Given the growth in EES it has become apparent that it is time to consolidate the risk functions between EES and EWS.  This will provide EES with the systems, resources and risk expertise of the wholesale energy groups necessary for it to continue to grow and take advantage of current market opportunities.

With this in mind and in agreement with the management of EES, two new risk groups inside Enron Americas will be formed to provide EES with pricing, structuring, retail and wholesale commodity risk management, logistics and back-office services.  These groups main function is to provide these services to EES.  We have asked Rogers Herndon, currently Vice President-Trading in the Eastern Power Group to manage this function in the Eastern Interconnect (this includes both gas and power).  Rogers will continue to report to Kevin Presto.  We have asked Don Black, formerly Vice President-EES Risk Management and Sourcing, to manage this function in the Western U.S.  Don will manage this group from Houston and will report to Tim Belden.

These groups will work very closely with EES to pursue shared goals while ensuring close coordination with the wholesale gas and power trading organizations.

These changes are effective immediately.  Please congratulate Rogers and Don on their new roles.

John Lavorato & Louise Kitchen


Scouting Kansas

The Longhorns have another long road trip this week, traveling to Lawrence to
take on Kansas at 1 p.m. Saturday. The game will not be televised.
The Jayhawks are 4-5. They lost to SMU, 31-17, to open the season, then beat
Alabama-Birmingham, 23-20, and Southern Illinois, 42-0, before falling to
Oklahoma, 34-16, and Kansas State, 52-13.
Then they defeated Missouri, 38-17, and Colorado, 23-15, before dropping a
45-39 game to Texas Tech and then getting hammered by Nebraska, 56-17.
The Jayhawks have a unique offense. QB Dylen Smith is one of the rare
quarterbacks who feels just as comfortable running the option or dropping
back into a four-wide receiver set. He is 6-1, 190, and fast and shifty.
Texas coach Mack Brown says Smith "is a really athletic quarterback who has a
great arm and who can make plays" with his arm or his quick feet.
He also says RB David Winbush, 5-7, 180, "is the leading rusher in Kansas
history, and that's a school that has had Gale Sayers and John Riggins" of
Chicago Bears and Washington Redskins fame, respectively.
WR Harrison Hill is one of the best in the league.
Defensively, nose tackle Nate Dwyer, 6-3, 300, is the anchor in the middle of
the line, and LBs Chaz Murphy, 6-3, 252, and Andrew LeClair, 6-6, 245, are
big run stoppers.
The Jayhawks are giving up more yards than they are gaining, which is never a
good sign, but they have been impressive at times, particularly when they are
playing at home.
The Longhorns are a 13-point favorite, but this is a dangerous road game
because Kansas has to beat Texas and then Iowa State next week to qualify for
a bowl game.
To win the Horns need to start quickly, like they did in Lubbock, and the
defense needs to pressure Smith and keep Winbush under control.
If Major Applewhite's knee injury turns out to be serious, they also need to
have a balanced offense to keep all the pressure from falling on Chris Simms'
inexperienced shoulders. They also need to score more touchdowns than field
goals when they get inside the 10.
Here's how the teams compare statistically (national rank in parenthesis):
Texas                             Kansas
Offense
(80)   121.7         Rushing Avg.          (39) 163.1
(15)   289.0         Passing Avg.          (78) 194.9
(33)   410.7        Total Off. Avg.  (68) 358.0
(12)     36.8        Scoring Avg           (64)   25.3
Defense
(12)     92.0        Rushing Avg.          (70) 160.8
(20)   180.7         Passing Avg.          (39) 201.9
(5)   272.7       Total Def. Avg.        (56) 362.7
(18)     18.2    Opp. Scoring Avg          (85)   30.0

Big 12 Roundup

Nebraska visits Kansas State in a game that will decide the Northern Division
crown Saturday, while top-ranked Oklahoma travels to Texas A&M in a huge game
in the Southern Division.
The winner of the Nebraska-Kansas State game is a virtual lock to represent
the North in the Big 12 championship game.
If Oklahoma beats A&M, the Sooners also will be assured of a spot in the
title game. But if the Aggies pull an upset, then a three-way tie would exist
in the South if Texas beats Kansas.

BIG 12 STANDINGS

SOUTHERN DIVISION
Conference              Season
W   L   PF    PA     Pct.      W   L    PF     PA     Pct.
Oklahoma        5    0  225     82   1.000     8    0   367   117    1.000
Texas           5    1  207   127     .833     7    2   331   164      .778
Texas A&M       5    1  153     74     .833     7    2   259   118      .778
Texas Tech  2    4  131   185     .333     6    4   232   211      .600
Okla State      0    5    80   157     .000     2    6  145   211      .250
Baylor          0    6    38   246     .000     2    7     95   300      .222

NORTHERN DIVISION
Conference                  Season
W   L   PF     PA         Pct.     W    L   PF    PA
Pct.
Nebraska        5    1  276   102      .833     8     1   394  152     .888
Kansas State    4    2  221   134      .667     8     2   433  161     .800
Iowa State      3    3  147   198      .500     6     3   233  249     .667
Colorado        3    3  141   153      .500     3     6  193   215     .333
Kansas          2    4  146   219      .333     4     5   228  270     .444
Missouri        1    5  115   203      .167     2     7  184    298     .222

Last Week's Results

Texas 29, Texas Tech 17
Texas A&M 21, Oklahoma State 16
Oklahoma 56, Baylor 7
Colorado 28 Missouri 18
Kansas State 56, Iowa State 10
Nebraska 56, Kansas 17

This Week's Games
Texas at Kansas, 1 p.m.
Oklahoma at Texas A&M, noon
Oklahoma State at Texas Tech, 1 p.m.
Missouri at Baylor, 1 p.m.
Iowa State at Colorado, 2:30 p.m.
Nebraska at Kansas State, 6 p.m.

2000 Longhorn Schedule, Record (7-2)

Texas  Opp.
Sept. 9     Louisiana-Lafayette  52 10
Sept 16    at Stanford              24  27
Sept 23    Houston                  48    0
Sept 30    Oklahoma State           42    7
Oct. 7       Oklahoma (Dallas)      14  63
Oct. 14    at Colorado              28  14
Oct. 21    Missouri                 46  12
Oct. 28    Baylor                   48  14
Nov. 4      at Texas Tech           29  17
Nov. 11    at Kansas
Nov. 24    Texas A&M

Scoring by Quarters
Texas         35    116   76    104 -  331
Opponents     40      61      42     21 -  164

The Blue Chips
Here's my updated list of the top Texas football recruits.
I have inserted * * * * at each position. The players above that mark are my
Fabulous 40.

The Elite 80 Recruits

Quarterback (6)

Matt Nordgren, 6-5, 225, 4.7, Dallas Bishop Lynch (UT Commitment)
Jason Carter, 5-11, 180, 4.5, Caldwell (A&M Commitment)
* * * *
Tye Gunn, 6-4, 200, 4.62, La Grange (TCU Commitment)
Kevin Ford, 6-0, 188, 4.5, Madisonville (Rice Commitment)
Mike Pankratz, 6-3, 200, 4.8, Katy Taylor (A&M, UCLA, OU, KSU, ND)
Davon Vinson, 6-3, 185, 4.5, Kilgore (A&M, Ark, OU, Bay)

Running Back (8)

Cedric Benson, 5-11, 200, 4.5, Midland Lee (UT Commitment)
David Underwood, 6-0, 220, 4.38, Madisonville (Michigan Commitment)
Anthony Johnson, 5-11, 195, 4.4, Jefferson (UT Commitment)
Donta Hickson, 5-9, 180, 4.4, McKinney (FSU, Neb, A&M, OU, Mich, Tenn, TT)
Eron Haynes, 6-1, 195, 4.4, Borger (TT, A&M, ASU, Kan, Wash)
* * * *
David Williams, 5-11, 180, 4.4, Carrollton Smith (FSU, A&M, Colo, OU, Mia)
Anthony Evans, 5-9, 195, 4.5, Pearland (Bay, A&M, Az, KSU, UCLA)
Cody Thibodeaux, 6-1, 200, 4.5, Winnie East Chambers (A&M, Neb, Ok St, LSU)

Fullback (2)
Darnell Sims, 6-2, 230, 4.7, Aldine (A&M, UH, LSU)
* * * *
Mark Pierce, 6-2, 215, 4.6, Weatherford (TCU Commitment)

Tight End (1)
James Moses, 6-3, 225, 4.7, GP North Shore (UT, Colo, Tenn, Mia, OU, A&M)
* * * *

Wide Receiver (10)
Armon Dorrough, 6-1, 168, 4.4, Lancaster (ND, Pur)
Brandon Jones, 6-3, 205, 4.4, Texark. Liberty-Eylau (Ky, Ark, A&M, FSU, UT)
Bennie Brazell, 6-2, 168, 4.4, Houston Westbury (LSU, UCLA, Ark, Ky, LSU, Mia)
Thomson Omboga, 6-2, 175, 4.5, Grand Prairie (OU, ND, Ga, A&M, Mo)
Cedric Williams, 6-0, 170, 4.4, Jefferson (KSU, FSU, LSU, Neb, A&M, OU)
Keith Mills, 5-11, 175, 4.4, Garland (A&M, FSU, Fla, Ark, TT, OU)
* * * *
Terrence Thomas, 5-9, 175, 4.4, Houston Washington (Mia, FSU, UCLA, A&M, UH)
Corey Roberts, 6-4, 190, 4.4, Carthage (LSU, A&M, SMU, TCU)
Jesse Woods, 6-4, 190, 4.5, Katy Taylor (A&M Commitment)
Kenneth Shelton, 6-1, 175, 4.4, Port Arthur Jefferson (A&M, OU, TT)

Offensive Line (13)
Jonathan Scott, 6-7, 290, 4.9, Dallas Carter (UT Commitment)
Jami Hightower, 6-4, 305, 5.2, Jacksonville (Neb, UT, A&M)
Ben Wilkerson, 6-4, 265, 4.9, Hemphill (Tenn, LSU, UCLA, OU, Ark, A&M)
Abe Robinson, 6-6, 270, 4.9, Jersey Village (UT Commitment)
William Winston, 6-6, 330, 5.3, Houston Madison (A&M, UT, UCLA, LSU, Mia)
Mike Garcia, 6-5, 280, 5.2, Galena Park (UT Commitment)
* * * *
Will Allen, 6-5, 300, 5.2, Cypress Falls (UT Commitment)
Terrance Young, 6-6, 330, 5.5, Longview (UT Commitment)
Bryan Kegans, 6-6, 305, 5.2, Stephenville (Texas Tech Commitment
Shane Simms, 6-2, 300, 4.9, Tomball (TCU Commitment)
Roman Reeves, 6-6, 295, 5.2, Livingston (UT Commitment)
E. J. Whitley, 6-5, 290, 5.3, Texas City (Kentucky Commitment)
Clint O'Neal, 6-6, 290, 5.2, Weatherford (Colorado Commitment)

