Notice No. 01-45
February 01, 2001

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

FROM:    Neal Wolkoff
Executive Vice President

SUBJECT: REVISED PALLADIUM FUTURES MARGIN RATE CHANGE FOR FEBRUARY 2, 9, and
16, 2001, TO AFFECT ALL MONTHS

The following changes are applicable to all palladium futures contract
months.  This notice supercedes the January 30, 2001 notice that previously
cited increases for the February and March 2001 futures contracts only.

MARGIN RATE CHANGE  FOR FEBRUARY 2, 2001
Effective Date:     Friday, February 2, 2001  (close of business)
Futures Contract:   Palladium Futures
Contract Months:    All Months

NYMEX Division Margins on Palladium Futures Contracts
Clearing Member (Maintenance Margin):           Old:  $15,000   New:  $30,000
Member Customer (Initial Margin):               Old:  $16,500   New:  $33,000
Non-Member Customer (Initial Margin):           Old:  $20,250   New:  $40,500

MARGIN RATE CHANGE  FOR FEBRUARY 9, 2001
Effective Date:     Friday, February 9, 2001  (close of business)
Futures Contract:   Palladium Futures
Contract Months:    All Months

NYMEX Division Margins on Palladium Futures Contracts
Clearing Member (Maintenance Margin):           Old:  $30,000   New:  $40,000
Member Customer (Initial Margin):               Old:  $33,000   New:  $44,000
Non-Member Customer (Initial Margin):           Old:  $40,500   New:  $54,000

MARGIN RATE CHANGE  FOR FEBRUARY 16, 2001
Effective Date:     Friday, February 16, 2001  (close of business)
Futures Contract:   Palladium Futures
Contract Months:    All Months

NYMEX Division Margins on Palladium Futures Contracts
Clearing Member (Maintenance Margin):           Old:  $40,000   New:  $50,000
Member Customer (Initial Margin):               Old:  $44,000   New:  $55,000
Non-Member Customer (Initial Margin):           Old:  $54,000   New:  $67,500

Should you have any questions regarding these changes, please contact Arthur
McCoy at (212) 299-2928 or Joe Sanguedolce at (212) 299-2855.  This notice
supersedes all previous notices regarding outright margins for the NYMEX
Palladium Futures Contract.

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

"http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com&
refdoc=(01-45)"

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.


Just following up from our conversation last week.  We continue to do a large
amount of transactions with this counterparty which are being confirmed
through our long form agreements without credit terms.  To the extent that
you decide not to forward the ISDA at this time, please let me know so that I
can make a determination whether or not we need to reduce trade in order to
control Enron's credit exposure.  Please let me know the status.

Thanks,
Ed Sacks


From the attached, it looks like the URG decision is being accelerated.


Elena,

Please, review the energy related info in this database (if any) and talk to
me
about it.

I would like to do some research in this area and ask you to write a summary
report.
Nothing urgent.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 10/12/2000
03:52 PM ---------------------------

Andrei Osonenko <andrei@swapsmonitor.com> on 10/11/2000 04:26:38 PM
To: (Recipient list suppressed)
cc:
Subject: Swaps Monitor Research.

We have today published information about the OTC derivative activities of
the largest Dutch dealers. This research is contained in the attached pdf
file.

Through our web site, SwapsMonitor.com, you can obtain additional information
about OTC derivatives dealers, including rankings and a database of
outstandings going back to 1994.

As an e-mail subscriber to our research, you will automatically receive all
free research at the same time it is placed on our web site. If you wish to
remove your name from the e-mailing list, please use the Reply feature of
your e-mail application and type the word "Remove" in the subject line.

Regards,

 - dutch_dealers.pdf
Andrei Osonenko
Research Department


I'm not particularly wild about many of the changes proposed by GE.  Seems
that it would be a good idea to get a consensus on how to respond.  Here are
the issues I see:

Indemnity issues:
They should indemnify us from claims by their employees/subcontractors.
Indemnity should be triggered by strict liability as well as negligence.
What is a cognizant government?

Limit of liability issues:
They want to limit their indemnity obligation to 100% of purchase price.
They want the limit of liability to apply to gross negligence, if possible.
They don't want to clarify that they have to indemnify us for another party's
claim for consequentials (as in a personal injury claim).

We've don't have anything concrete on assignment yet.

Comments?

Sheila has asked that we change Wednesday's call to 1100 Central, or 100
Central if 1100 doesn't work.  Is this a problem?

Kay

They should have to
---------------------- Forwarded by Kay Mann/Corp/Enron on 09/11/2000 04:07
PM ---------------------------

michael.barnas@ps.ge.com on 09/07/2000 07:46:07 PM
To: stephen.swift@ps.ge.com, Sheila.Tweed.@enron.com,
Roseann.Engeldorf@enron.com, Kay.Mann@enron.com, Scott.Dieball@enron.com,
Martin.W.Penkwitz@enron.com
cc: kent.shoemaker@ae.ge.com

Subject: GE Language

Folks,

Having conferred at last with my colleagues, I can now forward to you our
draft language for the Indemnity and LOL clauses.  As Steve mentioned in his
earlier message, he has suggested some issues to discuss which could bring
us closer to resolution on that issue.  Please let me know if you have any
question!

Best regards,

 Mike
g _____________
Michael C. Barnas
Counsel, Power Plants Commercial Operations
GE Power Systems
One River Road - Building 37, Room 307
Schenectady,  NY 12345  USA
Phone 8*235-7602       (518) 385 7602
Fax     8*235 5466        (518) 385 5466
Mobile 518 369 9538

 - MajorClausesGE01.doc


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Stan,
It seems that the gas pipeline industry and the liquid  industry may
not agree on an approach to the pipeline safety reauthorization bill and a
rule
making that is being issued concerning pipeline integrity testing. We admit
that
the liquid industry is "under the gun" to some degree due to the tragic
incident
at Bellingham last year, and that there is some spillover to the gas side as a
result. However, we think that it is in our interest and the time is right for
us to get something done in this Congress and that we need to "be for
something"
that is workable and will also pass.  So we're not for a bill at all costs,
but
we are willing to work with Rich Felder and the others at OPS to get to
something we can live with. The integrity rule making will only apply to
liquids
in the first phase and we think we should not oppose this attempt.
We have heard that INGAA may try to kill the reauthorization bill; I don't
know
if that's true or not, but AOPL is urging them not to panic and see what can
be
worked out. I'll give you a call later next week to tell you exactly where we
are after I talk to Ben Cooper, Executive Director of AOPL in Washington.


Dear Sally,

Please call me if you would like me to walk you through this.

Thanks

Shona


We have parking with PNM for off-peak on Monday.  The energy schedule is as
follows.  The energy is at 4C but you should be able to move it to PV with
PNM if you ask nicely.  We will split the upside over $35 with ST SW via
annuity.  Please make all transmission purchases or other sales under their
book.

Deal number on the buy from PNM is #581199.

The shape of this length is:

HE1 50
HE2 50
HE3 50
HE4 50
HE5 45
HE6 20
HE23 35
HE24 50

Day total is 350.

Thanks
Bill


Start Date: 1/26/02; HourAhead hour: 20;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002012620.txt


When you are done with the script please call Casey and John.

Thanks,
Stacey


apb said this was a void.  thanks

---------------------- Forwarded by Kerri Thompson/Corp/Enron on 04/25/2001
04:45 PM ---------------------------

Kerri Thompson
04/25/2001 04:40 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: apb checkout

missing deal

selling morgan stanley
127.00
25 mw
sp15
26th
off peak
chris


Please put details of this meeting on my calendar.  Thanks.
---------------------- Forwarded by Sally Beck/HOU/ECT on 01/12/2001 09:31 PM
---------------------------

	Enron North America Corp.

	From:  Sally Beck                           01/12/2001 09:30 PM

To: Bob M Hall/NA/Enron@Enron, Leslie Reeves/HOU/ECT@ECT
cc:
Subject: Exposures Meeting

Please put this on your calendars - I would like for both of you to attend.
Should Jeff and Stacey be there, too?  This will be a meeting that we should
have regularly with Wes and team so that can jointly review any exposures and
make timely decisions on how to handle those.  I am sure that there is some
prep work that needs to be done for this meeting.  I would assume that we
should cover A/R, UA4, imbalances, weird or over/undervalued deals in risk
books, OA, etc.  Can you work with Greg and Georgeanne ahead of time on
content and have necessary back up to discuss highlights.  I would love for
us take charge and lead this meeting.  --Sally
---------------------- Forwarded by Sally Beck/HOU/ECT on 01/12/2001 09:26 PM
---------------------------

Shirley Tijerina@ENRON
01/12/2001 02:05 PM
To: Wes Colwell/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Georgeanne
Hodges/HOU/ECT@ECT, Faith Killen/HOU/ECT@ECT, Greg Whiting/Corp/Enron@ENRON
cc: Renee Ingram/HOU/ECT@ECT
Subject: Exposures Meeting

The above meeting has been scheduled for Tuesday, January 23 from 2:30pm -
3:30pm in EB3321.

If you have any questions, please call me at X58113.

Thanks.


I just talke with Joe Green in the tax department and made him aware of the GST that we collected.  I am not seeing this deal in Unify yet and that needs to happen so that GST will hit the GL.  However, our tax department now knows we collected that tax and that it needs to be remitted to Canada.

 -----Original Message-----
From: 	Germany, Chris
Sent:	Friday, April 26, 2002 8:53 AM
To:	Polsky, Phil
Cc:	Hamic, Priscilla
Subject:	RE: MidAmerican Pmt Rec'd

Priscilla won't talk to me but this is what I think she billed Mid American

310,000 dth x $2.47 per dth = $765,700.00

Goods and Services Tax  $765,700.00 x 7% = $53,599.00

Total Bill = $765,700.00 + $53,599.00 = $819,299.00

Priscilla, do we know who at Enron will pay the Goods and Services Tax?

 -----Original Message-----
From: 	Polsky, Phil
Sent:	Friday, April 26, 2002 8:29 AM
To:	Germany, Chris; Concannon, Ruth
Subject:	MidAmerican Pmt Rec'd

We received this yesterday.  Is it the correct amount?

