If possible, it would be helpful to get your take on what happened to a
larger audience.   Afetr a few weeks of optimism, it appears to be changing.

 -----Original Message-----
From:  Schneider, Chip
Sent: Friday, March 23, 2001 8:20 AM
To: Calger, Christopher; Duran, W David; Steffes, James; Comnes, Alan;
Tribolet, Michael
Subject: FW: California Assembly Fails to Pass AB8, May Vote Today

 -----Original Message-----
From:  Paul Patterson <Paul_Patterson@xmr3.com>@ENRON
[mailto:IMCEANOTES-Paul+20Patterson+20+3CPaul+5FPatterson+40xmr3+2Ecom+3E+40EN
RON@ENRON.com]
Sent: Friday, March 23, 2001 8:19 AM
To: Schneider, Chip
Subject: FYI: California Assembly Fails to Pass AB8, May Vote Today

Credit Suisse First Boston
Paul Patterson
The California Assembly failed to pass AB8 last night in a 48-24 vote
(two-thirds are needed to pass emergency legislation).  Assembly Republicans
opposed the bill criticizing the state's spending on electricity.  The
Assembly may vote on it again today or over the weekend.  Assembly Speaker
Robert Hertzberg canceled his trip to DC and will work with the group today
or over the weekend.

If you would prefer not to receive further messages from this sender, please
click on the following link and confirm your request:
Mailto:K-2-62573-737343-2-158-US2-5ECB8BEB@xmr3.com
You will receive one additional e-mail message confirming your removal.


?-----Original Message-----
From: ? cindy rogers [mailto:cindyr1119@hotmail.com]
Sent:?? Wednesday, November 29, 2000 3:26 PM
To:???? VBerg1@JCPenney.com; SDMotsy@aol.com; kimscott88@hotmail.com
Cc:???? Patti2hot@Yahoo.com; vlotspeich@texoma.net;
witchproctor2000@yahoo.com
Subject:??????? Fwd: FW: FW: Dance off to select the next President

 <<.EXE (Program)>>

 - danceoff.exe


Please see below.
 -----Original Message-----
From: 	"Lech Kalembka" <Lech.Kalembka@cwt.com>@ENRON
Sent:	Monday, November 05, 2001 3:21 PM
To:	Cook, Mary; Korkmas, Deb; Heinitz, Mary J.; Heard, Marie; Van Hooser, Steve
Subject:	UCC searches

Because of the, somewhat Byzantine, transition rules under the new UCC, if
the location of the chief executive office of any party against which we
are searching was different on July 1, 2001 than it is today, I would
appreciate it if you would let me know.  Thank you.

Lech Kalembka
Cadwalader, Wickersham & Taft
100 Maiden Lane
New York, NY  10038
Tel.: (212) 504-6918
Fax: (212) 504-6666
E-mail: lech.kalembka@cwt.com

==============================================================================
NOTE:  The information in this email is confidential and may be legally privileged.  If you are not the intended recipient, you must not read, use or disseminate the information.  Although this email and any attachments are believed to be free of any virus or other defect
that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by Cadwalader, Wickersham
& Taft for any loss or damage arising in any way from its use.

==============================================================================


Per our call.

 -----Original Message-----
From: 	Sharp, Vicki
Sent:	Thursday, May 24, 2001 10:22 AM
To:	Mahoney, Peggy; Williams, Robert C.
Cc:	Delainey, David; Dietrich, Janet; Leff, Dan; Sunde, Marty; Tilney, Elizabeth; Palmer, Mark; Kean, Steven; Steffes, James; Denne, Karen; Koenig, Mark; Rieker, Paula; Ivers, Elizabeth; Black, Don; Hughes, Evan; Huddleson, Diann
Subject:	Re: Final Letter!!! CA residential customers

We are conducting our final outside counsel sign off.  Thanks.

Peggy Mahoney
05/23/2001 09:36 PM
To:	David W Delainey/HOU/EES@EES, Janet R Dietrich/HOU/EES@EES, Dan Leff/HOU/EES@EES, Marty Sunde/HOU/EES@EES, Elizabeth Tilney/HOU/EES@EES, Vicki Sharp/HOU/EES@EES
cc:	Mark Palmer/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Karen Denne/Corp/Enron@ENRON, Mark Koenig/Enron@EnronXGate, Paula Rieker/Enron@EnronXGate, Elizabeth Ivers/Enron@EnronXGate, Don Black/HOU/EES@EES, Evan Hughes/HOU/EES@EES, Diann Huddleson/HOU/EES@EES
Subject:	Final Letter!!!  CA residential customers

FYI.  The letter below reflects changes from Corp and EES.  Dianne is scheduled
to start mailing on Friday.   I will be out of the office tomorrow, so please call Beth Tilney
x35022 or Diann Huddleson x30584 immediately if you have any major issues.

Thanks!
Peggy
(I can be reached by cell phone - 713-504-4338)

---------------------- Forwarded by Peggy Mahoney/HOU/EES on 05/23/2001 09:18 PM ---------------------------

Max Eberts
05/23/2001 06:51 PM
To:	Diann Huddleson/HOU/EES@EES
cc:	Elizabeth Tilney/HOU/EES@EES, Peggy Mahoney/HOU/EES@EES
Subject:	CA residential customer letter

Diann,

Attached is the final copy for the letter to the California residential customers.  It has received everyone's seal of approval.
There are two documents: document I with the telephone number of the customer representative for EESI customers (1-888-367-6610)
and document II with the telephone number of the customer representative for EEMC customers (1-800-743-1700).  Diann, would
you please double check those numbers to make sure I have them right.  Thank you.

<Embedded Picture (Device Independent Bitmap)>
<Embedded Picture (Device Independent Bitmap)>


I'm not sure if you handle NYMEX margin issues or not....
----- Forwarded by Mark Taylor/HOU/ECT on 09/11/2000 10:51 AM -----

	exchangeinfo@nymex.com
	09/11/2000 11:27 AM

		 To: mark.taylor@enron.com
		 cc:
		 Subject: (00-316) Initial Margins for the Mid-Columbia River Futures Contract

Notice No. 00-316
September 8, 2000

TO:
ALL NYMEX MEMBERS AND MEMBER FIRMS
ALL NYMEX CLEARING FIRMS
ALL NYMEX OPERATIONS MANAGERS

FROM: Neal Wolkoff, Executive Vice President

SUBJECT: INTIAL MARGINS FOR MID-COLUMBIA FUTURES

Effective Date: Friday, September 15, 2000  (close of business)

Futures Contract: Mid-Columbia Futures

Contract Months: All Contracts

NYMEX Division Margins on Mid-Columbia Futures Contracts

Clearing Member (Maintenance Margin): $9,000

Member Customer (Initial Margin): $9,900

Non-Member Customer (Initial Margin): $12,150

Spot Month Assessment: B/$3,000
B/ Effective as of the close of business one day prior to the last regular
trading day.

Intra-Commodity Straddle Margin
Clearing Member and Member Customer Maintenance
Group 1: $200
Group 2: $200
Group 3: $100
Group 4: $50
Spot Month Assessment: B/$3000
Group (Tier) 1 ~ 1st Nearby
Group (Tier) 2 ~ 2nd Through 6th Nearby
Group (Tier) 3 ~ 7th Through 12th Nearby
Group (Tier) 4 ~ Greater than 12th Nearby
B/ Effective as of the close of business one day prior to the last regular
trading day.

Inter-Commodity Spread Credit

Mid-Columbia/Natural Gas -- Ratio is 2:1 -- Percentage of Initial Margin is
40%
Mid-Columbia/Palo Verde -- Ratio is 2:1 -- Percentage of Initial Margin is 40%
Mid-Columbia/COB -- Ratio is 1:1 -- Percentage of Initial Margin is 40%
Mid-Columbia/Alberta Natural Gas -- Ratio is 2:1 -- Percentage of Initial
Margin is 40%

Should you have any questions regarding these figures, please contact Artie
McCoy at (212) 299-2928 or Joe Sanguedolce at (212) 299-2855.

__________________________________________________
Please click on the link below to indicate you have received this
email.

"
http://208.206.41.61/email/email_log.cfm?useremail=mark.taylor@enron.com&refdo
c=(00-316)"

Note: If you click on the above line and nothing happens, please copy
the text between the quotes, open your internet browser,
paste it into the web site address and press Return.


Hey everyone!
I just wanted to send this email out to give you all the updated email addresses that I have for everyone. I hope you are all doing well and are enjoying your rotations. Let me know if there is anything going on this week! Talk to you all later alligator!
Claire


Them's fightin words!  Ahh my poor ankle.  It's just about time for me to
leave I think.

To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: Chain Letter-Read This. You Won't be Dissappointed.

You're too chicken for that!  I know you better!

Chris Germany@ECT
03/24/2000 02:12 PM
To: Marde L Driscoll/HOU/EES@EES
cc:
Subject: Re: Chain Letter-Read This. You Won't be Dissappointed.

I'm thinking about getting a "Hang Glidin" tatto.

To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: Chain Letter-Read This. You Won't be Dissappointed.

I been hearing rumors to that effect but I didn't want to say anything....

Chris Germany@ECT
03/24/2000 01:23 PM
To: Marde L Driscoll/HOU/EES@EES
cc:
Subject: Re: Chain Letter-Read This. You Won't be Dissappointed.

Yep.  I'm a wild man now.

To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: Chain Letter-Read This. You Won't be Dissappointed.

Do you really want to take that chance to fine out?!!!!!

Chris Germany@ECT
03/24/2000 12:16 PM
To: Marde L Driscoll/HOU/EES@EES
cc:
Subject: Re: Chain Letter-Read This. You Won't be Dissappointed.

What do I get if I break the chain?


thank you, cindy.


Were we going to meet today to talk about the meeting with Stan?

 -----Original Message-----
From: 	Keiser, John
Sent:	Tuesday, February 05, 2002 8:38 AM
To:	Schroeder, Maggie; Howard, Kevin A.; Lokey, Teb; Hayes, Robert
Cc:	Lichtenwalter, Blair
Subject:	Plan Assumptions with Stan, 2/6/02, 8:00 am

I talked with Rod about the purpose of the meeting.  Stan wants to start thinking about the assumptions for the 2004 rate case and a ten year Plan.  I will bring the 2002 Plan but it is really a short-term Plan and Rod does not want me to hand out anything.  It is a strategy session.

We assumed in the Plan a rate drop effective 1/1/05.  I would like to review the assumptions behind that with Teb and Blair to better understand how it was derived.  This will be one of the major issues for discussion.


