Leslie - if this is possible, I would prefer for the EnronOnline L&P
statement to contain the new text I had suggested for ClickPaper.com.

However, where do we stand in terms of making the changes to the EnronOnline
L&P statement - has this been done yet or are we just about to put the new
EOL version online?

Thanks.
Justin

Leslie Hansen
04/08/2000 17:06
To: Justin Boyd/LON/ECT@ECT
cc:

Subject: Legal & Privacy Statement for EOL

Justin:

Travis recently forwarded to me the language you proposed adding to Section 4
of the ClickPaper Terms and Conditions for Use:

"For European Union residents: please note that Enron Europe Finance &
Trading Limited is authorized to carry on investment business in the United
Kingdom by the UK Securities and Futures Authority (SFA) and had reviewed and
approved the contents of this website for relevant regulatory purposes. The
services referred to in this website are intended only for commercial
enterprises and not for private customers as defined by the rules of SFA.
Enron will not enter into transactions with persons who would be regarded as
private customers under the rules of SFA.  For Belgian residents: please note
that, pursuant to the Belgian law of 14 July 1991 on Commercial Practices,
this website is to be considered as being advertising (reclame/publicit,)."

Section 4 of the EnronOnline Legal and Privacy statement contains a similar
provision stated in a somewhat different manner.  Whereas the above language
specifically provides, "The services referred to in this website are intended
only for commercial enterprises and not for private customers as defined by
the rules of SFA. Enron will not enter into transactions with persons who
would be regarded as private customers under the rules of SFA."  Section 4 of
the EOL Legal and Privacy states only that "The website is intended only for
commercial enterprises in certain specified jurisdictions."

Do you want me to revise Section 4 of the EOL Legal and Privacy statement to
conform to the ClickPaper language or are you comfortable with the EOL
language as currently drafted.

I have attached a final version of the EOL Legal and Privacy statement for
your review and reference.

Regards,

Leslie


Finley,

Can we schedule a conference call with the HR folks at Celgar?

Thanks.

Michelle


Neither ENA/RAC/EGF employees nor family members or others living in their
household or financially dependent on the ENA/RAC/EGF employee may purchase
or sell securities of any entity (or derivatives thereof) listed on the
Restricted List for your or their personal or related accounts or recommend
the purchase or sale of such securities to any person, except with the prior
approval of the Compliance Department in consultation with the ENA Legal
Department.

In addition to the trading restrictions above, should you at any time possess
non-public material information about any public company, you, your family
members and anybody that is financially dependent on you, are restricted from
trading in that issue, and you may not disclose the non-public material
information to anyone that does not have a business need to know.

Company Name Stock Symbol

3 TEC Energy Corp.       TTEN
Active Power ACPW
Adrian Resources ADRRF
Beau Canada Exploration Ltd BAU CN
Belco Oil & Gas Corporation BOG
Bonus Resource Services Corp BOU
Brigham Exploration BEXP
CanFibre Group Ltd. CFGL
Carrizo Oil & Gas Inc. CRZO
Costilla Energy COSE
Crown Energy CROE
CyNet, Inc. CYNE
Cypress Energy CYZ
Esenjay Exploration ESNJ
FirstWorld Communications Inc. FWIS
Hanover Compressor Co. HC
ICE Drilling Enterprises Inc. IDF
Industrial Holdings, Inc. IHII
Inland Resources, Inc. INLN
Kafus Environmental Industries, Inc. KS
Nakornthai Strip Mill Public Co Ltd NSM SET
Paladin Resources PLC PLR LD
Paradigm Geophysical PGEOF
Place Resources, Inc. PLG CN
Quanta Services Inc. PWR
Queen Sand Resources, Inc. QSRI
Quicksilver Resources Inc. KWK
Saxon Petroleum, Inc. SXN CN
Southwest Royalties SWROY
Startech SEH CN
Syntroleum Corp. SYNM
Tejon Ranch Corp. TRC
Tetonka Drilling TDI
TransCoastal Marine Services, Inc. TCMS

The Restricted List is solely for the internal use of ENA/RAC/EGF.  No one
may engage in discussions regarding whether a security is or is not on the
Restricted List with persons outside ENA/RAC/EGF without specific clearance
from the Compliance Department in consultation with the ENA Legal Department.

In addition to the above, you are reminded that pursuant to Enron Corp.'s
Risk Management Policy ("Policy"), no ENA/RAC/EGF employee may engage in the
trading of any "Position"  ("Position" means any  commodity, financial
instrument, security, equity, financial asset or liability that are
authorized for trading in
the

Policy for the benefit of any party other than ENA/RAC/EGF, whether for
his/her own account or the account of any third party, where such Position
relates to (i) any commodity,  financial instrument, security, equity,
financial asset or liability which falls within such employee's
responsibility at ENA/RAC/EGF or (ii) any energy commodity.

The prohibitions listed above do not replace or modify the policies set forth
in ENA's Policies and Procedures Regarding Confidential Information and
Securities Trading, Enron Corp.'s Risk Management Policy, or Enron Corp.'s
Conduct of Business Affairs.  Should you have any questions regarding the
above, please contact me at ext. 31939.


Jeff, I've attached a copy of the letter describing
the loan of the Madeline O'Connor piece to the McNay
Museum in San Antonio this summer. Please let me or
Betty Moody at Moody Gallery know if you have any
questions. Also, have you had a chance to make a
decision about a piece for the niche between the boys'
rooms? Thanks. Leigh Edwards
--- Joannie.Williamson@enron.com wrote:
> Could you call me regarding a Madeline O'Connor
> piece.
>
> Thanks,
> Joannie
> 713-345-7774
>
>

__________________________________________________
Do You Yahoo!?
Yahoo! Auctions - buy the things you want at great prices
http://auctions.yahoo.com/
 - SKIdecisions.doc


Here's the presentation from the diskette.

Janette Elbertson
Enron North America Corp.
Legal Department - EB3326
Telephone:  (713) 853-7906
Fax:  (713) 646-2600
janette.elbertson@enron.com


Rose/Cheryl,

Your call.

Kay

"Taylor, Rob" <robtaylor@akllp.com> on 12/07/2000 04:45:49 PM
To: <Kay.Mann@enron.com>, "Thompson, Peter J." <peterthompson@akllp.com>,
"Cobb, Chris" <chriscobb@akllp.com>, <lee.johnson@ss.ps.ge.com>,
<kent.shoemaker@ae.ge.com>
cc: <Cheryl.Lipshutz@enron.com>, <Roseann.Engeldorf@enron.com>,
<Brett.R.Wiggs@enron.com>, <Ben.Jacoby@enron.com>

Subject: RE: ESA facility agreement - close to execution version

Please advise as to whether the current version should be forwarded to
Winston & Strawn for their sign-off (since they are familiar with the
existing GE Contract, their review should be perfunctory).

Thanks,

Rob

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Thursday, December 07, 2000 4:42 PM
To: Thompson, Peter J.; Cobb, Chris; lee.johnson@ss.ps.ge.com;
kent.shoemaker@ae.ge.com
Cc: Cheryl.Lipshutz@enron.com; Roseann.Engeldorf@enron.com;
Brett.R.Wiggs@enron.com; Ben.Jacoby@enron.com; Taylor, Rob
Subject: ESA facility agreement - close to execution version

The first facility agreement which needs to be finished is the ESA
Facility
Agreement.  Peter and/or Chris, could you please send/re-send the most
recent version with a email stating any open issues, copying everyone on
this email.  We need to get this one ready to sign tomorrow, if at all
possible.

My understanding of the commercial deal is that the scope should include
change order #3, with 75% of the value of change order #3 payable on or
before Dec. 27, 2000, and 25% of change order #3 being added to the
January, 2000 payment.

Kent/Lee, sorry I didn't mention this in our phone call this afternoon.
That's what happens when I'm not working from my list.

Thanks,

Kay


While I recognize the sensitivity of CCC and Dynegy, et al, to the problems
created by their previous signatures to the Interim settlement, I believe
the term section of the Interim settlement could reasonably be interpreted
to indicate that no other change of consequence, specifically:

  Provisions that the Commission agrees not to require
SoCalGas to implement prior to January 1, 2003 include, but are not limited
to, the following:  the establishment of a system of firm, tradable rights
in SoCalGas' intrastate transmission capacity and/or receipt point capacity
that would necessitate or create the likelihood of either rate design
changes or cost shifts between customer classes; the unbundling of the cost
of SoCalGas' intrastate transmission system; the institution of full-time
daily balancing for transportation service; any further unbundling of
storage costs; the implementation of shareholder risk for storage different
than the options provided in Section VII. of this Settlement;

I therefore would be hesitant to indicate that they do not oppose any
provision of the Interim settlement.  This is kind of sticky, but we have to
be careful how we word things...
--
Michael S. Alexander
Southern California Edison
Energy Supply and Marketing
626-302-2029

 ----------
 From:  Tom Beach [SMTP:tomb@crossborderenergy.com]
 Sent:  Friday, May 19, 2000 10:33 AM
 To:  Scott, Addis B.; Tom, Gwoon - TPGYT; Mumford, Joel - TP4JDM;
Bisi, David - TP1DMB; Nelson, Eric B. - TPEBN; ack@aelaw.com; 'Khoury,
Dexter'; 'Jun, Christine'; 'How-Downing, Lindsey'; Barker, David - TPDTB;
Wright, Gillian - TP1GXW; Watson, Steven - TP2SAW; Van Lierop, Jan - TP2JXV;
Teeter, James S.; Takemura, Earl - TPEKT; Suwara, J.- TPJUS; Surak, Thomas
M. - TP1TMS; Sullivan, Glen J.; Smith, Anne S. -  TPASS; Schavrien, Lee;
Sakarias, Wayne P.; Reed, William; Purves, Ralph A.; Morrow, Rick - TP3RMM;
McVay, Nancy W - TPNWM; Lorenz, Lad - TPLPL; Hubbard, Lisa J.; Hay, James
E.; Harrigan, James P. - TP1JPH; Gaines, Mark - TPMFG; Freeman, Kimberly;
Fong, Ed; Follett, B. David - TPDBF; Davis, Robert E.; Brill, Thomas R.;
Betonte, Robert - TP2RSB; susan.scott@enron.com; RochmanM@spurr.org;
RochmanM@cubjpa.org; Porter, Douglas K; rmp@cpuc.ca.gov; jmpa@dynegy.com;
kmccrea@sablaw.com; karpjos@sf.whitecase.com; Johnson_Pamela@lacoe.edu;
johnj@bcjlaw.com; plg@cpuc.ca.gov; rfoss@coral-energy.com;
Jfawcet@enron.com; eke@aelaw.com; Douglass@arterhadden.com;
bdingwall@unitedgas.com; Mday@gmssr.com; Jdasovic@enron.com;
Rick.Counihan@greenmountain.com; Craigc@calpine.com; Burkee@cts.com;
david.bayless@utility.com; paulamirault@aec.ca; Alexander, Michael S;
'Cherry, Brian - TPBKC'; Leslie, John
 Cc:  David Dyck; Tom Lu
 Subject:  Final Draft of Tom Beach's Prepared Rebuttal Testimony

 Here is the final draft of my rebuttal testimony.  I will be
spending the rest of the morning cleaning up the few remaining holes for
numbers, etc.  Please note I have added extensive rebuttal to the SCGC /
TURN study showning that demand charges could increase EG fixed costs by up
to 20%.  The study, which Edison received in a data response late Wednesday,
is very weak.  Please call with any final comments by 1 p.m. today.

