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Hadn't really thought about that. In each contract, counterparty reps and warrants that it physically handles each commodity on which an option is traded (tracking "trade option" regulatory language), and all r&w's are deemed repeated each time a new transaction is entered into. The law requires that on offeror have a "reasonable basis" to believe that offeree is physically handling, so traders/marketers in the ag area must be trained to not ignore obvious indications that an ag counterparty is no longer in the business of physically moving a given ag commodity. Such indications should be reported to legal department. This will be of heightened concern in the ag area. With other commodities, if the counterparty doesn't handle, or stops handling the commodity, we can always argue that we are the "offeree" and we are physically handling. Until we are physically handling ag commodities, though, we will always have to rely on the counterparty being a physical merchant in order to trade options Robert E. Bruce Senior Counsel Enron North America Corp. T (713) 345-7780 F (713) 646-3393 robert.bruce@enron.com Mark.E.Haedicke@enron.com 10/20/2000 03:15 PM To: Robert.Bruce@enron.com cc: Subject: Re: It looks good to me. How do we keep up with changes in a counterparty's business? What if it no longer physically handles a particular commodity? Mark Robert Bruce@ENRON To: Mark E Haedicke/HOU/ECT@ECT Sent by: cc: Mark Taylor/HOU/ECT@ECT Robert Subject: Bruce@ENRON 10/17/2000 06:21 PM per my voice message to you; have tried to make memo brief (See attached file: Haedicke et al 101700.doc) Robert E. Bruce Senior Counsel Enron North America Corp. T (713) 345-7780 F (713) 646-3393 robert.bruce@enron.com - Haedicke et al 101700.doc

Look like the stuff? -----Original Message----- From: JBennett [mailto:JBennett@GMSSR.com] Sent: Thursday, October 18, 2001 5:38 PM To: Jeff Dasovich (E-mail) Subject: FW: exhibt 38 Jeff -- this is the first in a series of three e-mails all of which constitute Exhibit 38 of the SDG&E proceeding. Jeanne -----Original Message----- From: Hay, James E. [mailto:JHay@sempra.com] Sent: Thursday, October 18, 2001 3:30 PM To: 'JBennett@GMSSR.com' Subject: FW: A.01-01-044 SDG&E's Updated/Rebuttal/Small Customer Testimony First Email First Email -- -----Original Message----- From: JBennett [ mailto:JBennett@GMSSR.com <mailto:JBennett@GMSSR.com> ] Sent: Thursday, October 18, 2001 3:14 PM To: 'Hay, James E.' Subject: RE: A.01-01-044 SDG&E's Updated/Rebuttal/Small Customer Testimony First Email They have not come through yet. I will let you know. Thank you. Jeanne Bennett -----Original Message----- From: Hay, James E. [ mailto:JHay@sempra.com <mailto:JHay@sempra.com> ] Sent: Thursday, October 18, 2001 3:00 PM To: 'Jbennett@gmssr.com' Subject: RE: A.01-01-044 SDG&E's Updated/Rebuttal/Small Customer Testimony First Email Ms. Bennett, please let me know if you were able to open the files in the email that I just sent to you. This filing is Exhibit 38. If you are unable to open the files, please email me and I will send them to you one at a time. .... Jim Hay Jim Hay Regulatory Project Manager Sempra Energy 101 Ash Street HQ14B San Diego, CA 92101-3017 Email - jhay@sempra.com Phone - 619-696-2141 Fax - 619-696-4027 -----Original Message----- From: Hay, James E. Sent: Thursday, October 18, 2001 2:57 PM To: 'Jbennett@gmssr.com' Subject: FW: A.01-01-044 SDG&E's Updated/Rebuttal/Small Customer Testimony First Email << Message: FW: Reply of SDG&E to ALJ Wetzell's Ruling of August 15, 2001 in A.00-10-045/A.01-01-044 >> << Message: FW: Second E-Mail: Reply of SDG&E to ALJ Wetzell's Ruling of August 15, 2001 in A.00-10-045/A.01-01-044 >> << Message: FW: Third E-Mail: Reply of SDG&E to ALJ Wetzell's Ruling of August 15, 2001 in A.00-10-045/A.01-01-044 >> -----Original Message----- From: Van Wagenen, Lynn G. Sent: Thursday, October 18, 2001 2:33 PM To: Cc: Melville, Keith W.; Hay, James E. Subject: FW: A.01-01-044 SDG&E's Updated/Rebuttal/Small Customer Testimony Jeanne, I understand from Keith Melville that you were looking for various pieces of SDG&E's May 18, 2001 filing in our Revenue Shortfall Surcharge Application (A.00-10-045/A.01-01-044). I have included in the attached note the entire SDG&E filing. Hopefully, you will be able to find in the package the information/data you are seeking. Recognize that there were some corrections made on the stand by some of the witnesses. I would recommend that you check the transcript for those corrections. Also, Keith tells me you also wanted a copy of Exhibit #38. Jim Hay will send it to you in a separate e-mail. Please let us know, if you need further documents in this proceeding. Have a great day! Lynn G, Van Wagenen Lynn G. Van Wagenen Sempra Energy - San Diego Regulatory Case Management (619) 696-4055 FAX - Ext. 4027 E-Mail: LVanWagenen@sempra.com -----Original Message----- From: Evans, Darleen Sent: Friday, May 18, 2001 4:35 PM To: bfinkelstein@turn.org; bishop@jrwood.com; Brill, Thomas; bsl@cpuc.ca.gov; chiefskip@aol.com; christine.costa@sce.com; cjw5@pge.com; cwrmccv@worldnet.att.net; cxw@cpuc.ca.gov; DavoodiKR@efaches.navfac.navy.mil; dlf@cpuc.ca.gov; douglass@arterhadden.com; dpritchard@mofo.com; DVRONROCK@ADPLAW.COM; edf@cpuc.ca.gov; ek@a-klaw.com; epoole@adplaw.com; fmo@sdcity.sannet.gov; freedman@turn.org; furutanj@efawest.navfac.navy.mil; jbennett@gmssr.com; jguzman@nossaman.com; jleslie@luce.com; jmalkin@orrick.com; jsqueri@gmssr.com; jtachera@energy.state.ca.us; jweil@aglet.org; mbrubaker@consultbai.com; mdjoseph@adamsbroadwell.com; Melville, Keith; mjaske@energy.state.ca.us; mshames@ucan.org; msw@cpuc.ca.gov; mv1@cpuc.ca.gov; pbray@newpower.com; raw@cpuc.ca.gov; riald@kindermorgan.com; rliebert@cfbf.com; rmccann@cal.net; sfc@cpuc.ca.gov; sro@cpuc.ca.gov; ssmyers@worldnet.att.net; tknox@klalawfirm.com; tsmegal@calwater.com; uwuaregion5@earthlink.net Cc: Croyle, David; Derbas, Mohamed; Evans, Darleen; Fong, Ed; Hansen, Douglas; Resley, Robert; Rossi, Rosalinda; Saxe, William; Schavrien, Lee; Schneider, Michael; Swanson, Rich Subject: A.01-01-044 SDG&E's Updated/Rebuttal/Small Customer Testimony TESTIMONY: << File: A.01-01-044 Croyle PD(v1).DOC >> << File: A.01-01-044 Croyle Rebuttal(v1).DOC >> << File: A.01-01-044 Croyle Updated PDT(v1).DOC >> << File: A.01-01-044 Derbas Rebuttal(v1).DOC >> << File: A.01-01-044 Derbas PD(v1).DOC >> << File: A.01-01-044 Derbas Updated PDT(v1).DOC >> << File: A.01-01-044 Fong Updated PDT(v1).DOC >> << File: A.01-01-044 Fong Rebuttal(v1).DOC >> << File: A.01-01-044 Fong PD(v1).DOC >> _____________________________ ATTACHMENTS/TABLES: << File: Bill Impacts (large).xls >> << File: Bill Impacts (small).xls >> << File: SDGE.RD.Template5-18(Large) DecisionTemp1.XLS >> << File: SDGE.RD.Template5-18(Large)FINAL Update2.XLS >> << File: SDGE.RD.Template5-18(SMALL)DecisionTemp1.xls >> << File: SDGE.RD.Template5-18(SMALL)FINAL1.xls >> __________________________________ Darleen Evans Sempra Energy - Law Department 619-699-5056 devans@sempra.com --------- Inline attachment follows --------- From: <JHay@sempra.com> To: Van Wagenen, Lynn G. <LVanWagenen@sempra.com> Date: Friday, August 17, 2001 5:41:53 GMT Subject: -----Original Message----- From: Hay, James E. Sent: Friday, August 17, 2001 9:24 AM To: Reed, Debra L. Subject: FW: Reply of SDG&E to ALJ Wetzell's Ruling of August 15, 2001 in A.00-10-045/A.01-01-044 I will add you to next emails. -----Original Message----- From: Hay, James E. Sent: Friday, August 17, 2001 9:21 AM To: Parrott, Jeff; Trace, Jeffrey; Melville, Keith W.; Deremer, Kenneth; Schavrien, Lee; Savage, Marie; Schneider, Michael M.; Strong, Michael G.; Derbas, Mohamed; Szymanski, Paul; Swanson, Rich; Resley, Robert J.; Jack, Stephen J.; Rahon, Steve; Garcia, Sue E.; Weinmeister, Sue; Roberts, Ted; Farrelly, Terry C.; Brill, Thomas R.; Saxe, William; Kline, Doug; Farmer, Laura; Larson, Art; Fair, Pam; Avery, James; Overturf, Billie J.; John, Fred E.; Reed, William Subject: FW: Reply of SDG&E to ALJ Wetzell's Ruling of August 15, 2001 in A.00-10-045/A.01-01-044 Attached is the first of three emails with SDG&E's filing updating the DWR revenue requirements. The following is an excerpt from our pleading. In the next email are scenarios that show DWR surcharge (cents per kWh for system, large customers, and small customers) under assumptions requested by the ALJ. Thanks especially to Ed Fong, Mohamed Derbas, Bill Saxe, Mike Strong, Keith Melville, and Jeff Parrot for key assistance in getting this filing out in one-day. Based on this filing, the Commission may (we have no Proposed Decision yet) rule as soon as August 23 on an increase to SDG&E rates of approximately 3-cents to recover the updated DWR revenue requirements. If you have questions, please contact me, Lynn Van Wagenen, or Keith Melville. Excerpt of SDG&E pleading: On August 15, 2001, Administrative Law Judge (ALJ) Wetzell issued an "ADMINISTRATIVE LAW JUDGE'S RULING ON THE AUGUST 7, 2001 REVENUE REQUIREMENT OF THE DEPARTMENT OF WATER RESOURCES" directing San Diego Gas & Electric Company (SDG&E) to produce updated estimates, including supporting analyses, of the system average electric rate increases required based on the revised revenue requirements determined by the Department of Water Resources' (DWR), as set forth in the August 7, 2001 DWR communication to the California Public Utilities Commission. -----Original Message----- From: Hay, James E. Sent: Friday, August 17, 2001 9:00 AM To: Mueller, Michelle; Fong, Ed; Schavrien, Lee; Melville, Keith W. Subject: FW: Reply of SDG&E to ALJ Wetzell's Ruling of August 15, 2001 in A.00-10-045/A.01-01-044 This email contains the pleading, assumptions, and a summary. The summary is the accurate updated version. -----Original Message----- From: Ruiz, Annie Sent: Friday, August 17, 2001 8:31 AM To: ayk@cpuc.ca.gov; bfinkelstein@turn.org; bishop@jrwood.com; Brill, Thomas; bsl@cpuc.ca.gov; chiefskip@aol.com; christine.costa@sce.com; cjw5@pge.com; cwrmccv@worldnet.att.net; DavoodiKR@efaches.navfac.navy.mil; dlf@cpuc.ca.gov; douglass@energyattorney.com; DVRONROCK@ADPLAW.COM; edf@cpuc.ca.gov; ek@a-klaw.com; epoole@adplaw.com; fmo@sdcity.sannet.gov; freedman@turn.org; furutanj@efawest.navfac.navy.mil; jbennett@gmssr.com; jguzman@nossaman.com; jleslie@luce.com; jmalkin@orrick.com; jsqueri@gmssr.com; jtachera@energy.state.ca.us; jweil@aglet.org; mbrubaker@consultbai.com; mdjoseph@adamsbroadwell.com; Melville, Keith; mjaske@energy.state.ca.us; mshames@ucan.org; msw@cpuc.ca.gov; mv1@cpuc.ca.gov; mzr@cpuc.ca.gov; pbray@newpower.com; raw@cpuc.ca.gov; rax@cpuc.ca.gov; riald@kindermorgan.com; rliebert@cfbf.com; sfc@cpuc.ca.gov; sro@cpuc.ca.gov; ssmyers@worldnet.att.net; tknox@klalawfirm.com; tsmegal@calwater.com; uwuaregion5@earthlink.net Cc: Hay, James E. Subject: Reply of SDG&E to ALJ Wetzell's Ruling of August 15, 2001 in A.00-10-045/A.01-01-044 This and the following two e-mails contain the updated information requested by ALJ Wetzell in his Ruling dated August 15, 2001. The documents are spread out over three e-mails because they consist primarily of spreadsheets. In this first e-mail SDG&E attaches its pleading responding to ALJ Wetzell's Ruling along with two documents providing the assumptions SDG&E used for its updates to Exhibits 14 and 18 and a document providing a summary of all of SDG&E's updated analyses. In the second e-mail SDG&E will provide its updates to Exhibit 14 and in the third e-mail SDG&E will provide its updates to Exhibit 18. Annie Ruiz Assistant to Jeffrey M. Parrott Sempra Energy Law Department HQ-13 Tel: 619-696-4903 Fax: 619-699-5027 E-mail: aruiz@sempra.com <<SDG&E Reply re Wetzel(v1).DOC>> <<Exhibit 14 Assumptions.doc>> <<Exhibit 18 Assumptions.doc>> Updated summary. <<DWR Rate Increase Summary.xls>>

