Democrats Prepare to Duel Bush Over Energy Price Caps in West
The Wall Street Journal, 06/01/01

Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
Los Angeles Times, 06/01/01

Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
The Wall Street Journal, 06/01/01

Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
The Wall Street Journal, 06/01/01

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL
Asia Pulse, 06/01/01

GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001

INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS
Asia Pulse, 06/01/01

Thomas E. White becomes Secretary of the Army
M2 Presswire, 06/01/01

Some light at last!
The Economic Times, 06/01/01

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
Associated Press Newswires, 06/01/01

California Lawmakers Eye Billing Businesses for Edison Rescue
Dow Jones Business News, 05/31/01

Construction of power plant in DeSoto County is underway
Associated Press Newswires, 05/31/01

Politics & Policy
Democrats Prepare to Duel Bush Over Energy Price Caps in West
By John Harwood and Jeanne Cummings
Staff Reporters of The Wall Street Journal

06/01/2001
The Wall Street Journal
A16
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -- If you talk to economists, many will say President Bush is on
solid ground in opposing caps on soaring electricity prices in California and
elsewhere. But if you talk to voters, many will suggest he has political
problems.
And now that Democrats control the U.S. Senate, they are poised to make those
problems a lot worse.
Mr. Bush got a taste of what is coming in his widely touted showdown with
California Gov. Gray Davis in Los Angeles this week. The Republican president
repeated his familiar argument that capping wholesale electricity prices
would do nothing to curb demand or increase the supply of power for
California. But the Democrats' Mr. Davis, fortified by polls showing that 70%
of Californians favor price caps, managed to get equal billing during Mr.
Bush's visit for his argument that they are needed to keep the state from
slipping into recession and threatening the national economy in the process.
Because Sen. Jim Jeffords of Vermont left the Republican Party last week and
changed control of the Senate, Democrats now have a more effective national
platform to press the same arguments -- and to threaten Mr. Bush's political
standing beyond the already hostile turf of California. The incoming chairman
of the Senate Energy and Natural Resources Committee, Democratic Sen. Jeff
Bingaman of New Mexico, says he plans to move soon on legislation capping
prices for California and other Western states, a bill that has attracted
some GOP support as well.
"I think it's clear to anybody that the prices being charged for wholesale
power are excessive," said Sen. Bingaman, in an interview while he was
heading toward California on a fact-finding mission. "I don't believe it's
going to be adequate to get us through this summer, to just continue saying
that eventually supply will come into line with demand and the problems will
be resolved."
Meantime, the incoming chairman of the Permanent Subcommittee on
Investigations, Democratic Sen. Carl Levin of Michigan, plans to investigate
the role of oil companies in higher gas prices. "This is the manipulation of
prices, and we've got to investigate it because our people in Michigan are
absolutely furious," Sen. Levin says. Just as Republicans once used the
machinery of Congress to probe then-President Clinton's problems, Democrats
see ripe opportunities for embarrassing an ex-oilman president with strong
links to Texas energy-producing companies that are profiting from today's
supply squeeze.
During the 2000 presidential campaign, five of the major companies now
supplying power to California -- Duke Energy Corp., Dynegy Inc., Enron Corp.,
Reliant Energy Inc., and Williams Cos. -- gave some $3.6 million to Mr. Bush
and the GOP, more than triple the amount donated to Democrats. Three of those
companies are based in Mr. Bush's home state of Texas, which only adds to the
political tensions.
The Democratic offensive has the GOP worried. Price caps amount to "terrible
policy, but good politics," frets Republican pollster Neil Newhouse. Mr. Bush
now faces "a difficult job" overcoming the Democratic arguments for caps, he
adds, because "control of the Senate has given them a megaphone on issues
that they just didn't have before."
That doesn't necessarily mean Mr. Bush ultimately will suffer grave damage.
As congressional Republicans learned to their chagrin in battles with Mr.
Clinton, the presidential bully pulpit remains the most potent weapon in
American politics for framing policy debates. Even with that advantage,
though, the Clinton administration found that the initial appeal of arguments
on issues such as tobacco regulation and prescription drugs faded under
sustained counterattack by Republicans and affected industries.
And so far, polls are showing that Mr. Davis also is paying a political price
in California for the crisis. Still, Mr. Davis, who faces re-election next
year and may later seek the 2004 Democratic presidential nomination, believes
he can limit the damage by emphasizing his efforts to expand supply and
spotlighting the actions of energy companies in Texas and elsewhere. On CNN's
"Larry King Live" this week, he complained that "money sucked out of this
state" amounts to "a massive transfer of wealth" from Californians to the
industry.
Whatever the political ramifications, they aren't limited to California.
Consumers in Washington, Idaho and Montana that are serviced by the same
electric grid have seen 30% increases in their utility rates. That is why Mr.
Davis, with support from some GOP governors in the West, is asking the
Federal Energy Regulatory Commission to impose short-term wholesale price
caps to help protect electricity consumers from soaring rates until new power
plants approved for construction in California increase supply enough to
bring prices down through market forces. California Democratic Sen. Dianne
Feinstein and Oregon Republican Sen. Gordon Smith are offering legislation to
accomplish that in the committee that Mr. Bingaman now will chair.
As a matter of policy, most economists probably would agree with Mr. Bush's
free-market position on price caps, though that sentiment is hardly
unanimous. As he met with the president this week, Mr. Davis released a
letter from 10 prominent economists backing price caps as a temporary remedy
for a market "not characterized by effective competition." One of the
signatories was Alfred Kahn, architect of airline deregulation under
President Carter.
But Bush economic advisers, heeding the free-market arguments that have held
the high ground in regulatory policy debates since the Reagan era, insist
that such caps would distort the energy market and be difficult to abandon
even when market conditions turn more favorable for consumers. "Price caps do
nothing to reduce demand, and they do nothing to increase supply," Mr. Bush
said in California this week.
Mr. Davis says the Federal Energy Regulatory Commission is obliged under law
to assure "just and reasonable" prices, and he says he will sue the agency to
force it to act despite the dismissal earlier this week of a similar lawsuit
filed by California's Democratic legislative leaders. Whether the governor's
effort succeeds, it could provide another forum in which supporters of price
caps can make their case. In discovery, for instance, California attorneys
may be able to get industry data on how much the wholesalers are paying to
produce electricity and their real costs of delivering it.
Such transactions are drawing attention because of the significantly higher
prices being charged in California compared with other states. This week, for
instance, the price of a million British Thermal Units of natural gas in the
San Juan Basin in New Mexico was $2.80, said one economist for the Senate
Energy Committee. But when that gas arrived at the Southern California
border, she said, the price was $10.20 per million BTUs.
Mr. Bush himself voiced concern about such differentials in his meeting with
Mr. Davis, and ordered the FERC to step up monitoring for price gouging. He
has designated Pat Wood, a recent FERC appointee who headed the Texas Public
Utilities Commission during his governorship, as the administration's lead
liaison to California.
Mr. Wood, in fact, could end up an increasingly important player as the
crisis in California and other Western states plays out this summer. Mr.
Wood, who supported some price caps in Texas, is considered more flexible on
the issue than is FERC's current chairman, free-market champion Curtis
Hebert. During his confirmation hearings, Mr. Wood said it may be too late
for price caps because the commission would need months to study materials
and determine an appropriate market rate.
If the administration continues resisting caps, Democrats vow to score
political points heading into the 2002 congressional elections. "Bush is the
individual who ginned this up into a crisis" by frequently calling attention
to the nation's energy problems, says Jim Jordan, executive director of the
Democratic Senatorial Campaign Committee. "Yet the administration won't
consider any serious short-term action to alleviate the problem for the
public."
--- Energy Problems?

Public views of President Bush and energy problems, nationally and
among Californians:

Nationally
Q: In general, do you approve or disapprove of the way President Bush
is handling his job as president?

Approve 52%
Disapprove 38%

Q: Based on what you have read or heard, do you favor or oppose
President Bush's plan to deal with the country's current energy
problems?

Poor job 49%
Good job 38%

Q: How do you think President Bush is handling energy?

Oppose 42%
Favor 38%
Unsure 20%

In California
Is it a good or bad thing for the federal government to cap energy
prices?

GOOD THING BAD THING NO OPINION

All adults 70% 24% 6%
Registered voters 68 26 6
Democrats 79 17 4
Republicans 57 37 6
Other 63 29 8

Sources: National poll numbers from CNN/Time poll; California numbers
from the Field Poll

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

California; Metro Desk
Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
RICH CONNELL; ROBERT J. LOPEZ
TIMES STAFF WRITERS

06/01/2001
Los Angeles Times
Home Edition
B-1
Copyright 2001 / The Times Mirror Company

