If you recall there was a physical term supply transaction done at Thompsonville with EEX during the time you were trying to get the letter of intent with AEP done.  I thought that there were some unique financing issues that required Enron to retain the transaction.  It appears that is not the case and since this supply is at a split connect location with HPL it should probably go with the sale.  I just want to make sure that the swap is done correctly to keep Enron whole.  Any thoughts?

Tom

---------------------- Forwarded by Thomas A Martin/HOU/ECT on 03/26/2001 05:30 PM ---------------------------
From:	Joan Quick/ENRON@enronXgate on 03/26/2001 12:26 PM
To:	Thomas A Martin/HOU/ECT@ECT
cc:
Subject:	FW: EEX EFP

 -----Original Message-----
From: 	Quick, Joan
Sent:	Monday, March 26, 2001 1:24 PM
To:	Baumbach, David; Boyt, Eric
Cc:	Lagrasta, Fred; Martin, Bob; Pruett, Steve; Ballard, Phillip; Otis, Brian
Subject:	EEX EFP

The EEX deal is a pre-pay deal.  It is not a VPP deal.  It is a financial deal only, between an Enron company called Bob West Treasury and EEX.  It is a financial deal only - no physical vols.

In a completely separate financial hedge, EEX had hedged some gas vols with Fred Lagrasta [ENA].  Last December, EEX called wanting to EFP some of these vols.  This is completely between Fred/ENA and EEX.  It has nothing to do with our pre-pay.

David/Tom, I would say the decision if this deal stays with you or goes to AEP is up to Fred.  I just spoke with Fred and he said that they did just one EFP with EEX - some south Texas [Thompsonville] vols.  He is uncertain as to the term, but off the top of his head, he thought it was for 2 or 3 years.  He said it didn't matter to him if we kept this EFP or if it went to AEP, as long as we were paid - it is way in the money.  This EFP should be in Tom's book and if it is decided to go to AEP, then this needs to be reflected in the final purchase price to AEP, since it is in the money.  BOTTOM LINE:  it doesn't matter to Fred, as long as we are paid for this.

If you have any questions re this EFP, please discuss with Fred.
Joan

 -----Original Message-----
From: 	Baumbach, David
Sent:	Monday, March 26, 2001 9:47 AM
To:	Boyt, Eric
Cc:	Joan Quick/HOU/ECT@ENRON
Subject:	Re: EEX

Just to confirm ... the gas we are recieving at various fixed prices on deal N60753.3 is going to AEP.  This should constitute the EFP's, I believe.  Does either of you have any of the original minibooks for the VPP?

Dave

 Enron Capital Management

From:  David Baumbach @ ECT                           03/26/2001 08:33 AM

To:	Joan Quick/HOU/ECT, Eric Boyt/Corp/Enron@Enron
cc:

Subject:	EEX

Are we going to restructure the EEX deal?  If not, I need to go ahead and add these volumes to the schedule going to AEP.

Dave


Hi Louise,

just thought you should know...

we've kept the mixed Estate/NetCo Application Development teams bound together for these migration efforts and its just remarkable how hard these people are working. Most of the DBA team, headed by Mable Tang(Oracle) and Charles Brewer(SQL Server) have been putting in very long hours and last night most didn't go home! (really). The LiveLink team were here untill the small hours too.

The Infrastructure Server people in particular (Charles Ballmer and Michael Barber) and their team members have worked very hard over the last week, getting ready.

They are all set to pull off the NetCo migration during the latter part of next week and through the weekend, and everyone seems to be very confident that we'll pull it off.

I'd like to make special mention of one young lady called Jane Henry (just a Specialist!) who has more front than Sainsbury's (can't explain that to an American!), who has been acting as anchor and project co-ordinator for all the activities and working long nights. She manages to keep control of all those strong personalities and kept us all on track. I'd be very gratefull if you could find time to drop her a quick line.... she'd be impressed at the recognition....

regards

Steve

-----Original Message-----
Subject: RE: Saturday Update

I'd like to thank everyone involved in the efforts since Friday night! I know a number of you stayed through the night to get us in good shape for this morning. Well done especially to those people. Great teamwork.

Its outstanding how much effort everyone has put into this, and I look forward to seeing the completion of the testing tomorrow.

See you there!

best regards

Steve

-----Original Message-----
From: Henry, Jane Hilburn
Sent: Sat 1/12/2002 3:23 PM
To: Stock, Steve; Johnson, Jeff; Schomer, Chris; Smith, Regan M.; Ballmer, Charles; Larkin, Brian; Newland, William; Patel, Piyush; Ward, Bob; Brewer, Charles; Tang, Mable; Charbonnet, Clement; Matson, Randy; Nat, Steve; Nommensen, Dave; Merrell, Brad; Ogden, Arlene; Chitradurga, Sundar; Jia, Winston; Luu, Duong; Poston, David; Powell, John D.; Ramesh, Ganapathy; Rao, Ramesh; Warner, John; Wei, Zhiyong; Dolan, Michael; Barber, Michael; Gubser, Marlin; Dziadek, Keith; Sanborn, Brandee; Sanvido, Terry; Constantine, Chris; Pua, Cornelio; Wang, N. Jessie; Simpson, Stephen; Hall, Rich; Cheng, John; Shishido, Scott; Saleem, Aftab; Krishnaswamy, Jayant; Brennan, Ryan; Pullicino, Marcus; Schmidt, Mark; Renaud, Todd; McNair, Darren; Qavi, Faheem; Deleon, Roberto; Beyer, Troy; James, Matthew; Martinez, Bob; Yanowski, Tommy J.; Conley, Tom; Cinelli, Steve; McKeel, Richard; Harmon, Kenneth M.; Stevens, Wilford; Smith, Bruce; Fortney, Bill; Wong, Jeremy; Lim, Francis S.; Yang, Sean; Dronet, David; Bharathi, Jaikishore; Ray, Edward
Cc:
Subject: Saturday Update

We have completed the Estate migration.  There are a few outstanding issues with EnPower that Dave Poston's team will resolve, but I have been told that they are minor.

We will still have the 4:00 PM today and 12:00 PM tomorrow checkpoints on the Bridgeline for informational purposes.

Please feel free to call my cell with any additional concerns: 713-515-1601.

-Jane


You are my hero.

Kay


Chris, Tricia is back on Monday and will investigate and get back to you then....

 -----Original Message-----
From: 	Dorland, Chris
Sent:	Thursday, January 03, 2002 12:52 PM
To:	Doucet, Dawn; Henry, Patricia
Subject:	Option Income on Pay Stub

Just wondering if you guys had looked into the mystery option exercise income that is showing up on my pay stub?

Chris


Have fun with these!


Stan,

In October we had a plan to purchase 0.5 Bcf of gas that was projected to bring our operational storage level to 12 Bcf by the end of the month and were concerned about over-filling our storage fields from potential long gas by shippers.  In reality, prices have risen and shippers have shorted the system by 1.7 Bcf month-to-date.  Our original plan, based on a combination of physical requirements and regulatory strategy was as follows:

Ending October Balance		12 Bcf
Ending November Balance		13 Bcf
Ending December Balance		14 Bcf

To acheive this plan we are projecting a purchase in November of at least 2.5 Bcf (depending upon shipper short gas over the remainder of the month).  We also expect to receive 0.3 Bcf of SBA imbalance payback in November that should raise the operational storage levels to approximately 13 Bcf.  We are still at risk for over-filling our storage fields in November and do not wish to buy any volumes that might push us over the 13 Bcf operational storage level.  Therefore, we are targeting the purchase of 2.5 Bcf of gas (which may be adjusted based on the customer's imbalances over the next week) for November.

Kent


Hello,

My father is Agustin Jaramillo.  He works for Enron at Logan airport.  He
wants to know how you go about making a stock withdrawal.  He is vested in
13 shares.  His Grant ID# is 130566.  Any information that you could
provide me would be great.  If I can be of any assistance, please feel free
to call me at 617-760-2764.

Thanks,
Alberto


Jason,
After our brief discussion last night I think I should discuss a few of the
issues I have with respect to calculating a VaR on the deal that you are
proposing.  The VaR model, as I illustrated, is set up to accept a term
structure of delta positions, prices and vols and it may be difficult to
translate the 'silver mine' position into these inputs.
I do not think that we can simply take the net silver content of the mine and
then make some assumptions about vol and price. The VaR model
also assumes a certain amount of liquidity in the market and a 1 day holding
period.
To do this properly I would need to understand fully how the deal is priced
as these sensitivities are ultimately what will effect the change in MTM
in the future and that is essentially what VaR is supposed to predict.
If you need me to work on this then you need to contact Steve who will help
to prioritise my time. I will also need to consult with Vince Kaminski and
Tanya Tamarachenko in Houston for advice.
RAC will also assist in the process.
Please contact me if you have any further questions,
Kirstee
x34529


-----Original Message-----
From: 	Oxley, David
Sent:	Friday, August 24, 2001 6:06 PM
To:	Lavorato, John
Subject:	RE: New Building

Bastard!
 -----Original Message-----
From: 	Lavorato, John
Sent:	Friday, August 24, 2001 6:05 PM
To:	Oxley, David
Subject:	RE: New Building

Your Corp now man.  Sorry.

 -----Original Message-----
From: 	Oxley, David
Sent:	Friday, August 24, 2001 5:26 PM
To:	Lavorato, John
Subject:	New Building

I want to sit with Wes and Haedicke. We can move Robert to another floor if need be. Do you have a problem with this?


I have asked Weezie to handle.
 Alan Aronowitz


Jim and Carrin,

It was nice to visit with you this afternoon.  I look forward to working
with you in the coming months.

While I am away, please feel free to contact Martin.  He can be reached
at Mcominsky@aol.com or 713-627-3490, ext. 122.

Jeff Sokoloff
________________________________________________________________
GET INTERNET ACCESS FROM JUNO!
Juno offers FREE or PREMIUM Internet access for less!
Join Juno today!  For your FREE software, visit:
http://dl.www.juno.com/get/tagj.