Defensive End (9)

Jonathon Jackson, 6-4, 222, 4.56, GP North Shore (UT, A&M, Mia, Colo, Az)
Kevin Everett, 6-5, 235, 4.6, Port Arthur Jefferson (UT, ND, Colo, Pur, Mia)
* * * *
Simeon Jones, 6-3, 240, 4.7, Houston Jones (A&M, UH, Colo, Bay)
Lawrence Hooper, 6-4, 255, 4.7, Aldine (A&M, PSU, LSU, Colo, Fla, OSU, UCLA)
Jamie Jackson, 6-3, 225, 4.7 Andrews (TT, OU, A&M)
McKenzie Tilmon, 6-3, 235, 4.7, Irving MacArthur (KSU, A&M, Tenn)
Colin Allred, 6-3, 225, 4.7, Dallas Hillcrest (Neb, TT, TCU, Mich)
Bret Rayl, 6-7, 265, 4.9, Lewisville (A&M, FSU, OU, PSU, TCU)
Quintene Newhouse, 6-2, 250, 4.7, Emory Rains (A&M, Ky, Mich, Bay, TCU)

Defensive Tackle (7)

Tommie Harris, 6-3, 280, 4.8, Killeen Ellison (UT, FSU, A&M, Mia, OU, LSU)
Thomas Derricks, 6-0, 275, 4.9, Dallas Jesuit (PSU, ND, Neb, A&M, TCU)
Fred Thwreat, 6-2, 300, 4.9, Midland Lee (TT, A&M, Az)
* * * *
Clayton Harmon, 6-6, 260, 5.1, Stephenville (Texas Tech Commitment)
Sharod McGowan, 6-2, 250, 4.7, Waco (A&M, TT, NC, OU, NC)
Brandon Goodlett, 6-2, 280, 5.1, Conroe (Ky, OU, Neb)
Jeremy Calahan, 6-3, 260, 5.0, Pflugerville (ND, A&M, OSU, Stan, TCU, Van)

Outside Linebacker (4)

Derrick Johnson, 6-3, 205, 4.5, Waco (UT, FSU, A&M, Ark, OU)
Lance McFarland, 6-1, 225, 4.6, Jefferson (UT Commitment)
* * * *
Lee Foliaki, 6-2, 200, 4.5, Euless Trinity (A&M, FSU, Neb, KSU, TCU)
Shawn Willis 6-2, 215, 4.6, Flatonia (A&M, FSU, Bay, TT)

Inside Linebacker (2)

Yamil Lebron, 6-2, 240, 4.7, Killeen Ellison (UT Commitment)
* * * *
Jeff Billings, 6-2, 232, 4.7, Pasadena Rayburn (A&M, Ky, Az, ASU, NW)

Cornerback (7)

Byron Jones, 5-10, 180, 4.4, Bay City (A&M Commitment)
Cedric Griffin, 6-1, 180, 4.4, San Antonio Holmes (UT Commitment)
Danielle Manning, 5-11, 187, 4.4, Corsicana (A&M Commitment)
Aaron Ross, 6-1, 180, 4.42, Tyler John Tyler (UT Commitment)
* * * *
Bryant Singleton, 6-0, 175, 4.4, Galveston Ball (LSU, Tenn, A&M, Ark)
Moses Harris, 6-1, 170, 4.4, Dallas Carter (FSU, OU, Mia, TCU, Gramb)
Courtney Sterling, 5-7, 170, 4.4, Dallas Carter (Arizona State Commitment)

Safety (5)

Dewayne Brandon, 6-3, 198, 4.46, Temple  (UT, FSU, Colo, A&M, Tenn, Ky)
Rufus Harris, 5-11, 180, 4.4, LaPorte (A&M, LSU, Az, Mia, UT)
Kendall Briles, 5-10, 175, 4.5, Wolfforth Frenship (UT Commitment)
* * * *
Jarvis Mayes, 6-2, 180, 4.45, Dallas Kimball (A&M Commitment)
Jaxson Appel, 6-0, 190, 4.5, Friendswood (A&M Commitment)

Athlete (6)
Joseph Addai, 6-1, 195, 4.5, Hstn Sharpstown (UT, Neb, KSU, TCU, LSU)
Quan Cosby, 5-10, 180, 4.4, Mart (UT, A&M, UCLA, FSU, Bay)
Gainus Scott, 5-9, 170, 4.4, La Porte (FSU, Az, Tenn, Mia, ASU, Ky)
Ryan Gilbert, 5-11, 180, 4.4, Dallas Hillcrest (Mich, Neb, Mia, Tenn, FSU)
* * * *
Braden Johnson, 6-2, 200, 4.5, Euless Trinity (UT Commitment)
Brian Carter, 5-11, 180, 4.5, The Woodlands (UT Commitment)

The 25 "Difference Makers"

These are Texas' top 25 players, in my opinion:
1. DT Tommie Harris, Killeen Ellison
2. OL Jonathan Scott, Dallas Carter (Texas)
3. OL Jami Hightower, Jacksonville
4. LB Derrick Johnson, Waco
5. RB Cedric Benson, Midland Lee (Texas)
6. S Dewayne Brandon, Temple
7. RB David Underwood, Madisonville (Michigan)
8. C Ben Wilkerson, Hemphill
9. QB Matt Nordgren, Dallas Bishop Lynch (Texas)
10. OL Abe Robinson, Jersey Village (Texas)
11. OL William Winston, Houston Madison
12. Ath Joseph Addai, Houston Sharpstown
13. DE Jonathon Jackson, Galena Park North Shore
14. WR Armon Dorrough, Lancaster
15. RB Anthony Johnson, Jefferson (Texas)
16. WR Brandon Jones, Texarkana Liberty Eylau
17. Ath Quan Cosby, Mart
18. CB Byron Jones, Bay City (Texas A&M)
19. RB Donta Hickson, McKinney
20. CB Cedric Griffin, San Antonio Holmes (Texas)
21. DT Thomas Derricks, Dallas Jesuit
22. CB Danielle Manning, Corsicana (Texas A&M)
23. LB Lance McFarland, Jefferson (Texas)
24. CB Aaron Ross, Tyler (Texas
25. WR Bennie Brazell, Houston Westbury

UT Commitments

The Longhorns have 19 commitments, including 17 high school players and 2 JC
players. They are:
QB Matt Nordgren, 6-5, 225, 4.7, Dallas Bishop Lynch
RB Cedric Benson, 5-11, 200, 4.5, Midland Lee
RB Anthony Johnson, 5-11, 195, 4.4, Jefferson
OL Jonathan Scott, 6-7, 290, 4.9, Dallas Carter
OL Abe Robinson, 6-6, 270, 4.9, Jersey Village
OL Mike Garcia, 6-5, 280, 5.2, Galena Park
OL Will Allen, 6-5, 300, 5.2, Cypress Falls
OL Terrance Young, 6-6, 330, 5.5, Longview
OL Roman Reeves, 6-6, 295, 5.2, Livingston
OL Alfio Randall, 6-6, 300, 5.1, Blinn JC
DE Eric Hall, 6-2, 240, 4.5, Clarksville, Tenn
LB Lance McFarland, 6-1, 225, 4.6, Jefferson
LB Yamil Lebron, 6-2, 240, 4.7, Killeen Ellison
CB Cedric Griffin, 6-1, 180, 4.4, San Antonio Holmes
CB Aaron Ross, 6-1, 180, 4.42, Tyler John Tyler
Ath Kendall Briles, 5-10, 175, 4.5, Wolfforth Frenship
Ath Braden Johnson, 6-2, 200, 4.5, Euless Trinity
Ath Brian Carter, 5-11, 180, 4.5, The Woodlands
P - Brian Bradford, 6-2, 210, Trinity Valley JC

Recruiting Roundup

OL Jonathan Scott of Dallas Carter created quite a stir last week when he
was quoted in the Dallas News as saying he remains committed to Texas, but
might take a visit or two just to be sure of his commitment.
Texas coach Mack Brown generally sees a commitment as being binding on both
parties. He tells recruits when they are ready to commit that UT will
guarantee them scholarships, and they are supposed to guarantee they will
honor their commitments and refrain from visiting other schools.
Scott has talked off an on about visiting other schools, but he hasn't set up
any visits yet. I'll keep you posted if he does.
* * * *
QB-Athlete Kendal Briles of Wollforth Frenship, another UT pledge, says
Nebraska continues to recruit him, but he says he is solid for the Longhorns.
* * * *
Central Texas normally doesn't have very many top recruits, but four of best
in the state and in the nation his year are in Central Texas and three of
them play in District 13-5A, which stretches from Waco in the north to
Georgetown in the south.
Those four recruits will go a long ways toward determining whether the
Longhorns have a great recruiting class or just a very good one.
The 13-5A players are DT Tommie Harris of Killeen Ellison, LB Derrick Johnson
of Waco and DB Dewayne Brandon of Temple.
The other top prospect is QB-Athlete Quan Cosby of Mart, who led his team to
a 15-0 record and a Class 2A state title last year.
Texas is recruiting all four of them and has the lead with Johnson, Brandon
and Cosby. Harris has favored Texas when he lists a preference, but he has
been more noncommital about his college choice recently.
Texas has a good chance to get all four of them and that would really put the
icing on an already outstanding recruiting class.
Student Sports magazine currently has UT ranked No. 2 behind Michigan in the
national recruiting rankings.
If the Horns get three or four of those Central Texans I mentioned earlier,
they will have a great shot at the top spot.
And for those of you who have expressed concern that the Longhorns' two-loss
season could pose a problem, Michigan has three losses already. A 7-2 season
at this point is a very good year to sell to recruits.
I still expect the Longhorns to sign 25 or 26 kids. With 19 already
committed, that leaves room for only six or seven more players.
* * * *
In addition to the obvious recruiting targets I have been writing about
recently, there are two super prospects in Louisiana who are talking about
taking official visits to Texas the weekend of the Texas-Texas A&M game.
They are DT Marquise Hill, 6-7, 290, 5.1, of New Orleans De La Salle and TE
Marcus Spears, 6-5, 270, 4.75, of Baton Rouge Southern Lab.
The two Louisiana prospects and DL Kaelen Jakes, 6-4, 265, 4.75, of Valencia,
Cal., are the only out-of-state prospects on the Longhorn radar screen at
this time. UT has a very good shot at Jakes. Hill and Spears are long shots.