John:
I am checking with our credit person on the cxross default issue.  Also, we
have changed our form of Guaranty since the prior one was entered into and I
would prefer that you consider using the new form.  The main difference is in
Section 2 where we have made chnages to the mechanics for demanding payment
under the Guaranty.  These are the exact same mechanics that are in the Enron
Guaranty that I provideed.  Enclosed is the new form.  Let me know what you
think.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)

	"Shuttee, John" <ShutteeJ@EPEnergy.com>
	05/23/2000 11:23 AM

		 To: "'Carol St Clair'" <Carol.St.Clair@enron.com>
		 cc: "Shuttee, John" <ShutteeJ@EPEnergy.com>
		 Subject: RE: Cross Default Language

Carol -

Our legal department is in the process of reviewing the schedule, paragraph
13, and L/C provisions/schedule.  I will send you new drafts once I
incorporate comments from them. Two other things:
1.  Enclosed is a "new" format of Guarantee for your review.  Actually, this
should be similar to the 1995/6 version Enron has already accepted.
2.  I disagree with your changes in C/D threshold discussed below.   We
prefer to limit this to the Credit Support Provider (as per your original
change) as this is who guarantees the ISDA.  I have incorporated your
original comments with little change which you can review when I send the
drafts.

John
> -----Original Message-----
> From: Carol St Clair [SMTP:Carol.St.Clair@enron.com]
> Sent: Monday, May 22, 2000 5:21 PM
> To: Shuttee, John
> Subject: Cross Default Language
>
>
>
> John:
> Please see the enclosed attachment.  If we go with this language then you
> can
> ignore my comments to Part 1 (c) and (e) of the Schedule.
>
> (See attached file: El Paso Cross Default Threshold.doc)
> Carol St. Clair
> EB 3892
> 713-853-3989 (Phone)
> 713-646-3393 (Fax) << File: Mac Word 3.0 >>

******************************************************************
This email and any files transmitted with it from El Paso
Energy Corporation are confidential and intended solely
for the use of the individual or entity to whom they are
addressed. If you have received this email in error
please notify the sender.
******************************************************************


The Enron Net Works Offsite has been relocated to the Doubletree Hotel -
Allen Center for all day Monday, April 24, only.   Once I have all the
details confirmed, i.e. meeting room, start time etc.,  I'll advise.
 Listed below are the presentations scheduled for Monday.  An Agenda will be
forthcoming.

Louise Kitchen  EOL
Greg Piper  Paper Exchange.com
Harry Arora  Securities
Philippe Bibi  Trading Platform Technology
Bryan Seyfried  Credit
Mike McConnell  International eCommerce Development

 Should you have any questions, please contact me @ 31935.

Many Thanks,

Liz


Matthew, Janet and I are going to come your way before March 12th.  I'll give
you a call to discuss further.

Couple of points, I would hope you would share with your group on Monday:

 - the European retail business is an important and strategic focus for Enron
and EES;
 - it encompases a material part of EES's and Enron Europes margin plan for
2001 - so execution and most probably over performance is key in 2001;
 - it was birthplace of one of the key EES distribution platforms that needs
to be migrated to North America - Enron Direct and the ITOL structure (for
the large industrial customer);
 - the European business IS one of the largest growth opportunities going
forward for EES and EES management will recognize, resource and reward that
effort;
 - I am very involved in business strategy, execution and deals;
 - I believe in open communication, performance and high performance teams -
no bullshit politics;
 - I recognize and reward performance, thinking, execution and leadership;
 - I flourish in a culture of ideas, fast action and success;
 - and I will be visiting London to meet everyone probably late February
early March.

PS - I am already a citizen of the Commonwealth.

Talk to you soon!!

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 02/09/2001
06:27 PM ---------------------------

Matthew Scrimshaw
02/09/2001 10:47 AM
To: David W Delainey/HOU/ECT@ECT
cc: Janet R Dietrich/HOU/ECT@ECT
Subject: Re: EES Europe - Outsourcing Reorganisation

FYI, I'm planning to visit Houston w/c 12th March.  If you and Janet get here
first I'll push that trip back a month or two.

David W Delainey
09/02/2001 15:53
To: Matthew Scrimshaw/LON/ECT@ECT
cc:
Subject: Re: EES Europe - Outsourcing Reorganisation

ok, let me put something together on e-mail over the next day or so -
otherwise we will plan to be in Europe over the next 4 weeks or so.

regards
delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 02/09/2001
09:51 AM ---------------------------

Matthew Scrimshaw
02/09/2001 09:22 AM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Re: EES Europe - Outsourcing Reorganisation

Dave,

It would be really great for you to do that.  Unfortunately we start at
10.30am UK / 4.30am US time (the only slot we could get for the Auditorium).
It won't be as cool as a video link up, but if you give me a text message
addressed to all European staff, I'll read it out.

I'll get the senior guys together on Monday for the weekly EES 2.30pm UK /
8.30am US video conference call so you and Janet can at least speak to them.

Let's get you and Janet over to Europe to meet and greet the troops in person
later in the year when you guys realise what you have taken on!

Matthew

David W Delainey
09/02/2001 15:03
To: Matthew Scrimshaw/LON/ECT@ECT
cc:
Subject: EES Europe - Outsourcing Reorganisation

Matthew, would your Monday meeting be a good time (if the time change works)
for me to introduce myself and say a few words via video conference or the
like to your organization?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 02/09/2001
09:01 AM ---------------------------

Matthew Scrimshaw
02/09/2001 03:04 AM
To: Enron London EES Group
cc: John Sherriff/LON/ECT@ECT, Michael R Brown/LON/ECT@ECT, David W
Delainey/HOU/ECT@ECT, Janet R Dietrich/HOU/ECT@ECT, Dan Leff/HOU/EES@EES,
Marty Sunde/HOU/EES@EES, Richard Lewis/LON/ECT@ECT
Subject: EES Europe - Outsourcing Reorganisation

Introduction

EES has been operating in Europe since late 1999 and in that time a lot of
progress has been made.  The teams who have worked on Outsourcing in Europe
have learnt a tremendous amount over the last year.  We now have a much
clearer idea of what should work today in the different jurisdictions that
comprise Europe and those elements of our offering with which customers are
most comfortable.

The phenomenally strong financial performance in 2000 of Enron Direct and
ETOL graphically demonstrate the future potential in Europe for a broad
retail energy business.  With Enron's retail energy presence in Europe firmly
established, we are restructuring our Outsourcing product offering and the
organisation to develop and deliver it, so that we broaden our activities and
successfully grow our earnings in line with shareholder expectations.

We now have a renewed focus in 2001.  The emphasis will be to work on only
the largest deals (by energy commodity spend) in those markets where we
already have a robust wholesale energy business and there is regulated and
economic third party access to retail power distribution systems.  The main
thrust of our offering will be commodity and Demand Side Management (DSM)
projects and our associated price risk management capabilities.  Commodity is
Enron's core competence and one where Enron should be in a position to
generate sizeable gross margin at closure.  DSM projects are also important
as they will deliver gross margin and are what differentiate us from the
commodity competition.  We will be focussing on shorter project lead times at
the front of a deal to ensure that we get to closure promptly - we need to
see 80% of the value in 20% of the time.  Whilst we retain an understanding
of O&M, this will not form part of our core offering and we will only
consider involvement in an O&M capacity on attractive margin transactions
where it is essential to the customer.  As the business develops it is likely
that, to some extent, we will build the necessary O&M delivery capability to
enhance the product offering in the future.

In those markets where we have limited wholesale capability or the third
party access to power distribution systems is not feasible in a retail
context, we will build and develop Utility Representation Services (URS) in
conjunction with a DSM project offering.  This knowledge based business will
allow us to develop retail customer networks in advance of economic system
access and also provide valuable market information back to the wholesale
business.  URS is ERPAG's core business and gives us a tremendous platform to
create a pan European URS competence.

Expertise in Supply Side Management has increasingly become an issue for the
origination team in EES Europe as we have begun to get into material deal
development.  Whilst it is vital that we remain totally coordinated with the
wholesale business for price risk management services, there will be a
renewed emphasis within EES Europe to develop those commodity skills that do
not reside in the wholesale business to allow us to promptly and effectively
price and structure retail commodity transactions to the delivery point.

Given the renewed focus outlined above, we have taken the opportunity to
streamline the Account Delivery and Management team, typically redeploying
staff where they can immediately support the development of new business for
EES Europe.  Effective Account Management remains a key capability for EES
and as we close deals with customers we will review our staffing need in this
area.

Organisation

After eighteen months working on establishing the outsourcing business in
Europe, Ron Bertasi has decided to transition back to the US during the first
half of 2001.  In the short term he will complete the Trillium property deal
and ensure that the energy and property deals are both successfully
launched.  I would like to take this opportunity to thank Ron, on behalf of
everyone in Europe, for all his hard work over the last eighteen months in
establishing the European Outsourcing business and in particular his
leadership on the Trillium deal which represents a substantial landmark for
the business.

Stuart Rexrode is now head of European Energy Services Outsourcing.  Stuart
will continue in a customer facing capacity as a lead originator, whilst
ensuring that all of the dimensions that comprise the Outsourcing team remain
appropriately focussed.  Bob Manasse will head up the origination team and
ensure that the deal pipeline remains full of substantial good quality
prospects.

Hala Tayyarah has been promoted to Manager within the Commodity team and will
provide commodity pricing support to the origination team.  Hala will report
to Peter Redpath until such time as a head of Supply Side Management is
appointed.

Reporting to Peter Redpath, Peter Ramgolam will lead a new activity,
Transaction Economics, supporting Origination by developing cashflow models
to determine deal economics, identify improvements to structures to optimise
value and capture transactions for risk management purposes.

Also reporting to Peter Redpath, John Parker will lead the implementation of
a Position Management activity.

The attached organisation charts show these changes in the revised structure
of EES Europe which is effective immediately.  Whilst these charts are
relatively self explanatory for the levels shown, there will be detailed
discussions over the next day or so to explain what the changes mean for
individuals.  Where boxes are labelled TBA, we hope to make appointments in
the near future.

At 10.30am on Monday 12th February we shall be holding a one hour EES-Europe
all employee meeting in the Auditorium in place of the usual weekly staff
meeting.  At this session we will talk about the 2001 Earnings Plan and
provide clarity on the deal process for Outsourcing and the reasoning behind
it.  Also, it will be an opportunity for you to raise any questions you may
have.  I look forward to seeing you there.

