Attached is a preliminary draft of the letter prepared by Gibbs & Bruns
notifying TVA of the occurrence of a Triggering Event and EMPI's suspension
of deliveries under the MOPA.  Please review and call me with any questions
or comments.  We will need to carefully consider EPMI's offer to provide
energy under the MOPA at market based rates.  As you are aware,  the current
plan is to send TVA  notice on Jan. 4th.

The draft of the control area  petition should be ready for circulation on
Tuesday, the 28th.   Once received, I will forward both the petition and a
revised draft of this letter to legal, regulatory and trading for review.

CONFIDENTIAL/ATTORNEY CLIENT PRIVLEDGE

---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 12/27/99 01:06
PM ---------------------------

"Jeffrey C. Alexander" <Jalexander@Gibbs-Bruns.com> on 12/27/99 11:14:07 AM
To: Elizabeth Sager/HOU/ECT@ECT
cc:
Subject: Draft letter

Here is the draft letter for your consideration.  Please distribute this to
the members of the legal team at Enron.  Thank you for your assistance, and
have a happy holiday season.

 <<1RV501!.WPD>>

 - 1RV501!.WPD


I have attached a comparison of the revised CDWR Revenue Requirement, along with a comparison with the July 22nd figures.

* The total DWR dollars decrease $471.5 million over 2001 and 2002, centered in the periods 3Q 2001 and onward.  The "past problem" actually increases by $1.9 billion (1Q & 2Q 2001).
* PG&E has their share increased $730.1 million over 2002 and 2002, centered in 1Q and 2Q 2001.
* Edison ends up with a significant decrease of $1.199 billion in 2001 and 2002.

Regards,

Michael


Aziz,

Yes. If you are interested in joining us next summer as an intern,
we would be very happy to have you.

Please, send me your resume.

Vince

aziz lookman <al3v@andrew.cmu.edu> on 12/06/2000 01:11:57 PM
To: vince.j.kaminski@enron.com
cc:
Subject: re:developing my electricity model at Enron

Dr. Kaminski:

I am the PhD student at the business school at Carnegie Mellon who is
interested in energy modeling. Thanks once again for taking the time
to talk with me about my model for electricity during your recent
visit to Carnegie Mellon. During our conversation, you had mentioned
the possibility of my coming out to Enron to work on developing my
model, possibly through an internship. Is this still an option? If so,
could you please advise me how to proceed.

Sincerely,

Aziz A. Lookman


Here are our list of contracts.

Very truly yours,

BILLY
Billy D. Dixon
Attorney
BP America Inc.
501 Westlake Park Blvd., Rm 16.166
Houston, Texas 77079
Direct 281/366-4745
Fax 281/366-5901
billy.dixon@bp.com

***IMPORTANT -- THIS EMAIL AND ANY ATTACHMENTS HERETO ARE ATTORNEY-CLIENT
AND/OR ATTORNEY WORK-PRODUCT PRIVILEGED AND CONFIDENTIAL.  If you have
received this email in error, do not under any circumstances read, forward,
copy, disseminate or save this email or any of its attachments.  If you have
received this email in error, take the following actions: (1) reply to this
email indicating that you received this email in error, and (2) delete and
completely erase this email and its attachments from your computer and any
backup systems or "Deleted Items" folders.

-----Original Message-----
From: Heard, Marie [mailto:Marie.Heard@enron.com]
Sent: Tuesday, October 30, 2001 9:44 AM
To: billy.dixon@bp.com
Cc: St. Clair, Carol; Jones, Tana
Subject: BP Master Netting Agreement

Mr. Dixon:

Pursuant to Carol St. Clair's request, I am attaching our preliminary
list of the agreements to be under the BP Master Netting Agreement.
Since we don't own 100% of EOTT, any master netting agreement involving
EOTT will not be under this master netting agreement.

Please let us know if you have any questions or need anything else.

Marie Heard
Senior Legal Specialist
Enron North America Corp.
Phone:  (713) 853-3907
Fax:  (713) 646-3490
marie.heard@enron.com

				 <<BP Master Netting Agreement File
Index.doc>>

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and
may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or reply
to Enron Corp. at enron.messaging.administration@enron.com and delete all
copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
**********************************************************************

 - BP Canada Enron contract list.doc
 - bp us oil Enron contract list.xls
 - BPG&PNA list.xls


Troy,
 Please review the attached to see if it conforms with your agreement. If it
does, please forward it to National.  Call me if you have any further
questions.


Don't be scared...I'm just kidding.


Susan B. should have gotten our draft of the referenced guaranty to you.  It
still needs to be reviewed by the physical gas group since we are amending
their guaranty.  Do you care about any allocation of payments between HPL and
ENA?  At the moment, I do not have any allocation language in the guaranty.
SS


-----Original Message-----
From: 	Shapiro, Richard
Sent:	Monday, November 19, 2001 7:18 PM
To:	Steffes, James D.
Subject:	RE: Govt Affairs Org Chart
Importance:	High

Can you  forward  both org. charts to me together?
 -----Original Message-----
From: 	Steffes, James D.
Sent:	Monday, November 19, 2001 6:12 PM
To:	Dietrich, Janet
Cc:	Shapiro, Richard
Subject:	Govt Affairs Org Chart

Janet --

Here is the org chart that captures our discussions.  I think that this org and the # of people is the lowest level that can even try to meet the combined needs of ENA and EES.

Total headcount = 21.  The personnel cost = $6.4 MM (total for ENA and EES).

Please let me know if you have any questions.

Jim

 << File: ENA EES Govt Affairs 11.17.01.ppt >>


The Center for the Advancement of Energy Markets has issued the Retail
Energy Deregulation Index 2000 (RED Index).

The RED Index shows that
*  Pennsylvania and New York, with scores of 59 and 58 out of 100,
respectively, lead the nation in customer choice.
* California, the pioneer in electric restructuring, surprisingly ranks only
11th, with a score of 34.
*  Texas, a relative newcomer to restructuring, leads the South with a score
of 45 and a ranking of seventh in the nation.
* The national average score is 18, but that rises to 20.4 when weighted by
sales volume and 23.3 when weighted by revenue.

The Center for the Advancement of Energy Markets (CAEM) is an independent,
nonprofit think tank whose mission is to promote an effective transition
from the monopoly model of regulation to the competitive or customer choice
model. Ken Malloy, President of CAEM and primary author of the RED Index,
has been a public official with the Federal Energy Regulatory Commission,
the Illinois Commerce Commission, and the U.S. Department of Energy.

Is there a correlation between states with higher electric prices and
states' progress toward restructuring?  There is a stronger movement in
states that rank higher in average price, since all contiguous states
scoring in the top 10 for price also were in the top 20 in the RED Index.
But this movement is no confined to high priced states.  Nevada, Montana,
and Texas all are below average states on price but are ranked in the top 10
on the RED Index.

RED Index 2000 is a 90-page study that measures the progress states have
made in moving from the monopoly model of public utility regulation to the
competitive model. A RED Index score of 0 represents the monopoly model and
a score of 100 represents complete and effective implementation of the
competitive model. The index focuses on retail competition and currently
only covers electric restructuring, and will be updated twice a year.

CAEM developed the RED Index by identifying 18 key attributes that are the
foundation for an effective transition to competition. These attributes were
weighted and scores were assigned to the different options that states have
regarding that attribute. CAEM then conducted research to determine the
option chosen by each state on each of the 18 attributes. The index scores
were then calculated based on the methodology and research.

CAEM provides the RED Index at no fee to state public utility commissions,
state energy offices, consumer organizations, governmental agencies,
educational, and nonprofit, public interest organizations. CAEM funds the
study by charging a fee of $495 to private sector companies.

Private sector organizations can order a copy from redindex@caem.org,
through the center website at www.caem.org, or by calling 703-250-1580.

Please feel free to contact me with any questions.

Ken Malloy
President
Center for the Advancement of Energy Markets
5765-F Burke Center Parkway (PMB333)
Burke, VA 22015-2233
o 703-250-1580
h 703-239-8862
f  248-928-5040
e kmalloy@caem.org

[[ KENMAL~1.VCF : 4119 in winmail.dat ]]

 - winmail.dat


Trang,

Thanks.

Vince

	From:  Trang Dinh                           01/10/2000 06:30 PM

To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Congratulations!

You did again!  I just read about your most recent accomplishment.
Congratulations on your promotion!  Go Vince....go Vince... go Vince..!

Sending warmest regards,
Trang


Is the notice the only change?  If so, it looks ok to me.


As per the voice mail.----cgy
---------------------- Forwarded by Christian Yoder/HOU/ECT on 12/07/2000
01:23 PM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Stephen Hall" <schall@stoel.com>                           12/06/2000
05:08 PM

To: gfergus@brobeck.com
cc: cyoder@enron.com, esager@enron.com, rsanders@enron.com
Subject: Trading analysis

Gary,

As you requested, I am sending my summary and analysis of Enron's trading
practices.  When you meet with your co-counsel to discuss this memorandum,
Christian and I would like to participate by phone, if possible.

Steve

NOTICE:  This communication may contain privileged or other confidential
information.  If you are not the intended recipient, or believe that you have
received this communication in error, please do not print, copy, retransmit,
disseminate, or otherwise use the information.  Also, please indicate to the
sender that you have received this email in error, and delete the copy you
received. Thank you.

Stephen C. Hall
Stoel Rives LLP
schall@stoel.com
tel: (503) 294-9897
fax: (503) 220-2480

 - CALTRA~1.DOC


Welcome back. Do we need to set up a meeting to discuss the tortious
interference question we talked about before you left?


----- Forwarded by Mark Taylor/HOU/ECT on 11/30/2000 10:08 AM -----

	SULLIVAN&CROMWELL@sullcrom.com
	11/28/2000 04:55 PM

		 To: Mark.Taylor@enron.com
		 cc:
		 Subject: S&C Memo Re: Commodity Futures Trading Commission: Final Rulemaking
for a New Regulatory

Re: Commodity Futures Trading Commission: Final Rulemaking for a New
Regulatory Framework for Multilaeral Transaction Execution Facilities,
Intermediaries and Clearing Organizations

                     Attached is a memorandum from Sullivan & Cromwell
concerning the above subject. A summary is also included at the end of
the text of this e-mail message.