Content-Transfer-Encoding: quoted-printable Date: Thu, 15 Mar 2001 08:07:40 -0600 From: "Tracey Bradley" <tbradley@bracepatt.com> To: "Paul Fox" <pfox@bracepatt.com> Cc: "Andrea Settanni" <asettanni@bracepatt.com>, "Charles Ingebretson" <cingebretson@bracepatt.com>, "Charles Shoneman" <cshoneman@bracepatt.com>, "Deanna King" <dking@bracepatt.com>, "Jeffrey Watkiss" <dwatkiss@bracepatt.com>, "Gene Godley" <ggodley@bracepatt.com>, "Kimberly Curry" <kcurry@bracepatt.com>, "Michael Pate" <mpate@bracepatt.com>, "Ronald Carroll" <rcarroll@bracepatt.com> Subject: Reuters - US Senate rejects California utility bankruptcy measure Mime-Version: 1.0 Content-Type: text/plain; charset=US-ASCII Content-Disposition: inline In case you haven't already heard about this . . . Wednesday March 14, 12:22 pm Eastern Time US Senate rejects California utility bankruptcy measure By Patrick Connole WASHINGTON, March 14 (Reuters) - The U.S. Senate on Wednesday rejected a bid to force California utility companies to repay power generators for electricity they bought under a federal government sales order, even if utilities go bankrupt. In a motion on the Senate floor, lawmakers killed an amendment to a broader bankruptcy reform bill that opponents said was a dangerous proposal that would have opened the door to involuntary bankruptcy filings by troubled California utilities. The utilities in question are PG&E Corp.'s (NYSE:PCG - news) Pacific Gas & Electric and Edison International's (NYSE:EIX - news) Southern California Edison. The amendment was sponsored by Oregon Democrat Sen. Ron Wyden, Montana Democrat Sen. Max Baucus and Oregon Republican Sen. Gordon Smith. Proponents said the measure would have protected the customers of the federally-owned Bonneville Power Administration and other Northwest utilities from unfair rate increases due to the California energy crisis. ``I don't think it's fair for consumers in other Western states to get caught holding the bag if California utilities take our power and then run into bankruptcy court to avoid their debts,'' Wyden said. ``The Northwest has been more than a good neighbor to California during this crisis,'' he said. Interestingly, the California Senate delegation was split on the matter. Democrat Dianne Feinstein opposed the amendment, while fellow Democrat Barbara Boxer supported it. Feinstein called the proposal a ``dangerous amendment'' that would create two classes of creditors and ``probably force an involuntary bankruptcy.'' The broader bankruptcy reform bill is expected to be approved by the Senate by the end of the week. Separately, talks between California and its three investor owned utilities on a deal under which the state might buy their transmission assets continued this week with no deal in sight. The state is negotiating with PG&E and Edison, along with Sempra Energy (NYSE:SRE - news) unit San Diego Gas and Electric. The deals are aimed mainly at pumping money into PG&E and SoCal Edison to keep them out of bankruptcy after they recorded about $13 billion in red ink since last spring, paying sky-high prices for power in the wholesale market. PG&E and SoCal Edison, under the terms of the state's disastrous experiment with market deregulation, have been able to pass on to their retail customers only a fraction of their power purchase costs.

>From: owner-ucb_police_news@uclink4.berkeley.edu >Date: Fri, 13 Oct 2000 14:35:58 -0700 (PDT) >X-Authentication-Warning: uclink4.berkeley.edu: majordom set sender to >owner-ucb_police_news@listlink.berkeley.edu using -f > >---------------------------------- >CRIME ALERT--Prowling/Trespass >October 13, 2000 >Clark-Kerr Campus, Building #3 >Sender: owner-ucb_police_news@listlink.berkeley.edu >Precedence: bulk >Reply-To: ucpolice@uclink4.berkeley.edu > >On Wednesday, October 12, 2000 at about 8:41 am, a male suspect >prowled a suite at CKC occupied by three female students. A second >case occurred on Thursday, October 13 at about 10:30 am. The same >person is believed to be responsible for both cases. > >The victims were female UCB students. On Wednesday morning, a >resident of CKC-3 awakened and discovered the suspect standing in her >room. The suspect fled when the victim noticed his presence. It is >unknown how the suspect gained entry into the victim's suite. > >This morning, a resident of the same suite noticed a suspect watching >her exercise through the open door of her suite. The suspect fled >and tried to hide when the victim attempted to confront him. > >The suspect was described as a white male adult: > >28-30 years old, about 6'00" tall, about 150-160 pounds, medium >build, dark brown collar length hair, clean shaven clean cut, wearing >a blue checkered long sleeve shirt and khaki shorts. > >This suspect is possibly in possession of keys for CKC-3 or other buildings. > >Anyone with information about this case should immediately call the >University of California Police Department. Detective Kenneth Moody >at 642-3184 or Sergeant Michael Shipman of the Residential Security >Unit. > >As with any emergency situation, if you see suspicious activity, call 9-1-1. > >Victoria Harrison >Chief of Police >University of California Police Department > >****************************************************************** >This alert is distributed as a public service to the University >community and in compliance with the Jeanne Clery Act of 1998. >****************************************************************** > >=================================== >An Adobe Portable Document Format (PDF) version of this alert is available >for download and posting at: > >http://public-safety.berkeley.edu/police/ca10132000.html > >Directions for subscribing to ucb_police_news are available at: >http://public-safety.berkeley.edu/police/newselist.html > >Information on Crime Prevention Strategies can be found at: >http://public-safety.berkeley.edu/csp/cspguide.html >=================================== > > > >Prepared by: >Community Outreach & Emergency Services Division >ucpolice@uclink.berkeley.edu >http://www.berkeley.edu/ucpolice > >This alert is distributed as a public service >to the University community and in compliance >with the Clery Act of 1998 >(formerly the Student Right to Know Act of 1990). >------------------------------------------------------

I think this was sent to the wrong Patricia Anderson -----Original Message----- From: Wallis, Janet H. Sent: Wednesday, April 11, 2001 11:08 AM To: Anderson, Patricia Cc: Hyvl, Dan Subject: SWAP Okay, here is the deal DATE VOL SWAP PRICE ADDER TOTAL Jul 01 - Oct 01 525 a day $5.645 $.19 $5.835 Nov 01 875 a day $5.74 $.19 $5.93 Dec 01 - Feb 02 1800 a day $5.81 $.19 $6.00 Mar 02 - June 02 525 a day $ 4.905 $.19 $5.095

The report named: <http://trv.dev.corp.enron.com/linkFromExcel.asp?report_cd=7&report_name =Intramonth+Texas+P/L&category_cd=4&category_name=TEXAS&toc_hide=1&sTV1= 4&TV1Exp=Y&current_efct_date=06/08/2001> Intramonth Texas P/L, published as of 06/08/2001 is now available for viewing on the website. (Revision: 2)

<<prel_epmi_salesjlo.xls>> Here are the BPA Sales for May.

Eric: I spoke too fast. I don't have a "sample" Annex B-1 (Collateral and Exposure Provisions) but will send the customized version this evening. Sara Sara Shackleton Enron North America Corp. 1400 Smith Street, EB 3801a Houston, Texas 77002 713-853-5620 (phone) 713-646-3490 (fax) sara.shackleton@enron.com EMoser@milbank.com 01/24/2001 03:59 PM To: sara.shackleton@enron.com cc: Subject: FW: A new fax has arrived from 212 677 5850 (Part 1 of 1) -----Original Message----- From:?? RightFAX E-mail Gateway Sent:?? Wednesday, January 24, 2001 10:41 AM To:???? Moser, Eric K. Subject:??????? A new fax has arrived from 212 677 5850 (Part 1 of 1) Time: 1/24/01 10:36:22 AM Received from remote ID: 212 677 5850 Inbound user ID EMOSER, routing code 5388 Page record: 1 - 8 Elapsed time: 03:32 on channel 13 Fax Images: [double-click on image to view page(s)] <<OCR Text>> This e-mail message may contain legally privileged and/or confidential information. If you are not the intended recipient(s), or the employee or agent responsible for delivery of this message to the intended recipient(s), you are hereby notified that any dissemination, distribution or copying of this e-mail message is strictly prohibited. If you have received this message in error, please immediately notify the sender and delete this e-mail message from your computer. - AFAXNY004592E.PDF

Not yet--I'll try this wkend. thanks. DF From: Jean McFarland on 04/14/2000 07:51 AM To: Drew Fossum/ET&S/Enron@ENRON cc: Subject: Steve Harris or Steve Harris -- Notes Training Tip Did you try this on your laptop? ---------------------- Forwarded by Jean McFarland/Corp/Enron on 04/14/2000 07:49 AM --------------------------- From: Jean McFarland 04/10/2000 01:31 PM To: Drew Fossum/ET&S/Enron@ENRON, Martha Benner/ET&S/Enron@ENRON, Ann Smith/ET&S/Enron@ENRON cc: Subject: Steve Harris or Steve Harris -- Notes Training Tip Drew/Martha/Ann-- Please try this for me. Any comments/suggestions are welcome! Thanks, Jean ***************************************** Forcing Names in your Personal Address Book This message explains how to fix the "sending to the wrong Steve Harris" problem. The only way after implementing this change to send to the Steve Harris/ECT name is by going directly to the ECT Address Book in Notes. If you have any questions please call. Thanks, Jean x7173 Add the correct Steve Harris (Steven Harris/ET&S/Enron) to your Notes Personal Address Book (PAB). See below for instructions on adding a Name to your PAB Open your PAB and open the Steven Harris card, click on the "More Info" section Find the line Full User Name: Add "Steve Harris" (please note-Steven Harris/ET&S/Enron should already be there) Click on the Save and Close button Because Notes searches your Personal Address Book before Enron's Address Book all message regardless if you type Steven Harris or Steve Harris will be sent to Steven Harris/ET&S/Enron. How to add a name to your Personal Address Book. Go to the Notes Workspace Screen and double click on the Enron's Address Book On the left hand side make sure "People" is selected Click on the Right had side and type "Harris" and select Steven Harris/ET&S/Enron Click on the "Copy to Personal Address Book" bar, click on "okay" and "X" to close the Window.

Move Request number 10972 has been submitted to the move team for processing.