California officials are probing a vast private network of electricity
trading floors suspected of being a central culprit in California's spiraling
energy prices.
A special state Senate panel investigating alleged manipulation of the energy
market is zeroing in on hundreds of thousands of secretive transactions each
year that help determine whether California will have the power it needs--and
what it will have to pay to get it. Those activities also are central to a
lawsuit by the San Francisco city attorney, who has accused power companies
of using unfair business practices to reap huge profits from the state's
volatile and vulnerable energy market.
A single electron may be traded nearly a dozen times, often at escalating
prices, before reaching California. By then, the actual cost of producing the
electricity may have no relation to its price.
Unlike other commodity and stock exchanges, the frenzied daily activity on
the energy trading floors escape any independent oversight, which critics
contend makes the operations ripe for collusion and price-fixing.
"They're playing the California power game," said attorney Michael Aguirre, a
former federal prosecutor now suing power companies on behalf of Lt. Gov.
Cruz Bustamante. "The trading is the epicenter of the whole enchilada. They
trade and inflate the value."
Power company representatives say their trading floors operate legally and
ethically. "I don't think there has ever been the slightest shred of evidence
[of] something illicit or wrongdoing," said Gary Ackerman of the Western
Power Trading Forum, an industry trade group.
Ackerman and players in the market say prices are not always ratcheted up
through the trading. Often, they say, traders can match supply and demand to
help stabilize prices through daily transactions and long-term contracts.
Still, Aguirre and others say, these sophisticated trading operations have
outmaneuvered bureaucrats at Cal-ISO and the state Department of Water
Resources, the agencies responsible for buying billions of dollars worth of
power over the past several months.
The sprawling trading floors, scattered across the country, are marvels of
high technology. Amid banks of computers and huge wall screens that track
weather, electricity prices and demand across vast regions, mathematicians,
meteorologists and rows of gung-ho traders try to optimize profits buying and
selling one of the world's most volatile commodities.
"These are trading floors that are well outside any regulatory format," state
Sen. Joseph Dunn (D-Santa Ana) said Thursday. "What impact do these trading
floors have on the situation in California?"
Plant Operations Also Scrutinized
Although trading floors are an important focus of state authorities, the
probes of the power companies include an array of issues. Investigators are
digging into the operations of power plants to determine whether unnecessary
shutdowns have been used to tighten supplies and hike prices. Dunn, a onetime
consumer attorney, is heading the Senate investigation panel that is trying
to unravel these issues and the role of the trading floors, operated by the
nation's largest power marketers: Enron, Mirant, Duke Energy, Dynegy Inc.,
Williams Cos. and Reliant.
The committee is seeking records that could determine whether the power
companies have swapped information on trading tactics to maximize prices.
Among dozens of categories of documents Dunn's committee has requested--and
may ultimately subpoena--are computer records from trading floors, recordings
of communications between traders for different companies and training
manuals for traders.
"We know one product of that trading is it drives up the price. . . . What
are you trading for, other than to drive up the price?" Dunn said in a recent
interview.
His committee, which has yet to uncover any wrongdoing, is battling with the
power companies to obtain information the firms insist is confidential.
San Francisco City Atty. Louise H. Renne also is focusing on trading-floor
activity.
"That is a central concern of ours," said Owen Clements, Renne's chief of
special litigation. Clements suspects power traders may be "churning"
megawatts through repeated sales and boosting prices.
"If everyone passes it around and makes a profit, and the ratepayer and the
state of California are stuck with the bill . . . that certainly looks like
an unfair business practice," he said.
A spokesman for Houston-based Enron, which operates one of the busiest
trading operations, said critics misunderstand the energy market, where
profits are not necessarily tied to high prices.
"We're agnostic about the direction of prices," Mark Palmer said. "We make
money one way or the other." He said the trick is in having a diversified
portfolio--and offering unique risk services--to absorb the changing market.
Palmer said those implying misconduct on the trading floors are "100%
politically motivated. . . . These are folks who want to return California to
[power] regulation."
Still, some industry officials acknowledge that some additional oversight of
trading floors may be needed. Ackerman, of the power trading association,
said his members have asked federal regulators to consider an auditing
program to review trading activities.
"If people don't have confidence in trading floors," Ackerman said, "that's a
problem."
*
Times staff writer Miguel Bustillo contributed to this story.

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

World Stock Markets
Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
By Jesse Pesta
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
C11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -- Foreign companies are on a shopping spree in India's stock
market, buying up their own affiliates and hoping to take them private.
In recent weeks, companies ranging from Otis Elevator Co. and Carrier Corp.,
both of Farmington, Conn., to Hoganas AB of Sweden, a player in the global
iron-powder business, have made open offers for the shares of their Indian
units, sometimes at prices that suggest they consider themselves a bargain.
Boston chemicals maker Cabot Corp. offered 100 rupees ($2.13) a share for
Cabot India Ltd. at a time when it was trading around 55 rupees.
Royal Philips Holland has offered to buy the 17% of light-bulb maker Punjab
Anand Lamp Industries it doesn't already own, according to Punjab. Otis and
Carrier, which are units of United Technologies Corp., Hartford, Conn., have
offered to buy all shares outstanding of their Indian affiliates, Otis
Elevator Co. (India) Ltd. and Carrier Aircon Ltd. The price for Carrier
shares was a nearly 100% premium to the stock's price prior to the offer.
The buybacks have triggered a surge in the stocks of other companies with a
foreign pedigree. Companies including Rayban Sun Optics India Ltd. (a unit of
Bausch & Lomb Inc., Rochester, N.Y.) and Philips India Ltd. (a unit of Royal
Philips Holland) have seen share prices rise as much as 40% or more since the
mid-May offers for Otis and Carrier, which were two of the early ones in the
current wave.
Both Rayban and Philips India deny open offers are planned. In any case,
Philips already boosted ownership in its Philips India unit to 83% from 51%
late last year.
In contrast to the surging shares of multinationals since mid-May, the Bombay
Sensitive Index has risen only 1.56%. It closed yesterday at 3631.91, down
30.13.
The trend has several drivers. For one thing, Indian stocks remain battered
after a rash of big market scandals earlier this year. Meantime, taking a
company private means it no longer is required to share as much information
about its business either with the market or a local partner. "In tough times
it will safeguard your interest," says Jignesh Shah, strategist at Ask-RJ
Investment Management in Bombay.
But most significantly, India has slowly made it easier in recent years for
foreigners to invest. Indeed, the buyback trend contrasts with the feud
between Dabhol Power Co. and its customer, the Maharashtra State Electricity
Board, over unpaid electricity bills. Dabhol, which is 65%-owned by Houston's
Enron Corp., is India's largest foreign investment and an emblem of the
difficulties foreign companies have encountered through the years. But the
buyback trend "works against the story of negative foreign-investment
environment" in India, one analyst notes.
As a rule, the companies play down the importance of stock price. Hoganas's
buyback for instance reflects the company's global strategy, but reflects as
well on a liberalizing India: Everywhere else in the world Hoganas owns 100%
of its subsidiaries, even Japan and China, says Virendra Sud, managing
director. But India didn't allow full foreign ownership 15 years ago, when
the company came here, he says, or else "we would have done it then." It's
purely coincidental that the buyback comes just as the stock market "has sort
of hit rock bottom," he says.
Otis attributes its buyback partly to India's growing appetite for more
sophisticated elevators, which means transferring advanced designs here.
Technology transfer heightens the need for closer cooperation with the
parent, says Managing Director Ashok Malhotra. But the company's reason for
going public in the first place sheds light on the regulatory cycle playing
out today in India. In the 1970s, India went through a phase of requiring
foreign companies to be part locally owned, so Otis made the public offer
that it is trying to undo today. "You have to work under the rules of the
time," Mr. Malhotra says.
---
Yesterday's Market Activity
Nasdaq's losses overnight pressured markets throughout Asia as Tokyo blue
chips tumbled 1.7% and South Korea's benchmark index fell 2.6%. European
markets rebounded somewhat from the previous day's declines, though volume
was thin. Overall, the Dow Jones World Stock Index rose 0.10%, or 0.20, to
195.33. Excluding the U.S., the index fell 0.68%, or 0.96, to 141.08.
In TOKYO, the Nikkei Stock Average was down 1.7%, or 231.21 points, to
13262.14. Nomura Securities downgraded its ratings on Fujitsu, Toshiba and
NEC, causing a broad slump in technology shares. Fujitsu ended down 2.8% at
1,543 yen, NEC slumped 3.9% to 1,947 yen, and Toshiba fell 3.6% to 675 yen.
In HONG KONG, the Hang Seng Index ended down 1.8%, or 245.72 points, at
13174.41. China Mobile fell 2.8% or 1.1 Hong Kong dollars to close at
HK$37.80. Property concern Cheung Kong dropped 3.4% to HK$85 and Sun Hung Kai
finished down 2.4% at HK$72.75.
In LONDON, the FTSE 100 Index slipped 0.01%, or 0.8 points, to 5796.10.
Services company Rentokil Initial surged 12.9% to 215 pence after it said
sales from continuing businesses were up 7.1% and operating profit was up 9%
year on year. It also said it has bought back 120 million of its own shares
since March. Invensys closed 6% higher at 142 pence after posting results in
line with expectations. Retailer Boots ended 3.5% higher at 597 pence after
posting earnings results in line with expectations.
In PARIS, the CAC 40 Index closed up 0.2%, or 9.92 points, to 5454.19.
Alcatel closed up 2.4% to 29.95 euros following the release Wednesday of
weaker-than-expected results and the demise of merger talks with Lucent
Technologies. J.P. Morgan cut its earnings-per-share forecast for the
communications-equipment supplier. Deutsche Bank also expressed negative
sentiment about the company, saying an industry turnaround is unlikely before
the fourth quarter of 2001. Car maker Renault closed down 1.1% to 55.15
euros. Lehman Brothers cut its 2001 earnings forecast, citing exposure to
falling demand in U.S. and Europe.
--- MSCI Indexes

% FROM
May 30 May 29 12-00

U.S. ........... 1183.7 1201.5 -5.3
Britain ........ 1723.9 1744.4 -6.4
Canada ......... 1030.8 1049.4 -10.9
Japan .......... 828.4 844.2 +2.5
France ......... 1763.4 1794.3 -7.3
Germany ........ 755.2 767.4 -7.7
Hong Kong ...... 6844.0 6920.0 -11.0
Switzerland .... 939.5 946.6 -7.6
Australia ...... 700.3 702.9 +9.4
World Index .... 1120.6 1136.4 -8.2
EAFE MSCI-p .... 1325.6 1342.7 -11.2

As calculated by Morgan Stanley Capital International Perspective,
Geneva. Each index, calculated in local currencies, is based on the
close of 1969 equaling 100.

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

International
Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
By Bhushan Bahree
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
A11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

PARIS -- Exxon Mobil Corp. and the Royal Dutch/Shell Group appear poised to
win coveted leadership roles this weekend in a historic reopening of Saudi
Arabia's energy industry.
People familiar with developments said that barring last-minute upsets,
Exxon, the world's largest publicly owned oil company, will be named operator
of the largest opening being offered by the Saudis, the South Ghawar
natural-gas project that will require investment of $15 billion and is named
after the world's largest oil field, in the country's eastern province. But,
they cautioned, because Shell has been competing hotly for South Ghawar,
nothing can be taken for granted until the Saudis officially name the winners
and sign memorandums of understanding on Sunday.
As of late last night, Shell, the second largest company, was expected to win
the second prize: leadership of the Shaybah gas project, which requires
investment of $5 billion and is named after a recently developed oil field in
the kingdom's remote Empty Quarter, a southeastern desert region. Saudi
Arabia already has named Exxon leader of the third and last gas project
opened to foreign investment, the Red Sea project that requires investment of
as much as $5 billion.
Saudi Arabia's energy industry was nationalized in the 1970s, but over the
past two years has been reopened to foreign investment, prompting a fierce
contest among the world's largest oil companies. The people familiar with
developments cautioned that until the choices have been endorsed by an
11-member ministerial committee headed by Saudi foreign minister Prince Saud
al-Faisal, and given the final nod by Saudi Crown Prince Abdullah, they
couldn't be considered final.
The people said the ministerial committee met late yesterday ahead of a
formal signing ceremony planned for Sunday in Jeddah, the Saudi city on the
Red Sea coast. Such is the importance of getting into Saudi Arabia that the
chief executives of the eight companies chosen to participate in the gas
projects are flying to Jeddah to sign the memorandums, a prelude to
negotiations about fiscal and other terms. Final agreements aren't expected
until year's end at the earliest.
Officials of Exxon, Shell and the Saudi government declined to comment on the
choices made by the kingdom, which has the world's largest crude reserves and
is fifth in the natural-gas reserves after Russia, Iran, Qatar and the United
Arab Emirates. A leadership role -- or operatorship in industry parlance --
brings the opportunity to set the pace of the project and create local
networks that can prove valuable for future projects.
The kingdom still isn't allowing foreign companies into its crude-oil
business, which is run by the state-owned Saudi Aramco, but foreign oil
companies hope they eventually will be allowed into that sector, too. Indeed,
Aramco is expected to participate in the gas projects opened to foreigners,
with voting rights that have yet to be determined. The projects are
wide-ranging and encompass a long chain from exploration and production of
natural gas, to its transportation and use to generate electricity and in
water desalination plants.
Last month, Saudi Arabia named eight foreign companies, from a list of 11, to
take part in three consortiums for these projects. Besides Exxon and Shell,
they are BP PLC, TotalFinaElf SA, Conoco Inc., Phillips Petroleum Corp.,
Occidental Petroleum Corp. and Enron Corp. The three companies that sought
but failed to get a place are Chevron Corp., ENI SpA, and Marathon Oil Canada
Inc.
Industry officials say the competition was some of the fiercest ever. Said a
senior industry executive: "Everybody is looking 10 years down the road, and
the place to be is in Saudi Arabia."