                    The attached file is in Adobe Acrobat
format.  We believe most PCs will already have an Acrobat viewer
loaded; we can provide free copies if Acrobat is not already loaded,
and free copies can also be downloaded from the Adobe Acrobat web
site at www.adobe.com.  To view or print the memo use your e-mail
system's function for opening attachments in their native format.
Hard copies can be obtained from Ivy Moreno at S&C in New York,
telephone 212-558-3448, e-mail: Morenoi@sullcrom.com.

SUMMARY

                      On November 22, 2000, the Commodity Futures Trading
Commission ("CTFC")approved four releases setting out final rules for
regulatory reform (the "Final Rules").  The Final Rules largely follow
the proposed rules issued by the Commission on June 8, 2000.*
The Final Rules are to be effective 60 days after their publication in
the Federal Register.

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

This e-mail is sent by a law firm and contains information
that may be privileged and confidential. If you are not the
intended recipient, please delete the e-mail and notify us
immediately.

 - CMS10713.pdf


---------------------- Forwarded by Chris Germany/HOU/ECT on 07/14/2000 01:34
PM ---------------------------

Chris Germany
06/29/2000 09:10 PM
To: Victoria Versen/HOU/ECT@ECT, Alvin Thompson/Corp/Enron@Enron, Beverly
Beaty/HOU/ECT@ECT, Scott Goodell/Corp/Enron@ENRON, Judy Townsend/HOU/ECT@ECT,
Dan Junek/HOU/ECT@ECT, Victor Lamadrid/HOU/ECT@ECT
cc:
Subject: Trco for July

This is what we have so far.

Primary on k#.7537
 Volume  Comment
 60,000  Telescoped to NY
 30,000  Z3 to NY

 3,000  Z3 to Non NY

 17,000  Z3 to Z4

Note:  Maybe Scott will Highlight in Red what we have for retail.

Primary 6-6 space from Leidy/Wharton to NY
 Volume  k#
 16,500  3.4367

 8,850  2.2390

 12,800  2.2173

Segmented 6-6 Space
k#3.4367   30,000 maybe ( need to check 1st thing in the morning)

Backhaul k# 3.5806  6-1 space     20,000 smackerooooos.

Segmented Space  3-3
k#.7537    112,800 definite  and another 15,600 maybe( i need to check 1st
thing in the morning)

No segmented 4-4 space


What do we know about this?  Has the CPUC then opened a formal investigation
into the gas infrastructure issue?

** I00-11-022  Investigation of SoCalGas' & SDG&E's gas transmission system
adequacy - Prehearing conference May 17


Greg

Thanks for taking the time to interview Nigel.  If you like him please sell
him hard on
---------------------- Forwarded by John J Lavorato/Corp/Enron on 09/29/2000
12:43 PM ---------------------------

	From:  Kimberly Hillis @ ECT                           09/29/2000 09:52 AM

To: John Arnold/HOU/ECT@ECT, Fletcher J Sturm/HOU/ECT@ECT, Kevin M
Presto/HOU/ECT@ECT, Mark Dana Davis/HOU/ECT@ECT, Rogers Herndon/HOU/ECT@ect,
John J Lavorato/Corp/Enron@Enron, David W Delainey/HOU/ECT@ECT, Greg
Whalley/HOU/ECT@ECT
cc: Ina Rangel/HOU/ECT@ECT, Kay Chapman/HOU/ECT@ECT, Felicia
Doan/HOU/ECT@ECT, Tamara Jae Black/HOU/ECT@ECT, Airam Arteaga/HOU/ECT@ECT,
Jessica Ramirez/HOU/ECT@ECT

Subject: Nigel Patterson

Below please find a copy of the resume and the itinerary for Nigel
Patterson.

If you have any questions, please do not hesitate to call me or John Lavorato.

Thanks for you help.

Kim
x30681

12:30 - 1:00  Rogers Herndon  (EB3320)

1:00 - 1:30  Kevin Presto   (EB3320)

1:30 - 2:00  Dana Davis   (EB3320)

2:00 - 2:30  Dave Delainey  (EB3314)

2:30 - 3:00  John Arnold   (EB3320)

3:15 - 4:00  Greg Whalley   (EB2801)

4:00 - 4:30  Fletch Sturm   (EB3320)


The attached bullets give real-life examples that people will understand.  I
also told Karen Denne to reference the bullets at the beginning of our motion
if she needs to know what we're requesting at FERC.  Please notify Karen and
me if you see any problems with the message.
---------------------- Forwarded by Mary Hain/HOU/ECT on 10/20/2000 02:25 PM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Seabron Adamson" <seabron.adamson@frontier-economics.com>
              10/20/2000 02:08 PM

To: <Mary.Hain@enron.com>
cc: <kdenne@enron.com>
Subject: Layman's Summary of FERC White Paper

Mary:

Please find attached a bried one page summary of the FERC White Paper, as
discussed. I have tried to make it simple and with analogies that are
comprehensible to the press, etc.

Seab

This e-mail, and any attachments thereto, is intended only for use by the
addressee(s) named herein and may contain legally privileged and/or
confidential information.  If you are not the intended recipient of this
e-mail, you are hereby notified that any dissemination, distribution or
copying of this e-mail, and any attachments thereto, is strictly prohibited.
If you have received this e-mail in error, please immediately notify me at
(617) 354-0060 and permanently delete the original and any copy of any
e-mail and any printout thereof.

Seabron Adamson
Frontier Economics Inc
Two Brattle Square
Cambridge, MA 02138 USA
Ph:  (617) 354-0060
Fax: (617) 354-0640
seabron.adamson@frontier-economics.com

 - 00-10-20 SA Summary of White Paper on Completing California's Power
Markets.doc


<<30b202!.DOC>>

Greg and Isabel:

Enclosed is the initial draft of a letter agreement by ENA consenting to the
form of the ENA Consent, the Promissory Note, the Security Agreement and the
Financing Statement, prepared along the same lines as the GE consent.
Please review and advise of any comments.   Thank you.

Carolyn M. Campbell
King & Spalding
713-276-7307 (phone)
713-751-3280 (fax)
ccampbell@kslaw.com <mailto:ccampbell@kslaw.com>

Enclosure 140366v2

                    Confidentiality Notice
This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure.  If you are not the
named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.

 - 30b202!.DOC


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 11/27/2000
01:14 PM ---------------------------

Amitava Dhar@ENRON
11/14/2000 03:45 PM
To: Vince J Kaminski/HOU/ECT@ECT, Vasant Shanbhogue/HOU/ECT@ECT
cc:
Subject: Writeup on methodology for Bankruptcy Swap Pricing Regression Model

This is the first draft.  Please let me know if you want me make changes.


I got the message that you couldn't meet this afternoon.  Thought I would do
a quick note to bring you up to date on some things.

Commercialization Efforts- Services:  Delayed by several days due to the
unexpected absence of Mary Solmonson for health reasons.  I learned about
this when I returned to the office on Tuesday, and have worked to replace her
as best we can during this market sizing phase.  Jennifer Denney (who was in
Dallas with us and works under Sheri Thomas in the EOL Product Control Group)
will partner with James Scribner in Mary's absence to help us run down
additional data on potential customers.  Beth Apollo will be working closely
with James and Jennifer.  They will welcome Rahil's help and will continue to
work with Jennifer on developing the revenue model.

Commercialization Efforts - Consulting:  Bjorn Hagelman in the RAC group made
a presentation at the Risk Forum luncheon last week outlining a plan for
providing risk consulting services to external customers.  Some of his ideas
overlap the ideas around consulting that we fleshed out in our Dallas
meeting.  Some of his ideas included providing services from my risk
operations team.  I want this to be a concerted and not disjointed effort.
Bjorn's vision is to create an Enron sub that will be the consulting
company.  Our team in Dallas saw wisdom in partnering with an
accounting/consulting firm - established marketing arm, existing customer
contacts, proven consulting skills, depth of resources, etc.  There could be
a play to get a hefty sum up front from a consulting firm to partner with us
- we impart our risk knowledge, they get the edge in the marketplace from
pairing with us, we take our upfront payment, they do most of the grinding
work - not necessarily a bad model.  Bjorn seems to be in a hurry, as he has
identified a shipping company in Europe that is in need of risk consulting
and is ready to pay.  Probably okay for him to start this effort in that
way.  Prove concept, and then we can consider the wisdom of partnering with
someone else.  I spent some time with him today.  I want to be sure that he
doesn't commit my team to provide a service without our understanding and
being in agreement with the fee structure.  We are okay for right now.  I
will be following what Bjorn is doing and looking for ways to work together
if there is a good upside.  I will keep you posted.

Commercialization Efforts - Internal Marketing:  We have to change some
business practices within Enron and create a mind shift when originators are
selling operational services to their customers.  We must price those and we
must have a mechanism for granting the appropriate income to Operations.
Deal is in the works through power origination team - they priced our
services to customer without our involvement- pricing may not even be
sufficient to cover our costs.  We are researching.  To do's here are to
create an internal marketing document to review with lead originators and to
change DASH process so that Operations has a sign-off.  I met with Louise
today on this.  I will plan meetings with origination teams during the week
of March 19.  Would love to get your input on our presentation to the orig
teams.  I will get you a draft for your comments.

Operational Risk:  Key focus this week has been on rebuilding a risk team in
Portland.  Have worked with Stacey White (my power risk director) and Tim
Belden to make sure we have a short term and long term plan that will work.
I am comfortable that we have devised a good plan.  (We lost the manager of
that group last week - a planned move to London to follow her husband to an
Enron job there.  Our unexpected change this week was the resignation Monday
of another risk book administrator from Portland.)

Operational Risk:  Another key area that we are focusing on is the HPL sale.
End of day today we will know which employees are going to AEP.  We are
working on a smooth transition plan and how we will handle trailing issues
with customers after the sale effective date.  We expect to eliminate 46
positions with the sale.  This number was much larger earlier in the year
(around 70), but have had a lot of attrition with the news of the sale.  Bob
Hall is focused on the details around this issue.