> To Market Participants:
>
> The California ISO is initiating a study to increase the rating of Path 26
> (Midway-Vincent 500 kV lines) from its current rating of 3,000 MW
> (bi-directional).  The path rating increase is being initiated in response
> to concerns over the amount of congestion that has historically been
> experienced on Path 26.
>
> A stakeholder group is being formed to provide input into the studies. In
> addition, a draft Study Plan is attached here for your comments.  Due to
> the expedited nature of the study, please provide your interest in
> participating on the study group and/or comments on the study plan to
> David Le (dle@caiso.com) by March 16, 2001.
>
  <<study plan v3.doc>>

> David Le
> Cal-ISO Grid Planning
> Email:  dle@caiso.com
> Phone: (916)608-5880
>

 - study plan v3.doc


I just wanted to clarify the purpose and file location of the "Progress Summaries". These speadsheets are located at O:\CurveValidation\Estate Reporting\Gas. There are a total of four tracking summaries, one for each region (East, West, Texas, Canada/Central). Please update these documents as you validate each of the natural gas curves.

Thanks again for all of your help.

Regards,
Michael Barone and Tim Bowler
PricewaterhouseCoopers


----- Forwarded by Sarah Novosel/Corp/Enron on 04/20/2001 04:03 PM -----

	"Palansky, IJay" <IPalansky@wilmer.com>
	04/20/2001 03:49 PM

		 To: "'Sarah.Novosel@enron.com'" <Sarah.Novosel@enron.com>
		 cc:
		 Subject: Enron v. FERC:  Petitioner's Brief

Sarah:?
?
As  requested, attached is a copy of Enron's brief in pdf  format.
 - Brief of Enron.pdf


FYI

Subpoena Letter from Senator Dunn which was discussed in staff meeting.

----- Forwarded by Cristina Zavala/SF/ECT on 07/12/2001 05:19 PM -----

	Susan J Mara@ENRON
	07/12/2001 03:58 PM

		 To: Cristina Zavala/SF/ECT@ECT
		 cc:
		 Subject: Kean Letter to send out to the office

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


Sally

Thank you for taking the time to see me when I was in Houston, and for lunch.

I am working on a detailed comprehensive plan of action to enact the changes
we discussed re the settlement and confirmations procedures transfer. Due to
the volume of work that was on my desk upon my return this is not coming
together quite as quickly as I would like and therefore we are going to have
to look at it piece by piece.

We need to issue a new authorised signatory list this week for Enron
Australia Energy and Enron Australia Finance Pty Ltd due to changes in the
dealer structure and therefore we have decided that this would be a good
opportunity to make the change to the approval of confirmations.

As agreed, we will have Sydney office take over responsibility for signing
all confirmations. This means they are still prepared in Sydney, as they are
now, with the change of procedure being that they will now be signed in
Sydney and faxed from here to our clients. The primary signatories will be
the Managing Director (Paul Quilkey) or the Chief Financial Officer (Heidi
Mason). In the event of both being unavailable they will be signed by the
Senior Legal Counsel (David Minns).

The confirmation log will be maintained in its entirety by Sydney Office and
will be held in a directory accessible by Houston. This will allow
independent audit review to occur as required.

In order to implement this change we have prepared a new authorised
signatories list which we are planning to distribute at the end of this week.
In the meantime could you please advise of what action needs to be taken in
Houston to ensure all the relevant areas are advised. Clearly a  key
individual will be Sue Frusco. When I met with Sue in Houston we discussed
briefly the fact that you and I had agreed that invoicing and confirmations
would move to Sydney but at that stage there was no timing raised. Sue seemed
happy to stay with the current arrangements until such time as we implemented
a change. Do you want me to advise Sue or will someone from Houston speak to
her?

Thanks

Heidi


Greetings:
Here is a quick summary:

Loretta Lynch is having a press conference right now in which she has
outlined the 4 decisions that will come before the commission tomorrow.  We
are listening in and trying to get our hands on the materials.  When we get
them we will send them out.
The four items are:
1) Order the IOU's to pay the QF's going forward starting April 1, 2001
a. Treatment of payments would modify 390
i. Shift the index from Topck (because it has been gammed) it will be moved
to Malin (which is lower)
ii. Heat rate/ O&M may be addressed through workshops
iii. Withdrawing for long term fixed price proposal
b. Legislation solution has broken down and this is why they must act
c. Wood's proposed decision due out today (He indicates most QF's do not
need to withhold- and it is difficult to tell.  This withholding by the QF's
resulted in the recent blackouts
2) Instruct the IOU's to pay CDWR for all past due amounts in which they
have purchased for the IOU's net short position based on a formula by amount
of energy purchased * specified dollar amount (it is unclear what this is)
3) As a result of increasing power prices Lynch proposes to increase
residential and commercial rates by 3 cents per KWh.  This will not be voted
upon tomorrow and this proposal will "jump start the process"
a. This will not affect all the CARE customers and anyone who uses under
130% of baseline. If you use under 200% of baseline the increase is only 9%.
b. Authorization to collect more $ will begin on March 27th.  Authorization
to receive more money for power purchases and once they receive the data
from CDWR than they will determine which part of that will be allocated to
the state.
4) Investigation into the IOU's holding companies and that data from them
needs to become available to the commission with in 10 days.
She blamed FERC for sleeping on the job and said if these (any # of them)
investigations into unjust and unreasonable rates result in a favorable
outcome for the state than there will be a refund.

"FERC needs to see the light"

Katie Kaplan
Manager of State Policy Affairs
Independent Energy Producers Association
(916) 448-9499


My understanding is we have these payrolls covered.

David
 -----Original Message-----
From: 	Taylor, Diane
Sent:	Wednesday, November 28, 2001 12:38 PM
To:	Kitchen, Louise; Oxley, David
Subject:	Gross and Net Payrolls

Please see the attached reports detailing the gross and net payrolls for 11/29 (weekly/biweekly) and the 11/30 (semi) paydays.  I have also included the breakout by tax company for the Gross Amounts.   This first version has the tax company numbers as I wanted to get it to you as soon as possible.  We are in the process of including the names and will send you an updated file.

Please let me know if you need additional information.

Thanks,
Diane


Sounds good.

 -----Original Message-----
From: 	Schoolcraft, Darrell
Sent:	Friday, March 15, 2002 11:14 AM
To:	Ratner, Michael
Subject:	RE: TW Retained Gas

It will be sometime on Tuesday.  Just call.

ds

 -----Original Message-----
From: 	Ratner, Michael
Sent:	Friday, March 15, 2002 10:37 AM
To:	Schoolcraft, Darrell
Subject:	RE: TW Retained Gas

Please let me know when you will have some time next week.

Thanks,

Michael

 -----Original Message-----
From: 	Schoolcraft, Darrell
Sent:	Thursday, March 07, 2002 3:43 PM
To:	Ratner, Michael
Subject:	RE: TW Retained Gas

yes

ds

 -----Original Message-----
From: 	Ratner, Michael
Sent:	Thursday, March 07, 2002 3:41 PM
To:	Schoolcraft, Darrell
Subject:	RE: TW Retained Gas

Will you be in the rest of the week?

 -----Original Appointment-----
From: 	Schoolcraft, Darrell
Sent:	Thursday, March 07, 2002 3:40 PM
To:	Ratner, Michael
Subject:	Declined: TW Retained Gas
When:	Tuesday, March 12, 2002 2:00 PM-3:00 PM (GMT-06:00) Central Time (US & Canada).
Where:	EB 4053A

I will be on vacation tuesday, March 12  returning on wednesday.

ds


Errol -

Are we changing EOL deals?
---------------------- Forwarded by Jeffrey C Gossett/HOU/ECT on 01/16/2001
02:53 PM ---------------------------

Gregory Carraway@ENRON
01/16/2001 01:57 PM
To: Jeffrey C Gossett/HOU/ECT@ECT
cc:
Subject: Gas Daily deals in dispute

Forwarded per request of Kim Theriot.
---------------------- Forwarded by Gregory Carraway/Corp/Enron on 01/16/2001
12:46 PM ---------------------------

Gregory Carraway
01/16/2001 08:50 AM
To: Errol McLaughlin/Corp/Enron@ENRON
cc: Rebecca Ford/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT

Subject: Gas Daily deals in dispute

The following deals are being disputed by Reliant Energy Services. TAGG is
showing these deals as Gas Daily, but the counterparty states that they
should be changed to Nymex trades. They also stated that they were told by
Mike Maggi that the deals would be changed to Nymex deals:


Enron Australia Is Barred From Trading Power Futures (Update1)
Bloomberg, 11/30/01

Enron Partnership Put $50 Million in Company That Went Bankrupt
Bloomberg, 11/30/01

Royal Bank of Scotland May Buy Enron's U.K. Unit, Paper Says
Bloomberg, 11/30/01

Nord Pool Clears All Enron Trades; Sees No Losses for Exchange
Bloomberg, 11/30/01

Enron's Withdrawal From Europe Shakes a Market It Helped Create
Bloomberg, 11/30/01

Federal Prosecutors Want to Monitor SEC's Enron Probe, WSJ Says
Bloomberg, 11/30/01

Enron's Exit in Europe Shakes a Market It Helped Form (Update1)
Bloomberg, 11/30/01

Enron's Overseas Investments, Assets Remain in Doubt, NYT Says
Bloomberg, 11/30/01

Dynegy Is Under Pressure After Failed Enron Buyout, NYT Says
Bloomberg, 11/30/01

Dynegy Says Pipeline Option Not Dependent on Enron (Update1)
Bloomberg, 11/30/01

Enron May Cost Insurers Over $3 Billion, Analysts Say (Update1)
Bloomberg, 11/30/01

UK Power Trade Panel In Talks About Enron's Obligations
Dow Jones International News, 11/30/01

Enron Can Still Trade On APX, Not Denied Grid Access
Dow Jones Energy Service, 11/30/01

Enron Fails To Deliver Gas To German Utilities - Ruhrgas
Dow Jones Energy Service, 11/30/01

Enron Energy Traders Describe A Workplace In Limbo Thu
Dow Jones Energy Service, 11/30/01

Enron Suspended From Spot, Futures Trading On EEX
Dow Jones International News, 11/30/01

Enron Japan Unit To Decide On Projects By Year End- Kyodo
Dow Jones International News, 11/30/01

US Senate Energy Panel Plans Hearing On Enron Collapse
Dow Jones International News, 11/30/01

POINT OF VIEW: Stocks Put Enron In Proper Perspective
Dow Jones News Service, 11/30/01

SEC's Pitt Promises Swift Probe Into Enron
Dow Jones News Service, 11/30/01

IN THE MONEY: Enron's Derivatives Could Test Courts
Dow Jones News Service, 11/30/01

Dynegy Clarifies Its Investment in Enron's Northern Natural Gas Unit
Dow Jones Business News, 11/30/01

NORWAY: INTERVIEW-"Bitter days" for Enron Nordic unit, wants buy-out.
Reuters English News Service, 11/30/01

USA: PPL to increase credit reserve for Enron exposure.
Reuters English News Service, 11/30/01

USA: UPDATE 1-Dynegy says Enron pipeline cannot file bankruptcy.
Reuters English News Service, 11/30/01

UK: UPDATE 1-Enron says 1,875MW UK Teesside station operating.
Reuters English News Service, 11/30/01

UK: UPDATE 1-Innogy may buy Enron UK assets at "right price".
Reuters English News Service, 11/30/01

GERMANY: Enron Europe delays job cut meeting to 1500 GMT.
Reuters English News Service, 11/30/01

Fitch: Dynegy Remains On Rating Watch Negative
Business Wire, 11/30/01

Enron Australia Is Barred From Trading Power Futures (Update1)
2001-11-30 01:01 (New York)

Enron Australia Is Barred From Trading Power Futures (Update1)

     (Adds reason for decision in first paragraph, background
starting in third paragraph)

     Sydney, Nov. 30 (Bloomberg) -- Enron Corp.'s Australian
finance unit was barred from trading in the nation's wholesale
electricity futures market because its funding wasn't assured, the
securities regulator said in a statement faxed to Bloomberg.