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

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, Jun 1 Asia Pulse - A new package 'acceptable to all' is being
evolved to resolve the seven-month old wrangle between Enron promoted Dabhol
Power Company and the Maharashtra State Electricity Board (MSEB) over the
issue of cost of power and payment of bills, A V Gokak, the federal
government's representative in Maharashtra's negotiation committee said
today.
"Things are moving in the right direction and government is serious to
resolve the crisis," Gokak told PTI after a meeting with the Finance
Minister, Yashwant Sinha, here.
Gokak said none of the parties to the dispute are in favour of closure of the
$3 billion project.
Earlier, the Indian government had asked Central Electricity Authority (CEA)
to explore possibility of selling the DPC power to deficient states. But the
Power Minister, Suresh Prabhu, had ruled out possibility of National Thermal
Power Corporation (NTPC) lifting DPC power.
Prabhu had stated that the government would make all efforts to settle the
matter in consultation with the stake holders.
Asked if any time frame has been set to break the impasse, Gokak said "delay
is in nobody's interest, but there are no readymade solutions."
The negotiating committee, headed by Madhav Godbole, has held two rounds of
negotiations with the last round held earlier this week being termed
"positive" by both DPC and the MSEB.
Gokak is believed to have put forward alternative solutions in resolving the
crisis.
(PTI) MYB 01-06 2030

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

		GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001
By JOHN DIZARD

		The share price of one large electron-pushing company is up nearly 70 per
cent this year, but could be in line for another pop to the upside.
		That may sound like a report from Mary Meeker, the formerly omniscient
internet stock guru, or like your broker's stock-of-the-week pitch.
		Well, neither will be making such a claim at the moment - their legal
departments have them on too tight a leash. And the stock I have in mind is
not a technology stock in the sense of a silicon basher or programmer farm.
It is Edison International, the California electric power holding company,
whose Southern California Edison utility has been very publicly hovering at
the edge of bankruptcy for several months.
		The day after President George W. Bush made his "You're on your own,
California" speech, Edison's share price dropped more than 5 per cent. And
while the year-to-date rise, from Dollars 6.25 to Dollars 10.50 this week,
has been impressive, share-holders have seen a 46 per cent loss year on year.
		So why should anyone be optimistic about the chances for the common
shareholders in the holding company? Essentially because the state
legislators are being terrified into coming up with a bail-out plan - not
exactly the plan of Gray Davis, the governor of California, but one that will
preserve some value for the holding company shareholders and give them a more
predictable future.
		By now every one knows that the California utilities were squeezed by fixed
retail rates and rising wholesale costs. Edison has said it has Dollars 3.5bn
in "undercollected" wholesale power purchase costs. The state of California
(and its taxpayers) stepped in to buy power when the utilities ran out of
borrowing capacity in January. PG&E, the other big investor-owned utility,
filed for Chapter 11 protection back in April. Edison held off from filing,
preferring to try to get a state government bail-out.
		Much is missing from the standard account. For example, consumer groups
believe there is a lot of padding in the "undercollect", and that the holding
company should cough up billions in assets paid for with dividends supplied
by the SCE subsidiary. Many of the California public believe that the
merchant generators such as Duke Energy and Enron should pay back overcharges
rather than get any back bills paid.
		And yet the legislative tide is turning in Edison's favour. Within the next
couple of weeks, I expect the Democrats - who control both the state Assembly
and Senate - to come up with a bail-out plan for Edison that has a good
chance of passing both houses and being signed into law by the governor. The
reason is the the distinction they have begun to make between ratepayers and
taxpayers.
		To a legislator, tax payments, as distinct from utility rates, are things
that run through their hands and go to favoured programmes. Taking over the
payment of electric wholesale costs did not look too scary back in January,
when Governor Davis said it would go on for a few weeks and be easily covered
with the cash on hand. Well, the state has paid out nearly Dollars 8bn and
its cash reserves will be under increasing pressure until a Dollars
12bn-Dollars 13bn bond issue can be floated some time after August 15. A
decline in tax receipts is putting even greater stress on the state
government's resources.
		So the legislators want to get as far out of the power business as they can,
as fast as they can. That means saving Southern California Edison from
Chapter 11.
		The deal being negotiated within the Democratic leadership looks something
like this. The state will make a large loan, call it Dollars 1bn, against the
security of Edison's transmission system, to be repaid either through a sale
of the system to the state or a deduction from the allowed return on the
towers and wires. The holding company will pay out about Dollars 400m to prop
up the subsidiary. The rest of the undercollect will be paid for by a
"dedicated rate component", or charge to ratepayers - mostly commercial,
industrial and large users - that cannot be revoked by the Public Utility
Commission. The generators can get 70 cents on the dollar for their back
bills right away, or they can litigate forever.
		There are a few details that lawyers will quibble over, such as the
constitutionality of retroactively raising rates. And some may ask if it is
not cheaper just to let Edison go into Chapter 11, because even with the plan
it will not be able to take the state's place as a wholesale buyer at any
time soon. But I would bet on its passing anyway. And that would be good news
for Edison International shareholders, since they will have held on to most
of the holding company's assets, and still have an ongoing business in the
subsidiary.
		Don't bet the rent money on it, but it looks closer to me than a comeback in
spending on semiconductors. Maybe the children's college money - if you lose
it, they should work harder anyway.
		Copyright: The Financial Times Limited

		INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001
By ROBIN ALLEN and MATTHEW JONES

		ExxonMobil and Royal Dutch/Shell are the favourites to lead two of Saudi
Arabia's multi-billion dollar upstream gas projects to be opened to foreign
companies, according to industry observers in the Middle East.
		A committee of Saudi ministers responsible for the developments was due to
meet late last night. The companies are expected to learn the size of their
stakes either late today or early tomorrow, an official close to the projects
said.
		Saudi Arabia, which has excluded foreign companies in upstream operations
since 1975, last month announced the selection of eight oil groups to
participate in three gas projects requiring initial investment of around
Dollars 25bn.
		Exxon has already been appointed leader of Core Venture 2, on the Red Sea
coast, which also includes Occidental Petroleum and Enron Corp of the US. The
partners in Core Venture 3, the Shaybah development in the south-eastern
quarter of the kingdom, are Shell, TotalFinaElf of France and Conoco of the
US.
		Analysts and industry experts in Riyadh and Abu Dhabi said Exxon was expected
to be named leader of South Ghawar, also known as Core Venture 1, with a 35
per cent stake. BP and Shell would each be awarded 25 per cent shares while
Phillips would receive 15 per cent.
		Exxon was expected to be given a 70 per cent share of Core Venture 2, with
the remainder split equally between Occidental and Enron. Shell was tipped to
lead Core Venture 3 with 40 per cent of the project, while Total and Conoco
were expected to win 30 per cent each.
		One analyst said there was an outside chance that BP would be awarded
leadership of Core Venture 1 for political reasons.
		A BP official last night said the group had had no indication of the
decision, but added: "Even if we are not selected we will still have a very
significant part in a huge project. The important thing is to be there."
		Additional reporting by Robin Allen in Dubai
		Copyright: The Financial Times Limited

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, June 1 Asia Pulse - International ratings agency Fitch has changed
the Rating Outlook on India's sovereign ratings from Stable to Negative,
citing well-flagged concerns about fiscal policy, privatization and the
deterioration in the foreign investment climate.
Fitch currently rates the foreign and local currency obligations of India at
BB+ and BBB- respectively.
The negative rating outlook reflects the slow progress of the government in
implementing privatization and addressing the weaknesses in public finances.
The fiscal-monetary policy mix in India remains unfavorable, resulting in
relatively high real interest rates and crowding out of private sector
investment.
Until the authorities display a concerted willingness to address fiscal
imbalances, India will remain locked in a stop-go cycle of growth and the
sovereign could slip into a debt trap, Fitch said in a press statement.
The recent corruption scandal, involving the ruling Bhartiya Janata Party
(BJP)-led coalition government, threatens to exacerbate these trends and slow
economic reform.
India's general government fiscal deficit at over 9 per cent of GDP is among
the highest in the realm of rated sovereigns.
Persistently high fiscal deficits have led to a build-up of the general
government's debt burden, estimated to be over 60 per cent of GDP.
In addition, the government has guarantees outstanding amounting to 9 per
cent of GDP.
Fitch reiterates the point that such guarantees, issued to back mainly
infrastructure projects, are contingent liabilities of the government.
This has most recently been borne out in the case of Enron, where the US
power company has invoked a central government guarantee for payment arrears
accumulated by the Maharashtra State Electricity Board.
ASIA PULSE 01-06 1609

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

Thomas E. White becomes Secretary of the Army

06/01/2001
M2 Presswire
Copyright 2001 M2 Communications, Ltd. All Rights Reserved.