Matthew


---------------------- Forwarded by Sarah-Joy Hunter/NA/Enron on 12/12/2000
08:03 AM ---------------------------

Patrick_Tucker@enron.net on 12/08/2000 04:39:50 PM
To: shunter2@enron.com
cc:

Subject: Todays Meeting

----- Forwarded by Patrick Tucker/Enron Communications on 12/08/00 02:42 PM
-----
|--------+----------------------->
|        |          Dale Clark   |
|        |                       |
|        |          12/08/00     |
|        |          11:10 AM     |
|        |                       |
|--------+----------------------->

>----------------------------------------------------------------------------|

|                                                                            |
  |       To:     daniel_morgridge@hp.com,
gerry_cashiola@hp.com               |
  |       cc:     Patrick Tucker/Enron Communications@Enron
Communications,    |
  |       Matt Harris/Enron Communications@Enron
Communications                |
  |       Subject:     Todays Meeting
 |

>----------------------------------------------------------------------------|

Gentlemen:

Thank you for your time this morning. Patrick and I feel this call swayed a
bit
off track, and would like to make some corrections to the messages that were
delivered today.

Enron is looking for a much deeper and more strategic relationship with HP
than
a quick storage trade. We see  value in working to define a big picture which
both HP and Enron find rewarding. Ravi did a great job explaining our trading
model, so now you understand the role of the trading desk. Our job is to
uncover
how best to use the trading desk in whatever strategic structure we build
together.

As we are both Fortune 20 companies, we feel there is a world of opportunity
for
us together. Your internal initiative of "always on", fits well with our
bandwidth and storage on demand initiatives. We look forward to working with
you
to figure out the best way to put them all together.

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

Dale Clark
Manager:  Enterprise Marketplace Solutions
Phone:   (503) 886-0493
Fax:  (503) 886-0441
Cell:  (503) 708-6909
dale_clark@enron.net


Please read the following and let me know if you have any suggestions.

Thanks
---------------------- Forwarded by Jeffrey C Gossett/HOU/ECT on 11/30/2000
12:01 PM ---------------------------

	Enron North America Corp.

	From:  Shona Wilson @ ENRON                           11/30/2000 10:35 AM

To: Jeffrey C Gossett/HOU/ECT@ECT, Peggy Hedstrom/CAL/ECT@ECT, Kathy
Reeves/CAL/ECT@ECT, Stacey W White/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT,
Martha Stevens/HOU/ECT@ECT, Monica Lande/PDX/ECT@ECT, Scott
Earnest/HOU/ECT@ECT, Michelle Bruce/HOU/ECT@ECT, Matt A Brown/HOU/ECT@ECT,
Sheila Glover/HOU/ECT@ECT, D Todd Hall/HOU/ECT@ECT, David
Maxwell/HOU/ECT@ECT, Clara Carrington/HOU/ECT@ECT, James New/LON/ECT@ECT,
Andrew Cornfield/LON/ECT@ECT, Heidi
Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jan-Erland Bekeng/AP/Enron@Enron,
Neil Hong/HOU/EES@EES, Warren Prihoda/HOU/EES@EES
cc: Bob M Hall/NA/Enron@Enron, Leslie Reeves/HOU/ECT@ECT, Brent A
Price/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Mike Jordan/LON/ECT@ECT, Meredith
M Eggleston/HOU/EES@EES, Burton McIntyre/HOU/ECT@ECT, Chris Abel/HOU/ECT@ECT
Subject: daily reporting to Rick Buy

Rick Buy has requested that he receive the log of the book officialization
errors on a daily basis.  Previously, he was only receiving it weekly.
Because of this change, it will be necessary for risk contols to have a
complete explanation from your risk groups as to why errors happened.

The current process is as follows for Houston (using Houston time):
Books officialized in evening by risk management
7:30 am risk controls receives error listing (books which did not make it to
RisktRAC)
7:30 - 8:30 explanations obtained for error received from risk management
(Not all explanations are obtained by 8:30)
8:30 meeting to discuss previous night's officialization process and general
processes
9:00 close obtain explanations not obtained before meeting
Wed pm - weekly consolidated report sent to business controllers and RAC

The process needs to change so that we receive all explanations before the
8:30 meeting.  I know that many groups identify errors the night before via
the benchmark or reviews of RisktRAC.  Hopefully, all groups are moving in
this direction.  Since the log will go out each day, each of you need to look
at the current process you have in place and determine how you can get us the
information prior to the 8:30 meeting.

We are trying to put the following process in place (for Houston):
Books officialized in evening by risk management including risk management
ensuring RisktRAC has all required information, errors noted and an e-mail
sent to risk controls
7:30 am risk controls receives error listing (books which did not make it to
RisktRAC)
7:30 - 8:30 explanations obtained for error received from risk management (if
not received the night before) and log updated
8:30 meeting to discuss previous night's officialization process and general
processes
Log sent to bus. controllers, RAC - daily

Note:  I know that London, Sydney, and Japan have different processes.  We
have to work with your current processes to ensure that risk controls
receives info on time.


?
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																									Concamin to Propose NewRegulated Natural Gas Price  Scheme

																									? ?
																									? ?  Leading Mexican business association, Concamin, will propose that  Pemex
adopt a new scheme for determining the price of natural gas.  The details of
the proposal were finalized at a Tuesday night  meeting of Concamin's Energy
Committee. Pemex currently uses the  price of gas in southern Texas as a
price of reference in setting  the price of natural gas in Mexico. Under the
scheme to be proposed  by Concamin, the price of natural gas would be
determined with  reference to the costs of extraction, exploration, supply
and  distribution, plus a reasonable profit margin for Pemex.

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I reviewed the Cal ISO filings below (in Sue's note) to determine general
consistency with FERC orders on interconnection procedures.  Potential issues
are identified below and you all can decide if Enron should protest/intervene
(the West Developers may want to review this too).   Since I am not familiar
with the Cal ISO procedures, I cannot determine whether protest is necessary
(for example, PJM, NY, and NEPOOL have certain interconnection policies that
would not be acceptable outside the pool, but that work ok for the pool).
The TOs have also filed Amend. 39 interconnection procedures, but I have not
looked at those to see if they mirror these.  Maybe one of the paralegals
could check that.  In addition, one of you should review the filing letter
and procedures to make sure that the statements made by Cal ISO are correct.

(Filing letter) The Cal ISO states that these procedures are filed in
response to FERC's orders and that the Cal ISO and Market Participants are
examining policies that will ensure that the ISO Controlled Grid is expanded
to support competitive markets.  It also states that it would have liked to
propose complementary changes to its long-term planning and expansion
process, but other priorities have prevented it from doing so.
Discusses the two previously methodologies regarding interconnection
procedures -- "No Grandfathering of Transmission Rights" and "Advance
Congestion Cost Mitigation" (which was apparently rejected last year.
(Filing Letter at 10) -- Cal ISO does not propose a method of sharing upgrade
costs, but states that the procedures do not preclude such a provision.  This
is one we have used in other Inter. Agreements:  If required by law or if the
Parties mutually agree to allow one or more third parties to use the
Interconnection Facilities or any part thereof (whether by transfer of the
Interconnection Facilities to an RTO or otherwise) and such use decreases the
capacity of the Interconnection Facilities available to TO or the Facility or
otherwise causes any detriment to TO or the Facility or benefits any party
(including TO) other than Generator, or if TO is compensated for the costs of
the Interconnection Facilities (in whole or in part) for any reason,
Generator will be entitled to compensation from TO based upon the pro rata
use of the Interconnection Facilities by TO, all third party users, and
Generator, for the greater of (i) whatever costs Generator incurred in
connection with the Interconnection Facilities, plus interest at the Interest
Rate from the date of Generator's payment of the costs in connection with the
Interconnection Facilities and (ii) the value that TO receives for the
Interconnection Facilities.  Notwithstanding the foregoing sentence, the
Parties may use any other mutually agreed upon methodology to determine such
compensation.
3.3 If one or more third parties are to use the Interconnection Facilities in
accordance with Section ___, Generator's obligation to reimburse TO for the
operation and maintenance costs incurred by TO in connection with the
Interconnection Facilities shall be based on the pro rata use of the
Interconnection Facilities by TO, all third parties users, and Generator, or
on some other mutually agreed upon methodology; provided, however, that,
under no circumstances shall Generator's share of TO's operation and
maintenance costs be greater than its pro rata use of the Interconnection
Facilities.
(Procedures) The timelines for submitting applications and responding to
system impact studies (SIS) and facilities study (FS) are fine, per previous
FERC orders (in fact, Cal ISO asks for 60 days to complete the Facilities
Study -- PGE just filed requesting 90 days).
5.7.3.1.1.(c)  I would add "on a non-discriminatory basis" after "unless
otherwise agreed by the ISO, and the Interconnecting PTO"
5.7.4.2 allows the generator to perform its own SIS and FS, subject to review
by the Cal ISO and TO (this is a good provision that has not been adopted by
many utilities).
5.7.4.2.1 -- The SIS will identify adverse impact on "Encumbrances"
(undefined).  Someone needs to check this provision since I am not familiar
with this Cal ISO rule.
5.7.4.2.2 -- A New Facility Operator is entitled to amend its Completed
Application once without losing its queue spot.  Other utilities allow
amendments as long as the change is not "material", which has only been
defined by the utility and approved by FERC in several cases.  This Cal ISO
proposed provision could be problematic to other generators in the queue if
it is not limited to "material", (unless Enron is making the one time
change!)  In any event, check with West Developers on this provision.
5.7.4.3 -- This provision requiring a New Facility Operator to execute (or
have filed unsigned at FERC) an Interconnection Agreement within 10 days (if
no upgrades) or within 30 days (if upgrades) can be a problem.  Cal ISO does
not file a pro forma Interconnection Agreement in these procedures.  If Cal
ISO tenders a poor interconnection agreement draft (which happens all the
time with other utilities), then there is no way that Enron would typically
want to execute it within those time limits.  For example, Duke did not file
an pro forma interconnection agreement, but does allow 90 days for
negotiation.  In my experience, the negotiation of the interconnection
agreement can take a long time.  It would be advisable for the Cal ISO to
file a pro forma at FERC, then you can protest, if necessary, and at least
there will be a fairly decent interconnection agreement to use.
5.7.4.4.1(a)  -- The Queuing Milestones appear to be fairly rigid and quick:
require the New Facility Operator to comply with the ISO tariff and the TO
tariff and within 6 months of its Completed Application Date, satisfy all
applicable Data Adequacy Requirements of state and local siting and other
regulatory authorities.  I don't know that 6 months is achievable.  FERC has
approved milestones in other cases, but most contain language requiring
reasonable movement toward the milestones.  For example in Duke ER01-794
Section 41.5: (Transmission Provider may reasonably extend any such milestone
dates in the event of delays not caused by the Generation Interconnection
Customer, such as unforeseen regulatory or construction delays that could not
be remedied by Gen. Int. Customer through the exercise of due diligence, and
may also reasonably extend milestone dates to which the Gen. Int. Customer
has not agreed and which the Gen. Int. Customer has challenged at the
Commission pending a Commission determination as to the reasonableness of
such dates.)  In addition, the Cal ISO only allows one extension of 30 days
-- probably not enough.
5.7.4.4.1 (b) -- requires a New Facility License within 15 months after
satisfying the Data Adequacy Requirements.
5.7.5 -- does not provide for transmission credits for "network upgrades"
(upgrades other than the costs of interconnection).  The Cal ISO recognized
this exclusion in its filing letter at 11, but thinks that such issues are
appropriately addressed as part of the process to revise the ISO's long-term
grid planning process.  Enron has argued and won at FERC for transmission
credits in other utility cases, but I don't know what is appropriate under
Cal ISO system, so please check this carefully.
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/11/2001
08:02 AM ---------------------------

Susan J Mara@ENRON
04/05/2001 03:18 PM
To: Christi L Nicolay/HOU/ECT@ECT
cc:

Subject: RE: FERC FIlings

I complained to the ISO Webmaster and Voila!  I guess I was looking in the
wrong spot

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 04/05/2001 01:14 PM -----

	WebMaster <WebMaster@caiso.com>
	04/05/2001 01:11 PM

		 To: "Mara, Sue" <smara@enron.com>
		 cc:
		 Subject: RE: FERC FIlings

Its under Public Info, FERC Filings and Rulings, Tariff Amendments.
Here's the direct link

http://www2.caiso.com/docs/2001/04/02/200104021630021868.html

-----Original Message-----
From: smara@enron.com [mailto:smara@enron.com]
Sent: Thursday, April 05, 2001 1:05 PM
To: webmaster@caiso.com
Cc: webmaster@caiso.com
Subject: FERC FIlings

I am looking for the ISO's FERC filing that was made on April 2 --  of
Amendment No. 39 on the New Facility Interconnection procedures.