I can't play this weekend, but freedom will soon be upon me!!! >From: Frthis@aol.com >To: bwdunlavy@yahoo.com, Dutch.Quigley@enron.com, Wolphguy@aol.com, >John_Riches@msn.com, klyn@pdq.net, markm@cajunusa.com, >jramirez@othon.com, SIVA66@mail.ev1.net, Rs1119@aol.com >Subject: Golf in BFE! >Date: Fri, 9 Nov 2001 15:15:07 EST > >How many players do we have for Sunday? I have > >Mark "I score a lot but never win" >Joe "Expansion Team" >Richard "I have the cutest baby" >Dutch "I will soon be working for Dynegy" >Ricardo "I'll name my UHFFFFL Team after all my sexual conquests........ >how >about 2700 Huevos?" >Kevin "How can you tell when Kevin is bitching? Answer: His mouth is >open" >and Me > >Did I forget someone? If I didn't, then we have 7. Is Jerry going to >play? >How about John? I think I might be able to beat John now that he is still >in >rehab. Scratch that, who am I kidding? >Who will be number eight? _________________________________________________________________ Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp

Arena Brown Bag Come learn more about the proposed arena for downtown Houston at the Brown Bag Lunch on Monday, October 23 Lunch at the Hyatt Regency Imperial Ballroom from noon to 1:00 p.m. Enron Chairman and CEO Ken Lay, former Chairman of Reliant Energy Don Jordon, former Rockets star Clyde Drexler, and Carroll Dawson, General Manager for the Rockets and Comets, will speak at the lunch and answer questions from the audience. Seating is limited, and tickets can be picked up in Community Relations at EB 406 from Tuesday, October 17 to Friday, October 20. Alley Theatre Join the Alley Theatre Young Professionals group and enjoy opportunities to attend first-rate performances, socialize Membership with fellow art enthusiasts, and mingle at festive pre- and post-performance mixers! Help pave the way for the Alley Theatre's future success and receive a special subscription to cutting-edge productions and as well as access to intimate performance space. Single and couple rates are available. For more information, contact Vicki Sanders of the Alley Theater at 713-228-9341 or vickis@alleytheatre.org. UH Brown Bag The Cougars basketball season is fast approaching, so come attend the Brown Bag Lunch at EB 5C2 from 11:30-12:30. featuring Joe Curl, women's basketball coach, as well as several players. Mark your calendars for this informal question-and-answer session. To attend, RSVP to Merlyn Fance at ext. 30411 as soon as possible. Howl-oween Party! Bring out your dogs for the 2nd Annual Enron Dog Day Afternoon at the Harris County Animal Center on Saturday, October 28 from 10:00 a.m. to 2:00 p.m. Test your dog's temperament and Canine Good Citizen Degree. There will be an agility demonstration, as well as a Howl-oween costume contest. Cost is $5 per dog, and lunch will be provided. Call Laurel Boatright at ext. 35097 to RSVP and for directions. Chinese Paintings Are you an art lover? Come to the Continental Center I Gallery (Continental Building, 1600 Smith, 2nd floor) and enjoy Show Chengyi Li, an artist from China, and his selection of personal works of Chinese art. The exhibit will run from October 30 to December 1, and Enron employees receive a 10% discount. For more information, contact Maggie Li at ext. 56011 Win a BMW Z3! Log onto Yahoo! Auctions at auctions.yahoo.com and have the chance to win a 2000 BMW Z3 Convertible Roadster! The car is complete with Major League Baseball team logos, as well as autographs from stars such as Jose Lima, Craig Biggio, Jeff Bagwell, Sammy Sosa, Mike Piazza, and more! Proceeds from the auction will benefit Hank Aaron's Chasing the Dream Foundation, SEARCH, The Sunshine Kids, and MLB's Baseball Assistance Team (B.A.T.) JDF Cyber Help support the Juvenile Diabetes Foundation and mark these dates on your calendar! The JDF Cyber Auction starts Auction on October 25, 8:00 a.m.and ends October 26, 4:00 p.m. For more information, contact Sophie Patel at ext. 35055 or Eddie Sera at ext. 30480. Run Against Drugs Join the Enron Running Club at the Run Against Drugs 5K and 1 Mile Kids' Run on Saturday, October 21. This event 5K benefits the Local, State, and Federal Law Enforcement Officers and Survivors' Benefit Fund. If you're interested in running or volunteering your time, please contact Cindy Richardson at ext. 34770, or click here for more information. Arena Initiatives If you are interested in volunteering or assisting with various arena activities in the upcoming months, contact Laurel Boatright at ext. 35097 for more information. . Sunshine Kids Day Join Mark Koenig, Executive Vice President of Investor Relations, for a very rewarding and meaningful day with at Astroworld the Sunshine Kids! Enron is proud to host more than 100 children on Saturday, October 28 at Astroworld. Sunshine Kids is dedicated to providing activities for children with cancer and volunteers are needed for companionship throughout the day. To volunteer, contact Joannie Williamson at ext. 36021. Carnival Hands Join Rob Walls, Enron's Managing Director & Deputy General Counsel, as a volunteer at the Brookwood Community's Needed 15th Anniversary Celebration on November 4! The Brookwood Community is a non-profit, educational, residential work facility for adultswith functional disabilities. Volunteers are needed to help the staff with games, food booths, karaoke and face painting, as well as event set-up and tear down. If you're interested, contact Sylvia Patton at 281-375-2100 or click on www.brookwoodcommunity.org. October is National The Texas Gulf Coast Chapter of the Lupus Foundation is seeking walkers, volunteers, and/or contributors for the Lupus Awareness "Many Faces of Lupus Walk" on October 21. Come help raise awareness for this disease which attacks up to Month two million Americans, 90% of which are women. For more information, contact Mary Poorman at ext. 35251. Help Knock Out The Juvenile Diabetes Foundation is seeking walkers, team leaders and volunteers to participate in their annual Diabetes! "Walk For the Cure" scheduled for November 5. For more information, contact Cathy Phillips at ext. 36898. Flu Immunization The Center for Disease Control in Atlanta has reported that the availability of this season's flu vaccine may be Notice delayed. The Health Center will notify employees when the vaccine arrives but encourages employees to innoculate themselves on their own, as there may not be enough supplies for everyone's vaccination. CPR/First Aid CPR/First Aid Certification is scheduled on Tuesday, October 24, from 1:00 p.m. to 5:00 p.m. in Conference Room Certification Room 47C2. The cost is $10 for employees and contractors. Call the Health Center at ext. 36100 to register. Adoption LifeWorks - Adoption Resources consultants are available to provide day, evening and weekend counseling. This is Resources a confidential service available to Enron employees. For information about adoption call 800-635-0606 or visit their website at www.lifeworks.com (enter I.D.: enron, password: 2000). Each year, Enron gives back 1% or its pretax earnings to the communities we serve!

See attached Loss/Limit Notifications: None - DPR 28.xls - Power Report 28.xls - Gas Report 28.xls

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thanks man, it was good to talk to you too. -----Original Message----- From: Benjamin.Rogers@enron.com [mailto:Benjamin.Rogers@enron.com] Sent: Wednesday, September 27, 2000 8:37 AM To: dmartin@imperialcapital.com Subject: Stabell Here you go!? Again, good to hear from you. Ben ---------------------- Forwarded by Benjamin Rogers/HOU/ECT on 09/27/2000 10:35 AM --------------------------- Brandon Neff@EES 09/27/2000 09:23 AM To:?? Benjamin Rogers/HOU/ECT@ECT cc: Subject:? Stabell ---------------------- Forwarded by Brandon Neff/HOU/EES on 09/27/2000 09:23 AM --------------------------- TJ Rylander@ENRON 09/27/2000 08:31 AM To:?? Brandon Neff/HOU/EES@EES cc: Subject:? Stabell jstabell@merlonpet.com

=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D TH= E MOTLEY FOOL =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D INVESTING BASICS =20 Tuesday, November 20, 2001 benjamin.rogers@enron.com =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D IN THIS ISSUE --------------------- - Q&A: Is Insider Selling Significant? - Q&A: What Does "Insured by FDIC" Mean? - LESSON: Options 101 =09 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D SPONSORED BY: Ameritrade Ameritrade brings you the market's most valuable commodity: Knowledge. Get a free 6-month Morningstar.com=AE Premium Membership when you open an account. http://www.ameritrade.com/o.cgi?a=3Dxbx&o=3Drkg&p=3D/html/mstar.fhtml =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D YOUR QUESTIONS ANSWERED=20 Q. Should an investor be concerned if one or more officers of a=20 company sell shares of its stock that they own?=20 A. Although it may look like a red flag, it isn't necessarily=20 one. Many executives today receive a large part of their=20 compensation in stock options. So when they have to buy a house=20 or make a college tuition payment, they sell some shares. They=20 may also be trying to diversify their investments, not wanting=20 to have too much of their portfolio in one company.=20 On the other hand, one insider (or many insiders) selling might=20 indeed signal a loss of faith in the company. If you're worried,=20 you might want to take a closer look at the company's recent=20 performance. Perhaps fire up your computer and see what people=20 interested in the company are saying about it online, on message=20 boards.=20 Q. What does "insured by FDIC" mean, and what does it NOT=20 insure?=20 A. The Federal Deposit Insurance Corp. (FDIC) insures our=20 traditional checking, savings and money market accounts (as well=20 as CDs) held at banks and thrifts for up to $100,000. Note,=20 though, that the FDIC does not cover stocks, bonds, mutual=20 funds, life insurance policies, annuities and the like. For=20 these, check with your financial service company to see what=20 kind of insurance may be provided.=20 Learn more about the FDIC at their website. To make sure you are=20 stashing your short-term cash in the most profitable place,=20 check out our Savings Center.=20 http://www.fdic.gov/ http://www.fool.com/savings/savings.htm ----------------------------------------------------------------- THIS WEEK'S LESSON=20 OPTIONS 101 Imagine you want to invest in Legume Gas Works (ticker: BEANZ).=20 You can buy shares the usual way -- or you can buy options.=20 Here's an introduction to options.=20 There are two main types: calls and puts. A call gives you the=20 right to buy a set amount of shares at a set price within a=20 certain period of time (often just a few months). For this=20 right, you pay a price premium. Puts are similar, but give you=20 the right to sell shares.=20 If Legume is selling for $50 per share and you expect it to=20 rise, you could buy "October $55" call options for it. Let's say=20 you snap up calls to buy 100 shares, for $6 each, or a total of=20 $600. If just before your options expire Legume is selling for=20 $65 per share, you can exercise your options and buy 100 shares=20 for $5,500. Then you can keep them or sell them for $6,500.=20 If you sell, you make a $1,000 profit, right? Nope. You paid=20 $600, remember? So your profit is down to $400 -- less, when you=20 account for trading commissions.=20 Options are risky. If Legume stays at $55 or falls, your $600=20 would be entirely lost. It has to top $61 per share -- $55 plus=20 $6 -- by October for you to profit.=20 Some folks like options because of the leverage they offer. They=20 point out that if you only have $1,000, you can only buy 20=20 shares of a $50 stock. Alternatively, that $1,000 could buy many=20 more options tied to hundreds of shares of stock. True enough.=20 With options, though, timing is critical. If things don't go=20 your way in a short-term time frame, your option will expire=20 worthless.=20 Most options expire unexercised and worthless. (Those most=20 likely to profit from options are the ones who "write" or sell=20 the options.) That's because options are really about buying=20 time, not stocks. If you're sure that Legume's stock will rise,=20 you're probably best off buying its stock. Then if it doesn't=20 behave as you expected it to, you can either sell the shares or=20 hang on patiently.=20 Options are not for beginning investors, and even more advanced=20 investors might consider steering clear.=20 You can read more about options at this Motley Fool FAQ. http://www.fool.com/FoolFAQ/foolfaq0055.htm =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D SPONSORED BY: Ameritrade Ameritrade brings you the market's most valuable commodity: Knowledge. Get a free 6-month Morningstar.com=AE Premium Membership when you open an account. http://www.ameritrade.com/o.cgi?a=3Dxbx&o=3Drkg&p=3D/html/mstar.fhtml =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D My Portfolio: http://quote.fool.com/portfolios My Discussion Boards: http://boards.fool.com/favoriteboards.asp WANNA TAKE THE SHORTCUT? Check out our new Crash Courses, the fastest way to get your finances in order. Get results in less than an hour, for just $10. Try one today! http://www.fool.com/seminars/ccportal.htm?ref=3Dem_ibtxt PERKS FOR FOOLS ONLY Get free stuff and special offers, just for you! http://www.fool.com/community/mbc/mbc.asp?source=3Demibtxt =20 CUSTOMER SERVICE Ask our staff for help with email delivery problems. http://boards.fool.com/messages.asp?id=3D1010026000000000 =20 UNSUBSCRIBE Here's how to unsubscribe or change your settings. http://www.fool.com/community/freemail/freemaillogin.asp?email=3Dbenjamin.r= ogers@enron.com _________________________________________________________________ Copyright (c) 1995-2001 The Motley Fool. All rights reserved. Legal Information: http://www.fool.com/help/FoolMarks.htm MsgId: msg-9745-2001-11-20_16-50-04-6060412_5_Plain_MessageAddress.msg-16:5= 1:11(11-20-2001) X-Version: mailer-sender-master,v 1.84=20 X-Version: mailer-sender-daemon,v 1.84=20 Message-Recipient: benjamin.rogers@enron.com