Operational Risk:  We completed a Doorstep Review on the Monterrey office
last week.  (This is the review of operational controls and procedures.)
Went well - Max was skeptical about the process at first, but pleased in the
end.  I will forward and e:mail to you from Max proclaiming his support of
these reviews.  We overhauled this week the Doorstep Review schedule for the
remainder of the year and reviewed that today with Rick Causey.  He likes the
revisions that we have made.  Beth Apollo on my team is leading this effort.

Spring Break Plans:  My children are on Spring Break the week of March 12 and
the nanny has the week off.  We will be out of town through Wednesday, March
13 with the whole family looking at colleges for Meagan.  Patti has contact
numbers for me if needed.  I may decide to come back into the office on
Thursday and Friday.  I will let Patti know when we get back in town.  I will
either see you the end of next week, or back on Monday, March 19.  See
separate e:mail for contact names and numbers in Operations while I am out.


Dear All

Please find attached the new format for collecting information for the weekly
report.

Please click into the document and write your information using the current
format:

Text =Times New Roman
 Font size = 12
All information should be bulleted using a simple circular bullet
point.

Please complete the report for 12th-16th June 2000 and return the document to
me by 18:00 on Friday 16th June.
The report will be circulated on Monday 19th June.

Regards
Fiona Grant


----- Forwarded by Jeff Dasovich/NA/Enron on 02/27/2001 05:50 PM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	02/27/2001 04:30 PM

		 To: IEP <jmunoz@mcnallytemple.com>
		 cc:
		 Subject: IEP News Update

Mirant Agrees to Move 1,000 Megawatts in Power Contracts to California DWR

PR Newswire
02/27/01, 5:17p
(Copyright , 2001, PR Newswire)

SACRAMENTO, Calif., Feb. 27 /PRNewswire/ -- Mirant Corp. (NYSE: MIR) today
announced an agreement to shift 1,000 megawatts in power contracts from the
California Power Exchange to the state's Department of Water Resources
(DWR), which is acting as the state's electricity buyer.

"In our continuing effort to cooperate with the State of California, the
California DWR has been named as the third-party holder of these contracts,"
said Randy Harrison, chief executive officer of Mirant's western U.S.
operations. "This places the contracts directly in the hands of a
creditworthy entity."

The contracts vary in term length from a month to 10 months. The state of
California took control of the contracts after the California Power Exchange
ceased doing business.

Mirant, which operates California power plants in San Francisco, Antioch and
Pittsburg, last week agreed to provide 750 megawatts of electric generation
capacity to DWR during March.

Formerly known as Southern Energy, Mirant is a global competitive energy
company with leading energy marketing and risk-management expertise. With an
integrated business model, Mirant develops, constructs, owns and operates
power plants and sells wholesale electricity, gas and other energy-related
commodity products. The company has extensive operations in North America,
Europe and Asia. Mirant owns or controls more than 20,000 megawatts of
electric generating capacity around the world, including more than 14,000
megawatts in the United States, with another 9,000 megawatts under advanced
development. Mirant is 80 percent owned by Southern Company (NYSE: SO)

SOURCE Mirant Corp.

/CONTACT: media, Chuck Griffin, 678-579-7814, or investors, John Robinson,
678-579-7782, both of Mirant Corp./

/Web site: http://www.mirant.com /

Fitch Views SCE Transmission Sale Favorably

Business Wire
02/27/01, 2:00p
(Copyright , 2001, Business Wire)

NEW YORK--(BUSINESS WIRE)--Feb. 27, 2001--Fitch views Southern California
Edison's (SCE) tentative agreement to sell its transmission assets as a
favorable step to avoid bankruptcy.

Fitch maintains its Rating Watch Evolving status for SCE's securities.

Under an agreement announced by the Governor of California, the state plans
to purchase SCE's transmission lines for $2.76 billion. Gains from the sale
are expected to reduce debt incurred for power procurement costs that have
exceeded retail rates.

At 2.3 times (x) their book value, the purchase price is a healthy multiple
on assets that earn a small percentage of total utility revenues. SCE's
remaining assets are low variable cost generation (primarily hydro and
nuclear, with some coal-fired), and its large distribution infrastructure.

As of Jan. 31, 2001, SCE had incurred approximately $5.5 billion of
undercollections. Under its first mortgage indenture, SCE's transmission
assets may be released from the mortgage without paying secured bondholders
if at least 150% asset coverage of outstanding secured debt exists. SCE has
approximately $9 billion of additional unbonded utility property, which
provides more than enough collateral to permit the transmission asset sale
under the indenture.

Proceeds from the transmission asset sale, however, are insufficient to
recoup all of SCE's previously incurred undercollections and meet financial
obligations. SCE owes approximately $614 million in unpaid principal and
interest on its bonds and commercial paper.

Through Feb. 5, 2001, SCE deferred payments aggregating $743 million due to
the PX, ISO and QFs. Through Feb. 28, 2001, an additional $733 million will
become due to these providers. Another $78 million is due to energy service
providers through Feb. 15, 2001. The utility's bank groups have agreed to
forbear taking action under their credit agreements until March 14.

The utility will need to consider action before cure periods under certain
unpaid bonds expire within the month. SCE has accumulated $1.4 billion in
cash as of Feb. 5, which could be applied to make critical payments and
prevent acceleration. SCE has paid interest on certain bonds before their
cure periods expired.

In addition, the utility will need to address its existing agreements with
qualifying facility (QF) power producers. Many of these agreements have a
variable cost component tied to natural gas prices, which currently exceed
retail rates. As the state of California and its investor-owned utilities
work to reform the power market, some restructuring of these contracts
remains a possibility.

The transmission proposal will require the approval of the Federal Energy
Regulatory Energy Commission (FERC) and the California legislature. FERC
approval could require many months to occur. Similar transactions may need
to be executed with California's other investor-owned utilities, San Diego
Gas and Electric Company, and Pacific Gas and Electric Company to assure
passage of legislation.

Any legislation to restructure California's power market also risks voter
initiatives overturning these actions at a later date.

Asset sale proceeds will almost halve the amount of previously incurred
excess power costs, plus EIX plans to infuse $420 million into SCE as part
of the overall agreement. Based on legislation passed earlier this month,
the California Department of Water Resources (CDWR) has now assumed future
power purchase obligations until 2003.

To recoup the remaining amount of uncollected costs, the tentative agreement
includes a dedicated rate component permitting securitization at the utility
company level.

If an agreement is reached and approved by all parties, SCE will likely
assume a somewhat different profile. Its generation is moving to a cost of
service basis, which yields a regulated rate of return. SCE currently has an
11.6% authorized rate of return. Combined with the state owning the
transmission infrastructure, SCE would become a more stable, less
growth-oriented investment.

Headquartered in Rosemead, Calif., SCE is a wholly-owned subsidiary of
Edison International (EIX). Serving 4.3 million customers, SCE's peak demand
was 19,757 mw as of Sept. 30, 2000. The utility owns 10,430 mw of
generation.

Fitch currently rates these SCE securities:

    -- First Mortgage Bonds `B-`;
    -- Senior Unsecured Debt `CC';
    -- Preferred Stock/QUIDS `C';
    -- Commercial Paper `D';
    -- Rating Watch Evolving.
Prominent Tech Business Leaders Call for National Energy Reliability
Initiative

Business Wire
02/27/01, 11:20a
(Copyright , 2001, Business Wire)

DANBURY, Conn.--(BUSINESS WIRE)--Feb. 27, 2001--

   Congress & Bush Administration Are Urged To Support Research For
     New Technologies In Electricity Generation and Distribution

Leading energy associations and Fortune 500 companies have delivered a
letter to Capitol Hill appropriations committees proposing that the U.S.
Department of Energy create a $320 million National Energy Reliability
Initiative for the 2002 fiscal year, specifically focused on the energy
needs of the high-tech industry. The more than 20 prominent businesses and
trade groups that signed the letter are urging U.S. House and Senate
leaders, as well as the Bush Administration, to establish the federal
initiative as a channel for public-private research in new energy
technologies, including distributed generation and end-use improvements.

The proposed National Energy Reliability Initiative program budget, along
with a letter addressed to Energy Secretary Spencer Abraham, can be viewed
at http://www.hi-availability.com/news.htm.

According to National Energy Reliability Initiative supporters, power
outages cost the nation nearly $50 billion annually. They back calls that
the U.S. Department of Energy should support research, development and
deployment of innovative energy systems so that America's information-based
industries can remain competitive in the global economy.

"High-tech businesses face tremendous financial risk from outages and
brownouts because power fluctuations of only a few microseconds can bring
computers and other sensitive systems to a crashing halt," says Patrick
Hanley, president and CEO of Sure Power Corporation, a developer of next
generation power systems and one of the more than 20 firms backing the
letter.

"As recent events in California have demonstrated, the nation's existing
infrastructure cannot adequately meet the New Economy's need for high
amounts of reliable, computer-grade electricity," Hanley notes.

About Sure Power Corporation

Sure Power Corporation, a privately-held company located in Danbury, Conn.,
delivers computer-grade electricity at "six 9s" availability and better,
exceeding the highest availability levels required for mainframe computers
and high-end servers. Its distributed generation systems are at the
forefront of the onsite power industry. Spencer Trask, a New York City
venture capital firm, owns a minority stake in the company. With Sure
Power's high availability power systems, users realize substantially
increased uptime, allowing for higher revenues and fewer unexpected losses.
Sure Power has partnerships with both High-Point Rendel and R.W. Beck in the
construction, planning and design of its systems. More information about
Sure Power Corporation can be found at www.hi-availability.com.

    CONTACT: Sure Power Corporation
             Art Mannion, (203) 790-8996
             amannion@hi-availability.com
                OR
             Sterling Hager, Inc.
             Jon Rucket, (617) 926-6665 ext. 369
             jrucket@sterlinghager.com


I sensed the same thing.  Sue's been calling me -- sort of freaking out over
documents etc.  Not sure why.  I'm here for about 20 more minutes and then I
have to go to a lunch/baby shower for one of the gals here.  Call me on the
cell if you don't get me at work.  713-851-3778 cell.