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FYI - Beth Apollo led the doorstep review in Monterrey last week.  No problems discovered - but Beth did find some communications and system access issues that could be improved to make it easier for Max's team to do their jobs.  She has quickly identified a point person within Operations in Houston who is bi-lingual (Gordon).  Max's note addresses his pleasure over Beth's responsiveness and the doorstep process in general.  Just wanted to pass this along.  --Sally
---------------------- Forwarded by Sally Beck/HOU/ECT on 03/09/2001 05:15 PM ---------------------------

Max Yzaguirre@ENRON
03/09/2001 04:37 PM
To:	Beth Apollo/Enron@EnronXGate
cc:	Sally Beck/HOU/ECT@ECT
Subject:	Gordon Heaney's Acceptance

Beth:

Thanks for the note regarding Gordon.  I appreciate the quick turnaround time on it, and I agree that he should be a helpful addition to the team.

Put me down as a fan of the doorstop review process.

Best regards - Max


The State Davis' Energy Advisors Draw SEC Attention Probe: Under review is
the possible use of inside information to buy power company stocks. GOP rival
of governor requested the inquiry.
Los Angeles Times, 07/31/01
Davis' top spokesman bought stock in power firm / Adviser denies conflict of
interest
The San Francisco Chronicle, 07/31/01

Davis press secretary confirms buying energy company stock
Associated Press Newswires, 07/31/01

India's Power Boards Lose $5 Bln as Subsidies Rise, Paper Says
Bloomberg, 07/31/01

India To Evaluate Options On Enron Stake Buy Out Offer
Dow Jones International News, 07/31/01

INDIA PRESS:Govt Asks Lenders To Bail Out Dabhol Pwr Proj
Dow Jones Asian Equities Report, 07/31/01

Report: Indian government orders financial institutions to save Dabhol power
project, as Enron wants to pull out
Associated Press Newswires, 07/31/01

FIs asked to work out deal for Dabhol completion
The Economic Times, 07/31/01

Houston-Area Firms Brace for Onslaught by Code Red Computer Worm
KRTBN Knight-Ridder Tribune Business News: Houston Chronicle - Texas, 07/31/01

Calif Gov Spokesman Says He Bought Calpine Stock In June
Dow Jones Energy Service, 07/30/01

Functioning In The Bandwidth Market No One Expected
Dow Jones Energy Service, 07/30/01

INDIA: India evaluating Enron's offer to quit Dabhol.
Reuters English News Service, 07/30/01

California Governor's Spokesman Says He Bought Calpine Stock
Bloomberg, 07/30/01

California; Metro Desk
The State Davis' Energy Advisors Draw SEC Attention Probe: Under review is
the possible use of inside information to buy power company stocks. GOP rival
of governor requested the inquiry.
WALTER HAMILTON JEFFERY L. RABIN; DARYL KELLEY
TIMES STAFF WRITERS

07/31/2001
Los Angeles Times
Home Edition
B-1
Copyright 2001 / The Times Mirror Company

The Securities and Exchange Commission has launched a preliminary inquiry
into whether energy consultants advising Gov. Gray Davis used inside
information to trade stocks of power companies doing business with the state,
a source with knowledge of the matter said Monday.
The federal agency began its review late last week, the source said, in
response to a request from California Secretary of State Bill Jones. A
Republican rival of Davis, Jones charged that stock trading by consultants
may have violated federal laws barring buying and selling based on
information not available to the public.
On Friday, top aides to the governor disclosed that five consultants had been
fired for possible conflicts of interest between their official positions and
their personal finances.
As news of the SEC inquiry spread through the capital Monday, Davis officials
were confronted by a flurry of questions about who in the administration owns
energy stocks.
Financial disclosure records filed by the governor's spokesman, Steve
Maviglio, show that he owns between $10,000 and $100,000 in a Texas company
he and his boss have accused of making "obscene" profits while California has
been "on its knees." Maviglio said he bought the shares in Houston-based
Enron Corp. in 1996.
"It's not a crime to own energy stock," Maviglio said.
He also owns 300 shares of San Jose-based Calpine Corp., which has the
largest share of the $43 billion in long-term state power contracts.
Maviglio placed the order for the stock on May 31, one day after San Jose's
mayor dropped his opposition to a controversial Calpine plant favored by the
governor and others. Under the terms of Maviglio's purchase, the transaction
was completed about three weeks later when the stock reached $40 a share, a
value of $12,000. It has since fallen in value.
"I viewed it as a good long-term investment," Maviglio said, adding that he
purchased the shares for his retirement account based on publicly available
information.
The Davis administration has spared Calpine the kind of fierce criticisms
that it has leveled at other electricity suppliers, such as Enron. But
California's grid operator has identified the company as one of many energy
merchants to overcharge the state millions of dollars.
The fired consultants also owned shares in Calpine, ranging in value from
several thousand dollars to more than $100,000, records show.
Another top Davis administration official, legal affairs secretary Barry
Goode, disclosed in his economic interest statement that he recently held
between $100,000 and $1 million in another out-of-state company accused of
multimillion-dollar price gouging.
In a statement, Goode said he sold his stock in Williams Co's. a month after
he began working for the governor in February. Goode said the shares were
supposed to be sold before he went on the state payroll, but his broker
failed to do so.
In light of the recent disclosures, Secretary of State Jones said the
governor must do more to ensure the public that its interest comes first.
"The governor should direct all of his staff to immediately file updated
conflict of interest statements that reflect current holdings and any
activity since their last statement of economic interest was filed," said
Jones, who is seeking the GOP nomination for governor.
Word of the SEC's entry into California's energy problems comes as the
governor faces harsh criticism from lawmakers and others for the quick and
broad hiring of highly paid private consultants to guide him through the
crisis.
In his written request to the SEC, Jones said that recently filed disclosure
documents showed that at least one consultant bought and sold shares of two
energy companies within the same month, raising "a red flag" about the
possibility of insider trading.
State law prohibits officials from participating in decisions involving their
personal financial interests.
The five consultants fired last week were among 11 named in Jones' letter,
delivered to the San Francisco office of the SEC last Wednesday. It was not
clear which individuals are the focus of the SEC's inquiry, or whether the
agency's review would result in any charges.
Two of the former traders said Monday that they had not been contacted by
federal investigators and knew nothing of an inquiry into possible insider
trading.
But William Mead, fired Thursday, said it is no mystery why so many of his
colleagues owned Calpine stock.
Mead said he bought it 2 1/2 years ago and made so much money he recommended
it to his colleagues last year, while they all still worked for the
now-defunct California Power Exchange in Alhambra. Calpine power was not
traded on that exchange, so there was no conflict of interest, he said.
Mead and three other energy traders--hired by the state in February and
March--were terminated by the Davis administration for allegedly buying power
for the state from Calpine while owning the company's stock. Fired traders
Herman Leung, Peggy Cheng and Constantine Louie did not list the date of
their Calpine purchases on financial statements that the state required to be
filed only two weeks ago.
"But I'm sure they bought it while they were still at the power exchange,
because that's when we discussed it," Mead said. "It was kind of like a
hobby. I'm sure it wasn't done with the intent to manipulate."
Former trader Elaine Griffin, who also owned Calpine stock and resigned two
weeks ago to take another job, said she didn't know she owned energy
securities until she checked with her financial advisor July 13, just before
leaving her state job.
Griffin said she and her husband own about $10,000 worth of Calpine stock in
individual retirement accounts managed by their advisor, who bought the stock
Feb. 1 without their knowledge, she said, after research found it to be a
good investment.
"I kind of feel like we've been used for political reasons," Griffin said.
"We would have disclosed anything right at first, but they never asked."
As a trader, Griffin said she occasionally bought Calpine power for the
state, but only at market prices.
Meanwhile, two Democratic political consultants, who helped Davis polish his
image after the ongoing energy crisis caused his poll numbers to plummet,
have agreed to accept no payment for their work as part of an out-of-court
settlement of a taxpayer lawsuit.
Tom Hiltachk, a lawyer for conservative anti-tax activist Lewis Uhler, said
the settlement was reached last Friday after negotiations with lawyers for
communications consultants Mark Fabiani and Chris Lehane.
"Now they will not receive one red cent," said Hiltachk. "Very simply Mr.
Fabiani and Mr. Lehane have agreed to cease all activities for the governor,
to accept no payments for their services and to basically get out of the
consulting business with the governor."
As his part of the agreement, Hiltachk said, Uhler withdrew his lawsuit
Monday morning.
Uhler had filed a lawsuit against the two consultants and Controller Kathleen
Connell in June contending that they should not receive any payments because
of a conflict of interest. The two men also did consulting work for
financially troubled Southern California Edison, which was seeking help from
Davis and the Legislature.
Connell, a former Los Angeles mayoral candidate who has been at odds with
Davis since he endorsed an opponent, had held up the payments pending the
outcome of the lawsuit.
Under an agreement with Davis, the men were to have been paid $30,000 a month
for six months.
Fabiani and Lehane could not be reached for comment.
*
Times staff writers Nancy Vogel and Virginia Ellis in Sacramento and Robert
J. Lopez in Los Angeles contributed to this story.