Fyi
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)

-----Original Message-----
From: McGowan, Mike W. <Mike.McGowan@ENRON.com>
To: McCarty, Danny <Danny.McCarty@ENRON.com>
CC: Neubauer, Dave <Dave.Neubauer@ENRON.com>; McCoy, Julie <Julie.McCoy@ENRON.com>; Armstrong, Julie <Julie.Armstrong@ENRON.com>
Sent: Thu Nov 01 16:17:22 2001
Subject: Omaha Christmas Party

Dan - We would like to invite you and your wife to our Christmas party December 7 at the Western Heritage Museum in Omaha.  This year, we are having a combined ETS & NBPL party with the social hour starting at 6:30, dinner at 7:30 followed by service awards program.  Bill Cordes is inviting Stan and if it works out that you could get a company plane, we would then ask Rod Hayslett, Shelley, and possibly Phil Lowry depending on seats available.

All of us would love to have you attend.  Let us know at your convenience.

Mike McGowan


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Richard:

Thanks so much for your fax.

We will prepare a memorandum on Issue 1.1.? We hope to e-mail you a draft
Monday evening Los Angeles time, Tuesday your time.? (There is an easy answer
to the question that has been posed.? Our challenge is to write our
memorandum clearly, so that it can be understood by someone not familiar with
the legal system and terminology in the U.S.? Please let us know if there is
anything in our draft that is not clear.)

I understand that you are not seeking our input on Issues 1.2 and 1.3

My direct fax, which gets to me sooner, is 213-892-4748.

Thanks

Steve Howard

This e-mail message may contain legally privileged and/or confidential
information. If you are not the intended recipient(s), or the employee
or agent responsible for delivery of this message to the intended
recipient(s), you are hereby notified that any dissemination,
distribution or copying of this e-mail message is strictly prohibited.
If you have received this message in error, please immediately notify
the sender and delete this e-mail message from your computer.


Rick Tucker at Pan Canadian (he used to be at PG&E) called and has been
speaking to Willie Harrell on the Confirm Desk, and I believe Willie spoke to
Mark about this issue yesterday, but it appears to be unresolved and I think
Mark was going to talk to you about it.

Pan Canadian is doing EOL trades, and wants to know why he keeps getting the
online confirms w/the GTC's attached since the way the system is set up he
technically is already agreeing to the GTC's online.  He feels he is having
to look at a lot of unnecessary paper.

Rick will be out of the office Friday and Monday, but was hoping you could
give him a call Tuesday to discuss this issue.  His phone # is 713/331-5049.

FYI, we do not have a master in place with Pan Canadian Energy Services.


Tom:

I do not think Vince has any plans to go to UT the rest of this year.  Would
Professor Lasdon be interested in coming to Houston?   They sometimes
do that if they have something they really want to discuss with him.

If not,  I will forward this to Vince and keep him in mind for the next trip.

Thanks!

Shirley

Tom Halliburton@ENRON
11/13/2000 01:38 PM
To: Shirley Crenshaw/HOU/ECT@ECT
cc:
Subject: Leon Lasdon

Shirley,
Leon Lasdon would like to meet Vince sometime when Vince is at UT Austin.
He'd like to find out more about what we do, and of course is looking for
opportunities for research projects and summer interns.  I am planning to
visit him sometime soon as he has an interesting hydro modelling project.

Leon is a well known person in the optimization world - his nonlinear solver
is used in Excel, he's written text books (I used it lots during my thesis
work), and he is a Professor in the Department of Management Science and
Information Systems at Austin.  tel 512 471 9433, email
lasdon@mail.utexas.edu.

Tom


I threw the initials in there for your benefit. It means Oh Bull Shit.

Kay

Roseann Engeldorf
07/17/2000 09:58 AM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Re: Electronic file of Coyote Springs contract

Does  OBS mean "off-balance-sheet" or "Obstetrics?"  Because it should mean
"meatball surgery."

Sorry - I could not resist.

Rose


Charlie,

Thanx.

Vince

	Enron North America Corp.

	From:  V Charles Weldon                           09/27/2000 12:22 PM

To: christopher.long@enron.com
cc: Mike A Roberts/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
Subject: Nymex

Chris,

Here is the analysis you requested.    Let me know if I can be of any further
assistance.

Charlie Weldon


Louise,

We're making good progress with a new project expense management protocol that will provide Business Unit Executives with higher quality information on project expenditures as well as automatically require management authorization or re-authorization at pre-determined levels of spend or DASH approved limits.  My plan is to have this implemented by 1Q2002.

Richard Lauer from RAC is leading this effort.  I'll keep you posted on developments.

Let me know if you have any specific thoughts or requests on this.

 -----Original Message-----
From: 	Lauer, Richard
Sent:	Monday, October 22, 2001 6:19 PM
To:	Vargas, Hope; Pierce, Jody; Hodges, Georganne; Schneider, Chip; Boehm, Rick; Musser, Paul; Dupre, David; Carson, Rick L.; Lowry, Donna; Stafford, Clayton
Subject:	DASH Spending Controls Team Meeting

This e-mail follows the October 18th ISC (SAP) working session and other one-on-one accounting process meetings.  Both working session and process meetings have been very productive.  In preparation of tomorrow's team meeting, Clayton Stafford has outlined several SAP Features and possible process enhancements as follows:

?	Opportunity may exist to create projects at the Project definition level in SAP.  This would enable aggregate charges to be summarized and actual compared to budget across multiple company codes.  Need to further understand the relationship between profit centers and project definition levels in SAP.

?	May consider default project budgets of $2.5MM until an approved DASH is received that commits funds in excess of $2.5MM.

?	SAP has an email notification feature that could be used to alert a designated person/group when a project is approaching or has exceeded budget (within an approved tolerance level).  Some limitations do exist.

?	SAP can be coded to capture unique data (possibly the DASH number) at the project definition level.  Management reports can be generated from the unique field.

?	Reporting features may be enhanced through the current Sunrise project.

Please bring your thoughts and ideas.  See you tomorrow in EB2386 at 9am.

Richard Lauer
RAC Compliance Manager
(713) 853-4884


is attached. I appreciate everyone's patience in waiting for it, but as you
will see alot needed to be changed based upon the parties' discussions.  The
revised agreement contemplates attaching as Schedule 5 coal testing and Btu
adjustment provisions which I would prepare based upon whatever Enron
engineers come up with on these issues.

Please note that I have incorporated the insurance provisions that were just
e-mailed to me, but they require some cleaning up.

Please also note that contrary to what we were saying yesterday, the
respective owner's would not be able to execute the O&M agreements on Monday
because Enron would not control those entities then.  Only when the closing
occurs and Enron takes control of the 2 owners would they have the authority
to sign on behalf of those entities.

In any event, as I mentioned yesterday, my home number is (713) 780-9122. If
you cannot reach me at work, please try me there.  Best regards.

David W. Locascio
Bracewell & Patterson, L.L.P.
711 Louisiana, Suite 2900
Houston, Texas  77002-2781
phone: 713.221.1396
fax:      713.221.2134
email: dlocascio@bracepatt.com

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

 - OPERATION AND MAINTENENCE AGREEMENT.doc


http://www.lasvegassun.com/sunbin/stories/archives/2000/nov/10/511018638.html?
tom+carroll


How do I get the software to operate Socal Gasselect and Passport?  I would
like to have them installed on my desktop and laptop.

Thanks,
Mike


Steve, Jeff, and others: .

Here are some of my thoughts:

Power price strip.  The power prices pulled together from the Davis-Lay
meeting are based on a weighted average of off- and on-peak prices.  We can
easily show on- and off-peak prices  separately.  We're making a FERC filing
on Tues showing l-t prices so we can pull peak/off peak from that data.
Note, however, that "baseload" power is equivalent to 24x7x365 power, which
is what we provided him.

In terms of my other reactions:

Not enough DSM.  The best analysis of the West trading desk is that we are in
a temporary, WSCC-wide energy shortage, not a capacity shortage.  Anything
that reduces kWh demand will leave more water behind dams and natural gas
storage.  This will translate into lower market prices.  Until more natural
gas supply, generating capacity, and rainfall comes along, we will see high
prices.  If Davis is unwilling to raise rates, he should be willing to take
some extraordinary measures to cut demand.  At a minimum, there should be
expanded pay-for-curtailment curtailment programs.

Voluntary Opt Out of Rate Freeze  I have not thought through all the EES
implications but one thing that could be "sold" to customers is to give them
the option of buying an interval meter and pay the current market price of
power.  That would empower them to modify demand and not incur ongoing,
increasing stranded cost liability.

Muni's need to get involved.  I assume that Enron won't take a position on
requiring muni's to sell generation in California but Enron should support
having muni's be cajoled to participate in demand reduction programs for the
reasons noted above.  As recently as 12/23 Freeman said there was no need to
conserve at LADWP.  Pretty irresponsible.

Tie Govt Backings with Move to Cost-Based Prices.  Securitization and state
credit guarantees are great ways to lower the cost of money to the utilties
in this crisis.  However, both are irresponsible actions unless there is  a
plan to move retail rates to a level that covers the full cost of power.