 -----Original Message-----
From: 	Cash, Larry
Sent:	Friday, April 26, 2002 7:59 AM
To:	Alon, Heather
Cc:	Miroballi, Angelo; Shoup, Cynthia; Dicarlo, Louis; Polsky, Phil; Dhont, Margaret
Subject:	additional funds received 4/25/02

Company 0364 Gas Physical

Mid American Energy				SAP#3000013942		819,299.00

Thaks

Larry


A funny story:
Because Access was up 75 cents last night, Nymex made a trading limit of
unchanged to +150.  After 20 minutes of trading, we were at unchanged and the
exchange stopped trading for an hour.
Rappaport, the exchange president, was standing by to make sure everything
was orderly.  Obviously, the locals weren't too happy about the exchange
closing.  One yelled at Rappaport...
"Why don't you take your million dollar bonus and go buy Enron stock"


-----Original Message-----
From: 	Migden, Janine
Sent:	Sunday, October 14, 2001 4:27 PM
To:	Shapiro, Richard; Steffes, James D.
Subject:	FW:

fyi...I will keep you posted.

 -----Original Message-----
From: 	Merola, Jeff
Sent:	Friday, October 12, 2001 3:21 PM
To:	Herndon, Rogers
Cc:	Migden, Janine
Subject:	RE:

Rogers,

Based on present rules, the biggest challenges include our ability to maintain firm transmission service with the requirement to designate resources and the fact that imbalance prices are set by CG&E.  After we meet with MISO next week and CG&E the following Tuesday, we should have a much better handle on how life will look under MISO and be in a better position to determine if a special negotiation with Cinergy would be beneficial.

I will advise further after this,
Jeff

From:	Rogers Herndon/ENRON@enronXgate on 10/12/2001 02:26 PM
To:	Janine Migden/ENRON@enronXgate, Jeff Merola/HOU/EES@EES
cc:
Subject:	RE:

Jeff - what are the big obstacles we face in Cinergy - generation designation, imbalances?  We are going into their market so maybe we should try to get something out of them if their economic interests by chance are alligned at this moment.

Let's discuss.
RH

 -----Original Message-----
From: 	Migden, Janine
Sent:	Friday, October 12, 2001 2:21 PM
To:	Herndon, Rogers; Merola, Jeff
Subject:

Rogers and Jeff;

In a discussion today with one of Cinergy's attorneys, I received confirmation that they are interested in ending the market development period early, if they think it is in their economic interests to do so.  This would require them to have 20% of their customers in any of their given customer classes switched to a competitive supplier.  At this point on the commercial side they are at 6%.  The attorney indicated Cinergy's belief (when last he checked) that electric prices would decrease during the first two years of the transition period (01 - 02) and then rise the last three years.  The higher the prices rise, the more willing Cinergy is to unload its customer base and continue to collect regulatory assets.  Of concern to Cinergy also is the ability to find a home for all their generation once their customers start to leave.

Cinergy appears interested in talking should Enron or any marketer want to do so.  I know we have broached this question in the past and thought I would put it before you in the event you think there might be an opportunity to negotiate an arrangement whereby we can leverage a deal that improves our physical delivery capability.  If the time is not right at this moment, this is something to keep in mind for a later date.

Janine


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Attend the Power Marketing Association?s annual spring meeting:

          POWER MARKETS 2001: CRISIS AND OPPORTUNITY

                March 14-16, 2001 Las Vegas

http://www.pmaconference.com/0103Agenda.pdf

EVERY CRISIS HOLDS OPPORTUNITIES:

Power shortages boost merchant power, distributed generation, peak shaving,
real-time pricing and energy management. Some states are delaying their
retail choice programs, but others are moving ahead, confident that they have
benefited from the lessons learned by the pioneering jurisdictions. Electric
price volatility drives growth in the risk management business.

Credit and cash flow are squeezed, but financial products provide solutions.
Gas price volatility is a reminder-- coal was and remains the great source of
energy for our country. Dot-coms seem to have been exposed as just ordinary
businesses-- but online trading in energy is the single most robust area for
transactions on the net. The IPO market hasn?t been kind to technology
stocks-- but it likes energy issues. Broadband trading has been slow to take
off, but powerline telecom may solve the real problem-- access to "the last
mile".

Please join us at the Power Marketing Association?s annual spring meeting,
"POWER MARKETS 2001: CRISIS AND OPPORTUNITY" March 14-16, 2001 Las Vegas, for
presentations on these topics and more!

Warmest Regards,
Glenn Lovin
Executive Director

http://www.pmaconference.com/0103Agenda.pdf

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

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--------------------T O P S T O R I E S--------------------

Top Stories (January 30)

BUSH TO CONVENE NATIONAL ENERGY LEADERS TO DISCUSS CALIFORNIA POWER CRISIS
While state legislators continue to hammer out a solution to California's
power crisis, President Bush will convene top advisers today to discuss the
issue.
http://199.97.97.163/IMDS%PMAKRT0%read%/home/content/users/imds/feeds/knightri
dder/2001/01/30/krtbn/0000-0538-SJ-ENERGY-LEADERS

CALIFORNIA EXHAUSTED $400M FUNDS SUNDAY ON POWER
The California Department of Water Resources has used up $400 million in
emergency funds to buy power on behalf of two of the state's largest
utilities, a spokesman for the DWR said late Monday.
http://199.97.97.79/IMDS%PMADJN0%read%/home/content/users/imds/feeds/djn/2001/
01/30/eng-djn/eng-djn_112107_192_6071195025

RATES AT PORTLAND, OREGON-BASED POWER ADMINISTRATION COULD GO UP 95 PERCENT
The Bonneville Power Administration could nearly double the price it charges
utilities and industries for electricity beginning this fall.
http://199.97.97.163/IMDS%PMAKRT0%read%/home/content/users/imds/feeds/knightri
dder/2001/01/30/krtbn/0000-0614-TC-POWER

VIRGINIA LEGISLATURE MODIFIES ELECTRICITY DEREGULATION PLAN
The state Senate voted 32-6 yesterday to amend Virginia's plan to deregulate
electricity.
http://199.97.97.163/IMDS%PMAKRT0%read%/home/content/users/imds/feeds/knightri
dder/2001/01/30/krtbn/0000-0509-RV-ELECTRICITY

DYNEGY COMPLETES ACQUISITION OF NORTHEAST GENERATION ASSETS
Dynegy Inc. today announced the completion of the previously announced
acquisition of 1,700 megawatts (MW) of power generation facilities in the
Northeast.
http://199.97.97.163/IMDS%PMANAT0%read%/home/content/users/imds/feeds/comtex/2
001/01/30/pr/0000-1604-tx-dynegy-acquisition

----------------------------------------------------------------------
DOW JONES NEWSWIRES
----------------------------------------------------------------------
Access stories online at:
http://199.97.97.79/IMDS|PMADJN0,PMADJN1,PMADJN2,PMADJN3,PMADJN4|index

CORRECT: $20M Not $40M Of Edison CP In Orange County Pool

EDP May Give Ground In Portugal For Cantabrico Go-Ahead

Toronto Hydro Union Negotiations Near Deadline

PRESS RELEASE: CalPX Not Prime Rtg Withdrawn: Moody's

Enron/Canada Paper Mill Ops -2: Complements NJ Mill >ENE

Calif Power Exch Not Prime Issuer Rtg Withdrawn: Moody's

Montana Power Co Earnings -2: 4Q, Yr Fincl Table >MTP

Enron Corp To Buy Canadian Paper Mill Ops >ENE

California Exhausted $400M Funds Sunday On Power

Montana Power Co. 4Q Net $1.17/Share Vs 56c >MTP

RWE/Cantabrico -3: RWE Would Need To Improve Price By 5%

RWE/Cantabrico -2: Follows Mkt Rumors Of EUR27 Bid >E.HIC

RWE Continues To Study Takeover Bid For Cantabrico >E.HIC

SoCal Ed/Audit -2: Most Profits Have Been Distributed

SoCal Ed Saw High Profits In Dereg's Early Days - Audit

Otter Tail Power Earnings -2: 4Q, Year Fincl Table >OTTR

California Exhausts $400M Sunday On Power

Storms In US Bring Icy Roads, Closed Schools, Deep Snow

US Court Refuses PG&E's Emergency Request To Raise Rates

Mexican Utility To Sell 50MW/day To Calif Until Feb 14

SDG&E Says Util Should Be Part Of Calif Pwr Contracts>SRE

FREE TRIAL: For a free trial of the Dow Jones Energy Service go to
www.dowjonesnews.com, and click "create account," or call
1-800-223-2274.

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N A T I O N A L
----------------------------------------------------------------------
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Natural Gas Prices High

Water Agencies Pitch in to Combat Energy Crisis; Assistance in Purchasing
Alternative Power Sources Announced

Top Energy Summaries - Tuesday, January 30, 2001 - 5:04 PM

N.B. Outlines Plans for Energy Competition But Says It's Not Deregulation

Energy Prices Snapshot

Dynegy Completes Acquisition of Northeast Generation Assets

--USPS SEEKS GAS SUPPLIERS

Apx Offers California Power Trading Solution; Private Sector Exchange -- Free
of Public Funding -- for Troubled Electricity Market

Daybreak Energy Corporation Announces Plan to Tie-In

Gas Users Struggling Thousands Tap Energy Assistance Program

Pike County Residents Split Over Plan to Build Mammoth Power Plant

Deregulation Push for N.C. Power on Hold; Bill Ideas to Come After Session

Power Trust to Start Funding Process

El Paso Energy Corporation Completes Post-Merger Restructuring

Repeats: Energy Volume And Open Interest Totals-Jan 30

Running Out of Power

Top Energy Summaries - Tuesday, January 30, 2001 - 2:13 PM

Governor Expands Energy-Assistance Program

Merced Electric Company Seeks Hike

Ocean Energy Presenting at CS First Boston Conference

Cilco-Sought Changes Could Mean Higher Profits, Higher Rates -- Utility Says
Mine Charges Twice the Spot Market Rate

Energy Update/Los Angeles Department of Water And Power Daily Energy Update,
Tuesday, Jan. 30, 2001