 Also -- this draft has revised language indicating that this
testimony is not meant to express the CCC's or Dynegy's opposition to any
element of the Interim Settlement.  I would appreciate any feedback on
whether this language is consistent with how other signatories to the
Interim Settlement are dealing with this issue.

 Tom Beach

  ----- Original Message -----
  From: Tom Beach <mailto:tomb@crossborderenergy.com>
  To: Leslie, John <mailto:jleslie@LUCE.com>  ; 'Cherry, Brian
- TPBKC' <mailto:BCherry@sempra.com>  ; AlexanMS@sce.com
<mailto:AlexanMS@sce.com>  ; paulamirault@aec.ca
<mailto:paulamirault@aec.ca>  ; david.bayless@utility.com
<mailto:david.bayless@utility.com>  ; Burkee@cts.com <mailto:Burkee@cts.com>
; Craigc@calpine.com <mailto:Craigc@calpine.com>  ;
Rick.Counihan@greenmountain.com <mailto:Rick.Counihan@greenmountain.com>  ;
Jdasovic@enron.com <mailto:Jdasovic@enron.com>  ; Mday@gmssr.com
<mailto:Mday@gmssr.com>  ; bdingwall@unitedgas.com
<mailto:bdingwall@unitedgas.com>  ; Douglass@arterhadden.com
<mailto:Douglass@arterhadden.com>  ; eke@aelaw.com <mailto:eke@aelaw.com>  ;
Jfawcet@enron.com <mailto:Jfawcet@enron.com>  ; rfoss@coral-energy.com
<mailto:rfoss@coral-energy.com>  ; plg@cpuc.ca.gov <mailto:plg@cpuc.ca.gov>
; johnj@bcjlaw.com <mailto:johnj@bcjlaw.com>  ; Johnson_Pamela@lacoe.edu
<mailto:Johnson_Pamela@lacoe.edu>  ; karpjos@sf.whitecase.com
<mailto:karpjos@sf.whitecase.com>  ; kmccrea@sablaw.com
<mailto:kmccrea@sablaw.com>  ; jmpa@dynegy.com <mailto:jmpa@dynegy.com>  ;
rmp@cpuc.ca.gov <mailto:rmp@cpuc.ca.gov>  ; porterdk@sce.com
<mailto:porterdk@sce.com>  ; RochmanM@cubjpa.org
<mailto:RochmanM@cubjpa.org>  ; RochmanM@spurr.org
<mailto:RochmanM@spurr.org>  ; susan.scott@enron.com
<mailto:susan.scott@enron.com>  ; Betonte, Robert - TP2RSB
<mailto:RBetonte@socalgas.com>  ; Brill, Thomas R.
<mailto:TBrill@sempra.com>  ; Davis, Robert E. <mailto:REDavis@sempra.com>
; Follett, B. David - TPDBF <mailto:DFollett@sempra.com>  ; Fong, Ed
<mailto:EFong@SDGE.com>  ; Freeman, Kimberly <mailto:KFreeman@sempra.com>  ;
Gaines, Mark - TPMFG <mailto:MGaines@socalgas.com>  ; Harrigan, James P. -
TP1JPH <mailto:JHarrigan@socalgas.com>  ; Hay, James E.
<mailto:JHay@sempra.com>  ; Hubbard, Lisa J. <mailto:LJHubbard@sempra.com>
; Lorenz, Lad - TPLPL <mailto:LLorenz@socalgas.com>  ; McVay, Nancy W -
TPNWM <mailto:NMcVay@socalgas.com>  ; Morrow, Rick - TP3RMM
<mailto:RMorrow@socalgas.com>  ; Purves, Ralph A. <mailto:RPurves@SDGE.com>
; Reed, William <mailto:WReed@sempra.com>  ; Sakarias, Wayne P.
<mailto:WSakarias@SDGE.com>  ; Schavrien, Lee <mailto:LSchavrien@sempra.com>
; Smith, Anne S. - TPASS <mailto:ASmith@sempra.com>  ; Sullivan, Glen J.
<mailto:GSullivan@sempra.com>  ; Surak, Thomas M. - TP1TMS
<mailto:TSurak@socalgas.com>  ; Suwara, J.- TPJUS
<mailto:JSuwara@sempra.com>  ; Takemura, Earl - TPEKT
<mailto:ETakemura@socalgas.com>  ; Teeter, James S.
<mailto:JTeeter@SDGE.com>  ; Van Lierop, Jan - TP2JXV
<mailto:tp2jxv@socalgas.com>  ; Watson, Steven - TP2SAW
<mailto:SWatson@socalgas.com>  ; Wright, Gillian - TP1GXW
<mailto:GWright@sempra.com>  ; Barker, David - TPDTB
<mailto:DBarker@socalgas.com>  ; 'How-Downing, Lindsey'
<mailto:lindseyhowdowning@dwt.com>  ; 'Jun, Christine'
<mailto:chj@aelaw.com>  ; 'Khoury, Dexter' <mailto:bsl@cpuc.ca.gov>  ;
ack@aelaw.com <mailto:ack@aelaw.com>  ; Nelson, Eric B. - TPEBN
<mailto:ENelson@socalgas.com>  ; Bisi, David - TP1DMB
<mailto:DBisi@socalgas.com>  ; Mumford, Joel - TP4JDM
<mailto:JMumford@socalgas.com>  ; Tom, Gwoon - TPGYT
<mailto:GTom@socalgas.com>  ; Scott, Addis B. <mailto:AScott@SDGE.com>
  Sent: Tuesday, May 16, 2000 5:46 PM
  Subject: Re: Tom Beach's Prepared Rebuttal Testimony

  Attached please find Word and Wordperfect versions of Tom
Beach's draft rebuttal testimony in the Gas OIR proceeding, on behalf of the
Indicated Electric Generators.
  I look forward to comments from any of the supporters of the
Comprehensive Settlement.

  Tom Beach
 <<File: EG Rebuttal Testimony on GIR Settlement.doc>><<File: EG
Rebuttal Testimony on GIR Settlement.wpd>>


Hey, Eric.  How are things in Houston?  I can't believe everything that's going on at Enron right now.  Who ever would have thought Enron would be appealing to Dynegy to buy them?  I'm sure things are pretty crazy right now.  Are you planning to stay on if this goes through?  Not too much new to report here.  Classes are going well, but they're keeping me busy as usual.  It's starting to get really cold here, so I'm going to miss the Houston winter.  I just got an email from Ashley that he and Lani got engaged a couple of days ago.  I doubt you see them too often, but I thought you'd be interested.  Hope things are going well for you.

Brian

________________________

Brian T. Hoskins
117 HBS Student Mail Center
Boston, MA 02163
617-970-1021 (Mobile/Home)
815-352-2164 (Fax)
bthoskins@hotmail.com


I will be able to attend.
----- Forwarded by Tana Jones/HOU/ECT on 06/19/2000 01:03 PM -----

	Carol St Clair
	06/16/2000 03:57 PM

		 To: Mark Taylor/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Shari
Stack/HOU/ECT@ECT, Jason Peters/Corp/Enron@Enron, Susan Flynn/HOU/ECT@ECT,
Susan Bailey/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron, Tana
Jones/HOU/ECT@ECT, Marie Heard/Enron Communications@Enron Communications
		 cc: Suzanne Adams/HOU/ECT@ECT
		 Subject: Lunch For Rod Nelson

Group:
Mark has okay'ed having a going away lunch for Rod.  Looks like the week of
June 26th works best for Rod.  Please e-mail Suzanne Adams by Monday of next
week any days that week that do not work for you so we can pick a date.
Thanks.
Carol


PLEASE READ THIS IMPORTANT INFORMATION CONCERNING THE ENRON STOCK FUND IN THE ENRON CORP. SAVINGS AND ESOP PLANS

On Friday, January 11, trading of Enron stock was suspended on the New York Stock Exchange (NYSE).  All Savings and ESOP Plan transactions, including 401(k) payroll contributions,  involving this fund were placed in a pending status until trading resumed.

As announced by Enron's Office of the Chair on Wednesday, January 16, Enron stock would now be traded Over The Counter (OTC).  Upon receiving this information, work began immediately to develop a process that allows for OTC trades in the plans.

On Thursday, January 17, Enron initiated a process to facilitate OTC trades of Enron stock inside the 401(k) and ESOP and all pending transactions were processed using Thursday's closing price.

Now that trading has resumed, we urge you to review your investment elections to ensure that they are consistent with your investment goals.

As things change, we will continue to update you.

Enron Benefits Department


Travis McCullough
Enron North America Corp.
1400 Smith Street EB 3817
Houston Texas 77002
Phone:  (713) 853-1575
Fax: (713) 646-3490
----- Forwarded by Travis McCullough/HOU/ECT on 07/06/2000 12:13 PM -----

	John Cummings
	06/21/2000 06:17 PM

		 To: Travis McCullough/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT
		 cc:
		 Subject: Access to Clickpaper Staging environment

---------------------- Forwarded by John Cummings/HOU/ECT on 06/21/2000 06:15
PM ---------------------------
From: Keith Couch@ENRON on 06/20/2000 04:38 PM
To: John Cummings/HOU/ECT@ECT
cc: Jeff Harbert/HOU/ECT@ECT, Brandon Wax/HOU/ECT@ECT, Greg
Piper/Corp/Enron@Enron, Bob Crane/HOU/ECT@ECT, Hal Elrod/Corp/Enron
Subject: Access to Clickpaper Staging environment

John, as you requested, here is information on how to get in to the
Clickpaper staging environment.  Anytime you want to go in and check out the
site content or try out the auction, please go ahead.