     The Australian Securities and Investments Commission today
removed Enron Australia Finance Pty from a register of facility
providers for the market.

     Enron, the largest energy trader, is expected to file for
Chapter 11 protection after the collapse of a planned merger with
Dynegy Inc. ASIC said it made its decision because Enron's credit
rating was downgraded.

     ``Enron Australia's last financial report showed that it is
economically dependent on the credit facilities provided, or
guaranteed by its U.S. parent,'' the statement said.

     Enron Australia had previously indicated to ASIC it had
ceased to enter into new derivative contracts in the market, the
statement said.

     The Australian wholesale electricity futures market brings
together generators and retailers of electricity.

Enron Partnership Put $50 Million in Company That Went Bankrupt
2001-11-30 01:02 (New York)

Enron Partnership Put $50 Million in Company That Went Bankrupt

     Houston, Nov. 30 (Bloomberg) -- Enron Corp. shares climbed 50
percent in 1999 as the energy trader reported profit increases
each quarter, and Chief Executive Kenneth Lay predicted ``another
excellent year for Enron.''

      Lay's presentation didn't include a fact that might have
been of interest to shareholders. An Enron-affiliated partnership,
Joint Energy Development Investments Limited Partnership, or JEDI,
had invested $50 million in a Texas company that went bankrupt.
Enron has written off the loss.

     JEDI was among more than 30 partnerships Enron used to hedge
risks and move assets and liabilities off its books. Losses by
some partnerships led to Enron's downfall after the company
reported inflating profits by $586 million over five years. Enron
is on the brink of the largest bankruptcy in history after rival
Dynegy Inc. abandoned a takeover.

     ``Enron was hiding things and tried to deceive,'' said Rob
Plaza, a Morningstar Inc. analyst who owns no shares. ``There is
no way the stock would have reached these levels if they had
disclosed more.''

     Legal and accounting experts said Enron should have described
JEDI's investment in Costilla Energy Inc., an oil and natural-gas
exploration company, in U.S. Securities and Exchange Commission
filings. That's because the man who represented Jedi in the
investment, Tim Detmering, is a managing director of Enron and
became a member of Costilla's board.

                          Related Parties

     ``It was a related-party transaction,'' said Howard Schilit,
president of the Center for Financial Research and Analysis, a
group that mines financial statements for accounting red flags.
``A footnote should have mentioned that.''

     Enron spokesman Eric Thode said the company chose not to
identify the Costilla investment or report Detmering's role in SEC
filings. He said Enron grouped the investment's loss with other
results. Detmering didn't return phone requests for an interview.

     JEDI gave Costilla $50 million in return for Costilla shares
in late 1998, according to a lawsuit Costilla's bankruptcy trustee
filed against Enron on Sept. 5 in Zapata County, Texas.

     Sherry Chandler, a lawyer representing the trustee, said
JEDI, Detmering and other Enron executives pledged to invest $100
million from the partnership in Costilla to help finance
Costilla's planned $410 million purchase of oil and natural-gas
properties owned by Pioneer Natural Resources Inc.

     An Enron affiliate, Enron Oil & Gas Co., operated the Pioneer
properties, the suit says. In September 1998, Costilla paid
Pioneer $25 million toward the purchase, which it forfeited when
Enron and JEDI didn't invest additional money to close the
transaction, the suit says. Costilla then faced a cash crunch and
filed for bankruptcy protection.

                        `Financial Spiral'

     Costilla trustees blame Enron and JEDI for a ``financial
spiral that led to collapse,'' according to the lawsuit.

     Louis Dreyfus Natural Gas Corp., based in Oklahoma City,
bought Costilla's oil and gas properties in June 2000 for about
$130 million.

     Enron reduced shareholders' equity by $1.2 billion during the
third quarter because of partnership losses. The company is
responsible for $3.9 billion in partnership debts and faces a mid-
December deadline for paying an additional $690 million in
partnership debts.

Royal Bank of Scotland May Buy Enron's U.K. Unit, Paper Says
2001-11-30 04:40 (New York)

     Edinburgh, Nov. 30 (Bloomberg) -- Royal Bank of Scotland
Group Plc, the U.K.'s third-largest bank, may bid for Enron
Corp.'s Wessex Water unit if the Houston-based energy trader
facing bankruptcy is forced to sell, the Scotsman reported, citing
an unidentified company official.

     Other possible bidders for Wessex include Barclays Bank Plc,
Westdeutsche Landesbank Girozentrale, Candover Investments Plc and
Scottish & Southern Energy Plc, the paper said, citing analysts.

     Royal Bank of Scotland provided loans to Glas Cymru, the not-
for-profit company that acquired Welsh Water last year. The bank
was involved in the water industry and ``it would not be wrong to
say we would be looking at Wessex,'' the unidentified official
told the newspaper.

     Enron paid 1.4 billion pounds ($2 billion) for Wessex Water
in 1998 and has to reduce debt by 6.3 billion pounds by the end of
2002. Wessex supplies water to 1.2 million people in southwest
England and sewage services to about 2.4 million people, the paper
said.

(The Scotsman 11-30 B1)

(For the Scotsman's Web site see {SCTS <GO>}

Nord Pool Clears All Enron Trades; Sees No Losses for Exchange
2001-11-30 05:01 (New York)

Nord Pool Clears All Enron Trades; Sees No Losses for Exchange

     Lysaker, Norway, Nov. 30 (Bloomberg) -- Nord Pool ASA,
Europe's first and largest electricity exchange, has closed and
cleared all outstanding trades by Enron Corp., the U.S. energy
trader facing bankruptcy.

     ``This has been managed without losses for Nord Pool,'' the
exchange said in a statement on its Web site.

     Nord Pool suspended Enron from trading and clearing at 1:50
p.m. local time yesterday because the company failed to ``post the
margins required.'' The U.K. Power Exchange and the Automated
Power Exchange also excluded Enron yesterday.

     European Energy Exchange AG, Germany's largest electricity
exchange, said yesterday that Enron was still trading. A spokesman
wasn't immediately available for comment today.

Enron's Withdrawal From Europe Shakes a Market It Helped Create
2001-11-30 05:43 (New York)

Enron's Withdrawal From Europe Shakes a Market It Helped Create

     Berlin, Nov. 30 (Bloomberg) -- Enron Corp.'s collapse means
Europe's energy market, which the company helped create, will
become a riskier place.

     With Enron facing bankruptcy at home and suspended from the
biggest energy exchanges in Europe, utilities are struggling to
fill the gap and complete transactions with the U.S. company.
Prices in the U.K., Scandinavia and Germany surged and dropped as
traders rushed to buy power and tried to sell it again.

     ``Enron was a real ice-breaker in Europe,'' said Ralf
Schaefer, a spokesman for RWE AG, the continent's fourth-largest
electricity company. ``It has been incredibly important for
European trading and for the market in general.''

     The U.S. trader pounced on Europe in 1990, before most of the
region's energy markets opened to competition, building a power
station in northern England. Until this week it held a fifth of
Europe's $100 billion-a-year electricity-trading market. Customers
include Sainsbury's Plc, a U.K. supermarket chain.

     ``I've been running around all day -- traders are very
busy,'' said Paul Taylor, head of electricity trading at TXU Corp.
in Europe, the largest power trader in the U.K. ``We've suddenly
got a lot of positions to sort out.''

     Enron employs 6,800 people in Europe. Job losses in the
region are inevitable, said Tony Lomas, one of the four
administrators at PricewaterhouseCoopers, the auditing firm
appointed to wind down or sell the Houston-based company's
European business.

     Enron owns power stations capable of lighting 4.4 million
homes in Italy, Poland, Spain, Turkey and the U.K. It supplies
electricity-producing windmills in Germany and Sweden, and owns a
water utility in the U.K. It brought the first weather derivatives
contract to Europe in 1998.

     For the average consumer, Enron's downfall may be
imperceptible. Yet Enron's trading expertise was the envy of
European utilities such as RWE, Electrabel SA and Enel SpA, which
rushed to hire traders and associated staff. E.ON AG, Europe's No.
2 utility, in March opened a new trading floor in Munich.

                         Twice Rivals' Size

     The U.S. company traded about 300 billion kilowatt hours of
electricity in Europe last year. E.ON, which said its aim was to
overtake Enron as the region's largest electricity trader, traded
130 billion kilowatt hours in 2000.

     ``A lot of players have geared their activities toward Enron,
and may have something to lose if Enron falls,'' said Arnhild
Stoevik, an analyst at Europower AS, an Oslo-based energy research
company.

     Enron's suspension from Nord Pool ASA, Europe's first and
largest power exchange, and from the U.K. Power Exchange yesterday
led to increased price swings and higher-than-usual volume in the
region. Day-ahead prices for off-peak electricity
rose as high as 27 pounds ($38.5) a megawatt-hour before slumping
to close at 15 pounds.

     Powernext SA, France's fledgling power exchange, said trading
suffered a ``cold spell'' yesterday. Powernext executed its first
trades on Monday, and had expected Enron to join the exchange in
coming weeks.

     Most European utilities said their individual exposure to
Enron was less than $50 million. Centrica Plc, the U.K.'s dominant
natural-gas supplier, said it may have to write off $43 million.
RWE said it has open positions worth ``much less'' than 10 million
euros with the U.S. company.