Lehman Initiates Proton Energy at Strong Buy, $17 Target (Prtn)

People in Business ; Reinholds Man Gets GPU Energy Post

Ago Investigating Energy Pricing Allegations

DTE Energy to Sponsor VIP Reception And Awards Ceremony

Trc Affiliate Awarded DOD Energy Savings Contract

Wind Power Takes on New Vitality

Progress Made in Miniaturizing Fuel-Cell Power Sources

Eloy May Get Power Station to Be Fueled by Natural Gas

Top Energy Summaries - Tuesday, January 30, 2001 - 12:22 PM

Davis' Energy Plan Gets Mixed Response

Altra Reports Record-Breaking YearDespite Increased Competition, Leading
Independent Energy Market Experienced Steady Growth in 2000

Deregulation And the Current Power Utility Crisis

Case Is Made for Wind And Cow Manure

Electric Rates Go Up Again

Transmission Capacity a Major Cause of California Blackouts According to
Energy Info Source

Indeck Disputes Need for Township's Ok Plans for Niles Power Plant Keep
Charging Ahead

Cbi's 4th Annual Managing Taxation; Structures And Negotiations for A
Competitive Energy Marketplace - Unbundling, Divestitures, Mergers And
Acquisitions

Calif. Runs Out of Emergency Power Funding

Top Energy Summaries - Tuesday, January 30, 2001 - 9:08 Am

Empire Energy to Begin Selling Tennessee Gas Reserves

Teton to Participate in Torch Energy Conference in New York City And Rapport
Capital Luncheon in Toronto

Tradewell Systems, Inc. Chooses Storageprovider for Managed Storage Services;
Performance And Reliability Key to Energy Industry Integration Infrastructure

Peco Energy Selects Planalytics' Weathernomics Gas Buyer to Lower Natural Gas
Acquisition Costs

Commissioner of Public Utility Commission of Texas to Keynote Ercot 2001
Conference

Power Company Begins Layoffs

Top Energy Summaries - Tuesday, January 30, 2001 - 7:21 Am

Oakland to Scrimp on Energy Use / Mayor Vows to Cut Consumption by 10%, Seek
$3 Million Loan for Retrofit

Alternative Energy Sources to Take Center Stage at Spokane Conference

Bpa Boss Sees Steep Rate Hike for Electricity During the Next Five Years,
Wholesale Power Rates Could Rise 60 Percent, He Says

Us: Government to Buy Power to Rescue Bankrupt Power Utilities

'Empathetic' Lombard Trustees Might Lower Their Natural Gas Tax

Bush Emphasizes National Increase of Energy Supply

Calif. Cities Luring Cos. with Power

Calif. Power Woes Spark N.E. Debate

President Bush fears power shortages could spread beyond California

Analysts Hail Bond Plan to Ease California Power Woes

----------------------------------------------------------------------
I N T E R N A T I O N A L
----------------------------------------------------------------------
Access stories online at: http://www.powermarketers.com/pma-intr.htm

Sumitomo Gives Up Wind Power Project in Iwate

GE Power Systems Supplies Gas Turbine for New Plant Developed by Pluspetrol
of Argentina

UK Government: New Measures Update Energy Labelling Requirements

The Electric System Connects Wtih Chile

RWE to join battle for Spanish power utility Hidrocantabrico: report

European Power Companies to Set Up Net Marketplace

Adb Technical - China, Wind Power

Vietnam Province May Build Gas-Electric-Fertiliser Complex

Power Troubles Snowball in Russia

East China Sea to Supply China's Growing Natural Gas Demand

Coal Sector Plans Major Mine Merger, Eventual IPO

----------------------------------------------------------------------
KRT DAILY ENERGY NEWS
----------------------------------------------------------------------
Access stories online at http://www.powermarketers.com/pma-krt.htm

Waste Authority Wants to Sell Portsmouth, VA., Power Plant

Tulsa, Okla.-Based Energy Firm to Study Strategic Alternatives

Tennessee Valley Authority, Enron Settle Power Dispute

Ratepayers at Small Tacoma, Wash.-Area Utilities Can Expect Large Increases

Rates at Portland, Ore.-Based Power Administration Could Go Up 95 Percent

Washington Governor Declares Energy Alert; State Agencies Must Cut Use

Sandpoint, Idaho, Residents Hear of Utility's Proposed Rate Increases

Plan to Revamp Steam Plant Generates Excitement at Washington State University

Spokane, Wash., Officials Urge Power-Plagued California Firms to Move North

Washington Governor Proposes Tax Breaks to Encourage New Power Generation

Spokane, Wash.-Area Stores Cut Lights, Hours to Save Power

Minnesota Utility Ratepayers Feel Squeeze of Higher Energy Rates

ST. Louis Post-Dispatch David Nicklaus Column

California Utilities' Blue Collar Workers Assaulted by Bitter Customers

Bush to Convene National Energy Leaders to Discuss California Power Crisis

California Investigates Amount of Debt Owed by Utility Companies

Needy Utilities Put Pacific Northwest's Federal Power System in A Crunch

Washington Governor Declares `Energy-Supply Alert'

Virginia Legislature Modifies Electricity Deregulation Plan

Oregon Legislator Hatches Plan to Overtake Federally-Owned Power Authority

Oregon Congressman Enters Bill to Stem Tide of Energy Deregulation

City of Philadelphia May Consider Sales of Utility Company

Danish Wind-Turbine Maker Could Generate 600 Jobs in Pueblo, Colo.

Cairo, KY., Utility's High Rates May Upset Mounds, Ill., Cat Litter Plant

Texas-Based Parent Firm of Kentucky Utility Adds More Services Representatives

California Bill to Reduce Utilities' Debts Gains Momentum

California Power Crisis Might Boost Water Bills

California's Deregulation Causes Interruption in Power, Business

Kansas City, Mo., Hurt by Struggles of California Utility Companies

The Kansas City Star, Mo., Chris Lester Column

Gas Costs Burn Hole in Budgets of Texas Universities

Houston-Based Reliant Energy Reports Flat Profit for Fourth Quarter

Texas Energy Companies Finalize Merger

The Record, Hackensack, N.J., Your Money's Worth Column

Lebanon, Pa.-Area Power Plant Nears Completion

Electricity Sales Boost Allentown, Pa.-Based Utility Company Earnings

The Boston Globe David Warsh Column

Florida Power & Light Shuts a Reactor at Turkey Point Nuclear Plant

San Diego County, Calif., Supervisors Push for Ability to Buy Power

Escondido, Calif.-Area Property Owners Say Power-Plant Planners Ignore Them

California's Big Businesses Lobby Against Targeted Power-Rate Increases

San Diego Electric Utility Requests 35 Percent Rate Hike

Denver Power Customers Urged to Conserve for Sake of Californians

Head of German Utility Company Announces Resignation

South Carolina Utility Delays Reopening of Power Plant in Fairfield County

Cedar Rapids, Iowa, Seminar to Offer Churches Energy Conservation Tips

Duke Energy's Chief Speaks Up to Deny Profiteering in California

California's Electricity Rates Confusing to Consumers

Boston-Based Firm to Build Electric Generating Plant Near Deweyville, Texas

Texas Panhandle-Area Water Group Seeks Funds to Gather, Refine Data

----------------------------------------------------------------------
REUTERS
----------------------------------------------------------------------
Access stories online at: http://207.32.82.57/news/ElectricPower.html

SCE&G delays 1,000-MW Summer S.C. nuke restart to March

Blizzard strikes parts of South Dakota, Minnesota

UPDATE 2-Enron's Indian unit acts to recover unpaid bills

US Senate panel tackles Calif power crisis on Wed

Canada spot natgas keeps falling on warm weather

NiSource fourth-quarter earnings more than double

EDP vows financial muscle for Cantabrico

Finland backs faster EU finance, energy laws-PM

Progress Energy earnings are better than expected

UtiliCorp's Aquila sets IPO at 16.5 mln shares

Southern U.S. faces new drought threat after La Nina demise

TransCanada trading gas with PG&E amid California woes

Exelon earnings top expectations

RPT-CORRECTED-Rappaport to step down as NYMEX chairman in March

New York sets summer plan to ensure adequate power supply

UPDATE 1-Conectiv posts better-than-expected profit gain

ADVISORY-EXELON

UPDATE 1-TransCanada boosts profits, ups dividend

Inside track-Ofwat Welsh ruling tests UK waters

Nuclear waste shipment to arrive in Japan on Feb 20

Moody's withdraws CalPX 'Not Prime' S-T issuer rtg

New Issue-UtiliCorp United sells $250 mln 10-yr notes

Japan energy venture to build two power plants

Electric deregulation flops in Calif, helps elsewhere

WRAPUP 1-Bad news mounts in Calif. energy crisis

Daishowa sells Canadian unit to Enron

AES big loser in soft utility group

Fitch may change Utilicorp United rating

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Attached find Ron's outline of comments on the FERC's November 1 order in the
Section 206 proceeding.  They are primarily legal arguments.

Concerning his comments about the congestion management redesign - I'm not
sure that we want to oppose LMP.  I think instead we want to ensure that
there are not a large number of nodes.

Alan will be writing the technical comments on the $150 caps, not Seabron.
Sue called me this morning and said IEP will not be contesting the $150 price
cap.  This is too bad because we had hoped they would carry the ball on
arguing why $150 is not sufficient to incent peaking generation.  Sue is
working on IEP to try to get them to reconsider.

I think we also need to make sure we make all of the arguments that relate to
the CPUC's subpoena.  I have asked Lysa Akin to set up a conference call
about this ASAP with Richard, Dan, Gary Fergus, Me, Mike Day, Sue, and Jim.
Please tell Lysa if I haven't listed you and you wish to be on this call.
---------------------- Forwarded by Mary Hain/HOU/ECT on 11/06/2000 09:27 AM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Ronald Carroll" <rcarroll@bracepatt.com>
11/03/2000 02:58 PM

To: <mary.hain@enron.com>, <smara@enron.com>
cc: "Jeffrey Watkiss" <dwatkiss@bracepatt.com>
Subject: Comments to November 1 Order

I have enclosed my thoughts on which issues to address in our comments.

