Attached is Mary Schoen's analysis of Gov. Davis' Executive Order on
expediting siting and maximizing output.

I have asked Mary to try and identify the # of MWs that may be impacted by
these actions.

Jim

----- Forwarded by James D Steffes/NA/Enron on 02/11/2001 02:49 PM -----

	Mary Schoen
	02/09/2001 03:58 PM

		 To: Steven J Kean/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, Leslie Lawner/NA/Enron@Enron, Robert
Frank/NA/Enron@Enron, Sandra McCubbin/NA/Enron@Enron, Jeffrey
Keeler/Corp/Enron@ENRON, Michael Terraso/OTS/Enron@ENRON, Stacey
Bolton/NA/Enron@Enron, Heather Mitchell/HOU/EES@EES, Robert
Frank/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Jeff
Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON
		 cc:
		 Subject: Summary and Very Brief Analysis of Governor Davis's 2/9/01
Executive Orders

Below is a brief summary of the five Executive Orders issued by Governor
Davis on 2/9/01.

For those of you that want the Cliff Notes Version:

These Orders appear to be an attempt to accomplish three things:

1.  Expedite Siting for New Powerplants and Expansions or Modifications of
Existing Powerplants
2.  Maximize Output and Minimize Outages at Existing Facilities
3.  Centralize Authority and/or Mitigate Issues Impacting Powerplant Siting
and Construction

The tone is both one of we feel your pain in the complexity of permitting
powerplants; and that we will tolerate no excuses for not running at full
capacity.  (ie; the carrot and the stick)

They also includes some targeted incentives to encourage powerplant operators
to sell their power under contract to the State Dept. of Water.

Some of the critical issues impacting the effectiveness of these orders will
be:

- How much capacity is truly "idling" and will be able to be brought back on
line or increase its output?
- Will the state be able to better manage air quality issues and create
flexibility within the framework allowed by the Clean Air Act in order to
positively change the air quality issues impacting power plant construction
and operation?
- How quickly can the accelerated permitting procedures be implemented and
how soon will we see movements in the market to increase new generation given
the other issues in CA?

We will continue to analyze the impacts of these orders, but wanted to get
information to you in a timely manner.

D-22-01  Increased Output/Expedited Siting Mandates

CEC exemption from siting requirements for increased output by existing power
generators.
- limited to less than 50MWs using existing installed capacity b/w
06/01-10/01/01

Expedited processing of applications for certification of existing thermal
powerplants that require retooling and a current license to operate.

Accelerated review from all agencies involved in the licensing of proposed
thermal powerplants.

Action by the State Water Resources Control Board  to insure wastewater
issues do not preclude thermal powerplants from operating.

Requirements for the State Dept. of Water Resources to purchase power from
powerplants using renewables and other resources that may currently have not
other market for their power.

Expires  12/31/01 unless extended

Analysis:

This Order is intended to take away the excuses for why some powerplants are
currently not operating or not operating at full capacity.  It does not waive
air quality requirements (they are addressed in a separate order).

D-23-01  Appropriate Maintenance and Efficient Operation Requirements

ISO Requirements:
- Require generators to submit planned outage schedules to the ISO
- Prepare a coordinated outage plan to be updated quarterly
- Identify generation maintenance criteria to be met by generation facilities
- Maintain records of any unplanned generation facility outages and provide
those records to Electricity Oversight Board
- Conduct independent audits of generation facilities that have fallen below
performance benchmarks est. by the ISO
- Consider seeking the authority under state law of federal regulation to
impose fines on those generation facility owners whose generation facilities
have fallen     below performance benchmarks est. by the ISO

Requires that the Electricity Oversight Board review the ISO Tariffs and
Protocols to identify any necessary revisions to increase the ISO's ability
to ensure adequate power during peak demand.

Instructs the CPUC to ensure that generation facilities still owned by
utilities are operated as required to maintain reliability.

Requires the Electricity Oversight Board to propose legislation to expand its
authority to issue audits of generation facilities that do not meet est.
benchmarks for availability and performance, and issue fines against those
plants, after a hearing.

Analysis:

Again, the tone of this order is that the state won't tolerate outages as an
excuse for not generating.  It is also an attempt to better manage planned
outages to prevent situations that happened last fall when too many plants
where off-line for maintenance at the same time.

D-24-01  Air Pollution Flexibility and Mitigation Measures

Mandates that local air districts modify emissions limits that limit hours of
operation in air quality permits to ensure that power generation facilities
that provide power under contract to the Dept. of Water Resources are not
restricted in their ability to operate.
- Requires air districts to require a mitigation fee for all applicable
emissions in excess of the previous limits
- If air districts do not comply, the Board (CARB?) shall impose
modifications on the permits in lieu of districts

The Board shall establish an emissions reduction credit bank using emissions
reductions from all available sources:
- Credits will be made available to powerplant peaking sources that need
emissions offsets in order to add new or expand peaking capacity for the
Summer Peak Season in 2001
- In the case of powerplants that agree to sell their power under contract to
the Dept. of Water Resources, CA will make available where necessary and
available the required emissions credits at up to a 50 percent reduction,
- In order to maximize the amount of electrical generating capacity,
emissions reduction credits for new generation capacity shall be provided to
facilities where necessary and available.
- Proceeds from the sales of these emission reduction credits shall be made
available to fund emissions reduction programs in the air district where the
new or expanded facility is located.

Expires 12/31/2001 unless extended

Analysis:

This order requires the air districts to modify permit limits on run hours
for air quality reasons by allowing those powerplants that sell to the Dept.
of Water to pay a mitigation fee and creates an emission reduction credit
bank available for use by other sources.  There are a lot of details that
remain to be clarified, including how the state is going to locate emissions
reduction credits where developers were unsuccessful.  However, it is a step
in the right direction by creating flexibility and beginning to drive
authority back to the state level.

D-25-01  Acceleration the Construction and Upgrading of Approved Powerplants

Expedites review and approval of post-certification amendments to increase
output from thermal powerplants by the Energy Commission.

Authorizes the Energy Commission to suspends the requirements of the statutes
and regulations that normally control post-certifications to the extent that
they impact prompt mitigation of this emergency.

Requires the Energy Commission to establish milestones for both initiation of
construction within one year of certification, and for the construction phase
of the project.  Failure to meet milestones without prior approval by Energy
Commission based on a showing of good cause shall constitute forfeiture of
the certification.

Expires 12/31/01 unless extended

Analysis

Again, no excuses for not getting your powerplant modifications approved and
completed in a timely manner.

D-26-01  Accelerating the Availability of New Generation Sources

Requires all relevant agencies shorten the review periods to 7 days for
required environmental impact documents prepared under CEQA for all
powerplants that are not subject to the Energy Commission (under 50MWs) and
that are proposed to be on line by summer 2001.

 Energy Commission shall expedite its licensing process in the following ways:
- Expedite processing of applications for peaking or renewable powerplants
for construction and operation by July 31, 2001.
-Peaking or renewable powerplants that have a current contract with the ISO
and can be online by July 2001 may also apply to be permitted by the Energy
Commission under the emergency siting process.
-Rules which provide a license for a simple cycle thermal powerplant within
four months, shall apply to any proposed simple-cycle thermal powerplant that
can be brought on line by August 31, 2002  and that have an application for
certification complete by Dec. 31. 2001.
-Under regulations for the expedited licensing of powerplants, emission
offset credits are not required at the time of filing an application for
certification
-The Energy Commission shall conduct a study of potential peaking power sites
in the state and prepare a report by 02/21/01  identifying those areas of the
state that would benefit from the installation of peaking powerplants to
augment supplies and ensure reliability through the summer of 2003.

IOUs must complete necessary interconnection studies within 7 days of receipt
of completed application.

Expires 12/31/01 unless extended.

Analysis:

This is an attempt to accelerate the permitting of smaller sources and
peaking units.


CALENDAR ENTRY:	APPOINTMENT

Description:
	Order 637 - Posting require. (Toby) 4102

Date:		7/7/2000
Time:		9:00 AM - 10:30 AM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Who is the interim appointee?

From: Jeff Dasovich on 01/04/2001 02:58 PM
Sent by: Jeff Dasovich
To: Jeff Dasovich/NA/Enron@Enron
cc: Alan Comnes/PDX/ECT@ECT, Angela Schwarz/HOU/EES@EES, Beverly
Aden/HOU/EES@EES, Bill Votaw/HOU/EES@EES, Brenda Barreda/HOU/EES@EES, Carol
Moffett/HOU/EES@EES, Cathy Corbin/HOU/EES@EES, Chris H Foster/HOU/ECT@ECT,
Christina Liscano/HOU/EES@EES, Christopher F Calger/PDX/ECT@ECT, Craig H
Sutter/HOU/EES@EES, Dan Leff/HOU/EES@EES, Debora Whitehead/HOU/EES@EES,
Dennis Benevides/HOU/EES@EES, Don Black/HOU/EES@EES, Donna
Fulton/Corp/Enron@ENRON, Dorothy Youngblood/HOU/ECT@ECT, Douglas
Huth/HOU/EES@EES, Edward Sacks/Corp/Enron@ENRON, Eric Melvin/HOU/EES@EES,
Erika Dupre/HOU/EES@EES, Evan Hughes/HOU/EES@EES, Fran Deltoro/HOU/EES@EES,
Frank W Vickers/HOU/ECT@ECT, Gayle W Muench/HOU/EES@EES, Ginger
Dernehl/NA/Enron@ENRON, Gordon Savage/HOU/EES@EES, Harold G
Buchanan/HOU/EES@EES, Harry Kingerski/NA/Enron@ENRON, Iris Waser/HOU/EES@EES,
James D Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES, James
Wright/Western Region/The Bentley Company@Exchange, Jeff Messina/HOU/EES@EES,
Jeremy Blachman/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Joe
Hartsoe/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Kathy
Bass/HOU/EES@EES, Kathy Dodgen/HOU/EES@EES, Ken Gustafson/HOU/EES@EES, Kevin
Hughes/HOU/EES@EES, Leasa Lopez/HOU/EES@EES, Leticia Botello/HOU/EES@EES,
Mark S Muller/HOU/EES@EES, Marsha Suggs/HOU/EES@EES, Marty Sunde/HOU/EES@EES,
Meredith M Eggleston/HOU/EES@EES, Michael Etringer/HOU/ECT@ECT, Michael
Mann/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, Mike D Smith/HOU/EES@EES,
Mike M Smith/HOU/EES@EES, mpalmer@enron.com, Neil Bresnan/HOU/EES@EES, Neil
Hong/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Paula Warren/HOU/EES@EES, Richard
L Zdunkewicz/HOU/EES@EES, Richard Leibert/HOU/EES@EES, Richard
Shapiro/NA/Enron@ENRON, Rita Hennessy/NA/Enron@ENRON, Robert
Badeer/HOU/ECT@ECT, Roger Yang/SFO/EES@EES, Rosalinda Tijerina/HOU/EES@EES,
Sandra McCubbin/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Scott
Gahn/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Sharon Dick/HOU/EES@EES,
skean@enron.com, Susan J Mara/NA/Enron@ENRON, Tanya Leslie/HOU/EES@EES, Tasha
Lair/HOU/EES@EES, Ted Murphy/HOU/ECT@ECT, Terri Greenlee/NA/Enron@ENRON, Tim
Belden/HOU/ECT@ECT, Tony Spruiell/HOU/EES@EES, Vicki Sharp/HOU/EES@EES,
Vladimir Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES, William S
Bradford/HOU/ECT@ECT, Mike D Smith/HOU/EES@EES, Donna
Fulton/Corp/Enron@ENRON, mjackso7@enron.com, psmith3@enron.com