     ``We're not going to see a single European electricity
company going down,'' said Vincent Gilles, an analyst at UBS
Warburg in London. ``But without the liquidity, companies may find
it hard to make money out of trading.''

     Europe's banks are also feeling the pinch. Abbey National Plc
said it's owed 115 million pounds ($164 million) by Enron, while
ABN Amro Holding NV, the largest Dutch bank, may set aside 110
million euros ($97.5 million) to cover its exposure.

                         Sensing Opportunity

     Rivals see a chance to grab the customers Enron may have to
leave behind -- like UPM-Kymmene Oyj, which said it may seek
another company to help manage its risk on electricity prices.
Europe's No. 2 paper company contracted Enron for those services
last December.

     ``The way I see it, there's one less competitor and still the
same number of customers,'' said Brian Count, chief executive of
Innogy Holdings Plc, the U.K.'s largest electricity supplier.
Enron supplies power to about 150,000 British businesses through
its Enron Direct unit.

     There is also ``very serious interest'' in Enron's metals-
trading business in Europe, PricewaterhouseCoopers's Lomas said.
Possible buyers include HSBC Holdings Plc, Glencore International
AG and the current management of the company, analysts said.
Officials there couldn't be reached to comment.

     The loss of Enron may be felt most in Germany, home to RWE
and E.ON, where the U.S. company controlled as much as 40 percent
of electricity trading. It had lobbied for fair access for foreign
companies starting out in Europe's largest energy market.

     Enron won a landmark case in 1999 on the right to distribute
power over the Germany's grid. Its complaints this year spurred
German authorities to probe four utilities for charging too much
to let rivals transport power across their grids.

     German households and businesses ``may be less willing to
switch suppliers if they have fears of companies going out of
business,'' said Ulf Boege, head of Germany's antitrust authority,
at a press conference in Bonn yesterday.

Federal Prosecutors Want to Monitor SEC's Enron Probe, WSJ Says
2001-11-30 07:40 (New York)

     Washington, Nov. 30 (Bloomberg) -- Federal prosecutors in
Texas and New York told the Securities and Exchange Commission
they want to monitor the SEC investigation into Enron Corp.'s
accounting practices as a possible precursor to a criminal case,
the Wall Street Journal said, citing an unidentified source.

     If a criminal investigation began, it would most likely take
place in the Houston office, though New York could assert
jurisdiction since the company is traded on the New York Stock
Exchange, the Journal reported.

     Prosecutors haven't started their own investigations out of
concerns a criminal probe would cause potential witnesses ``to
clam up,'' the unidentified source told the Journal.

     Enron is poised to file the largest bankruptcy reorganization
in history. The company is saddled with more than $15 billion in
debt and had less than $2 billion in cash as of last week.

(Wall Street Journal 11/30 A8)
For the Wall Street Journal Web site, type {WWSJ <GO>}.

Enron's Exit in Europe Shakes a Market It Helped Form (Update1)
2001-11-30 08:04 (New York)

Enron's Exit in Europe Shakes a Market It Helped Form (Update1)

     (Adds detail on electricity trading in seventh paragraph.)

     Berlin, Nov. 30 (Bloomberg) -- Enron Corp.'s collapse means
Europe's energy-trading market, which the company helped create,
will become a riskier place.

     With Enron facing bankruptcy and suspended from energy
exchanges in Europe, utilities are struggling to fill the gap and
wind up business with the U.S. company. Until this week it held a
fifth of Europe's $100 billion-a-year electricity-trading market.

     ``Enron was a real ice-breaker in Europe,'' said Ralf
Schaefer, a spokesman for RWE AG, the continent's fourth-largest
electricity company. ``It has been incredibly important for
European trading and for the market in general.''

     The U.S. trader pounced on Europe in 1990, before most of the
region's energy markets opened to competition. Prices in the U.K.,
Scandinavia and Germany surged and then dropped Thursday as
traders, predicting a supply shortage, rushed to buy electricity,
found they had too much, and tried to sell it again.

     ``I've been running around all day -- traders are very
busy,'' said Paul Taylor, head of electricity trading at TXU Corp.
in Europe, the largest power trader in the U.K. ``We've suddenly
got a lot of positions to sort out.''

     Enron employs 6,800 people in Europe. Job losses in the
region are inevitable, said Tony Lomas, one of the four
administrators at PricewaterhouseCoopers, the auditing firm
appointed to wind down or sell the Houston-based company's
European business.

                       Envy of Rivals

     For household consumers, Enron's downfall may be
imperceptible. Enron's customers were mostly businesses and other
utilities, which will now turn to Enron rivals for supplies.
European utilities have more generation capacity than they trade,
preventing shortages.

     Still, Enron's trading expertise was the envy of European
utilities such as RWE, Electrabel SA and Enel SpA, which rushed to
hire traders and associated staff. E.ON AG, Europe's No. 2
utility, in March opened a new trading floor in Munich.

     The U.S. company traded about 300 billion kilowatt hours of
electricity in Europe last year. E.ON, which said its aim was to
overtake Enron as the region's largest electricity trader, traded
130 billion kilowatt hours in 2000.

     ``A lot of players have geared their activities toward Enron,
and may have something to lose if Enron falls,'' said Arnhild
Stoevik, an analyst at Europower AS, an Oslo-based energy research
company.

                         `Cold Spell'

     Enron's suspension from Nord Pool ASA, Europe's largest power
exchange, and from the U.K. Power Exchange yesterday led to
increased price swings and higher-than-usual volume. Day-ahead
prices for off-peak electricity rose as high as 27 pounds ($38.50)
a megawatt-hour before slumping to close at 15 pounds.

     Powernext SA, France's fledgling power exchange, said trading
suffered a ``cold spell'' yesterday. Powernext executed its first
trades on Monday, and had expected Enron to join the exchange in
coming weeks.

     Enron owns power stations capable of lighting 4.4 million
homes in Italy, Poland, Spain, Turkey and the U.K. It supplies
electricity-producing windmills in Germany and Sweden, and owns a
water utility in the U.K. It brought the first weather derivatives
contract to Europe in 1998.

     Most European utilities said their individual exposure to
Enron was less than $50 million. Centrica Plc, the U.K.'s dominant
natural-gas supplier, said it may have to write off $43 million.
RWE said it has open positions worth ``much less'' than 10 million
euros ($8.9 million) with the U.S. company.

                     Sensing Opportunity

     ``We're not going to see a single European electricity
company going down,'' said Vincent Gilles, an analyst at UBS
Warburg in London. ``But without the liquidity, companies may find
it hard to make money out of trading.''

     Europe's banks are also feeling the pinch. Abbey National Plc
said it's owed 115 million pounds by Enron, while ABN Amro Holding
NV, the largest Dutch bank, may set aside 110 million euros to
cover its exposure. Credit Lyonnais SA of France has $250 million
in loans to Enron, half of which are unsecured.

     Rivals see a chance to grab the customers Enron may leave
behind -- like UPM-Kymmene Oyj, which said it may seek another
company to help manage its risk on electricity prices. Europe's
No. 2 paper company contracted Enron for those services last
December.

     ``The way I see it, there's one less competitor and still the
same number of customers,'' said Brian Count, chief executive of
Innogy Holdings Plc, the U.K.'s largest electricity supplier.
Enron supplies power to about 150,000 British businesses through
its Enron Direct unit.

     There is also ``very serious interest'' in Enron's metals-
trading business in Europe, PricewaterhouseCoopers's Lomas said.
Possible buyers include HSBC Holdings Plc, Glencore International
AG and the current management of the company, analysts said.
Officials there couldn't be reached to comment.

                         German Loss

     The loss of Enron may be felt most in Germany, home to RWE
and E.ON, where the U.S. company controlled as much as 40 percent
of electricity trading. It had lobbied for fair access for foreign
companies starting out in Europe's largest energy market.

     Enron won a landmark case in 1999 on the right to distribute
power over the Germany's grid. Its complaints this year spurred
German authorities to probe four utilities for charging too much
to let rivals transport power across their grids.

     German households and businesses ``may be less willing to
switch suppliers if they have fears of companies going out of
business,'' said Ulf Boege, head of Germany's antitrust authority,
at a press conference in Bonn yesterday.

Enron's Overseas Investments, Assets Remain in Doubt, NYT Says
2001-11-30 08:11 (New York)

     Houston, Nov. 30 (Bloomberg) -- Enron Corp.'s customers and
lenders are concerned about what will become of the energy
trader's overseas assets, investments and operations, which
provided the company with about 25 percent of its revenue, the New
York Times said.

     In Brazil, the fate of its controlling stake in Elektro
Eletricidade e Servico remains unknown as Brazil's electricity
regulator backtracked from an original assertion that the power
supplier would be forfeited to the government if Enron filed for
bankruptcy, the Times said. The regulator, Aneel, acknowledged it
might not have legal grounds to seize the Elektro stake.

     Enron is in a dispute over unpaid bills and contract terms
with the Indian utility Maharashtra, a customer from its $2.9
billion Dabhol Power venture. Lenders with $1.4 billion in loans
and loan guarantees outstanding on Dabhol threatened to seize the
plant if Enron filed for bankruptcy.

     Enron Europe filed in Britain for court protection from
creditors and was placed under the control of an administrator,
PricewaterhouseCoopers, which said it was close to selling the
company's metals-trading unit, the Times said. Enron is a major
participant in European energy trading.

(NYT 11-30 C6)

For the Web site of The New York Times, see {NYTI <GO>}.

Dynegy Is Under Pressure After Failed Enron Buyout, NYT Says
2001-11-30 08:38 (New York)

     Houston, Nov. 30 (Bloomberg) -- Dynegy Inc. is having trouble
making a clean break from its buyout offer to energy trader Enron
Corp., the New York Times reported.

     Dynegy, whose bond rating is under pressure, may face a
lawsuit from Enron and questions from investors about why it
didn't scrutinize Enron's books more closely, the Times said.
Dynegy's decision to back out of the $9 billion acquisition leaves
Enron on the verge of bankruptcy.

     The Houston-based rival of Enron must now convince investors
and rating agencies that it has less in common with Enron than it
said earlier this month, the paper said. With Enron out of the
way, Dynegy may be able to expand its energy trading business.
However, some worry that Enron's collapse has revealed previously
undiscovered risks that energy trading companies may face, the
Times said.

     Dynegy's efforts to buy a natural gas pipeline that is one of
Enron's most valuable assets for $1.5 billion might not pan out
either because Enron said it will fight to keep the pipeline out
of Dynegy's hands, the Times reported.