From: Jeff Dasovich on 04/27/2001 10:29 AM
Sent by: Jeff Dasovich
To: Janel Guerrero/Corp/Enron@Enron
cc:

Subject: Lay Tour

Hi:
I'm going to call you in a bit--I'm on a conference call right now.  We need
to coordinate just a wee bit.  Landwehr's all over Rosie, and we're getting
mixed up between her RGA meetings and the CA meetings. I talked to her a
little this AM and expressed a concern that we not get poor Rosie all wrapped
around an axle and confused.  We may have several points of contact here for
various issues.  No big deal, but I want to make sure things don't get more
complicated than they need to be.  I'll forward you a note from Sue to Rosie
(and me) that you weren't on.  Also want to talk about your voicemail last
night--i.e., I may need to travel with KL, which is fine by me if that's
necessary.

Best,
Jeff


closed


FYI>>>We were also monitoring the EOL to Sitara bridge during this time to inform our traders and other desks of the situation and status...All deals bridged over by 10:30ish. THANKS

 -----Original Message-----
From: 	Truong, Dat
Sent:	Thursday, October 25, 2001 11:11 AM
To:	Moorer, Torrey; Lamadrid, Victor; Severson, Russ; Grant, George
Cc:	Husain, Karima; Lim, Francis S.; Saluja, Gurdip; Sweitzer, Tara
Subject:	Sitara EOL Bridge Problem Today

The problem we faced today was due to 2 eol deal packets (2098073, 2099764) not having startdate and enddate.  Missing these 2 tibco message fields caused the bridge to bounce and resulted in the queue to build up while the bridge is starting up. (The bridge takes 2 minute for startup).  Each time these deals are sent/resent, it continuously cause the Sitarar EOLBridge to restart, thus magnifying the buildup of the queue.

The corrective action we are taking at our end is to build a rejection logic when eol packets do not have start and/or enddate.

-Dat Truong


I will distribute copies of the initial draft of QFD chart to you.  The goal
of the meeting is to clearly define the customers, collect all known and
expected customer requirements (their WANTS),  prioritize the WANTS,
brainstorm HOW we can or do meet the WANTS,  prioritize the HOWS, discuss how
to organize the findings, and then talk about unnecessary or low value work.
A customer is anyone we provide services, reports, analyses, data, or any
other product to.  The customer is the C in COPIS.

 If you have any time between now and 13:00 hrs then please think of any
customer requirement (what they want from us) that you are aware of but is
not under the header "Customer Expectation".   Scribble it on your copy in an
open cell.   Other than that just bring your copy of the chart to the meeting
with you.   Thanks.


Enron and Exelon Unit Set Chicago Power Deal
The Wall Street Journal, 06/07/01

World Watch
The Wall Street Journal, 06/07/01

Enron Broadband invests in AP Engines
Houston Chronicle, 06/07/01

Attempt to save Enron power project in India extended to third day
Houston Chronicle, 06/07/01

Derwent Valley. : Grosvenor Place Pre-letting
Dow Jones International News, 06/07/01

India Dabhol Pwr Lenders Mtg Ends "Positively" - Source
Dow Jones Asian Equities Report, 06/07/01

INDIA: Private firms expect Enron India's woes to end.
Reuters English News Service, 06/07/01

India IDBI Exec Leaves Dabhol Mtg Early; Reason Unknown
Dow Jones International News, 06/07/01

INDIAN PM CONFIDENT OF RESOLVING ENRON DISAGREEMENT SOON
Asia Pulse, 06/07/01

Walking the talk?
The Daily Deal, 06/07/01

GM, Other U.S. Companies Blast Bush Move to Shield Steelmakers
Bloomberg, 06/07/01

Pacific Hydro Bends With the Wind, Flows With Water (Update5)
Bloomberg, 06/07/01

Council status quo for blacks Hispanic growth likely to affect white wards
Chicago Tribune, 06/07/01

Enron Plans to Challenge Power Regulator's Order, Paper Says
Bloomberg, 06/07/01

Since when does rape equal justice?
Chicago Tribune, 06/07/01

PPA in force, claims DPC
Business Standard, 06/07/01

Calif Eyes Ending Access To Alternative Power Suppliers
Dow Jones Energy Service, 06/06/01

Enron and Exelon Unit Set Chicago Power Deal
Dow Jones Newswires

06/07/2001
The Wall Street Journal
A4
(Copyright (c) 2001, Dow Jones & Company, Inc.)

CHICAGO -- Enron Corp. and Exelon Corp.'s Commonwealth Edison Co. signed an
agreement to supply power to the city of Chicago and 47 suburban communities,
in the largest such deal since Illinois deregulated its electricity industry
in 1997.
Under the agreement, Enron will provide 60% of the 400 megawatts of power
contracted annually while ComEd will provide the rest.
Terms of the contract, expected to go into effect this year, weren't
disclosed.
The coalition of governments sent out requests for bids to the state's 13
registered electricity providers last summer in a bid to bring down power
costs.

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

International
World Watch
Compiled by David I. Oyama

06/07/2001
The Wall Street Journal
A17
(Copyright (c) 2001, Dow Jones & Company, Inc.)

ASIA/PACIFIC
Lenders to Enron Unit Continue Talks
Foreign and Indian lenders are scheduled to meet again today in Singapore,
after two days of talks with Dabhol Power, U.S. energy company Enron's Indian
unit, ended in deadlock, according to R.M. Ganatara, general manager of the
Industrial Development Bank of India. The talks are over the future direction
of its $2.9 billion power project near Bombay. "Something is being hammered
out; there isn't a common meeting point yet. We will be looking toward a
solution to end this crisis" at today's meeting, he said. But he said he
wasn't "sure how and where the talks will end" concerning the project, which
has been torn by a bitter dispute between Dabhol and the Maharashtra State
Electricity Board over nonpayment of bills and power charges.

June 7, 2001, 12:09AM
Briefs: Houston & state

Enron Broadband invests in AP Engines
Enron Broadband Services, a division of Houston-based Enron Corp., took part
in a $30 million venture investment into Massachusetts-based tech firm AP
Engines.
Private equity fund Thomas Weisel Capital Partners led the round, while Atlas
Venture, Bessemer Venture Partners and Commonwealth Capital Ventures,
Lighthouse Capital Partners and Mentmore Venture Partners also participated
in the round.
AP Engines develops software that allows broadband Internet service
providers, such as cable and telephone companies, to move a variety of data
types, including, e-mail, voice, video-on-demand and video conferencing over
their networks.

June 7, 2001, 9:58PM
Houston Chronicle
Attempt to save Enron power project in India extended to third day
Bloomberg Business News
SINGAPORE -- Indian banks that funded Dabhol Power Co., a unit of Enron
Corp., and international lenders extended a meeting into a third day to try
to save the $3 billion power project from closure, bankers said Wednesday.
Executives from Industrial Development Bank of India, or IDBI, other Indian
banks and international lenders such as ABN Amro Holding NV decided to meet
again today after initially planning a two-day meeting, the bankers said.
The meeting was called to resolve a dispute related to power prices that has
resulted in Dabhol and the Maharashtra State Electricity Board, its only
customer, starting to terminate the project.
The fate of Houston-based Enron's first investment in India is seen as a
litmus test for future foreign involvement in infrastructure projects in the
country. Indian banks have the most at stake. Unlike them, international
lenders received government guarantees for about $600 million they lent to
the project.
The Indian banks, which have given as much as $1.4 billion in unsecured
loans, are that concerned foreign creditors may call for a termination of the
project and invoke their guarantees and are seeking ways to keep it alive.
Lenders such as ABN Amro, Citibank N.A., a unit of Citigroup, Bank of America
and Credit Suisse First Boston in April approved Dabhol's decision to begin
termination of its power supply contract with the board.
Foreign banks wouldn't comment on what solution they are seeking from the
Indian lenders at the Singapore meeting.

Derwent Valley. : Grosvenor Place Pre-letting

06/07/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LONDON -(Dow Jones)- The company has, through one of its subsidiaries,
pre-let further office space at 21 Grosvenor Place, SW1 to Enron Power
Operations.
Enron took 1,980 sq. m (21,300 sq. ft) earlier this year and is now taking an
additional 1,170 sq. m (12,600 sq. ft), at GBP0.7m per annum.
The rent payable equates to GBP55 per sq. ft, for a lease expiring in 2014,
with reviews in 2004 and 2009.
Refurbishment of this newly-let space will be incorporated into the current
scheme, at an additional cost of GBP1m, with the work scheduled for
completion at the end of 2001.
ICV Edited News from Dow Jones

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

India Dabhol Pwr Lenders Mtg Ends "Positively" - Source

06/07/2001
Dow Jones Asian Equities Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)

SINGAPORE (Dow Jones) A three-day meeting involving institutional domestic
and foreign lenders to U.S. Enron Corp.'s (ENE) troubled Dabhol Power Co.
project in India ended Thursday "positively," one of the lenders told Dow
Jones Newswires.
He added no further meetings were planned in Singapore.
Dabhol, India's largest private power plant, was scheduled for commissioning
in two phases. The project's first phase, a 740-megawatt power plant, has
already been commissioned and 1,444-megawatt phase two is due to be completed
later this year.
The $3 billion Dabhol project has been mired in financial disputes when its
main customer, the Maharashtra State Electricity Board, has failed to pay
several of its bills.
Dabhol has come under fire because of the relatively high cost of its power.
Critics object to Dabhol charging INR7.1 a kilowatt-hour for its power,
compared with INR1.5/KWh charged by other suppliers.
Enron Corp. (ENE) has a 65% controlling stake in the controversial
2,184-megawatt, $3 billion Dabhol project, which supplies power to the State
Electricity Board. MSEB has 15%, General Electric Co. (GE) has 10% and
Bechtel (X.BTL) with 10% are the other shareholders in the project.
A senior official with an Indian lender involved in the DPC project confirmed
that the meeting's outcome was positive.
"There were some positive developments. That's all I can say," the official
told Dow Jones Newswires by telephone.
IDBI Executive Director R.S. Agarwal denied media reports that lenders had
proposed mothballing the second phase of the power project at the lenders
meeting in Singapore.
"We aren't considering any such thing. Reports that say so are wrong. That
was a proposal from Dabhol Power to mothball the DPC's Phase Two for a year,"
Agarwal said, speaking from Bombay.
The DPC had proposed suspending construction of Phase Two of the power
project for "about a year or so until basic issues are sorted out," he said.
"It was felt in the meeting that the (Phase Two) of project should be
mechanically completed in all respects, and then the project's position
should be reviewed thereafter," he said.
"We have forwarded the DPC's proposal to the lenders' engineer Stone &
Webster (U.SEW) to study its commercial implications and have asked them to
report back," Aggarwal said.
He said Stone & Webster's assessment should be completed in around one week's
time.
DPC refused to comment on the result of the lenders' meeting. A Bombay-based
DPC spokesman said he couldn't pass comment on "the internal talks of a
meeting."