1 of 2 ---------------------- Forwarded by Kay Mann/Corp/Enron on 12/14/2000 10:44 AM --------------------------- lee.johnson@ss.ps.ge.com on 12/09/2000 11:32:23 AM To: peterthompson@akllp.com, kay.mann@enron.com, john.r.ayres@enron.com cc: lee.johnson@ss.ps.ge.com, kent.shoemaker@ae.ge.com, Cheryl.Lipshutz@enron.com, roseann.engeldorf@enron.com, Brett.R.Wiggs@enron.com, Ben.Jacoby@enron.com, paulpipitone@akllp.com, robtaylor@akllp.com, chriscobb@akllp.com Subject: RE: Enron South America Break-Out Agreement Peter/Kay, Attached is revised ESA Facility Agreement. This includes the Optional Electric Output Guarantee for the Brazil site conditions. Since the spread between the 8 unit average guarantee and the single unit is greater than in the base contract the LD sample calc needed some work, which I took care of. Kay/Kent, I also took a swipe at the 17.4 Termination language rework. See if I what I came up with works...if so, we can use on all other Facility Agreements. I've added John Ayres to distribution. John and I will be reviewing the contract Monday AM at 8:30 in his office. Kay, it would be good if you could join us ...as we're in the home stretch. Also, can you send Peter the remaining Exhibits he requested (B-1 and H-2). thanks, Lee -----Original Message----- From: Thompson, Peter J. [mailto:peterthompson@akllp.com] Sent: Friday, December 08, 2000 10:22 AM To: Kay Mann (E-mail) Cc: Lee. Johnson (E-mail); Kent. Shoemaker (E-mail); Cheryl. Lipshutz (E-mail); Roseann Engeldorf (E-mail); Brett. R. Wiggs (E-mail); Ben. Jacoby (E-mail); Pipitone, Paul; Taylor, Rob; Cobb, Chris Subject: Enron South America Break-Out Agreement Attached please find a clean and blackline of the latest draft of the Enron South America Break-Out Agreement. The only changes made to this version is the addition of today's date and the 72/25 split of Change Order 3 in Section 6.2. We are still missing the Agreement Reference in section 6.7.1. We haven't made any changes to the exhibits since the last time they were circulated. I will pull them out of our Houston database and circulate them shortly. <<Enron South America Turbine Agreement (version 4 to 5).DOC>> <<ESA Break-out Agreement Draft of 12/8/00.DOC>> - Enron South America Turbine Agreement (version 4 to 5)_GEredline120900.DOC

mulong wang <mlwang@uts.cc.utexas.edu> on 04/24/2001 10:58:43 AM To: <Elena.Chilkina@enron.com> cc: Subject: Re: Weather and energy price Data Hello, Elena: Thank you very much for your data. I sent an email to FT but had no response so far. As soon as I got their permission I will let you know. Have a great day! Mulong On Thu, 19 Apr 2001 Elena.Chilkina@enron.com wrote: > > Mulong, > > Please find attached a file with Henry Hub natural gas prices. The data > starts from 1995 and given on the daily basis, please let us know when we > can proceed with electricity prices. > > Sincerely, > Elena Chilkina > > (See attached file: HenryHub.xls) > > > > > > > Vince J Kaminski@ECT > 04/16/2001 08:19 AM > > To: mulong wang <mlwang@uts.cc.utexas.edu> @ ENRON > cc: Vince J Kaminski/HOU/ECT@ECT, Elena Chilkina/Corp/Enron@Enron, > macminnr@uts.cc.utexas.edu > > Subject: Re: Weather and energy price Data (Document link: Elena > Chilkina) > > Mulong, > > We shall send you natural gas Henry Hub prices right away. > Please look at the last winter and the winter of > 95/96. > > We shall prepare for you the electricity price > information (Cinergy, Cobb and Palo Verde) but > you have to approach FT (the publishers of > Megawatts Daily, a newsletter that produces the price > index we recommend using) and request the permision > to use the data. We are not allowed to distribute > this information. > > Please, explain that this is for academic research and that > we can produce the time series for you, > conditional on the permission from the publishers > of Megawatts Daily. > > Vince Kaminski > > > > mulong wang <mlwang@uts.cc.utexas.edu> on 04/15/2001 03:43:26 AM > > To: vkamins@ect.enron.com > cc: Richard MacMinn <macminnr@uts.cc.utexas.edu> > Subject: Weather and energy price Data > > > Dear Dr. Kaminski: > > I am a PhD Candidate under the supervision of Drs. Richard MacMinn and > Patrick Brockett. I am now working on my dissertation which is focused on > the weather derivatives and credit derivatives. > > Could you kindly please offer me some real weather data information about > the price peak or plummet because of the weather conditions? > > The past winter of 2000 was very cold nationwide, and there may be a > significant price jump for natural gas or electricity. Could you > please offer me some energy price data during that time period? > > Your kind assistance will be highly appreciated and have a great day! > > Mulong > > > > > > > > > > >

Is there anything that I can do to help you and Jo? Tyler has school on Tuesdays and Thursdays, but my nanny is at home with him on the other days. Would it help for her to take Albert? --Sally Barry Pearce @ ENRON COMMUNICATIONS 11/28/2000 05:46 PM To: Sally Beck/HOU/ECT@ECT@ENRON cc: Subject: Re: Kristin Albrecht Unfortunately she's developed pnuemonia - she's in Conroe Medical Center. She's pretty stable - fluid on the longs. Thanks for your concern, I'll keep you posted. B.

Steve: I think it makes sense to get together either later today or tomorrow morning to go over the forecast. Given that Tracy is out, I don't want anything to slip through the cracks. Except for a 3-4 meeting, I am free after that.

Olympian Status for U.S. Gas Market Just so you'll know: "The natural gas market is a real success story. ...FERC has gotten an enormous amount of things right. The market may not be unblemished, but there are lots who consider the natural gas market the best market in the world offering genuine price discovery on a daily basis across dozens of products. It's something everyone should be proud of," Robert Levin of the New York Mercantile Exchange told a FERC conference yesterday. "The natural gas market has performed remarkably admirably through a range of market conditions with hundreds, if not thousands of market participants, using an extraordinary selection of market instruments," Levin continued, adding that the Commission should be supporting the "growth and increased sophistication of commerce. You're at that point now." Warning against so-called solutions offered by some at the day-long conference to increase liquidity or tie the natural gas market to the electric market, Levin cautioned, "liquidity cannot be legislated. Don't overreact. The electric market is poorly regulated. Remedies from the natural gas market should be transferred to the electric market, rather than allow the gas market to be corrupted by the regulatory mistakes of the electric market. "Rather than worry over regulating an hourly market for natural gas, change the electric market," which Levin believes has developed its over-emphasis on the hourly market because of the artificial tilt toward the spot market. But while Levin warned against too much market meddling, others among the more than 30 representatives of the industry and its customers testifying at FERC's conference on competitive natural gas markets argued for a variety of initiatives to increase market liquidity by changing the rules for pipeline transportation. Eliminating the shipper-must-have-title rule, promoting expansion of the existing pipeline infrastructure (especially in the Northeast), doing away with straight-fix-variable (SFV) rate design, review of firm-to-wellhead rates in the production region and the allocation of transportation costs between the upstream and downstream were among the chief proposals proffered by mostly pipeline customers. However, greater gas market liquidity shouldn't be confused with increased competition in pipeline transportation, municipals and producers told FERC staff during a post-Order 637 technical conference Wednesday. "...[W]e're concerned the Commission may be equating market liquidity with competition in pipeline transportation. The two are not the same," said Arthur Corbin on behalf of the American Public Gas Association (APGA), which represents municipal gas distributors. "Even with greater and greater market liquidity, monopoly power exists in [the] pipeline transportation segment. Captive shippers will always require a regulated transportation service from any hub to their citygate," he said. Much the same holds true for LDCs, noted Bruce Henning, director of energy practices for Energy and Environmental Analysis Inc. (EEA), who represented the American Gas Association (AGA) at the Commission staff conference. He agreed market liquidity has improved immeasurably, but he added "there's not a liquid market center at every pipeline receipt or delivery point location. Nor is there likely to be market centers in all of these locations in the near future..." Consequently, Henning said FERC will need to continue to protect producers from market power that accompanies "limited access" to pipelines. The day-long conference held yesterday in Washington D.C. was the first of several that FERC staff plans to hold to explore the impact of the Commission's transportation policies on the development of gas markets. Christopher A. Helms, president and COO of Panhandle Pipeline Companies, urged FERC not to enact policy changes that would place commodity market liquidity as the "ultimate goal" at the expense of the transportation market. Helms said he advocated policies encouraging pipeline expansions and construction of "optimal amounts of additional capacity" to meet the needs of the market. "The single most important characteristic for liquidity in the natural gas commodity markets is the availability of adequate transportation capacity." Charles Daverio, vice president of KeySpan Corp., echoed that sentiment, saying FERC could increase liquidity in the New York City market and elsewhere in the Northeast by promoting construction of new pipeline capacity to ensure adequate supplies for the region year-round. This would reduce energy costs and enhance reliability, he noted. Panhandle's Helms also cautioned against policy changes that would force the development of new market centers and hubs. Market centers should be allowed to develop at their "own pace," and at locations where the market "sees fit," he said. EEA's Henning estimated more than 40 "liquid and transparent" market centers exist today, which permit industry participants to buy and sell gas daily under "extremely competitive" conditions. He said he's "confident" more will be added because of the options that they provide to gas customers. As another way to enhance liquidity, KeySpan's Daverio --- as well as others --- supported eliminating the shipper-must-have-title rule, which requires the customer to retain title to the gas while it's being shipped. Doing away with the rule would pave the way for the development of new pipeline products and services, such as operational balancing and virtual storage, he told the FERC staff. But Dena Wiggins, an attorney with the D.C. law firm of Sutherland, Asbill & Brennan LLP, which represents the Process Gas Consumers Group (industrial gas customers), said her group was "very concerned" about efforts to repeal the rule. "...I haven't heard anything yet [today] that satisfies the concerns that we might have." She noted the Commission already has granted exceptions to the shipper-must-have-title rule in certain cases, and should continue with this policy where necessary. Moreover, Wiggins said industrial customers were increasingly worried about the mounting market power of unregulated companies, especially gas marketers. At the conference, she also expressed her group's dismay with the pipeline compliance filings with Order 637, particularly on the penalty issue. Rather than an "improved" penalty structure, pipelines are proposing higher penalties, Wiggins said. "[We] continue to be shocked at the absolute wholesale departures" from 637. BP's Jeff Holligan also waded into the fight against all the new services outlined by pipelines in their Order 637 filings, which he said were "nothing more than penalties disguised as balancing services that customers can't refuse." He urged the Commission to check with a pipeline's customers, noting one proposed new "service" is opposed by 100% of the pipeline's non-affiliated customers. Some of the proposed services, Holligan said, add up to nothing more than degradation of existing long-term firm service. Holligan, representing the largest producer in the U.S. and Canada, joined other market participants in urging adoption of "standardized allocation (sales), standardized penalty levels, and the requirement that all pipelines implement a uniform title transfer tracking process." In short, "standardizing pipeline services, certainly on an individual pipeline, and also to a large extent between and across pipelines is imperative if markets are to be highly liquid..Individually negotiated services, where every service is a different service, or the adoption of a so-called dual track market, are the antithesis of a highly liquid, efficient and competitive gas market. Standardization of operational terms of pipeline service is necessary to facilitate trading through e-commerce." "The Commission should be striving to commoditize pipeline capacity so it can be traded along with gas electronically," Holligan said.