Subject: Brief Summary of Today's Activities in California (at Least Thus
Far)

The Commission voted out the order 5-0, essentially as it appeared
yesterday.  Three key changes:
They clarified that the surcharge applies to Direct Access customers (but the
entire "rate freeze" structure remains intact for now).
The Commission reversed itself and chose not to adopt TURN's "netting out" of
gen revenues and CTC collections, and said instead that the Commission will
consider it as an option in the next phase (a move likely made in order to
lower chances of a successful utility appeal).
The Commission added to the decision language saying that it will study the
pros/cons of securitizating the utilities' power purchase costs.  They will
submit a report on the issue to the Governor and Legislature.
On this last point, wire reports are rampant about the possibility that
legislation will be introduced as early as today proposing to securitize the
utilties' power purchase costs.  This action has reportedly been the result
of discussions that occured through the night between the governor's office,
the utilities and the ratings agencies in reponse to the fact that the
decision issued by the PUC falls well short of what's needed to keep the IOUs
credit worthy and solvent.  As a result of those wires stories, the
utilities' stock has come back (Edison was down as low as 6.25 and is
currently at 10 7/8; PG&E was at 8 7/8 and is currently at 11 7/8).  We're
working with Sandi McCubbin, who heads-up our legislative activities in
California, to get more info and will report back.
The hearing was dominated by highly charged anti-generator, anti-marketer
rhetoric, which is likely to play a prominent role in the press accounts.
Only FERC was demonized more.
Each of the Commissioners, including the most recent "interim" appointee,
made strong statements regarding the undesirability of utility bankruptcy.
The Commission left open the possibility of "doing more" at their next
meeting (two weeks from today), which means the negotiations with the
utilities and ratings agencies are likely to continue. And if an agreement is
reached, it could end up on the next agenda.


---------------------- Forwarded by Mary Fischer/HOU/EES on 07/31/2001 11:00 AM ---------------------------

Sonya City
07/30/2001 05:15 PM
To:	Mary Fischer/HOU/EES@EES
cc:	Felecia Fitzgerald/EFS/EES@EES
Subject:	2Q E-schedules


FYI.  Please make necessary changes to the form of guaranty attached to the Mahonia/ENA confirm to change the party to whom it is addressed from chase to Mahonia.  Se my marked version I sent to Clem.  Thanks

 -----Original Message-----
From: 	Koehler, Anne C.
Sent:	Wednesday, September  26, 2001 5:23 PM
To:	Abrams, Clement
Subject:	RE: Enron corp Guaranty for Mahonia deal

Clem,

I noted that the version you sent me was addressed to The Chase Manhattan Bank.  Actually, we are giving the Guaranty to Mahonia Limited.  Attached is the correct form of the Guaranty.

 -----Original Message-----
From: 	Abrams, Clement
Sent:	Wednesday, September  26, 2001 3:49 PM
To:	Koehler, Anne C.
Cc:	'philip.levy@chase.com'
Subject:	RE: Enron corp Guaranty for Mahonia deal

Anne,

I have attached the marked draft of the Enron Corp. guarantee reflecting the changes requested by Philip Levy.  Most of the changes are simply definitional in nature.  Please call me if you have any questions.

Clement

 << File: gty3240.doc >>
 -----Original Message-----
From: 	Koehler, Anne C.
Sent:	Wednesday, September 26, 2001 1:23 PM
To:	Abrams, Clement
Subject:	Enron corp Guaranty for Mahonia deal

Please see attached.  thanks << File: ENRON CORP guaranty.doc >>


The attached file contains our daily volume requirements for   3/31 thru 4/3
.    There are two worksheets:  The one labelled with today's date contains
the
volumes that we need at each of the delivery points indicated.   The
schedulers
will want to check this sheet to see how much gas is needed at a specific
point.    The AGL volumes are not current and should be ignored.

The sheet labelled 'Daily Change' shows the change (increase +/decrease -) in
the requested daily volume relative to a prior value.  For the current gas
day,
the change is an intra-day change and is calculated using the previous day's
volume request for the current day (e.g., If the current gas day is 3/28, then
the change is computed with respect to the 3/27 request for 3/28).  For
tomorrow's gas day and any subsequent ones shown, the change is computed using
the First-of-the-month volumes requested for those days.  (e.g., If today is
3/28, then the change for 3/29, 3/30, etc. is computed with respect to the
first-of-the-month volumes for those days.)   This sheet should be useful in
determining prices for daily changes in gas volumes that we take or turn back.

Doug Kinney
Ph:  703-561-6339
Fax:  703-561-7317

 - 03-31-00daily volsAM.xls


Gary,

1.  Correct
2.  Global tech drove and directed the PRC (performance review committee) for
all of it's employees.  Enron ranks all of it's employees 2 times a year.
The employees are examined and given feedback on their performance.  It is a
very lengthy process but it is very fair and insures and identifies excellent
performance.  The criteria for the rankings comes from a person's
accomplishments, characteristics and customer feedback from numerous
sources.  It is all on computer and when we discuss a persons performance and
ranking, that feedback (primarily from the business unit) is a key driver.
Plus, there are business unit reps on the PRC.
3.  I guess the way i would describe it would be that on every major
expenditure and project, the commercial people involved helped drive the
process as well as our group looking at it the same way.  An example would be
that traditionally any IT group or technologist is in love this the latest
and greatest technology.  and could look at embedding a new system in the
company because it is the latest technology and is very cool.   I would ask
what commercial function does it perform and how does it give us a
competitive advantage.  It was a very customer driven (internal and external
customers) process.  It was also a mind set and paradigm shift internally
within the group because they started looking at themselves adding to the
bottom line rather than simply a cost center.

I hope that helps.

Sincerely,
Mike

"Gary Anthes" <Gary_Anthes@computerworld.com> on 10/24/2000 03:09:48 PM
To: Mike.McConnell@enron.com
cc:
Subject: Re: One more

Hi Mike, three more questions. I hope I'm not wearing out my welcome.

1. Is Philippe Bibi spelled correctly?

2. You said, "When it came to the review process itself, Global Technology
ranked all the employees and peers but the business unit had the greatest
influence on where the person actually ranked and was rated." I may not have
gotten this down correctly, but I don't quite understand it. Are you saying
that
IT basically just lists the people but the business units actually rate them?

3. When you refer to taking a "commercial" view of technology, what do you
mean
exactly and how is that new?

Thanks again.

Regards,
Gary Anthes

Gary H. Anthes, Editor at Large
Computerworld  (www.computerworld.com)
1331 Pensylvania Ave. NW;  Suite 505
Washington, D.C. 20004
gary_anthes@computerworld.com    ganthes@mba1974hbs.edu
202-347-0134 (voice)   202-347-2365 (fax)


Thanks


For extra credit....
If the company is worth 150% more under management A rather than 50% more,
does your answer change?

"Eva Pao" <epao@mba2002.hbs.edu> on 05/11/2001 05:13:59 PM
Please respond to <epao@mba2002.hbs.edu>
To: <John.Arnold@enron.com>
cc:
Subject: RE: try this one...

will you do all of my homework?

-----Original Message-----
From: John.Arnold@enron.com [mailto:John.Arnold@enron.com]
Sent: Friday, May 11, 2001 8:41 AM
To: epao@mba2002.hbs.edu
Subject: Re: try this one...

i'll pay a grand total of 0

"Eva Pao" <epao@mba2002.hbs.edu> on 05/10/2001 05:15:59 PM

Please respond to <epao@mba2002.hbs.edu>

To:   <jarnold@enron.com>
cc:
Subject:  try this one...

 Please read the following problem very carefully, and write in a number at
the end.  You should be ready to defend your answer.  Only a number is
allowed, not an algebraic equation.

Acquiring a Company

     In the following exercise you will represent Company A (the acquirer),
which is currently considering acquiring Company T (the target) by means of
a tender offer.  You plan to tender in cash for 100% of Company T's shares
but are unsure how high a price to offer.  The main complication is this:
the value of Company T depends directly on the outcome of a major oil
exploration project it is currently undertaking.  Indeed, the very
viability
of Company T depends on the exploration outcome.  If the project fails, the
company under current management will be worth nothing--$0/share.  But if
the project succeeds, the value of the company under current management
could be as high as $100/share.  All share values between $0 and $100 are
considered equally likely.  By all estimates, the company will be worth
considerably more in the hands of Company A than under current management.
In fact, whatever the ultimate value under current management, the company
will be worth fifty percent more under the management of A than under
Company T.  If the project fails, the company is worth $0/share under
either
management.  If the exploration project generates a $50/share value under
current management, the value under Company A is $75/share.  Similarly, a
$100/share value under Company T implies a $150/share value under Company
A,
and so on.

     The board of directors of Company A has asked you to determine the
price
they should offer for Company T's shares.  This offer must be made now,
before the outcome of the drilling project is known.  From all indications,
Company T would be happy to be acquired by Company A, provided it is at a
profitable price.  Moreover, Company T wishes to avoid, at all cost, the
potential of a takeover bid by any other firm.  You expect Company T to
delay a decision on your bid until the results of the project are in, then
accept or reject your offer before the news of the drilling results reaches
the press.