(NYT 11-30 C7)

Dynegy Says Pipeline Option Not Dependent on Enron (Update1)
2001-11-30 09:00 (New York)

Dynegy Says Pipeline Option Not Dependent on Enron (Update1)

     (Adds chairman's comments in third and fourth paragraphs.)

     Houston, Nov. 30 (Bloomberg) -- Dynegy Inc. said it plans to
take over Enron Corp.'s Northern Natural Gas Co. pipeline unit
next month, even if Enron seeks Chapter 11 bankruptcy protection
or challenges Dynegy's decision to call off their merger.

     The Nov. 9 merger agreement gave Dynegy $1.5 billion in
preferred stock in Northern Natural Gas, as well as the right to
buy all of the common stock of the business for about $23 million.
Dynegy backed out of the $23 billion merger on Wednesday and said
it would exercise its right to take over the 16,500-mile pipeline.

     Enron has said it is reviewing options for Northern Natural
Gas, one of its most valuable assets. Enron may sue to keep Dynegy
from claiming ownership of the pipeline, a person familiar with
the situation said yesterday. Dynegy Chairman Chuck Watson said
yesterday he would rather take over the pipeline than get back the
$1.5 billion investment.

     Enron can buy the pipeline back if it pays Dynegy
$1.5 billion, plus interest, within 180 days of the merger's
collapse, Watson said. Enron has been unable to raise enough cash
to ensure it can pay its debts and is having trouble financing
daily operations.

     Enron is facing bankruptcy after credit rating agencies
lowered the company to junk status, causing customers to take
business to other energy traders. Northern Natural Gas can't take
any action, including filing for bankruptcy, without the consent
of Dynegy as a preferred stockholder, Dynegy said in a statement.

     Dynegy's right to the pipeline ``is not dependent on Enron's
agreement to our right to terminate the merger,'' Dynegy Chief
Financial Officer Rob Doty said in the statement. Dynegy said
today it plans to complete the pipeline purchase on Dec. 12.

     Shares of Enron fell 25 cents to 36 cents yesterday. They
have fallen 99 percent since mid-October. Dynegy fell $2.32, or
6.5 percent, to $33.65. Both companies are based in Houston.

Enron May Cost Insurers Over $3 Billion, Analysts Say (Update1)
2001-11-30 09:33 (New York)

Enron May Cost Insurers Over $3 Billion, Analysts Say (Update1)

     (Adds analyst comment on U.S. life insurers' exposure.)

     New York, Nov. 30 (Bloomberg) -- Ambac Financial Group Inc.,
XL Capital Ltd. and other bond and property-casualty insurers may
absorb losses of more than $2 billion overall in the event Enron
Corp. files for bankruptcy protection, according to Morgan Stanley
Dean Witter & Co. analyst Alice Schroeder.

     John Hancock Financial Services Inc., Principal Financial
Group, Lincoln National Corp. and other U.S. life insurers also
are facing another $1 billion in investment losses related to
Enron, according to Colin Devine, an analyst at Salomon Smith
Barney Inc.

     After shouldering claims of as much as $70 billion from the
Sept. 11 terrorist attacks, insurers are now confronted with
claims from financial and other insurance related to Enron, as
well as losses on investments in the energy company's securities.
Enron is poised to file the largest bankruptcy reorganization in
history after Dynegy Inc. scuttled plans to acquire the company
and its debt ratings were cut to junk status.

     ``We see at least four exposure areas,'' Morgan Stanley's
Schroeder, the top-ranked property-casualty analyst according to
Institutional Investor, wrote in a note to investors. Schroeder
didn't estimate the tally for any individual firms.

     MBIA Inc., the biggest bond insurer, and Ambac Financial
Group, the second-biggest bond insurer, said they have no direct
exposure to Enron. Ambac, however, does have $37 million of
exposure to bonds issued by an Oregon utility owned by Enron-
Portland General Electric.

                             Estimates

     XL Capital Ltd., the biggest Bermuda insurer, said it has
minimal exposure to Enron. XL Capital's Element Re division, which
specializes in the type of energy trading developed by Enron,
actually owes Enron a small amount of money related to a swap
agreement, said spokesman Roger Scotton.

     John Hancock has the biggest exposure to Enron debt among
U.S. life insurers at $320 million, according to Devine. Principal
Financial, Lincoln National and MetLife Inc. have exposures of
$172 million, $95 million and $62.6 million respectively.

     ``We do not expect Enron exposure to represent more than 1
percent of any single company's equity base with the possible
exception of Conseco,'' said Devine.

UK Power Trade Panel In Talks About Enron's Obligations

11/30/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
LONDON-(Dow Jones)- The Balancing and Settlement Code Panel for the U.K. power market is meeting Friday to discuss Enron Corp., a spokeswoman for Elexon, the balancing and settlement code manager, said.
"The panel of members from industry, customers, the National Grid, and the Office of Gas and Electricity Markets are considering the Enron issue in relation to obligations under the panel," said the spokeswoman.
The spokeswoman declined to give details about the possible outcome of the meeting.
As of 1420 GMT, no trading parties were in credit default. The Balancing and Settlement Code says, though, that any party in credit default will have a period during which trading actions are put on hold for an investigation, or will have their energy contract volume notifications refused.
-By Sarah Spikes, Dow Jones Newswires; +44-(0)20-7842-9345; sarah.spikes@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Can Still Trade On APX, Not Denied Grid Access

11/30/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
AMSTERDAM -(Dow Jones)- The Dutch Amsterdam Power Exchange Friday said it hasn't yet barred financially troubled Enron Corp. (ENE) from trading on the Amsterdam spot market.
Nanke Kramer, a spokeswoman for the spot market told Dow Jones Enron still meets all requirements to participate in trading, adding the bourse is "closely monitoring" the situation and will "act" when the company doesn't.
Enron Wednesday ceased most of its trading activity after a buyout by Dynegy Inc. (DYN) failed, and the company's credit ratings were downgraded to "junk" status.
Since then, it has been ousted from trading on the European Energy Exchange and the German high-voltage grid has been closed to Enron.
A spokesman for the Dutch national grid operator, Frits Bots of Tennet NV, said that organization has seen "no reason yet" to refuse Enron access to the grid.
The spokesman said of cross-border electricity import capacity purchased by Enron that it is "not known yet what will happen to that."
The Tennet spokesman said his organization too is "keeping a close eye on the situation."
-By A.J. Hesselink, Dow Jones Newswires, 31 20 6260770, arentjan.hesselink@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Fails To Deliver Gas To German Utilities - Ruhrgas

11/30/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
LONDON -(Dow Jones)- Distressed U.S. energy trader Enron Corp. (ENE) failed to deliver natural gas to German utilities Friday, the country's largest gas distributor Ruhrgas AG (G.RUH) said.
"Enron today failed to deliver not only to small, but to all utilities (in Germany)," a spokesman told Dow Jones Newswires.
Ruhrgas, also Europe's largest gas importer, may be faced with finding alternative ways to supply gas if customers need additional supply, he said.
"We now face the situation that some of those utilities need additional quantities. We are able and willing to use the flexibility in our long-term contracts to support them," he added.
-By Hillary Jackson, Dow Jones Newswires; (+44 20) 78429366; hillary.jackson@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Energy Traders Describe A Workplace In Limbo Thu
By Erwin Seba
Of DOW JONES NEWSWIRES

11/30/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
(This article was originally published Thursday.)

HOUSTON -(Dow Jones)- Traders employed by troubled energy giant Enron Corp. (ENE) described a workplace in limbo Thursday.
Energy traders weren't making any new deals, but they were working to assure physical delivery of products they've contracted to provide to customers.
"We're not doing any new sales; we're not doing any more business right now," an energy trader said. "We're attempting to honor all of our existing commitments on the market side now."
Financial products traders are sitting idle, clearing up paperwork and monitoring markets in case the opportunity to deal arises again.
"You can't trade those when you have the credit rating we have," a financial products trader said. "We're still working for debtholders. The equity value may be out of the company right now, but I'm still getting paid, I'm still doing my job."
Enron's credit was downgraded to junk status Wednesday, as a planned buyout by Dynegy Inc. (DYN) to rescue Enron fell apart.
As the company teetered on the brink of insolvency Thursday, traders and other employees said they were still planning a future with Enron.
"You see that building over there," an energy trader said, pointing to a nearly complete 40-story twin across the street from Enron's downtown headquarters. "I'm scheduled to move over there next week, and I'm still being told to be ready to move."
Unlike top Enron executives who continue to portray themselves as in control of the company's fate, traders said they believe Enron's future likely will lie with a bankruptcy court judge or the committee of creditors that judge will authorize.
Others were already working out their grief.
"I got drunk last night," a trader said. "You can quote me. I closed 'em down."
Over the noon hour, as Enron employees left work for lunch they passed several reporters and television cameramen. Many just held up hands or shook their heads when approached by reporters.
One gas trader from ChevronTexaco's (CVX) Houston office, on his lunch break, walked over to a small park across the street from Enron's headquarters. He came to see why all the TV cameras were there.
"Sure, I used to call them the Evil Empire," he said. "It's been a friendly competition, though. They were always willing to make a market. No one will replace them."
He looked up at Enron's headquarters, 40 stories of glass reflecting blue sky and white clouds on a cold, windy day.
"I hate to see them go," the ChevronTexaco trader said. "It's like a death in the family."
-By Erwin Seba, Dow Jones Newswires; 713-547-9214; erwin.seba@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Suspended From Spot, Futures Trading On EEX

11/30/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
FRANKFURT -(Dow Jones)- Enron Corp. (ENE) has been suspended with immediate effect from spot and futures trading on the European Energy Exchange, the EEX said Friday in a statement.
The suspension doesn't affect transactions already conpleted between Enron and other EEX trading participants or with the EEX clearing house, the EEX said.
The EEX said it has the necessary structures in place to cover "any open positions which may be held by Enron at the EEX."
The EEX said London-based Enron Capital and Trade Resources Ltd. will no longer be permitted on the spot market, while London-based Enron Europe Xchange Trading Ltd. is suspended from the futures market.
-By Rachel Graham, Dow Jones Newswires; 49-69-297-25500; rachel.graham@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Japan Unit To Decide On Projects By Year End- Kyodo