 - 0133539.01


Just wanted to say congratulations on the close.  I hope you had a good trip
back to Cincy.  Again, I think that both companies are getting a very good
deal, with you guys getting excellent assets at a very good price.  Hope to
talk to you soon and I look forward to seeing the press release.
Regards,
Ben


----- Forwarded by Richard B Sanders/HOU/ECT on 12/29/2000 08:19 AM -----

	Robert Walker
	11/30/2000 08:13 AM

		 To: Richard B Sanders/HOU/ECT@ECT
		 cc:
		 Subject: D&P/Lynx Pricing Issues

Richard,
I left you a message about this issue on Tuesday.  I really need your input
before we make the payments to Lynx.  Could we meet today sometime or talk on
the phone?

Thanks,

BOb.----- Forwarded by Robert Walker/HOU/ECT on 11/30/2000 08:12 AM -----

	Cynthia Hakemack
	11/28/2000 08:39 AM

		 To: Julie Meyers/HOU/ECT@ECT
		 cc: Robert Walker/HOU/ECT@ECT, Melissa Graves/HOU/ECT@ECT
		 Subject: D&P/Lynx Pricing Issues

Julie,  I'm working with Legal and Bob Surles with Lynx Energy Company on
some pricing issues regarding meter 6677.  I have verified with Bob Fischer
in the Transport Group the transportation rates that HPLC is paying to Gulf
Coast Pipeline Company, which in turn must be paid to HPLC by Lynx Energy.
Would you please change Sitara to reflect the transportation rates shown on
the schedule below?  Also, I've recalculated the average price and need you
to make those changes too. Thanks.

Sitara Period Transport Rate Price
84425 07/99 $.10 $2.1847776
84425 08/99 $.10 $2.4957319
84425 09/99 $.10 $2.7938893
84425 10/99 $.10 $2.4148763
84425 11/99 $.10 $2.8992412
128331 12/99-02/00 $.10 HSC less $.10
166026 02/00-03/00 $.10 HSC less $.10
166026 04/00-fwd $.20 HSC less $.10


Hey Ken,

I'm so sorry.  I'm not trying to hide!  I just found out I have a 300 flight
to NYC on a deal I know little about, then on to Chicago, no hotel rooms in
either city but GOTTA GO, not sure of the return. In short, I've been
Enronized. I picked up your number on a scrap of paper instead of the travel
agent's number (different scrap of paper I still have not found), and when
you answered I couldn't figure out who I called. At least your email helped
me get back to reality.

I apologize for the confusion, for not getting back to you, etc.  Please
don't read anything into it other than your glimpse into Enron. My sense is
I'd better not commit to anything this week, since I literally don't know
whether I am coming or going.

Thanks,

Kay

"Culotta, Kenneth" <KCulotta@KSLAW.com> on 09/12/2000 11:25:30 AM
To: "Kay Mann (E-mail)" <Kay.Mann@enron.com>
cc:

Subject: hmmmm

Kay

You can run but you're not very good at hiding!

KSC

                    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
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message in error, please notify the sender immediately by e-mail and delete
all copies of the message.


Question:

Do we have a schedule of assets to be involved in the transaction?  I recall
that Janelle had some stuff that wasn't on the list.

Thanks,

Kay


Shirley,

Yes, I think I am free. Please, set it up.

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/01/2001
09:00 AM ---------------------------
From: Cheryl Brashier@EES on 02/28/2001 05:04 PM
To: Bill Rapp/HOU/EES@EES, Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Damages Limitations

Would you be available for a meeting with Richard Zdunkewicz on Friday, March
2, at 1:00 - 2:00 p.m.?


give me a call: at home 743-807-7507,,,,,,mobile: 281-381-7332......

giddy

mc


I'm okay with this.


We are continuing work to ensure our new online trading system, UBSWenergy, is ready for launch on the week of Feb. 11, which is the week following the anticipated Enron/UBS Closing Date of Friday, Feb. 8.

To assist in this process, we are planning an online trading simulation for Thursday, February 7 from  0900 to 1100 (CST). It is planned to include all  traders, originators, mid/back-office staff and IT teams who would normally be involved with electronic trading.

Purpose of the simulation - The simulation will test our "live" trading environment (restricted to internal access only) and will:

Test the integrity and functionality of the system and related processes (including credit, risk, legal, operations, etc.)
Provide an opportunity for traders to verify their products and product setup
Demonstrate how the trading system and processes work to UBS staff visiting next week

Nature of the simulation - The simulation will include testing of all processes related to trading and mid/back-office functions:

Credit, Legal, Risk, Operations, and other groups:
Profile tests for "external" customers (role-played by Originators)
Profile tests for internal users (traders, back-office, etc.)
Data and Process checking as completed transactions flow through Mid/back-Office systems

Traders and Originators:
Traders will be managing their individual books and associated products. Although we may be restricted to certain financial products on launch day, both physical and financial will be available during the simulation. Each trader will be asked to manage their individual position and profitability goals for the simulation.
Originators and others will be asked to play the roles of counterparties. Credit limits, etc. will be tested during the simulation.

Information Technology:
Will assist in preparing data on the system for the simulation.
After the simulation is over, will work with the relevant groups to test the trade-data in various systems and risk books
Will ensure all simulation data is removed from the system after the simulation is complete.

Next steps

Traders and Originators will be contacted prior to simulation day to ensure they have appropriate access to the system.
Originators will be assigned specific roles. You should expect to receive an email and/or handout on or before Wednesday, Feb. 6.
UBSWenergy personnel will be meeting with back office personnel over the next several days to ensure everything is in place for the simulation.

Summary

This simulation is an important step towards re-launching our trading business. We appreciate the participation of everyone involved as we prepare for the public launch of UBS Warburg Energy and the UBSWenergy trading platform.

If you have any questions, comments, suggestions, or ideas regarding this simulation, please feel free to contact Bob Shults (30397) or myself (31861).

Regards,
Dave Forster
713.853.1861
E-Mail:	David.Forster@enron.com


What do you need from me?  It is not clear from your note.

Marlene Hilliard
10/08/99 08:52 AM
To: Gerald Nemec/HOU/ECT@ECT
cc:
Subject: CCGM, L.P.

On or about September 23, 1999 a request for service was placed by the above
referenced counterparty.  The request was for a Intrastate Gas Transportation
Agreement and 311 Gas Transportation Agreement.  These agreements were
forwarded to the counterparty, CCNG, Inc..  On or about October 6, 1999,
Kelly Cloud, Senior Vice President of CCNG, Inc. (713) 235-1972, called and
informed me that the counterparty should be CCGM, L.P..  Further, she
informed me that Section 7 of the agreement, which reads  in part: Gas is
free from liens and adverse claims of every kind, should be changed because
the gas that the counterparty will be transporting on HPL may and/or  is
subject to liens.  She was instructed to destroy the agreement and another
would be forwarded to her with the necessary corrections and re-wording of
Section 7.

Attached find the agreements for the necessary changes in Section 7.  Kelly
Cloud has instructed me to call with any further questions.

Thanks.

Marlene D. Hilliard


Lee,

Please do not trade financially with Fortum Gas Ltd. until we satisfy the
eligibility issue.

thanks
brant

 -----Original Message-----
From:  Reves, Brant
Sent: Thursday, May 03, 2001 9:24 AM
To: Harrison, Oliver
Subject: Fortum Gas Ltd.

Oliver,

A quick question regarding Fortum Gas Ltd.  How have you established this
entity as an eligible contract party?  Do you have a financial statements or
a guaranty?  I am trying to validate them to trade financially with ENA, but
legal is asking for proof they meet eligibilty standards.

Please advise,

thanks
brant


The Senate may vote on its version, SBX 1, tonight.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 05/07/2001 02:53 PM -----

	Scott Govenar <sgovenar@govadv.com>
	05/07/2001 02:33 PM

		 To: Hedy Govenar <hgovenar@govadv.com>, Mike Day <MDay@GMSSR.com>, Bev
Hansen <bhansen@lhom.com>, Jeff Dasovich <jdasovic@enron.com>, Susan J Mara
<smara@enron.com>, Joseph Alamo <JAlamo@enron.com>, Paul Kaufman
<paul.kaufman@enron.com>, Michael McDonald <Michael.McDonald@enron.com>,
Sandra McCubbin <Sandra.McCubbin@enron.com>, Rick Shapiro
<rshapiro@enron.com>, Jim Steffes <james.d.steffes@enron.com>, Alan Comnes
<acomnes@enron.com>, Steven Kean <Steven.J.Kean@enron.com>, Karen Denne
<kdenne@enron.com>, "Harry.Kingerski@enron.com" <Harry.Kingerski@enron.com>,
Mike D Smith <msmith1@enron.com>, Leslie Lawner <Leslie.Lawner@enron.com>,
Robert Frank <rfrank@enron.com>, Ken Smith <ken@kdscommunications.com>, Janel
Guerrero <Janel.Guerrero@enron.com>, Miyung Buster <Miyung.Buster@enron.com>,
Jennifer Thome <Jennifer.Thome@enron.com>, Eric Letke <eletke@enron.com>,
Mary Schoen <Mary.Schoen@enron.com>
		 cc:
		 Subject: ABX 128 - Windfall Tax - Passage

ABX 128 (Corbett), which establishes a windfall profits tax, passed out
of the Assembly Revenue and Taxation Committee on a party-line vote.
The bill was completely rewritten in committee to do the following.  I
will fax bill language to Houston, Portland and San Francisco.  If
anyone else would like language, please e-mail me.

a.    Create a Tax on Excess Gross Receipts from Electrical Energy
Distribution.

b.    Impose the tax on the person making the first sale of electrical
power in or into California for consumption.

c.    Establish as the measure for the tax, the amount by which the
gross receipts from the sale exceed the amount that        would have
been received if the sale had been made at a specified price (the 'base
price').

d.    Establish a $60 base price.

e.    Create a rebuttable presumption that the base price represents a
fair sales price.

f.    Add a mechanism to require withholding of the tax from purchasers,
other than purchasers who are residential
consumers or small business users.

g.    Require sellers to file annual tax returns to report the tax on
excess gross receipts and pay any remaining tax due.

h.    Allow sellers to file a claim for refund in an attempt to rebut
the presumption that the base price represented a  fair sales price with
respect to that seller.

i.    Establish the connections to California giving rise to  liability
for the tax.

j.    Include a sunset date for the tax after 5 years.