The version running out there is the version we are currently testing (in a
different environment.)  This version has known bugs that we are working to
fix.  If you come across anything that you think we should know about (like a
bug, a usability problem, or something that needs improving), please email,
call, or trip me when I walk by.  I can quickly determine if we are already
working on the problem or if it should be added to our list.

URL is http://testpulpweb1.ecomtest.enron.com

Available ID's:
trader1 through trader20.  You will want to use more than one id to simulate
posting a sell or buy, and then responding to that posting.
password for all id's is test.

Any questions, let me know.

KNC
713-853-4828


----- Forwarded by Richard B Sanders/HOU/ECT on 10/17/2000 09:14 AM -----

	Eric Thode@ENRON
	10/17/2000 08:43 AM

		 To: Richard B Sanders/HOU/ECT@ECT
		 cc:
		 Subject: Enron Mentions

The last article...

---------------------- Forwarded by Eric Thode/Corp/Enron on 10/17/2000 08:43
AM ---------------------------

Karen Denne
10/17/2000 07:15 AM
To: Eric Thode/Corp/Enron@ENRON
cc:

Subject: Enron Mentions

fyi, TVA article... are you the spokesman?
---------------------- Forwarded by Karen Denne/Corp/Enron on 10/17/2000
07:17 AM ---------------------------

	From:  Ann M Schmidt                           10/17/2000 07:11 AM

To: Mark Palmer/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Meredith
Philipp/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Mary
Clark/Corp/Enron@ENRON, Laura Schwartz/Corp/Enron@Enron, Elizabeth
Linnell/NA/Enron@Enron
cc:

Subject: Enron Mentions

Enron's Third-Quarter Profit Rises 31 Percent as Sales Surge
10/17/0 7:36 (New York)

Enron's Third-Quarter Profit Rises 31 Percent as Sales Surge

     Houston, Oct. 17 (Bloomberg) -- Enron Corp., the world's
largest energy trader, said third-earnings rose 31 percent as
revenue more than doubled.
     Net income rose to $292 million, or 34 cents a share, from
profit from operations of $223 million, or 27 cents, in the year-
earlier quarter. Enron was expected to earn 32 cents a share, the
average estimate of analysts polled by First Call/Thomson
Financial. Revenue rose to $30 billion from $11.84 billion.
     Revenue from Enron's wholesale energy operations and services
unit, which consists of marketing energy commodities and investing
in energy-related assets, more than doubled to $28.2 billion from
$11.1 billion. Revenue from its retail energy services business
almost tripled to $1.48 billion from $542 million.
     In the year-earlier quarter, a gain of $345 million, or
44 cents a share, and a charge of $278 million, or 36 cents, made
net income $290 million, or 35 cents.
     Shares in the Houston-based company rose 50 cents to $80
yesterday. They've risen 80 percent this year.

--Per H. Jebsen in the New York newsroom (212) 893-3368, or
pjebsen@bloomberg.net, through the Princeton newsroom (609) 279-
4000/als

Story illustration: To see the breakdown of Enron's annual sales,
see {ENE US <Equity> DES6 <GO>}.

USA: Enron earnings rise 31 percent, beat expectations.

10/17/2000
Reuters English News Service
(C) Reuters Limited 2000.

HOUSTON, Oct 17 (Reuters) - Enron Corp., North America's biggest buyer and
seller of electricity and natural gas, said on Tuesday its third-quarter
earnings rose 31 percent, beating Wall Street's expectations as online
trading helped drive strong growth at its wholesale energy operations.
Recurring net income rose to $292 million or 34 cents per share from $223
million or 27 cents in the third quarter of 1999. Wall Street analysts had
expected earnings of 32 cents a share, according to First Call/Thomson
Financial.
"Our wholesale and retail energy businesses have achieved record-setting
levels of physical deliveries, contract originations and profitability," said
Chairman and CEO Ken Lay.
"We operate in some of the largest and fastest growing markets in the world,
and we are very optimistic about the continued strong outlook for our
company," Lay added.
Enron, which has recently branched out beyond energy into fields such as
broadband telecommunications and metals trading, said third-quarter revenues
rose 154 percent to $30 billion compared with the same period of 1999. The
company's stock has risen some 80 percent so far this year.

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

Oct. 16, 2000, 10:35PM
Arena-backers promote plan to group of Hispanic leaders
By JANETTE RODRIGUES
Copyright 2000 Houston Chronicle
Pro-arena forces did some direct marketing to the Hispanic community Monday,
pitching the $175 million plan to a grass-roots group of Latino leaders.
More than 150 community activists and leaders, precinct judges and
civic-association members attended an informational meeting and
get-out-the-vote rally for the Nov. 7 arena referendum. The rally was
sponsored by the Let's Build It Together political action committee.
"By having our Hispanic community come out in force for issues like this, it
empowers us," said Celina Garza-Ridge, a Harris County-Houston Sports
Authority director. "It's very important to be able to say the Hispanic
community made a difference, and we are exactly in that position."
George Postolos, the Houston Rockets' chief operating officer, said the team
is actively courting the Hispanic community.
The pro-arena committee, headed by former Reliant Energy Chairman Don Jordan,
and Ken Lay, Enron chairman and chief executive officer, does not want a
repeat of the 1999 referendum.
Voters last November soundly defeated the previous arena proposal. The sports
authority is a governmental body whose members are appointed by the city and
county to oversee and develop sports venues.
The Rockets made a 30-percent participation commitment, similar to the one
made four years ago by the Houston Astros for Enron Field, to fairly share
the new arena's design and construction jobs with minorities and women.
The team also promised to distribute up to $50,000 a year in neighborhood
improvement grants of up to $1,000 each to worthy grass-roots, nonprofit
organizations and civic clubs in inner-city Houston. The new program targets
the Hispanic community, Postolos said.
The new arena plan is being endorsed by a cross-section of Latino leaders,
including City Councilmen John Castillo and Gabriel Vasquez, state Rep. Mario
Gallegos, the Hispanic Chamber of Commerce and others.
Vasquez told meeting attendees that the city, and the Hispanic community, is
getting more tangibles this time around.
He said, "When you consider that our community will get 30 percent
affirmative action, that our youth will be taken care of through youth
outreach programs and our neighborhoods will be taken care of as well, this
is a really good deal for Houston and this is a really good deal for the
Hispanic community."
Mercedes Alejandro, who represents Parents for Public Schools of Houston,
heard the details of the plan for the first time.
"It's good if it creates jobs for the community, and opportunities to rebuild
the community," she said. "We want it to be good for the whole, not the few."
Humberto Barrera, president of the Mexican American Sheriffs Organization,
was critical of Hispanic leaders, not the arena plan.
"I think Hispanic leaders should be more concerned about issues like pay
raises for teachers, health care and public safety, than building arenas for
rich entrepreneurs," Barrera said.
Richard Torres, director and CEO of the Hispanic Chamber of Commerce, told
attendees that the Rockets are committed to doing the right thing.
Sergio Davila, president of the Eastwood Civic Association, brought up the
lack of Latinos in leadership positions on the team's staff. Postolos
acknowledged that the team needs to do better.

TVA Says Enron Breach Of Power Sales Pact Cost $140 Mln
By Bryan Lee

10/16/2000
Dow Jones Energy Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

OF DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The nation's top two power providers are battling in
a U.S. court over an unexecuted power sales agreement.
The Tennessee Valley Authority (TVA) has filed a claim against the power
marketing unit of Enron Corp. (ENE) alleging breach of a power sales
contract.
TVA cited the alleged breach of contract in documents provided to its
distribution utility customers earlier this month outlining unforeseen
expenses contributing to the government-owned utility's inability to meet its
debt-reduction forecast.
According to the documents, obtained by Dow Jones Newswires, the alleged
breach of contract contributed to a $140 million shortfall during fiscal year
2000.
TVA was initially reluctant to divulge information on the case, which is
under a court protective order.
"A major power provider elected not to perform under the contract," said
David Smith, TVA's chief financial officer, when asked Friday to elaborate on
the line item in the information provided to TVA's distribution utility
customers.
But after consulting with attorneys, Smith revealed that Enron was the
subject of the claim.
TVA alleged breach of contract after Enron sought a declaratory judgment
order from the U.S. District Court in Chattanooga, Tenn., in February,
stemming from a dispute over a long-term sales agreement, an Enron spokesman
said Monday.
In March, TVA filed a counter claim with the court alleging breach of
contract, a TVA spokesman said Monday.
But the two parties declined to discuss the terms of the contract, or to
elaborate further on the dispute, citing the judge's protective order. TVA
said Enron sought the court seal.
The dispute is the latest example of bad blood between the Houston-based
energy giant and TVA, a government-owned utility that ranks among the largest
U.S. power producers.
The relationship deteriorated after the two began squabbling over access to
the lucrative U.S. Midwest power market, which saw extreme price spikes
during hot weather in the summers of 1998 and 1999.
After the summer of 1998 - in which power that typically sells for between
$30 and $50 per megawatt-hour spiked as high as $7,000 per megawatt-hour -
Enron cited a study showing that TVA's power grid represented the only
unconstrained transmission pathways into the Midwest.
TVA experienced an increase in revenues for the period when power prices were
spiking upward.
Enron built gas-fired peaking power plants with an eye toward capitalizing on
the volatility in summer power markets by purchasing transmission access
across TVA's system.
After the summer of 1999 saw a repeat in extreme price volatility, Enron
began complaining that TVA was unfairly denying transmission service by
failing to act in a timely manner in response to transmission service
requests.
A TVA spokesman said the contract dispute was unrelated to the disagreement
over the government utility's handling of transmission-access requests.
But the filing of the court case occurred at the same time Enron went public
with its complaints about TVA's transmission service.
In February, Enron released a letter to Energy Secretary Bill Richardson
asking for the government's help, charging that TVA was unfairly giving its
own power marketer transmission service on a timely basis while Enron's
requests were gathering dust.
Enron later dropped the matter, saying that TVA was processing its
transmission service requests on a timely basis. -By Bryan Lee, Dow Jones
Newswires, 202-862-6647,
bryan.lee@dowjones.com

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


Under commitments to PEC, Enron has commited to provide office, computers, trading systems, etc.  If this is changing, I need to know quickly.  I have been provided indications from several outside counterparties, some divisions within Newco and I thought Netco as holding interest in purchasing the Chicago business.  Due to the obvious indication of value for the joint venture with PEC, I believe it imperative that the business/office be operational until March, 2002, at a minimum.