     Thus, you (Company A) will not know the results of the exploration
project
when submitting your price offer, but Company T will know the results when
deciding whether or not to accept your offer.  In addition, Company T will
accept any offer by Company A that is greater than the (per share) value of
the company under current management.  Thus, if you offer $50/share, for
instance, Company T will accept if the value of the company to Company T is
anything less than $50.

     As the representative of Company A, you are deliberating over price
offers
in the range of $0/share (this is tantamount to making no offer at all) to
$150/share.  What price offer per share would you tender for Company T's
stock?

     $______ per/share


** Proprietary **

Green Bay, WI:
Green Bay Packers football practice was delayed on Wednesday for nearly two hours.
One of the players, while on the way to the locker room happened to look
down and notice a suspicious looking, unknown white powdery substance on the practice field. Head Coach Mike Sherman immediately suspended practice while the FBI was called in to investigate.
After a complete field analysis, the FBI determined that the white substance unknown to the players was actually the goal line.
Practiced resumed when FBI Special Agents decided that the team would not likely to encounter the substance again.


-----Original Message-----
From: christinehauk@txu.com [mailto:christinehauk@txu.com]
Sent: Monday, November 26, 2001 9:45 AM
To: Buss, Jd
Subject: pooling contract template

(See attached file: Line X Pool Contract.doc)


SORRY - I was out when i normally do this and i forgot about it.


We have a presentation planned for April 19th at the University of Oklahoma
for the JC Penney leadership group and the Energy
Management students. We plan on giving a "panel discussion" for the students
that will be followed by a social event. I would like for all
of you to be on the panel fielding a variety of questions from the group
regarding Enron. Please look on your calendars and let me know
your availability as soon as possible so we can book this event. Here is a
tentative schedule:
  APRIL 19th
  Participant arrival - 3:00pm. ( Location TBD)
  Student arrival- 4:00pm.
  Presentation- 4:00-5:30pm
  Social- 6:00-8:00pm. ( Cowboy Rodeo)

Thank you and I look forward to hearing from you.
      George Hope


Stephanie:  The fax that you gave to me with this file states that the CP
wants to change jurisdiction "back to New York."  I don't see a prior draft;
only a blackline against a Weyerhaeuser Company LImited document, the latter
ISDA having been executed in June, 2000.  Does his question refer to that
executed master?
If so, please let me know what we agreed to.  Thanks.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com


USA: Enron worker warned execs on accounting - lawmakers.
Reuters English News Service, 01/14/2002

USA: Enron says to delay release of trading unit sale.
Reuters English News Service, 01/14/2002

USA: Lawmaker sees insider trading "evidence" at Enron.
Reuters English News Service, 01/14/2002

USA: Senate banking committee says sets hearing on Enron.
Reuters English News Service, 01/14/2002
USA: Former Enron CEO Skilling shorted competitor's stock.
Reuters English News Service, 01/14/2002
Source: Buyer of Enron's power trading division to share profits with Enron and creditors
Associated Press Newswires, 01/14/2002

At Enron, Ignorance Was Bliss
Forbes.com, 01/14/2002
Dabhol Power on the verge of shutting operations
Business Standard, 01/15/2002

BG Remains In Talks With Enron For Indian Upstream Assets
Dow Jones International News, 01/14/2002
POINT OF VIEW: The Enron Saga Reaches A Whole New Level
Dow Jones News Service, 01/14/2002

TALES OF THE TAPE: Energy Traders Hammer Out Debt Fix
Dow Jones News Service, 01/14/2002

Rhonda`s Roundtable
CNNfn: Market Coverage - Morning, 01/14/2002

_________________________________________________________________________

USA: Enron worker warned execs on accounting - lawmakers.

01/14/2002
Reuters English News Service
(C) Reuters Limited 2002.

WASHINGTON, Jan 14 (Reuters) - An Enron Corp. employee warned the energy giant's top executive in August 2001 about potential problems with how it accounted for certain transactions, Congressional investigators said on Monday.
The unidentified employee wrote Enron Chief Executive Kenneth Lay raising several areas of concern, including ownership interests in certain partnerships, how accountant Andersen treated partnerships on Enron's books and the potential impact on Enron's financial statements, Reps. Billy Tauzin and James Greenwood said.
The employee described a "veil of secrecy" around some of the partnerships in question, the lawmakers said in letters to Enron and its auditor Andersen seeking more information.
On Oct. 16, Enron reported its first quarterly loss in over four years, taking a $1.2 billion charge against shareholder equity relating to dealing with partnerships run by then Enron Chief Financial Officer Andrew Fastow.

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

USA: Enron says to delay release of trading unit sale.

01/14/2002
Reuters English News Service
(C) Reuters Limited 2002.

NEW YORK, Jan 14 (Reuters) - Attorneys for Enron Corp. , the bankrupt energy company, said on Monday they will delay the release of details about Enron's trading unit sale to UBS AG until 11 p.m. EST.
Enron on Friday said it would sell a controlling stake in its key energy trading unit to UBS Warburg, the investment banking unit of Switzerland's largest bank. It said at the time it would release details of the sale at 2 p.m. EST on Monday.
Attorneys for Weil Gotshal and Manges didn't disclose reasons for the delay, which Enron said would be posted on its Web site, www.enron.com, and on the Web site of the U.S. Bankruptcy Court for the Southern District of New York, which is adjudicating Enron's bankruptcy case.

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

Enron Gets No Cash Upfront In Deal With UBS Warburg
By Kathy Chu and Carol S. Remond

01/14/2002
Dow Jones News Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Although the deal between Enron Corp. (ENE) and UBS Warburg (U.UBS) has yet to be finalized, details are beginning to emerge.
Under a plan to revive Enron's energy-trading operations, UBS will acquire 100% ownership of the bankrupt company's core business. Meanwhile, Enron and its creditors will get 33% of the new business' pretax profits for at least two years, people familiar with the matter said.
Enron will get no cash upfront.
"We got the best that the best people could get," Enron lawyer Martin Bienenstock said Friday at a court hearing in which the deal was announced.
Under the proposed 10-year plan, UBS will have the option to reduce and eventually to eliminate payouts to Enron after two years.
UBS may get an option to reduce profit-royalty payments to Enron to 22% in the third year, 11% the year after that, and eventually down to nothing, according to people familiar with the deal.
But if the Swiss financial institution doesn't exercise its options by the end of the fifth year, Enron may get an incremental increase in the energy-trading operation's profits - up to 45% by the end of the agreement.
Also under the agreement, UBS is expected to pay rent on Enron's Houston office space and to hire most of the company's energy-trading employees. Jeffrey McMahon, Enron's chief financial officer, has said that the unit employs between 400 and 1,000 workers, including traders and marketing staff.
-By Kathy Chu; Dow Jones Newswires; 201-938-5392
kathy.chu@dowjones.com

(Carol S. Remond contributed to this report.)

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

USA: Lawmaker sees insider trading "evidence" at Enron.

01/14/2002
Reuters English News Service
(C) Reuters Limited 2002.

WASHINGTON, Jan 14 (Reuters) - The ranking Democrat on the House Energy and Commerce Committee said on Monday there was "pretty strong evidence" of insider trading as well as false accounting in the fall of the energy-trading giant Enron Corp.
Rep. John Dingell of Michigan, whose committee is one of those investigating Enron , spoke on CBS television's "The Early Show."
"There's pretty strong evidence of insider trading," at Enron, Dingell said, adding that there was "clear evidence of failure to file honest and correct annual reports" required by the Securities and Exchange Commission.
"There may be a number of other things here which were going on, including possible insider trading and possible misuse of insider accounts," the lawmaker continued.
"False accounting appears to be a very major problem, and it appears that both Enron and the accounting firm were involved in this matter."
Andersen, Enron's accounting firm, has admitted that it destroyed a number of Enron documents.
Spokesmen for Enron and Andersen could not immediately be reached for comment.
Thousands of employees lost their pensions and life savings in the downfall of Enron last year after the company acknowledged several hundred million dollars of previously undisclosed liabilities. The company filed for bankruptcy on Dec 2.
Some Enron shareholders have filed a lawsuit accusing a group of 29 Enron executives and directors of "unlawful insider trading" and misleading the investing public.
Several congressional committees are investigating Enron's demise, and some lawmakers on those committees have said they want to probe whether Enron employees and shareholders were deceived. The Justice Department and the Securities and Exchange Commission are also investigating.
Rep. Henry Waxman, a California Democrat, wrote to Enron Chairman Kenneth Lay over the weekend to ask him to explain why he sent out optimistic e-mails to Enron employees in August about the company's prospects.
Dingell is one of 188 House members who received campaign contributions from Enron. The donations to Dingell's campaign totaled $9,000 since 1989, according to the Center for Responsive Politics, a watchdog group.

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

USA: Senate banking committee says sets hearing on Enron.

01/14/2002
Reuters English News Service
(C) Reuters Limited 2002.

WASHINGTON, Jan 14 (Reuters) - The powerful Senate Banking Committee said on Monday it will hold a Feb. 12 hearing on Enron Corp., the energy trading giant whose bankruptcy filing last year threw thousands out of work, devastated investors and raised questions about its accounting practices.
Banking, Housing and Urban Affairs Committee Chairman Paul Sarbanes, a Maryland Democrat, said the hearing will focus on "accounting and investor protection issues surrounding the problems with Enron Corporation and other public companies."
The Houston, Texas-based company, once ranked No. 7 on the Fortune 500 list of large corporations, is being probed by five other congressional committees, the market-regulating Securities and Exchange Commission and the Labor Department. The Justice Department has launched a criminal probe of Enron.
The committee said Sarbanes has invited five former chairmen of the Securities and Exchange Commission to testify.
The following former chairmen of the SEC have been invited to testify: Roderick Hills (1975-77); Harold Williams (1977-81); David Ruder (1987-89); Richard Breeden (1989-93); and Arthur Levitt (1993-2000), the committee said.
Once the world's largest energy trader, Enron slid in mere weeks late last year from Wall Street stardom to making the largest bankruptcy filing in U.S. history on Dec. 2. Its downfall threw thousands out of work and devastated investors.
The episode sapped the life savings of many Enron employees whose 401(k) plans were heavily invested in Enron stock, while top executives allegedly pocketed fat profits by selling ahead of a dizzying plunge in the share price.