Workbooks.Open Filename:= _
        "\\enehou\houston\common\Global_Trading\Financial_Trading\Book\ExchangeFile.xls"


TASK ASSIGNMENT

Task Priority:		2
Task Due On:		3/7/1999
Task Start Date:	3/7/1999


Here's a first stab at the LOI.  I just guessed on the attachment.

I have a couple of questions:

Any thought as to how we get/split money (other than the obvious up side for
us)?

Do we want to work toward a "Project Development Agreement" which will set
forth the basis for how we develop projects on a project-by-project basis? Or
do you envision a different next step?

Talk to you soon,

Kay


Here is the pricing from Yvan.  Lets talk about it when you get a chance.
Thanks
Ben
---------------------- Forwarded by Benjamin Rogers/HOU/ECT on 04/04/2000
12:05 PM ---------------------------

YVAN CHAXEL@ENRON
04/03/2000 09:08 AM
To: Benjamin Rogers/HOU/ECT@ECT, Donald M- ECT Origination Black/HOU/ECT@ECT
cc:
Subject: Re:

Ben,

here are the new numbers (much more favorable).

Give me a call if you want to discuss them.

Yvan
34292


FYI

 -----Original Message-----
From: 	Howard, Kevin A.
Sent:	Thursday, November 15, 2001 5:46 PM
To:	Hayslett, Rod
Subject:	FW: New Bank Accounts Needed for TPC and NNG

fyi - this is reflected in the credit agreements.  Just took Saunders and his team through deal - we are going to meet again next Monday to lay out the deal and the accounting treatment.  He has a very good team.

 -----Original Message-----
From: 	Winfrey, Travis
Sent:	Thursday, November 15, 2001 5:11 PM
To:	Garcia, Paul
Cc:	Perkins, Mary; McSpadden, Carol; Boyle, Dan; Howard, Kevin A.; Mitchell, David
Subject:	New Bank Accounts Needed for TPC and NNG

Paul,

I need two new bank accounts set up, one for Transwestern Pipeline Company and one for Northern Natural Gas Company. Per the Credit Agreements related to the $1 billion Pipeline Financing, Citibank and JP Morgan Chase have require us to set aside $10,000,000 in a Transwestern account and $30,000,000 in Northern Natural account.  These amounts cannot ZBA up to Enron Corp.  The banks require us to set aside these amounts (equal to one month of operating expenses) and have them available in accounts that are not swept to Enron Corp.

Let me know if I need to provide you with any further information.

Thanks,
Travis
5-8404


Raj Vaswani, the general counsel for Kiodex, called me to pass along two messages:

1.	If a new  joint venture is created to resurrect EnronOnline, Kiodex would be interested in pursuing a business relationship with the new joint venture.  I told him that it was much too early to predict whether this would be of interest to a new trading company, but I told him I would relay Kiodex's interest to you.

2.	Kiodex may be interested in repurchasing the shares in Kiodex currently owned by Enron Net Works LLC.  He did not know what the price would be, but wanted to know if we would be interested.  Since Net Works is a filed company, we would probably have to get the bankruptcy court's approval to sell.   I assume that if the price is right we are interested in pursuing this.  Let me know.

Thanks, Anne


We have received the executed Master Power Purchase & Sale Agreement from the
referenced CP dated 11/22/2000.  Copies will be distributed to legal and
credit.

This is an EEI Agreement.


Here is some information on one of the students invited to Enron next week by
Tom Gros.
--Stinson

---------------------- Forwarded by Stinson Gibner/HOU/ECT on 02/10/2000
05:24 PM ---------------------------

"Juan-Carlos O. Ferrer" <jferrer@MIT.EDU> on 02/10/2000 04:17:17 PM
To: Stinson.Gibner@enron.com
cc:
Subject: Trip to Houston

Hi Stinson, I am Juan-Carlos Ferrer, also Ph.D. student working with Gabriel
Bitran and going to Houston with Amit and Paulo on the 16th. Paulo told me
that you are interested in some information of us before going to Houston.

Well, I am form Chile, married, and father of two girls (3 and 2). I
graduated from the Engineering School at the Catholic University of Chile in
1995 having followed the track in Computer Science during the last 3 years of
school. Then, late in 1995, I was hired by the Industrial Engineering
department as a full-time Assistant Professor of Management Science, where I
was teaching and doing research until June 1997. In August 1997 I came to
Boston to join the Operations Management group in the Sloan School of
Management here at MIT. I already finished courses and qualifiers
requirements of my program, so now I am trying to come up with an interesting
research topic to develop my Ph.D. thesis.

I have been dealing with some interesting topics during the last months but
since Enron appears as an opportunity to find a more challenging and
appealing problem to me I decided to explore it. My intention in going to
visit Enron is to have a better understanding of the bandwidth business in
order to define a problem to work with. I would really like to do a thesis
that involves Internet issues and yield management models, in the line of
Amit's work.

Any other information or question you need, please feel free to contact me.

Looking forward to meeting you on the 16th.

Juan Carlos Ferrer

?? --------------------------------------
????????? Juan-Carlos O. Ferrer
??? Ph.D. student, Operations Management
???? Sloan School of Management - M.I.T.
???? of:(617)253-3597 fax:(617)258-7579
?????? http://web.mit.edu/jferrer/www/
?? --------------------------------------


-----Original Message-----
From: 	Eickenroht, Robert
Sent:	Thursday, October 18, 2001 11:57 AM
To:	'joseph.cialone@bakerbotts.com'; 'david.burns@bakerbotts.com'
Cc:	Mellencamp, Lisa; Tribolet, Michael; Bradford, William S.
Subject:	NewPower Form 8-K and Press Release

I also have sent these to Ken Lay, Rick Causey, Jim Derrick, Mark Koenig and Mark Muller.

Regards,
Robert

Robert D. Eickenroht
Vice Pres. & Assist. Gen. Counsel
Enron Corp.
1400 Smith Street, EB 4859
Houston, Texas  77002
Ph:   713/853-3155
Fax:  713/646-5847
EMail:  robert.eickenroht@enron.com

This E-Mail may contain confidential, proprietary or privileged information intended for the sole use of the intended recipient(s).  Any review, use, distribution or disclosure by anyone other than the intended recipient is strictly prohibited.  If you are not the intended recipient (or if you are not someone who is authorized to receive for the intended recipient), please contact the sender and delete all copies of the message.

--------- Inline attachment follows ---------

From:  <Marc.Manly@NewPower.com>
To: Eickenroht, Robert </O=ENRON/OU=NA/CN=RECIPIENTS/CN=REICKEN>
CC: sfreeman@sidley.com
Date: Thursday, October 18, 2001 4:36:02 GMT
Subject:

Robert:

As promised, attached is the current version of the press release.  Your
quick review is appreciated in that we are anxious to send out faxed
packages of the resolutions, 8-K  and press release to the other Board
members for their execution today of the Unanimous Consent.

          Marc

(See attached file: Press Release Final.doc)

--------- Inline attachment follows ---------

From:  <Marc.Manly@NewPower.com>
To: Eickenroht, Robert </O=ENRON/OU=NA/CN=RECIPIENTS/CN=REICKEN>
CC: sfreeman@sidley.com, crestad@sidley.com
Date: Thursday, October 18, 2001 4:24:11 GMT
Subject:

Robert:

I attach the final version of the 8-K reflecting our last conversation
(concerning Gene's comments this morning), together with a blacklined
version from the document circulated by Sidley last evening.  I have not
reviewed the listing of exhibits to the 8-K, but presume they include
everything necessary.  If not, let us know.

I will shortly send you a version of the press release.

Marc

(See attached file: 8-K Final.doc)(See attached file: 8-K Final
Blacklined.doc)


Yes.

From: Suzanne Adams@ECT on 05/16/2001 10:03 AM
To: kay.mann@enron.com
cc:

Subject: Re: GE- Standard Domestic Contract- Need your help

Kay, can you join them late?
----- Forwarded by Suzanne Adams/HOU/ECT on 05/16/2001 10:03 AM -----

	Sheila Tweed
	05/16/2001 09:08 AM

		 To: Suzanne Adams/HOU/ECT@ECT, Scott
Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt
		 cc:
		 Subject: Re: GE- Standard Domestic Contract- Need your help

Any way we could do this at 2pm and Kay can join us late?
----- Forwarded by Sheila Tweed/HOU/ECT on 05/16/2001 09:07 AM -----

	Kay Mann@ENRON
	05/16/2001 09:03 AM

		 To: Sheila Tweed/HOU/ECT@ECT
		 cc:
		 Subject: Re: GE- Standard Domestic Contract- Need your help

Between 11-130; 215-400 today, almost anytime Friday, other than 2-3.

From: Sheila Tweed@ECT on 05/16/2001 08:59 AM
To: Kay Mann/Corp/Enron@ENRON
cc:

Subject: Re: GE- Standard Domestic Contract- Need your help

When will you not have conflict?

	Kay Mann@ENRON
	05/16/2001 08:54 AM

		 To: Sheila Tweed/HOU/ECT@ECT
		 cc:
		 Subject: Re: GE- Standard Domestic Contract- Need your help

I have a conflict at 130. Rose has been reliable at showing up and
participating, so I suggest that she be included, although it sounds like she
'll be with John.

ckm

From: Sheila Tweed@ECT on 05/16/2001 08:49 AM
To: Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: John G Rigby/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kay Mann/Corp/Enron@Enron

Subject: Re: GE- Standard Domestic Contract- Need your help

Yes. Let's do 1:30 for an internal call.  I'll get Suzanne to send out the
dial-in instructions.  Let's make sure that the GE guys know NOT to call in.
Thanks!.  I know that John Schwartzenburg will be late since he is
TurboParking until 2 pm but let's proceed at 1:30.