Alan Comnes


what's up froggy.  we've finally slowed down over here. give me a call today
if you get a chance.  713.853.0383


Karen:
Here is our response to your e-mail comments:

1. We can put back VI(c)(i) but the reason that we deleted it was because the
provisions in VI(c)(ii) and VI(E) really deal with how an LC can be drawn
upon and the language in VI(c)(i) seemed unnecessary and perhaps inconsistent
with those sections.  If we put it back in, it should be made subject to
those other sections.

2. With respect to your points regarding the amount that can be drawn, I am
unclear as to what your position is.  In one place you want to limit it to
amounts owed and in another you want to limit it to Exposure Amount.  What is
your position.  We thought that the formula that we set forth in Section 4(b)
of the amendment was what everyone had agreed to.

3. The reason for the change in E.4.(c) is because the Event of Default
situation has already been addressed in VI(c)(ii).

4. I need to check with our credit people regarding the transferability
issue.  I will note that the current form that is attached to the Master
permits transfers.  Why is this an issue with you?

I look forward to hearing from you.  My number is 713-853-3989.

Carol


Bob/Wayne:

We need to constantly upgrade our talent pool.  Does the attached candidate
look better than any of the engineers we have?  If so, lets bring him in to
talk.   If not let me know and I will take care of a response.

If you want to give him a shot, we can bring him in on a 6 month trial basis
and either: (i) keep him in place of one of our existing engineers, or (ii)
not renew his contract.  Let me know.

Regards,
Brian

---------------------- Forwarded by Brian Redmond/HOU/ECT on 12/12/2000 07:59
PM ---------------------------

David W Delainey
12/12/2000 07:22 PM
To: Brian Redmond/HOU/ECT@ECT, Dan Leff/HOU/EES@EES
cc:
Subject: Experienced Power Plant Developer/Director of E & C

FYI - action is required.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 12/12/2000
07:22 PM ---------------------------

Kevin Hannon@ENRON COMMUNICATIONS on 12/12/2000 06:00:02 PM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Experienced Power Plant Developer/Director of E & C

FYI

Kevin

----- Forwarded by Kevin Hannon/Enron Communications on 12/12/00 05:56 PM
-----

	winter_calvert@hotmail.com
	12/12/00 02:43 PM

		 To: Kevin.P.Hannon@enron.com, Kevin.Hannon@enron.com
		 cc: (bcc: Kevin Hannon/Enron Communications)
		 Subject: Experienced Power Plant Developer/Director of E & C

Thanks for your consideration.

WC

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

WINTER O. CALVERT
920-1/2 Knox Street, Houston, TX  77007
713/880-3501

EXECUTIVE PROFILE

Fourteen successful years of executive, management, and technical experience
as Director of Project Development, Director of Engineering & Construction,
Program Manager, Chief Engineer, and Project Engineer.

Combine management talents with extensive technical knowledge of
construction for large projects.  Assisted in startup & commissioning of 23
power plants, worldwide.

Knowledgeable of international negotiation techniques and business
development.

Successfully negotiate the details of complex projects.

Thoroughly experienced in hand-picking project team members.

EXPERIENCE

MCN Energy, Houston, TX         04/98 ) 07/00
DIRECTOR, PROJECT DEVELOPMENT
Lead all Southern U.S. project development activities for power projects,
including ties to corporate gas sales and energy marketing division.
o   Team leader to financial close ) U.S. power project ) 140 MW.
o   Negotiated EPC (engineering & construction) contracts for two
         U.S. projects.
o   Asset Director for 2 U.S. projects under construction.
o   Extensive business contacts in industry, including developers,
         manufacturers, & consultants.

Amoco Power, Houston, TX      07/96 ) 04/98
DIRECTOR, ENGINEERING & CONSTRUCTION
Team member/leader for technical and commercial negotiations for power
projects of 100 to 1500 MW.
o   Lead all engineering efforts for development projects in:
   -   Brazil      -   Bolivia
   -   Venezuela   -   Russia
   -   Argentina   -   Puerto Rico
o   Developed familiarity with country laws and regulations
         concerning power generation assets.
o   Co-author of book on Cogeneration Management.
o   Participated on Task Force to develop worldwide markets for LNG
         and NGLs.

GE (S & S Energy Products), Houston, TX         12/91 - 07/96
PROGRAM MANAGER
o   Managed technical support team for sale of GE gas turbines in
         Sales Group.
o   Delivered sales presentations; prepared proposals; worked
         closely with manufacturers.
o   Extensive international travel.
LEAD MECHANICAL ENGINEER
o   Assisted in startup and commissioning of 23 power plants,
         worldwide.

EDUCATION

Stanford University,  Stanford, CA
Master of Science Degree / Mechanical Engineering  -  1986

Texas A & M University,  College Station, TX
Bachelor of Science Degree / Aerospace Engineering  -  1984

Rice University,  Houston, TX
Executive Development Program  -  1997

Licensure:  Registered Professional Engineer, State of Texas
Member:  American Management Association

______________________________________________________________________________
_______
Get more from the Web.  FREE MSN Explorer download : http://explorer.msn.com


Greg,
I was unable to run your option detail. I will have Michelle send it to you
first thing Monday morning.

John Swinney


Enron Law Conference

San Antonio, Texas    May 2-4, 2001    Westin Riverwalk

                   See attached memo for more details!!

? Registration for the law conference this year will be handled through an
Online RSVP Form on the Enron Law Conference Website at
http://lawconference.corp.enron.com.  The website is still under construction
and will not be available until Thursday, March 15, 2001.

? We will send you another e-mail to confirm when the Law Conference Website
is operational.

? Please complete the Online RSVP Form as soon as it is available  and submit
it no later than Friday, March 30th.


Here are the messages as I understand them.  Please let me know if I've
misconstrued anything.  Thanks.

FERC got  a lot right in the order and we're very encouraged as a result.
In particular, ending the PX buy/sell requirement and permitting utilities to
manage risk through a portfolio of short and long term contracts is a
fundamental step in the right direction.
However, the proposed price cap is unworkable and will jeopardize realibility
in California.  As structured, it will:
discourage the development of new generation to serve California
fail to provide adequate incentives for demand responsiveness.
force Enron to abandon 300 MWs of new power projects planned for California.
We look forward to participating in FERC's process and are hopeful that
FERC's final order will fix the deficiencies in the current price cap
proposal.
We encourage California to work with FERC to implement the proposals and
quickly fix the flaws in the market on behalf of the state's consumers.


Attached is the draft Purchase and Sale Agreement.  It is highly
confidential, and should not be provided to any other individual, including
EI management.  I would appreciate your review of the Agreement, and in
particular Sections 2.06, 5.06, 5.07, 5.14, 7.03, 9.02, and 9.03.  I would
also appreciate your helping to prepare the related Disclosure Schedules.
Attached below is an annotated version of the reps/warranties along with a
form of Disclosure Schedule that has been prepared by V&E.  We are asking
that drafts of all Schedules be completed by Friday.  Also attached is the
latest Matrix of assets.  The plan is to transfer all 700-plus related
entities.  Please call with any questions or recommendations.  Thanks for all
the help.  Lance.

 - 00.pdf

 - 265022_1.doc
 - Summer Disclosure Letter v.2.WPD
 - 7.09.00ABC Matrix .xls


I'm going I'm going  I'm going


Are we running into a problem with the Nov. 3 trial setting?


I have not yet had a response from Argentine counsel.  I will speak with them
again.  Sara

"GAYOL, Pablo J." <PG@marval.com.ar> on 10/21/99 04:55:43 PM
To: Sara Shackleton/HOU/ECT@ECT
cc:
Subject: RV: Argentina: public utilities and other regulated entities

Dear Sara,

 Unfortunately, we haven%t recieve your fax with the Municipal
Schedule. Could you please be so kind to sent it to us again? Thank you vey
much.

Regards,

Pablo Gayol

>
>
> Hope you are well!  I had a wonderful vacation in L.A.  I never made it to
> either the Norton Simon or the Getty; I'll just have to plan another trip
> to the
> west coast.
>
> In connection with your recent review of our standard ISDA Schedule,
> Credit
> Support Annex and legal opinion (the "Documents"), could you please advise
> as
> the whether additional provisions are required or advisable in any of the
> Documents when our counterparty is an Argentine public utility,
> municipality or
> other type of regulated entity.  In the U.S., we use the ISDA
> Multicurrency -
> Cross Border boilerplate and incorporate most of the ISDA municipal
> language and
> some of our own into the Schedule for municipals and governmental
> entities.
> However, for public utilities which are general corporates (and not
> governmentally owned), we take a different approach and incorporate
> language
> which might trigger an "Additional Termination Event" for "regulatory type
> developments" (e.g., orders issued by a public utility commission) which
> would
> cause or might cause our master agreement to become void or unenforceable
> or
> similar swap agreements to become void or unenforceable.  For example:
>
> "The filing of a motion, pleading, application or other similar action in
> any
> proceeding or action by Party B, a commission, regulatory agency or other
> entity
> having jurisdiction over Party B, in respect of Party B, or in respect of
> any
> other similarly situated entity organized under the laws of the state(s)
> in
> which Party B is located or regulated, to the effect that performance
> under this
> Agreement or one or more Transactions hereunder or similar agreements is
> unlawful or that this Agreement or one or more Transactions hereunder or
> similar
> agreements are void or voidable."
>
> By fax, I will send you our Municipal Schedule.
>
> Please advise as to changes in both the (i) Schedule and (ii) legal
> opinion for
> both (a) public utilities (corporates, non-governmental) and governmental
> entities (municipals, public agencies, governmental utilities, etc.).
> Please
> call if you have any questions.  Regards.  Sara
>
>
>
---------------------------------------------------------------------
Este mensaje es confidencial. Puede contener informacion amparada
por el secreto profesional. Si usted ha recibido este e-mail por error,
por favor comuniquenoslo inmediatamente via e-mail y tenga la
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ni divulgar su contenido a ninguna persona. Muchas gracias.