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

USA: Former Enron CEO Skilling shorted competitor's stock.

01/14/2002
Reuters English News Service
(C) Reuters Limited 2002.

NEW YORK, Jan 14 (Reuters) - Jeffrey Skilling, the former chief executive of Enron Corp. , sold short AES Corp.'s stock last summer in a bet that the competing power company's share price would fall, his spokeswoman said on Monday.
Skilling's spokeswoman said he decided to short the stock after reading a newspaper article that reported AES would be hurt by Brazil's weakening currency. AES, based in Arlington, Virginia, has a significant power business in Brazil.
"He was well aware of what a challenging environment Brazil was for companies at that time," said spokeswoman Judy Leon.
Skilling, however, did not trade on any inside information he may have received during his job as CEO of Enron, his spokeswoman said. She declined to discuss specifics of the trade, including how much money was involved.
"We're not commenting on his personal finances," Leon said.
The trade was initiated on Aug. 24, or about 10 days after Skilling resigned as Enron's president and CEO, according to the Wall Street Journal, which first reported the short sale.
The Wall Street Journal said the trade could have made Skilling a profit of more than $15 million, depending when he closed out the trade, since shares of AES fell steadily in the weeks after he shorted the stock. Indeed, on Sept. 26 shares of AES dropped almost 50 percent after it warned it would fall well short of 2001 earnings estimates.
Shares of other energy companies also fell during the period.
Skilling - who along with other past and present Enron executives is facing shareholder lawsuits because of the company's collapse - has denied any wrongdoing in Enron's spiral into bankruptcy.
Skilling joined Enron in 1990 after leaving McKinsey & Co.'s energy czz Co.'s energy czz.

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

Source: Buyer of Enron's power trading division to share profits with Enron and creditors
By ALAN CLENDENNING
AP Business Writer

01/14/2002
Associated Press Newswires
Copyright 2002. The Associated Press. All Rights Reserved.

NEW YORK (AP) - The Swiss investment bank that is buying Enron Corp.'s power trading business will share a third of its profits with Enron and its creditors, a source familiar with the situation said Monday.
The plan, being presented in bankruptcy court, also calls for UBS Warburg to purchase the unit without paying any cash up front, said the source, who spoke on condition of anonymity.
The terms were expected to be made public Monday afternoon in U.S. Bankruptcy Court.
Representatives of UBS Warburg and Enron didn't immediately return telephone calls seeking comment Monday.
Enron and its creditors will get 33 percent of the new business' pretax profits for at least two years, the source said. Stamford, Conn.-based UBS Warburg, a division of Switzerland's UBS AG, will have the option of buying one-third of Enron's stake after three years, and to buy the rest of its stake in subsequent years.
Enron collapsed late last year amid revelations of complex partnerships used to keep billions of dollars in debt off its books and mask financial problems so it could continue to get cash and credit to run the trading business.
UBS Warburg won the bidding Friday for the trading operation, beating out rival suitor Citigroup Inc., a large Enron creditor. The deal must be approved by Bankruptcy Judge Arthur J. Gonzalez; a hearing is set for Friday.
Enron's energy trading business generated about 90 percent of the company's $101 billion in revenue in 2000. The deal does not include existing contracts Enron has to supply power, valued at between $6 billion and $7 billion.
Trading of Enron shares, which sold for $83 a year ago but have changed hands at no higher than $1 since December, were halted Friday and Monday on the New York Stock Exchange for the sale announcement. UBS' U.S.-traded shares fell 44 cents to $49.51 Monday morning on the NYSE.
Before its collapse late last year, Enron was the world's largest energy merchant and the nation's seventh-largest company by revenue. Enron differed from competitors in its penchant for complex bets on everything under the sun - advertising space, broadband, the weather, paper and more than 1,000 other products.

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

Top of the News
At Enron, Ignorance Was Bliss
Dan Ackman, Forbes.com, 01.14.02, 8:50 AM ET

NEW YORK - What did he know and when did he know it?

This is the question famously asked about President Nixon and Watergate. It will now be asked about Enron. It is being asked about President George W. Bush. But it will also be asked more pointedly, for now, about Enron Chairman Kenneth Lay; its briefly serving chief executive, Jeffrey Skilling; and their top executives.
Over the weekend, Treasury Secretary Paul O'Neill and Commerce Secretary Donald Evans said they had not told the president about calls from Lay that alerted them to Enron's impending doom. They also said they had done nothing to bail out the ailing energy trader after its president, Greg Whalley, had asked a senior Treasury official to help arrange bank loans in late October and early November.
O'Neill said took he two calls--one at his home on Sunday, Oct. 28, the other at his office on Nov. 8 or 9--from Lay. Mr. Lay offered "a heads-up" about the corporation's credit crisis but asked for nothing, O'Neill said.

"I didn't think this was worthy of me running across the street and telling the president," Mr. O'Neill told Fox News on Sunday. "I frankly think what Ken told me over the phone was not new news."

Not news? If Enron was too far gone for help at this point, Enron certainly wasn't admitting the fact.

Indeed, at this point, Enron was in feverish negotiations with Dynegy, its smaller rival, about a buyout. Enron, to this day says a merger at that date would have been fruitful and is suing Houston-based Dynegy for backing out of it.

In late October, Enron, also based in Houston, was still borrowing heavily. On Oct. 25, it said it had drawn $1 billion from banks against its existing unsecured credit lines. On Nov. 1, it announced that J.P. Morgan Chase and Solomon Smith Barney, a unit of Citigroup, had agreed to lend it another $1 billion in secured credit.

On Oct. 29, Lay called Evans to ask about reviews of Enron's business by credit agencies, and Lay did ask for help. Evans said he did nothing to assist Lay or Enron, but also said Lay did not make him aware of the full story.

"When I was talking to Ken I wasn't thinking about bankruptcy," Evans said in an interview with NBC's Meet the Press. "I was thinking maybe their credit rating would be dropped some ... but it wasn't the crisis yet that ensued some 30 days later." Evans said he was not told any information that had not already been made public.

In other words, what O'Neill said was old news, Evans said was still an unfolding saga. Enron, for its part, was still, it appears, spinning a happier story to creditors and possible merger partners.

Unlike O'Neill, Evans said he did inform the White House--not the president himself but Chief of Staff Andrew Card Jr. about the call. He also said he generally discussed Enron's problems with President Bush several times in November and December. Evans told Bush "how sad it was to see what was happening to that once great company," but he omitted mention of Lay's calls.

Evans said he never considered doing a favor for Lay. "If I had stepped in, I think it would have been an egregious abuse of the office of secretary of commerce," he said on Meet the Press.

It is not clear what kind of help Evans might have provided. He might have offered a subtle nudge to bankers or credit agencies. Evans could possibly have bought the company some time, if nothing else.

But the irony here is that Enron was so politically connected, and its political connections so well known, that any effort to bail out the company in November or December of 2001 would have been politically impossible, even assuming it would have been sound policy. Enron was too hot to handle, at least in any public way.

Enron's demise, however, does not seem to have caused a ripple in the economy or even the energy sector, beyond its devastating effect on Enron's employees and retirement plan members, whose savings were wiped out with the deflation of Enron's shares. Enron's demise has also affected Houston's cultural community, which Enron helped fund. But the fact that the company--the nation's seventh largest, according to its claimed revenue--could file for bankruptcy and cease its most lucrative operations without wider effect suggests how economically inconsequential Enron was all along.

Enron did have an impact in the political sector. Nearly half of the current members of the House of Representatives and about three-quarters of all senators received contributions from the company. Enron has contributed a total of $5.7 million to both political parties since 1989, 73% to Republicans, according to the Center for Responsive Politics.

Lay and other Enron employees were among the president's largest political benefactors. They doled out $623,000 over the course of his political career, according to another group that favors an overhaul of campaign finance, the Center for Public Integrity.

While Enron got no help from the government on its death bed, its seeding of the nation's political system no doubt bore fruit along the way. Enron was tight with politicians and with Wall Street, whose analysts almost universally backed the company even after Lay was placing calls to Cabinet officers. As a result, in both the financial community and in the political community, few questions were asked during Enron's rise.

Dabhol Power on the verge of shutting operations
S Ravindran Mumbai

01/15/2002
Business Standard
2
Copyright (c) Business Standard

The cash-strapped Enron-promoted Dabhol Power Company (DPC) is on the verge of shutting its operations in India.
Close on the heels of handing out pink slips to about 200 of its employees in the country last month, it may now have to lay off its support staff which had been retained as consultants. DPC has already shut its Delhi office and is now taking preliminary steps to close its Mumbai office.
"We had retained a core team after the last round of lay offs. For the last few months, we have not paid their salaries. But, it is very difficult to say if the core team will be asked to go at this point of time. We have also asked employees in the Mumbai office not to attend work as we are not in a position to pay even the electricity bills," a DPC spokesman said.
DPC may even lay off the security personnel at the 2,184 mw project site at Ratnagiri district in Maharashtra. The project site has about 300 security personnel.
"Since the security of the assets is essential, withdrawing the already insufficient security staff can only be the last resort. But, if immediate funding is not forthcoming, even that might happen," the spokesman added.
DPC has squarely put the blame for the present state of affairs on the default on bill payments by the Maharashtra State Electricity Board (MSEB) and the refusal by the lenders to use the existing DPC funds or infuse fresh funds.
DPC executives say that the lenders had at their last meeting in Singapore informally agreed to release funds in the trust and retention account, but have not done so till date.
The trust and retention account, with around $8 to $10 million funds, is being operated by the Bank of America. DPC cannot touch this money without the consent of the lenders.
Enron, General Electric and Bechtel, which hold a combined stake of 85 per cent in DPC, have decided to exit the project following a payments dispute with MSEB. Tata Power, BSES, Shell and the Gas Authority of India Ltd are in the fray for acquiring their stake.

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

BG Remains In Talks With Enron For Indian Upstream Assets
By Michael Wang
Of DOW JONES NEWSWIRES

01/14/2002
Dow Jones International News
(Copyright (c) 2002, Dow Jones & Company, Inc.)