The second phase of the project, a 1,444 megawatt power plant, is more than
90% complete.
Speaking earlier Thursday, Wade Cline, DPC's managing director, said an
informal deadline of mid-June had been set to decide whether to continue with
Phase Two construction. However, Cline said the deadline was "not a
definitive D-Day."
"One of the key decisions they (the lenders) are focusing on is continuing
with (Phase Two) construction at the site," he said.
Wade said that an unspecified sum of money had yet to be paid to Phase Two's
contractors led by Bechtel (X.BTL). "It's a significant amount of money,"
Cline said, without elaborating further.
"(Phase Two) of the Project hasn't had any loan disbursements in the last
three months," he added.
One informed source familiar with the lenders' discussions said Phase Two
completion "would require US$500 million," adding the amount owed to
contractors is in the region of US$30 million-US$40 million.
Lenders are attempting to steer the government towards considering additional
buyers for the power produced by DPC.
"We are now at a time when there isn't a lot of certainty as to who is going
to buy the power. We are all working to find solutions to that problem,"
Cline said.
-By Sri Jegarajah, Dow Jones Newswires; 65-415-4066;
sri.jegarajah@dowjones.com (Himendra Kumar in New Deli and Daniel Pearl of
the Asian Wall Street Journal contributed to this report.)

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

INDIA: Private firms expect Enron India's woes to end.

06/07/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW DELHI, June 7 (Reuters) - India's private power producers expect an early
end to the dispute between Enron Corp and a local utility after Prime Minster
Atal Behari Vajpayee said he was optimistic about the U.S. firm's
$2.9-billion project.
"Now the central government is taking interest. That too at the highest
level. That is very nice," Harry Dhaul, director-general of the Independent
Power Producers' Association of India, told Reuters.
On Wednesday Vajpayee said he was confident that Dabhol Power Co, 65-percent
owned by Enron, and the Maharashtra State Electricity Board (MSEB), the
plant's only buyer, would sort out their problems.
MSEB, which complains that Dabhol produces costly power, defaulted on
payments of $48 million to DPC last year.
The squabble provoked Enron to serve a preliminary termination notice to MSEB
and the utility declared late in May that it had stopped buying power from
the controversial plant.
Dabhol's first phase of 740 MW is already operational and the next phase was
scheduled to add 1,444 MW later this year. MSEB has already said it would not
buy power from the project's next phase.
Private power producers, who have been demanding federal intervention in the
dispute said Vajpayee's comments augured well for the plant and will help
refurbish India's image that took a beating after the dispute involving its
largest direct foreign investor.
"I think the prime minister has done absolutely the right thing. It is going
to send the right signal that we are back on track and the international
investors concern will be duly met."

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

India IDBI Exec Leaves Dabhol Mtg Early; Reason Unknown

06/07/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- Industrial Development Bank of India Executive
Director R.S. Agarwal returned to India from Singapore late Wednesday after
two days of talks between domestic and foreign lenders on the future of Enron
Corp.'s (ENE) troubled Dabhol Power Co.
Agarwal has returned to India before the meeting has concluded. The meeting -
originally scheduled for two days - has been extended into a third day as
both parties have failed to reach any common ground on how to resolve a
prolonged dispute between the DPC and its sole buyer of power the Maharashtra
State Electricity Board.
Agarwal didn't give a reason as to why he had returned from the meeting
early.

Late Wednesday, R.M. Ganatra, IDBI general manager said talks had ended in a
deadlock. "Something is being hammered out, there isn't a common meeting
point yet."
Speaking from the company's Bombay headquarters, Agarwal said "some (IDBI)
representatives are there still (in the Singapore lenders' meeting)." He
didn't elaborate further. DPC officials are also attending the meeting.
Domestic lenders which include IDBI, State Bank of India (P.SBI) and ICICI
Ltd. (IC) have lent US$1.4 billion to the US$2.9 billion Dabhol Power
project.
Last month, Dabhol Power issued a preliminary notice to terminate its
agreement to sell power to India's Maharashtra state government and to
provide power from its online 740-megawatt Dabhol Power plant.
Dabhol Power issued the notice to terminate after the state failed to pay
December and January power bills amounting to US$48 million on time. The
state and Dabhol Power are currently in talks in an effort to see if they can
renegotiate the deal including a power purchase agreement the state says is
now too expensive.
Also, a second phase of the project, a 1,444-megawatt power plant more than
90% complete, also is in doubt.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9427;
himendra.kumar@dowjones.com

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

INDIAN PM CONFIDENT OF RESOLVING ENRON DISAGREEMENT SOON

06/07/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

MUMBAI, June 7 Asia Pulse - The Indian Prime Minister, Atal Bihari Vajpayee,
today expressed confidence that the 7-month old imbroglio over purchase of
power from Enron promoted-Dabhol Power Company (DPC) would be resolved soon.
Vajpayee, who arrived here for a knee surgery, told reporters that there were
difficulties in finding a solution, but expressed confidence that the issue
would be sorted out.
"Right steps are being taken to sort out the matter," he said, adding the
Maharashtra government and the U S energy major Enron were in a position to
resolve the imbroglio.
Centre has already directed the Central Electricity Authority (CEA) to scout
for buyers of DPC power, mainly in the power-deficient states.
Asked whether the federal government would be buying surplus power from Enron
-promoted Dabhol Power Company, Vajpayee commented "Who will purchase such a
costly power?"
(PTI) 07-06 0950

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

Industry Insight
Walking the talk?
by Lachlan Colquhoun

06/07/2001
The Daily Deal
Copyright (c) 2001 The Deal LLC

India's finance minister says the country is open for business, but delayed
deals and investor wariness tell a different story.
Indian Finance Minister Yashwant Sinha promised earlier this year he would
"walk the talk" on liberalizing the country's famously protectionist foreign
direct investment regime.
Five months on, he's clearly proud of his accomplishments. Too proud. "The
reform measures the government has put in place have paid significant
attention to foreign direct investment," Sinha said in an interview. "An
investor-friendly policy regime has been put in place with foreign investment
being permitted in almost all sectors under the automatic route."
Sinha initially won applause from foreign investors for introducing a program
that included key privatization initiatives and select sector foreign direct
investment liberalization. But the minister has stumbled recently on four key
deals.
The main privatization targets for this year -- state flag carrier Air-India
Ltd., car maker Maruti Udyog Ltd. and local telecom giant Videsh Sanchar
Nigam Ltd. -- all remain unsold.
And Enron Corp.'s long-troubled effort to make a profit from its $3 billion
investment in a 65%-owned power plant in the state of Maharashtra -- the
largest foreign investment in India -- has hit a brick wall. The Houston
power company moved in May to abandon its decade-long effort after repeated
run-ins with the state government over unpaid bills.
For corporate dealmakers, India continues to tempt and disappoint. With a
population of 1 billion and an emerging middle class, the prospect of a
reforming, open Indian economy fascinates foreign companies in the way China
did in the 1990s.
The only problem is the government's inability to implement its rhetoric on
reform. Sinha described the reform process as "irreversible." However, he
said the country was following a "calibrated" approach to "allow the economy
enough time to absorb the impact of restructuring." But calibrated to what?
No foreign groups, for example, were among the bidders expressing interest in
the 25% stake in Videsh Sanchar Nigam the national government is selling.
India's tangled telecom regulations made a bid far too problematic.
New Delhi's effort to sell 40% of Air-India is also freighted with red tape.
First off, the government is offering only 26% to a foreign carrier. This led
Delta Air Lines Inc. of the U.S. and Air France, which were planning a joint
bid, to drop out of the race.
That cleared the path for a bid by Singapore Airlines Inc. in partnership
with the local Tata group, the original owners of the nationalized air
carrier. But what is a minority stake in perpetually money-losing Air-India
worth? SIA and Tata could well balk if New Delhi asks too much.
Then there is the government's 50% stake in Maruti Udyog. Joint venture
partner Suzuki Motor Corp. has the first right of refusal on the government's
choice of buyer. The Japanese carmaker prefers that General Motors Corp.,
which holds a 20% stake in the local carmaker, buy out the government. But
the government has said no.
With New Delhi and Suzuki barely on speaking terms, the sale could be a long
way off. This would make the issue "forever and after the epitome of lost
privatization opportunities," says Udayan Bose, chairman and CEO of Lazard
India.
Sinha's response? "The government appointed a committee on March 26 to
negotiate with Suzuki. The committee has commenced formal negotiations with
Suzuki."
To be fair, Sinha has one piece of reform of which to be proud. Passage of
legislation liberalizing the insurance sector last year was his major triumph
and a landmark for global insurance giants.
Standard Life Assurance Co. and Prudential Corp. plc of Britain, as well as
Metropolitan Life Insurance Co. and American International Group Inc. of the
U.S., are among the foreign players already hooked up with Indian partners.
Sinha says the reforms will triple the size of the local insurance market
within three years.
Sinha predicts other victories soon.
"We have already taken the decision to privatize 27 public sector companies,"
he said. "In most of these cases, the process is on. We have streamlined
procedures, and it is our duty to convince the people of this country and
Parliament that the process is transparent."
Still, the privatizations of Air-India, Maruti Udyog and VSNL mean the
government's $2.3 billion sales target for this year is clearly in trouble.
And recent overall FDI figures are not encouraging, either. According to the
Reserve Bank of India, approval was granted for FDI of $55.1 billion between
1991 and 1998, but only $12 billion was actually invested.
India's infamous bureaucracy turned many potential investors away. But also
of concern is the economy. GDP growth, which many regard as inflated by
statistical quirks anyway, has declined from 6.6% in the fiscal year ending
March 2000 to an estimated 6% in fiscal 2001. Industrial growth fell from
8.2% to 6%.
Pressed about a lackluster macroeconomic picture Sinha pointed instead to the
nation's undoubted strengths. "India offers a vast reservoir of well-skilled
technical manpower, an abundance of natural resources and a well-developed
communication network," he boasted. "The country has liberalized in
practically all sectors and has developed a substantial degree of openness."
More's the pity, then, that the country has a demonstrated ability to shoot
itself in the foot whenever economic reform looks promising.
Lachlan Colquhoun is a Daily Deal correspondent based in Syndey.
http://www.thedeal.com