This message is confidential. It may also contain information that is
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EFF_DT PORTFOLIO_ID DOWN95
11/8/00  MANAGEMENT-CRD 0
11/8/00  MANAGEMENT-GAS 1,438,614
11/8/00  MANAGEMENT-PWR 278,372
11/8/00  AGG-MANAGEMENT 1,486,991


---------------------- Forwarded by Chris Germany/HOU/ECT on 07/24/2000 05:22
PM ---------------------------

dkinney@columbiaenergygroup.com on 07/24/2000 04:43:55 PM
To: " - *Kevin.Ruscitti@enron.com" <Kevin.Ruscitti@enron.com>, " -
*chris.germany@enron.com" <chris.germany@enron.com>
cc: " - *tray@enron.com" <tray@enron.com>, " - *Molly.Johnson@enron.com"
<Molly.Johnson@enron.com>, " - *Dalphon, Charles"
<cdalpho@columbiaenergygroup.com>, " - *Jones, Donna"
<djones1@columbiaenergygroup.com>, " - *Destephanis, Kara"
<kdestep@columbiaenergygroup.com>, " - *cfrankl2@enron.com"
<cfrankl2@enron.com>, " - *vversen@enron.com" <vversen@enron.com>, " -
*cindy.vachuska@enron.com" <cindy.vachuska@enron.com>, " -
*cora_pendergrass@enron.com" <cora_pendergrass@enron.com>, " -
*mmitche2@enron.com" <mmitche2@enron.com>, " - *scott.goodell@enron.com"
<scott.goodell@enron.com>, " - *steve.gillespie@enron.com"
<steve.gillespie@enron.com>, " - *cgarcia@enron.com" <cgarcia@enron.com>, " -
*despey@enron.com" <despey@enron.com>, " - *joann.collins@enron.com"
<joann.collins@enron.com>
Subject: CES FOM August 2000 Volume request

The attached file contains CES's first-of-the-month daily volume requirements
for August 2000.  This request is submitted 3 business days prior to NYMEX
close for the month of August.   The file contains volumes to be delivered to
the citygate as well as volumes to be injected into storage consistent with
the
theoretical storage injection schedule.

Please note that for the month of August '00 CES is not purchasing additional
volumes of gas from Enron for delivery to MME behind COH under a separate
deal,
as was done in June and July.   Also, CES is not ordering any volumes in
August
for Honeywell (formerly Allied Signal) which ceased to be a CES customer at
the
end of March 2000.

Please call me if you have questions or problems with the attached request.

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

 - Aug00_FOM_Req.xls


Tana:

Both Enserco and Arch Energy should be restricted from trading any U.S. power
products.

1.  Enserco Energy, Inc. (although a FERC-authorized power marketer) is not
authorized since credit has restricted them from trading any U.S. power
products.

2.  Arch Energy Resources, Inc. was rejected by credit so I'm rejecting them
as well.

Leslie


yep.  it's on its way.


Here are the names of the plant managers:
Wheatland - Chris Norris
Lincoln - Merle Churchill
Gleason - Pete McCormick
Thanks!
Ben


See last story attached.  Congratulations, it looks like you are shaking things up in typical Enron fashion.
---------------------- Forwarded by Steven J Kean/NA/Enron on 07/14/2001 03:41 PM ---------------------------
From:	Ann M Schmidt on 07/13/2001 05:13 PM

To:

cc:	 (bcc: Steven J Kean/NA/Enron)

Subject:	Enron Mentions

Wisconsin Gas to Purchase Nine Mile Line From Northern Natural Gas
PR Newswire, 07/13/01

Commodities Review: LME Copper Hit By Another Stock Rise
Dow Jones Commodities Service, 07/13/01

LME Base Metals: Copper Pressured Down By Stock Build
Dow Jones Commodities Service, 07/13/01

UK: Telecoms, drugs drive FTSE 100 rally, Vodafone leads.
Reuters English News Service, 07/13/01

Futures Contract Covering Coal Debuts in New York (Correct)
Bloomberg, 07/13/01

Enron: Panacea or Pariah?
Modern Metals, July 2001

Wisconsin Gas to Purchase Nine Mile Line From Northern Natural Gas

07/13/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

Line Will Enhance Competition in Southeast Wisconsin and Use Existing
Facilities

MILWAUKEE, July 13 /PRNewswire/ -- Wisconsin Gas, Northern Natural Gas and Guardian Pipeline announced today that Wisconsin Gas has signed an agreement with Northern Natural Gas (NNG) to purchase a nine mile, high pressure natural gas pipeline in Walworth and Waukesha counties. The purchase price is $5 million. The proposed transaction will require approval from federal and state regulators. The pipe, known as the Eagle line, is located southeast of the Kettle Moraine Forest near Eagle, Wis.
The existing line has been part of the NNG interstate transmission system. Under the new ownership, the line will become part of the Wisconsin Gas distribution system and will interconnect with Guardian Pipeline as well as the NNG system.
"Northern Natural Gas is pleased to be a part of a creative, cost-effective solution to provide additional gas service to southeastern Wisconsin," said Dave Neubauer, vice president of business development and marketing, Northern Natural Gas. "This transaction enables Wisconsin Gas and its customers to obtain natural gas supplies from Guardian or NNG. Providing reliable, economical choices for consumers will benefit all of the parties involved."
"We saw this as an opportunity to minimize environmental impact and still realize the benefits of increased competition in the natural gas market," said James Schott, senior vice president, Wisconsin Gas. "The purchase of the Eagle line will enable Wisconsin Gas to further our goal of providing cost-efficient natural gas service to our customers."
As a result of the purchase Guardian Pipeline, the 141-mile interstate pipeline from Joliet, Ill. to Ixonia, Wis., will no longer build an 8.5-mile lateral to Eagle. The lateral was part of the originally certified Guardian Pipeline. This portion of the line would have generally run parallel to the current Northern Natural pipeline.
"This sale is a win-win situation for Guardian and consumers," said George Hass, project manager of Guardian Pipeline. "The Eagle line purchase by Wisconsin Gas saves Guardian time and resources by taking away the need to build the 8.5-mile lateral and allows all three companies to create a better environment for competition in the natural gas marketplace."
The existing gate stations at LaGrange and Eagle will remain in-service for regulation purposes. Odorization and measurement will take place at a new gate station that will be constructed at the interconnect with Guardian. This new gate station will be called the Bluff Creek station and will be located near Whitewater. The Bluff Creek gate station will be constructed during the construction of Guardian Pipeline.
Northern Natural Gas, a subsidiary of Enron Corp., with a market area capacity of about 4.3 Bcf/d, provides natural gas transportation services to utility customers in the upper Midwestern United States through its approximately 16,000 miles of pipeline.
Guardian Pipeline is a partnership of three Midwestern energy companies: CMS Energy, based in Dearborn, Mich.; Wisconsin Energy, headquartered in Milwaukee, Wis.; and Viking Gas Transmission Co., a wholly owned subsidiary of Xcel Energy Inc., and located in St. Paul, Minn.
Wisconsin Electric-Wisconsin Gas, the principal utility subsidiary of Wisconsin Energy Corp. (NYSE: WEC), serves more than one million electric customers and more than 960,000 natural gas customers throughout Wisconsin and Michigan's Upper Peninsula. Visit our company's Web site at www.WE-WG.com. Learn about Wisconsin Energy Corp. by visiting www.WisconsinEnergy.com
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X86200271

/CONTACT: Media only: Kelly Farr of CMS Energy, 313-436-9253; or Megan McCarthy of Wisconsin Energy, 414-221-4444; or Gina Taylor of Northern Natural Gas, 713-853-7681/ 17:01 EDT

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

Commodities Review: LME Copper Hit By Another Stock Rise
By Mark Long and Steve McGrath
Of DOW JONES NEWSWIRES

07/13/2001
Dow Jones Commodities Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LONDON -(Dow Jones)- Copper futures traded in London fell Friday, as a further influx of stocks into official warehouses put the copper market under pressure and dragged down the rest of the base metal complex.
Three-month copper traded on the London Metal Exchange ended $6 down from Thursday's late kerb close at $1,554.50 a metric ton.
An increase of 7,475 tons of copper into LME warehouses Friday brought total stocks up to a 12-month high of 550,300 tons. This pressured prices in early trade down to test $1,550/ton support, although prices recovered slightly in later trade.
Unconfirmed market talk said Enron is behind much of the week's stock rise, in an effort to ease nearby supply tightness and to alleviate the large short positions it is thought to have built up on the July-for-a-week spread, which is currently showing a $6-$8/ton backwardation. The July futures contract will switch over to cash Monday.
Enron declined to comment on the market talk Friday.
A backwardation is a pricing structure in which deliveries to be made in the near future are more expensive then those set for a more distant delivery. The opposite situation is called contango.
"The spreads are still tight. The major longs are still reluctant to lend, with no signs of that (tightness) dissipated," said Kevin Norrish, an analyst with Barclays Capital in London.
Dealers and analysts said they expect further stock increases next week.
The entire base metals complex ignored Thursday's 237-point rally in the Dow Jones Industrial Average, dealers said.
"Copper has been sensitive to moves in the stock market, but not this time," Norrish said. In fact, now it appears that base metals markets ignore equities markets when they rally, but follow stocks down when they slump, he added.
European Grain Futures See Profit-Taking, But More Gains Expected
European grain and oilseed futures were hit by a bout of profit-taking and pre-weekend position-squaring Friday, after rising to long-time highs, brokers said.
However, world and domestic crop concerns, the strength of the dollar and general bullish sentiment will carry the markets to fresh highs short term, they said.
On the London International Financial Futures and Options Exchange, the benchmark November feed wheat contract ended just 25 pence up at GBP82/ton, after hitting a new two-year high of GBP83/ton in early trade.
Meanwhile, Matif November rapeseed futures fell EUR2.75 on the day to EUR265/ton, after hitting a three-year high of EUR271/ton in early trade.
The U.K. wheat crop and the French rapeseed crop are forecast to be well down on last year, and wheat and canola crops in some other major producing countries are also expected to fall.
Meanwhile, the strength of the dollar is allowing European grain and oilseed traders to up prices and still remain competitive against U.S. imports and dollar-denominated grains on the world market.
-By Mark Long and Steve McGrath, Dow Jones Newswires; 44-20-7842-9358; mark.long@dowjones.com