LONDON -(Dow Jones)- U.K. oil and gas concern BG Group PLC (BRG) said Monday it remained in talks with Enron Corp. (ENE) to renegotiate a $388 million deal to acquire the financially-stricken U.S. company's upstream assets in India.
"We are continuing to negotiate a new deal with Enron," said BG spokesman Robin O'Kelly.
Johan Zaayman, a spokesman at the Houston-based Enron which recently filed a Chapter 11 bankruptcy petition, said "we are still trying to iron out the details." He declined to elaborate.
The two sides have been forced to rework the original transaction, signed Oct. 3, when BG missed a Dec. 20 deadline to clinch a separate, but related, agreement with Indian partners on management rights to three offshore oil and gas fields.
Since late December, BG has been in separate negotiations with Enron and state-owned Indian oil and gas company Oil and Natural Gas Corp., or ONGC, in a bid to salvage a major expansion program in the sub-continent.
O'Kelly wouldn't say when BG last talked with Enron and wouldn't be drawn on a likely date when the transaction will be re-signed.
BG has faced acute embarrassment having thrice failed to meet self-imposed deadlines on resolving the thorny issue of operatorship, or day-to-day management, of the Panna, Mukta and Tapti fields with ONGC.
ONGC holds a 40% stake in the fields and BG is aiming to acquire Enron's 30% interest and inherit its operatorship of the assets. Indian petrochemicals company Reliance Industries Ltd. owns the remaining 30% of the three fields.
A source close to the talks denied BG is trying to take advantage of Enron's financial problems and renegotiate a sweeter deal.
"If we get this deal with Enron at a lower price, than that's a bonus," the source said. "We're still very happy with $388 million (as the price tag)."
Nevertheless, O'Kelly expressed concern that with Enron in Chapter 11 bankruptcy protection, the process of renegotiation could become complicated as it will involve a bankruptcy judge.
"It doesn't make it any easier," he said.
BG's negotiations with ONGC appear at a standstill.
According to ONGC officials, BG has twice offered cash payments to ONGC in exchange for operatorship rights. The first, in late November for $7.5 million, was rejected by ONGC as inadequate.
A second offer, which analysts believe was around $8.5-$9.0 million, was also dismissed. Indian-based analysts reckon a cash offer close to $18 million would secure operatorship for BG.
According to one London-based analyst, the British exploration and production company has also reportedly dangled, without luck, slices of some of its Brazilian offshore acreage.
O'Kelly wouldn't comment on the state of discussions with ONGC.
But, a two-day international oil and gas conference in New Delhi beginning Tuesday may offer the opportunity for both sides to rekindle talks. BG India Chief Executive Nigel Shaw is scheduled to make a presentation at the conference on Wednesday.
-By Michael Wang, Dow Jones Newswires; +44-20-7842-9386; michael.wang@dowjones.com

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

POINT OF VIEW: The Enron Saga Reaches A Whole New Level
By Michael Rapoport

01/14/2002
Dow Jones News Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column

NEW YORK -(Dow Jones)- So the Enron Corp. (ENE) scandal has finally gone nuclear.
Not that this comes as a tremendous surprise. So far, Enron has sullied the reputation of just about everyone who's had anything much to do with it, from its auditor, Arthur Andersen LLP, to one of its primary bankers, J.P. Morgan Chase & Co. (JPM), to the rest of the energy-trading industry. Why should George W. Bush be any different?
All along, the only thing this saga of financial hanky-panky has been missing - the element to give this story the critical mass to push it from the business pages to the front page - is a real whiff of political hanky-panky. A concrete indication that Enron had tried to use its status as a major benefactor of the president of the United States to its own advantage. That's what we got last week, when it was revealed that Enron executives had called Bush administration officials as the company spiraled toward bankruptcy, to try to coax them to take action to help save the company.
Administration officials have said they took no such action, but that hardly matters at the moment. For purposes of determining the significance the public and press assign this story in the scheme of things, what matters is that Enron made the attempt at all. Outside the narrow confines of Wall Street, most people don't know from conflict-ridden off-balance-sheet partnerships or shady accounting practices ... but everyone understands influence-peddling and how wrong it is. A scandal-ridden company asks for special favors from an administration it helped pay to put in office? Oh, boy. Or, to use President Bush's now-well-publicized nickname for Enron's chief executive: Oh, Kenny Boy.
Combine that with the near-simultaneous news that Arthur Andersen has shredded Enron-related documents - destruction of evidence being another bit of scandalous behavior that a layman can easily understand - and all of a sudden a complex financial story has been elevated to a thoroughly mainstream, they'll-talk-about-it-on-the-street-as-well-as-the-Street scandal.
You want to know how mainstream this story is now? The three major network Sunday-morning talk shows, not usually renowned for their explorations of financial fraud, all spent copious amounts of time on the Enron story this Sunday. Dennis Miller cracked before Saturday night's NFL playoff game that the New York Jets, who had traveled between New York and California three times in a week, "have been flying back and forth across this country more frequently than a bagman for Enron." The topic of this week's Top Ten List contest on David Letterman's Web site: "Top Ten Excuses of Enron's Executives." That's how mainstream.
The fact that there's no credible indication as yet that anyone in the Bush administration did anything improper about Enron isn't going to slow down the story one bit. The questions the Bushies face over Enron are at least as legitimate as the questions their predecessors the Clintonites faced for years over the Whitewater affair, and after congressional Republicans battered Bill Clinton for years with investigation after investigation, you'd better believe the Democrats are smelling payback. (Of course, the Democrats have to tread carefully; many of them got contributions from Enron too.)
And it's an interesting quirk of timing, at the very least, that Bush's first in-depth public comments about the Enron fiasco came last week, just before the disclosures that may turn Enron into a major problem for his administration.
It's kind of ironic: For weeks, the plight of thousands of Enron employees who've lost their retirement savings - Bush's fellow Texans, the bulk of them - couldn't make the broad public take much note of the Enron scandal, especially while the war in Afghanistan dominated the news. The prospect of a few highly placed people facing hard questions about what they did or didn't do on Enron's behalf has made people sit up and take notice virtually overnight.
Where the investigation goes from here, no one can know. But for the first time, it appears President Bush, like others before him, may yet rue the day he first heard of Enron.
-By Michael Rapoport, Dow Jones Newswires; 201-938-5976; michael.rapoport@dowjones.com

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

TALES OF THE TAPE: Energy Traders Hammer Out Debt Fix
By Christina Cheddar

01/14/2002
Dow Jones News Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Homeowners know it only takes one lousy neighbor to ruin it for everyone else on the block.
For the power sector, the spoiler was Enron Corp. (ENE). The one-time industry leader's questionable financial practices and rapid descent into bankruptcy sent jitters through the market, forcing investors to re-evaluate whether the sector was on the wrong side of the tracks.
Ratings agencies - particularly Moody's Investors Service - acting like a zealous neighborhood watch, tightened standards and gave ultimatums. Both Calpine Corp. (CPN) and Mirant Corp. (MIR) were faced with a credit rating downgrade that placed the companies below investment grade, while the ratings of Dynegy Inc. (DYN) and NRG Energy Inc. (NRG) were put on watch for the same.
Each energy merchant responded the best way it could. One by one, the companies began renovating balance sheets and launching recapitalization programs.
Some threw out loans with triggers linked to credit ratings like bad shingles threatening to bring the roof down. Other firms moved off-balance sheet debt back onto financial statements, and announced ways to reduce debt and lower spending. Like so many corporate garage sales, assets - power plants, oil and gas properties, and even a refinery - went on the auction block, and new equity offerings were held.
In other words, each company tried every way possible to show that despite the misdeeds of one neighbor, they were were all good corporate citizens.
Investors and industry watchers may not agree on whether these balance sheet renovations were necessary improvements. But most will agree the changes are more than cosmetic, and will place the companies on the road to stronger performance.
Susan Abbott, managing director at Moody's Investors Services, said the plans "aren't just window dressing." But she warned the magic will be in the execution. She is concerned that some companies may have difficulty raising additional funds through asset sales in what has quickly become a buyers' market.
"From our perspective, the companies should sell assets that do not fit into the strategic plan," Abbott said. "What are they doing owning these assets anyway?"
She expects oil and gas properties that have proven reserves will be among the first assets that will be divested, possibly in as little as 30 days. Other assets will take longer to sell.
In some cases, equity offerings have bought firms some time to find the right buyer. (Unfortunately, at the expense of some value from current shareholders.)
Equity Offerings Bought Time For Asset Sales

"Mirant raised equity," Abbott said. "That's a good thing for them. Their ability to sell $1.5 billion of assets ... that will be the execution part we will be anxiously waiting to see."
If Mirant achieves its goals, and Moody's restores Mirant's investment grade status, the upgrade will be a catalyst for the stock, said Richard Giesen, manager of the Munder Power Plus fund. Giesen said he took advantage of Mirant's equity offering to add shares to his portfolio.
"I do think there's a good possibility Moody's could reverse (its downgrade) after the meeting with the company (this week)," Giesen said.
The Power Plus fund has roughly 9% of its assets invested in companies with energy trading operations, he said. As an investor in the sector, Giesen said he wishes the companies weren't forced to issue additional equity because of the earnings dilution.
"I wish they hadn't done it, but I realize it was a necessary evil given the circumstances," he said.
To get a sense of the impact, Merrill Lynch analyst Steve Fleishman said his 2002 earnings estimates were reduced by an average of 15% for those companies who announced recapitalization programs.
But earnings dilution wasn't the only reason why investors appeared to be universally critical of Moody's decision to raise the bar for sector. Many said it was wrong to change the rules overnight.
Moody's Abbott said she is aware of the criticism.
"These companies have a need to grow," Abbott said, "but the first step is to repair the balance sheets and establish a good relationship between cash flow and debt. ... Then the companies can focus on growth, but they can do it in a more balanced fashion, which means slower."
Market Waiting To Hear More During Earnings Season