Thomas E. White became the 18th secretary of the Army today after being
nominated by President George W. Bush on May 1, 2001, and confirmed by the
Senate on May 24.
White expressed his gratitude to the president and the secretary of Defense
for their confidence and trust in him. During his confirmation hearing before
the Senate Armed Services Committee on May 10, White identified four
objectives he will pursue as secretary of the Army in support of the
president and the secretary of Defense: to invest in people, to assure
readiness, to transform the entire Army and to adopt sound business practices.
The secretary of the Army is the U.S. Army's senior civilian, responsible by
statute for all matters relating to Army manpower, personnel, reserve
affairs, installations, environmental issues, weapons systems and equipment
acquisition, communications and financial management. The secretary leads a
work force of some one million active duty, National Guard and Army Reserve
soldiers and 225,000 civilian employees. The department has an annual budget
of approximately 70 billion dollars.
Before his appointment as secretary of the Army, White was the vice chairman
of Enron Energy Services, the Enron corporation subsidiary responsible for
providing energy outsource solutions to commercial and industrial customers
throughout the United States.
White began his service to the nation in 1967, after graduating from the U.S.
Military Academy at West Point. His distinguished career as a commissioned
Army officer included two tours in Vietnam and service as commander, 1st
Squadron, 11th Armored Cavalry Regiment; commander, 11th Armored Cavalry
Regiment, V Corps; and executive assistant to the chairman, Joint Chiefs of
Staff. He retired from the Army in 1990 with the rank of brigadier general.
For additional information, see the Army web site at
http://www.dtic.mil/armylink or contact Army Public Affairs at (703)
697-7550.
((M2 Communications Ltd disclaims all liability for information provided
within M2 PressWIRE. Data prepared by named party/parties. Further
information on M2 PressWIRE can be obtained at http://www.presswire.net on
the world wide web. Inquiries to info@m2.com)).

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

Some light at last!

06/01/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

NEW Delhis intervention in the tussle between Enron and the Maharashtra
government is a welcome development. The government wants the Central
Electricity Authority to find out whether electricity generated by Dabhol
Power Company can be sold to states which need power badly if it cant be used
by Maharashtra.
This is a good idea India is seriously short of reliable, quality electricity
supply. Maharashtra claims that it doesnt need even the 740 MW now generated
by DPC at going rates. This creates further trouble: the lower Maharashtras
offtake, the higher the unit price of DPC power. Once other power hungry
states start buying up electricity from DPC, the price per kilowatt hour will
fall sharply.
The first step to getting DPC out of the hole that Enron, Maharashtra and
successive Indian governments have dug it into, is to allow the utility to
sell power to anyone who wants to purchase it at going rates. However, asking
central utilities like the fledgling Power Trading Corporation to evacuate
DPC power for sale outside Maharashtra wont solve the hassles of the sector
for all time.
The government should modify electricity laws to allow generating companies
to sell electricity to all users immediately. An ordinance passed by New
Delhi will do the trick power is a concurrent subject, with central
legislation overriding states.
But even if that happens, it is doubtful if there will be too many buyers for
Dabhol power at its present price about Rs 4 per unit with the plant running
at high capacities. If the price is to be brought down further, the deal with
MSEB will have to be renegotiated.
The Godbole Committee says that some financial restructuring, de-dollarising
of debt and equity, and so on can bring prices down by about 30 per cent from
DPCs minimum Rs 4 per unit rate today.
Otherwise, as the GC points out, it will be impossible for the project to be
viable at current tariffs. India desperately needs electricity to grow. For
the power sector to grow, reforms are necessary at every level
renegotiations, yes, but also changes in laws and the rules of the game.

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

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
By MICHAEL LIEDTKE
AP Business Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SAN FRANCISCO (AP) - State energy regulators say they are close to finishing
probes into whether electricity wholesalers illegally aggravated the state's
power squeeze.
In one year, California's power crisis has raised customer rates by $5.7
billion and dumped a $13 billion bailout bill on taxpayers. State officials
hope to recover the money if they find evidence that out-of-state wholesalers
manipulated the market to illegally driving up prices.
The wholesalers say they are being turned into scapegoats for a 1996
deregulation law sculpted by California lawmakers and the state's two largest
utilities, Pacific Gas and Electric and Southern California Edison.
The utilities have reported a combined $8.2 billion in losses since June
2000.
Two legislative committees are investigating allegations that wholesalers
created artificial supply shortages that drove wholesale electricity prices
as high as $1,900 per megawatt hour. Before June 2000, wholesale prices for
energy sold under similar terms rarely climbed above $150 per megawatt hour.
At least five lawsuits, including one filed by San Francisco City Attorney
Louise Renne, seek damages from wholesalers on behalf of all Californians.
"I don't think these are going to be very hard cases to make," said Owen
Clements, chief special litigator for San Francisco. "Even if they didn't
break the letter of the law, they clearly have violated the spirit of the
law."
Attorney General Bill Lockyer is offering multimillion-dollar rewards to
power plant workers and energy traders who provide the state with inside
information about wholesaler's decisions.
"Everyone feels like they're being ripped off. There's a lot of emotional
belief that unfair things have been done, but we're still working through the
case," said Lockyer, a Democrat who voted for the deregulation law when he
served in the state Senate.
The state utilities commission is inspecting power plant documents that may
show whether some facilities shut down unnecessarily to diminish supply. The
commission and Lockyer are investigating whether the plants then increased
production to reap big profits.
Power wholesalers maintain that the plants, many of which are 30 to 40 years
old, shut down for legitimate equipment repairs and maintenance.
"No one in our industry cuts back on production so a competitor can make more
money. It just doesn't happen, at least not on planet Earth," said Gary
Ackerman, executive director of the Western Power Trading Forum, a trade
group.
The Federal Energy Regulatory Commission earlier this year alleged that
Tulsa, Okla.-based Williams profited from the closure of two Southern
California power plants owned by a business partner, Arlington, Va.-based AES
Corp.
Without admitting wrongdoing, Williams refunded $8 million to settle the
charges.
California's investigations are examining the conduct of Williams, as well as
several other prominent power wholesalers, including Houston-based Enron
Corp., Dynegy Inc., and Reliant Energy, Charlotte, N.C.-based Duke Energy and
Atlanta-based Mirant Corp.
Cohen said the utilities commission could file a civil lawsuit against the
wholesalers by the end of June. Lockyer expects to wrap up an investigation
in late July at the earliest.
---
On The Net:
California Public Utilities Commission: http://www.cpuc.ca.gov
California Attorney General: http://www.caag.state.ca.us
http://www.enron.com
http://www.reliant.com
http://www.dynegy.com
http://www.duke-energy.com
http://www.williams.com
http://www.mirant.com

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

California Lawmakers Eye Billing Businesses for Edison Rescue
By Jason Leopold

05/31/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Dow Jones Newswires
LOS ANGELES -- California lawmakers are mulling yet another set of ideas for
rescuing embattled Southern California Edison, and this time businesses would
be on the hook.
In an attempt to deflect charges of a bailout that have thus far stymied
efforts to restore the utility to solvency, legislators are now considering
ways to shift the burden of financing the rescue from residential ratepayers
to the state's largest businesses, aides to key state lawmakers said this
week.
The ideas being worked over by Senate President Pro Tem John Burton, Assembly
Speaker Robert Hertzberg and Assemblyman Fred Keeley have yet to take shape
as formal proposals. But an aide to Burton said some key lawmakers are so
"desperate" to keep Edison International (EIX) utility Southern California
Edison from following PG&E Corp. (PCG) unit Pacific Gas & Electric into
bankruptcy court that they are willing to consider anything that will takse
residential consumers out of the equation.
"The idea is that the large industrial customers are the ones who pushed for
deregulation in the first place, so they should be responsible for bailing
out Edison," the aide said. "We're looking to take the burden off of
residential ratepayers."
The premise of a plan discussed by lawmakers on a conference call Thursday is
to designate Southern California Edison's largest commercial ratepayers as
non-core customers. Those customers -- some 3,600 users of more than 500
kilowatt-hours a month -- would be responsible for financing the cost of
power the utility must purchase or have purchased for it in the wholesale
market. The non-core customers would also help the utility recoup most of its
$5.5 billion in unrecovered power costs through a surcharge on their bills.
Core residential customers would be protected from the wholesale power market
as the primary beneficiaries of the low-cost power the utilities generate
themselves or have locked up in long-term contracts.
Enron Pushing Access to Customers
Separately, Enron Corp. (ENE) has been lobbying lawmakers for several weeks
to win approval to sign power-supply contracts with Southern California
Edison's largest commercial customers, leaving the utility to serve just its
residential customers and small businesses, aides to Gov. Gray Davis, Messrs.
Burton and Hertzberg said.
An Enron executive confirmed that the company sent a four-page proposal to
Mr. Hertzberg proposing that Southern California Edison's large industrial
customers sign so-called direct-access contracts with Enron. Enron also has
recently made a presentation about direct access to some members of the
California Chamber of Commerce.
Under the proposal, heavy users would be required to contract directly with
companies like Enron for their power.
Direct access was a key part of the state's 1996 deregulation plan, but was
scrapped early this year when the state started buying wholesale power in
place of the utilities.
The core/non-core proposal is one of several being discussed by lawmakers as
alternatives to a memorandum of understanding Mr. Davis struck with Edison in
April. The MOU -- which doesn't vary much from an agreement in principle
reached in February -- has been called dead on arrival by some lawmakers, who
have been mulling various alternatives rather than moving the agreement
forward.
State Sen. Debra Bowen, a Redondo Beach Democrat and chairwoman of the Senate
energy committee, said there are so many "Plan B's" floating around the
Legislature that, "We're going to need to hire an apiculturist."
Steve Maviglio, a spokesman for the governor, said the Davis administration
is still dedicated to seeing legislation to enact the memorandum of
understanding move through the Legislature, but said separating the utility's
"core and non-core" customers would be at the forefront of new discussions.
It was too early to say whether the governor would support the plan, he said.
Dominic DiMare, a lobbyist with the California Chamber of Commerce, said the
chamber has told the Davis administration that shifting the burden of the
Southern California Edison bailout to businesses is "a very bad idea" that
could cost the state billions of dollars in economic activity.
"This [plan] would really screw businesses," Mr. DiMare said. "We just got
hit with a 50 to 90% rate increase. We're dangerously close to losing our
businesses to other states."
Write to Jason Leopold at jason.leopold@dowjones.com
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved

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

Construction of power plant in DeSoto County is underway
By TIMOTHY R. BROWN
Associated Press Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