Please advise.

Laura Luce

-----Original Message-----
From: Shepperd, Tammy R.
Sent: Thu 1/3/2002 9:20 AM
To: Luce, Laura
Cc:
Subject: FW: remote offices

Laura,
I understand that the Metals group has asked to keep the Chicago office open until Mar 31 to wind things down.  Do you have any new information on ENA's Chicago folks at this time?  We may ask for a 60 day extension under bankruptcy orders to terminate the lease.

Thanks,
Tammy

 -----Original Message-----
From:   Kitchen, Louise
Sent:   Wednesday, December 19, 2001 6:23 PM
To:     Shepperd, Tammy R.; Colwell, Wes
Cc:     Mccarthy, Lance; Corey, Paula; Helton, Susan; Miller, Don (Asset Mktg)
Subject:        RE: remote offices

OK

Please check with Don Miller too.  Netco does not want San Francisco going forward and probably not Chicago.

 -----Original Message-----
From:   Shepperd, Tammy R.
Sent:   Wednesday, December 19, 2001 4:25 PM
To:     Colwell, Wes; Kitchen, Louise
Cc:     Mccarthy, Lance; Corey, Paula; Helton, Susan
Subject:        remote offices

We have asked EPSC to pay the following leases for the month of January based on feedback from ENA commercial leadership.  My understanding is that we may still reject these leases under the bankruptcy if we do so by Feb 2.  I will revisit the status of these leases with you before February rents are to be paid.

Calgary
Portland
San Francisco
Chicago
Denver

I have also been contacted by Paula Corey,  who is working on the enterprise strategy for the retrieval and disposition of remote office contents in the event any of these offices are closed.  I will keep you posted on the recommendations.

Regards,
Tammy


Ms. Alexander:

	At the request of Tanya Rohauer with Enron, I am forwarding you a form Master Netting, Setoff, and Security Agreement together with a Collateral Annex.  I will start preparing specific documents for Williams, but thought this might be a good starting place.

	I would appreciate it if you could forward these on to all appropriate parties.  In particular, if I could get the name of your lawyer so that I could forward things directly to him or her, that would be greatly appreciated.

Thanks so much.

Jeff Hodge
713-853-6911


I need to call the place today.  You go ahead and make plans - some Tony's
margaritas will do you some good.  I can take them to their first session if
need be. It's only 30 minutes.  Their instructor is a college student named
Frank - he has been training down there for the last four months, but this
is his first session to teach.  I guess I am a little apprehensive about
that - but then I think, I was teaching kids by myself at age 13.  Funny,
how it's different when you think about entrusting your kids with someone
else.  What are your thoughts?

-----Original Message-----
From: Parks, Joe [mailto:Joe.Parks@ENRON.com]
Sent: Monday, February 25, 2002 11:48 AM
To: Kim Parks (E-mail)
Subject:

what about swim lessons. let me know if they are going thursday, because of
the potential outing thurs

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


----- Forwarded by Steven J Kean/NA/Enron on 02/28/2001 01:51 PM -----

	Miyung Buster@ENRON_DEVELOPMENT
	02/28/2001 10:02 AM

		 To: Ann M Schmidt/Corp/Enron@ENRON, Bryan Seyfried/LON/ECT@ECT,
dcasse@whwg.com, dg27@pacbell.net, Elizabeth Linnell/NA/Enron@Enron,
filuntz@aol.com, James D Steffes/NA/Enron@Enron, Janet
Butler/ET&S/Enron@ENRON, Jeannie Mandelker/HOU/ECT@ECT, Jeff
Dasovich/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, John
Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John Sherriff/LON/ECT@ECT,
Joseph Alamo/NA/Enron@Enron, Karen Denne/Corp/Enron@ENRON, Lysa
Akin/PDX/ECT@ECT, Margaret Carson/Corp/Enron@ENRON, Mark
Palmer/Corp/Enron@ENRON, Mark Schroeder/LON/ECT@ECT, Markus
Fiala/LON/ECT@ECT, Mary Hain/HOU/ECT@ECT, Michael R Brown/LON/ECT@ECT, Mike
Dahlke/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mona L Petrochko/NA/Enron@Enron,
Nicholas O'Day/AP/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Peggy
Mahoney/HOU/EES@EES, Peter Styles/LON/ECT@ECT, Richard
Shapiro/NA/Enron@Enron, Rob Bradley/Corp/Enron@ENRON, Roger Yang/SFO/EES@EES,
Sandra McCubbin/NA/Enron@Enron, Shelley Corman/ET&S/Enron@ENRON, Stella
Chan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J Kean/NA/Enron@Enron, Susan
J Mara/NA/Enron@Enron, Mike Roan/ENRON@enronXgate, Alex
Parsons/EU/Enron@Enron, Andrew Morrison/LON/ECT@ECT, lipsen@cisco.com, Janel
Guerrero/Corp/Enron@Enron, Shirley A Hudler/HOU/ECT@ECT
		 cc:
		 Subject: Energy Issues

Please see the following articles:

Governor Renews Criticism of Regulators
LA Times, 2/28/2001
Energy Crisis Fails to Hamper Selling of California Bonds
LA Times, 2/28/2001

Energy Crisis Is a Benefit to Redding
SF Chronicle, 2/28/2001

Davis: Power-crisis fixes almost finished
Sac Bee, 2/28/2001

Davis passed up Duke Energy's deals
Contra Costa Times, 2/28/2001

Davis fights for backing, takes state plan to D.C.
San Diego Union Tribune, 2/27/2001

Duke Energy Suspends Suits Vs. Calif.
AP, IndividualNews.com, 2/28/2001

Calif. Optimistic About Power Line
AP, IndividualNews.com, 2/28/2001

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Wednesday, February 28, 2001

Governor Renews Criticism of Regulators

Power: The governor implies that the panel is too ideological. Its approval
is needed if California is to purchase the electricity transmission grid.

By DAN MORAIN and NANCY VOGEL, Times Staff Writers

?????WASHINGTON--Gov. Gray Davis, trying to win support for California's plan
to buy a huge stretch of the state's electrical transmission system, took a
swipe Tuesday at the federal commission that must bless such a deal.
?????Davis noted that President Bush has an opportunity to fill two vacancies
on the five-member Federal Energy Regulatory Commission and will determine
its chairman.
?????"It is my hope," Davis said, "that whoever the president chooses is a
practical businessman or woman who lives in the real world and understands
that when you inherit a mess, your job is to fix it, right the ship and move
forward--as opposed to being a rigid adherent to ideology."
?????Earlier this year, Bush appointed Curt Hebert Jr., a strong free-market
proponent who has served on the commission since 1999, as chairman. But he
can change that appointment.
?????Hebert, a 38-year-old attorney and former Mississippi lawmaker, has said
Davis' plan to have California buy 32,000 miles of high-tension power lines
from the state's ailing utilities would amount to "nationalization" and might
not be in the public interest.
?????The commission has been a strong advocate of electricity deregulation
and, in addition to the dispute over purchase of the power grid, Davis has
criticized its members for refusing to impose limits on soaring wholesale
power prices, which bled California utilities of billions of dollars in the
last nine months.
?????"We have practical problems we have to solve," he said, citing the
billions of dollars the utilities owe power generators and banks. "My hope is
that [Bush] places people on the FERC who understand real-world
considerations."
?????Hebert could not be reached for comment Tuesday. The commission's two
other members, William L. Massey and Linda K. Breathitt, Democrats appointed
by former President Bill Clinton, were also unavailable. There are two
vacancies on the panel.
?????Davis spoke after conferring for 30 minutes with U.S. Energy Secretary
Spencer Abraham about the state's proposal to help the financially ailing
utilities by purchasing the power grid. He presented Abraham with a nine-page
memo detailing the plan and said the energy secretary would probably give him
his views on the plan by the end of the week.
?????Last week, the governor struck a tentative deal with Southern California
Edison to buy its portion of the grid for $2.76 billion, more than twice the
book value. He is working on similar deals with Pacific Gas & Electric and
San Diego Gas & Electric. Utilities could use money from the sale to
restructure their multibillion-dollar debt.
?????Although Abraham has no direct authority over the energy commission, he
presumably holds influence with Bush, and Davis came away from their
conversation buoyed.
?????"If he would endorse the plan," Davis said, "that would be a leg up in
getting FERC's approval. . . . I hope by the end of the week he will be able
to endorse the proposal or at least endorse a modified proposal that is
satisfactory to us.
?????"Believe me," Davis said, "I've been in enough meetings to know when
someone is trying to be helpful and when someone is not. [Abraham] is trying
to be helpful. He wants this problem solved, and . . . I believe he will
support our proposal to get Southern California Edison back into the energy
business."
?????Under federal law, the energy commission would have to approve
California's purchase of the steel towers and aluminum wires of its three
biggest private utilities. The commission could scuttle the purchase if it
determined that state ownership would harm the public interest--a legal
standard that gives the agency much discretion.
?????Walter Ferguson, Hebert's chief of staff, said Tuesday that Davis' plan
would get close scrutiny.
?????"Sure, we have to be open-minded, but I'm skeptical as to how this
helps," he said. "How does this solve the supply issue? How does this impact
the region? Those two questions have got to be answered, because you don't
want to make the problem worse."
?????California's proposal runs counter to the commission's 2-year-old push
to have transmission grids operate on a wide regional scale without heed to
political boundaries. In some parts of the Midwest and South, private
companies have proposed operating transmission systems for profit--a trend
endorsed by Hebert.
?????"I assume Hebert is going to be unenthusiastic, probably very
unenthusiastic [about California's proposal]," said Richard Pierce, a George
Washington University law professor who has observed the commission for
decades.
?????"Nobody at FERC is going to be real happy about a state trying to take
away from FERC jurisdiction over a large portion of a transmission grid," he
said. "I can't imagine any commissioner will like that. So what we're talking
about is the intensity of their dislike and whether it will be so great
they'll say, 'No, we won't approve it.' "
?????Consumer advocates and state Senate leader John Burton (D-San Francisco)
have endorsed state purchase of the transmission grid as a way to get
California out from under some federal oversight. Ownership would, for
example, allow the state to set the transmission fees that electricity
consumers pay. Those fees now amount to about 6% of the average utility
customer's monthly bill and are overseen by the energy commission.
?????Burton has also argued that state ownership would give California
greater control over its own destiny should federal officials try to force
the West to manage its interconnected grid under a single agency.
?????Federal rules already prohibit transmission grid owners from
discriminating, through fees or rules, against the generators and marketers
that use their lines like highways to move electricity from power plants to
buyers.
?????Davis, in trying to win support for state purchase of the grid, has not
focused on the freedom from federal regulators California might gain.
Instead, he has treated the idea as a key part of a financial transaction
necessary to revitalize debt-ridden utilities.
?????Davis said he expects that California would operate the transmission
system within federal restrictions.
?????"I am not looking forward to any additional regulatory burdens from
FERC," Davis said. "Obviously, we will meet the existing regulatory burden
that we have."
?????Whether the commission will approve a state purchase of the grid and how
long it will take to reach a decision are unknown, Edison International Chief
Financial Officer Ted Craver told debt holders Tuesday in a conference call.
He characterized Hebert's recent public statements on the matter as "cryptic."
?????A decision by FERC on sale of the grid could take "many months,"
according to research released Tuesday by Fitch Inc., a credit-rating firm.
?????Fitch called the tentative agreement between Edison and the state "a
favorable step to avoid bankruptcy," but noted that several hurdles remain,
chiefly approval by the state Legislature and the federal commission.
?????State Sen. Steve Peace (D-El Cajon) said that if the commission rejects
California's purchase of transmission lines, the state should simply condemn
the property.
?????"It was President Bush who told Gov. Davis that California should solve
this," said Peace. "Gov. Davis is doing so. Certainly President Bush would
expect the governor to use every tool at his disposal to solve it."
---
?????Times staff writers Richard Simon in Washington and Nancy Rivera Brooks
in Los Angeles contributed to this story.
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Wednesday, February 28, 2001