11/30/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
AOMORI, Japan -(Dow Jones)- The Japanese arm of troubled U.S. energy giant Enron Corp. (ENE) said Friday it will decide on the future development of ongoing power plant projects in Japan by the year-end, Kyod news service reported.
"We are now reviewing the projects and will make a decision by the year-end," E Power Corp. said in a statement presented to the Aomori prefectural government, Kyodo reported.
The prefecture is hosting a project to build a thermal plant powered by liquefied natural gas in the village of Rokkasho.
The statement was in response to a request by the northeastern Japan prefecture Thursday that it continue the project following reports that Enron may collapse.
Enron also plans to build coal-fueled power plants in Ube in Yamaguchi Prefecture, and Matsuyama in Ehime Prefecture, both in western Japan, and Omuta in Fukuoka Prefecture, southwestern Japan, according to the Kyodo news service.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
US Senate Energy Panel Plans Hearing On Enron Collapse

11/30/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
(This article was originally published Thursday)

WASHINGTON -(Dow Jones)- Senate Energy and Natural Resources Committee Chairman Jeff Bingaman, D-N.M., said Thursday that in response to Enron Corp.'s (ENE) financial downfall his committee will hold a hearing on natural gas and power markets.
"The consequences for energy markets of Enron's collapse are unclear, but highlight the importance of issues such as data transparency and competition in the natural gas and electricity markets," Bingaman said in a prepared statement.
The senator said his committee is "keenly aware" of the need for more oversight and market monitoring in these areas after already holding four hearing on gas and power markets this year.
While the impact of Enron's downfall on consumers isn't clear, Bingaman said his committee will continue to monitor the situation. He suggested a risk that other merchant energy companies encountering problems, noting "there are a number of well-capitalized energy firms which have significant trading operations."
But the senator said if Enron files for bankruptcy, the courts will ensure its pipelines and power plants continue to operate.
Earlier Thursday House Energy and Commerce Committee Chairman Billy Tauzin's, R-La., said he'd hold hearings on Enron in the near future and asked staff to begin immediately investigating the energy giant's financial collapse.
-By Campion Walsh, Dow Jones Newswires; 202-862-9291; Campion.Walsh@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
POINT OF VIEW: Stocks Put Enron In Proper Perspective
By Gene Colter

11/30/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
A Dow Jones Newswires Column
(This story was originally published late Thursday.)

NEW YORK -(Dow Jones)- Can a meager little upswing in stocks pack the psychological import of a big rally?
For Thursday, at least, the answer is yes, because stock prices, however gingerly, seemed to be sending the message that the fate of one major company that's likely to become the largest corporate bankruptcy ever doesn't have to spell doom for other companies or the broad stock market.
In other words, once-mighty power-trading company Enron Corp. (ENE) may be destined to fail, but most other companies are safe - and investors get it.
Credit is due. One day after Enron's debt downgrade led to the unraveling of a deal with competitor Dynegy Corp. (DYN) the market is still being bombarded with news of Enron's likely bankruptcy as well as reams of analysis about whether Enron's downfall could wreak havoc with other energy companies and creditors as well as the markets they operate in.
But investors aren't panicking. All major market indexes were slightly higher in afternoon dealings and in fact were up for most of Thursday, in contrast to the dip they took Wednesday.
Enron's almost certain demise - or substantially altered business under any bankruptcy reorganization - would harm others and wipe out whatever hope equity investors had of recouping some of the $60 billion or so they've lost on Enron's stock this year. (Bondholders and bank lenders get paid first in most bankruptcy proceedings. Stockholders rarely receive anything.) And trading outfits and banks that entered into complicated derivative deals with Enron stand to get burned. The whole affair may even end up changing the way courts and regulators deal with derivatives and the myriad off-balance-sheet items that first got Enron into trouble.
A lot of pain, to be sure, but not a meltdown the likes of which were threatened when Long Term Capital Management had to be bailed out a few years ago. The implosion of that giant hedge fund had implications for assets of all stripes, not to mention investors from individuals to foreign central banks.
The Enron story still hasn't been fully told and won't be, perhaps, until a company known for obfuscation tells it to the judge. But it seems clear that the damage will be contained, despite the hoopla.
And the early reports from major mutual-fund companies suggest that even individual investors may not suffer as much as they might. As Dow Jones Newswires' John Shipman reported, some fund managers bailed out on Enron a while ago, citing the company's lack of forthcoming. The funds they manage presumably are better off than any portfolio still holding shares of Enron.
Stocks still have plenty to worry about, like lofty price-to-equity ratios and uncertain corporate profit recovery, not to mention rising unemployment and the other economic hamstrings that are part of the recession that officially got underway in March. And should the economy continue to falter, more bankruptcies and defaults could emerge, the likes of which could indeed create broader risks.
Enron, in context, feels like a bad cold: unpleasant, but not life-threatening.

- By Gene Colter, Dow Jones Newswires; 201-938-2068; gene.colter@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
SEC's Pitt Promises Swift Probe Into Enron

11/30/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
(This report was first published late Thursday.)

By Judith Burns
Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Securities and Exchange Commission Chairman Harvey Pitt promised Thursday that his agency will conduct a swift investigation into any possible wrongdoing at Enron Corp. (ENE).
"We're looking at the entire situation to see whether laws were violated," Pitt told reporters prior to a speech to the Consumer Federation of America.
Pitt promised the consumers group that the SEC will quickly investigate the Enron matter and if it finds wrongdoing it will make responsible parties "answer to it."
"One of the things we are looking at is whether accounting principles were applied properly," Pitt said.
Pitt said he hopes the SEC will complete its investigation promptly, but added, "It would be inappropriate for me to say what the SEC will do."
Pitt told reporters after his remarks that the SEC is considering creative remedies that might give investors "some recompense" in cases similar to Enron's.
"When a company loses market value as opposed to investors being fleeced, the problem becomes much more difficult," Pitt noted. "Making investors whole is very, very hard."
After falling 85% Wednesday, Enron shares fell another 41% to 36 cents Thursday as the once high-flying energy firm appears to be headed for bankruptcy.
-By Judith Burns, Dow Jones Newswires; 202-862-6692

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
IN THE MONEY: Enron's Derivatives Could Test Courts
By Carol S. Remond and Phyllis Plitch

11/30/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
A Dow Jones Newswires Column
(This column was originally published late Thursday.)

NEW YORK -(Dow Jones)- Prepare for the largest test in bankruptcy history of safe harbors designed to protect the liquidity of the nations' financial system.
Enron Corp.'s (ENE) much-anticipated bankruptcy filing, if it indeed comes, is certain to be precedent setting. First, in terms of sheer magnitude, we're talking about $62 billion in assets. But also because it's likely to involve hundreds, if not thousands, of counterparties intertwined with Enron in various financial and energy derivative transactions.
Unlike other creditors whose claims will be stayed under U.S. bankruptcy laws, those counterparties will vie to unwind their trades, may they be "power forwards" or credit derivative contracts, in order to find more worthy hedging partners.
Built in the bankruptcy code are exemptions for securities or commodities contracts. These safe harbors were developed over the years as a sort of security blanket for the vital hedging functions that these transactions provide.
"These special rules are designed to avoid a domino effect," said a bankruptcy lawyer, who like many contacted for this column, declined to be identified given the likelihood that he'll end up representing one or many parties involved in Enron's expected Chapter 11 filing.
Counterparties claiming redress through these exemptions should be able to net out their various derivative contracts with Enron, attempting to use whatever collateral was pledged under those transactions to quantify how much money they owe to or are owed by Enron. All of that is normally done on the side, without prior bankruptcy court approval.
The problem is that Enron will likely question attempts to unwind those trades and take issue with the manner in which its counterparties netted their exposure to the company, observers say.
Given the large number of parties involved and the magnitude of Enron's recent losses, the treatment of derivative contracts could be further complicated by the market's lack of understanding of just how much value is left in Enron's assets. That's an issue that will permeate the proceedings with all of Enron's stunned creditors. On top of its derivative exposure, Enron is on the hook for roughly $13 billion in debt.
As part of its energy trading operations, Enron was a party to billions of dollars of derivative contracts designed to enable the company and its trading partners to hedge, among other things, against rapidly fluctuating energy prices and foreign exchange volatility - stabilizing otherwise uncertain markets. By its own account,as of December 2000, Enron was involved in roughly $20 billion of derivative contracts on which it owed its counterparties. More recent numbers aren't available.
Thoughts of an Enron bankruptcy jogged memories of past filings, such as the case of Drysdale Government Securities Inc., which involved public entities being left on the hook for millions of dollars in uncollateralized government repurchase agreements.
But bankruptcy laws have evolved significantly since the 1982 collapse of Drysdale sent shockwaves through the financial community and forced banks to pay out tens of millions of dollars to cover Drysdale's obligations to other government securities firms.
More recently, Orange County's 1994 bankruptcy following its derivatives debacle and the bitter dispute surrounding German's Metallgesellschaft Ag for breach of forward petroleum contracts suggests that acrimonious and lengthy litigations might be in the offing. In the latter case, many counterparties settled out of court and took "haircuts" after a judge ruled that independent petroleum marketers who entered into long-term hedging contracts as protection against escalating fuel prices could sue the metals and engineering conglomerate for breach of contract.
But the extent to which those cases provide any lessons for Enron and its derivative counterparties remains to be seen, experts said, depending on what sticky and complex issues might arise in potential court actions.
Meanwhile, although Enron has yet to file for bankruptcy, most of its derivative counterparties are likely already scrambling to exit their trades.
That's because Dynegy Inc.'s (DYN) decision Wednesday to abandon its plan to rescue Enron all but sealed the fate of the ailing Houston energy trader which has been hobbled by accounting irregularities and unquantified off-balance-sheet liabilities. Enron shares plummeted from about $90 a share last summer to 36 cents Thursday.
Derivative contracts are built around master agreements developed by the International Swaps and Derivatives Association. As far as its power purchase deals go, Enron is said to have favored master agreements drafted by the Edison Electric Institute, which draws heavily on ISDA's blueprint.
Those master agreements include certain events under which a counterparty can terminate a transaction. Among those are failure to pay, failure to deliver and, of course, bankruptcy.
Whether counterparties will be able to claim exemption from the automatic stay that prevents anyone from terminating contracts with a company that filed for bankruptcy will hinge on the type of deals they're a party to and whether they meet certain statutory requirements. Although Enron and its lawyers are likely to nitpick the unwinding of each and every contract involving the company, legal experts noted that Enron's fondness for EEI agreements should help those entangled in power purchase agreements to liquidate their positions since these contracts treat all participants as forward contracts merchants. Such merchants are exempt from the stay stipulated by section 362A of the bankruptcy code.
Key to how well or poorly counterparties will make out now that Enron's business has been all but dried out, is how much if any collateral protects their transactions.
So far, it's unclear how much of Enron's derivative transactions were collateralized. But lawyers familiar with the matter said it was likely that a large amount of those contracts were not collateralized.
That's likely to be bad news for some counterparties. Because if they're owed money by Enron on their netted derivative exposure, they'll have to join other unsecured creditors, likely receiving little of their claims. The bonds and bank debt of Enron took a nose dive after Dynegy rescinded its merger offer, with trading levels indicating that those mostly unsecured creditors thought they would recoup only 20% to 25% of the money loaned to Enron.
-By Carol S. Remond, 201-938-2074; Dow Jones Newswires; carol.remond@dowjones.com
(Phyllis Plitch contributed to this column.)