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

LME Base Metals: Copper Pressured Down By Stock Build

07/13/2001
Dow Jones Commodities Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LONDON -(Dow Jones)- London Metal Exchange three-month copper ended Friday's late kerb lower compared with Thursday, pressured by another stock build, dealers said.
(LME three-month metals prices in dollars a metric ton at 1600 GMT, with the previous late kerb close in parentheses. Comex copper at 1641 GMT in cents a pound, with the previous close in parentheses.) Copper 1,554.50 (1,560.50) Tin 4,452.50 (4,502.50)
Aluminum 1,452.25 (1,458.50) Zinc 871.50 (877.50)
Nickel 5,925.00 (6,012.50) Lead 462.50 (465.00)
Comex Sep Copper 70.75 (70.80)
An increase of 7,475 tons of copper Friday brought total stocks up to a 12-month high of 550,300 tons. This pressured prices in early trade down to test $1,550/ton support before rising slightly to close at $1,554.50/ton, down from Thursday's close of $1,560.50/ton.
Unconfirmed market talk said Enron is behind much of the week's stock rise, in an effort to ease nearby supply tightness and to alleviate the large short positions it is thought to have built up on the July-for-a-week spread, which is currently showing a $6-$8/ton backwardation. The July futures contract will switch over to cash Monday.
Enron declined to comment on the market talk.
A backwardation is a pricing structure in which deliveries to be made in the near future are more expensive then those set for a more distant delivery. The opposite situation is called contango.
"The spreads are still tight. The major longs are still reluctant to lend, with no signs of that (tightness) dissipated," said Kevin Norrish, an analyst with Barclays Capital in London.
Dealers and analysts said they expect further stock increases next week.
The entire base metals complex ignored Thursday's 237-point rally in the Dow Jones Industrial Average, dealers said.
"Copper has been sensitive to moves in the stock market, but not this time," Norrish said. In fact, now it appears that base metals markets ignore equities markets when they rally, but follow stocks down when they slump, he added.
Aluminum also ended the late kerb lower Friday.
News of the restart of some smelters has dampened sentiment, despite a stock drawdown of around 8,000 tons since the end of last week, dealers said.
"The stock drawdowns are fairly small percentage-wise," said Standard Bank analyst Robin Bhar, adding that they would need to be much larger to significantly improve market sentiment.
"A test of $1,435/ton cannot be ruled out, though we would expect forward buying to prevent a break below this level for the time being," Barclays said in a market report.
Zinc continued its slump, falling to a seven-and-a-half-year low, mainly on technicals.
Technicals also hurt nickel, which rose slightly after breaking $5,900/ton support but still closed at its lowest level since April.
Nickel's fall was "just on some speculative liquidation and short selling, mostly chart-based," Bhar said.
-By Mark Long, Dow Jones Newswires; +44-20-7842-9356; mark.long@dowjones.com

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

UK: Telecoms, drugs drive FTSE 100 rally, Vodafone leads.
By Camila Reed

07/13/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 13 (Reuters) - Britain's largest companies raced higher at the close on Friday fired by telecoms and drug stocks as they bounced back from Wednesday's 16-week low.
Index heavyweights Vodafone and GlaxoSmithKline provided 27 of the day's 55-point gain, while technology firms wobbled. However, the telecoms giant surged 4.1 percent to 157-1/4p.
The FTSE 100 finished 55.4 points or one percent firmer at 5,537.0, having jumped 1.66 percent on Thursday after seven consecutive losing sessions, with gainers outnumbering losers by three to one.
Stocks steamed higher and refused to be derailed by sluggish U.S. retail sales figures for June, which showed only a meagre rise, and a weaker Wall Street, but volumes were thin at 1.4 billion shares.
By London's 1530 GMT finish the blue chip Dow Jones industrial average was down five points, while the tech-laden Nasdaq Composite Index was flat, having streaked up in the previous session.
Mike Lenhoff and Simon Rubinsohn at money managers Gerrard said that the UK equity market was deeply oversold and long-term this presented a buying opportunity for UK equities.
DRUGS SEE-SAW
Drugs reversed an earlier decline with Nycomed Amersham among the day's top performers, up nearly four percent at 536-1/2p and AstraZeneca rising over one percent.
Mining giant Anglo American moved into the FTSE 100 top ten gainers with a three percent rise, as investors sought refuge in mining stocks as a cyclical play.
Another major gainer was British business services firm Hays Plc up 3.4 percent. The shares leapt on market talk that Germany's Deutsche Post was looking to make a bid for it, dealers said.
Both Deutsche Post and Hays declined to comment.
Firmer crude prices gave support to the oil sector. BP rose 0.6 percent to 572 pence and Shell also added 0.6 percent to 581-1/2p lifting the index by four points.
FTSE MIXED PICTURE
But dealers and analysts said it would be a mixed picture going forward with the market scrutinising data for signs of a sustained economic recovery or a lapse in consumer confidence.
"This week we had a really bloody day on Wednesday and then the opposite on Thursday, so we're going to be on a rollercoaster still. It's very fragile but it does show the potential of the market," said Foreign & Colonial director of UK equities David Manning.
"It's not only the holiday period, it's also that the market can make you look an idiot one day to the next. In that sort of circumstance the temptation is to do very little," he said.
ABN Amro strategist Gareth Williams said the market would make modest progress over the next month or so, with moves downward quite likely although the trend would be upwards over the course of the year.
TECHS DIP
Thursday's 5.3-percent rally in the Nasdaq failed to bring any cheer to UK technology shares. Logica and Colt Telecom slid four percent, while microchip designer ARM fell 3.9 percent to 223 pence trimming Thursday's 13 percent jump.
The techMARK index of technology shares rose 0.98 percent to 1,602.87.
Elsewhere on the downside, UK holiday operator Airtours lost nearly 10 percent of its value after Swiss peer Kuoni issued a profit warning.
Among second liners, Baltimore Technologies closed up 3.3 percent. It initially rallied 22 percent after the Irish Internet security firm said it received an approach from an unlisted British-based company for an all-paper deal to combine the companies.
The FTSE 250 Mid-cap index finished 5.1 points stronger at 6,163.8.
Among small-caps, Paladin Resources' shares jumped 10 percent after the UK oil explorer said that major shareholder U.S. oil giant Enron had sold the whole of its 40-million-share stake via HSBC bank for 44 pence a share.
Britain's Litho Supplies Plc slumped 42.5 percent after the company, which supplies printing and graphic arts products, said that sales in the first six months of 2001 were on target, but profits would likely be below expectations due to tough market conditions and pressure on margins.

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

Futures Contract Covering Coal Debuts in New York (Correct)
2001-07-13 08:48 (New York)

Futures Contract Covering Coal Debuts in New York (Correct)

     (Corrects location of FirstEnergy Corp. in 10th paragraph of
story that moved yesterday.)

     New York, July 12 (Bloomberg) -- The New York Mercantile
Exchange today began trading a futures contract for low-sulfur
coal, a fuel that President George W. Bush said will play a major
role in meeting electricity demand over the next two decades.
     The contract's debut came after prices for coal, considered
the dirtiest of power-plant fuels, doubled in the past year, as
demand from power plants outstripped mine production. Coal for
September delivery opened at $42 a ton and settled at $40.75, as
98 contracts were traded, exchange officials said.
     ``We had a big run-up in coal prices this past winter,'' said
Andy Ozley, who buys coal for Atlanta-based Mirant Corp.'s six
coal plants in New York, Illinois, Maryland and Virginia. ``This
contract affords us a way to mitigate our exposure'' to large
price swings.
     The Bush administration said in an energy policy report this
spring that coal would be the dominant fuel for electricity
generation through 2020. Bush gave an added boost to the fuel when
he retreated from a campaign pledge to restrict carbon dioxide
emissions, implicated in global warming.
     Coal plants are responsible for a third of the nation's
carbon dioxide emissions. They also produce sulfur dioxide, which
causes acid rain, and nitrogen oxides, which cause smog.
     The Nymex started the futures contract to give mining
companies and utilities a way to hedge their risks in the $33
billion coal market. Producers such as Peabody Energy Corp. and
Arch Coal Inc., whose shares have soared in the past year, have
said they would trade the futures.

                            New Plants

     Last year's quadrupling of prices for natural gas -- a
cleaner-burning power-plant fuel -- prompted many generators to
ramp up output from their coal plants. Utility coal stockpiles
dwindled, and prices have risen to their highest levels since at
least 1989.
     So far this year, more than a dozen companies have announced
plans to build coal-fired plants, including Kansas City, Missouri-
based Kansas City Power & Light Co. and Portland, Oregon-based
PacifiCorp.
     Although coal is used to produce 52 percent of the nation's
electricity, few plants were built during the 1990s because of the
high costs of building them and the difficulty of complying with
federal and local environmental regulations.
     Demand for coal has eased in recent weeks as below-normal
temperatures in the U.S. Midwest and Northeast reduced demand for
air conditioning, said Jim Parks, who buys coal for six power
plants in Ohio and Pennsylvania as director of fuels at Akron,
Ohio-based FirstEnergy Corp.
     ``The summer's been pretty mild so far -- you haven't seen
any big heat waves'' in regions with the most coal generation, he
said.

                           Big Sandy

     The Nymex futures contract calls for the delivery of 1,550
tons of low-sulfur coal to the mouth of the Big Sandy River near
Huntington, West Virginia. From there, the fuel would be loaded
onto Ohio River barges and shipped to power plants in the U.S. and
possibly Europe.
     The new contract is tailored to producers in Appalachian
states that account for about 40 percent of U.S. production,
including West Virginia, Kentucky and Pennsylvania, the No. 2, 3
and 4 coal producers.
     The industry lacks a futures contract for coal from Western
states that account for 47 percent of the nation's production,
including the No. 1 producer, Wyoming.

                         Avoiding the Past

     The exchange, which earns commissions on trades, hopes coal
futures will avoid the fate of other contracts it has started over
the past few years. Its six electricity futures contracts have
fizzled, as has its Middle East sour crude oil contract, which
debuted in May 2000.
     ``I said yesterday, if you traded 100 to 200 contracts, that
would be a really a good day,'' said Chris Casale, vice president
of energy trading at Dynegy Inc. in Houston, which trades coal and
buys the fuel for its six power plants in New York and Illinois.
``It came out sort of on target.''
     Most of today's trading was originated by large energy
marketing companies, he said, although he declined to say whether
Dynegy traded any contracts. Enron Corp., the largest energy
trader, and Duke Energy Corp., the largest U.S.-based utility
holding company, have said they would trade coal futures.
     Exchange officials have said the coal market has the
potential to reach 5,000 trades a day after a year of trading.
     The Nymex's 17-year-old crude oil futures contract averages
about 66,700 trades a day, and its 11-year-old natural gas
contract averages about 33,500.

                           Wary of Coal

     ``The coal market is still lacking liquidity,'' said Anthony
McAuley, a floor broker at ABN Amro Inc., who said he bought five
coal contracts for a client at $42 a ton -- the market's first
transaction. ``You probably need to see a little more
participation'' from industry coal buyers and sellers for the
market to take off.
     Independent floor traders, known as locals, are wary of
trading coal futures without assurances that the industry will be
active as well.
     ``Floor traders lost millions'' in electricity futures when
some were caught with high-priced contracts and nobody in the
industry to sell them to, he said.
     ``Because of that, people are a little bit tentative about
coal,'' said Tom Schiff, an independent crude oil trader. ``We're
here to help make liquidity but we can't tackle all the risk.''