Energy Crisis Fails to Hamper Selling of California Bonds

By MIGUEL BUSTILLO, Times Staff Writer

?????The energy crisis is apparently not affecting California's ability to
finance its debt.
?????California successfully sold $982 million in bonds Tuesday to provide
funds for a variety of construction projects and already approved ballot
measures, including last year's $2.1-billion parks bond.
?????Most of the sale, $600 million, represents new funding, while the
remainder will be used to refinance older bonds at current, more favorable
interest rates.
?????The general obligation bonds, overseen by state Treasurer Phil
Angelides, will have a 4.8% rate of interest--which is actually lower than
the last few general obligation bonds issued before the energy crisis.
?????A day before the sale, Wall Street credit-rating firm Fitch IBCA blessed
the bond issue with a favorable AA credit rating, and reaffirmed its AA
rating for the state's $22.6 billion in outstanding bond debt. The two other
major rating agencies, Standard & Poor's and Moody's, rated the bonds Aa2 and
AA, respectively.
?????In releasing its rating, Fitch analysts concluded that, although the
energy crisis is taking a substantial toll on California's budget reserves,
that money will eventually be repaid through a $10-billion bond issue that
will be paid off by utility ratepayers.
?????Moreover, Fitch concluded, the state's per-capita debt of $787 is
moderate compared with that of other states--and the California economy has
yet to show any signs of being significantly affected by the crisis.
?????"In anything that's tangible--tax receipts, employment information--we
have yet to see a real effect," said Fitch vice chair Claire G. Cohen.
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BUSINESS
Energy Crisis Is a Benefit to Redding
George Raine
?
02/28/2001
The San Francisco Chronicle
FINAL
Page C1
(Copyright 2001)
High energy prices can create strange bedfellows.
Just ask Morpheus Lights Inc., a powerhouse in the entertainment industry
that has provided the lighting for the Academy Awards as well as the concerts
of Bruce Springsteen, Shania Twain, Metallica, and Ringo Starr and his All
Star Band.
A fixture in Santa Clara County, the company shifted its operations three
years ago 225 miles north of San Francisco to Redding, a city resting
comfortably between the Cascades and the Trinity Alps that is known more for
its Pendleton shirts and wily trout.
The move has paid off handsomely. This city of about 78,000 has escaped the
energy deregulation crisis that is roiling California and is, in fact, a
seller of surplus power.
That's good news to Morpheus, which consumes some 25,000 kilowatts a month to
test and manufacture huge performance lighting pieces like its BriteBurst,
which has enough power to light 3Com Park and was used in the 2000 Super Bowl
halftime festivities.
Morpheus is one of several success stories touted by the Economic Development
Corporation of Shasta County, which is attempting to sell businesses on an
outdoorsy quality of life in Redding, through which the Sacramento River
meanders and where labor is plentiful and costs are low.
But there's much more, the pitch goes: Redding is a unique electrical island
unto itself, with its own electric utility and ample surplus power to sell --
this while investor-owned utilities mull bankruptcy and the lights and the
patience of business owners flicker in much of the rest of California .
Other states and regions of the country have initiated economic development
campaigns to capitalize on California 's misfortune, seeking to lure
businesses disgruntled by the energy crisis.
But as much or more aggressive efforts are now being developed within
California to convince businesses they don't need to leave because there are
sanctuaries of electrical stability.
NONPROFIT LOCAL UTILITY
Redding has owned and operated its nonprofit electric utility since 1921. The
utility purchases significant amounts of its energy from the federally
operated Central Valley Project, through the Bonneville Power Administration
in the Northwest, and it generates energy at its own gas-fired power plant.
In fact, Redding Electric Utility (REU) has made so much money selling
surplus power that it expects to pay off its debt a year from now, two years
earlier than originally expected.
"We are a utility that has resources in excess of our needs and that's a nice
place to be," said Jim Feider, director of the REU.
Several months before most Californians knew a long-term energy crisis
loomed, the Economic Development Corporation of Shasta County, which seeks to
attract business and the wealth it generates, began to aggressively pursue
small and midsize Bay Area manufacturing businesses looking to expand and
relocate.
There is a lot of ground to make up in Shasta County, said Jim Zauher, the
EDC president. In 1970, 19 percent of the county's workforce was in
manufacturing and most of that was in the timber industry, which then
tumbled.
Since then, 4,000 jobs have been lost, and manufacturing is at 7 percent.
That figure has been stabilized, with 1,270 new jobs in the past four years.
The EDC has set a goal for the next five years of 1,500 jobs at $15 per hour.
In the Shasta County-area workforce of 84,000 (71,600 in Shasta and another
12,400 in Tehama County), a consultant's survey has identified 18,000
underemployed workers who have the skills, education and experience that
qualify them for a better job, said Zauher.
Two weeks ago, the Shasta County EDC retained a Silicon Valley insider, Bill
Haerle, former vice president for government relations and national accounts
at the American Electronics Association, and former MCI executive, as a
consultant. The EDC wants Haerle to create access to "low-tech" or "mid-tech"
manufacturers.
"First, a company has to decide the threshold question, whether it can
operate in the greater Redding area. Then they look at the cost of doing
business and a large component of that is a reliable source of reasonable
energy. The third is the labor pool," said Haerle.
STAYING IN STATE
"Shasta County offers a solution without leaving the state. But this is a
highly sensitive issue and we don't want to appear to be poaching," he said.
"We are looking for smaller companies that could flourish in the greater
Redding area."
Haerle has yet to reel in a company, but the path has been cleared by
Morpheus Lights, which moved up nearly three years ago, and a handful of
other small and midsize businesses in the past year.
In addition to energy savings, Morpheus has seen other dividends. The
lighting company, which was paying $1.55 a square foot for space in Santa
Clara, pays approximately 25 cents per square foot in Redding. This enabled
the company to move from a 30,000-square-foot space in Santa Clara to one
with 42,000 square feet in Redding.
The extra space enables concert tour stage and lighting designers to conduct
rehearsals with the computerized systems at the Redding site, said Dan
English, Morpheus' vice president of operations.
"We can be anywhere, as long as it's close to a major freeway, because the
equipment travels by truck. There's I-5," said English.
Nearby, Knauf Fiber Glass of Shelbyville, Ind., a leading U.S. manufacturer
of thermal and acoustical fiber-glass insulations, is building a $140 million
plant in Shasta Lake City. Some 2,000 people have applied for the plant's 150
jobs.
Shasta Lake City, too, has its own utility but does not generate power. It
buys power from the federal government and also contracts with Enron for
supplemental needs, and is negotiating for more to ensure a 24-hour operation
for Knauf.
Redding's energy situation is enviable. The REU reaches its demand peak at
215 megawatts in the summer, when its has access to between 285 and 300
megawatts, said director Feider. The excess is sold.
SELF-SUFFICIENCY GOAL
In the early 1990s, REU made a strategic decision to make costly capital
expenditures so that it could be more self-sufficent instead of being subject
to market conditions, said Feider.
When the electricity deregulation bill was signed in 1996, REU worried that
with its debt of $300 million from those improvements it would be at risk in
a competitive environment. As a result, it decided in 1997 to eliminate it
with a controversial 23 percent surcharge on customer bills.
The rates went from 8 cents a kilowatt hour to 10 cents, and the plan in 1997
was for the surcharge to continue through 2004. But Redding has prospered in
the surplus power market and now expects to eliminate the surcharge in early
2002.
Now, if everything goes according to form, the district could see a return to
a rate of 8 cents, said Feider.
Kevin Risse moved his Risse Racing, a high-end bicycle component
manufacturer, from Sunnyvale in June 2000. "We came up and heard the spiel
and power was one thing and, in hindsight, it turned out to be pretty
important," said Risse.
In Sunnyvale, his PG&E bill was $2,000 a month. In Redding, he pays from $800
to $1,000 monthly. Risse moved from a 4,000-square- foot space to an
8,000-square-foot building and cut his rent by more than half. It fell from
$1 per square foot to 35 cents, said Risse, whose company builds bicycle
shock absorbers and forks.
"There are things we miss about the Bay Area, culturally, but, at the same
time, I lived in Redwood City and sometimes it was a 20- minute commute and
sometimes one hour and 20 minutes," he said.
"There are people who worked for me with rents going up and they are caught
in a loop and there's nothing they can do. But now they're paying $400 a
month in Redding rather than $1,000 in the Bay Area."
Chris King Precision Components, also a maker of sophisticated bicycle
components, was synonymous with Santa Barbara for 25 years, but the tight
labor market and cost of living for blue-color workers no longer made
economic sense, said King, who now employes 60 people in Redding.
King said that in 1996, he placed an ad for an assembly worker and got 50
applications. In 1999, he placed the same ad and got one application. "The
labor market was strangling us," he said.
In Redding, he received 2,000 applications for jobs at his plant, where he
will employ about 100 this summer. "But there is a lot of chaff in this
area," he said of the labor pool. "It's a low-cost area that has
traditionally gone boom and bust, mostly bust," said King.
King said he is confident he can maintain a blue-collar workforce adequate to
the test of manufacturing what he described as the "Rolls Royce" standard in
the bicycle industry. However, he said he has concerns about his ability to
attract higher-paid designers with degrees in mechanical engineering.
"You can go skiing in 45 minutes, and the environmental part of the equation
is pretty incredible," King said of the Shasta County area. "But there's no
foreign film theater here, no culture. There's middle-class shopping, and you
need to entertain executive people or engineers or creative people. Unless
they like fishing."