	Scott Dieball@ENRON_DEVELOPMENT
	05/16/2001 07:15 AM

		 To: Sheila Tweed/HOU/ECT@ECT
		 cc: John G Rigby/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kay
Mann/Corp/Enron@Enron@ECT, John
Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: Re: GE- Standard Domestic Contract- Need your help

Read your notes re scheduling a call w/ or w/o GE.  From John's and my
perspective, it seems that we should first have an internal call re the
consolidation of our assignments from weeks past  into Peter's draft contract
and then send to GE for their review and follow up call either later this
week or next.  Steve Swift is OK with this approach.

At the moment we seem to be knee deep w/GE and Owner on Arcos and suspect
that 9:30 CST (3:30 London time) will be difficult for us to call in.
Instead, 1:30 CST would work better for us.

If this works for the Houston gang could you let us know soonest and we will
let Mike and Steve know as well.

	Sheila Tweed@ECT
	05/15/2001 04:18 PM

		 To: John G Rigby/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Kay
Mann/Corp/Enron@Enron
		 Subject: Re: GE- Standard Domestic Contract- Need your help

Would you all be in a posiotion to get together tomorrow morning at 9:30 am
Houston time to review the issues list and  talk about how we get to the end
of this process with GE.  We immediately need to start the drafting of the
Longview turbine contract and I'd like to see if we are close enough to get
that started.  Scott, today the extension to the Agreement in Principle
expires and we need to extend.  Can you tee this up with Steve Swift?  Our
meeting tomorrow will be in lieu of the regularly scheduled GE call.  I'll
let them know we will call them later this week or we'll talk next Wednesday,
but I would like to get through whatever we need to in order to get the
Longview Turbine Contract going.
I've talked to John Schwartzenburg about this and he is available tomorrow
morning.


pls put on my calendar
----- Forwarded by Sara Shackleton/HOU/ECT on 09/25/2000 02:19 PM -----

	Chaundra Woods
	09/25/2000 11:24 AM

		 To: Mary Cook/HOU/ECT@ECT, Lisa Mellencamp/HOU/ECT@ECT, Travis
McCullough/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Andrea V
Reed/HOU/ECT@ECT, Scott Sefton/HOU/ECT@ECT, Julia H Chin/NA/Enron@Enron,
Michael S Galvan/HOU/ECT@ECT, Hope Vargas/HOU/ECT@ECT, Brian
Schwertner/NA/Enron@Enron
		 cc: Linda J Simmons/HOU/ECT@ECT, Linda J Noske/HOU/ECT@ECT, Kaye
Ellis/HOU/ECT@ECT, Joyce Dorsey/HOU/ECT@ECT, Melba Trevino/NA/Enron@Enron,
Nicole Mendez/HOU/ECT@ECT
		 Subject: Additional Raptor SWAP Processes Meeting

The additional Raptor SWAP meeting is scheduled for Tuesday, September 26,
2000 at 9:30 a.m. in EB38C1.


Call id you have any discrepancies.  Thanks


-----Original Message-----
From: R J ROSS COMPANY [mailto:rross1@flash.net]
Sent: Wednesday, April 10, 2002 11:20 AM
To: Schockling, Gregory
Subject: Re: Touching Base

Yes, I am definitely interested in seeing his resume. Thanks-I ALWAYS want
to hear about a "damn good trader"!

----- Original Message -----
From: "Schockling, Gregory" <Gregory.Schockling@Bridgeline.NET>
To: "R. Ross" <rross1@flash.net>
Sent: Wednesday, April 10, 2002 8:54 AM
Subject: RE: Touching Base

Doesn't sound like it will but there is a guy working for me now, Joe PArks
who is a damn good trader, more jr to me who you should look at.  If you
want his resume let me know.

Greg

-----Original Message-----
From: R. Ross [mailto:rross1@flash.net]
Sent: Wednesday, April 10, 2002 8:47 AM
To: Schockling, Gregory
Subject: Re: Touching Base

Not defined yet, but they are building an asset based trading organization,
and I'm certain it would be trading related.
My concern is that the timing won't fit your needs.

R. J. ROSS COMPANY
Executive Search for the Energy Industry
P. O. Box 271888
Houston, Texas
77277
Office: (713)-665-5557

"www.rjrossco.com"
----- Original Message -----
From: "Schockling, Gregory" <Gregory.Schockling@Bridgeline.NET>
To: "R. Ross" <rross1@flash.net>
Sent: Wednesday, April 10, 2002 8:38 AM
Subject: RE: Touching Base

Thanks for the update if they are interested in me, for what type of role?

Let me know.

Thanks

Greg

-----Original Message-----
From: R. Ross [mailto:rross1@flash.net]
Sent: Wednesday, April 10, 2002 8:34 AM
To: Schockling, Gregory
Subject: Re: Touching Base

Greg,

Dreyfus said they are interested in you but not for the lead role for this
situation. Since you have something that is close, you might not be
available when Dreyfus is ready.
Please keep me posted on your situation and thanks for your interest in my
search.

Randy

R. J. ROSS COMPANY
Executive Search for the Energy Industry
P. O. Box 271888
Houston, Texas
77277
Office: (713)-665-5557

"www.rjrossco.com"
----- Original Message -----
From: "Schockling, Gregory" <Gregory.Schockling@Bridgeline.NET>
To: "R J ROSS COMPANY" <rross1@flash.net>
Sent: Wednesday, March 27, 2002 7:53 AM
Subject: RE: Touching Base

Randy,

Sounds interesting, I wonder if they have been in contact with Enron, or
anyone here. I would be interested, but within a week or so I may be
elsewhere, so let me know. If they can move quicky,I am not interested in
moving to Conn but have an interest in Houston.

Let me know, the type of person they are looking for fits well timing isnt
great but sounds like they have a bigger plan.

You can email me here or home.

Thanks

Greg Schockling

-----Original Message-----
From: R J ROSS COMPANY [mailto:rross1@flash.net]
Sent: Tuesday, March 26, 2002 2:56 PM
To: GSchocklin@aol.com
Subject: Re: Touching Base

Greg,

Here is the basic information on Dreyfus. Tim Stuart is the President of
Louis Dreyfus Energy Services, which is primarily the liquids trading
business at present. (go to: http://www.louisdreyfus.com/, click "energy",
and "petrochemicals".
Here is the generic recruiting email I sent out:

I request your assistance in gathering names of candidates for an ENERGY
EXECUTIVE search.

My Client: An $18 billion GLOBAL COMMODITY TRADING organization.

The Opportunity: Through acquisitions and joint ventures, to BUILD AN ASSET
BASED ENERGY TRADING COMPANY with the objective of monetizing the
optionality around those assets.

The Candidate: A STRATEGIC VISIONARY, capable of building a value oriented
organization, and capitalizing upon financial and physical trade arbitrage
opportunities.

Bottom line is they want back in to the physical business and they are
looking for the lead person to do it. The preference is to base them in
Wilton, CT but they will also consider Houston.
Besides experience trading a "physical gas book", this person must have
strong entrepeurnial and strategic instincts. Which assets should they buy?
Why? Which joint venture relationships make sense and why? These issues
require someone with a big picture understanding and vision of the energy
industry and an understanding of how to evaluate and monetize the
optionality of assets.
Some people may be great traders, but they don't have the aggressiveness and
vision to direct the business side of this venture. Some people may have
strong "asset" background but they don't understand how to manage a trade
group to squeeze the most value from assets through sophisticated and
creative trading strategies. This position requires both.
I would like to put your resume in front of them. Your recent experience
trading around the Bridgeline system would be of interest.
Please let me know what you think?

Randy

----- Original Message -----
From: <GSchocklin@aol.com>
To: <rross1@flash.net>
Sent: Monday, March 25, 2002 8:22 PM
Subject: Re: Touching Base

> Randy,
>
> Still at Bridgeline right now, Enron hasn't decided what to do with us so
who
> knows.  I'm actually exploring some other options right now so who knows
> where I'll be in a month or so.  Everything still muddy from bankruptcy,
so I
> may be splitting soon.  I'll keep you posted.  Good to hear from you!
>
> Thanks
>
> Greg
>
>
>
>
>

************************************************************************
This e-mail is the property of Bridgeline Holdings, L.P. and/or its relevant
affiliate(s) 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 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
Bridgeline Holdings, L.P. (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.
************************************************************************

************************************************************************
This e-mail is the property of Bridgeline Holdings, L.P. and/or its relevant
affiliate(s) 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 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
Bridgeline Holdings, L.P. (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.
************************************************************************

************************************************************************
This e-mail is the property of Bridgeline Holdings, L.P. and/or its relevant
affiliate(s) 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 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
Bridgeline Holdings, L.P. (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.
************************************************************************


Enron Shares Fall on Concern Over CFO's Partnerships (Update4)
Bloomberg, 10/19/01

USA: UPDATE 1-Enron stock sustains further heavy losses.
Reuters English News Service, 10/19/01
Enron Corp. Cut to `Hold' at A.G. Edwards
Bloomberg, 10/19/01

BANDWIDTH BEAT: Enron Broadband Unit Takes A Beating
Dow Jones Energy Service, 10/19/01
Dynegy Chief: Bandwidth Growth Won't Wait For Trading
Dow Jones Energy Service, 10/19/01
UK: Jobs in base metals down but definitely not out.
Reuters English News Service, 10/19/01
New Power Hldg Sees Meeting 3Q Loss Estimate
Dow Jones News Service, 10/19/01

Enron Shares Fall on Concern Over CFO's Partnerships (Update4)
2001-10-19 16:24 (New York)

Enron Shares Fall on Concern Over CFO's Partnerships (Update4)

     (Updates with Chief Financial Officer Fastow didn't
immediately return a call for comment in fifth paragraph.)

     Houston, Oct. 19 (Bloomberg) -- Enron Corp.'s shares have
fallen 26 percent in the past three days on concern the biggest
energy trader's dealings with partnerships run by its chief
financial officer contributed to investment losses.

     Enron's stock dropped 10 percent today. Enron's board cost
the company at least $35 million by allowing Chief Financial
Officer Andrew Fastow to manage LJM Cayman and LJM2 Co-Investment,
partnerships that bought Enron assets, a shareholder alleged
Wednesday in a lawsuit.