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Dynegy Clarifies Its Investment in Enron's Northern Natural Gas Unit

11/30/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -- Dynegy Inc., which terminated its planned acquisition of Enron Corp. earlier this week, said Enron subsidiary Northern Natural Gas can't take certain actions, including seeking bankruptcy-court protection, without the consent of Dynegy as a preferred stockholder.
Dynegy (DYN) and ChevronTexaco Corp. (CVX) own all the preferred stock in Northern Natural Gas and control all the voting rights for the pipeline company. Dynegy gained rights to the pipeline as collateral for a $1.5 billion cash infusion provided by ChevronTexaco, which owns about 26% of Dynegy.
Dynegy pulled out of its $9 billion all-stock merger agreement with Enron (ENE) on Wednesday after Standard & Poor's cut the beleaguered energy trading company's debt rating to single-B-minus, essentially rendering it to junk status. Both companies are based in Houston.
Enron is widely expected to file for Chapter 11 bankruptcy protection.
Dynegy acquired $1.5 billion in preferred stock in Northern Natural Gas in connection with its proposed merger with Enron. Northern Natural's 16,500-mile interstate pipeline extends from the Permian Basin of Texas to the Upper Midwest.
On Nov. 9, Dynegy acquired an option to purchase 100% of Northern Natural's equity for about $23 million. The company exercised that option on Wednesday when it terminated its merger agreement with Enron. Upon closing, slated for Dec. 12, Dynegy said about $950 million of Northern Natural Gas debt will remain in place.
"Northern Natural Gas will be an excellent addition to our asset-backed, customer-focused energy delivery network," said Dynegy Executive Vice President and Chief Financial Officer Rob Doty, in a prepared statement. "This network enables us to provide reliable supply, risk management and logistics to our customers, as we have done for the past 16 years."
Mr. Doty added that Dynegy "has contacted Enron to begin a transition of the pipeline's management and expects Enron's full cooperation."
On Thursday, Dynegy Chairman and Chief Executive Chuck Watson said he was confident Dynegy's attorneys structured the Northern Natural Gas deal so it wouldn't be affected if Enron filed for bankruptcy. Once Dynegy takes control of the pipeline, Enron will have 180 days to buy it back for $1.5 billion plus interest, Mr. Watson said in a press conference Thursday.
Dynegy said Northern Natural Gas has been a separate unit for more than 20 years and operates as a separate business, with separate Federal Energy Regulatory Commission, or FERC, tariffs, offices, management and customers.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
NORWAY: INTERVIEW-"Bitter days" for Enron Nordic unit, wants buy-out.
By Erik Brynhildsbakken

11/30/2001
Reuters English News Service
(C) Reuters Limited 2001.
OSLO, Nov 30 (Reuters) - The chief power trader at Enron Nordic Energy, a unit of U.S.-based Enron , said it was heart-breaking to see his unit being pulled down in the maelstrom of its stricken parent company and hoped to find a buyer for his trading operation.
"We hope that someone will buy the Nordic unit, and are working on several concrete alternatives in order to make that happen," Thor Lien, head trader at Enron Nordic Energy, told Reuters.
"These are bitter days," he added.
Lien said the Nordic unit had 60 employees and was likely the largest player in the Nordic power market, holding a 20-25 percent market share with an annual turnover of about 1,000 terawatt hours of electricity.
"We have done very well, but the actual figures are confidential," he said.
Enron Nordic Energy is part of U.S-based Enron and does not belong to the company's European arm which went into administration on Thursday.
Earlier on Friday the Nordic power bourse Nord Pool said it had closed all positions held by Enron Nordic Energy in its financial market.
"But we have managed to keep all our obligations, and - paradoxically - we are still in business," Lien said.
"Currently it is the market that owes us money, not the other way round."
Lien said the Nordic unit seemed cut off from the flow of information as Enron's headquarter in Houston prepared for the biggest bankruptcy protection in history.
"It is total silence," he said, adding that Enron Nordic would have to line up a buyer fast if it were to stand any chance of surviving.
"If the parent company goes bankrupt or files for Chapter 11 there would be no company within the structure that could survive," he said.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: PPL to increase credit reserve for Enron exposure.

11/30/2001
Reuters English News Service
(C) Reuters Limited 2001.
ALLENTOWN, Pa., Nov 30 (Reuters) - PPL Corp. , an electric utility with power plants in the U.S. Northeast and Montana, on Friday said it would increase the reserve for its credit exposure to Enron Corp. but was standing by its forecast for 2001 earnings of more than $4 a share.
Allentown, Pennsylvania-based PPL said it has a net exposure of less than $10 million from trading activities with Enron , the energy trading giant that appears on the brink of bankruptcy.
Additionally, if Enron does not fulfill its contractual obligations, PPL has a "mark to market" exposure that averages about $6 million annually under long-term electricity supply contracts that extend through 2006, the company said. PPL said it has discontinued sales to Enron.
On a related matter, PPL said it has a 51 percent interest in Western Power Distribution (WPD) in Britain, and WPD is a 15 percent equity investor in the 1,800-megawatt Teesside Power Station in northern England. Enron participates through its European affiliates as an owner, an operator and a power purchaser of the station.
It cannot be determined at this point what effect, if any, Enron's circumstances could have on Teesside's operational and financial performance, PPL said. WPD's investment in Teesside is some 46 million pounds, or about $66 million based on current exchange rates.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: UPDATE 1-Dynegy says Enron pipeline cannot file bankruptcy.

11/30/2001
Reuters English News Service
(C) Reuters Limited 2001.
HOUSTON, Nov 30 (Reuters) - Energy trader Dynegy Inc. on Friday warned Enron Corp. it cannot try to prevent Dynegy's plans to buy a natural gas pipeline unit of the troubled rival by filing for bankruptcy.
Dynegy, which earlier this week backed out of a deal to bail out Enron through a $9 billion takeover, said it bought $1.5 billion of preferred stock in Northern Natural Gas, a 16,500-mile interstate pipeline company.
"As a result of this purchase, Northern Natural Gas cannot take certain actions, including seeking bankruptcy court protection, without the consent of Dynegy as a preferred stockholder," Dynegy said in a statement.
Dynegy also said despite canceling its proposed purchase of Enron, it still has the right to buy all the common stock of Northern Natural Gas and intends to close that transaction on Dec 12. Upon closing, about $950 million of Northern Natural Gas debt will remain, it said.
Enron, which is widely expected to seek bankruptcy protection, contests Dynegy's claim.
"Dynegy's right to exercise the option is not dependent on Enron's agreement to our right to terminate the merger," Dynegy said.
Northern Natural Gas was formerly part of InterNorth, which merged with Houston Natural Gas in the mid-1980s to form Enron, and has been a separate unit for more than 20 years, Dynegy said.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
UK: UPDATE 1-Enron says 1,875MW UK Teesside station operating.

11/30/2001
Reuters English News Service
(C) Reuters Limited 2001.
LONDON, Nov 30 (Reuters) - The 1,875 megawatt Teesside gas-fired power station operated by Enron was delivering electricity to the national grid as normal, the company said on Friday.
"At present Teesside is operating normally," a spokeswoman for the group told Reuters.
Enron's European trading business was placed in adminstration on Thursday, but this did not include the Teesside power station, in which Enron has a 50 percent stake.
Britain's National Grid said it would call on other power generators to increase production if it looked like output from the power station might be cut. "If there were circumstances where there would not be enough marginal spare capacity we would ask generators to increase output," a spokesman for the National Grid told Reuters.
"It is standard practice," he said.
The troubled U.S. energy group, which boasted revenue of $101 billion in 2002, is on the verge of bankruptcy after surprising off-balance sheet disclosures triggered a share price collapse.
The Teesside combined cycle gas-fired power station, which came on stream in 1992, is 50 percent owned by Enron with the other 50 percent split between Midlands Electricity , Northern Electric, owned by MidAmerican Energy, the U.S. utility controlled by Warren Buffett's Berkshire Hathaway and Western Power Distribution.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
UK: UPDATE 1-Innogy may buy Enron UK assets at "right price".

11/30/2001
Reuters English News Service
(C) Reuters Limited 2001.
LONDON, Nov 30 (Reuters) - British utility Innogy said on Friday it would consider buying Enron's generation and retail assets in Britain if the price were right.
"We would be interested in both Enron's share of the Teesside power station and Enron Direct (a retail arm) at the right price," a spokesman at Innogy told Reuters.
Enron has a 50 percent share in the 1,875 megawatt gas-fired Teesside power station in north-east England, an investment which analysts say could be worth about 250 million pounds.
Analysts said the Teesside plant might also attract interest from state-owned Electricite de France (EdF) and Dynegy, Enron's former suitor which pulled out of a rescue bid on Wednesday, propelling the group towards collapse.
EdF said it was too soon comment on the plant, one of the largest gas-fired power stations in Europe.
"As with every company, we will look closely but it is too early and nothing has been offered yet," he said.
Analysts said Teesside, which came on stream in 1992, could be an attractive buy as it has constant income.
"Teesside has a fairly steady revenue stream thanks to its Power Purchase Agreement, but that is likely to run out in about 2008 so the station's prospects after then will be less attractive," an analyst who declined to be named said.
Enron Direct has about 150,000 customers in the small to medium-sized business sector in Britain, a market which analysts say shows good revenues and strong margins.
"Enron Direct is likely to be snapped up," said David Kurtz, an analyst at Datamonitor, who thought another potential buyer aside from Innogy's retail arm npower would be Powergen.
Enron's European trading operations were placed into adminstration on Thursday as its U.S. parent tottered on the brink of collapse, but the Teesside plant and Enron Direct were excluded.
"It was the trading operations which were placed into administration because they depended on funds from Houston (Enron's U.S. headquarters). But Teesside and Enron Direct, and several other business have their own revenue streams," an Enron spokesman said.
Analysts expect all Enron's European assets, which include power stations in Turkey, Italy and Poland will be sold.
Other European business outside adminstration include Enron Credit, Enron Metals, Enron Wind, and Wessex Water.
Enron Credit, the unit which specialised in selling credit insurance to corporates, faces being wound-up with most of the 35-strong staff leaving the company on Friday while Britain's United Utilities has already expressed an interest in acquiring Wessex Water.
(Additional reporting by Marguerita Choy in Paris).