PHOTO (2); Caption: (1) Dan English and Lisa Pendegrast displayed some of
their lights for rock 'n' roll concerts inside the Morpheus Lights testing
facility in Redding, (2) Chris King, who moved his bicycle component plant to
Shasta County a year ago, said he's happy he made the move after learning
that his old site in Santa Barbara was experiencing rolling blackouts. / John
Storey/The Chronicle
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Davis: Power-crisis fixes almost finished
By David Whitney
Bee Washington Bureau
(Published Feb. 28, 2001)
WASHINGTON -- California Gov. Gray Davis said Tuesday the state is two weeks
to a month away from completing all the "legislative fixes" to its
electricity crisis, and that with "a little luck and a lot of conservation"
he hopes to avoid power blackouts this summer when demand is at its peak.
"I see light at the end of the tunnel and it's not a train," Davis said
during a luncheon speech before the California State Society. "It is the
lights staying on in the state." But the governor, who spent much of his time
here at the National Governors Association's winter meeting fending off
questions about the state's power situation, left for New York City on
Tuesday afternoon without any firm endorsements from the Bush administration.
And despite his rosy recap of his administration's progress, he acknowledged
that difficult work remains before deals can be reached to revive
cash-starved utilities teetering on bankruptcy, particularly Pacific Gas and
Electric Co.
Davis said that he thought he might have an agreement soon -- perhaps by the
end of the week -- with Southern California Edison permitting it to sell
revenue bonds to repay debts to power wholesalers in exchange for state
acquisition of their electric transmission lines.
"PG&E is taking a little longer," the governor said. "Its debt is two times
as big. It's a little more complicated situation -- two, three four weeks at
the outside and we'll have PG&E worked out."
PG&E declined to comment on the governor's timetable, but spokesman John
Nelson confirmed that company officials will take part in talks with the
Governor's Office this week.
Deals to take over the utilities' power lines would put the state in the
electricity transmission business, even though it's intention is to lease the
day-to-day operations back to the utilities. But Davis said the deals would
complete "all the legislative fixes" and put the state on course toward
stabilizing supplies and price.
"Does this mean we are home free and don't have to worry about anything?" the
governor said. "No, but it means we are basically on the downside of the
problem."
Striking deals with the utilities is not the only remaining problem, however.
State purchase of the transmission lines would require approval by the
Federal Energy Regulatory Commission.
Davis was scouting for help Tuesday from Energy Secretary Spencer Abraham on
that front.
In a brief meeting with reporters, Davis described Abraham as "open" to the
transmission line purchase. Davis said he presented the secretary with a
nine-page memo on the Southern California Edison transaction, and Abraham
said he'd review it and get back to the governor by the end of the week.
"If he would endorse the plan, that would be a big leg up in terms of getting
the FERC's approval," Davis said, even though Abraham cannot simply order the
FERC to approve the deal. "I hope by the end of the week he'll be able to
endorse the proposal or at least endorse a modified proposal that is
satisfactory to us."
In his speech to the California State Society, an organization of
Californians who live and work in the Washington area, Davis said the state
is on course to add new generating plants over three years so that supply
exceeds demand.
But to make it through the summer, Californians are going to have to work
hard to reduce consumption, he said. Residences are being asked to curb usage
by 10 percent, and mechanisms are in place to squeeze similar savings from
industries and commercial buildings through mandatory curtailments and cash
incentives.
"We are practicing what we preach," Davis said.
He said his wife has turned down the thermostat in their home to 55 degrees.
"I go to bed with a heavy sweat shirt on, sweat pants, three blankets and a
comforter," Davis said. "Going to the kitchen is like going to Antarctica. My
office is so dark at night you could develop film in it."
Davis meets today with analysts on Wall Street, where he will carry forward
the same message he delivered Tuesday -- that California is on the road to
energy self-sufficiency.
"We'll have utilities back in business paying their bills," he said. "We'll
have long-term contracts for power at greatly reduced prices. We'll have a
very aggressive conservation program. And we'll have a public power authority
not unlike New York, the state of Washington and Tennessee."
Bee staff writer Carrie Peyton contributed to this report.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------------------

Published Wednesday, February 28, 2001
Davis passed up Duke Energy's deals
The supplier's offers last summer could have helped avoid blackouts this year
By Mike Taugher
TIMES STAFF WRITER
As the California energy crisis was beginning to brew last summer, one of the
state's largest electricity suppliers made Gov. Gray Davis a pair of offers
to smooth the state's energy convulsions.
Looking back, the governor may be regretting that he dismissed the proposals.
Duke Energy said it could sell enough electricity for 2 million homes for
five years at what is now considered a very low price of $50 per
megawatt-hour.
And Duke said that if the governor helped speed up permits, the company could
build enough new portable units to power an additional 500,000 homes.
Those offers embodied what has become two of the governor's top strategies in
dealing with the crisis -- stabilizing the price of electricity through
relatively long-term commitments and boosting generation to avoid blackouts
this summer.
As it was, though, Duke spokesman Tom Williams said his company never
received a response to its July 31 proposal.
In hindsight, Davis' inaction could prove costly. The governor's campaign to
enter into long-term deals for electricity has produced just a handful of
modest contracts, and there is some doubt that the governor's goal to speed
up construction of small portable power plants to power millions of homes
will be reached by summer.
"We're pleased he's got that sense of urgency," Williams said. "We displayed
that sense of urgency on July 31."
Davis spokesman Steve Maviglio said at the time the offer was made, Duke's
proposal was expensive and there was uncertainty about how the energy crisis
would take shape. In hindsight, the Duke proposal "seems like the deal of the
century today," Maviglio said. "The question is, where's that offer today?
... They're not at the table now with a reasonable offer."
Had the governor decided to help Duke get permits for the new "peaker
plants," he could already be halfway to his goal of getting 1,000 megawatts
worth of new peaker plants by this summer.
Now, however, Duke says its offers are off the table. The units the company
would have used in California are now committed to the Midwest, and Duke has
become hesitant to invest more money in a state where it has more than $400
million in uncollected power bills from the state's utilities, according to
Williams.
Moreover, Williams and others said it would be difficult for energy companies
to meet Davis' goal of 1,000 megawatts from new peaker power plants by summer
because, even under a new speedy permitting process announced by Davis three
weeks ago, it still can take months to line up equipment and get it
constructed and on line.
The dilemma for California this summer shapes up like this: various estimates
predict that the amount of electricity that will be available will fall short
of demand by 5,000 megawatts to nearly 7,000 megawatts, or enough electricity
to power 5 million to 7 million homes.
Davis has called for enough conservation to cut demand by 3,700 megawatts and
has unveiled initiatives he hopes will boost generation by 5,000 megawatts.
If successful, that would be enough to avoid rolling blackouts this summer,
according to state energy officials.
Nearly half of the new generation sought by Davis would come from peaker
plants, including 1,000 megawatts of new peaker plants that the governor
wants to attract to the state and another 1,300 megawatts from peaker plants
to be built by energy firms that have signed contracts with the California
Independent System Operator.
There is uncertainty on both counts. The Department of Water Resources, which
has stepped into the energy-buying field because of the financial collapse of
the utilities that have backed the ISO's purchasing, is attempting to
renegotiate some of the contracts energy companies entered into with the ISO.
That has alarmed some contractors.
And even if no agreements are scuttled through renegotiations with the water
resources agency, the ISO never figured on seeing all 1,300 megawatts it
signed up for to actually materialize.
"We viewed the prospect of getting all 1,300 megawatts as unlikely," said
Brian Theaker, ISO's manager of reliability contracts. "It was going to be
very difficult, if not impossible, for all 1,300 megawatts to hit the
ground."
And even with a speedier licensing process, it might be difficult to get the
other 1,000 megawatts of new peakers built in time for summer.
"If you don't have the equipment in hand, it's very difficult to get it at
this late stage of the game," Theaker said, citing conversations with
industry officials.
Still, state officials are confident that the governor's goals to boost power
production from peaker plants and through increased energy conservation will
work.
"With increased generation and the reduction in demand, we should be able to
avoid rolling blackouts this summer," said Energy Commission spokeswoman
Claudia Chandler.
Chandler said the new peaker plants, which can be transported on a flatbed
truck and can be as small as a large backyard storage shed, still could be
running by summer if applications are filed by mid-April.
But the Energy Commission has yet to receive a single application for a new
peaker power plant.
"That kind of is putting us on pins and needles," Chandler said. "We are
talking to developers, though. They indicate they will be submitting
applications late this week or next."
Meanwhile, Davis met in Washington, D.C., with Energy Secretary Spencer
Abraham to discuss California's plans to buy 26,000 miles of electricity
transmission lines now owned by three financially troubled utility companies.
Speculation has surfaced in recent days that federal regulators are opposed
to the plan and would reject it. Curtis Hebert, the chairman of the Federal
Energy Regulatory Commission, has said the state takeover of the lines would
be "against the best interests of the American public."
A spokeswoman for the regulatory commission said Tuesday the panel has not
discussed or taken a position on the California plan.
Hilary McLean, a spokeswoman for the governor, characterized Davis' meeting
with Abraham as "productive" and said the two had pledged to work together
and continue discussing the issue.
Davis is scheduled today to fly to New York, where he will meet with Wall
Street analysts, before flying back to California tonight.
Staff writer Andrew LaMar contributed to this story.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------------------

Davis fights for backing, takes state plan to D.C.