No problem-we enjoyed it also. Hook'em. Bryan Denney Controller Hyperformix, Inc. 4301 Westbank Dr. Bldg. A, Suite 300 Austin, TX 78746 512-425-5159 (direct) 1-800-759-6333 ext 259 fax: 512-327-6646 -----Original Message----- From: Dean, Clint [mailto:Clint.Dean@ENRON.com ] Sent: Monday, October 22, 2001 1:14 PM To: Bryan Denney (E-mail 2) Subject: Bryan, Thanks again for letting me stay with y'all. I had a very good time. The boat was awesome. Tell Monica also. Clint ********************************************************************** 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. **********************************************************************

Jim: Here are some more questions regarding the Wheatland Plant. Check questions 2.15 and 2.16. Thanks Ben

i ran into ryan siurek who said that he is having changes made to the avici hedge. has he talked to you yet? i would like to get the revised (and hopefully final?) version to LJM. thanks.

I called him at home last night. His absence from the office this week was somewhat unplanned. He is at home with his kids as his mother inlaw is taking a break for the week (remember, he has four kids, including a two-month old baby and his son Erik who has had a variety of health problems). He is planning on coming in at the end of the week to interview some internal people for a job on the services desk. I agree that it looks like he is out of here, but he gave me no indication. I think that we should sit tight for a few days. I will know when he's coming in to do the services interviews. Perhaps Amy should have a conversation with him at that time.

The weekend was VERY good! But - the weekend is the past. Who knows what the future brings! Even so - in your searching, you might find someone better than me! But, if I am still unattached, I will be there! K. -----Original Message----- From: Dyer, Laird Sent: Monday, September 24, 2001 1:49 PM To: Ward, Kim S (Houston) Subject: Back-Up Kim, I don't know how well your weekend was, but do I need to be looking for a new back-up? That is, when I am 50 and single, will you still be there? Looking Through My Little Black Book, Laird

I sent this on to Gary and Jeff. He's worth talking to. mike ---------------------- Forwarded by Mike McConnell/HOU/ECT on 08/17/2000 04:31 PM --------------------------- Maxine E Levingston@ENRON 08/16/2000 04:57 PM To: Mike McConnell/HOU/ECT@ECT cc: Cathy Phillips/HOU/ECT@ECT Subject: DAVID G. EHLIS Mike, Attached is the resume I mentioned to you yesterday on voice mail. I can personally speak for Dave as an outstanding performer. I am looking forward to getting together with you in the next week or two. Take care, Billy ---------------------- Forwarded by Maxine E Levingston/Corp/Enron on 08/16/2000 04:45 PM --------------------------- "Dave Ehlis" <dehlis@worldnet.att.net> on 08/04/2000 03:52:25 PM To: "Billy Lemmons" <billy.lemmons@enron.com> cc: Subject: Agribusiness Billy, ? Good talking to you today.??Thanks for taking a look at this. ? Dave - Agribusiness.doc - DRES.doc

A report from ARM's PR firm to the ARM members. Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 03/21/2001 04:12 PM ----- "Beiser, Megan" <Megan.Beiser@edelman.com> 03/21/2001 03:00 PM To: "Aaron Thomas (E-mail) (E-mail)" <athomas@newenergy.com>, "Andrea Weller (E-mail) (E-mail)" <aweller@sel.com>, "andrew Chau (E-mail) (E-mail)" <anchau@shellus.com>, "Bill Chen (E-mail) (E-mail)" <bchen@newenergy.com>, "Douglas Oglesby (E-mail) (E-mail)" <doao@chevron.com>, "Fairchild, Tracy" <tracy.fairchild@edelman.com>, "Jeffrey Hanson (E-mail) (E-mail)" <jeff.hanson@phaser.com>, "jennifer Chamberlin (E-mail) (E-mail)" <jnnc@chevron.com>, "john Barthrop (E-mail) (E-mail)" <jbarthrop@electric.com>, "John Leslie (E-mail) (E-mail)" <jleslie@luce.com>, "Joseph Alamo (E-mail) (E-mail)" <jalamo@enron.com>, "Manuel, Erica" <Erica.Manuel@edelman.com>, "'Michael Nelson' (E-mail)" <mnelson@electric.com>, "Peter Bray (E-mail) (E-mail)" <pbray@newpower.com>, "Rebecca Schlanert (E-mail) (E-mail)" <rschlanert@electric.com>, "Richard Counihan (E-mail) (E-mail)" <rick.counihan@greenmountain.com>, "'Robert Morgan' (E-mail)" <rmorgan@newenergy.com>, "Sue Mara (E-mail) (E-mail)" <smara@enron.com>, "Allen, Stevan" <stevan.allen@edelman.com>, arm@phaser.com, "brbarkovich@earthlink.net" <bbarkovich@earthlink.net'>, cra@calretailers.com, dennis.flatt@kp.org, dhunter@smithandkempton.com, djsmith@smithandkempton.com, Dominic.DiMare@calchamber.com, drothrock@cmta.net, gharrison@calstate.edu, hgovenar@govadv.com, jackson_gualco@gualcogroup.com, ken_pietrelli@ocli.com, kgough@calpine.com, kmccrea@sablaw.com, kmills@cfbf.com, lhastings@cagrocers.com, mday@gmssr.com, mmoretti@calhealth.org, nplotkin@tfglobby.com, randy_britt@robinsonsmay.com, richard.seguin@kp.org, RochmanM@spurr.org, rrichter@calhealth.org, sgovenar@govadv.com, smccubbi@enron.com, spahnn@hnks.com, theo@ppallc.com, vincent.stewart@ucop.edu, vjw@ceert.org, "Warner, Jami" <jami.warner@edelman.com>, wbooth@booth-law.com, wbrown@lhom.com, wlarson@calstate.edu cc: Subject: State Controller Kathleen Connell Press Conference > State Controller Kathleen Connell held a press conference today to voice > her concerns over electricity power purchases' effect on the State's > general fund and in response to a letter received March 12 from Department > of Finance Director Tim Gage and Chief Legislative Analyst Elizabeth Hill > requesting a transfer of money from the General Fund. > > Connell stated that Current financial information related to the purchase > of electricity and the general fund is as follows: > *State's general fund surplus has dropped from $8.5 billion in January to > a current estimated level of $3.2 billion > *Receipt of a letter from the Department of Finance Director and the Chief > Legislative Analyst requesting an additional transfer of $5.6 billion to > the Special Fund for Economic Uncertainties to cover power purchases > *To cover this transfer, Connell said the state would have to borrow $2.4 > billion > *Connell: "We started this year with a generous budget surplus; the energy > crisis has taken much of that away, and this transfer on top of the > electricity purchases would put the [General] fund at risk." > *Debt issuance has not occurred to reimburse the General Fund for power > purchases, while disbursements from the General Fund increase daily > > Controller Connell sent a letter to the Governor today, calling for the > following steps to be taken: > 1. DWR to notify the Controller's office of any purchases made and any > contracts negotiated to date > 2. DWR to notify the Controller's office of any future purchases and > contracts within 7 days, regardless of when the invoices are submitted > 3. Information on purchases in excess of $55 million should be submitted > within 24 hours > 4. DWR should prepare new General Fund cash flow estimates for the next 30 > and 60 days, and for the end of the fiscal year > 5. DWR should take action to ensure that bond sales are completed by the > end of May 2001 > > The Controller is also ordering an audit of the DWR resources to determine > the amount of money being spent by the Department. Currently, Connell > said, "I have to rely on press reports as valid to determine the amount of > money spent in power purchases." She said she needs "acknowledgement of > the total amount of liabilities made" by DWR. > > Megan Beiser > Assistant Account Executive > Edelman Public Relations Worldwide, Sacramento > Phone: (916) 442-2331 > Fax: (916) 447-8509 >

I am reading your mail, I have asked for the same thing regarding my base. Especially since I came up here with a base salary converted at 1.48 CDN/USD and with no raise since being here at 1.61 CDN/USD I have received a 9% pay cut relative to my peers in Houston. Not to mention that my base salary is $50-$100 USD/year lower than what other shops are offering. However, after three attempts, I have been unsuccessful in championing my own cause. -----Original Message----- From: Lambie, Chris Sent: Friday, January 18, 2002 1:51 PM To: Zufferli, John Subject: Zuff Just a quick note after my first look at the numbers. The only concern I have is with the base number. Seeing as there is no money up front, the future payments look a lot more like long term comp. than any real signing or retention bonus. When I came to Enron two years ago I took a $35,000 decrease in base pay in exchange for options and the opportunity to trade for number 1. That is no longer the case (no options and UBS is not #1) therefore I would look for my base to better reflect market on a go forward basis. If you are able to accommodate a reasonable adjustment in base I would be very excited about the opportunity to sign with UBS. I would like to talk about this on Monday, after I have had a chance to look at the paper in full. Chris.

Thanks - you even used the same minuscule type that I love but everybody hates. My weekend is going great and now I think Mon will be OK too. Hope you also had a good weekend. Talk to you on Mon.

Yahoo! News Edit Breaking News Alerts - Yahoo! Breaking News Alert edit BEIJING _ China says it will not allow the downed U.S. Navy spy plane to fly home. Click here! [IMAGE] If you no longer wish to receive this alert, click here to unsubscribe. If you have questions, send us feedback. Copyright , 1994-2001 Yahoo! Inc. All rights reserved. Yahoo Privacy Policy

Hello Tana, I was wondering if you could provide me with a copy of the ISDA in place with Alcoa Inc. today. It would be greatly appreciated if you could send this document either by email, or to me by fax at 0207 783 1171. Sorry about the rush on this. Thanks in advance, Ian

A couple of additional thoughts on this morning's conversation: 1. if we really think the next 6 or 8 months will sort out the takeaway and receipt point capacity issues, why not bet the whole farm and try to hold onto the whole 150 mm/d until next winter or fall and see if the perceived value goes up? We could tell Calpine "no" on their bid and hold them off for several months "negotiating" if that's what we thought would lead to the best value. I don't personally think this would be a prudent approach, but its where our logic leads in the extreme, so we'd better be prepared to explain why getting the bird in the hand from Calpine is smart. 2. We'll research the question of whether we can reject any recourse bids that come in over the next 6-8 months if we decide to hold onto the 60 mm/d for awhile. I've thought about it a bit more and I'm pretty sure you're not going to like the answer. First, FERC says we've got to have a recourse rate in place for all capacity, new or old. One reason is that there needs to be a max rate that applies to long term capacity releases. We have the option on new projects to go with the existing max tariff rate or a new incrementally designed rate. We are going with the existing tariff rate on RedRock. Fine, but that makes the existing rate the recourse rate for all purposes. FERC's logic will be that TW could sell all of the RedRock capacity at recourse rates (currently $.38) and never suffer a revenue shortfall even if future rate cases reduce TW's overall rates, because the costs of all TW's facilities--including the new project--will be considered in the next rate case. Think about it--our rates will only go down in the future if the ENTIRE cost of service goes down. We'd never "lose money" on RedRock, but we might not make as much as we could have made with an 15 year fixed $.38 negotiated rate. There is another approach. We could have Mavrix submit a binding bid right now for the 60 mm/d and just flat out sell it to them. That would send a pretty strong signal to the market that we are serious about deadlines. The downside of that aggressive approach is that it would get us into the same mess that El Paso finally got themselves out of, with Amoco, Dynegy and the whole gang beating the crap out of us. I'm not to fired up about this approach for that reason. I'll give you a call Monday after I've picked our best regulatory brains on these issues. DF