JACKSON, Miss. (AP) - A North Carolina-based independent electric power plant
developer and operator has started construction on a $490 million generating
facility in DeSoto County.
Cogentrix Energy Inc. will build the 800-megawatt power plant in Southaven on
40 acres next to existing TVA and Entergy electric substation facilities. The
plant is the largest economic development project in the history of the north
Mississippi county.
The second largest project is a $150 million power plant currently being
built by Duke Energy.
Both are expected to be operational in 2003.
The National Energy Production Corporation, a subsidiary of the Enron Corp.,
is serving as the engineering and construction contractor for the Congentrix
project.
"It is in construction as we speak," Jeff Freeman, Congentrix vice president
for corporate communications, said Thursday. "NEPCO is mobilized on site and
they are doing earth work. It will probably take them 24 to 27 months to get
the plant in commercial operation."
Freeman said the Charlotte, N.C., company found several reasons why building
a plant in Southaven, a fast-growing city located just south of Memphis,
Tenn., was a good investment.
"The first thing that we look for in any project is a basic need for the
commodity that we produce, which is electricity," Freeman said. "The area
served by the transmission systems, TVA and Entergy, at this location provide
access to areas that need electricity."
The plant will use natural gas as fuel and will include the latest in
environmental and combustion control technologies, Freeman said.
Cogentrix owns all or part of 27 facilities with a capacity to generate about
7,000 megawatts in 14 states.
Southaven Mayor Greg Davis said both plants will generate about $300,000 to
the city, in lieu of taxes, and about $1 million each to the county school
system.
Davis said the plants will not employ many workers so traffic in the area
will not increase. He also pointed to the positive impact of temporary jobs
during construction.
"Then, road and bridge tax that they will be paying is substantial also,"
Davis said. "So from a financial impact we will see a great return in the
investment."
---
On the Net:
Congentrix: http://www.congentrix.com
Duke Energy: http://www.duke-energy.com

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


To whom it may concern: I need the Microsoft outlook web access icon downloaded to my computer

	thanks michael.yowman@enron.com


Sam:  Please get on my calendar for Friday.  We need to update agreements,
status, etc.  Also, we need to add a "Futures Agreement" designation to Lotus
Notes.  Please bring your latest printouts for existing agreements and
provide a copy for me.  Let's take about an hour.  Thanks.  Sara

ps  Also, if you have any questions about masters, etc., bring them along!


We should change all settlements at Socal to NGI Southern Border, Socal from
Southern California Border average.  This new index excludes KRS fixed priced
trades.  Please let the brokers know about the changes to Socal basis going
forward.  Please change basis and gd swing swaps (fp and index) in EOL.

Also,  Frank and Matt should set up basis and a gd swap (fp and index) for
southern border, PG&E.  This will be the index for PG&E Topock.  This index
will be effective for April 2001.  I will have the physical product out there
as soon as possible.

Let me know when they have been changed.

Mike


Brad

Could you cancel my PAC plan after the September contribution.

I have thought more about the leverage idea you suggested and want to talk to
you. Can I give you a call later this afternoon? What time are you going to
be in the office until? What is you home phone number. I will be at the
office late tonight working on move shit.

Chris


Anyone interested in taking part in this conference call with CERA entitled
"Power Crisis in California:  Reregulation or Redesign?  If so, let me know
and I'll register us.

Lorna
---------------------- Forwarded by Lorna Brennan/ET&S/Enron on 08/31/2000
09:52 AM ---------------------------

webmaster@cera.com on 08/30/2000 10:04:42 PM
To: Lorna.Brennan@enron.com
cc:

Subject: CERA Conference Call & Web Presentation--Scheduled for September 11,
2000 - CERA Conference Call

**********************************************************************
CERA Conference Call: Sent Wed, August 30, 2000
**********************************************************************

Title: CERA Conference Call & Web Presentation--Scheduled for September 11,
2000
Author: CERA
E-Mail Category: Conference Call
Product Line: Western Energy , North American Power ,
URL: http://www.cera.com/cfm/track/eprofile.cfm?u=5526&m=1341 ,
http://www.cera.com/cfm/track/eprofile.cfm?u=5526&m=1342 ,

Alternative URLs:
N. American Electric Power Members:
http://www.cera.com/client/nap/cc/082900_13/nap_cc_082900_13_ab.html
Western Energy Members:
http://www.cera.com/client/ce/cc/082900_13/ce_cc_082900_13_ab.html
*********************************************************

North American Electric Power and Western Energy
Conference Call and Web Presentation

A Cambridge Energy Research Associates Conference Call & Web Presentation

TOPIC
POWER CRISIS IN CALIFORNIA: REREGULATION OR REDESIGN?
* Tracing the Problem: Structural Flaws and Strong Fundamentals
* Possible Paths for California
* Lessons Learned and Implications for Other Markets

FORMAT
At the time listed below, our speakers will address this topic for
approximately 30 minutes, with accompanying graphics presented on the
internet, followed by an open question and answer period.

SPEAKERS
Larry Makovich, CERA Senior Director of Research , North American Electric
Power

Mike Zenker, CERA Director, Western Energy

Joe Sannicandro, CERA Director, North American Electric Power

Peter Moritzburke, CERA Associate, Western Energy

TIME
4:00 P.M. Eastern / 1:00 P.M. Pacific
Monday, September 11, 2000

ELIGIBILITY
Clients eligible to participate in this conference call are those who
subscribe to the North American Electric Power Retainer Advisory Service or
the Western Energy Advisory Service.

TO ENROLL
To enroll, please contact Ms. Kari Paakaula via fax at (617) 497-0423, or
enroll via e-mail at kpaakaula@cera.com before 4:00 P.M., Friday, September
8, 2000. Please be sure to include your name, company, and telephone number
with your correspondence.

AUDIO & INTERNET
For the AUDIO portion of the call, please call in on one of the following
numbers approximately 10-15 minutes before the call:

Within the United States: 1-800-967-7184
Outside the United States: (719) 457-2633
Confirmation Code: 627732
Title of the call: CERA Call

For the INTERNET portion of the call (audio is by telephone), log on to the
internet approximately 15-30 minutes before the presentation to ensure
technological compatibility.

1. Point your browser to http://vcast.premconf.com. (Do not include WWW in
the URL)

2. At the VisionCast Home Page, click on "Attend a Private Conference."

3. Follow all directions given regarding additional technology required (if
any).

4. You will be prompted for an Event Name, your name, and your company name.
Event Name: vc627732

5. Fill in all fields and click "Continue."

System Requirements and Suggestions:

* Internet connection not reliant on the phone line you will use for the call.

* A Java-enabled browser, such as Microsoft Internet Explorer 3.02 or higher;
Netscape Navigator 3.02 or higher; or Sun Hot JAVA(tm)

* Close all desktop applications and disable your screen saver

TECHNICAL ASSISTANCE
U.S. callers: If you are experiencing difficulties during the call, you may
signal for technical assistance by pressing *0 (star, zero) on your telephone
keypad after you have connected to the audio portion of the conference.
International callers: Please re-dial and ask the operator for assistance
before giving the confirmation code.

A recording of this call (audio only) will be available until October 11,
2000. To access this recording, please call 1-888-203-1112 (within the U.S.)
or (719) 457-0820 (outside the U.S.). Please use confirmation number 627732
to access the call.

For more information, please contact Ms. Kari Paakaula via e-mail at
kpaakaula@cera.com or via telephone at (617) 441-1362.

**end**

Follow URL for HTML version of this message only.

*********************************************************
CERA's Autumn 2000 Roundtable event dates and agendas are
now available at http://www.cera.com/event
*********************************************************

**********************************************************************
Account Changes
To edit your personal account information, including your e-mail
address, etc. go to: http://eprofile.cera.com/cfm/edit/account.cfm

This electronic message and attachments, if any, contain information
from Cambridge Energy Research Associates, Inc. (CERA) which is
confidential and may be privileged. Unauthorized disclosure, copying,
distribution or use of the contents of this message or any attachments,
in whole or in part, is strictly prohibited.

Terms of Use: http://www.cera.com/tos.html
Questions/Comments: webmaster@cera.com
Copyright 2000. Cambridge Energy Research Associates


Start Date: 2/1/02; HourAhead hour: 12;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002020112.txt


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/19/2001
11:36 AM ---------------------------

Zimin Lu
03/19/2001 11:17 AM
To: Stinson Gibner/HOU/ECT@ECT, Bob Lee/NA/Enron@Enron, Rabi De/NA/Enron@ENRON
cc:  (bcc: Vince J Kaminski/HOU/ECT)
Subject: Monte Carlo talk for option class

Here is my MC talk, electronic version.


----- Forwarded by Jeff Dasovich/NA/Enron on 02/01/2001 06:38 PM -----

	Scott Govenar <sgovenar@govadv.com>
	02/01/2001 02:40 PM

		 To: Jim Steffes <james.d.steffes@enron.com>, Rick Shapiro
<rshapiro@enron.com>, Jeff Dasovich <jdasovic@enron.com>, Mike Day
<MDay@GMSSR.com>, Paul Kaufman <paul.kaufman@enron.com>, Sandra McCubbin
<Sandra.McCubbin@enron.com>, Susan J Mara <smara@enron.com>,
"Harry.Kingerski@enron.com" <Harry.Kingerski@enron.com>
		 cc:
		 Subject: Status of efforts to fix Direct Access ban in ABX -1

    We are now engaged with a large coalition of customer groups
committed to passing language in a Bowen bill (a spot bill SBX - 27 has
been introduced for this purpose by Bowen) to fix the language in ABX -1
which permits a ban on new direct access agreements.  We have committed
to Bowen to get her staff a first attempt at draft language by close of
business tomorrow.  The attachment to this email is a draft which has
been discussed by the customers group coalition.  We would like to have
input on this language by 11 am PST tomorrow if at all possible.  Please
email responses to Mike Day at mday@gmssr.com or calling 415-279-0702.

The aim of the bill is to provide specific direction to the DWR and CPUC
so that they cannot use their discretion to make customer choice more
difficult.  In addition to the language in the draft attachment, several
other issues were discussed on the call.  Please comment on these as
well if you can.

1. In sub para. (c) it was felt we should carefully define the stranded
costs DWR might face so they have to show actual damage from a customer
leaving.  CMA proposed defining these "actual costs" as "the costs that
DWR cannot reasonably avoid until one or more of its long term power
contracts expire."   Thus, if the load electing direct access fits
within the DWR short term purchases, there are no stranded costs and no
exit fee.

2. Should there a limitation on the number of times a customer can
switch into and out of the bundled service portfolio?  CMA and other
customers were willing to live with a limit of one switch a year.

3.  Should customers be required to give DWR notice of their desire to
return or the expiration of their direct access deal?  There was some
willingness to do this, balanced against a desire to not be too specific
or to do DWR's work for them.