'Lots of people' in capital wary of transmission-grid takeover
By Toby Eckert?
COPLEY NEWS SERVICE
February 27, 2001
WASHINGTON -- Gov. Gray Davis, worried about possible federal opposition to
the state's plan to take control of California's power transmission system,
said he will lobby Energy Secretary Spencer Abraham on the plan in a meeting
today.
"Clearly, we have to persuade lots of people in Washington that what we're
doing is the right thing," Davis said yesterday, citing recent news reports
that indicate opposition to the plan from the head of the Federal Energy
Regulatory Commission, or FERC.
The commission appears to have authority over approving the plan.

Hydropower net needs a 'miracle'
Edison: No more money to bury power lines underground
?

After joining other governors in a wide-ranging meeting with President Bush
at the White House, Davis also said "there may be some give" on the Bush
administration's opposition to price controls on wholesale electricity if
power generators are assured a healthy profit. He did not elaborate.
A White House spokeswoman said she was unaware of any change in the
administration's stance on price controls.
FERC Chairman Curtis Hebert has declined to comment on how the commission
might rule on California's plan to acquire 26,000 miles of utility-owned
electricity transmission lines as part of a strategy for solving the state's
power crisis.
But in an interview with the Dow Jones news service last week, he indicated
the plan may run counter to FERC's policy of encouraging the development of
regional transmission organizations, or RTOs, to manage access to power
grids.
"Anything that moves in the opposite direction of RTOs .?.?. is against the
best interests of the American public," he was quoted as saying.
Davis said Hebert's comments "raised concerns in my mind. And I want
Secretary Abraham to understand the motivation for doing this is to solve the
problem, allow the utilities to get back into business, pay off the
generators and the banks, and begin to stabilize the market."
While Abraham does not have direct authority over the issue, he is part of an
energy policy team appointed by Bush. Davis sees winning Abraham's backing of
the plan as a possible key to federal approval.
"I think that team's assessment of the progress we're making will have a lot
to do with how Washington responds, including the FERC," Davis said.
Davis will also pitch his plans for ending the crisis to Wall Street analysts
tomorrow. However, he said he had no meetings planned with FERC officials.
The Democratic governor acknowledged that many California Republicans are
philosophically opposed to the state buying the transmission lines.
"Some people in Washington, I think, see this as more of an ideological
statement" by the Democrat-controlled state government, Davis said. "As a
governor, I see it as a practical solution to a problem we're trying to deal
with."
The state wants to acquire the transmission system from Pacific Gas and
Electric, Southern California Edison and San Diego Gas and Electric as a
condition for helping the utilities pay off some $13 billion in debt they
have accumulated. The debt is a product of soaring costs for wholesale power
that the utilities have been unable to fully recover from consumers under
state law.
Davis announced a tentative agreement last week to buy Edison's power lines
for $2.76 billion.
The purchase plan also will allow the state to upgrade the transmission
system and fix bottlenecks in the flow of electricity within California and
from neighboring states such as Arizona, Davis said.
He and other governors stressed the importance of improving the power grid in
a discussion yesterday with Abraham, Environmental Protection Agency
Administrator Christie Whitman and Interior Secretary Gale Norton.
"We'll need federal approval and, hopefully, federal assistance on the
financing of those improvements" in California, Davis said.
The governor has tangled with FERC on numerous aspects of the power crisis.
The commission, which has authority over the wholesale power market, has
resisted Davis' proposal to cap wholesale prices in the West. Bush and
Abraham have, too.
But Davis suggested that temporary "cost-plus" price limits -- in which
wholesale rates would reflect the cost of producing the power, plus a set
profit margin -- may still be an option.
In San Diego yesterday, House Speaker Dennis Hastert, R-Ill., emphasized that
California needed to resolve its own energy problems and rework its
deregulation plan. But Hastert held out the possibility of caps on the
wholesale price of electricity, which have bipartisan support from California
representatives and senators.
"Maybe we can do that on a short-term, focused way, but you have to go back
and fix the legislation," Hastert said in a meeting with The San Diego
Union-Tribune's editorial board.
Davis indicated that he discussed the power crisis in general terms with Bush
and would have a more detailed talk with Abraham.
Bush "invited me to call on him directly if we need more assistance," Davis
said.
?
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------------------
Duke Energy Suspends Suits Vs. Calif.

LOS ANGELES (AP) via NewsEdge Corporation  -
Duke Energy Corp. suspended a lawsuit against
the state on Monday after the California Department of Water
Resources agreed to buy power from Duke that was formerly being
provided under contracts with two financially troubled utilities.

Duke said Monday it will suspend until April 30 its lawsuit
against Gov. Gray Davis, who had commandeered Duke's long-term
energy contracts with Southern California Edison and Pacific Gas
and Electric.

Duke sued Davis after the governor announced plans to allow the
California Power Exchange to sell the contracts as a way to pay
debts owed by SoCal Edison and PG&E. The power generator argued
that Davis exceeded his authority under the state's Emergency
Services Act.

Under a settlement announced Monday, the water resources
department will buy power on behalf of residential and business
customers that was previously being delivered to Edison and PG&E.

``We see this as progress. It's a step that takes us in the
positive direction,'' said Roger Salazar, spokesman for Davis.

Bill Hall, head of Duke's California operations, said the
agreement ``gives California consumers the benefit of the long-term
contract price that was negotiated with the utilities before they
defaulted. And it allows Duke to provide electricity through an
entity that can pay us for it.''

SoCal Edison and PG&E, California's two biggest utilities, have
lost nearly $13 billion in part because the state's deregulation
plan prohibits them from passing on skyrocketing wholesale power
prices to consumers.

With SoCal Edison and PG&E near bankruptcy, the California
Department of Water Resources was authorized last month to buy
power.

Duke said the interim settlement expires April 30, when a court
hearing on Duke's suit is scheduled in U.S. District Court in Los
Angeles.

Also on Monday, Duke suspended a case it brought against the
California Independent System Operator, which manages 75 percent of
the state's power grid.

Duke and other power generators sued the ISO after the water
resources department said it would not pay for power bought on the
expensive spot market. The ISO had said it would bill the nearly
bankrupt utilities for that power.

When power generators tried to pull out of the spot market, the
ISO sued and a federal judge ordered companies to keep selling to
the state. That order was allowed to expire last week while the
state and the generators work on a settlement.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------------------
Calif. Optimistic About Power Line

By DAVID HO
Associated Press Writer
WASHINGTON (AP) via NewsEdge Corporation  -
California Gov. Gray Davis said Tuesday that
he is confident the Bush administration will support the state's
$2.7 billion proposal to ease energy woes by buying Southern
California Edison's electricity transmission system.

Supporters of the plan say it could lead to quick improvements
of a bottlenecked system overdue for repairs. But critics contend
the proposal saddles the state with an antiquated network that
could prove costly to fix.

Davis said he presented a nine-page proposal to Energy Secretary
Spencer Abraham and he expects a response by the end of the week.

Abraham ``wants this problem solved and he's been very
supportive,'' Davis said. ``He's recommended approval on every
request I've made, and I believe he will support our proposal.''

Energy Department spokesman Joe Davis said Abraham is reviewing
the proposal but wouldn't comment on whether he would endorse it.

On Friday, the governor announced a deal to purchase the power
lines and require Edison International, the utility's parent
company, to sell cheap power to the state for a decade.

Federal approval is required for the proposal, which does not
include the state's other major investor-owned utilities, Pacific
Gas & Electric and San Diego Gas and Electric.

Negotiations are continuing with all three utilities to buy
their 26,000 miles of transmission lines for a cost that could
range from $4.5 billion to $7 billion.

Edison and PG&E have said they have accumulated nearly $13
billion in losses because the state's 1996 deregulation law
prevented them from passing the true costs of wholesale energy to
their customers. The governor's plan would infuse the utilities
with part of the cash they need to remain solvent.

Some state lawmakers have said the long-term costs of the plan
outweigh the immediate benefits because the transmission lines need
repairs that could cost an estimated $1 billion a year.

Addressing a lunch for the California State Society attended by
members of the state's congressional delegation, Davis outlined his
plans to solve the power problems by building new power plants and
working with the energy industry.

``We have a real challenge this summer and the following
summer,'' he said. ``The third year I think enough generation will
be online so that we're in much better shape.''

Davis has issued executive orders to shorten the approval
process for new plants and expects to gain 5,000 megawatts by
summer _ enough to power about 5 million homes.

In addition to increasing power production, Davis emphasized the
need for greater conservation, advising his state's consumers to
turn off lights in empty rooms, unplug unused appliances and lower
thermostats.

``In my house, my wife has the thermostat down to 55 degrees,''
he said. ``Going to the kitchen in the middle of the night is like
a trip to Antarctica.''


Hi Jeffrey:

I was just thinking of e-mailing you -- happy birthday, or happy birthday 3
days late!  I can never remeber if it is the 21st or the 24th?  Which is it?

I don't know that I'm really used to being someone's mother.  I prefer to
think of myself as an older sister. :)  Michael gets really annoyed (and I
think scared) when I say that.  I'm actually in tampa right now visiting for
a couple weeks (until June 7th).  Lezzie is coming in too this weekend with
her daughter, who my father described as "the Bruiser".  Apparently, she's on
the larger side.  Not even fat, just LARGE. Ann Kelley will also be here with
her daughter.

I will call you while I am here - maybe today or tomorrow.

Not neccessary, but if you want to send something to Quinn (perhaps a piggy
bank:) you could either send it to my parents house while I'm here or to our
address in Sao Paulo.   Below are both addresses.