     The lawsuit came the day after Enron reported $1.01 billion
in third-quarter losses from failed investments. The Wall Street
Journal reported $35 million of the losses were connected with the
two limited partnerships. Enron also reduced shareholders' equity
by $1.2 billion when it bought back 55 million shares from the
partnerships, the paper reported yesterday.

     ``It looks sleazy,'' said Roger Hamilton, a manager at John
Hancock's Value funds, which own 600,000 shares. ``If you are
someone who invests in a company's management, it's almost time to
punt with Enron.''

     Enron spokeswoman Karen Denne didn't return calls or written
requests seeking comment. Fastow didn't immediately return a
telephone call for comment.

     Fastow and a handful of associates made more than $7 million
last year in management fees and about $4 million in capital
increases on an investment of about $3 million in one of the
partnerships, the Journal reported today.

                        Buying Enron Assets

     Fastow is involved in 17 other similar companies and
partnerships that appear to have ties to Houston-based Enron,
based on filings with the Texas secretary of state.

     The foreign business corporations and limited liability
companies have directors, officers or managers whose address is
listed as 1400 Smith Street in Houston, Enron's corporate address,
according to Texas records.

     Fastow is listed as a director, officer or managing member in
each one. At least one of the companies bought and sold Enron
assets, including foreign power plants.

     Whitewing Management, which lists Fastow as its managing
member, received $807 million from the sale of Enron debt last
year.

    Under the terms of the debt sale, Whitewing is allowed to use
the proceeds to buy power plants from Enron or make other
``permitted investments.'' Whitewing has bought 14 Enron plants or
companies since 1999 and sold four.

     Enron's Denne has not responded to written requests about
Fastow's role at Whitewing or whether he used his knowledge of the
value of Enron assets to benefit outside investors or company
executives at Enron's expense.

     Shares of Enron fell $2.95 to $26.05. They have fallen
69 percent this year.

--Russell Hubbard in the Princeton newsroom, 609-750-4651 or
rhubbard2@bloomberg.net, and Jim Kennett in Houston,
(713) 353-4871 or jkennett@bloomberg.net/pjm/alp/pjm

USA: UPDATE 1-Enron stock sustains further heavy losses.

10/19/2001
Reuters English News Service
(C) Reuters Limited 2001.

(New first paragraph, adds additional analyst comment)
By Andrew Kelly
HOUSTON, Oct 19 (Reuters) - Enron Corp. stock sustained further heavy losses on Friday as investor confidence in the former Wall Street favorite was rocked by reports about the company's relationship with a limited partnership that was run until recently by Enron's chief financial officer.
The energy giant's stock closed down $2.95 or 10.2 percent at $26.05 per share, making a cumulative loss of 27 percent for a week in which Enron reported a third-quarter loss of $638 million, its first quarterly loss in over four years.
Analysts said confidence was shaken by several articles in the Wall Street Journal this week alleging possible conflicts of interest on the part of Chief Financial Officer Andrew Fastow, who until recently ran a limited partnership that bought assets worth hundreds of millions of dollars from Enron.
"I don't think this thing passes the smell test," said one analyst who spoke on condition of anonymity. "I think the CFO should be out of there right now. In the interest of the stockholders, that CFO should be gone," he said.
Enron has rejected the suggestion that there was anything improper about the arrangements, but Fastow severed his ties with the LJM2 partnership earlier this year to allay concerns raised by investors and analysts about his dual responsibilities.
POOR JUDGMENT?
Analysts said that at the very least, the arrangement showed poor judgment by senior managers at Enron, which recently pledged to be more open with investors and analysts following a series of high-profile stumbles that culminated with the shock resignation of new chief executive officer Jeff Skilling in August.
"For a company that had a lot of question marks around it already, these questions about financial dealings are really worrisome for investors," said Commerzbank Securities analyst Andre Meade. "It points to poor decision-making on behalf of the board and top management at Enron," he said.
Enron, North America's biggest buyer and seller of natural gas and electricity, was one of Wall Street's high flyers last year, when its stock posted a gain of 87 percent.
The stock's ascent was driven by enthusiasm for the company's plans to build a broadband telecommunications business and the success of its EnronOnline Internet energy trading platform.
This year Enron's shares have fallen 69 percent as sentiment toward broadband and the Internet soured, Skilling resigned after only six months as CEO, and the company's Dabhol power plant project in India became mired in a payments dispute.
Moody's Investors Service said earlier this week that it had placed all of Enron's long-term debt obligations on review for a possible downgrade after Enron took $1.01 billion in write-downs and charges that substantially reduced valuations for several non-core businesses, including broadband and water services.
Some of Enron's financing arrangements require the company to maintain investment grade credit ratings.
Analysts said Enron's credibility has been severely damaged and the recent reports about the LJM2 partnership had raised concerns that more unpleasant surprises may lie ahead.
"What don't we know that went on at that company? Where's the credibility?" asked one frustrated analyst. "We don't know if it's limited to this," he said.

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

Enron Corp. Cut to `Hold' at A.G. Edwards
2001-10-19 16:27 (New York)

     Princeton, New Jersey, Oct. 19 (Bloomberg Data) -- Enron Corp. (ENE US)
was downgraded to ``hold'' from ``buy'' by analyst Michael C Heim at A.G.
Edwards & Sons Inc.

BANDWIDTH BEAT: Enron Broadband Unit Takes A Beating
By Michael Rieke

10/19/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column

HOUSTON -(Dow Jones)- Early last year, Enron Corp.'s (ENE) hype and skyrocketing share price enticed a number of other energy companies into the telecommunications business.
Now investors are wondering whether Enron is leading the charge out of telecom.
The company announced Oct. 16 that its broadband unit lost $80 million before interest and taxes in the third quarter on revenue of $4 million. In the third quarter of last year, the unit lost $20 million on revenue of $162 million.
Enron also recorded a $180 million non-recurring charge for restructuring its broadband unit in the third quarter of this year. That amount included severance costs for cutting 400-500 jobs, loss on sale of inventory and the reduced value of Enron's content services.
At an analysts meeting Oct. 16, Enron Chairman and Chief Executive Ken Lay said the broadband business is "not that robust" right now. Industry revenue is low and there's substantial overcapacity in the bandwidth market, "more than even we anticipated," Lay said.
The company still has a problem finding creditworthy counterparties for bandwidth trading. Consolidation in the telecom sector has also eliminated potential trading partners.
"A year ago it looked like an excellent business to get into," he said. "Others thought so, too."
Looking back, Enron could have gotten into the broadband business with less capital, Lay said. It spent "too much too soon."
An Ominous Comparison

He compared Enron's move into telecom with its move into the water business with its Azurix unit. That comparison probably won't be good news to those who still have broadband jobs at Enron.
Azurix caused Enron to take a bigger writedown - $287 million - than broadband in the third quarter. The water business has been a bigger and longer-lasting headache than broadband.
Maybe Enron's surviving broadband employees will feel better knowing that Lay told analysts the company is exploring alternatives to preserve its play in telecom at a reasonable price so it will be ready when the business recovers.
It's trying to reduce general and administrative costs in broadband to $40 million a quarter and is on track to reach that goal next year, he said. It could cut those costs even more in order to sustain the business.
Meanwhile, the company is trying to determine which parts of the telecom business it wants to be in, he said.
Enron President and Chief Operating Officer Greg Whalley told analysts the company needs to determine how much network and hardware it needs.
At one time, they had thought that they wanted to use physical network assets as a springboard, Whalley said. Now they "wouldn't want to forever be in the network business."
Both executives mentioned the possibility of joint ventures in telecom. Lay said other companies are asking Enron to do them. Whalley said the company has talked about exchanging fiber and other assets.
The one part of the telecom business Enron still seems committed to is broadband intermediation. "Intermediation" is a term the company uses in most of its commodity businesses, said an Enron spokeswoman. It's a combination of trading and deal origination - wholesale and enterprise customers.
More Bad News Expected

Rebecca Followill, a research analyst for Howard, Weil, Labouisse, Friedrichs Inc., she had expected a larger writedown in broadband for the third quarter.
"If you look at how much the stocks of their peers in broadband have fallen, you've got to figure that their assets' values have fallen similarly," Followill told Bandwidth Beat. "I was expecting more like an 80% writedown in broadband."
Another analyst, who didn't want to be identified, said he also expects more broadband writedowns from Enron. "To the extent that they can take more writedowns, I think it would make eminently good sense to do it."
He predicted "a $200 million haircut" in the first quarter of next year because of a goodwill valuation issue.
And that might not be the end of it. Enron had a net of $948 million of broadband property, plant and equipment at the end of last year, he said. They had another $600 million of risk management asset receivables, inventories and working capital items.
Followill doesn't see much future in broadband for Enron.
"I think the business will shrink to the point where it won't be shown as a key sector in their reporting," she said.
Enron might keep a small broadband group in case the market rebounds, she said. Her investor clients don't expect broadband to contribute to Enron's earnings within the next three years.
She thinks Enron is looking for an exit strategy.
The other analyst said Enron is trying to preserve some value in broadband. "It doesn't look like there's any right now, to be honest," he said. "They'll carry the trading operation to some degree."
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@dowjones.com

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

Dynegy Chief: Bandwidth Growth Won't Wait For Trading
By Erwin Seba
Of DOW JONES NEWSWIRES