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

NEWS
Davis' top spokesman bought stock in power firm / Adviser denies conflict of
interest
Lynda Gledhill
Chronicle Sacramento Bureau

07/31/2001
The San Francisco Chronicle
FINAL
A.1
(Copyright 2001)

Already on the defensive over its energy advisers' financial holdings, Gov.
Gray Davis' administration came under fresh attack yesterday when his chief
spokesman admitted buying $12,000 worth of Calpine Corp. stock last month.
Steve Maviglio, Davis' acting director of communications, denied that his
purchase of the San Jose energy company's stock constituted a conflict of
interest. He said he would sell the stock if Davis or administration lawyers
asked him to.
"I invested in a growing California company," Maviglio said. "It's sad when
somebody tries to link owning energy stock with a conflict of interest."
The revelation came the same day that two high-priced consultants Davis
brought in earlier this year to help sell his energy policies to the public
agreed not to take any money for the work they have done. Davis was
criticized for hiring the two, partly because they had also worked as
consultants for Southern California Edison.
On Friday, Davis fired five energy advisers for possible conflict-
of-interest problems after they helped negotiate state spot-market purchases
or long-term power contracts. Four of the five owned stock in Calpine, and
the fifth held Enron shares.
ON THE DEFENSIVE
Maviglio, who had the task of explaining the firings, was on the defensive
himself yesterday.
He bought the Calpine stock in June after asking his broker to invest in it
when shares hit a certain price, he said. He said that showed he had made his
decision independently of whatever action he might have taken in the
governor's office on any particular day.
Calpine's stock has dropped some in the past month. As of yesterday, the 300
shares that Maviglio bought for $12,000 were worth about $11,100.
Maviglio said he had spoken out against Calpine as much as other energy
companies. He also owns Enron stock that he bought in February 1996 and has
disclosed on all forms, he added.
"I've called them pirates and gougers and lumped them in with all the rest of
the generators," Maviglio said.
Secretary of State Bill Jones, an announced GOP opponent of Davis for
governor in 2002, said Maviglio should be fired.
"These actions are unethical and unacceptable," said Jones, who called on the
governor's staff to release updated conflict-of- interest statements. "He had
the power to promote Calpine through press releases. That seems to me to be a
clear conflict of interest."
Calpine sold the state $14 million worth of power earlier this year and has a
large share of the $43 billion in long-term contracts for electricity that
the state has entered into.
Earlier this month, when he threw the ceremonial switch on a new Calpine
plant in Pittsburg, Davis singled out the company as being more cooperative
with California than out-of-state suppliers that the governor has
characterized as gougers.
IMAGE-POLISHING
The Davis administration tried to put another energy-related controversy
behind it yesterday as the two consultants brought in by the governor to
burnish his image agreed to forgo more than $50,000 in work they did for the
state.
Chris Lehane and Mark Fabiani will receive no compensation and will leave the
Davis administration immediately, under a settlement in a lawsuit filed on
behalf of a national taxpayer rights group.
Lehane and Fabiani -- nicknamed the "Masters of Disaster" for their work in
getting former President Bill Clinton out of political jams -- started in the
governor's office in May and were originally supposed to be paid $30,000 a
month.
It was later revealed that they had also worked as consultants for Southern
California Edison, which is trying to swing a deal with the state to avoid
bankruptcy. State Controller Kathleen Connell said she would not pay the two.
"It really raises the question in my mind, what is it about
conflict-of-interest and other ethical rules that the governor's office
doesn't understand?" said Lewis Uhler, president of the National Tax
Limitation Committee, which filed the lawsuit.
In June, Davis said Fabiani was no longer a communications consultant because
his work had been "successfully implemented." Lehane, on the other hand,
dropped his contract with Edison and signed a new agreement with Davis.
Lehane's new contract required him to work a maximum of 66 hours a month at
$150 an hour. His payments were to be capped at $76,000 for work from June 26
to Nov. 20, 2001.
'OUTRAGEOUS EXPENSE'
"This was an outrageous expense to taxpayers," Uhler said. "I believe there
was a clear violation of conflict-of-interest laws."
The consultants decided it was not worth the legal fees to fight the lawsuit,
Maviglio said. The two could not be reached for comment.
"It's shameful when people have to surrender their jobs in public service
because of a lawsuit," Maviglio said.
Jones, who filed a complaint with the Fair Political Practices Commission
concerning the two consultants, said, "I think it's clear from recent actions
by the governor's office that there have been rampant violations of the
state's conflict-of-interest laws. Their attempts to mitigate the damage from
these violations is too little, too late."
Jones said Davis should immediately require all of the consultants hired
during the energy crisis to file financial statements. There are 21 advisers
involved in power purchasing whom Davis has exempted, he said.
All the contractors who are required to file reports have done so, said
Maviglio.
In a related development, the Los Angeles Times quoted a source as saying the
Securities and Exchange Commission has launched a preliminary inquiry into
whether energy consultants advising Davis used inside information to trade
stocks of power companies doing business with the state.
The federal agency began its review late last week, the source said, in
response to a request from Jones.

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

Davis press secretary confirms buying energy company stock
By ALEXA HAUSSLER
Associated Press Writer

07/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SACRAMENTO, Calif. (AP) - Gov. Gray Davis' press secretary recently purchased
the same energy stock as five consultants the governor fired last week, he
disclosed Monday.
Steve Maviglio confirmed that on June 20, he bought 300 shares of stock in
Calpine Corp., a San Jose-based power generator that has received about $13
billion in state contracts to supply electricity for up to 20 years.
Maviglio's disclosure comes after Davis' office hastily ended the contracts
of five consultants who helped negotiate state power contracts and held stock
in energy companies.
In a related development, an anonymous source told the Los Angeles Times on
Monday that the Securities and Exchange Commission has launched a preliminary
inquiry into whether the consultants used inside information to trade the
energy stocks.
About two dozen Davis energy consultants were required to fill out financial
disclosure statements after complaints of conflict of interest by Republicans
and consumer groups.
"When we reviewed them, we found possible violations of the law and took
swift action," Maviglio said Monday before Secretary of State Bill Jones
issued a press release calling for his termination.
Jones, a Republican, is a candidate for the GOP nomination to challenge Davis
in November 2002.
Maviglio defended his purchase, saying that he "owns several stocks in
companies in all fields that are growing and are based in California."
Maviglio said Monday that he requested on May 31 to purchase the stock if it
dipped to $40 a share, which it did two days after a June 18 ruling by
federal energy regulators restricting wholesale electricity prices in
California and 10 other states.
Maviglio served as Davis' chief spokesman urging the Federal Energy
Regulatory Commission to impose price ceilings on electricity wholesalers.
He also said he owns between $10,000 and $100,000 stock in Houston-based
Enron Corp. He said he purchased the stock in 1997 and has reported it on
financial disclosure forms. He said that it is "closer to $10,000."
Meanwhile, two energy consultants to Davis have agreed to forgo more than
$50,000 in work they did for the state.
Chris Lehane and Mark Fabiani will forgo the payments as part of a settlement
with a Sacramento-area resident who filed a lawsuit objecting to their
hiring, calling it a conflict of interest.
Fabiani could not be reached for comment Monday. In the settlement, they
admitted no wrongdoing.
Lehane issued a statement through the governor's office, calling it "simply
not worth the bother to challenge the controller in court."
Davis has come under fire for his May hiring of Lehane, former press
secretary for Vice President Al Gore, and Fabiani, a deputy campaign manager
for Gore's presidential run.
They were hired to help shape Davis' response to the energy crisis, and
helped craft Davis' aggressive attack on Texas-based energy companies and
President Bush.
Both also have advised Southern California Edison, which is negotiating for
state help in avoiding bankruptcy. Financial disclosure forms showed they
have each received at least $10,000 from Edison in the past year.
Davis announced at the end of June that Fabiani terminated his contract, and
Davis scaled back Lehane's role with the state.
State Controller Kathleen Connell then said she would not pay Lehane and
Fabiani for any of their work and now the two have agreed they will not fight
her decision, Maviglio said.
Lewis K. Uhler, the Placer County man who filed the lawsuit, said the
settlement "accomplished our objectives."
"We wanted to block the egregious use of taxpayer funds for essentially
political spinmeisters," he said. Uhler is president of the Roseville-based
National Tax Limitation Committee.
Maviglio said that Fabiani and Lehane "did good work for the state" and
helped the state win victories with federal regulators.

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

India's Power Boards Lose $5 Bln as Subsidies Rise, Paper Says
2001-07-31 01:53 (New York)

     New Delhi, July 31 (Bloomberg) -- India's state
electricity boards that distribute power lost 260 billion
rupees ($5.5 billion) in the year ended March because of rising
subsidies and electricity thefts, the Business Standard
reported, citing government figures.
     Power subsidies, mainly to farmers, rose 12 percent to
370.37 billion rupees last year and made up for half the
average tariff of 2.12 rupees a kilowatt-hour. Subsidies have
risen 83 percent since 1997.
     Power costs have risen 41 percent the past three years to
3.03 rupees a kilowatt-hour though the growth in tariffs has
been lower at 28 percent, leading to losses, the paper said.
     Forced to sell subsidized power to farmers and hurt by
power thefts, electricity boards are unable to pay power
generators. Two U.S. power producers, Enron Corp. and AES
Corp., have asked the government to buy out their stakes in
local power projects because of unpaid bills.

India To Evaluate Options On Enron Stake Buy Out Offer

07/31/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- India will evaluate all options before making a
decision on U.S. energy major Enron Corp.'s (ENE) offer to sell its majority
stake in the controversial Dabhol Power Co. to the government, a senior
Indian Power Ministry official said Tuesday.
"We are closely watching all the developments. Enron hasn't formally
approached us with an offer. It will be premature to say anything on the
issue now. The government will take a stand on the Enron matter only after
thoroughly studying all the prospects and consequences," said the official.
A spokesman for Dabhol Power Co. said his company has had no contact with the
federal government lately.
Enron said Saturday the company wanted to sell its stake in Dabhol Power Co.
to India's federal government or one of the project's lenders.
Enron holds a controlling 65% equity in Dabhol Power Co., located in the
western Indian state of Maharashtra. The Dabhol Power Co. plant has a
capacity to generate 740 megawatts but is currently not operating because of
payment disputes with its sole buyer, the Maharashtra State Electricity
Board. MSEB stopped drawing electricity from Dabhol May 29, saying the
company's tariffs were "unaffordable."
Work on an 85% complete 1,444 MW phase II of the Dabhol project was stopped
in mid-June because of Dabhol Power Co.'s financial difficulties.
At $2.9 billion, Dabhol Power Co. is the single largest foreign investment in
India to date.
-By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426;
himendra.kumar@dowjones.com -0- 31/07/01 10-09G