Mo, Are your reports still available for EOL that you created months ago? I would like to turn them over to the fundies group ( Matt Smith) tomorrow. Mike

Vince, Can I call you Tuesday morning about our writing project? I have to be in Austin for a dental appointment on Monday at noon and that will probably wipe out the day. Give me a time and number where I can reach you. John John D. Martin Carr P. Collins Chair in Finance Finance Department Baylor University PO Box 98004 Waco, TX 76798 254-710-4473 (Office) 254-710-1092 (Fax) J_Martin@Baylor.edu web: http://hsb.baylor.edu/html/martinj/home.html

Great - no changes -----Original Message----- From: Shah, Kal Sent: Wednesday, February 06, 2002 4:14 PM To: Kitchen, Louise Subject: RE: Direct Mail Pack Letter I've redrafted it. See attached. Thanks. Kal << File: custletter_postlaunch_1.doc >> -----Original Message----- From: Kitchen, Louise Sent: Wednesday, February 06, 2002 3:59 PM To: Shah, Kal Subject: RE: Direct Mail Pack Letter Can you redraft in light of how I redrafted the other one - removing Enron's name from the first paragraph. And resend to me Thanks -----Original Message----- From: Shah, Kal Sent: Wednesday, February 06, 2002 3:31 PM To: Kitchen, Louise Subject: Direct Mail Pack Letter Louise -- Could you review and approve the attached draft of the cover letter for the direct mail pack? The letter will be sent under your name. I will come by tomorrow to get your signature on a piece of paper. We will scan it and print on the letter electronically. Thanks Kal << File: custletter_postlaunch.doc >>

Ken I wanted to let you know that I visited Philippe Bibi last Thursday to debrief on this loss and also to listen to a number of other points he raised that could improve the the way we work together. Philippe was very helpful and very direct - which I appreciate. Some of the reasons we lost this bid is that we failed to execute the sales process as I would expect us to. This is not typical of the way we should now work and we have made changes to account management and service representation. We have made enormous progress as a Corporation over the last twelve months. There is a lot of good news in many accounts around the world but there is also no complacency and it concerns me a great deal when we have less than perfect execution. I shall be following up with Philippe and the account team to ensure we do a great job in the future. Regards Peter > -----Original Message----- > From: Capellas, Michael D. > Sent: Friday, August 25, 2000 8:13 AM > To: 'klay@enron.com' > Cc: Blackmore, Peter > Subject: Disappointing news > > Ken: > > Very shortly after we spoke, I was informed that we had lost the Enron > HomePC Program. This is a great emotional blow to us and I am beyond > disappointed. > > We understood that given our recent strong performance against Dell, they > would do anything to embarrass us in our own backyard. We have very > strong insight into their intent and knew they would use this > aggressively in their PR campaigns. > > However, clearly it was our job to win the business on the merits of the > individual program and to compete hard for it. We believed that we had a > creative offer on the table that would create great value for your > employees. Obviously, we did not perform to your expectations. > > Following is the summary of our activities together which was created > before we heard the news. > > I pride myself in developing strong executive relationships with our > customers, and I would welcome the opportunity for us to put our heads > together in order to look for ways we can move the relationships between > our two companies to a higher level. > > I also think we should discuss the PR positioning. As a member of our > Board, and as a leader in the Houston community this will be news and I am > hopeful we can find a creative way to balance it. > > Again, I accept it was ours to win in the marketplace but regret it had to > come to this. I look forward to your call. > > M > > > > > From our Enron team: > > > > * EBS Product and Service Supply Agreement > > Compaq will continue to honor the Product and Service Supply Agreement > executed on January 18 between EBS and Compaq, whereby Compaq agreed to > purchase broadband services from EBS (on a take or pay basis) in > proportion to EBS' purchase of NT servers and attached storage. It is > also important to note that we have been actively partnering with EBS on > non-contractual areas, such as our ongoing technical joint development and > marketing efforts around the Windows Streaming Media product. I > understand that our teams have been working very closely together -- and > with Microsoft -- to resolve technical issues with Windows Streaming Media > and thereby speed EBS' market deployment. > > The major issue is that Enron does not support traffic to many of our > concentration point so we need to be creative. > > Bottom line, we are down to solvable problems with solution activities > underway. > > * Windows 2000 > > > During the last week of May Compaq responded to a request from Enron to > support Windows 2000 deployments, and placed people on site with no > defined contract or process due to Enron's requirements. At this writing, > no contract has been signed, and the current contract iteration is at > number fourteen. Apparently the delivery scope has changed several times > and there have been a few mistrals. Compaq is continuing to provide > resources despite the fact that no contract is in place and will work with > Enron to ensure a successful completion of the project. > > * Power Management > > Jesse Greene, our CFO, will act as the contact point for Enron for power > management services. The issue is we have existing contracts at favorable > rates but we will break the log jam. > > * HomePC Program > > For several months, Compaq and Enron have been working the solution to > bring technology and Internet access into the homes of every Enron > employee. There have been many creative discussions around hardware and > financing to allow Enron to fully subsidize the package provided. Compaq, > Enron and Compaq Financial Services had gotten to a point where the $35 > per month cap was going to require the specifications of the hardware to > be reduced. In recognition of the value of our partnership and our mutual > desire for this program to be the premier program in the industry, we have > increased the specifications of the hardware while taking significant > pricing actions and financing rate reductions. These actions will > actually allow Enron to support better than expected hardware with the > extended warranty for $34.28 per month. This will truly be an > industry-leading program when launched later this fall. >

Dear You Love, Continental Airlines is committed to meeting new federal requirements regarding checked baggage and airport security fees. In an effort to keep you informed, below are the most recent changes that will affect your travel: POSITIVE BAG MATCH Effective January 18, 2002 the Federal Aviation Administration will require a positive bag match for travel within the U.S., its territories and commonwealths. Bags cannot be transported on the aircraft without confirmation that the customer has boarded the aircraft. DOMESTIC CHECK-IN/ARRIVAL TIME To ensure compliance with the Positive Bag Match policy without delays or inconvenience, Continental Airlines has changed the boarding time for domestic flights for tickets purchased on or after January 18, 2002. Customers checking baggage must do so at least 30 minutes prior to departure. All customers must be checked in and at the boarding gate no later than 15 minutes prior to scheduled departure. Customers who buy tickets on or after January 18, 2002 who are not at the boarding gate 15 minutes prior to departure are subject to having their reservations canceled, seats released and checked baggage removed from the flight. SECURITY FEE The Transportation Security Administration is requiring that airlines collect the September 11th Security Fee of $2.50 per enplanement, not to exceed $5.00 each way or $10.00 per round-trip ticket. This security fee goes into effect for tickets purchased on or after February 1, 2002. It applies to qualifying enplanements from airports in the U.S., its territories and commonwealths. This fee applies to all tickets including frequent flyer reward tickets, two-for-one tickets, tour conductors and infants for whom a fare has been collected. Continental Airlines continues to make safety our number one priority. Be sure to stay informed with continental.com at: http://continentalairlines.rsc01.net/servlet/cc4?JHEVCU*ishOLQLJmELgkhgEJht*z*UA before leaving for the airport. We're looking forward to welcoming you onboard! Sincerely, Mark F. Bergsrud Vice President, Marketing Continental Airlines, Inc. ----------------------------------------------- If you need assistance please visit: http://continentalairlines.rsc01.net/servlet/cc4?JHEVCU*ishOLQLJmELgkhgEJht*z*VA View our Privacy Policy at: http://continentalairlines.rsc01.net/servlet/cc4?JHEVCU*ishOLQLJmELgkhgEJht*z*WA This message was sent to: plove@ect.enron.com To subscribe visit: http://continentalairlines.rsc01.net/servlet/cc4?JHEVCU*ishOLQLJmELgkhgEJht*z*XA To unsubscribe visit: http://continentalairlines.rsc01.net/servlet/cc4?JHEVCU*ishOLQLJmELgkhgEJht*z*YA

---------------------- Forwarded by Tom Acton/Corp/Enron on 05/26/2000 08:58 AM --------------------------- From: Melissa Graves @ ECT 05/26/2000 07:40 AM To: Julie Meyers/HOU/ECT@ECT cc: Tom Acton/Corp/Enron@ENRON, Donald P Reinhardt/HOU/ECT@ECT, Susan Smith/HOU/ECT@ECT, Vance L Taylor/HOU/ECT@ECT Subject: EEX - Meter Julie, Just an FYI, I sent a ticket down to Mick last night for EEX E&P, Meter 6500. George is requesting that a contract be sent to them for execution, but in the mean time, please send out a First Purchaser GTC on this one. Call me if you have any questions. Thank you, Melissa

Please let me know if you have any feedback to Jay's suggested approach to the Generation Interconnection Procedures section of the tariff. I don't want to file this until I hear that you are in agreement. -----Original Message----- Date: 03/18/2001 03:10 pm (Sunday) From: JAY DUDLEY To: Christi Nicolay; Mary Hain CC: James Steffes; MICHELE FARRELL Subject: Re: Draft interconnection procedure Mary, Christi. Thanks for your good comments on the draft interconnection procedures. Attached is a memo addressing your comments. Michele Farrell will have the pen to make the changes and to supervise the filing while I'm out this week. Jay. -----Original Message----- Date: 03/16/2001 12:28 pm (Friday) From: Jim Eden To: Dave Lamb; Frank Afranji; Jack Todd; MICHELE FARRELL CC: Gary Lindland; JAY DUDLEY Subject: Re: Comments on Interconnection Procedures I agree with Dave. I'd agrue for 120 if I thought I could get away with it. >>> Dave Lamb 03/16/01 11:16AM >>> Frankly, I am more comfortable with 90 days. Its easier to complete a project early and send out the info prior to the due date, then to have to go back and ask for more time. Depending on the size of the plant and location, we may be faced with a lot of checking equipment records and field checks to verify ratings. I'll ask Gary Lindland how he feels about reducing the time line. >>> MICHELE FARRELL 03/16/01 11:02AM >>> Any feedback on Enron's comments on our draft interconnection procedures that Jay sent out last night? Jay and I are trying to get the DC attorneys on the phone to incorporate some changes. In particular, Enron wants us to put in a shorter time for completing the Interconnection Facilities study (60 rather than 90 days). Enron says we would still have the flexibility to take longer if we notify the customer that we need more time. How do Dave and Jim feel about that proposal?

MEMORANDUM TO: State Issues Committee FROM: Jane Cahill, State Issues Committee Chair Samantha Slater, Manager of State & Regional Affairs DATE: March 7, 2001 RE: FTC Request for Comments on Retail Electricity Competition Plans ? Comments Due April 3, 2001 ? Conference Call on Friday, March 16th at 11:00 a.m. EST On February 28, 2001, the Federal Trade Commission (FTC) issued a request for information regarding the outcome to date of the different regulatory and legislative approaches states have taken to the introduction of retail electric competition. To discuss the Commission's notice and the direction of EPSA's comments in response to the notice, we have scheduled a conference call for Friday, March 16th at 11:00 a.m. (EST). The FTC's notice was issued at the request of the Chairman of the Energy and Commerce Committee of the U.S. House of Representatives, Billy Tauzin, and the Chairman of the Subcommittee on Energy and Air Quality, Joe Barton. To comply with the request, the Commission will update its July 2000 staff report Competition and Consumer Protection Perspectives on Electric Power Regulatory Reform. The FTC will examine various state retail competition programs and determine which features have resulted in consumer benefits, and which have not. In particular, the Commission is interested in information about market responses to various provisions of state retail competition plants. In addition, the Commission will also consider possible jurisdictional limitations on the states' authority to implement retail competition programs and whether there is a need for federal legislative or regulatory action. A copy of the FTC's notice is attached. To access the March 16th conference call at 11:00 a.m. (EST), please dial 1-800-937-6563 and ask for the EPSA/Samantha Slater Call. In the meantime, if you have any questions or comments please contact Samantha Slater at 202-789-7200 or sslater@epsa.org. The FTC's notice represents an important and unique opportunity for EPSA members to discuss what is working and what is not in retail markets today. We encourage as many member companies as possible to submit comments. Also during this conference call, we will discuss what role, if any, EPSA should play in states that have already opened their markets to retail choice, such as Pennsylvania, Massachusetts and Illinois. Attachment - eleccompetition.txt