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
GERMANY: Enron Europe delays job cut meeting to 1500 GMT.

11/30/2001
Reuters English News Service
(C) Reuters Limited 2001.
FRANKFURT, Nov 30 (Reuters) - Crisis-hit Enron Europe has delayed a meeting at which it is expected to announce hundreds of job losses from 1200 GMT until 1500 GMT on Friday, said an Enron source.
"We're walking except those who have to stay to help the administrator," he said.
Enron Europe employs 5,400 people, two thousand of whom work in London where the European trading operation is based.
The company was put into administration on Thursday after its stricken American parent company cut off funding to the European trading division.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Fitch: Dynegy Remains On Rating Watch Negative

11/30/2001
Business Wire
(Copyright (c) 2001, Business Wire)
NEW YORK--(BUSINESS WIRE)--Nov. 30, 2001--The long-term credit ratings of Dynegy Inc. (DYN) and Dynegy Holdings Inc. (DYNH) remain on Rating Watch Negative following DYN's announcement Nov. 28, 2001 that it had terminated its agreement to merge with Enron, pending clarification or resolution of issues relating to the aborted merger.
Fitch had placed DYN and DYNH on Rating Watch Negative on Nov. 9, 2001 following the announcement that DYN had reached definitive agreement to acquire Enron in a stock for stock transaction. The rating action reflected uncertainty over the combined company's risk profile. In terminating the agreement, DYN cited Enron breaches of representations, warranties, covenants and agreements in the merger agreement, including the material adverse change provision. DYN also exercised its option to acquire the common stock of Northern Natural Gas Co. (NNG), an Enron pipeline subsidiary. As part of the merger agreement, ChevronTexaco Corp. (CVX), a 27% stakeholder in DYN, provided a $1.5 billion cash infusion in return for preferred stock in DYN, who in turn made a $1.5 billion capital contribution structured as a preferred stock investment in NNG with the option to purchase a single purpose entity that owns 100% of NNG's common stock.
Fitch believes that DYN's exercise of its stock option on NNG will be subject to legal challenges. Of greater concern, additional litigation revolving around DYN's aborted merger appears likely, potentially creating unquantifiable financial liabilities.
DYN ratings on Negative Rating Watch are as follows:
Dynegy Inc.
-- `BBB' implied senior unsecured debt.

Dynegy Holdings Inc.
-- outstanding `BBB+' notes.

Dynegy Capital Trust I
-- outstanding `BBB' trust preferred securities.

CONTACT: Fitch Ralph Pellecchia, 212/908-0586 or Glen Grabelsky, 212/908-0577 (Credit Policy) or Hugh Welton 1-212-908-0746, New York
09:38 EST NOVEMBER 30, 2001

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


Sorry. Meant to forward to you but forwarded instead to Thomason.

---------------------- Forwarded by Clement Lau/HOU/ECT on 06/23/2000 03:21
PM ---------------------------

Clement Lau
06/23/2000 03:21 PM
To: Adam Thomas/NA/Enron@Enron, Thomas M Suffield/Corp/Enron@ENRON, Kate
Chaney/CAL/ECT@ECT
cc: Don Miller/HOU/ECT@ECT, Jinsung Myung/Corp/Enron@Enron, Benjamin
Thomason/HOU/ECT@ECT
Subject: GenCo Breakeven Analysis

Attached is the GenCo Breakeven Analysis. Please call me if you have any
questions.

Clement
x3-9446


Sounds great

Lavo

-----Original Message-----
From: Arnold, John
Sent: Mon 2/19/2001 3:14 PM
To: Lavorato, John
Cc:
Subject: Re:


She got it all out of me long ago.  I'm thoroughly beaten.


Need to think about it a bit.  Here's some of what we know based on the settlement:

Total debt = 6.35 B
After they contribute all cash on their books and agree to eat a little, the PUC is allowing them to collect somewhere between $3.0-3.3B--depends on who you talk to.
The total owed to ESPs is $243 MM.

 -----Original Message-----
From: 	Curry, Wanda
Sent:	Tuesday, October 23, 2001 5:56 PM
To:	Dasovich, Jeff
Cc:	Steffes, James D.; Tribolet, Michael
Subject:	RE: Conversation with Edison re: Getting Negative CTC Paid

Jeff,

Do we know how much Edison's total under collection is?  Would it be as simple as to determine their total (around $3 billion?) and  gross receivable (before any payments - 145 million) and calculate the % (around 5%)?  This would result in a pretty small percentage.  Another way to look at it would be on a % of load basis.  If you use the DA load information Sue forwarded to us on October 1st,   this % (5.7%)  would also be very small.  How do you think they will look at it?  I think we would all agree to a 5% haircut, if they would JUST PAY US!

Wanda

 -----Original Message-----
From: 	Dasovich, Jeff
Sent:	Tuesday, October  23, 2001 5:19 PM
To:	Steffes, James D.; Curry, Wanda; Tribolet, Michael
Subject:	RE: Conversation with Edison re: Getting Negative CTC Paid

Wanda:  I faxed the examples that Edison faxed us and that you and Michael and I talked about some time back.  I'm sure that's how Edison would calculate it.  Does it make sense to run the numbers and see what our "contribution" to Edison's undercollection would be under Edison's view?  If you need another copy, let me know.  Question:  I don't know what our book looks like on this issue, but if we were to take the "netting" through a reduction in the PX credit going forward, how much of a hit would that be, particularly if we were to get the $120 MM up front?

Best,
Jeff

 -----Original Message-----
From: 	Steffes, James D.
Sent:	Tuesday, October 23, 2001 5:05 PM
To:	Dasovich, Jeff
Subject:	FW: Conversation with Edison re: Getting Negative CTC Paid

Jeff --

How would we calculate EES' "contribution" to SCE undercollection?

Jim

 -----Original Message-----
From: 	Dasovich, Jeff
Sent:	Tuesday, October 23, 2001 5:02 PM
To:	Shapiro, Richard; Steffes, James D.; Mellencamp, Lisa; Tribolet, Michael; Sanders, Richard B.; Kean, Steven J.; Sharp, Vicki; Smith, Mike; Williams, Robert C.; Curry, Wanda; Swain, Steve; Huddleson, Diann; Calger, Christopher F.; Belden, Tim; Dietrich, Janet
Subject:	Conversation with Edison re: Getting Negative CTC Paid

I talked to John Fielder (SVP Edison) about setting up a meeting for Barry Tycholiz with Edison's CFO about hedging Edison's QF price risk. Fielder wanted to talk about the negative CTC issue. Here's what he said:

They plan to "settle" with the ESPs and pay them when they pay everyone else, which he re-iterated would be sometime in Q1'02.
Edison is holding firm to the notion that the negative CTC contributed to the utility's undercollection and that the ESP's share of the undercollection has to be netted against the payables attributable to the negative CTC and owed the ESP.
He said that they will propose to net it out in one of two ways:  1) lump sum netting (i.e., if they owe $50MM and the share of the undercollection is $30 MM, then they pay the ESP $20 MM; or 2) future reductions in PX Credit (i.e., they pay the ESP $50 MM, and then reduce the PX going forward until the $30 MM is paid down).  The numbers are illustrative only.
In addition, he said that they have the view that a decision is going to have to be made about 1) whether DA customers pay for stranded costs tied to the DWR L-T contracts, and 2) whether DA customers pay going forward for stranded costs tied to the QF contracts.  (Edison is clearly lobbying the PUC to get DA customers to pay for these costs.)
I recommended strongly that he de-link issues 1 and 2 above from the issue of paying us ASAP what they owe us for negative CTC.  He agreed.
He said that the PUC judge's recently issued pre-hearing conference order requires that Edison "meet and confer" with ESPs prior to the Nov. 7th hearing, and that Edison intends to set something up with ESPs prior to that hearing.
Fielder is also the point person on "getting ESPs paid" and intends to initiate settlement discussions with ESPs week after next.
It was very clear from the conversation that Edison is going to do everything possible (at the expense of creditors) to maximize headroom under the settlement it struck with the PUC a few weeks ago.  Edison's stalemate with the QFs is evidence of it.  We shouldn't assume anything different with the Negative CTC issue.

If you have any questions, let us know.

Best,
Jeff


Attached is a draft posting for the 10,000/d mainline expansion.  Please let
me know your comments by the end of the day Monday, December 4th.

Thanks!


havent forgot , i didnt get a chance to update it. will send it soon. talk to you later


Hi all,

I just got off the phone with the Benefits Center and they are informing people that it could take up to 90 days for them to send "termination packages" out to these employees and then you can send in your forms and it will take another 30 days to get a check, specifically talking about the Cash Balance Plan money.  This all happens AFTER they get a notice that you are terminated which they usually process on the 1st....come on, what is up with this???  It could very well take up to 5 months for people to get a check in their hands?  That is not right.  Since all of you have a lot more clout than me or any of the terminated employees, I'm hoping that someone will take this up with Human Resources or whomever to get this form downloadable or something to speed up this process.

Thanks.

Sabra Dinari


Steve, per your request,
Here is a draft that addresses your question about external demand for
Enron's talent.
Information is still coming in from various sources but I wanted to show you
the direction this was taking so you can provide feedback. Thanks.


Suneet (T) Sharma     (enron)<ssharma@enron.com>,

The following qualifications on your user account have been terminated:

eData General

If you have any questions please contact your account manager(s):

Richard  Ring     (eesi)


Mike Swerzbin
deal 482593
Prebon shows term as Cal'02 instead of Cal'01

Thanks!!


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Attached is the weekly GenCo model. You might want to start getting familiar
with it before things get heated up for FPL. We can sit down early next week
so that I can walk thru with you how the model works and how to update it
weekly.

Thanks.


I'll will be around.  Give me a call before you come up.

	Ken Loch@ENRON
	03/28/2001 05:57 PM

		 To: Gerald Nemec/HOU/ECT@ECT
		 cc:
		 Subject: Re: Medusa Pipeline Proposal - Addendum

Thank you,

Will you be around tomorrow before lunch for an initial?

Kenn
5-8962