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

GM, Other U.S. Companies Blast Bush Move to Shield Steelmakers
2001-06-07 00:01 (New York)

     Washington, June 7 (Bloomberg) -- General Motors Corp. is
concerned that an investigation President George W. Bush ordered
of foreign steel in the U.S. may lead to import curbs, pushing up
prices for the cars and trucks it sells consumers.
     Stripmatic Products Inc., a Cleveland company with 30
employees that supplies brake components to GM and other
automakers, has a deeper worry: If it's forced to buy more
expensive U.S. steel, it may lose all its customers.
     ``If they put on import tariffs, I will lose my business to
overseas manufacturers,'' said Stripmatic President Bill Adler,
whose 55-year-old company imports low-grade stainless steel
exclusively from a French manufacturer.
     GM, the world's largest automaker, and Stripmatic were among
the U.S. steel-consuming companies that blasted Bush's Tuesday
order, warning it may cost money and jobs in the $37 billion U.S.
steel industry.
     ``Imported steel has the effect of keeping a dampener on
prices,'' said Bill Noak, a General Motors spokesman.
     Bush told the International Trade Commission, a U.S. agency,
to look into whether steel imports were harming domestic
producers, a step that may clear the way for remedies such as
tariffs, import curbs or an outright ban on the foreign products.
     The president responded to pressure from U.S. steelmakers
such as LTV Corp., Bethlehem Steel Corp. and Weirton Steel Corp.,
which have been lobbying for import protection since 1998, when a
flood of foreign metal sent steel prices and profits plunging.
     Since 1998, 18 U.S. steel companies, including LTV, the
country's second largest, filed for bankruptcy.

                      Pushing for Protection

     The U.S. industry has lost 80 percent of its jobs in the last
two decades, and steelmakers and steelworkers mostly blame
imports, which now take up about 27 percent of the U.S. market,
the world's largest.
     They charge that unfair trade practices, including government
subsidies that allow companies from South Korea to Brazil to sell
steel in the U.S. below the cost of production, have made it
impossible to compete on price.
     A metric ton of structural steel used in high-rise buildings
cost about $615 in the U.S. at the end of last year -- and $275 in
Russia, according to the International Cost Engineering Council, a
nonprofit group.
     Bush backed that contention when he said the U.S. industry
has been ``affected by a 50-year legacy of foreign government
intervention in the market.''
     ``All we've ever asked for is a fair and level playing
field,'' said Daniel Dimicco, president of Charlotte-based Nucor
Corp., a ``mini-mill'' that makes steel by melting scrap and was
the most profitable domestic steelmaker last year. ``That is the
message the president is sending, and we support it.''

                       8 Million Workers

     Officials from companies that consume steel in the U.S.
contend that such protection would cost the U.S. far more than the
steel industry would gain.
     About 8 million Americans are employed by steel-consuming
industries -- including auto and appliance makers, construction
companies and energy companies, according to the Consuming
Industries Trade Action Coalition, a group of steel consumers
including Caterpillar Inc., Procter & Gamble Co. and Enron Corp.
     Steel producers employ about 160,000 people, down from
800,000 20 years ago.
     An April study by the coalition examined the effect of steel
import quotas and tariffs and found that manufacturers using steel
would be forced to cut jobs because of higher costs. That would
result in an overall loss of between 19,000 and 32,000 jobs, while
protecting only about 3,700 steelworker jobs.
     Michael Fanning, a spokesman for Michelin North America, the
number two U.S. tire maker that also manufactures the B.F.
Goodrich and Uniroyal brands, said any move by the U.S. to add
tariffs or restrict imports ``will hurt the downstream users.''

                      No Domestic Suppliers

     ``We import a lot of high-quality steel from outside the
United States from companies in Germany, France, Japan, simply
because we can't get it in this country,'' Fanning said. ``We find
it disheartening that we would be penalized simply because we
can't get any domestic supplier.''
     The American Institute for International Steel, an
association of U.S. and foreign companies that support free trade,
said American steel companies themselves would be damaged by
import restrictions because they are among the largest importers
of foreign products.
     Domestic steelmakers imported almost a third of the 37.8
million tons of foreign steel brought into the U.S. last year, the
institute said. Most was in the form of ``slab'' -- raw steel --
or semi-finished products that were finished by U.S. companies.
     Bill Jens, owner of Ataco Steel Products Corp. of Cedarburg,
Wisconsin, whose 100-employee company annually sells $13 million
in lawn and garden implements, among other products, said Bush's
move is aimed at ``protecting companies that are really something
of a dinosaur.''
     ``They haven't been keeping up technologically with what's
been going on in the world, and all of a sudden we're going to be
forced to buy their steel at a higher price because they can't
keep up?'' he said. ``I don't think that's right.''

Pacific Hydro Bends With the Wind, Flows With Water (Update5)
2001-06-07 02:18 (New York)

Pacific Hydro Bends With the Wind, Flows With Water (Update5)

     (Closes stock price.)

     Melbourne, June 7 (Bloomberg) -- Pacific Hydro Ltd., the best-
performing stock in Australia's key index in the year to date,
hopes the westerly gales that buffet the southern coast will lift
its shares even higher.
     The Melbourne-based company plans to turn squalls into
electricity by building 114 windmills on the Victoria coastline.
It says the nation's biggest wind farm would provide enough power
for 200,000 households.
     After tumbling this week, Pacific Hydro shares rose 8.8
percent today, its biggest daily gain in almost six months. That
brings its increase in the past six months to 96 percent,
outpacing rivals on the S&P ASX 200 Index, and some investors say
it could keep rising.
     ``In a climate of higher energy prices, we like renewable
energy and this company is doing it very well,'' said Ian Huntley,
who holds Pacific Hydro shares among the A$44 million ($23
million) he manages at Huntley Investment Co. ``Looking at its
growth in revenue and earnings, it does very well whatever
business it's in.''
     Granted, Pacific Hydro isn't cheap. Even after this week's 15
percent slump, it trades at 72 times earnings -- almost twice the
average ratio on an index of local utility stocks. Earnings from
power stations in the Philippines, Australia and New Zealand may
not justify that high a valuation.
     ``They're probably the foremost experts in wind energy in
Australia -- management is very good,'' said Andrew King, whose
A$350 million of stocks at Investors Mutual Ltd. don't include
Pacific Hydro. Still, ``it's just a bit too high on valuation at
the moment,'' he said.

                         California

     Yet comparable companies elsewhere are even more expensive on
a price-earnings basis. Denmark's Vestas Wind Systems A/S, for
example, trades at almost 80 times earnings. Its shares more than
tripled last year.
     Managing Director Jeff Harding's ambition could see his
company build as many as 1,000 windmills, rivaling the largest
windmill owners like U.S.-based FPL Group Inc., Enron Corp., and
Iberdrola SA, Spain's second-largest utility.
     Besides its expansion plans, the company can also take
advantage of a new Australian law that raises the amount of
electricity the nation gets from renewable resources to 12 percent
from 10 percent. A wind farm takes only nine months to build
compared with a hydroelectric power station, which can take as
long as seven years.
     Commodity prices have cooperated in pushing up prices of so-
called green stocks like Pacific Hydro. The price of natural gas
more than quadrupled in the past year. Oil doubled since 1999. The
price of coal, used to produce 80 percent of Australia's
electricity, rose more than 50 percent in 12 months.
     In California, meantime, power shortages have crippled the
wealthiest U.S. state, boosting demand for alternative energy
sources like wind and water.
     ``People have seen what's happened to the energy sector in
the States,'' said Stuart Smith, an analyst at Merrill Lynch & Co.
``Even though (Pacific Hydro stock) has pulled back a lot, it's
still been a performer.''

                               Nepal

     Australians are hungry for energy. They are the fifth-biggest
consumers of electricity, lagging Norway and the U.S.
     Pacific Hydro's earnings may triple this year to A$18.5
million, helped by the start of its Bakun hydroelectric station on
the northwest Philippines island of Luzon, which almost doubled
the company's electricity generation.
     It plans to build another hydro station on the southern
Mindanao Island with joint venture partner Aboitiz Equity Ventures
Inc. Though a new Philippine law to allow more competition in the
electricity industry will drive down power prices, Pacific Hydro's
Harding said most of its output will be sold under long-term
contracts.
     Its next target country may offer even greater challenges. As
Nepal struggles to launch an inquiry into the massacre of its
royal family, Harding is awaiting the kingdom's decision on
whether to accept a bid to build two hydroelectric dams.
     ``Only one in 14 Nepalese has access to electricity, so there
is quite a demand for power within Nepal and northern India,''
Harding said. Because of rivers that run from the Himalayas, the
world's tallest mountain peaks, ``Nepal has the best hydro
resources in the world.''
     Pacific Hydro, which has risen 67 percent in the year to
date, rose 35 cents, or 8.8 percent, to A$4.32.