4.  The large customers were very uncomfortable with having the
definition between small customers who could switch without restriction
and large customers who could not be 500 Kw.  That is the number the
core/noncore advocates are pushing as a dividing line.  The group would
prefer that the limit be 100 Kw, which is the limitation adopted in AB
265, the  SDG&E rate cap bill from the end of last session.  Thus the
100 kW figure has a legislative connection, but still allows a fair
number of commercial customers to have unlimited flexibility to switch.

This is detailed and prescriptive language, but the customer group
parties were strongly convinced that any effort to craft regulations at
the CPUC would be much worse, leading to the desire to limit the CPUC's
discretion with specific language.  At this stage, after hearing that
CPUC Comm. Wood hoped to use ABX -1 to end direct access ( a comment
made to NEV or Greenmountain), we tend to agree.  We will get a better
negotiated result at the legislature than at the CPUC.

Thanks in advance for your fast turnaround on this.  Mike Day

 - subscription.protocols.doc


Make sure you take care of Dave...


---------------------- Forwarded by Kimberly Bates/HOU/ECT on 04/23/2001
04:22 PM ---------------------------
From: Amanda Huble/ENRON@enronXgate on 04/20/2001 10:03 AM
To: Airam Arteaga/ENRON@enronXgate, Kimberly Bates/HOU/ECT@ECT, Daniel
Quezada/Corp/Enron@Enron, Ina Rangel/HOU/ECT@ECT, Becky Young/NA/Enron@Enron,
Kimberly Hardy/Corp/Enron@ENRON, Jessica Presas/Corp/Enron@ENRON, Laura
Vuittonet/ENRON@enronXgate
cc:
Subject: Please forward this to your groups.

PIRA is coming in May to do their semi-annual energy outlook.

Greg Shuttlesworth- North American Natural Gas --- May 14th 3-5 pm (30 C1)
? New Production Outlook
? Price Direction
? Demand Fundamentals

Dr. Gary Ross - World Oil Outlook --- May 16th 7-8:30 am --32C2
? OIl/ Demand/ supply Outlook
? Regional balances
? OPEC Rhetoric

Jen Fraser
34759


In our discussions regarding the Purchaser's remedies in the event of Seller
default, we discussed the need for language providing for a refund of
progress payments made paid in addition to cover damages if the equipment is
not delivered or the Purchaser elects not to take it.  Attached is the
language used for the East Coast Power Linden 6 turbine contract.  While the
attached language does not all conform to the current template, this may be
useful.


Here is a copy of the economists letter the Independent Institute released on
health care.  It is about 330 words long.

http://independent.org/tii/news/OpenLetterHealthCare0002.html

Here is my first draft of a letter to economists for power price caps.  It is
275 words long, so we have some room.

The tricky thing here is the interplay between retail and wholesale price
regulation that is not present in other price control situations.  In other
words, the public utility nature of retail prices complicates things a bit,
so our letter will have to be careful about not losing support from
economists who wonder if this is really about a natural monopoly
situation--at retail at least.

Maybe instead of price decontrol at retail we can just call for a move toward
real-time pricing.

Comments appreciated.

- Rob

Thank you for your assistance.

Best regards,

David

>Let's just continue to use the $30k.
>
>Can you e:mail me the letter on health care so I can play off it a bit with
>my draft on energy price controls?
>
>- Rob
>
>Robert L. Bradley Jr.
>Director, Public Policy Analysis
>Enron Corp.
>P.O Box 1188, Room 4736D
>[1400 Smith Street 77002]
>Houston, Texas 77251-1188
>
>(P) 713-853-3062
>(F) 713-646-4702
>
>Assistant: Joan Stransky 713-853-7431
>jstrans@enron.com
>
>
>
>                     David Theroux
>                     <DTheroux@indepe        To:     Rob.Bradley@enron.com
>                     ndent.org>              cc:
>                                             Subject:     Re: Economist
Letter
>                     06/29/2001 07:19
>                     PM
>
>
>
>
>
>
>Dear Rob,
>
>Thanks for your note.
>
>At 5 cents per page, we would start out by using 60,000 pages for the
>mailing to economists (3 sheets per addressee).  When you add the
>copying of responses, re-mailing, email photocopies copies, and much
>more, it adds up pretty fast.
>
>However, if you wish, we could allocate the funding in other ways,
>such as for the costs of personalized word-processed letters to the
>economists on our in-house and rented lists.
>
>I look forward to speaking with you and your colleagues on Monday.
>
>Thanks again.
>
>Best regards,
>
>David
>
>>At 5 cents per page this would be 120,000 pages.  We have $15,000 for
>labor
>>help on this so I assume this is only machine cost.  When we talk about
>>budget on Monday we can discuss this.
>>
>>- Rob
>>
>>
>>
>>
>>
>>                      David Theroux
>>                      <DTheroux@indepe        To:     Rob.Bradley@enron.com
>>                      ndent.org>              cc:
>>                                              Subject:     Re: Economist
>Letter
>>                      06/27/2001 11:26
>>                      AM
>>
>>
>>
>>
>>
>>
>>Dear Rob,
>>
>>The photocopying figure is for the thousands of letters and forms to
>>be copied for the mailing as well as the records of those who agree
>>as signatories.  It is important that we keep an accurate record of
>>each and every piece of communications, especially for the
>>signatories.  In many cases, we have found that we will have resend
>>the letters because of bad addresses and from requests of other
>>economists who hear about the Open Letter.
>>
>>Hence, the photocopying figure is a mixture which will continue
>>throughout the project.
>>
>>As for the sponsorship, my suggestion is really two-fold:
>>1.  The funding come from a non-industry entity not identifiable with
>>Enron so that the project not even have the suggestion of
>>impropriety.  As with all of our supporters, we would also not
>>identify the funder with the project, but if asked, we could state
>>that no industry support was involved.
>>2.  The Open Letter have listed as co-sponsors various non-energy
>>industry related groups, including possible consumer, labor,
>>academic, environmental, health, business and other groups.  The goal
>>here is to reinforce the fact that the case against price controls is
>>one that is supported by a wide range of people who indeed would
>>suffer enormously from such harmful policies.
>>
>>I would be delighted to discuss these and other matters in a
>>conference call on Friday morning or Monday afternoon.  Please just
>>let me know what might work for you.
>>
>>Best regards,
>>
>>David
>>
>>>David:
>>>
>>>I want to make sure I can defend the budget and had a question.  The
>>>photocopying expense really jumps out.  What does this entail, and could
>>we
>>>reduce it by using the equipment at our SF office.  How many pages are
>>>involved in the $6,000 figure?
>>>
>>>You make a good point on making the sponsorship as broad as possible,
>>which
>>>would also help us attract money for the media part (which I thought was
>>>part of the $30,000).  We should try to get up a conference call with
>some
>>>of us from here and you to discuss this further.  Are you free early
>>Friday
>>>afternoon or Monday?
>>>
>>>
>>>- Rob
>>>
>>>
>>>
>>>
>>>
>>>                       David Theroux
>>>                       <DTheroux@indepe        To:
>Rob.Bradley@enron.com
>>>                       ndent.org>              cc:
>>>                                               Subject:     Re: Economist
>>Letter
>>>                       06/27/2001 12:30
>>>                       AM
>>>
>>>
>>>
>>>
>>>
>>>
>>>Dear Rob,
>>>
>>>As promised, here is the breakdown of the budget to assemble the Open
>>>Letter with signatories:
>>>
>>>BUDGET:
>>>Assembling snail mail lists of economists          3,000
>>>Assembling email list of economists           2,000
>>>Materials                     500
>>>Photocopying                  6,000
>>>Postage                       7,000
>>>Mailing costs                 600
>>>Telephone                     400
>>>Secretarial                   4,000
>>>Administrative                6,000
>>>Misc.                         500
>>>TOTAL                         30,000
>>>
>>>Media promotional and advertising costs would be additional depending
>>>upon what media were selected for targeting.  In the past, we have
>>>released the resulting Open Letter through a major media
>>>release/blitz. A press conference could be used in doing so, with ads
>>>to follow where considered appropriate. Advertising for past Open
>>>Letters has ranged from major newspapers to more targeted political
>>>and opinion publications.
>>>
>>>Also, with our most recent Open Letter on health-care price controls,
>>>we assembled a group of ten other organizations as co-sponsors to
>>>broaden the credibility and impact of the Open Letter, and to engage
>>>the support of the leadership and membership of such groups.  As a
>>>result, thought should be made as to what diverse groups might be
>>>sympathetic.  In addition, the possibility of enlisting the
>>>assistance of various industry groups (energy, etc.) who, although
>>>not necessarily listed as co-sponsors, would enable the Open Letter
>>>to reach a significant number of people through their own internal
>>>communications systems in order to bolster public support for the
>>>Letter.
>>>
>>>We also suggest that the source of the funding be one not
>>>identifiable with Enron.
>>>
>>>Please advise me with any questions.
>>>
>>>Best regards,
>>>
>>>David
>>>
>>>David J. Theroux
>>>Founder and President
>>>The Independent Institute
>>>100 Swan Way
>>>Oakland, CA 94621-1428
>>>510-632-1366 Phone
>>>510-568-6040 Fax
>>>DTheroux@independent.org
>>>http://www.independent.org
>>>
>>>>Dear David:
>>>>
>>>>We are interested in proceeding with the open letter project but first
>>>need
>>>>to get in writing the parameters of the project and cost estimates for
>>the
>>>>administrative part of the project and the publicity buy.  The latter
>>part
>>>>would seem to be more of a discretionary cost.
>>>>
>>>>The two folks that will be working on this from our side are myself and
>>>>Jeff Dasovich (415-782-7822).
>>>>
>>>>Look forward to hearing from someone on your staff.
>>>>
>>>>Thanks,
>>>>
>>>>- Rob
>>>>
>>>>Robert L. Bradley Jr.
>>>>Director, Public Policy Analysis
>>>>Enron Corp.
>>>>P.O Box 1188, Room 4741c
>>>>[1400 Smith Street 77002]
>>>>Houston, Texas 77251-1188
>>>>
>>>>(P) 713-853-3062
>>>>(F) 713-646-4702
>>>>
>>>>Assistant: Joan Stransky 713-853-7431
>>>>jstrans@enron.com
>>>>----- Forwarded by Rob Bradley/Corp/Enron on 06/11/2001 06:46 PM -----
>>>>
>>>>                        Richard
>>>>                        Shapiro              To:     Rob
>>>Bradley/Corp/Enron@ENRON
>>>>                                             cc:     Jeff
>>>>Dasovich/NA/Enron@Enron, James D
>>>>                        06/11/2001           Steffes/NA/Enron@Enron
>>>>                        05:55 PM             Subject:     Re: Economist
>>>>Letter(Document link:
>>>>                                             Rob Bradley)
>>>>
>>>>
>>>>
>>>>
>>>>Let er rip- we'll pay.
>>>>
>>>>
>>>>
>>>>Rob Bradley
>>>>06/11/2001 11:49 AM
>>>>
>>>>To:   Jeff Dasovich/NA/Enron@Enron
>>>>cc:   Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron
>>>>
>>>>Subject:  Re: Economist Letter  (Document link: Richard Shapiro)
>>>>
>>>>If this is a go, I would get in touch right now with the Independent
>>>>Institute--they will find David Theroux and get the information you
>need.
>>>>Would Enron pay for all of this, or can we quickly mobilize others to
>>help
>>>>pay for it?
>>>>
>>>>- Rob
>>>>
>>>>
>>>>
>>>>
>>>>                        Jeff Dasovich
>>>>                        Sent by: Jeff        To:     Richard
>>>>Shapiro/NA/Enron@Enron
>>>>                        Dasovich             cc:     James D
>>>>Steffes/NA/Enron@ENRON, Rob
>>>>                                             Bradley/Corp/Enron@ENRON
>>>>                                             Subject:     Re: Economist
>>>>Letter(Document link:
>>>>                        06/10/2001           Rob Bradley)
>>>>                        11:36 AM
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>The foundation can do it, but the contact is on vacation (or at least
>out
>>>>of town) for the next week or two.  Idea is to get it done as soon as he
>>>>gets back.  Rob may have more info.
>>>>
>>>>I've also contacted Teece at LECG/UC Berkeley and am going to follow up
>>>>with him.
>>>>
>>>>Best,
>>>>Jeff
>>>>
>>>>
>>>>
>>>>                        Richard
>>>>                        Shapiro              To:     Rob
>Bradley/Corp/Enron
>>>>                                             cc:     Jeff
>>>>Dasovich/NA/Enron@Enron, James D
>>>>                        06/08/2001           Steffes/NA/Enron@Enron
>>>>                        10:05 AM             Subject:     Re: Economist
>>>>Letter(Document link:
>>>>                                             Jeff Dasovich)
>>>>
>>>>
>>>>
>>>>
>>>>Are we making any progress on this yet?
>>>>
>>>>
>>>>
>>>>Rob Bradley
>>>>06/01/2001 10:31 AM
>>>>
>>>>To:   Jeff Dasovich/NA/Enron@Enron
>>>>cc:   Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron
>>>>
>>>>Subject:  Re: Economist Letter
>>>>
>>>>Here is some information on an option for us to have this Oakland-based
>>>>free market think tank do an open letter against price caps on
>>electricity
>>>>signed by a bevy of economists.  Probably should have done something
>like
>>>>this already but might still be worth doing.
>>>>
>>>>I have a query in to David to get a breakdown of the $30,000 for print
>>>>media buys and such and have not heard back, but I wanted to get this
>>>>information to you anyway.
>>>>
>>>>- Rob
>>>>
>>>>----- Forwarded by Rob Bradley/Corp/Enron on 05/31/2001 09:29 AM -----
>>>>
>>>>                        David Theroux
>>>>                        <DTheroux@indepe        To:
>>Rob.Bradley@enron.com
>>>>                        ndent.org>              cc:
>>>>                                                Subject:     Re:
>Economist
>>>Letter
>>>>                        05/30/2001 08:17
>>>>                        PM
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>Dear Rob,
>>>>
>>>>Thank you for your note.
>>>>
>>>>Here incidentally is a link to the page on our web site regarding our
>>>>Open Letter last year critiquing price controls on health care.
>>>>(This was the third such Open Letter we have done.)
>>>>http://independent.org/tii/Research/GuideHealthCareIssues.html
>>>>
>>>>The last time we did this it cost us about $30,000.
>>>>
>>>>If we could line up the funding, we could proceed.
>>>>
>>>>Please advise me with questions.
>>>>
>>>>Best regards,
>>>>
>>>>David
>>>>
>>>>David J. Theroux
>>>>Founder and President
>>>>The Independent Institute
>>>>100 Swan Way
>>>>Oakland, CA 94621-1428
>>>>510-632-1366 Phone
>>>>510-568-6040 Fax
>>>>DTheroux@independent.org
>>>>http://www.independent.org
>>>>
>>>>>There might be some interest around here to help fund an anti-price cap
>>>>>letter or survey from members of the American Economics Association on
>>>>>price caps and what to do about the California power crisis.  I believe
>>>>you
>>>>>have done this sort of thing before on some other economics issues.
>>>>>
>>>>>Do you want to price this out and test the waters to see if some others
>>>>>want to join in an effort?
>>>>>
>>>>>- Rob
>>>>>
>>>>>Robert L. Bradley Jr.
>>>>>Director, Public Policy Analysis
>>>>>Enron Corp.
>>>>>P.O Box 1188, Room 4741c
>>>>>[1400 Smith Street 77002]
>>>>>Houston, Texas 77251-1188
>>>>>
>>>>>(P) 713-853-3062
>>>>>(F) 713-646-4702
>>>>>
>>>>>Assistant: Joan Stransky 713-853-7431
>>>>>jstrans@enron.com
>>
>>--
>>David J. Theroux
>>Founder and President
>>The Independent Institute
>>100 Swan Way
>>Oakland, CA 94621-1428
>>510-632-1366 Phone
>>510-568-6040 Fax
>>DTheroux@independent.org
>>http://www.independent.org
>
>--
>David J. Theroux
>Founder and President
>The Independent Institute
>100 Swan Way
>Oakland, CA 94621-1428
>510-632-1366 Phone
>510-568-6040 Fax
>DTheroux@independent.org
>http://www.independent.org