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

INDIA PRESS:Govt Asks Lenders To Bail Out Dabhol Pwr Proj

07/31/2001
Dow Jones Asian Equities Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- India's federal government has directed financial
institutions, led by the Industrial Development Bank of India (P.IDB), to
work out a package for saving the controversial $2.9 billion Dabhol power
project in the western Indian state of Maharahtra, reports the Financial
Express.
U.S. energy company Enron Corp. (ENE) holds a controlling 65% stake in Dabhol
Power Co., which operates a 740-megawatt power plant.
The move comes on the heels of Enron's decision to pull out of India's power
sector, says the newspaper report.
The package is aimed at completing the 1,444-megawatt phase II of the Dabhol
project. A sum of $550 million is required to complete the project, of which
lenders have agreed to pump in around $320 million. As Enron doesn't want to
inject fresh money into Dabhol, the financial institutions will either have
to scout for a new investor for the project or pump in the remaining $230
million themselves, the report said.
Web site: http//www.financialexpress.com

-By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426;
himendra.kumar@dowjones.com

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

Report: Indian government orders financial institutions to save Dabhol power
project, as Enron wants to pull out

07/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

NEW DELHI, India (AP) - The federal government has told financial
institutions to pump in more money or find a new investor to save the Dabhol
power project, now that U.S.-based Enron Corp. has said it wants out, The
Financial Express reported Tuesday.
The Industrial Development Bank of India, and other institutions, have been
told to work out a package to complete the dlrs 2.9 billion project in
western Maharashtra state, the paper said, quoting unidentified officials of
the banks and the Power Ministry.
Power Ministry officials were quoted as saying that Enron had agreed in
principle to finish the project if the dlrs 230 million can be found, and
then Enron could sell its majority stake.
The project was billed as the world's largest natural gas-fired power plant,
able to generate 2,184 megawatts once completed at Dabhol, 335 kilometers
(210 miles) south of Bombay. The second phase, to be run on liquefied natural
gas, was to be commissioned by the end of the year.
Enron, based in Houston, Texas has invested dlrs 875 million in the project -
India's biggest foreign investment. Enron said July 28 it wants the Indian
government and lenders to buy out its 65 per cent stake.
The plant stopped production in May after its only customer, the Maharashtra
State Electricity Board, said it was canceling a seven-year-old power
purchase agreement. The state also stopped buying power from Enron's
two-year-old naphtha plant.
The state says Enron's prices are too high and has demanded the contract be
renegotiated.
The Financial Express said that lenders are ready to pump another dlrs 320
million into Dabhol, but there is a shortfall of an additional dlrs 230
million.
The financial institutions will have to find a new investor or provide the
money themselves, the newspaper quoted its sources as saying.
It also quoted Power Ministry officials as saying it would be difficult to
find a buyer until the project is completed. Some of the needed money may be
sought from Maharashtra state, which had committed to making payments, the
paper quoted Power Ministry officials as saying.
The current charges for power are still a matter of contention, however.
The paper said Enron had reduced its price demands, after the government
offered various tax and customs duty concessions, but the government wants
the price for electricity to be cut further.
(lak)

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

FIs asked to work out deal for Dabhol completion
Soma Banerjee

07/31/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

FINANCIAL institutions led by Industrial Development Bank of India have been
directed by the Centre to work out a package by which the controversial
Dabhol Power plant can be completed which in turn could pave the way for the
sale of equity by Enron.
Enron, which has a $2.9 billion stake in the project has recently announced
its decision to pull out of India. This comes barely weeks after the visit of
Enrons chairman Kenneth Lay who had then maintained that the 'company is
committed to India' and is looking forward to 'positive talks'.
The package which will be submitted to a high level committee, which is
represented by the finance, power and law ministry and headed by union
finance secretary Ajit Kumar. Representatives of the Union power and finance
ministry met last week to thrash out the main objectives of the package.
According to FI sources, the package which is expected to be finalised
shortly will have to have a twin objective of completing the project and
finding takers for the power to be generated.
The phase II of the project (phase I of which is already operational)
requires an additional investment of $550 million to be completed of which
$320 million has already been tied up with the lenders.
Another $230 million has to be pumped in into the project. Given the fact
that Enron is unwilling to pump in any more funds in the project, the FIs
will have to look for the additional resources.
The required resources can be moped up only through the infusion of fresh
investments by a new developer or if the FIs are willing to put in the money
themselves.
FIs are also holding discussions with MSEB to honour their obligation and pay
up the fixed charges of about Rs 95 crore which could then be used for
completing the project.
Sources said although Enron has decided to call it a day in the Indian power
sector, the company is not averse to the proposal of completing this project
without any further investments. Experts are of the view that this would make
sense even for Enron who could then expect a better price for its equity.
On the sale of power and restructuring of tariff, the FIs are holding
negotiations with DPC and the various agencies who play a role in
contributing to the tariff. While DPC has offered a tariff of Rs 3.59 per
unit, the FIs will try and work towards a tariff close to Rs 2.80 per unit.
Apart from aspects like working a separate arrangement for the LNG plant,
reduction in Customs duty and sales tax on LNG, attempts would be made to
also try and reduce LNG prices by asking the suppliers to rework their rates.
Official sources indicated that Enrons decision to finally announce its
intention to exit from the Dabhol project is likely to lead to some decision
this way or the other.
The Centre which has till now played a passive role and has left the issue to
be resolved bilaterally is now playing a more proactive role and will
definitely take every step to avoid litigations at the international lenders
level.

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

Houston-Area Firms Brace for Onslaught by Code Red Computer Worm
Tom Fowler

07/31/2001
KRTBN Knight-Ridder Tribune Business News: Houston Chronicle - Texas
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

Technicians at Reliant Communications and other Internet service providers
will burn the midnight oil tonight and well into Wednesday, fighting the
rebirth of an Internet worm some say could be the worst threat to the Web to
date.
The Code Red worm, an online infection first spotted on July 19, is expected
to awaken from its dormant state on hundreds of thousands of computers around
the world at about 7 p.m. CST today. Tuesday. It will then start flooding the
Internet with traffic as it tries to replicate itself, creating the
equivalent of an overwhelming number of surfers hitting the Web at once.
Dave Power, senior vice president of technology at Reliant Communications,
said nearly every Internet service provider is taking the threat seriously
and will monitor it carefully as it develops.
"At the end of our staff meeting today the message we all left with was, `Be
prepared for the siege,'" Power said.
Unlike a virus, which spreads when a user opens an e-mail attachment, Code
Red is a self-propagating worm that spreads itself without human
intervention.
When Code Red first showed up earlier this month it infected more than
250,000 systems in just nine hours, security officials say. It tried to shut
down the White House's Web server by sending a flood of data requests its
way, but officials changed the Internet Protocol address, the numeric
reference to a computer's location on the Internet, of the White House site
before the attack began.
When the worm reactivates Tuesday tonight it could begin spreading more
quickly, bringing sporadic but widespread Internet slowdowns and defacing Web
pages.
The potential threat to Internet service is so severe that several federal
agencies and companies, including the FBI and Microsoft, held a joint press
conference Monday.
"The Internet has become indispensable to our national security and economic
well-being," said Ron Dick, head of the National Infrastructure Protection
Center, an arm of the FBI. "Worms like Code Red pose a distinct threat to the
Internet."
Code Red scans the Internet for Web servers, sending a string of code to
those machines that takes up residence not in the hard drive but in the
buffer memory where it is difficult to detect. The worm targets servers
running Microsoft Windows NT and Windows 2000 with Internet Information
Server, or IIS, software versions 4.0 and 5.0.
The worm isn't likely to infect the computers most people have at home or on
their desktops at work, but rather will infect Web servers, the powerful
machines kept in air-conditioned data centers that let people view Web sites
online. That means any sort of Web surfing, from checking e-mail to buying
books online to looking up stock quotes, may be anywhere from significantly
slow to nearly impossible.
"So the ordinary person using a cable modem or DSL won't be infected, and
they don't need to worry about their privacy or confidentiality," said Chris
Pick, vice president of product strategy for Houston-based PentaSafe Security
Technologies. "But they will notice that some of the Web sites they want to
hit are either running slowly or are simply not available."
Unlike an e-mail virus, which spreads when a user opens an e-mail attachment,
Code Red is a self-propagating worm that spreads itself without human
intervention.
Code Red scans the Internet for Web servers, sending a string of code to
those machines that takes up residence not in the hard drive, but in the
buffer memory where it is difficult to detect. The worm targets servers
running Microsoft's Internet Information Server, or IIS, software versions
4.0 and 5.0.
From within a server Code Red begins scanning a randomly generated list of
Internet addresses to find another server to infect. If the infected server's
default language is English, all Web pages served by that machine will be
defaced with the message "HELLO! Welcome to http://www.worm.com! Hacked by
Chinese!"
Officials say they have not identified the author of the program, but its
name is said to be a reference to a soda made by Mountain Dew that is popular
with hackers, and the name is not a reference to "Red" China.
Officials say they have not identified the author of the virus, but its name
is said to be a reference to a popular soda made by Mountain Dew with hackers
and not China.
The real problems created by Code Red are not related to security or privacy
issues, or even the Web page graffiti, but rather the amount of traffic that
will be generated by hundreds of thousands of Web servers sending out data
packets searching for other machines to infect.
The first 19 days of a month the worm is set up to scan and infect, but from
day 20 until day 27 the worm floods a certain Internet address -- in this
case the White House Web server -- with information requests causing a
denial-of-service attack.
The White House changed its Internet address prior to the attack earlier this
month and avoided being knocked out, but that didn't kill off Code Red. The
worm has been sitting dormant on servers for the past two weeks, but when the
date changes from 31st to the 1st, it will begin scanning for new hosts to
infect again.
A software patch to fix the Microsoft IIS program's vulnerability has been
available since June, a few weeks after developers and security experts found
the problem. Unfortunately, not enough system administrators and Web masters
installed it before the outbreak.
"Hacker groups in general are aware of these vulnerabilities, but they can be
taken care of relatively easily with just a little vigilance," Pick said.
Jeremy Hewlett, security administrator for Reliant Communications, said
downloading the software patch should be the first priority for any system
administrator. In addition to the Microsoft site, the National Infrastructure
Protection Center, www.nipc.gov, and Symantec Co., www.symantec.com cq for
both addresseshave information about detecting and removing the worm.
Observers say Microsoft products are common targets for virus writers because
the software is found running on so many sites and because Microsoft has not
always been as attentive to security issues as it could be.
"With Windows NT and Windows 2000 they were engineered to work in tandem with
a lot of other systems at once, so security was not engineered into the
products from the start," Pick said. "They haven't focused on it much in the
past but are starting to become more aware of it."
Microsoft is known for not testing its products as well as it could either,
Power said, which also leads to many post-release patches and updates.
"They're not very forthcoming with problems, which is why you'll see most
people go to the public and press with issues first," Power said.
Microsoft took part in the public warnings about Code Red on Monday and has
been providing the patch for free on its Web site for weeks.
Hewlett said the staff at Reliant Communications has already cleared its
network of the worm but is expecting to work late Tuesday night monitoring
incoming attacks from other infected servers. University networks are among
some of the likely breeding grounds since schools' Information Technology
departments tend to be particularly short-staffed in the summers.
"We saw enormous volumes of traffic from the schools last time, but nobody
really monitors the university networks for this," he said.
While the denial-of-service attack aimed at the White House could have been
damaging if it had not been redirected in time, there's nothing stopping a
virus writer from setting his or her sights on another target, like a
company's Web site.
"It could be Enron's site, it could be any other government site, or any part
of the net's infrastructure that's vital to the economy," Pick said. "Houston
is just as likely as any other city to be infected."