Metro
Council status quo for blacks Hispanic growth likely to affect white wards
Gary Washburn, Tribune staff reporter

06/07/2001
Chicago Tribune
North Sports Final ; N
1
(Copyright 2001 by the Chicago Tribune)

The Chicago City Council on Wednesday approved a blueprint for drawing new
ward boundaries that calls for maintaining the current level of
African-American representation in the council.
In practical terms, passage of the measure means that growth in the number of
Hispanic wards--something that is a foregone conclusion given new census
numbers that show explosive Latino population increases--is likely to come
out of the current total of white wards.
There now are 23 wards with majorities of white voters, 20 with
African-American majorities and seven Hispanic.
Because of a slight population decline among African-Americans and, more
importantly, a dispersion of population from historically black South Side
neighborhoods to other areas of the city, African- American aldermen feared
losing a seat.
But the ordinance passed Wednesday calls for a remap that "avoids
retrogression in the voting strength" of minorities protected by the federal
Voting Rights Act, a provision aimed directly at maintaining African-American
strength in the council.
"We are not going to get into a fight with Hispanics [and] we are not going
to give up any wards in this world or the world to come," declared Ald. Ed
Smith (28th), who represents a predominantly black ward on the West Side.
Despite the apparent victory for the council's black caucus, Ald. Dorothy
Tillman (3rd), one of its members, voted against the plan. She complained
that she is being denied an attorney to represent her as the remap process
begins to pick up steam.
Though the black caucus recently chose attorney Burton Odelson to represent
its interests, Tillman said she now has misgivings about the selection,
saying that Odelson is a conservative who has represented Republicans in the
past.
Ald. Richard Mell (33rd), chairman of the council's Rules Committee, rejected
Tillman's request to hire James Montgomery, a former city corporation
counsel.
Individual aldermen do not have the right to have representation funded by
the city, Mell asserted.
He suggested Tillman's concern has more to do with changes in her ward, which
has lost more than 17,000 residents and faces a potentially radical boundary
change, than with Odelson's politics.
Ald. Joe Moore (49th) and Ald. Michael Wojcik (30th) also voted against the
remap blueprint, objecting to a parliamentary maneuver used by the majority
to force consideration of the measure on Wednesday.
Wojcik's ward is one of those expected to be majority Hispanic in the new
map.
But the opponents were snowed under by a 44-3 vote.
Among other provisions, the blueprint also spells out the number of public
hearings to be held before a new map is drawn, mandates creation of an
Internet site where citizens can get information on the redistricting process
and requires a "redistricting impact statement" explaining how the new map
that will be drawn complies with the Voting Rights Act and state and federal
constitutions.
In other action, Mayor Richard Daley introduced a proposal calling for the
purchase of 60 percent of the electricity used in city buildings and other
municipal facilities from Houston-based Enron Corp.
Under a deal negotiated with the energy-provider, the city would reduce its
$50 million-a-year electric bill by about $3 million, officials said.
Commonwealth Edison Co., now the city's sole provider, would supply the
remainder of the city's electricity needs if the agreement is approved by the
City Council.
Officials in California have accused Enron and other energy providers of
limiting supplies to drive up prices there.
"We are more than well aware of the implications of California and the fact
that that Enron is involved in that market," said city Environment
Commissioner William Abolt. "We think that generally nobody is going to come
out of that with clean hands, from government to regulators to companies that
are supplying energy."
Enron has stood by its contracts with its customers to provide power at
agreed-upon rates, he said.
Under the proposed eight-year deal, the city's price would be locked in at a
guaranteed level initially and later would be tied to an independent
financial index.
Also on Wednesday, the City Council voted unanimously to prohibit racial
profiling by Chicago police and other law enforcement officers. Officials
believe Chicago is the first big city in the nation to approve such a measure.

PHOTO; Caption: PHOTO: Ald. Dorothy Tillman (3rd) says Wednesday she is being
denied a lawyer to represent her as the city redraws ward boundaries. Tribune
photo by Phil Greer.

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

Enron Plans to Challenge Power Regulator's Order, Paper Says
2001-06-06 23:24 (New York)

     Mumbai, June 7 (Bloomberg) -- The Indian unit of Enron Corp.
plans to challenge an order from the Maharashtra state power
regulator that prevents the company from seeking international
arbitration, the Business Standard said, without citing people.
     The regulator barred Dabhol Power Co., the Indian unit of
Enron, from seeking arbitration about its payment dispute with the
Maharashtra State Electricity Board until June 14, the paper said.
     Dabhol has decided to challenge the order in court on the
grounds that it is beyond the Maharashtra Electricity Regulatory
Commission's rights to bar the company from resorting to
arbitration, the paper said.
     Dabhol and the Maharashtra State Electricity Board, its only
customer, are in a dispute over power tariffs. The board stopped
buying power from Dabhol after the U.S. energy company took steps
to end a $3 billion power venture.

Commentary
Since when does rape equal justice?
Steve Chapman Steve Chapman is a member of the Tribune's editorial board

06/07/2001
Chicago Tribune
North Sports Final ; N
29
(Copyright 2001 by the Chicago Tribune)

The attorney general of California is very unhappy about the state's energy
crisis, and he has come up with the perfect solution. It involves a creative
type of punishment for Kenneth Lay, chairman of the Houston-based energy
company Enron. Though Lay has not been convicted of any crime, Bill Lockyer
says, "I would love to personally escort Lay to an 8-by-10 cell that he could
share with a tattooed dude who says, `Hi, my name is Spike, honey.' "
Let the record show that the chief law enforcement officer for the nation's
biggest state regards prison rape as a valuable feature of his correctional
system. Soft-hearted souls may lament the sexual victimization of jail and
prison inmates by violent sociopaths, but Lockyer's chief concern is that
there are some people who have yet to experience this form of justice.
It used to be that prison was feared because it meant a prolonged loss of
freedom, hard labor, separation from family and, sometimes, violence by
guards. But somewhere along the line, Americans got used to the idea that it
also involves sadistic sexual abuse with no one doing anything to stop it.
Why are we so nonchalant? We might be outraged that anti-social thugs are
getting away with horrific new crimes every day, under the very noses of law
enforcement. Instead, many people--Lockyer among them--have embraced the
proposition that the victims are getting only what they deserve.
One of the reasons this phenomenon gets little attention is that it's largely
invisible. Even critics can only make educated guesses about the scope of the
problem. But it's clearly large. A survey of seven men's prisons in four
states, published last year in Prison Journal, found that 21 percent of
inmates had been coerced or forced into sexual contact, with 7 percent
reporting they had been raped.
When Human Rights Watch did a confidential poll of prison guards in an
unnamed southern state, they estimated that one in five inmates were victims
of such abuse. Inmates said it was more like one in three.
Suppose we take a conservative estimate and say that one of every 10 inmates
suffers this misfortune. With more than 1.8 million men behind bars at any
given time, that means at least 180,000 inmates are forcibly violated every
year. And that's not counting what goes on in juvenile facilities. For
comparison's sake, in the entire United States, there were 124,730 reported
rapes of females in 1999.
How can sexual abuse possibly be regarded as an appropriate part of serving
time? Some of the victims are vicious thugs themselves. But many people in
prisons and jails were arrested for nonviolent offenses.
Many of us, if a close relative were found guilty of one of these crimes,
would think he should pay for his offense by losing his freedom for a long
while. But few of us would agree he deserves to be beaten, stabbed, sodomized
and infected with AIDS, which is what prison often means. If a judge were to
give a convict a sentence like that, it would be ruled cruel and unusual
punishment.
Lockyer might not have the stomach to actually watch one of the encounters
that he finds so amusing. One inmate interviewed by Human Rights Watch had
complained to guards after being raped. His assailant then beat him with a
combination lock--breaking his neck, jaw, collarbone and finger, dislocating
his shoulder, and giving him two serious concussions--before raping him
again. Afterward, the victim could read the word "Master," the brand of the
lock, on his forehead. Many inmates submit rather than risk being stomped to
a pulp.
Atrocities like this happen all the time, mainly because hardly anyone minds.
Authorities have no great incentive to take the problem seriously because
they generally can't be held liable for attacks. In overcrowded, understaffed
facilities, prevention may be impossible. Prosecutors, meanwhile, see no need
to seek punishment.
Treating prison rape like the crime it is would deter some attacks. Prisons
could also act swiftly to segregate the perpetrators from the rest of the
inmate population. The surest remedy is also the most expensive: Put all
prisoners in one-man cells, so they don't have to sleep with one eye open.
Or maybe we should just require all government officials with responsibility
for prisons and jails to spend a couple of nights a year in one of their own
facilities. Since you're already acquainted, Mr. Lockyer, you'll be rooming
with Spike.
----------
E-mail: schapman@tribune.com

GRAPHIC; Caption: GRAPHIC: Illustration by Dean Rohrer.

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

PPA in force, claims DPC
S Ravindran Mumbai

06/07/2001
Business Standard
3
Copyright (c) Business Standard

The Dabhol Power Company could continue billing the Maharashtra State
Eelctricity Board from its second phase, which was due to start operations on
June 7.
Sources close to DPC told Business Standard: "If MSEB had cooperated with
DPC, commercial production could have begun tomorrow. Under the PPA, they
would have been forced to buy this power."
"While MSEB contends that it has rescinded the PPA, DPC claims that it
continues to be in force. Under these circumstances, DPC will definitely
charge MSEB for the second phase power at some future date," sources added.
MSEB has stopped buying power from DPC. Meanwhile, lenders to DPC are yet to
arrive at a decision on the issue of the transfer notice being served to the
MSEB. "The lenders are yet to get back to DPC with their views on the
subject," sources said. This was one of the DPC executives' suggestions to
the lenders. The mothballing of the 1,444 mw second phase of the project was
also discussed. DPC executives also spelt out the differences between the
company and the Godbole panel to a consortium of Indian and foreign lenders.
"DPC representatives pointed out that there was a chasm between the Godbole
panel members and the company. The bone of contention is the plant load
factor (PLF) at which DPC will sell power to MSEB. DPC is keen on a PLF of 90
per cent which will bring down the tariff. The Godbole panel wants a much
lower offtake of power by MSEB," sources close to DPC told Business Standard
from Singapore.
The meeting was attended by Enron India managing director K Wade Cline, DPC
president and CEO Neil McGregor and representatives of Indian FIs and banks
like IDBI, ICICI, SBI. DPC executives will hold another round of talks with
the lenders tomorrow.