I hope all is good with you  -- will call for an update.  And I'm very
saddened by the passing of the Couch Potato.  I feel as though we need to
have a service of somekind.  After the Delano-style pool, will there still be
room in your yard for a small burial site?:)

Stefanie

my parents' address:
4922 Bay Way Drive
Tampa FL 33629

my address:
Rua Baltazaar da Veiga, 161
Edificio Balmoral
Apto. 161
Sao Paulo, SP 04510-000 Brasil


The only policy that I've seen is the "Interim Southern Cone Electricity
Trading Policy" dated July 29th, 1999 and which does authorize financial
electricity trading in Brazil.  I'm not aware of  policy (maybe there is
none) or resolution (maybe each will be deal specific) which addresses the
opening of brokerage accounts and equity trading (even for hedging
purposes).   I think we should monitor the activity and see if it's going to
be sporadic.  I'll be in the office today until 4 pm.  Sara

Andrea Bertone@ENRON_DEVELOPMENT
09/30/99 05:22 PM
To: Sara Shackleton/HOU/ECT@ECT
cc: Don Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: Enron Power Holdings XII Ltd. ("EPHXII")

We have a policy. I don't have it in electronic version. Maybe Don Black has
it . He applied for it. If you want I can send you a hard copy.

Sara Shackleton@ECT
09/29/99 01:08 PM
To: Robert H George/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea
Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bruce
Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marie Heard/HOU/ECT@ECT
cc:

Subject: Enron Power Holdings XII Ltd. ("EPHXII")

We are presently contacting Morgan Stanley Dean Witter to facilitate opening
of an account for EPHXII to trade ADRs.  You will need to provide a
resolution authorizing opening of the account as well as an authorized trader
list and other contacts.  We will provide you with drafts.  I am certain that
the broker will accept fax signatures and then follow up with originals.

For future reference, will this be an isolated instance (i.e., deal specific)
or will these accounts become more routine?  Just wondering if S. Cone has a
formal trading policy or if trading is still deal specific.  SS


Catch the Wave!  Join the Enron/MDA Beach Bowl!!

Help us "strike a blow" against ALS at the 3rd annual Enron/MDA Beach Bowl!
This year's event will be held on July 14th at Palace Lanes in Bellaire.
Come have a great time while raising money for ALS (Lou Gehrig's disease)
research.  It doesn't matter if you bowl a 50 or a 300, as long as you have
fun!  Call Lindsay Meade at ext. 34551 or Geriann Warner at ext. 35036 for
more information!

Make a donation to the Peru Earthquake Relief Fund!
Peru is beginning reconstruction after a powerful earthquake devastated the
southern region of the Andean highlands last Saturday. The 8.1-magnitude
earthquake, that has been recently upgraded to the "great" quake category -
the most powerful according to the U.S. Geological Survey- triggered a
tsunami that crashed into the seaport town of Camana destroying more houses
and raising the death toll. Up to now, the earthquake has left over 100
people dead, 1,374 injured and 47,696 homeless. The people who lost their
homes have been forced to sleep on the ground in Peru's frigid Andes
highlands, tents provided by the army and by some help organizations does not
provide sufficient issulation against winter temperatures in that region.
Help is urgently needed. If you would like to contribute to this cause please
send your donations to:

American Red Cross
2700 Southwest Freeway
Houston TX  77098
(In the memo line of your check please write: Earthquake-Peru, to ensure
funds are canalized correctly)

In order to get Enron to match your donations dollar for dollar please go to
http://home.enron.com/cr/ and click on Gifts, Grants and Giving.  Once there,
click the Matching Gifts link and you will be able print the Matching Gift
form.  If you have any qeustions regarding the Matching Gift program please
email comunity-relations@enron.com.

Credit Union Offers Flood Relief Loans
EFCU is offering two special Flood Relief Loans to Enron employees and their
families who have been affected by the flooding.

o Signature Loans* at a 5.00% Fixed APR, single pay plan, and $10,000
maximum.

o Auto Loans** are available at 6.49% Fixed APR on all conventional loan
terms, with a 90-Day No Payment Option.

Apply on-line, 24 hours a day at enronfcu.com, then select Anytime Loans and
the loan type.  Please type Flood Relief in the Purpose of Loan Field.  Or,
call Anytime Loans at 800.235.8763 and reference our Flood Relief Loan. For
more information, please e-mail efcu@enron.com or call our Lending Department
at x30578.

*Must be a Credit Union member to apply. Unpaid loans must pay interest due
after 6 months, and renew on monthly payments at the regular lobby rate at
time of renewal. **Term will be extended and finance charges will continue to
accrue during the 90-day period. Subject to normal underwriting requirements.
Auto Balloon Notes and current loans are excluded from this offer. No other
discounts apply. EFCU is an Equal Housing Lender & NCUA Insured. Loans will
mature on March 1, 2002. Offers end July 15, 2001.

Beginner Ballroom Dance Lessons Sponsored by the US Amateur Ballroom Dancers
Beginner Ballroom Dance Lessons, opened to the public and taught by qualified
instructors, sponsored by the United States Amateur Ballroom Dancers
Association (a non-profit organization), in cooperation with the City of
Houston Parks & Recreation Department.  Classes start on Tuesday, July 3rd
from 6:00 - 7:30 pm at the River Oaks Community Center, 3600 Locke Lane
(between Weslayan & Buffalo Speedway on Latchmont, one block north of
Westheimer).

$38.00 for a monthly session (registration first day of class)
$30.00 for seniors over 60, and students under 23

Dances will include: Waltz, Foxtrot, Cha-cha, Rumba, Swing and Tango.  For
further information, call x51529

Southeast Texas AFS - Seeking Host Families for High School Students!
Southeast Texas AFS is seeking host families for high school age students for
the 2001-2002 school year.
Here are brief biographies of 4 students scheduled to arrive in August, 2001
who still need families:
http://home.enron.com:84/messaging/jensdenmark.doc

http://home.enron.com:84/messaging/philippaustria.doc

http://home.enron.com:84/messaging/miadenmark.doc

http://home.enron.com:84/messaging/melissacanada.doc

Interested? Call Carol Marshall 3-4291 for more information.
AFS is an international, voluntary, nongovernmental, non-profit organization
that provides intercultural learning opportunities to help people develop the
knowledge, skills and understanding needed to create a more just and peaceful
world. AFS offers exchanges for students, young adults and teachers in over
50 countries around the world.
AFS <http://afsweb.afs.org/homepage.nsf?open>

Enron Kids Volunteers Needed
The Enron Kids Committee is looking for additional volunteers to help plan
for another successful Enron Kids year.  We are in the early planning phase
for our holiday event.  This year's school is Gordon Elementary in the
Bellaire area.  Ninety-eight percent of Gordon's student population qualifies
for free or reduced lunch.

To join the planning committee, please contact Lillian Villarreal, via email
or phone (xt. 37092), to be added to our distribution list.  Meetings are
once a month, until we get closer to the December event, when we will meet at
least twice a month.  The Enron Kids program has consistently been among the
top employee participation programs.  We look forward to you supporting the
children of Gordon Elementary through the Enron Kids program of 2001.

ENRON WELLNESS BLOOD DRIVE
Two M. D. Anderson Blood Center mobile coaches will be parked on Andrews
Street on Thursday, July 12, from 7 a.m. until 4 p.m. for the Enron Wellness
Department's 3rd quarter blood drive.  If you were unable to make the special
blood drive held June 14, here's your chance to donate.   Call the Enron
Health Center at ext. 3-6100 or mailto:health.center@enron.com to schedule an
appointment.  Let's continue the spirit of giving!

FLOOD RELIEF BLOOD DRIVE RESULTS
A total of 79 units of blood were donated during the special blood drive held
June 14 in the aftermath of Tropical Storm Allison.  Thanks to all the Enron
employees and contractors you who gave!

Have News to Share?
To post news or events in Enron In Action, please e-mail your information to
EIA@enron.com
no later than 12:00 noon the Thursday prior to the next Monday,s mailing.


what are the force majeure terms in the ECT GTC?

Hunter


NYMEX Membership Services
February 22, 2001
Notice # MS-012

SWITCH OF LESSOR

Please be advised that effective with the close of business, February 22,
2001, the following member(s) will switch their lessor within the Exchange:

Karl Kovarik (KK-7270)

NOTICE OF INTENTION TO LEASE ORIGINAL MEMBERSHIP

Please be advised that effective with the close of business, February 22,
2001, the following member(s) have given notice of intention to lease their
sole membership privileges:

Alan Kleinstein (NALA-4276)

Mercerdees L. Murrell

 Members and Member Firms have (10) days from the date of this notice to
advise the Corporate Secretary,s Office of any claims in accordance with Rule
2.51.

 Inquiries regarding the above should be addressed to the Member Services
Department (212) 299-2379.

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

"http://208.206.41.61/email/email_log.cfm?useremail=tana.jones@enron.com&refdo
c=(MS-12)"

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.


Attached is PIRA's latest "Electricity Daily Demand Forecast."

If you have any questions regarding the report's content, please contact
Morris Greenberg (email: morris@pira.com) or Victoria Watkins (email:
vwatkins@pira.com), at (212) 686-6808.

Contact John Graziano regarding PIRA report distribution and address changes
at (212) 686-6808, email: support@pira.com.

NOTE: Circulation of the "Electricity Daily Demand Forecast" outside a
Client's licensed distribution area is strictly prohibited. Clients that are
unsure of their licensed distribution or require an extension of their
current license should contact their PIRA sales representative, or email to
sales@pira.com.

PIRA Energy Group

 - ed043001.pdf
 - ed043001.xls


Pelt,

Howdy from Houston.  I hope you had a great Thanksgiving.  I took the week
off and it was what i needed.  I have been working at a hectic pace and was
on my annual sick rotation, although a little earlier than normal.  I needed
the break.  My international traveling is over for the year, thank God.

Chris and i were talking about life and vacations and spring break came up.
I thought i would send you our information and see if our breaks co-ordinated
and to see if we still wanted to try and get together to go skiing.  We
didn't know if you made other plans or moved on since our last discussion a
while ago.  Our spring break is March 12-16th .

Please let give an update via email when you get a chance.  I figured that
you are in Telluride right now on holiday.

Give my love to all.

Mike

PS - How about those Sooners!  OU/TX wasn't a fluke. Hard to believe, we'll
see what will happen with K State and bowls.  No matter, its been a fun
year.  It is nice to be back.


http://www.har.com/search/condo/indexdetail.cfm?mlnum=536712

http://www.har.com/search/condo/indexdetail.cfm?mlnum=526724

http://www.har.com/search/condo/indexdetail.cfm?mlnum=389305
this is the one that my friend at work recommended


I'm continuing to work with IT in Houston in an attempt to restore the EOL
Report to its former glory. They are making several changes to the report
which seem to result exponentially in glitches. As of right now the
application will not create any kind of file with any kind of data; hence the
absence of any kind of report. I will keep you informed of our progress.

Thanks for your patience,
Kate