I'm traveling to Florida on a business meeting on Thursday. If Fred the chicken is available, I'd be pleased to have him accompany me. -----Original Message----- From: Jung, Christine S [mailto:CJUNG@houstonisd.org] Sent: Tuesday, October 16, 2001 3:05 PM To: 'scorman@enron.com' Subject: Flat Stanley Hi, Ms. Corman. This is Mrs. Jung. This is my email if you ever need it for future reference. :) Flat Stanley was sent in the envelopes provided from home. I had the kids put labels with the school's address on it in the return address corner. I also included an envelope with the school's address on it so that Stanleys could be returned. I'm glad to hear Stanleys are being anticipated. I know the kids are really excited about them. I'm also glad to hear Chad's enjoying school. We are definitely doing harder work than Kindergarten. We're actually doing different work than the rest of first grade - more challenging, mind-stretching work, I'd like to believe. I was very encouraged by your letter and just wanted to express my appreciation for sharing your thoughts with us. Thanks again! Let me know if you have any other questions. Sincerely, Mrs. Jung

---------------------- Forwarded by Eric Bass/HOU/ECT on 02/07/2000 05:02 PM --------------------------- "Larry W. Bass" <lwbthemarine@bigplanet.com> on 02/02/2000 03:02:07 PM To: Daphneco64@aol.com cc: jasnbass@swbell.net, Eric Bass/HOU/ECT@ECT Subject: Fw: Winning the cultural war ----- Original Message ----- From: Frank Marsters To: Adams, George Sent: Friday, January 28, 2000 12:15 PM Subject: Fw: Winning the cultural war ----- Original Message ----- From: Ted & Carla To: Mike Ferguson Sent: Thursday, January 27, 2000 10:45 PM Subject: Winning the cultural war Mike, here is the speach by Charlton Heston that I was telling you about. Subject: Winning the Cultural War by Charlton Heston Date: Tue, 16 Mar 1999 20:47:56 -0600 From: "Koenig's International News" <bill@watch.org> To: watch-news@watch.org Note from Bill Koenig: Below is an excellent message given by Charlton Heston at Harvard. Rush Limbaugh today said he has received 9000 e-mail requests for a copy. It is entitled 'Winning the Cultural War' and was given at the Harvard Law School Forum, February 16, 1999. ************ I remember my son when he was 5, explaining to his kindergarten class what his father did for a living. "My Daddy," he said, "pretends to be people." There have been quite a few of them. Prophets from the Old and New Testaments, a couple of Christian saints, generals of various nationalities and different centuries, several kings, three American presidents, a French cardinal and two geniuses, including Michelangelo. If you want the ceiling re-painted I'll do my best. There always seem to be a lot of different fellows up here. I'm never sure which one of them gets to talk. Right now, I guess I'm the guy. As I pondered our visit tonight it struck me: If my creator gave me the gift to connect you with the hearts and minds of those great men, then I want to use that same gift now to re-connect you with your own sense of liberty ... your own freedom of thought ... your own compass for what is right. Dedicating the memorial at Gettysburg, Abraham Lincoln said of America, "We are now engaged in a great Civil War, testing whether this nation or any nation so conceived and so dedicated can long endure." Those words are true again. I believe that we are again engaged in a great civil war, a cultural war that's about to hijack your birthright to think and say what resides in your heart. I fear you no longer trust the pulsing lifeblood of liberty inside you ... the stuff that made this country rise from wilderness into the miracle that it is. Let me back up. About a year ago I became president of the National Rifle Association, which protects the right to keep and bear arms. I ran for office, I was elected, and now I serve ... I serve as a moving target for the media who've called me everything from "ridiculous" and "duped" to a "brain-injured, senile, crazy old man." I know ... I'm pretty old ... but I sure thank the Lord ain't senile. As I have stood in the crosshairs of those who target Second Amendment freedoms, I've realized that firearms are not the only issue. No, it's much, much bigger than that. I've come to understand that a cultural war is raging across our land, in which, with Orwellian fervor, certain acceptable thoughts and speech are mandated. For example, I marched for civil rights with Dr. King in 1963 -- long before Hollywood found it fashionable. But when I told an audience last year that white pride is just as valid as black pride or red pride or anyone else's pride, they called me a racist. I've worked with brilliantly talented homosexuals all my life. But when I told an audience that gay rights should extend no further than your rights or my rights, I was called a homophobe. I served in World War II against the Axis powers. But during a speech, when I drew an analogy between singling out innocent Jews and singling out innocent gun owners, I was called an anti-Semite. Everyone I know knows I would never raise a closed fist against my country. But when I asked an audience to oppose this cultural persecution, I was compared to Timothy McVeigh. >From Time magazine to friends and colleagues, they're essentially saying, "Chuck, how dare you speak your mind. You are using language not authorized for public consumption!" But I am not afraid. If Americans believed in political correctness, we'd still be King George's boys-subjects bound to the British crown. In his book, "The End of Sanity," Martin Gross writes that "blatantly irrational behavior is rapidly being established as the norm in almost every area of human endeavor. There seem to be new customs, new rules, new anti-intellectual theories regularly foisted on us from every direction. Underneath, the nation is roiling. Americans know something, without a name is undermining the nation, turning the mind mushy when it comes to separating truth from falsehood and right from wrong. And they don't like it." Let me read a few examples. At Antioch college in Ohio, young men seeking intimacy with a coed must get verbal permission at each step of the process from kissing to petting to final copulation ... all clearly spelled out in a printed college directive. In New Jersey, despite the death of several patients nationwide who had been infected by dentists who had concealed their AIDS --- the state commissioner announced that health providers who are HIV-positive need not. .. need not ... tell their patients that they are infected. At William and Mary, students tried to change the name of the school team "The Tribe" because it was supposedly insulting to local Indians, only to learn that authentic Virginia chiefs truly like the name. In San Francisco, city fathers passed an ordinance protecting the rights of transvestites to cross-dress on the job, and for transsexuals to have separate toilet facilities while undergoing sex change surgery. In New York City, kids who don't speak a word of Spanish have been placed in bilingual classes to learn their three R's in Spanish solely because their last names sound Hispanic. At the University of Pennsylvania, in a state where thousands died at Gettysburg opposing slavery, the president of that college officially set up segregated dormitory space for black students. Yeah, I know ... that's out of bounds now. Dr. King said "Negroes." Jimmy Baldwin and most of us on the March said "black." But it's a no-no now. For me, hyphenated identities are awkward ... particularly "Native-American." I'm a Native American, for God's sake. I also happen to be a blood-initiated brother of the Miniconjou Sioux. On my wife's side, my grandson is a 13th-generation Native American ... with a capital letter on "American." Finally, just last month ... David Howard, head of the Washington D.C. Office of Public Advocate, used the word "niggardly" while talking to colleagues about budgetary matters. Of course, 'niggardly' means stingy or scanty. But within days Howard was forced to publicly apologize and resign. As columnist Tony Snow wrote: "David Howard got fired because some people in public employ were morons who (a) didn't know the meaning of 'niggardly,' (b) didn't know how to use a dictionary to discover the meaning, and ,actually demanded that he apologize for their ignorance." What does all of this mean? It means that telling us what to think has evolved into telling us what to say, so telling us what to do can't be far behind. Before you claim to be a champion of free thought, tell me: Why did political correctness originate on America's campuses? And why do you continue to tolerate it? Why do you, who're supposed to debate ideas, surrender to their suppression? Let's be honest. Who here thinks your professors can say what they really believe? It scares me to death, and should scare you too, that the superstition of political correctness rules the halls of reason. You are the best and the brightest. You, here in the fertile cradle of American academia, here in the castle of learning on the Charles River, you are the cream. But I submit that you, and your counterparts across the land, are the most socially conformed and politically silenced generation since Concord Bridge. And as long as you validate that ... and abide it ... you are-by your grandfathers' standards-cowards. Here's another example. Right now at more than one major university, Second Amendment scholars and researchers are being told to shut up about their findings or they'll lose their jobs. Why? Because their research findings would undermine big-city mayor's pending lawsuits that seek to extort hundreds of millions of dollars from firearm manufacturers. I don't care what you think about guns. But if you are not shocked at that, I am shocked at you. Who will guard the raw material of unfettered ideas, if not you? Who will defend the core value of academia, if you supposed soldiers of free thought and expression lay down your arms and plead, "Don't shoot me." If you talk about race, it does not make you a racist. If you see distinctions between the genders, it does not make you a sexist. If you think critically about a denomination, it does not make you anti-religion. If you accept but don't celebrate homosexuality, it does not make you a homophobe. Don't let America's universities continue to serve as incubators for this rampant epidemic of new McCarthyism. But what can you do? How can anyone prevail against such pervasive social subjugation? The answer's been here all along. I learned it 36 years ago, on the steps of the Lincoln Memorial in Washington D.C., standing with Dr. Martin Luther King and two hundred thousand people. You simply ... disobey. Peaceably, yes. Respectfully, of course. Nonviolently, absolutely. But when told how to think or what to say or how to behave, we don't. We disobey social protocol that stifles and stigmatizes personal freedom. I learned the awesome power of disobedience from Dr. King ... who learned it from Gandhi, and Thoreau and Jesus and every other great man who led those in the right against those with the might. Disobedience is in our DNA. We feel innate kinship with that Disobedient spirit that tossed tea into Boston Harbor, that sent Thoreau to jail, that refused to sit in the back of the bus, that protested a war in Vietnam. In that same spirit, I am asking you to disavow cultural correctness with massive disobedience of rogue authority, social directives and onerous law that weaken personal freedom. But be careful ... it hurts. Disobedience demands that you put yourself at risk. Dr. King stood on lots of balconies. You must be willing to be humiliated ... to endure the modern-day equivalent of the police dogs at Montgomery and the water Cannons at Selma. You must be willing to experience discomfort. I'm not Complaining, but my own decades of social activism have taken their toll on me. Let me tell you a story. A few years back I heard about a rapper named Ice-T who was selling a CD called "Cop Killer" celebrating ambushing and murdering police officers. It was being marketed by none other than Time/Warner, the biggest entertainment conglomerate in the world. Police across the country were outraged. Rightfully so-at least one had been murdered. But Time/Warner was stonewalling because the CD was a cash cow for them, and the media were tiptoeing around it because the rapper was black. I heard Time/Warner had a stockholders meeting scheduled in Beverly Hills. I owned some shares at the time, so I decided to attend. What I did there was against the advice of my family and colleagues. I asked for the floor. To a hushed room of a thousand average American stockholders, I simply read the full lyrics of "Cop Killer"-every vicious, vulgar, instructional word. "I GOT MY 12 GAUGE SAWED OFF I GOT MY HEADLIGHTS TURNED OFF I'm ABOUT TO BUST SOME SHOTS OFF I'm ABOUT TO DUST SOME COPS OFF..." It got worse, a lot worse. I won't read the rest of it to you. But trust me, the room was a sea of shocked, frozen, blanched faces. The Time/Warner executives squirmed in their chairs and stared at their shoes. They hated me for that. Then I delivered another volley of sick lyric brimming with racist filth, where Ice-T fantasizes about sodomizing two 12-year old nieces of Al and Tipper Gore. "SHE PUSHED HER BUTT AGAINST MY ...." Well, I won't do to you here what I did to them. Let's just say I left the room in echoing silence. When I read the lyrics to the waiting press corps, one of them said "We can't print that." "I know," I replied, "but Time/Warner _s selling it." Two months later, Time/Warner terminated Ice-T's contract. I'll never be offered another film by Warners, or get a good review from Time magazine. But disobedience means you must be willing to act, not just talk. When a mugger sues his elderly victim for defending herself ... jam the switchboard of the district attorney's office. When your university is pressured to lower standards until 80 percent of the students graduate with honors ... choke the halls of the board of regents. When an 8-year-old boy pecks a girl's cheek on the playground and gets hauled into court for sexual harassment ...march on that school and block its doorways. When someone you elected is seduced by political power and betrays you ... petition them, oust them, banish them. When Time magazine's cover portrays millennium nuts as deranged, crazy Christians holding a cross as it did last month ... boycott their magazine and the products it advertises. So that this nation may long endure, I urge you to follow in the hallowed footsteps of the great disobediences of history that freed exiles, founded religions, defeated tyrants, and yes, in the hands of an aroused rabble in arms and a few great men, by God's grace, built this country. If Dr. King were here, I think he would agree. Thank you. - att1.htm

Robert, There are three buy back tickets in Sitara for Equistar at mtr 1373. Two for HPL and one under ENA. Shouldn't we have only one buyback for each company? Also, how do you have the meter set up to allocate between the ENA contract and HPL contract? D

If you are a participant in the Enron Corp. Savings Plan, please read this very important message. We understand that you are concerned about the timing of the move to a new Savings Plan administrator and the restricted access to your investment funds during the upcoming transition period scheduled to take place beginning at 3:00PM CST on October 26 and ending at 8:00AM CST on November 20. We have been working with Hewitt and Northern Trust since July. We understand your concerns and are committed to making this transition period as short as possible without jeopardizing the reconciliation of both the Plan in total or your account in particular. Remember that the Enron Corp. Savings Plan is an investment vehicle for your long-term financial goals. The Enron plan will continue to offer a variety of investment opportunities with different levels of risk. As always, we advise you to review your overall investment strategy and carefully weigh the potential earnings of each investment choice against its risk before making investment decisions that are aligned with your long-term financial plans and your risk tolerance. For that reason, it is critical that ALL trades among your investment funds be completed by 3:00 PM CST Friday, October 26 before the transition period begins.