Fourth-quarter conference calls, which will begin this week, will give some of the companies in the group another chance to outline goals for the year. According to several portfolio managers, the market isn't likely to view aggressive growth plans favorably.
Still, the portfolio managers aren't writing off the growth potential for the sector.
"California dodged a major bullet because of unseasonably mild weather," Giesen said. Mild weather and a weak economy are masking regional supply shortages and transmission grid problems that could again result in higher energy prices and improved earnings power in the sector, according to the portfolio manager.
Plus, the potential for oversupplied markets has been reduced as some companies cancel plans for power plants, said Merrill's Fleishman.
"We note, however," the analyst said, "that most of the 2002-2003 plants are already being built, so the benefit is mainly in 2004 and beyond."
There also is the chance of stock appreciation, even if the sector doesn't win back its growth moniker and the associated price-to-earnings multiples. According to Basu Mullick, portfolio manager of the Neuberger Berman Partners fund, relative to expectations, some in the sector are not even trading at utility valuations, which means there is room to rise.
Mullick favors El Paso Corp. (EP), which closed Friday at $41.77, and Williams Cos. (WMB), which ended the day at $25.50. Both stocks have come off the 52-week lows hit amid the heightened credit concerns last month, but the stocks remain sharply below their price ceilings.
Investors said they were impressed by the ability of company managers to react to the new credit requirements. As a result, investors expect fourth-quarter conference calls to continue to stress debt reduction.
The stocks could get a kick if the companies report they have been gaining market share in the wake of Enron's exit. This is most likely to come from market players such as Duke Energy Corp. (DUK), that had strong credit quality going into this period of uncertainty, some investors said.
Going forward, Fleishman said he thinks it also is the companies with strong balance sheets that will be able to benefit from acquiring new assets on the cheap. He cited Duke, Entergy Corp. (ETR) and American Electric Power Corp. (AEP).
The bottom line is most investors feel the short-term liquidity issues have been addressed, and now it is just a matter of waiting for energy prices to firm.
"For the patient investor, the risk-reward looks pretty good," said Glen Hilton, portfolio manager at Montgomery Asset Management.
-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com

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

Business
Rhonda`s Roundtable
Rhonda Schaffler, Allan Chernoff

01/14/2002
CNNfn: Market Coverage - Morning
(c) Copyright Federal Document Clearing House. All Rights Reserved.

RHONDA SCHAFFLER, CNNfn ANCHOR, MARKET CALL: Welcome back to MARKET CALL. One of the many angles of the Enron (URL: http://.www.enron.com/) mess is what is happening to the trading unit.
Allan Chernoff has been following that story for us and he`s got an update.
Allan?
ALLAN CHERNOFF, CNNfn CORRESPONDENT, MARKET CALL: Right. You know, Rhonda, the details of this were supposed to have been released at 8:30 this morning - they are now being pushed back to 3 p.m. But the "Houston Chronicle," this morning, does have a report. And we understand from sources that it is a reliable source - reliable report - and in fact, the "Chronicle" is quoting Chief Financial Officer Jeff McMahon.
So here is what the "Houston Chronicle" is reporting this morning in terms of the UBS (URL: http://www.ubs.com/) deal to buy Enron`s energy trading businesses. First of all, there will be no cash paid right up front and Enron will not have an ownership stake in the trading business. What will happen apparently, is that UBS is likely to give Enron 1/3 of the pre-tax profits from the energy trading business. That would be for year one and year two. And according to the report, in year three that would be pushed down if an option is exercised to 22 percent, then down to 11 percent, and then finally, down to zero percent.
So again, the headline there is that he would be receiving 33 percent at the beginning. There you have all the details. Now apparently, UBS would be hiring most of the 800 traders and marketers that work at the Houston headquarters, and UBS would also be paying rent for the office space that it is using.
So, Rhonda, that`s the latest that we have on that front.
RHONDA SCHAFFLER, CNNfn ANCHOR, MARKET CALL: All right, thanks so much, Allan. At least those people get it keep their jobs if we try to .
CHERNOFF: We`ll see if it all happens.
SCHAFFLER: Yes. Exactly. So 2 p.m. Eastern is when some more details .
CHERNOFF: That`s when they`re releasing the details. Keep in mind, the judge still has to sign off on that. Originally, he was supposed to do that Tuesday. It was then pushed off to Thursday, and now it`s Friday.
SCHAFFLER: OK. With that, we kick off the Roundtable. Andy Serwer of "Fortune" is here and our guest host, Todd Eberhard, joins me as well.
Andy, what`s on your mind this morning?
ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Well, you know, here we go again with the negative sentiment own Wall Street, sort of a real bearish morning. Rich Bernstein at Merrill Lynch cutting that firm`s allocation of stocks and very important downgrades. Over at Lehman, one report, I think, is really having a negative effect comes out of S&P. It concerns corporate bankruptcies.
Not a surprise, 2001 was a record for corporate bankruptcies; 211 companies worldwide declaring bankruptcy; $115 billion of debt. Here`s what struck me, though: It breaks the old record of 2,000, when 132 companies declared bankruptcy for $43 billion. So we went from $43 billion to $115 billion. And, you know, last year we had Enron (URL: http://.www.enron.com/) and PG&E (URL: http://www.pgecorp.com/) in California, you know, the utilities. So, are we going to go for a trifecta (ph) this year? Let`s hope now. That is a tremendous jump in two years in a row, records like that. So, not having a good effect on the Street.
SCHAFFLER: And, of course, there are all these scattered, you know, rumors out there, whether it`s K-Mart (URL: http://www.kmart.com/) seems to be the one in focus as a possible company that could go next. But, those are clearly alarming figures. And if things don`t turn around .
TODD EBERHARD, GUEST HOST, MARKET CALL: Well, that`s the question: Are we now through the worst for - into `02 or the first half of `02. It may continue to be bad, but is the second half going to turn around. And if you start to see a lessening in those bankruptcies and start to see a turnaround in some corporate profits, I mean, that becomes a statistics from the bygone era, to a degree, and maybe focus forward, not backward.
SCHAFFLER: There`s a lot of maybes in there.
EBERHARD: Well, yes. It`s true.
SCHAFFLER: Did you catch that?
CHERNOFF: And, the Street really is worried about what happens going forward.
EBERHARD: Sure.
CHERNOFF: I mean, we`re not - we know that we`ve had an awful year. We know that the recession is always under way. We know there are a lot of bankruptcies. The story is, do we turn around in terms of profits?
SERWER: And the problem is, again - that we keep wrestling with here over the past couple days - is we`ve already come back so far from the Nader in late September. And now the feeling is we`ve gone too far, we`ve gotten ahead of ourselves. Holly Becker of Lehman Brothers downgrading eBay (URL: http://www.ebay.com/) this morning for just that kind of reason. She`s saying, take profits. This thing is back up. It`s up. It`s the only Internet stock that matters. It`s the only Internet stock that has held
up.
CHERNOFF: Well, it`s the best run Internet company bar none, by far.
SERWER: Right, right, and the stock reflects that.
CHERNOFF: And we`re not going to include AOL Time Warner (URL: http://www.aol.com/) as an Internet company.
SCHAFFLER: Oh, Allan. That would be like unplugging this media company .
SERWER: "CBS MarketWatch" had a report this morning on their Web site rating the AOL Time Warner, giving it a "D."
SCHAFFLER: For what?
SERWER: For just performance - and compared it to Disney (URL: http://www.disney.com/) . It compared it to the HHH, which is the Merrill Lynch Internet index, and said that it lagged all those. And so, the one-year anniversary, good folks at "CBS MarketWatch" gave AOL Time Warner a "D."
SCHAFFLER: Even with all the great inflation out there these days.
CHERNOFF: The good competitors .
SERWER: Yes.
SCHAFFLER: There you go.
SERWER: There`s a connection with Viacom (URL: http://www.viacom.com/) there, too, if my understanding is correct.
SCHAFFLER: You know, Todd, if we`re in this situation here where we`re raising these questions: hey, when is it going to get better? Have we gone up too far? The market can really stagnate for months. I hate to raise that point, but if it doesn`t go down it can also go nowhere.
EBERHARD: That`s a perfect example of what I think we`ve seen over the last week or two, to some degree. I mean, we`ve seen pullback, but I have to argue the other side for a second. With all this bad news on Enron, with all the bad news coming out of Ford Motor (URL: http://www.ford.com/) with layoffs, with all the bad news of all the dot-coms and everything else that occurred over the last 18 months, let`s call it, and the market getting killed, we have seen it stagnate, which is not a bad thing, to find that bottom, theoretically.
SCHAFFLER: That would be our base building?
EBERHARD: In theory, yes. You find that base building and then it builds from there. And it may take three months, six months to get really going again or maybe even longer. But at least it`s not heading lower with all the bad news coming out at this point.
SERWER: Well, that`s sort of like having .
SCHAFFLER: A positive spin.
SERWER: Yes. How do you analyze Greenspan`s speech on Friday? Was it a half-empty speech?
EBERHARD: That`s right.
SERWER: A glass half-empty or a glass half-full? You know, he said, well, I don`t see any real signs on recovery. On the other hand, things aren`t getting worse, basically. You know, It`s hard for me to really sit here and see the market doing a whole lot first half of the year. I mean, I hate to say it but .
SCHAFFLER: Yes. See? That`s what I`m wondering, too, because it just seems in the last week we had a couple of brokerages coming out and just
saying, you know, in this particular group, valuations looked like they got ahead of themselves. Wireless, for instance, there was another wireless downgrade today. So it looks like there`s pockets where people are saying, all right, 100 percent recovery since September is enough.
CHERNOFF: Rhonda, I really don`t buy what these brokerage analysts write at all. The bottom line is .
EBERHARD: Allan .
CHERNOFF: If you get a few companies coming out with halfway decent news, people are going to back in there bidding them up. It`s as simple as that.
EBERHARD: Do you mean these guys who said that the dot-coms were going to go on forever and ever?
CHERNOFF: Yes.
SERWER: No, no, the guys who said that Enron was a buy. Those guys.
EBERHARD: Oh, those guys.
CHERNOFF: Oh!
SCHAFFLER: That would be all of them, I think.
CHERNOFF: They worked across the hall from here.
SERWER: Absolutely.
EBERHARD: It`s true, though. What you`re saying is accurate. If one or two companies do start to show numbers, and look at Intel (URL: http://www.intel.com/) , going back a short time ago; they came out with an OK number or "we think we`re doing better," and all of a sudden we`re off to the races again. And there`s a lot of cash out there to be placed, eventually. It may not be tomorrow or the next day. But, eventually, we will enter .
SCHAFFLER: Nobody will want to miss that rally. So basically, we need somebody, right, where even though there are no fundamentals here and technically the stock is in bad shape, buy it anyway? That would make you happy?
CHERNOFF: If there`s some halfway decent news, I think you`ll get people just jumping in once again. The turn is here. The turn`s here.
SCHAFFLER: Last call, Andy. You`re first.
SERWER: More fallout from Enron. I mean, it just permeates. Northern Trust (URL: http://www.ntrs.com/) , the big Chicago bank, today saying its earnings are down 18 percent. Big exposure to Enron is the reason why there is a write-off there. Stock`s not doing too badly. It still has a pretty high multiple. But we`ll see things like this happen.
SCHAFFLER: Allan?
CHERNOFF: Well, Rhonda, we certainly want to pay attention to what happens here with the UBS deal, but also the House Energy and Commerce Committee is really the focus of where the action is right now. They`re the ones who uncovered this memo, apparently, that had been issued by an in-house lawyer at Andersen to tell people, you can get rid of some of those documents. More details are definitely going to be coming out very shortly.
SCHAFFLER: And they will be interesting. That`s for sure.
Todd?
EBERHARD: I think we will see more details and more hiccups on this Enron, as well as other deals that go on, and other people who are connected with it. But I think the market has absorbed most of it. So I`m not too concerned about that affecting valuations at this level.
SCHAFFLER: That is our roundtable. "MARKET CALL" continues.
In the next hour, we head back to the New York Stock Exchange and the Nasdaq to find out what stocks are moving at this hour. President Bush visits America`s heartland to talk about the economy. And Microsoft has
plenty of cash on happened, but should that money go to paying out dividends?
We`ll explore that on our "Tough Call" segment.
END
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Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Sarah Palmer
Internal Communications Manager
Enron Public Relations
(713) 853-9843