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

Calif Gov Spokesman Says He Bought Calpine Stock In June

07/30/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LOS ANGELES -(Dow Jones)- A spokesman for Gov. Gray Davis purchased shares of
Calpine Corp (CPN) on June 20, 2001, he said Monday, but declined to say how
many shares he purchased.
This is the first time an official in Davis' office has admitted to
purchasing shares in energy companies since the state took on the job of
buying power in January in lieu of the utilities.
As reported, the U.S. Securities and Exchange Commission has been
investigating Davis administration officials for more than a month to see if
they purchased stock in energy companies using information that was
unavailable to the public. Davis spokesman Steve Maviglio said, however, that
his stock holdings did
not represent a conflict of interest. Maviglio has not been named in the
SEC investigation, and says he made his purchases based on public
information.

"There's no crime in owning energy company stocks," Maviglio said. "My
purchase of Calpine was based on information I read in the newspapers."
Maviglio also owns between $10,001-$100,000 in Enron Corp (ENE) stock,
according to a 2000/2001 financial disclosure form. He said he has owned
Enron stock since 1996.

Last week, five state energy consultants were fired by Davis' staff for
conflicts of interest because they helped California buy power from Calpine,
a company in which they owned stock, state officials said.
The consultants, who were hired by the state in January, did not file
economic interest statements until July, when Secretary of State Bill Jones
revealed that the consultants and energy traders held stocks in energy
companies they were buying from. Jones said Monday that Maviglio's actions
were "unethical, unconscionable and unacceptable."
"The Governor should direct all of his staff to immediately file updated
conflict of interest statements to reflect current holdings and any activity
since their last Statement of Economic Interests was filed," Jones said in a
statement. Jones, a Republican who hopes to challenge Democrat Davis next
year for governor and who has been highly critical of Davis' handling of the
energy crisis, also called for an expansion of investigations.
"The SEC, the Attorney General and the Fair Political Practices Commission
must now expand their investigations to include all of the Governor's staff
in addition to the consultants who are already under investigation," the
statement said.
Attorney General Bill Lockyer has not yet decided whether he will launch an
investigation into the Davis administration, a Lockyer spokeswoman said.
The governor's own investments are in a blind trust, meaning a trustee
handles Davis' financial affairs and the governor has no knowledge of the
investments.
"I have always owned mutual funds and have never bought stock in individual
companies. That has been my policy since the beginning of my administration,"
Davis said Monday at a bill-signing event in Los Angeles.
State conflict-of-interest laws say that public officials cannot negotiate
contracts for companies in which they hold stock, and officials cannot use
their positions to influence the state's decisions with respect to those
companies.
The conflict-of-interest laws apply to all state bodies, including the
California Public Utilities Commission and the California Independent System
Operator, which runs the state's real-time energy market.
The five members of the ISO Board of Governors listed no holdings in energy
companies since Jan. 24 on their most recent disclosure forms, signed between
Jan. 24-July 24. The board was appointed by Davis in January. Disclosure
forms for the CPUC and employees with the California Department of Water
Resources, the state's power-buying arm, could not be immediately obtained.
SEC investigators said Sunday that a preliminary investigation has revealed
that several employees and consultants working directly with Davis on energy
issues have purchased "significant" shares of Calpine stock between January
and July. Individuals purchased stocks in other energy companies, but
invested heavily in Calpine, the investigators said. Nearly half of the
state's $43 billion in long-term energy pacts will come from Calpine,
according to details of contracts released last month. Some of the contracts
were signed as early as February, but Davis had refused to release the
details of the supply until a Superior Court Judge ordered the administration
to do so in mid-June after news organizations filed a lawsuit.
Davis has accused power suppliers of price gouging, and his attorney general
hopes to send power company executives to jail. But Davis has spared Calpine
the invective, touting the San Jose-based generator as a "California company"
helping to keep the lights on in the state.
Maviglio has said the governor has praised Calpine because its prices are
well below those charged by other generators and because the company has
invested in California for the long haul.
Calpine is "not attempting to suck every dime out of the state and throw
parties in Houston," he said.
-By Jessica Berthold and Jason Leopold, Dow Jones Newswires;
323-658-3872/3874; jessica.berthold@dowjones.com, jason.leopold@dowjones.com

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

Functioning In The Bandwidth Market No One Expected
By Erwin Seba
Of DOW JONES NEWSWIRES

07/30/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Band-X Ltd., the longest-lived bandwidth exchange, has
survived by moving as the market has developed, said a London-based analyst
of the London-based company.
"Their business model is sound," Ciara Ryan, senior manager in the bandwidth
trading department at Arthur Andersen's London office, told Dow Jones
Newswires. "They understand the limitations of the market. They didn't try to
fix the world overnight."
Band-X began trading bandwidth in 1997, two years before Enron Corp. (ENE),
announced it was going to be a market-maker in bandwidth trading.
But, a company executive said part of the reason for his company's success is
it lacks an energy- merchant background.
"The difference between gas and bandwidth is you can't store bandwidth,"
Donald Noonan, vice president of Networks, told Dow Jones. In 2000, the
privately held company saw $80 million in bandwidth trades, Noonan said.
The company has offices across Europe, Asia and in the U.S.
The company also operates a telecommunications minutes exchange and a
colocation exchange, which is increasing business as companies seek to gain
some return on an investment in a network with rapidly declining profit
potential, while others seek to buy or lease what they would otherwise build.
"We are constantly seeing the leasing of capacity," Noonan said.
But the contract time periods are shifting from the previously common 20-year
lease to 1-year or 10- or 20-year contracts, he said.
And the company has won favorable reviews from the most conservative part of
the market, the carriers, Ryan said.
"They have a lot critical mass and lot of support in the marketplace," she
said.
-By Erwin Seba, Dow Jones Newswires; 713-547-9214; erwin.seba@dowjones.com

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

INDIA: India evaluating Enron's offer to quit Dabhol.

07/30/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW DELHI, July 30 (Reuters) - Indian officials said on Monday they were
evaluating an offer by U.S. energy firm Enron to sell its stake in troubled
Dabhol power project to the federal government.
A spokesman for the Dabhol Power Company, in which Enron holds a 65-percent
stake, said on Saturday the firm and its partners wanted to sell equity in
the project to the federal government or the lenders.
"We are assessing the situation. It is too premature to say anything right
now," a senior federal power ministry official, who did not want to be
identified, told Reuters.
He said the federal government had not received any formal offer from Enron
to sell its equity in the controversial project.
Government sources said that ministry officials were talking to Indian
financial institutions to assess Enron's statement.
A power ministry official said if the federal government picked up Enron's
equity in the project, it could save the government millions of dollars in
penalties which it would have to pay if it lost an arbitration case over the
project.
Apart from Enron, DPC's shareholders include U.S. group General Electric and
Bechtel, which own 10 percent each, and a local utility, the Maharashtra
State Electricity Board (MSEB), which holds 15 percent.
Enron has been locked in a bitter payment dispute with MSEB, which had signed
a contract to buy all the power produced by Dabhol, whose first phase of 740
MW was completed last year, and the second phase of 1,444 MW is nearly
complete.
A BLESSING
India's western state of Maharashtra, where the project is located, welcomed
Enron's offer to sell its equity in the controversial project, the Press
Trust of India reported.
"It will be God's biggest blessing for us," the agency quoted the state's
Energy Minister Padamsinh Patil as saying in Bombay.
It also quoted the head of a negotiating committee, M. Godbole as saying that
the panel's next meeting, scheduled after a month, would be cancelled in view
of Enron's statement that it wants to exit Dabhol.
MSEB and Enron's dispute escalated in April, when the U.S. firm notified the
government it was applying to an arbitration court in London to consider its
claim for 1.02 billion rupees owed by MSEB for power it purchased in December
from DPC.
The company also sent a political force majeure notice to MSEB. Such a notice
is a contractual clause dissatisfied parties give as a first step towards
possibly dissolving a contract.
In May, the defaulting utility stopped buying power from Dabhol, saying it
was expensive.

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

California Governor's Spokesman Says He Bought Calpine Stock
2001-07-30 21:36 (New York)

California Governor's Spokesman Says He Bought Calpine Stock

     Sacramento, California, July 30 (Bloomberg) -- A spokesman
for California Governor Gray Davis said bought $12,000 worth of
stock in energy producer Calpine Corp. in June as the state was
working with the company to open new power plants and buying
millions of dollars a day in electricity.
     Davis spokesman Steve Maviglio purchased 300 shares of
Calpine on June 20 after putting in an order on May 31 to buy the
stock when it fell to $40, he said. The purchase is being reviewed
by the Governor's legal office, Maviglio said.
     ``These purchases were based on no knowledge of anything,
just public information about a growing California company,''
Maviglio said. ``I've informed the governor, the chief of staff
and our legal counsel today. I'd be glad to divest myself if
that's what required.''
     Maviglio also said he owns between $10,000 and $100,000 in
Enron Corp. shares, which he said he purchased in 1996. His
purchases came to light three days after California officials said
they fired five consultants hired to advise California on energy
after they disclosed that they owned shares of Calpine.
     The consultants worked for the Department of Water Resources,
which at the time was buying millions in electricity from Calpine
and other energy generators. California has spent almost $8
billion buying electricity for its two largest utilities, which
have been insolvent since January.
     Nine energy consultants were ordered by Davis's lawyer Barry
Goode last week to sell any energy-company stock they owned,
including shares of Enron Corp., Calpine Corp., and Dynegy Inc.,
after Secretary of State Bill Jones pressured Davis to release
details of their holdings.
     Jones said today in a statement that Maviglio should be fired
for the purchases.
     ``These actions are unethical, unconscionable, unacceptable
and heads should role,'' Jones said. ``Mr. Maviglio should be
fired immediately.''
     Jones has publicly called on Davis to force the 50
consultants hired by the state to disclose their holdings in
energy companies. Last week he urged the Securities and Exchange
Commission to investigate whether any of the consultants or
advisers traded stock based on non-public information.
     Maviglio said no one in the administration or at the
Department of Water Resources had been contacted by the SEC. ``No
one's been contacted either here or at DWR,'' Maviglio said.
     A spokeswoman for the SEC in San Francisco, Helane Morrison,
said the agency would not confirm or deny an investigation.
     Calpine shares are down 6.8 percent since June 20, when
Maviglio says he purchased the shares.


thanks.  it's too complicated for such a simple mind.  i'm gonna take a
pass.  how's things?