		 Modern Metals, July 2001    Giant energy concern now turns its attention to steel. The company's aggressive posture has begged controversy. Industry reactions vary from hand-wringing to open arms. Still others characterize Enron as a "non-event." By Michelle Martinez Arjona, Editor-in-Chief, and Paul Hohl, Contributing Editor  These days, saying the word "Enron" in a room full of metals executives is like screaming "fire" in a crowded theater. For most in the steel industry, the idea of a futures market is enough to raise a few eyebrows. But when a major market maker with annual revenues of 10 times the market cap of the U.S. steelmaking industry stakes a claim (for 2000 alone, Enron logged revenues of $101 billion--that's with a "b"), a lot more than eyebrows are likely to be raised. After a bold presentation from Jeff McMahon, president and CEO of Enron Industrial Markets, at the SSCI annual convention in May (in which he accused steel mills of treating their service center customers as "annoyances"), industry leaders rushed to understand this latest market contender.  Friend or foe? Competitor or partner? These are just a couple of the questions surrounding Enron's aggressive push into the metals industry. Judging from the service center and mill executives Modern Metals queried, there are as many answers as there are opinions in the industry. Reactions ranged from fear to acceptance to downright resentment. At least one mill was reticent to discuss Enron at all--still others seemed to meet the issue with unaffected shrugs. If the saying is true that all publicity is good publicity, the buzz that Enron has generated would make even a Hollywood spin doctor envious. What's the hubbub? Although products such as natural gas and energy--Enron's major business platform--have been traded as commodities for years, until Enron's appearance a formal forward market for steel has never existed. According to McMahon, the absence of a liquid and transparent market has resulted in "uninformed investment decisions" that have exacerbated the current oversupply situation, and left companies exposed to the hazards of price volatility.  Enron's answer is to offer a variety of financial hedging products along with forward contracts in hot-rolled, cold-rolled and galvanized (plate and long products are soon to follow), locking in prices for as many as five years out. Enron contends that it can act as a "risk intermediary" in steel transactions, ensuring healthier profit margins and lowering the cost of capital. Certain grades of steel are commodities, McMahon insists, and as such should be bought and sold on a commodity market basis, instead of the strategic relationships that now exist between the mills and consumers. Enron has been offering steel online, and via phone and fax, since November of last year. "Before you add capacity, before you make an investment decision, you'll be able to see a three, five, maybe even a 10-year forward price of steel," McMahon stated, "and if you want to hedge that investment you can do that." The company plans to buy steel at a floating price and then sell it to steel consumers at a fixed rate, making money on the spread. In February, Greg Hermans, VP of steel trading at Enron, reported to AMM that it was offering U.S.-made 10-gauge, 48-in. wide hot-rolled for April delivery in Chicago for $225 a ton. Hermans said Enron was buying the same product for April delivery at $215 a ton.  Eventually, Enron sees the development of four different marketplaces: the Northeast, the Midwest (or Chicago area), the Gulf Coast (or Houston area), and the West Coast. Enron will hedge against spot price spikes through equity and physical holdings in domestic mills. The company closed on Huntco's Arkansas-based cold-rolling mill in June. "It's a big portfolio," McMahon said. "We wanted to put together a portfolio of supply and demand. In some cases, we'll own assets--hopefully we'll own some term contracts with domestic mills. To the extent that imports are a part of the equation, we'll be a part of that market. We may purchase capacity from somebody, not necessarily the assets, but toll slab through a hot strip mill. All of those combined is how we do our business." Steel mills can benefit, McMahon said, by entering into a multi-year "physical off take" with Enron, thus giving steel mills a degree of certain volume and on product specification. Enron would guarantee purchase of a specified amount of tonnage, and use a floating price or a floor price to guard against market shocks. Whether mills would be willing to divert capacity to the commodity grades being bought and sold by Enron remains uncertain. At least one mill executive privately said no . . . at least for now. Nucor president, CEO and vice chairman, Dan DiMicco also sees little value in Enron's proposal. "What we need to have is stable pricing at levels where the most efficient mills can make a good return on their capital and further invest in new technologies and equipment," he stated. "I define true value as helping the industry to become stronger. It doesn't do any good to maintain a lack of price volatility at $200 a ton." Keith Busse, CEO at Steel Dynamics, echoed that sentiment in a recent New Steel article. "If you're trying to get volatility out at $320 [per ton], great," he said. "But at $230, you want to stick your fingers down your throat." For the service centers Service centers, McMahon suggested, could benefit immediately. "The only way [distributors] are able to hedge themselves is to go out and buy inventory," he explained. "That takes capital, and cash, and space. We can offer a financial product that gives the exact same protection, but doesn't require any of the above. "We can hold those inventories and price the steel at the time of delivery to the service centers," he continued, "so their 4- or 5- percent net margins are somewhat certain." "I do think that Enron is providing a service for the industry . . . " commented Dave Lerman, CEO of Steel Warehouse, South Bend, Indiana. But he pointed out that "how [it] moves forward will be interesting. If they just move forward with hedge instruments . . . that's independent of whether you run your business well by having a good supplier that matches up with the demands of your customers. I think [Enron] will be a good thing for some people and a non-event for others." Beyond hedging, McMahon pointed out, firm and enforceable contracts could become a key benefit to service centers. As one Midwestern distributor source commented, "One of the terrible things that happens in our business is that end users demand long-term pricing, beyond what anybody can foresee. When they anticipate the market is going up, or that it has hit a low point, they push harder for it--as any one would. But historically, they don't honor the deals."  In a down market, he explained, customers demand lower prices. Noncompliance can result in orders, but no releases, and a "don't call us, we'll call you" attitude from customers. The consequence for service centers, he said, are price reductions on the way down and on the way up. "If Enron brings integrity to both sides of this market," he concluded, "that would be a very big plus for the steel industry." But integrity, another Midwest service center exec countered, has got nothing to do with it. In his estimation, Enron is like a profiteering carpetbagger, "trying to make a buck in between the producer and the user. That's all we need right now," he declared, "somebody trying to squeeze out a few more dollars." But, he recognized, "we're all going to have to deal with it." Don McNeeley, president and CEO of Chicago Tube & Iron, indicated that some good could come of a heavy-hitter like Enron introducing new ideas into the industry, but acknowledged that people might be offended by somebody picking the so-called "low-hanging fruit" of the steel market in the current economy. "What do you think the mills are going to do when you come to them for just the peripheral items?" he queried. "My concern would be that the price would go up on [those items]." McNeeley also questioned the wisdom of distributors relinquishing control of their inventories. "In distribution, 60 percent of our net worth is inventory, 30 percent is accounts receivable, and 10 percent is plant property and equipment," he related. "Our single largest asset is our inventory. If a distribution company surrenders control of its inventory to a third party, does not that distributor, in effect, surrender its own sovereignty?" Only just begun Questions abound regarding Enron's role as a physical supplier of steel as well. As one Minnesota-based service center exec put it, "are they ready to deal with problems?" Although Enron has expressed interest in being a physical supplier, Dave Lerman explained, "I think that's going to be a lot more difficult to implement." Enron would have to consider specific qualities, coil sizes, nuances of chemistry, surface quality, and formability. "Most customers require better than standard tolerances," he pointed out. "These are all issues that might complicate commodity sales." Delivery is another issue. As a physical supplier, Enron has virtually guaranteed just-in-time delivery, but as one service center source said, "the guarantee is good when the material shows up at my door. What happens if it doesn't show up? I disappoint a customer. What good does it do to sue [Enron] if I've lost a customer?" Mill executives have questioned whether Enron is a potential competitor. "They see Enron as someone likely to buy foreign steel in order to deliver it to a U.S. customer," said Chuck Bradford, principal of Bradford Research and a long-time industry observer. He cautioned against seeing Enron as too much of a physical supplier, speculating that the future of Enron, similar to the LME, will be in hedging. "You may see some [physical transactions] to start with," Bradford predicted, "just to get the ball rolling. But I don't see that as the way the market will develop." McMahon has been consistent in saying that Enron has little interest in becoming a steel manufacturer. The real value, he said, is in a transparent, liquid market. "We know the products work, we know the market wants them. Can any one particular mill or mills prevent that? We don't think so," he said. "It's not an 'if', it's a 'when'." The jury is still out on just how soon that "when" will come, and what those effects will be for the steel industry. And for all of the debate surrounding the issue, it seems a bit soon to be hitting the panic button. As Don McNeeley recounted, "I can recall similar controversy over a speech a guy gave about 15-17 years ago. That guy's name was Ken Iverson, and he had this concept called a mini-mill. Look at it now."


Kay,  Do we have a Confidentiality Agreement in place with this entity?

----- Forwarded by Gerald Nemec/HOU/ECT on 03/12/2001 12:59 PM -----

	Robert Crockett
	03/12/2001 12:32 PM

		 To: Gerald Nemec/HOU/ECT@ECT
		 cc:
		 Subject: Tri C name and address for CA

Tri-C Resources, Inc.
909 Wirt Road
Houston, TX 77024-3405

Geologic and reservoir engineering data on Nos. 1 and 2 Governor Bill Daniels
wells, North Moss Bluff Field, Liberty County, Texas


---------------------- Forwarded by Don Miller/HOU/ECT on 10/24/2000 10:53 AM
---------------------------

	From:  Jim Homco                           10/23/2000 01:46 PM

To: Don Miller/HOU/ECT@ECT
cc: Mitch Robinson/Corp/Enron@Enron
Subject: Re: Pipeline Capacity

Andy Johnson (Mgr Business Development)with El Paso is double/triple checking
the max flow rate,
but it  is believed to be 190,000 mmbtu/day or 7,900 mmbtu/hr.
Currently at 500 Mw and 11.5 heat rate, our  flow rate is approx 5,750
mmbtu/hr

---------------------- Forwarded by Jim Homco/HOU/ECT on 10/23/2000 01:39 PM
---------------------------
From: Jim Homco on 10/23/2000 10:28 AM
To: Don Miller/HOU/ECT@ECT
cc:
Subject: Re: Pipeline Capacity

I have calls into El Paso again today...Also John Hodge (from Stephanie
Miller's group) has
replaced the calls he made on Friday, at my request.  The only reference any
documents that I have make is to the
current max flow rate of the plant.  However I am sure the interconnect was
built larger than required.
I will for ward the respones ASAP.


---------------------- Forwarded by Lorna Brennan/ET&S/Enron on 12/18/2000
10:59 AM ---------------------------

"Webmaster@cera.com" <webmaster on 12/15/2000 06:15:19 PM
To:
cc:

Subject: STRATOSPHERIC LEVELS -- CERA Monthly Briefing

Title: Into the Stratosphere
URL:
http://www20.cera.com/client/knowledgearea/report/0,1448,CID1295_KID8_SRTDAT_T
YPRPT,00.html

High demand, perilously low storage inventories, and a supply response that
is only beginning have driven gas prices in North America to stratospheric
levels. The physical shortfall is now real enough, and prices have risen well
above previous record highs to levels that should drive any demand that can
realistically do so to leave the market. Gas is now pricing near the level of
distillate for the first time ever, providing strong economic incentives to
push to maximum levels of fuel switching.

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E-mail Category: Monthly Briefing
CERA Knowledge Area(s): North American Natural Gas

Follow URL above for Full Report
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