Can you please call me ASAP to discuss the items requested...Are we going to need a CA first? Etc.

-----Original Message-----
From: Soriero, Tommy [mailto:SorierT@TEAI.COM]
Sent: Thursday, November 15, 2001 10:10 AM
To: Morris, Brandi
Subject: LRC Terminal

	Brandi:

	Please see the list of requested documents and information
concerning the Louisiana Resources Company pipeline and terminal.  We have
also listed a number of questions concerning separate issues about the
facility and pipeline that we would like to discuss.  Some of the requests
are redundant to our previous discussions.  Thanks.

*	List (and copies) of all applicable state and federal agency permits
for ownership/operations of the pipeline, terminal, and pier/dock facilities
in state waters
*	Copies of all surface use agreements, right-of-ways, easements, and
leases for the combination of facilities and what ongoing costs are
associated with each
*	All other agreements that affect the operations and/or the ownership
of the rights of way and/or surface use, including, but not limited to
concurrent use agreements (i.e. where there are two pipelines within the
same right of way), Operating Agreements, Agreements with the Owner of the
Gas Plant at the beginning point of the pipeline system, marketing
agreements, etc., if any.
*	Copies of any environmental audits or reviews of the facilities
*	Historical operating statements for the facilities
*	Copies of all lease agreements for the use of the facilities
(Genesis and others)
*	Copies of any structural or integrity reviews or assessments of the
facilities
*	Please provide a description of all jurisdictional authority matters
that affect the ownership/operations of the facility
*	A list of any past violations, spills, or other accidents
*	Copy/list of all title documents to be conveyed in the sale,
including the ROW interests and leases
*	List of consents needed for transfer of the assets being purchased
*	Copies of any specific insurance requirements
*	Please explain the responsibilities for the
decommissioning/abandonment of the facility
*	Copies of construction permits from the federal, state, and parish
agencies that address natural and cultural resources along with any
compensatory mitigation agreements for resource damages
*	Regulatory compliance records, environmental and safety, for DOT or
Louisiana Office of Pipeline Safety as well as alignment sheets

*	What is the agreement/responsibility of the parties with respect to
the old Swift gas plant at the end of the pipeline?  Does LRC's
responsibility extend to the border of the site, or is the site under the
responsibility of LRC?  Who is the current owner of this site if not LRC?
Are there any agreements between the owner of this facility and LRC?
*	Are there any known non-compliance issues with respect to the
facility's operations or current design/layout?
*	Has there been any leaks within the system?
*	Does the Genesis contract require them to pig the line before their
lease expires?  We will most likely need to have the entire line pigged
prior to the transfer of ownership.
*	What is the selling entity for these assets?  If pre-existing
liabilities are discovered, what selling entity would be financially
responsible?
*	What will be the status of the tank inventory and linefill upon
closing the transaction?


Hi Frank,

Thanks for your note.  The no comment policy is probably the best idea, but your comment actually turned out to work very well in the story.  I'd rather be lucky than good any time.

Mark

 -----Original Message-----
From: 	Ermis, Frank
Sent:	Wednesday, November 14, 2001 7:49 AM
To:	Palmer, Mark A. (PR)
Subject:	INTERVIEW WITH  SHERN-MIN CHOW/11 NEWS

Last night I was interviewed by Shern-Min Chow, I was quoted as saying "I don't know if he's gonna take the money.  He might turn it down, there are rumors to that effect."  I apologize for making that statement.  In the future, I will not give quotes other than "no comment."


I attended the FERC Commission meeting this morning and it was short and refreshing.  Here are some high points:

FERC issues an order rejecting the proposed amendment to the CAISO creditworthiness provisions, and granting in part the complaint of the generators in the docket (which we supported).  The CAISO is ordered to enforce the existing creditworthiness provisions of its tariff and invoice CDWR for transactions with the non-creditworthy IOUs, within 15 days.  Otherwise, FERC will seek injunctive relief in court to enforce its order.  Also, a creditworthy party must be provided and bills paid, otherwise, the must offer requirement will be suspended (applies to California).  Commissioner Massey dissented on the suspension of the must offer requirement.  Wood indicated that he supported the order as written and quipped that "the ISO must now do what we told them to do the 3rd time!"  The remaining Commissioners voted in favor.

Unanimous vote on a 6-page order which establishes the FERC "business plan" on how it will move forward on RTO's, electricity market design and structure, so that faster progress can be made.

Watch for a future order relaxing the FERC's ex parte rules to facilitate communication between FERC and state commissioners.  The idea is that communications will be more freely made and that a transcript of the communication will be filed in the record of the proceeding to comply with due process and other legal requirements.

I gathered the above from the discussions held at the meeting as the draft orders are not yet available.  We will review them upon receipt, and update this e-mail if necessary.

Ray Alvarez


Hi Chris,

My name is Joan Morgan and I do the capacity release here at Keyspan
(Boston Gas).  Next month and thereafter when you do the assignment of
the Iroquois contract (volume 35,465 dth), instead of using Liz Danehy
as the bidder contact, will you use my name?  The telephone number and
fax will remain the same.  My e-mail address is
jmorgan@keyspanenergy.com.

Thanks.  Let me know if you have any questions concerning this.

Joan Morgan


who runs that group for us?  Jeff

Massimo Marolo@ENRON
10/27/2000 01:38 PM
To: Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject: Re: Rotation

Jeff,

I visited the Networks-sponsored Houston Technology Center and had a chance
to interview with all the people working there. I believe that a rotation
there could give me the opportunity to learn a great deal about the
entrepreneurial/technology circles and at the same be a good tie-back to
enron for my third stage. I would appreciate any suggestions or comments you
might have. Again, thank you for your help.

Massimo


Don,

This looks good.   You have my blessing to proceed with approval from the cash committee.   You can reach me at home (713-856-7483) if you have any additional questions.

Thanks.

-----Original Message-----
From: Miller, Don (Asset Mktg)
Sent: Mon 12/24/2001 9:33 AM
To: Presto, Kevin M.
Cc:
Subject:

Kevin,

I updated to include total without Ameren and Wabash.  It obviously get more compelling.

<<East Power Summary(1)1.xls>>


Peter, I never said I would incur any costs.


fyi

 -----Original Message-----
From: 	McGowan, Mike W.
Sent:	Wednesday, August 15, 2001 3:00 PM
To:	Gilbert, Steve
Cc:	Cohrs, Allen; Neubauer, Dave; Kleb, Steve
Subject:	Trailblazer Plan Revenues - 2002/2003

Attached is a spreadsheet which depicts the Trailblazer revenues for years 2002-2003.  The $6.6 million revenue level for 2002  compares to the following:

Year 2001 Plan :                      $3.7 Million
2nd CE:                                  $4.9  Million (includes a $1 million upside booked in 1st quarter due to an imbalance cashout)
Year 2002 Plan (last year):       $4.8 million

If you have any questions or need additional information, please let me know.

 Mike McGowan


I have asked my assistant Patti to help me in setting up meetings for next
week and I had asked her to arrange  a lunch with you and Brent, plus some
time for just the two of us to get together.

We are continuing the worldwide operations/controls review at the request of
the two Rick's (Causey and Buy).  That will include a look at Continental
power, UK power, UK gas and global products.  Looks as if sometime in April
will be the date for that, however, not next week.  --Sally

Barry Pearce
03/14/2000 08:29 AM
To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Next Week

Can you do lunch one day?

Also - Bjorn H gave me a rather cryptic 'heads-up' about 'people on there way
to London to audit operations' - should we be ready for a review?

B.


Robin,

Attached is the final version of the Master Agreement.  If in agreement, please have two originals signed and return same to my attention.  Upon final execution, I will forward an original for your records.  Do not hesitate to give me call should you have any additional questions or comments regarding the enclosed.

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


Remi will be at 3AC 1434 instead of 3AC 1439. For any reason, if you need to
reach him , please call Luly Stephens (646-7651).

Luly : for your information, see below Remis's agenda for today.

10:00 ) 10:30 AM Kyu-Bong Lee  (phone : 853-1952, Mobile : 713-857-7858)
10:30 ) 11:00 AM Massimo Marolo (phone : 853-7743)
11:00 ) 11:30 AM Reagan Porschach (phone : 345-3363)
11:30 -  12:00  Jennifer Thome (phone : 345-3550)
12:00  -  01:00 PM Lunch
01:00  -  01:30 PM Jeff Gray (phone : 853-6501)
01:30  -  02:00 PM V. Charles Weldon  (phone : 345-7229)
02:00  -  02:30 PM Kelli Little (phone : 345-3419)
02:30  -  03:00 PM Joseph Wagner (phone : 853-3143)
03:00  -  03:30 PM Pauline Reyes (phone: 345-8313 / mobile: 832-654-7888)
03:30  -  04:00 PM Justin Cornet (phone : 345-3319  / mobile : 303-1203)
04:00  -  04:30 PM Ricardo Sassatani (phone 345-6281)
04:30  -  05:00 PM Olalekan Oladeji
05:00  -  05:30 PM Richard Yeboah (phone : 853-0471)

thanks.