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

Calif Eyes Ending Access To Alternative Power Suppliers
By Jason Leopold
Of DOW JONES NEWSWIRES

06/06/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LOS ANGELES -(Dow Jones)- California utility regulators appear ready to vote
next week on a proposal to suspend the ability of large electricity users to
sign contracts directly with energy suppliers.
The move is called for in the February bill that put the state in the power
business, but its approval by the California Public Utilities Commission
would damp plans in the Legislature to reduce the burden on Edison
International (EIX) unit Southern California Edison by making large
industrial customers responsible for securing their own power.
"We're still trying to figure that out," said an aide to Assembly Speaker Pro
Tem Fred Keeley, D-Boulder Creek. "We don't know how to get around that right
now."
Keeley is expected to introduce legislation to shift the burden of rescuing
Southern California Edison to large businesses. Under the proposal, which is
also supported by Assembly Speaker Robert Hertzberg, customers that use 500
kilowatt-hours of power a month or more would pay a surcharge on their bills
to help Southern California Edison recoup its losses on wholesale power.
The so-called direct-access component - under those large users would buy
their power from suppliers - is the cornerstone of the Keeley plan, for which
Enron has been lobbying hard in recent weeks, according to several aides to
key legislators.
The Keeley plan is an alternative to the memorandum of understanding Gov.
Gray Davis signed with Southern California Edison two months ago. Under that
proposal, the state would buy Southern California Edison's power lines for
$2.76 billion and allow the utility to issue $2 billion in bonds backed by
ratepayers to recover $3.5 billion in net uncollected power costs.
That plan has run into snags in the Legislature, which must enact it into
law, and the PUC, which has been slow to rule on enabling measures.
One key Democratic Senator said the PUC's move to quash direct access is an
attempt to ensure a deal to rescue Southern California Edison doesn't pass
through the Legislature.
"The PUC has demonstrated it does not want SoCal Ed to remain solvent," the
senator said. "They have dragged their feet on several key issues they need
to address in order to make sure legislation to save the utility is never
heard."
A PUC spokesman didn't return calls for comment.
Direct-access was the key part of the state's 1996 deregulation law, giving
retail customers the opportunity to choose from a variety of energy suppliers
in an effort to lower their electric rates.
Commissioners Richard Bilas and Henry Duque said they support direct access
and would vote against any measure to reverse it.
"I would never vote against direct access," said Bilas, a Republican, who
authored the agenda item. Bilas said the item was amended by another
commissioner.
The measure could be held, because it might disrupt negotiations between the
Legislature and Southern California Edison, said PUC Commissioner Geoffrey
Brown, a Democrat.
The PUC may be looking to protect the state's interest as a power purchaser,
some legislative aides said.
The DWR's long-term power supply contracts cover the state's wholesale-market
power needs in 2002 and 2003. If large industrial customers were to sign
direct-access contracts, the DWR would lose them as customers and thus fail
to collect enough revenue to pay off the long-term contracts.
The agency could be stuck with a large surplus of electricity that it would
be forced to sell it on the open market at a loss. The market price of power
in the coming years is expected to be lower than what the state paid for
forward power in 2001.
Wholesale power prices plunged this week, and the DWR for the first time sold
excess power on the open market, according to Oscar Hidalgo, DWR spokesman.
Arnold Rosenthal, of Newport Beach-based Utility Resource Management Group,
an organization that represents more than 700 large electricity users in the
state, said state regulators are "looking to get us back into a mode where we
are held captive once again."
"The DWR is acting as this super utility," Rosenthal said. "What you're left
with is absolutely no choice. Instead, we'll be subjected to several large
rate increases."
Rosenthal said some of his San Diego clients have direct access deals. A
number of clients served by Southern California Edison want to sign
direct-access contracts to escape recent rate increases imposed by the PUC.
-By Jason Leopold, Dow Jones Newswires; 323-658-3874;
jason.leopold@dowjones.com

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


This is from a guy on our floor.  He's a summer intern...and this is his Tuesday morning story.  Incidentally I was standing directly in front of the old women picking out some green onions for my omelet when all hell broke loose.  I took about three steps back and wandered towards the kitchen in search of a fire extinguisher.  Didn't find one, and like Scott (the intern) was a bit disappointed in my reactions...ah well.

I don't usually send out a group email, but listen to this shit.  So I am sitting at work this morning minding my own business when all hell breaks loose.  It is about 630am, and most of the trading has subsided for the morning.  I decide to grab the first ham and cheese omelet from the women that are serving our breakfast this morning because who knows how long the food will last...today is a special day because we get a fresh cooked breakfast from a propane grill as opposed to the green eggs and ham that we are used to because no one wants to get up at 3am and cook a fresh breakfast for Enron employees, they usually cook it the night before. So, everyone on the floor is very excited and pumped up about the possibility of grabbing a nice breakfast without having the fear that later in the afternoon your ass would wreak havoc on you for eating the nasty green eggs.  So, I grab the first omelet and the crowd surges toward the two 70 year-old women at the grill.  Everyone is smiling, deciding whether or not they want ham or maybe they will get crazy and add salsa or something.  The next thing you know, straight out of a FOX tv show or "You've Gotta See This" episode...this old woman is engulfed in flames like the great fire of Chicago.  The propane tanks heating the stove exploded and the flames are high and wide, raising up to ten feet in height.  The place turns into a frenzy. Nobody can move, react, or anything.  Everyone is frozen watching this old woman(picture happy Gilmore's grandma) go up like an old Christmas tree.  A few seconds before this high school chemistry experiment, I was sitting on the first row right in the middle and I was staring at my two liquid display computer terminals and glancing at the sports ticker on ESPN2 on the 50inch Liquid FlatScreen TV that is directly above my desk. The old woman that went into flames is directly in front of me, about a literal three feet away and I am directly facing the inferno along with a co-worker who is catching the blunt of the heat of the flames. I don't save the old woman like most of you might have thought, I can't do anything but shout obscenities and wonder who the hell is going to jump in there and save this poor lady.  The old woman is yelling ,"Somebody get me outta here!"...yet we all continue to stare.....finally, someone grabs her arm and yanks her out of the blaze.  Who is this masked man, I have no clue.  However, I do witness Les from middle marketing doing his best Maurice Greene directly for the fire extinguisher of which he is the only one in the office that has a clue where it is. I see someone throwing a pitcher of egg yolk on the fire earlier, which is funny, if not for the fact that an old lady is missing half of her hair and her arms are about to blister up.  The blaze is extinguished after taking a hell of a toll on the old woman, ruining the flat screen tv that used to sit above me, and torching a bunch of cabinets and the backs of computer screens.  The alarm in our building 3 World Trade Center is screaming, and the smoke is enough to make even Polarek leave the area.  So, the fire departemnt comes and the old woman is now out of the building and on her way to the hospital.  Who knows what condition she is in, but all I know is I hope I am never around a bunch of vaginas(myself and the rest of us that did nothing) when I go up in flames someday.  Well, I have to get back to work because I have wasted about 20 minutes writing this drama.  Take care, Scotty

Enjoyable or what?
Give me a call and let me know what is up.

Bill
503-274-0502
503-887-3449 cell


David,

I think maybe clarifying "then go to the transaction search" with something
like " then click on the Transaction History tab at the top of the screen"
might be
helpful.

David Forster@ENRON
03/09/2001 10:54 AM
To: Scott Neal/HOU/ECT@ECT
cc:
Subject: Communication Error Message

Message as discussed.
---------------------- Forwarded by David Forster/Corp/Enron on 03/09/2001
10:59 AM ---------------------------

David Forster
03/01/2001 04:07 PM
To: Jay Webb/HOU/ECT
cc: Savita Puthigai/NA/Enron@Enron

Subject: Communication Error Message

Jay,

Here is the current communication error message:

Can you please replace the above paragraph as follows:

"YOUR TRANSACTION MAY OR MAY NOT HAVE BEEN SUCCESSFUL due to a communication
failure."
"To confirm whether or not your transaction was successful, please try to
login again and use the "Transaction History" function to see a list of all
your completed transactions.

If you have any questions or are not certain of the status of a transaction,
please contact us immediately on:"

Thanks,

Dave


----- Forwarded by Tana Jones/HOU/ECT on 12/11/2000 06:42 PM -----

	Bradley Diebner
	12/11/2000 05:43 PM

		 To: Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, Debbie
R Brackett/HOU/ECT@ECT, David Hardy/LON/ECT@ECT, Lesli Campbell/HOU/ECT@ECT,
Cynthia Clark/Corp/Enron@ENRON, Mary G Gosnell/HOU/ECT@ECT, Enron Europe
Global Contracts and Facilities, Enron Europe Global CounterParty, Stephanie
Sever/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT, Stacey
Richardson/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Adnan Patel/Corp/Enron@ENRON,
Claudia Clark/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Lisa
Lees/HOU/ECT@ECT, Juana Fayett/Corp/Enron@Enron, Jana Morse/Corp/Enron@Enron,
Trang Le/HOU/ECT@ECT, Paul Maley/LON/ECT@ECT, Sonya Clarke/LON/ECT@ECT, Lee
Munden/LON/ECT@ECT, Tim Davies/LON/ECT@ECT, Karen O'Day/NA/Enron@Enron, Tanya
Rohauer/HOU/ECT@ECT
		 cc:
		 Subject: EOL Credit Responses 12/05/00


Carlos,

Please look into your Black Marlin info and see if you can find anything on
this.  Thanks.

D
---------------------- Forwarded by Daren J Farmer/HOU/ECT on 12/29/99 06:57
AM ---------------------------

	From:  Stella L Morris                           12/28/99 05:55 PM

To: Daren J Farmer/HOU/ECT@ECT
cc: Howard B Camp/HOU/ECT@ECT
Subject: Revision - Black Marlin - meter 986782 for 8/98 - UA4

Revision - According to measurement, there is flow of 7,394 in 8/98, however,
there is nothing to indicate this is gas that was received on HPL in OSS.   I
checked MIPs and there is a measurement statement that supports the flow rate
of 7,394 MMBTu.

Daren is there a deal in CPR which may not have fed over to OSS?   I checked
OSS for the whole year of 1998 and there are no other deals in OSS.  It does
seem strange that this is the only month of flow.

Thanks, Stella


Karen,

Can you see the questions for RISI and refine them a bit?

Thank you
Monika