	Nancy Sellers <Nancy.Sellers@RobertMondavi.com>
	03/15/2001 10:40 AM

		 To: "'Marc Auble'" <MVA108@aol.com>, "'Glenn Auble'" <GAUB@aol.com>, "'Bobbi
Auble'" <BRAUB5@aol.com>, "'Eldon Sellers'" <Eldon@interx.net>, Cameron
<cameron@perfect.com>, Jeff Dasovich <Jeff_Dasovich@enron.com>, "Prentice @
Berkeley" <PSellers@haas.berkeley.edu>, Prentice Sellers
<PSellers@pacbell.net>, Scott Laughlin <scottwl@hotmail.com>
		 cc:
		 Subject: Picks

get your picks in for the first round by 9:30 our time
Nancy
(707) 251-4870 (phone)
(707) 265-5446 (fax)
"Plus je bois, mieux je chante"


Quick download on today's California conference call:

With regard to pending legislative activity,  our efforts should

1) not advocate for anything in the San Diego market that we would not want
to get in the SCE and PG&E markets;
2) push for a lock-in of the rate freeze in the SCE and PG&E markets through
at least 3/02, which will probably mean 12/02 to cover the summer of '02, but
resist extension through '03.  (No CTC extension, however.)

Specific legislative language will start showing up this weekend or Monday.

---------------------- Forwarded by Marcia A Linton/NA/Enron on 08/25/2000
04:03 PM ---------------------------

	Joseph Alamo @ EES
	08/24/2000 06:00 PM

To: California Government Affairs, Edward Hamb/HOU/EES@EES, Jennifer
Rudolph/HOU/EES@EES, Chris Hendrix/HOU/EES@EES, Greg Cordell/HOU/EES@EES,
Harold G Buchanan/HOU/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, Douglas
Condon/SFO/EES@EES, James M Wood/HOU/EES@EES, Gary Mirich/HOU/EES@EES, Dennis
Benevides/HOU/EES@EES, Roger Yang/SFO/EES@EES, David Parquet@ECT,
mday@gmssr.com, Paul Kaufman/PDX/ECT@ECT, Marcie Milner/Corp/Enron@ENRON,
Mary Hain@Enron, Harry Kingerski/HOU/EES@EES, James D Steffes/HOU/EES@EES,
Richard Shapiro/HOU/EES@EES, Peggy Mahoney/HOU/EES@EES, Karen Denne@Enron,
Mark Palmer/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Tim
Belden/HOU/ECT@ECT
cc: Lysa Akin/PDX/ECT@ECT, Ginger Dernehl/NA/Enron@Enron, Maureen
McVicker/NA/Enron@Enron, Marcia A Linton/NA/Enron@Enron
Subject: Conference Call Advisory/Invitation re: CA Legislative and
Regulatory Update

On behalf of Enron Host Bruno Gaillard, please consider this an invitation to
participate
in a conference call regarding California legislative and regulatory
updates.  You may join the call on:

 Date:    Friday,  August 25, 2000
 Time:    1:00 PM PDT/3:00 PM CDT/4:00 PM EDT
 Call-in Number:  1-877-233-7845
 Pass Code:   126069
 Host Code (Bruno only): 494209

Thanks in advance for your participation.

Joseph Alamo
Sr. Administrative Assistant
Government Affairs - The Americas
San Francisco CA


The Holiday Party is coming....
Planning is underway...

You have been selected to participate in a focus group.  You will be responsible for providing your opinions and ideas about the Holiday Party occurring on December 8th.


---------------------- Forwarded by Kay Mann/Corp/Enron on 01/10/2001 11:14
AM ---------------------------

Kay Mann
01/10/2001 10:14 AM
To: Lisa Bills/Enron@EnronXGate, Roseann Engeldorf/Corp/Enron@ENRON,
Catherine Clark/Enron@EnronXGate, Ben Jacoby/HOU/ECT@ECT, Fred
Mitro/HOU/ECT@ECT
cc:

Subject: Revised notices for CA I and CAII

I'm attaching the notices for CA I and CA II.  Please pay particular
attention to CA II, since it is the first time it has been circulated.
Obviously, we will need to insert the final purchase numbers.

Lisa, I set it up so ENA is consenting, which tracks the language in the DCMA.

Kay


David, I just received a call from Mark Whitt and Paul Lucci.  They have been advised by there banks that the cheques being deposited today will take 4 days to clear.  Although you have indicated that there are no issues related to these funds..... I am contacting you to see if there is any way to either authorize the wire immediatly or provide for a faster solution.  Thanks in advance and if you are able to do so, communicate response and cc me as required.    BT


Please find attached a credit worksheet for the above noted counterparty:

Randy Otto
Senior Credit Analyst

Enron Canada Corp.
3500 Canterra Tower
400 - 3rd Avenue S.W.
Calgary, Alberta
T2P 4H2

403-974-6716 (ph)
403-974-6706 (fax)


Dial in 1-888-385-5669
Participant #7688234

Rebecca C. Medley
(954) 768-8230
Assistant to Debbie M. Orshefsky
and Frank Schnidman

_______________________________________________________________
The information contained in this transmission may contain
privileged and confidential information.  It is intended only
for the use of the person(s) named above. If you are not the
intended recipient,  you are hereby notified that any review,
dissemination, distribution or duplication of this
communication is strictly prohibited. If you are not the
intended recipient, please contact the sender by reply email
and destroy all copies of the original message.

To reply to our email administrator directly, please send an
email to postmaster@gtlaw.com.


Hi Daren,
I spoke with Ricky Archer at Calpine about some penalty charges I billed him
for undertakes on Dec 20, 21, 31.
He said force majeure letters were sent to your attention.

If you have them, would you have someone fax a copy of those letters to met
at 713-646-8420?

Do you have any other information on the force majure or should I speak with
Jennifer?

Thanks for your help!


Start Date: 1/25/02; HourAhead hour: 20;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002012520.txt


Susan,

Attached is the completed book request form.  I just want to clarify a few
things.  The first three books are for Tagg.  The last two are for Sitara.  I
will need a region set up in CPR to hold the physical deals.  Do you do
this?  Or can you point me in the right direction.  I really need this
completed by the end of the week.  Let me know if there is something else I
need to do.  Thanks for your help.

DG    3-9573


Attached please find a general outline, as well as a more detailed summary,
of the Enron Gloal LNG's key LNG contracts and projects.  I'll be referring
to these documents in our discussions this morning.  Please let me know if
you have any questions or comments.

Kind regards,
Dan


Please see attached.

Michelle Lawless
Enron Litigation Unit
Tel:  (713) 853-6298
Fax:  (713) 853-6576


I missed this.  Looks like IT will not flow through St 90

---------------------- Forwarded by Chris Germany/HOU/ECT on 04/30/2001 09:32
AM ---------------------------

"CustomerNotices, WGPHOU" <WGPHOU.CustomerNotices@Williams.com> on 04/27/2001
10:23:39 AM
To:
cc:
Subject: Transco - Market Area IT Availability - May 1, 2001

Media Inquiries: Angela Mendoza
                 (713) 215-4098
Other Inquiries: John McGrath 713-215-2514April 27, 2001

To:     Transcontinental Gas Pipe Line Corporation Customers
        and Shippers

Re:     Market Area IT Availability  May 1, 2001

The available interruptible transportation service (IT and
secondary FT) on Transco for pipeline day Tuesday, May 1,
2001 and continuing until further notice is summarized as
follows:

Tier I and Tier II (only Sta. 90 through
Sta. 180 affected)                                      0 MDt/day

South Virginia Lateral Compressor Station 167           144 MDt/day

Tier III (Station 180 through East)                     0 MDt/day

Leidy at Centerville Regulator Station
(Only deliveries downstream of Centerville
regulator affected)                                     OPEN

Linden Regulator Station
(Located in Union County, New Jersey)                   50 MDt/day

Mobile Bay Lateral                                      162 MDt/day

As a result of unscheduled maintenance at Station 90 the packages will
be reduced as stated above.  This maintenance is expected to last 4-5
days.  Customers will be notified of a change in the availability of
interruptible capacity at Station 90 and Station 180 as soon as
possible.

The above available interruptible transportation service
refers to deliveries into the affected area that have
receipts upstream of the bottleneck or affected area.

If you have any questions, please call John McGrath at (713)
215-2514 or Donna C. Long at (713) 215-4061.

J. E. McGrath
Manager
Operations Planning

--------------------------ADDITIONAL X12 INFORMATION------------------------
Trans. Svc. Provider: 007933021 - TRANSCONTINENTAL GAS PIPE LINE CORPORATION
   Notice Identifier: L0104271
     Critical Notice: Yes
      Type of Notice: 8-Capacity Constraint
   Required Response: 5-No Response Required
   Resp By Date/Time: N/A
Notice Eff Date/Time: 04/27/01 10:18:57
Notice End Date/Time: N/A
              Status: 1-Initiate
 Prior Notice Ident.: N/A

 - C.DTF


Guys, it is my understanding that the incremental $5 MM in gas V@R, under an
interim authority, expires today.  Given current market conditions, I would
request  an extension of that interim limit - $45MM in total gas V@R for an
additional two weeks starting today.

Jeff, as per our meeting today, we may want to think about additional
permanent increases for gas and power V@R particularily given the Alberta
PPA's, the potential NStar deal and the current gas market as we enter the
winter season.  I will take your lead on this one.