--- Deb Pepple <dpepplejes@netscape.net> wrote:
> Date: 13 Nov 00 12:32:39 PST
> From: Deb Pepple <dpepplejes@netscape.net>
> To: Angie Barnett <angieb46@yahoo.com>, Donna Hixon
> <dhixonhhe@netscape.net>,
>   Laurie Lauer <jakenlaneysmom@hotmail.com>, Jan
> Secor <JCsdaughter19@cs.com>,
>   <marshtusk@yahoo.com>, <noell@galaxyinternet.net>
> Subject: Fwd: [FW: What if...]
>
>
>
>
____________________________________________________________________
> Get your own FREE, personal Netscape WebMail account
> today at http://home.netscape.com/webmail
>

> ATTACHMENT part 2 message/rfc822 name=Forwarded
Message
> From: "Lyle Fisel" <lfisel@earthlink.net>
> To: "Deb Pepple (E-mail)" <dpepplejes@netscape.net>,
>         "Deb Walburn (E-mail)" <bdwalburn@juno.com>,
>         "Karla Funnell (E-mail)"
> <jimmie4ever@aol.com>
> Subject: FW: What if...
> Date: Mon, 13 Nov 2000 08:27:08 -0500
>
>
> -----Original Message-----
> From: Sherry [mailto:tifkas@email.com]
> Sent: Monday, November 06, 2000 10:13 AM
> To: Holly Laughman; koinonos@egroups.com; shannon
> mahoney; Jan Yoder
> Subject: What if...
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
> What if, GOD couldn't take
> the
>   time to bless us today
>   because we couldn't take the time
> to thank Him
>   yesterday?
>
> What if GOD decided to
> stop
>      leading us tomorrow because
> we
>      didn't follow Him today?
>
> What if, we never
> saw another
>     flower bloom because we
>
> grumbled when GOD
>     sent the Rain?
>
> What if GOD didn't
> walk with us
>     today because we failed
> to
>     recognize it as His day?
>
> What if, GOD took away
> the Bible
>    tomorrow because we would
>     not
> read it today?
>
> What if, GOD took away His message
>
> because we failed to
>     listen to the messenger?
>
> What
> if, GOD didn't send His only
>     begotten Son because
> He
>     wanted us to be prepared to
> pay
>      the price for sin.
>
> What if, the door of
> the church
>     was closed because we did
>
> not open the door of our heart?
>
> What if, GOD stopped loving
> and
>     caring for us because we
>     failed
> to love
>     and care for others?
>
> What if, GOD would not
> hear us
>     today because we would not
>
> listen to Him?
>
> What if, GOD answered our prayers
>
> the way we answer His call
>     to service?
>
> What if, GOD
> met our needs the way
>     we give Him our
> lives???
>
>
>
>
>


In my new role as social secretary for James, I wanted to let you know that
he will be in London next week on business.  He will arrive on Monday morning
(February 5) and should be in the Enron office  most of the day on Monday,
Tuesday and Wednesday.  He will fly back to Houston on Thursday.  He has
dinner plans for Wednesday evening, but would love to get together with you
for dinner on Monday or Tuesday, if you are in town and available.  He will
be staying at the Sheraton Belgravia Hotel - walking distance to Enron
House.  Best way to contact him at Enron's London office would be through
Mike Jordan or his assistant.  Mike's number (don't know how many of these
digits you actually need to call from there) is 011-44-207-783-4703.

Hope you guys get to see each other.  Have a great weekend.  --Sally


So, what do "we" think of FERC's recent action to stop the bleeding in
California electricity?


Dear Lynn,

As it turns out, there is no deal documentation for the Panama City deals in
Panama (everything is in Houston).  Therefore, the deal test will need to be
done from Houston and we won't need anyone from your group to attend the
upcoming doorstep.  Scott and Michelle Bruce will obtain the population when
then are in Panama and also write the report.

Best regards

Shona


Davis is saying he's had discussions with us about taking a loss on our
debts??  Have we had any such conversations w/ him? ( I told the media
yesterday we hadn't been contacted by him...)
---------------------- Forwarded by Karen Denne/Corp/Enron on 03/01/2001
09:08 AM ---------------------------
From: Ann M Schmidt on 03/01/2001 08:54 AM
To: Karen Denne/Corp/Enron@ENRON
cc:

Subject: Merrill Lynch Report: Governor Davis Comes to Wall Street

Karen,

FYI.  Ann

Governor Davis Comes to Wall Street
3/1/1 9:47 (New York)

                      M E R R I L L  L Y N C H        Research Bulletin
  Fixed Income Research                               Reference Number
10906001
  United States                                       Mar/01/2001 09:47
  Leo J. Kelser                                       (1) 212 449-7803

Highlights of This Issue

Governor Gray Davis of California met with a group of sell-side and rating
agency analysts in New York yesterday.  The Governor outlined his plan for
restoring the utilities to financial viability so that they can meet their
obligations.  Below we summarize a few highlights from the meeting.

Trying to Fit Solution Within Existing Rate Structure

The Governor talked about the need to find a solution to the utilities'
problems within the context of their existing rate structures. He indicated
that the temporary 9% rate hike from January 2000 would be made permanent and
that a 10% rate reduction that went into effect in January 1998 would be
reversed in March 2002.

Status of Negotiations with PG&E

As we noted in a February 26(**th) comment, the Governor has reached an
agreement in principle with Southern California Edison (EIX: B3/CC) to address
that utility's past under-collections.  He hopes to also have an agreement
with
PG&E within the next 30 days, suggesting that progress was made in particular
in the last 2-3 days.  However, the Governor acknowledged that reaching an
agreement with PG&E was more difficult due to its larger under-collected
balance and lower rates compared with SCE.

Some Generators Agree to Haircut

The Governor indicated that a couple of unnamed generators have voluntarily
agreed to accept less than 100 cents on the dollar for their past due
receivables. When pressed about which parties they've had constructive
discussions with, he identified Williams (WMB: Baa2/BBB-), Enron (ENE:
Baa1/BBB+) and Dynegy (DYN: Baa2/BBB+).  We note that most of the generators
and marketers with exposure to California have established reserves against
possible losses.  Importantly, the Governor said that he hoped that the banks
and bondholders would not be asked to take a haircut.

Prospects for Legislation and Possibility of Ballot Initiative

The Governor said he is quite confident that he can reach an agreement with
the
utilities that the legislature can support.  Although he admitted that he
couldn't prevent someone from proposing a ballot initiative, the governor said
that in the end, the acid test with the public is how it affects their pocket
books.  Thus, if there is ultimately a ballot initiative, Governor Davis is
optimistic that the public will be supportive of his plan given the limited
impact on electric rates.

Status of Defaulted Utility Debt

As we have commented in the past, it appears unlikely that the resulting
legislation will pass with the required 2/3majority to go into effect
immediately.  Accordingly, there will be a several month lag before the
utilities receive any cash.  In response to a question, it appears that the
state will not step in to help the utilities pay off any maturing or defaulted
commercial paper.  But the Governor and his advisers hope that legislation
will
provide enough certainty so that the companies can get bridge financing.
Essentially, it appears the Governor is leaving it up to the utilities to find
the money from their banks.

Governor's Strategy to Keep the Lights On

The Governor stated that a key reason that deregulation failed in California
was that no new power plants were built in the state for over twelve years.
In
the intervening time, demand caught up with supply.  In response, he has
proposed various conservation initiatives and is trying to expedite the
construction of new power plants.  He set a goal of having 20,000 megawatts
(mws) of new supply on line by 2004.

In addition, the governor highlighted the need for additional investment in
the
transmission infrastructure.  In particular, he cited the need to expand the
capacity to import more power from Arizona as well to improve the ability to
move power from south to north within the state. He suggested that part of the
rationale for the state taking over the utilities' transmission grids was to
ensure that the additional investment takes place.  He also suggested that the
state would lease the transmission lines back to the utilities to allow them
to
continue to operate them.

In the meantime, the focus is to move away from California's over-reliance on
the spot market.  In that vein, Calpine (CPN: Ba1/BB+) yesterday announced the
signing of two long-term contracts with the state's Department of Water
Resources (DWR).  One of those contracts was to sell up to 1,000 mws over a
ten-
year term.  The other was to provide up to 495 mw of peaking capacity under a
20-year contract.  Earlier in February, CPN had reached agreement with the DWR
on a separate 10-year contract for an additional 1,000 mws.

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 Provider ID: 10906001
-0- Mar/01/2001 14:47 GM


I forgot about the happy hour.  Where is it?

I think that carpool could be pretty hectic, and since you and I haven't
picked him up we don't know the drill.  Picking him up an  hour later might
be a lot easier, and it doesn't bother him.

Are you going to any of tomorrow's activities?

Kay

"Neil Mann" <nmann@erac.com> on 12/14/2000 01:41:39 PM
Please respond to <nmann@erac.com>
To: <Kay.Mann@enron.com>
cc:

Subject: RE: michael's schedule

Probably. I guess we need to tell Norris he will be picked up later. Do you
want me to send her an e-mail or wait until we talk to Paige?
Also, what about the baseball tickets? Remember this is the Vehicle Repair
Loss Control Happy Hour today at 3:30pm. I will go late and leave early as
I've told everyone I need to pick up Michael.   NM

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Thursday, December 14, 2000 9:09 AM
To: nmann@erac.com
Cc: recordp@southwestern.edu
Subject: Re: michael's schedule

It would probably be easier if Paige picked him up at the CC, don't you
think?

Kay

"Neil Mann" <nmann@erac.com> on 12/14/2000 09:22:15 AM

Please respond to <nmann@erac.com>

To:   "C. Kay Mann (E-mail)" <Kay.Mann@Enron.com>
cc:

Subject:  michael's schedule

Michael's class party is tomorrow at 2:15 followed at 3:15 by the gym class
party.

Next Wednesday school is out at 11:30 and he should be picked up in the car
pool line. The Children's Center is open until 6pm that day if needed.

Thanks for taking care of me last night and this morning.

Love, Neil

I forgot to write a check for the Astros tickets last night. Do you want to
write it and get it over to John?  Twenty games would be $2,377.20.