10/19/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Dynegy Inc. (DYN) Chairman and Chief Executive Chuck Watson understands why some think he is mistaken in believing the bandwidth sector has reached its bottom and is recovering.
But those critics don't understand his bandwidth business, Watson told Dow Jones Newswires in an exclusive interview. They don't understand how the business world has changed since the Sept. 11 terrorist attacks, he said.
In announcing third-quarter results for Dynegy Monday, Watson said the bottom in bandwidth demand was reached on Sept. 11 and that the market would begin recovery in the fourth quarter of this year.
Businesses are reassessing where to store data and how to distribute operations to avoid losing everything in a sudden catastrophic event, be it of natural or human origin. That's what's driving the recovery, he said.
Also, businesses will avoid travel, he said, relying instead on video conferencing.
Enron Corp. (ENE) Chairman Kenneth Lay said Tuesday that he hasn't seen any signs of recovery in telecom. The bandwidth market is suffering, in part, because there are few creditworthy companies to trade with, he said.
"They're trying to find trading partners for broadband," Watson said. "That's going to be tough to do." Dynegy isn't concentrating on bandwidth trading because there isn't "a realistic model" for it yet, he said. "I said two years ago it was at least two years away. I still think it's probably at least two years away, before we actually call it a trading commodity."
The metro-area infrastructure that Dynegy and other companies are building will create connections between networks, which are needed in order to trade bandwidth as a commodity, Watson said.
It's unfortunate that Enron's model for bandwidth as a traded commodity is the dominant image for the entire market, Watson said. Dynegy's model includes telecom contracts, negotiated directly with customers for long-term supply of bandwidth.
Dynegy's bandwidth trading desk is staffed by four people. For the past several months, they have been buying bandwidth for Dynegy's customers. The goal has been to build a customer base. "We're looking at being an intermediary, and really looking at the same customers that we feed energy today."
Since Dynegy lit its 16,000 route-mile network two weeks ago, the trading desk has been trying to fill the company's network instead of buying bandwidth from others. "I'm trying to find enterprises that have communication requirements," Watson said.
He pointed to ChevronTexaco Corp. (CHX) as a target for those services. "They have offices that never talked to each before," he said. "Now they've got to talk to each other. I would say that the credit quality of Chevron and Texaco is pretty reasonable."
ChevronTexaco owns about 26% of Dynegy, said a Dynegy spokesman. Dynegy and ChevronTexaco already have a large energy trading relationship which includes natural gas and gas liquids.
The average burn rate of Dynegy Global Communications, the corporation's telecommunications unit, is $20 million to $25 million a quarter, Watson said. In the third quarter, it lost $15 million, down from $20 million in the second quarter.
Dynegy predicts that Global Communications will break even or record a small loss before interest and taxes in the fourth quarter.
"If we can get to (income of) $10 million per month - that's what we need really," he said. "If we can get there by the end of next year, I'll be very happy. I think by '03, this market will have righted itself."
Watson believes telecommunications has the potential to transform Dynegy.
"Dynegy is an energy company," he said. "Our energy merchant company is doing very well and business is growing like a weed...(Telecommunications) is not our core business by any stretch right now. But I'd love to be able to tell you it's going to be. I'd love to be able to tell you it is someday."
-By Erwin Seba, Dow Jones Newswires; 713-547-9214; erwin.seba@dowjones.com

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

UK: Jobs in base metals down but definitely not out.
By Amanda Cooper

10/19/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Oct 18 (Reuters) - Dismal industrial demand and the fickleness of hedge funds seduced by more volatile markets have slashed London Metal Exchange members' profits over the past year and set off a gathering wave of job cuts.
The decline and fall of base metal prices in the past year and a half has prompted a series of high-profile companies to withdraw from the market, casting a pall over next week's yearly LME Week industry gathering in London.
Jobs have gone from front office to back in trading houses and banks, raising questions about the prospects for those now seeking work.
"Good people can always be placed. As long as there is a job to fill and the company has a budget to hire," Sarah Gilley of London-based recruitment group Exchange Consulting said.
"Where the situation starts to get difficult is where everyone is cutting budgets, people are not being replaced when they leave and there have been an awful lot of redundancies."
Last week, ScotiaMocatta, a subsidiary of the Bank of Nova Scotia and a key ring dealing member, unveiled its decision to give up open outcry trading on the LME floor, prompting around 25 job losses among traders, phone jockeys and clerks.
Then blue-blooded banker N.M. Rothschild & Sons closed its London and New York base metals units. It left its core precious metals business intact, but 20 base metals staff were laid off in the process.
In the same week, the LME's largest floor trader, Enron Metals, said it planned to cut 10 to 20 percent of its metals staff as part of an exercise to cut 250 to 500 jobs in the Enron Group .
SECURITY
With three big market players and several major banks with commodities divisions slashing jobs at the same time, competition in the labour market will intensify and those in work are becoming wary about job security.
"What we're finding at the moment is that there is still demand for traders with a track record, which is possibly increasing because people are nervous about their jobs and so they're keen to stay put," Gilley said.
"So whereas someone who might be a big money-spinner with a track record would have previously stayed in their job for two to three years, they are now staying for three to five years.
"They probably feel that they're reasonably safe where they are, they're well recognised and not going to stick their necks out," she said.
BONUS FEARS
October has never traditionally been a strong month for the the jobs market in base metals as players are often distracted by LME week functions and conferences
Also, traders tend to be looking towards their annual performance-linked bonuses, which are usually announced at the end of the year.
"Those who are in work at the moment are sticking. Often at this time of year, people are hanging on for their bonuses. But I don't think any of them are anticipating good bonuses. They're probably just happy to have a job," Sian Griffiths of Exchange Consulting said.
LME volumes traded have been fallen over the past 18 months as the powerful hedge funds that once took a shine to the metals swarmed into areas such as hi-tech and telecomms stocks.
Metals traders who handled the large volume of fund activity have begun to focus again on moree traditional clients, and this may yet prove a boon for the jobs market.
Companies are seeking to fill a shortage of staff schooled in the traditional practices of trading physical metal.
"A lot of companies who had sidelined the traditional physical business are now re-aligning their focus and need poeple who understand the physical market and know how to set up a hedge and manage it, " Gilley said.
"The other area where demand has markedly increased in comparison to a few years ago is marketing," she added.
As for morale in the industry, individuals' confidence in their future is seemingly undimmed.
"Just because I've lost my job doesn't mean I'm going to sell my Porsche," one trader said.

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

New Power Hldg Sees Meeting 3Q Loss Estimate

10/19/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

PURCHASE, N.Y. -(Dow Jones)- New Power Holding Inc. (NPW) expects to meet its prior third quarter loss estimates; and said it has revised an agreement with Enron Corp. (ENE), lowering the collateral New Power must post under a master netting agreement.
In a press release Friday, New Power said the amendment to the Enron pact and cost-cutting efforts will allow the company to continue to conduct business until it secures ongoing asset-backed financing.
The company reiterated its earlier expectations of a third quarter loss of $65 million to $70 million, or $1.12 to $1.20 a share.
Analysts put the company's third quarter loss at $1.16 a share, according to Thomson Financial/First Call.
Third quarter revenue will be "slightly lower" than the $60 million to $65 million forecast in August, New Power said.

In the year-ago third quarter New Power lost $1.23 a share on revenue of $18.19 million.
The amendment to the master netting agreement with Enron North America Corp., Enron Energy Services Inc. and Enron Power Marketing Inc. affects the master cross-product netting, setoff, and security agreement, and expands through Jan. 4 the types of collateral that New Power is permitted to post to the Enron units.
Under the amended pact, the first $70 million of posted collateral must be in the form of cash, while amounts in excess of $70 million may consist of not more than $40 million of eligible receivables and inventory of New Power, valued at discounts specified in the amendment, and subject to a $25 million limit for October 2001.
Shares of New Power traded recently on the New York Stock Exchange at $1.67, up 1 cent, or 0.6%, on early composite volume of 7,900 shares. Average daily volume is 223,800 shares.
-Bill Platt; Dow Jones Newswires; 201-938-5400

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


What is the exact location (in terms of LMP) - is this a PJM east or PJM west hub ? Is it connected to NY, either Zone G or Zone J ?

 -----Original Message-----
From: 	Blair, Greg
Sent:	Monday, November 05, 2001 3:56 PM
To:	Cavazos, Brandon
Cc:	Arora, Harry
Subject:	RE: Con-Ed - Lakewood New Jersey Synthetic Peaker

Brandon and Harry:

Brandon:  I assume the pricing is at the mids.  Also, since the spread between the 1.50VOM and the 3.00VOM is so small, I'll just quote the 1.50.

Harry:  Please look at the entire email thread (to get a sense of all the metrics we're employing for this quote).  ConEd has already announced a 3x7FA peaker configuration for Lakewood, NJ.  The site is already owned by ConEd, part of an existing 230MW combined cycle plant they already own.  It's on the same transmission line (running to the south) as the Oyster Creek nuclear facility, which has a license expiration in 2009.  The existing plant is a non-merchant EWG, selling 215MW to JCP&L pusuant to a twenty-year PPA expiring in 2014.  ConEd has put out an RFP to sell 200-250MW of the peaking capacity from this planned facility.  They planned to have the unit operational by June 2002.  If we provide this synthetic toll, the plant construction would be deferred.  Let me know if we can do 350 to 500MW and let's talk about appropriate spreads above the mids.  Also, please be mindful of their desire for 8 hour mins.

Thanks

 -----Original Message-----
From: 	Cavazos, Brandon
Sent:	Monday, November 05, 2001 4:38 PM
To:	Blair, Greg
Cc:	Hiemstra, Nick
Subject:	FW: Con-Ed - Lakewood New Jersey Synthetic Peaker

Pricing as follows:
For the 3 year option:
$1.50 VOM - $1.77
$3.00 VOM - $1.69

For the 4 year option:
$1.50 VOM - $1.74
$3.00 VOM - $1.66

As always, these prices are indicative.  For a product of that size (350-500MW), I would probe the customer to find a break-even/cost of construction price, and approach Harry to get the risk premium.
Let me know how it works out,

Brandon Cavazos
Enron North America
1400 Smith Street
Houston, TX 77002
713-345-3335
brandon.cavazos@enron.com

 -----Original Message-----
From: 	Blair, Greg
Sent:	Monday, November 05, 2001 1:54 PM
To:	Cavazos, Brandon
Subject:	Con-Ed - Lakewood New Jersey Synthetic Peaker

Brandon:

Got another one!!!

What:		350-500MW Peaker
Where:		Lakewood, NJ (in PJM, about 40-50 miles south of NYC, off the Garden State 		Parkway - Look on a road atlas to get the location right for LMP pricing)
Heat Rate:	10,900
VOM:		Price it two ways ($1.50/MWh and $3.00/MWh)
Gas:		Transco Zone 6 - Non New York
Avail:		5x16, year round, day ahead dispatch w/ 8 hour minimums.
Start Date:	June '02
Term:		3 years (show me 4 years also, please)

Call me if you have questions.

Thanks much.