Regards
Delainey


Rob, what is your view?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 01/05/2001
09:33 PM ---------------------------

	From:  Chris H Foster                           01/05/2001 06:26 PM

To: David W Delainey/HOU/ECT@ECT
cc: Tim Belden/HOU/ECT@ECT, Paul Devries/TOR/ECT@ECT, Rob
Milnthorp/CAL/ECT@ECT
Subject: Toronto Opportunity

Dave:

Just prior to the Holidays, I wrote an e-mail to Paul Devries (I copied you)
that outlined how my experience could help the Toronto office expand
business. As I indicated in my e-mail, my career interest, and my view of the
needs of the Toronto office, is for a role that would look more like cash
trading/services transaction management rather than pure coverage.  Paul and
I agree that there is not enough happening in the cash trading/services area
right now to warrant my move to Toronto.  We are hopeful that at some point
within the next year, this will not be the case and Garrett Tripp will find
himself too busy to effectively manage what needs to be done.  This probably
will occur soon after market opening, rather than before.  At that time, I
could be ready to go quickly.  If market conditions change so that my skills
are not a real good fit, than we would not make the move.  I am confident I
can stay abreast of Ontario market issues from Portland to limit any learning
curve once a move happens.

I think Paul is comfortable with this plan.  He was going to run it by Rob.
Please let me know if you are OK with this plan as well.

Thanks again for the consideration.

Chris


Dave:

Those are supposed to go out every day.  I don't understand why you would get
some and not others.  There is a little box we check on the deal entry that
we might have not checked.  We will make sure we are checking it (Kate?)
going forward.  For past days, can you use my e-mails?

Chris

	Enron Capital & Trade Resources Corp.

	From:  "Dave Myer" <dmyersierrapower@sosinet.net>
04/10/2001 09:00 AM

To: "Chris Foster" <cfoster@enron.com>
cc:
Subject: conformations

Good Morning Chris
I have only recieved one contract conformation since the 29th  of March. The
last one was for the 6th of April . If possible could I get these  for our
records .
Thanx Dave


Guys, it has been a pleasure to be a part of this group and work with some of the smartest people at Enron. I enjoyed and appreciated the opportunity to work with all of you. I have learned a great deal and I hope that will give me a good foundation for the future.
Good luck to all of you and Happy Holidays

Home: 713-862-6397
Cell: 832-264-6333
email: jtrostant@yahoo.com


I expect us to file bankruptcy today or tomorrow.  We will likely be defaulting on a lot of our December business.  There are some last ditch efforts going on, but I'm not very hopeful.  If we file bankruptcy, I think we'll all get at least 60 days pay.  There were supposed to be layoffs this week anyway.  I guess those will happen.  I don't know.  They may wait until we file bankruptcy and see what the bankruptcy court judge wants the company to do first.  Stay tuned....

 -----Original Message-----
From: 	Scharnberger-Armin@t-online.de (Heizungsbau Armin Scharnberger)@ENRON
Sent:	Thursday, November 29, 2001 7:47 AM
To:	Pereira, Susan W.
Subject:	r u there today?

Dear Susan

What's happening now?  It's all over the international news that Enron will
not make it.  what are they saying to the employees?

Thinking about you!
connie

**********************************************************************


Clean and redlined of final version


I talked to Tim Plouch(spelling?) yesterday and he tells me his clients have
been paid.


The following are my comments:

  - I assume that Settlements is fine with invoicing no later than the 7 th
of each mth.
  - Section M:  Should we go this route (covenant of financial support) or
would we be accomplishing the same if we structure this as MDEA, agent for
..., similar to that in the Interconnection Agmt.  We should probably look
into it further for the longer term deal.  I don't know which has the
stronger fall back to the municipalities.

Ed Sacks

Have a good rest of the weekend.

 -----Original Message-----
From:  Rorschach, Reagan
Sent: Friday, April 27, 2001 4:40 PM
To: Marvin Carraway (E-mail); Marvin Carraway (E-mail 2); Robert Priest
(E-mail); David Fairley (E-mail); David Fairley (E-mail 2); David Fairley
(E-mail 3); Bentley, Corry; Comeaux, Keith; Coulter, Kayne; Cross, Edith;
Fairley, David; Herndon, Rogers; Homco, Jim; Kumar, Madhup; Mann, Kay; May,
Tom; Miller, Jeffrey; Morse, Brad; Nicolay, Christi; Pagan, Ozzie; Podurgiel,
Laura; Reeves, Leslie; Sacks, Edward; Serio, Erik; White, Stacey; Will, Lloyd
Subject: FW: long form confirm/MDEA

Please send comments to Kay this weekend at both address below.

kay.mann@enron.com, kay.mann@worldnet.att.net

Thanks,

Reagan

 -----Original Message-----
From:  Mann, Kay
Sent: Friday, April 27, 2001 4:33 PM
To: Rorschach, Reagan
Subject: RE: long form confirm/MDEA

Here's where I am on the ILA.  I think it should be distributed internally
and to the Cities ASAP,  with an explanation that we are still pondering it.

Kay

 << File: MDEA ILA (Mann 4-27 draft).doc >>

Kay


I will be out tomorrow and Friday on business.  I will be available via mobile.

Paul Choi


(See attached file: newdaily.pdf)

      Carr Futures
      150 S. Wacker Dr., Suite 1500
      Chicago, IL 60606  USA
      Tel:  312-368-6149
      Fax:  312-368-2281
      soblander@carrfut.com
      http://www.carrfut.com
 - newdaily.pdf


She was going to revise the termination and bring it to me, but I haven't gotten it yet.

Marie

 -----Original Message-----
From: 	Diamond, Russell
Sent:	Wednesday, October 03, 2001 9:27 AM
To:	Heard, Marie
Subject:	RE: Fee Letter

Hey Marie,

Did you ever get a revised confirm from Diane, Derek and I talked to her yesterday after I talked to you.  She said she would revise the confirm.

Thanks,
Russell

 -----Original Message-----
From: 	Heard, Marie
Sent:	Wednesday, October 03, 2001 8:51 AM
To:	'hudsonr@teai.com'
Cc:	Diamond, Russell
Subject:	Fee Letter

Hi, Roeline!

Attached for your review is a draft of the proposed fee letter in connection with the assignments and terminations.  Please let me know if you have any comments.

Our Confirmation Desk is in the process of revising the termination of ENA Deal No. NL0619.1 to delete the fee reference, and I will forward it to you when ready.

Please let me know when you have signoff on the other documents and I will finalize and have executed by ENA and forward to you.

Thanks!

Marie

		 << File: 060ltr (torch).doc >>


---------------------- Forwarded by Doug Leach/HOU/ECT on 07/07/99 08:07 AM
---------------------------

Tito Giron@ENRON_DEVELOPMENT
06/23/99 05:39 PM
To: John H Harrison/HOU/ECT@ECT
cc: Hugo Barillas/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert
Figueroa/GCO/Enron@Enron@ECT, Otto
Garcia/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sergio
Gil/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Doug Leach/HOU/ECT@ECT, Marc De La
Roche/HOU/ECT@ECT, Michael Oehrle/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Carlos
F Ubieto/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: nicaragua

John,

Our situation in Nicaragua is that we are on hold pending authorization from
the government to start commissioning.  This is currently a delicate subject
and I do not want to receive fuel until we have started commissioning.

We have approx 15 days of fuel onboard to support commissioning, so I can
afford to postpone fuel delivery about two weeks after we start commissioning.

Therefore, what I am requesting is that EFI/Glencore allow me to provide a 10
day notice for the first fuel delivery to Nicaragua.  Physically we are ready
in that all the tanks, pipes hoses, etc... are in place.  This is a
commercial issue right now.

Please advise if a 10 day notice will be acceptable to EFI/Glencore.

Regards,

Tito

John H Harrison@ECT
06/23/99 12:28 PM
To: Hugo Barillas/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert
Figueroa/GCO/Enron@Enron, Otto Garcia/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Sergio Gil/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tito
Giron/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Doug Leach/HOU/ECT@ECT, Marc De La
Roche/HOU/ECT@ECT, Michael Oehrle/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Carlos
F Ubieto/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: nicaragua

per telecon with glencore this day no vessel will be committed to without
notifying enron first.  glencore   still looking for vessel for delivery
window
of 30 jun-04 jul(per telecon with tito previously).
please keep my advised of any changes in requested delivery window.
thanks,


I will be out of the office beginning Thursday, 12/24, returning on Tuesday,
1/4.  In my absence, I have asked Steve Venturatos to be the point person for
Texas Operations.

I realize that many of you will be working over the New Year's week-end to
ensure a smooth transaction into the new year.  In advance, I truly
appreciate all of the efforts.  Additionally, I would like to be kept
informed on any critical issues, mainly so that I have no surprises when I
return.  Therefore, I have provided numbers below where I can be reached.  I
will leave it to your discretion as to whether you call me or leave me a
voice mail in the office.  As you all know, I would rather be informed than
surprised!

Pager  877-497-3757
Cellular  713-417-2995
Home  970-920-2293 &
  970-920-2294

Thanks to each of you for your dedication.  I hope each of you have a
wonderful and safe holiday!


GARY AND GARY PLEASE ENTER YOUR FREE AGENTS ON THE WEB SITE SO I CAN APPROVE
THEM, I AM LEAVING EARLY TOMORROW

Gary Lamphier
P. Holmes  31
J. Allen   21
S. Jefferson  36
D. Ward   11

Gary Taylor
J. Plummer  19
Howard    7


SHirley,

Can you, please, contact her regarding the time of the meeting?

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/31/2000
11:50 AM ---------------------------

"Faiz, Soussan" <faizs@texaco.com> on 03/30/2000 02:31:18 PM
To: "'vkamins@enron.com'" <vkamins@enron.com>
cc:
Subject: Houston visit

Dear Vince,

Greetings from NY & hope all is well.  As you may recall from the ROG real
options conference in NY, I'd indicated the opportunity to visit with you
next time I'm in Houston.  I'll be there during 4/18-4/21 & wonder if we can
pls meet on Wed. 4/19 in your offices.  Would appreciate it if you can pls
let me know whether you're available then (I'm flexible on the schedule
particulars).  If not, pls let me know whether 4/18 (afternoon), 4/20
(afternoon), or 4/21 (morning) will work for you.

I really look forward to the opportunity & would appreciate to learn more
about how you've instigated the real options thinking in Enron and
especially its integration within the organizational & incentive matters.

Many thanks,
Soussan Faiz
Mgr. of Global Valuation Services
Texaco Inc.
(914) 253-4187