.com>
		 Subject: First Draft of eTransMart FAQ's

To All,

Mike Heinrich has asked me to make a first draft of some FAQ's for our
collaborative's web site.  I have taken a shot a several questions.  I would
appreciate if you could review the attached document and add/modify it as
you see fit.  Once you've made your additions and/or deletions, please send
it back to me by this Sunday (November 12) so that I may incorporate all the
suggestions and send out a "final" draft for the groups approval prior to
our posting this information on the web site.

If you have any questions feel free to send me questions via email and I
will respond as soon as I return from vacation on Sunday.

Kind Regards,

Dave

David F. Perrino
Automated Power Exchange
Grid Management Services
Director Market Development - West
5201 Great America Parkway, Suite 522
Santa Clara, CA  95054
Voice: 408.517.2146
Mobile: 650.906.5020
Fax:  408.517.2985
Visit us at: http://www.apx.com

 - eTransMart Frequently Asked Questions.doc


Jim - overnight I realised you need to add our project in Turkey (Fiona
Grant) and Poland (Philip Davies).  I have not given you any one person, as
the regulatory issues seem to be country/environment specific, and instead I
have given you the names of each person with country responsibility.  Indeed,
at year-end we completed a financial transaction (Project Margaux), in which
regulatory risk was reviewed.  A definition of Rugulatory Risk would be
helpful, e.g., in most of these markets, trading arrangements are being
re-written, or developed for the first time, this put existing PPAs under
pressure.  Would energy taxes, carbon taxes/trading, transmission pricing
(both for evacuation of power, and delivery of gas), changes in property
tax/fuel tax regimes, risk of price regulation, all be included?  Do you have
checklist?  We can identify these risks, what is meant by "manage"?  We work
on these types of issues on a daily basis, so I am unclear as to what else is
intended or implied.  thanks  mcs

James D Steffes@EES
08/02/2000 17:24
To: Richard Shapiro/HOU/EES@EES, Mark Schroeder/LON/ECT@ECT
cc: Steven J Kean/HOU/EES@EES

Subject: Assignment of Regulatory Risk Responsibility for Current Assets

Rick & Mark --

One of the first steps in building our Regulatory Risk process is to
establish responsibility for the current assets owned/managed by Enron.
Having a point person that I can contact will help me immensely.

Attached is a listing of the assets that I have been able to pull together --
there may be more that you know about.

Is it possible for us to agree upon the person(s) who will manage the
Regulatory Risk with each of these assets?  Please feel free to call me to
discuss.

I would like to have this assignment process complete within the month.

The same type of effort will be necessary as we review pending transactions.

Thanks.


Attached is a redline with the changes we discussed.  Please review and if it
looks OK, please forward to Susan and Dave.


The attachment below recaps our meeting from this morning.  Highlights from
last week are noted and commitments for this week are detailed as well.  Let
me know if anything has been left off the list.  --Sally


Robert, would you put these deals on the morning sheet please.  Thanks.  We
will not be using the CPR storage deal ticket any more.

---------------------- Forwarded by Chris Germany/HOU/ECT on 05/15/2000 08:52
AM ---------------------------

Chris Germany
05/15/2000 08:51 AM
To: Molly Johnson/HOU/ECT@ECT, Joan Veselack/Corp/Enron@ENRON, Joann
Collins/Corp/Enron@ENRON, Robert Allwein/HOU/ECT@ECT, Elizabeth L
Hernandez/HOU/ECT@ECT, Jeff W Westover/HOU/ECT@ECT, Mark Feldman/HOU/ECT@ECT,
Alicia Perkins/HOU/ECT@ECT
cc: Scott Goodell/Corp/Enron@ENRON, David Oliver/HOU/ECT@ECT, Crystal
Hyde/HOU/ECT@ECT (bcc: Chris Germany/HOU/ECT)
Subject: CES Storage

Molly set up the following tickets to capture our CGAS storage transactions.
This is how it will work,

Deal #  Comment
268093  CES Exchange Buy - use when storage injections are less than the
proxy volume
268090  CES Exchange Sell - use when storage injections are greater than the
proxy volume
268094  CES Sell - this is the proxy storage injection ticket.  The volume
should not change.

The daily proxy volume for the month of May is 35,133.  When we inject
35,133, the transport we use to fill storage will be the supply for deal
268094.  When we overinject like we did for the 1st - 4th, 35,133 of the
transport will be matched with deal 268094 and the balance of the transport
will be matched against deal 268090.  When we underinject, we will use deal
268093 as the supply for deal 268094.

This may seem a little confusing.  Please call me if you still have questions.

Thanks