looks like outkast has been cancelled tonight


---------------------- Forwarded by Chris Germany/HOU/ECT on 04/23/2001 12:08
PM ---------------------------

Kimberly Bates
04/23/2001 11:42 AM
To: Jennifer Martinez/HOU/ECT@ECT, Linda Roberts/NA/Enron@Enron, Gary
Bryan/HOU/ECT@ECT, Jill T Zivley/HOU/ECT@ECT, Edie Leschber/HOU/ECT, John
Craig Taylor/HOU/ECT@ECT, Maureen Smith/HOU/ECT@ECT, Robin Barbe/HOU/ECT@ECT,
Tammi DePaolis/Corp/Enron@ENRON, Gil Muhl/Corp/Enron@ENRON, David
Jones/NA/Enron@ENRON, Phil DeMoes/Corp/Enron@ENRON, Nelson
Ferries/Corp/Enron@ENRON, Ruth Concannon/HOU/ECT@ECT, John
Hodge/Corp/Enron@ENRON, Ed McMichael/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT,
Susan W Pereira/HOU/ECT@ECT, Andrea Ring/HOU/ECT@ECT, Dan Junek/HOU/ECT@ECT,
Jared Kaiser/HOU/ECT@ECT, John Hodge/Corp/Enron@ENRON, Chris
Germany/HOU/ECT@ECT, Judy Townsend/HOU/ECT@ECT, Scott
Goodell/Corp/Enron@ENRON, Victoria Versen/HOU/ECT@ECT, Sandra F
Brawner/HOU/ECT@ECT, Peter F Keavey/HOU/ECT@ECT, Brad McKay/HOU/ECT@ECT,
Vladi Pimenov/NA/Enron@Enron, Scott Hendrickson/HOU/ECT@ECT, Victor
Lamadrid/HOU/ECT@ECT, Clarissa Garcia/HOU/ECT@ECT, Sabra L
Dinari/HOU/ECT@ECT, Scott Loving/NA/Enron@ENRON, Tamara
Carter/NA/Enron@ENRON, Kelly Loocke/ENRON@enronXgate, Chris
Ordway/NA/Enron@Enron, Tracy Wood/NA/Enron@ENRON, Robert Allwein/HOU/ECT@ECT,
Meredith Homco/HOU/ECT@ECT, Cynthia Franklin/Corp/Enron@ENRON, Alvin
Thompson/Corp/Enron@Enron, Lia Halstead/NA/Enron@ENRON, Shanna
Boudreaux/ENRON@enronXgate, Tricia Spence/HOU/ECT, Joe A Casas/HOU/ECT@ECT,
Joann Collins/Corp/Enron@ENRON, Christina Sanchez/Corp/Enron@ENRON, Steve
Gillespie/Corp/Enron@ENRON
cc:
Subject: Jared's Happy Hour

Help us wish Jared well!!!!

Wednesday, April 25

at
Sambuca

910 Travis

4:30 p.m. - until

Please RSVP


Dad,

Apparently Duke Energy injected 50 Million of cash into Canadian 88. Greg
Novall has been replaced as President and CEO.

Chris


In this Violation memo, you are taking out positive P&L associated to a nat
gas posion in the LPG books which is a true hedge versus some long dated
propane positions.  When you add back the hedge P&L I believe there is no
violation.

Jeff

 -----Original Message-----
From:  Abel, Chris
Sent: Wednesday, June 20, 2001 4:25 PM
To: Buy, Rick; Nowlan Jr., John L.; Murphy, Ted; Port, David; Schultz,
Cassandra; Shankman, Jeffrey A.; Whalley, Greg
Cc: Apollo, Beth; Wilson, Shona; Thibodeaux, Kenneth; Price, Brent A.; Hall,
D. Todd; Burns, Jennifer; Romero, Araceli; Taylor, Liz; Wallace, Cassi
Subject: Final 6/19/01 Global Products Notification

Attached is the Enron Global Markets Global Products Trading notification
memo for  5 Day Cumulative Loss for June 19, 2001.  The Office of the
Chairman for Enron Global Markets is responsible for printing out a hard copy
of this memo, signing it and returning the hard copy to Chris Abel at 3155a,
who will forward it to RAC to obtain their signature.

Thank You

 << File: 6-19 Global Products 5 Day.doc >>


Per the meeting today, we're going to schedule with the following counterparties & no one else.

CENTRAL MAINE
VEPCO
NSTAR
LEM
SELECT
CP&L
MINNESOTA POWER
WISCONSIN ELECTRIC POWER
TAUNTON

...and potentially TXU--Smith, Jeff & Corry will work on this counterparty.

Please contact me if you have any questions.

Jeff
X35642


Could you please set up the computer training room so I can log on and
display a spreadsheet on the screen. We are having a meeting at 3:30.

Thank you

Chris


Maureen/Steve,

Please follow the link below for step-by-step procedures on installing the
Cisco IPTV client. If you have any questions please feel free to call me.

Regards,

David
NT Operations

 - Cisco IPTV Installation Instructions
---------------------- Forwarded by David Blankenship/HOU/EES on 02/18/2000
10:14 AM ---------------------------

Michael Slayton
02/18/2000 10:13 AM
To: Bob Hillier/HOU/ECT@ECT
cc: Arshak Sarkissian/HOU/ECT@ECT, Maureen McVicker/HOU/EES@EES, David
Blankenship/HOU/EES@EES
Subject: Re: IP TV viewer

Bob - the WinInstall is available for all EES users. I will have David follow
up with these users.

David - please send Steve & Maureen an e-mail with details of how they can
install IPTV.

Thanks,

Michael

To: Arshak Sarkissian/HOU/ECT@ECT
cc: Michael Slayton/HOU/EES@EES, Maureen McVicker/HOU/EES@EES
Subject: Re: IP TV viewer

Arshak, It appears the Steve and Maureen log into the EES domain.  I have
cc'd Michael Slayton who would be able to assist them with getting the IPTV
client on their computer.  I called Maureen and left her a voice mail in this
regard.

Michael call Chris Bowling if you need any assistance with this.

bbh

Arshak Sarkissian
02/17/2000 04:47 PM
To: Bob Hillier/HOU/ECT@ect
cc:
Subject: IP TV viewer

---------------------- Forwarded by Arshak Sarkissian/HOU/ECT on 02/17/2000
04:03 PM ---------------------------

Maureen McVicker@EES
02/17/2000 03:23 PM
To: Arshak Sarkissian/HOU/ECT@ECT
cc:
Subject: IP TV viewer

Steve Kean and I do not have the IP TV viewer.

Thanks.


---------------------- Forwarded by Tana Jones/HOU/ECT on 09/07/99 08:21 AM
---------------------------

Awais Omar
09/06/99 02:29 AM
To: Tana Jones/HOU/ECT@ECT
cc:
Subject: Re: EnronOnline Market Descriptions

Tana,

the descriptions were written by the commercial groups themselves on the
whole.  So There should not be any consern fromt he business.  What I was
going to do is give the final descriptions after Legal and Regulatory
amendments to them again for final OK.

Awais

	Enron Capital & Trade Resources Corp.

	From:  Tana Jones                           03/09/99 21:59

To: Awais Omar/LON/ECT@ECT
cc:
Subject: Re: EnronOnline Market Descriptions

Awais

Your email captured the concern of our lawyers concerning business review of
these descriptions.  They are being forwarded to our business people now for
review, but I don't expect that we will have them ready until Tuesday (Monday
being a federal holiday here).  I don't know what problems this is going to
cause, but our lawyers feel it is very important that we get this business
input on these descriptions.   Jeff Hodge left a voicemail with David Forster
to this effect.


Can you please send revised confirm to me this evening also? I will forward
to Barry for review first thing in the morning.

Thanks.


Attached is a newly revised Credit Watch listing.  If there
are any personnel in your group that were not included in this distribution,
please insure that they receive a copy of this report.

To add additional people to this distribution, or if this report has been
sent to you in error, please contact Veronica Espinoza at x6-6002.

For other questions, please contact Bill Bradford at x3-3831, Russell Diamond
at 5-7095, Brant Reves at x3-9897, Veronica Espinoza at x6-6002 or the Global
Credit Hotline at x3-1803.


A sitting federal judge has not only endorsed the bid
concept embodied by Provere.com, he has awarded 'Lead
Counsel' status using competitive bidding. The case
involved was a securities fraud class action, styled
In re Quintus Securities Litigation.  The bidding was
conducted by Judge Vaughn Walker, U.S. District, Northern
District of California (San Francisco).

You can now use Provere's patent pending technology to post
cases (when you need to refer a case) and to bid (or post
proposals) for legal work from businesses and consumers
looking for qualified attorneys.

Visit us at:
http://www.provere.com

Sincerely,
Mark Brewer
CEO, Provere, Inc.

P.S.  We received your contact information from the
Texas Bar Association hope that you visit our Booth
at the Texas State Bar Convention next week.

P.P.S.  Use of Provere's service is subject to the terms
and conditions of the use agreement which you can read at
www.provere.com.  Provere does not provide legal advice or
any form of legal service.  Provere serves the public
interest by providing a bid-based marketplace for lawyers
and people who need lawyers--nothing more, nothing less.

------------------------------------------------------------
We Respect Your Privacy, and Pledge not to Abuse This Privilege.
To Stop Future Mailings, Click the Link Below to be Removed Instantly.
http://www.provere.com/index.cfm?sa=4&stid=3&scid=5&p=&pt=remove&email=mhaedic
%40ect%2Eenron%2Ecom


FYI

Vince

 -----Original Message-----
From: 	Thode, Eric
Sent:	Wednesday, August 15, 2001 9:18 AM
To:	Kaminski, Vince J
Subject:	Research Employees We Haven't Heard From

Vince --

These are the Research employees I still have as outstanding in the system.  Are these all correct?

Rakesh Bharati		Chuanli Deng
Shane Green		Paulo Issler
Martin Lin		Praveen Mellacheruvu
Kevin Moore		Leann Walton
Sevil Yaman		Roman Zadorozhny

This is the information they need to access the system or if they are too busy, they can call or e-mail with their pledge amount and I will handle it for them.  They will then receive a confirmatory e-mail, so they can check it for accuracy.

Click on https://hrglobal.enron.com to make a contribution or learn more about this year's campaign. You will need your GIS ID (which is your "9" number, not your "P" number) and password.  If you have never accessed the HR global system, then your password is your birthdate (format: YYYYMMDD).

If you are not sure what your ID and password are, please go to https://ehronline.enron.com, click the "Accept" button, and then click on "Forgot your User ID or Password?"  If you have questions regarding access, please call the HRGIM help desk at ext. 3-5666.

Thanks.

Eric


We have no way to input a storage deal for Cilco.  The way that the contract
is set up, does not fit into the systems as they are.

D

   Aimee Lannou                02/04/2000 09:31 AM

To: Daren J Farmer/HOU/ECT@ECT
cc: George Grant, Pat Clynes/Corp/Enron@ENRON, Robert E Lloyd/HOU/ECT@ECT
Subject: Cilco Storage Withdrawal

Daren - Can you set up a deal for the Cilco withdrawal for Dec. 99 going
forward?  I know a deal has never been set up for this but volume management
wants a deal set up so they won't have to set up an accounting arrangement
evey month.  Please let me know, I'd appreciate it.

Thanks.

Aimee


hi.  how's things.  my cars getting fixed as we speak!  it'll be ready next
tues/wed.  I'm very excited about going to the dome this weekend and looking
forward to seeing you guys.  can you please bring annie with you?

one small request:  i'm pretty frazzled with work, school, etc. and am
looking forward to relaxing and hanging out with you guys.  it would be great
to talk about anything other than 1) the electricity crisis and 2) george w.
bush.  i figure we can talk for hours about how to get the railing done on
the deck!

best,
jeff


Katina the following deals have been auto scheduled 425790.02 & 397802.02, the other deals are option premium changes you should be able to load the deal create a notification and redraft.  Please let me know if you have any problems.

Thanks
Thresa

 -----Original Message-----
From: 	Dahlke, Andrea
Sent:	Monday, November 19, 2001 2:33 PM
To:	Allen, Thresa A.; Smith, Katina
Cc:	Dean, Clint
Subject:	LCRA modification

Clint and I revised all of the LCRA capacity pymts this afternoon, which affected the following deals:

275298	Jan-00			modified option premium
288187		Feb-00			modified option premium
300368	Mar-00			modified option premium
316345		Apr-00			modified option premium
331019		May-00			modified option premium
347153		Jun-00			modified option premium
425790	Dec-00 through Feb-01 modified annuity strips
397802	Mar-01 through Dec-02 modified annuity strips

What steps need to be taken now to make sure these changes get pushed through to your systems?  Does everything prior to the current month need to be auto-scheduled or is it only annuities (not option premiums)?

Thanks!

Andrea


Sorry, didn't mean to forget you.
---------------------- Forwarded by Kay Mann/Corp/Enron on 10/03/2000 02:10
PM ---------------------------

	Enron North America Corp.

	From:  Kay Mann                           10/03/2000 09:13 AM

To: Chris Booth/NA/Enron@Enron, Ben Jacoby/HOU/ECT@ECT, Lisa
Bills/Corp/Enron@ENRON, Roseann Engeldorf/Corp/Enron@ENRON, Scott
Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt
cc:

Subject: Revised Change Order

Here's the latest revision inserting the drawing numbers.  Is it ready to go
to GE?

Scott, payment for change orders is addressed in the contract.


I will need an LCD projector and a computer (or connections for my computer)
so that I can show the presentation.  Thanks.

"Heidi VanGenderen" <hvg@carbon.cudenver.edu> on 04/24/2001 04:16:43 PM
Please respond to <hvg@carbon.cudenver.edu>
To: <hvg@carbon.cudenver.edu>
cc:

Subject: Two Requests re: May 22-23 Forum

Greetings:

Thank you for joining us for the May 22-23, 2001 Forum on Securing the
Energy Future of the Western United States here in Denver.  If you require
any audio visual aids for your presentations (overhead projector, LCD,
etc.), please respond to this e-mail ASAP.  Please remember that you will be
asked to remain within the time limits outlined in the memo to
speakers/discussants from Marshall Kaplan and David Olsen.

We are compiling a series of articles on western state power problems and
possible options to overcome problems for distribution to  all Forum
participants.

We welcome your submission of any recent article or articles, or their
citations and/or web page references, that you have found interesting and
useful.  These might address subjects such as power challenges; alternate
policies with respect to supply and demand management; financing power
related infrastructure;  use of innovative technology with respect to energy
management and efficiency; or the convergence of power, environmental and
carbon emission reduction policies.

If you have an article or articles to submit for inclusion in the Forum
Notebook, please convey it electronically by responding to this e-mail, or
fax or mail it as noted in the signature concluding this message by no later
than May 4th.

If you are intending to write out your remarks to the Forum, we would also
welcome receiving those in advance of the Forum for inclusion in the
materials provided to participants.

Please feel free to contact us with any questions or comments.

Thanks for your attention to these requests.  We look forward to seeing you
at the Forum on May 22nd.

Sincerely,

Heidi VanGenderen, Senior Associate
Wirth Chair in Environmental and
Community Development Policy
Institute for Policy Research and Implementation
University of Colorado-Denver
1445 Market Street, Suite 350
Denver, CO  80202-1727
Tel - 303-820-5676
Fax - 303-534-8774

Marshall Kaplan
Tel - 303-820-5605