FYI Things are tough all over. GP ---------------------- Forwarded by Greg Piper/Corp/Enron on 12/10/2000 10:01 PM --------------------------- From: Keith Couch on 12/10/2000 11:02 AM To: Hal Elrod/Corp/Enron@Enron, Brandon Wax/HOU/ECT@ECT, Greg Piper/Corp/Enron@Enron, John Cummings/HOU/ECT@ECT, Jeff Harbert/HOU/ECT@ECT cc: Subject: paperexchange CEO resigns PaperExchange CEO steps down December 08, 2000 01:35 PM PT by Adam Feuerstein Kent Dolby, president and CEO of PaperExchange, resigned unexpectedly Thursday, adding to the mounting turmoil at the independent Net marketplace for the pulp and paper industry. Dolby's resignation, for personal reasons, comes a little more than a month after the company laid off 14 percent of its workforce in a major retooling of its business plan. Dolby joined PaperExchange -- 83 percent owned by Internet Capital Group (ICGE) -- in December 1999. Bob Brenner, PaperExchange's current chief technology officer, is being promoted to the CEO post. Duane Desisto, currently CFO and chief operating officer, will become president. Company executives, including Dolby, were not available to discuss the management shifts, but the moves were confirmed by a company spokeswoman. Brenner's ascension may be linked to PaperExchange's decision to focus less on its online exchange for excess paper products, and concentrate instead on developing and selling Internet-based business applications for the pulp and paper industry. Dolby may also be a victim of the fickleness of the b-to-b sector. When he joined the company, independent Net markets were the poster children for successful b-to-b ventures. But in the ensuing months, industry-sponsored marketplaces -- ventures set up by big industry players -- have risen to the top, forcing indie Net markets onto the b-to-b endangered list. PaperExchange faces considerable competiton from ForestExpress, a marketplace sponsored by industry giants Weyerhaeuser (WY), International Paper (IP), Georgia-Pacific (GP), Mead (MEA), Boise Cascade and Willamette (WLL). ForestExpress may or may not grow into a successful b-to-b marketplace, but its very existence has dominated b-to-b activity in the pulp and paper industry, and has essentially frozen any progress PaperExchange was making. The pickle in which PaperExchange finds itself is also being viewed, by some, as an indictment of Internet Capital Group. In September, ICG boosted its stake in the company from 20 percent to 83 percent, in exchange for 4.8 million shares of ICG common stock. The deal came at a time when ForestExpress was showing signs of life and when indie Net markets in general were falling into disfavor and were being all but ignored by most venture capitalists. ICG's fortunes have tumbled lately because many of its b-to-b investments are not paying off for shareholders. Last month, the company announced plans to cut costs, reduce its investment spending and refocus efforts on 15 "developed" companies in its portfolio -- companies that have the best near-term shot at initial public offerings. PaperExchange was not named as one of those "developed" companies. An ICG spokeswoman defends the investment in PaperExchange, acknowledging the company needs to help in developing its business model further -- a role ICG is uniquely positioned to play. "We have accumulated a lot of knowledge about b-to-b that has helped us build some leading b-to-b businesses," said Michelle Strykowski. "Our investment in PaperExchange is an educated bet based on that proven experience." Adam Feuerstein covers e-commerce for UpsideToday. Reach him at adamf@upside.com. If you would like to submit a letter to the editor regarding this story, email online@upside.com

Susan: I need your help in putting together a binder for Milbank Tweed/E&Y concerning one-way payment clauses in various gas and power contracts. Please see me tomorrow about this. Many thanks. Alan

Group, When entering a physical annuity (for example, for the sale of ST-Cali length in SP-15), we need to make that the annuity starts and ends for 2 days from now, for 1 mw, for HE 1, for the appropriate dollar amount. So today is the 22nd, consequently I would make any annuity for deals done today, start and stop on the 24th, for HE 1. I would like to observe this 2 day difference on every annuity that we make. So, if you need an annuity for an amount on the 23rd, make the annuity for the 25th. Please be sure that the start and stop times for the deal and for the strip match. An annuity will not flag an error in a mismatch between the strip and the information on top like a forward deal. We are currently having many problems settling annuitys. Extra comments in the comment sections can only help. PLEASE ask questions of senior team members or myself, and get this right! Thank you, Bill

OK gang here is the final versions. If there are any emergency changes I can try to make them at work tomorrow. I will bring a copy for each of you. Dylan At 03:24 PM 3/18/01 -0800, Jackson, James (JCJA) wrote: >Dylan, >Write up looks good to me. I added a new exhibit 6 worksheet to your >spreadsheet. It's a simple graph of X vs a. You may want to add it to the >report as an illustration of the relationship. I'm at work and was having >trouble adding an arrow to indicate which direction was good to BF Goodrich. >Since your the IT manager I thought it would be no problem for you. Anyway, >nice job on the report! >Jimmy <<BF Good Exhibits.xls>> > > > -----Original Message----- > > From: Dylan Windham [SMTP:dwindham@uclink4.berkeley.edu] > > Sent: March 17, 2001 5:33 PM > > To: Jeff.Dasovich@enron.com; JcjCal02@aol.com; > > jjackson@haas.berkeley.edu; guinney@haas.berkeley.edu > > Subject: BF Good Case > > > > > > > > Ok gang, > > > > Here is the corrected version. I made the changes that Jimmy and Mark > > suggested and added the insurance information that we came up with on > > Monday. Please make any changes by 9:00 pm tomorrow and send them to me > > so > > that I can get it ready to turn in. > > > > Thanks, > > > > Dylan << File: BFG Dylan 0317.doc >> << File: BF Good Exhibit 1.doc >> > > << File: BF Good Exhibits.xls >> - BFG Dylan 0318.doc - BF Good Exhibits Jimmy.xls

----- Forwarded by Steven J Kean/NA/Enron on 10/18/2000 12:22 PM ----- Stelzer@aol.com 10/18/2000 09:23 AM To: Steven.J.Kean@enron.com cc: Subject: Re: Advisory group Do you prefer Nov. 29 or Dec. 4 in DC?

C U @ 12. WILL U MAKE TENNIS RESERVATION FOR 4:30? --------------------------------------------------------------- Grant A. Cox ph: (713) 522-6300 Groundwater Services, Inc. fax: (713) 522-8010 2211 Norfolk, Suite 1000 e-mail: gacox@gsi-net.com Houston, TX 77098 ---------------------------------------------------------------

Thanks. I'll soften the expropriation language. I don't think they can disclose the $1 million on the product liability case, since the entire package appears to be one negotation, all the pieces of which likely have to be agreed to, or no settlement. But you're point's well taken and I'll try to acount for it in the answer. Finally, I can't see disclosing the fact that I'm infringing on someone's patent in my annual report. Seems like I'd have a hard time defending myself in court if they sued me, if I'd admitted it to it in my annual report. If I don't see you tomorrow, have a good week. Christine Piesco <christine.piesco@oracle.com> 11/26/2000 05:10 PM To: Jeff.Dasovich@enron.com cc: Subject: Re: Global Case Jeff, Sorry, I didn't realize we were attacking this one early over the holiday, and I was out of town until this afternoon. My conclusions differed from the attached write up on a few points, but I am not certain my thinking is the correct way. Here goes: On the expropriation: In the write up we say "We agree with the executive that Global should report the expropriation contingency in its 1994 report since both conditions included in FASB #5 were met: 1) sufficient information to assess that a loss is probable and 2) the loss could be reasonably estimated. Matuto took power in 1994 and it was known that he would nationalize major industries. " The book says "The imminence of an expropriation may be indicated by a public or private declaration of intent by a government to expropriate assess of the enterprise or actual expropriation of assets of other enterpises." I would argue that Matuto was not the government and therefore unable to enforce these assertions when he was running for office. It also says FASB 5 requires the two accrual criteria to be met. As I understand it, the government took over sometime last year and nationalization of resources was part of their platform. However, the announcement occured in mid-Feb 1995 that the government intends to nationalize the mining industry. Also, the taking over of the telephone company took place in January. Since both of these events happened in 1995, I would think they should not accrue in 1994 because the asset was not actually impaired in 1994, in fact the asset was fully functional and operational for the entire financial reporting period. I believe they should disclose that the possibility of expropriation exists in 1994, but I think they should not accrue.. I disagree that the company should cease use of the patent infringing technology, I believe that companies frequently make conscious business decisions to infringe upon patents. Since I agree that an accrual is not in order, perhaps a general disclosure regarding patent litigation should be made. The book states that "If there are several aspects of litigation, each of which gives rise to a possible claim, then the accrual criteria should be applied to each possible claim...." Thus I think we should break up the product liability suit into pieces. They've agreed to pay 1M for lost rentals. This should clearly be accrued, assuming it hasn't been paid yet. The tenants claims are expected to be settled for 1M, this too should be accrued. The surrounding property claims are not estimable, and therefore should be handled with a disclosure. Christine Jeff.Dasovich@enron.com wrote: > OK folks, here it is. Sorry for the delay, but those pesky questions ended > up being more detailed than I anticipated. Please take a quick look and > let me know if there are any comments---more ambiguities than usual in this > one. I'll await comments and finalize this evening. > > Jimmie/Dylan--my apologies, but last Wednesday evening, I found out that I > have to be in LA for a meeting tomorrow. If I make it to class at all > tomorrow, I won't get there until after the break. Could one of you print > out the case and bring it to class? If not, don' t sweat it, I'll email > him an electronic and turn in a hard copy to him on Tuesday. Sorry for any > hassle. > > Best, > Jeff > > (See attached file: Case 26-1 Global Industries.doc) > > ------------------------------------------------------------------------ > Name: Case 26-1 Global Industries.doc > Case 26-1 Global Industries.doc Type: Microsoft Word Document (application/msword) > Encoding: base64 > Download Status: Not downloaded with message - christine.piesco.vcf

At the risk of asking a stupid question, are we in breach under the project agreement? I didn't comb it, but I also didn't see anything that screamed breach to me. If we have a paid up call on 100 MW, that is probably something we would want to preserve. More to consider! Kau -----Original Message----- From: Clark, Barton Sent: Wednesday, December 12, 2001 11:42 AM To: Keenan, Jeffrey Cc: Mann, Kay Subject: RE: Austin Energy For now, Kay and I both will be working on this. I learned this am that the desk has a power deal with City of Austin that is in default ( not involving the LCRA hedge), so it may be beneficial to think about some kind of global workout with the City involving the $$ owed, the 8% interest held by Sandhill and the obligations under the power deal. When I have some time to read the project documents, and you get your info, all three of us should meet to formulate a response to the City's letter. -----Original Message----- From: Keenan, Jeffrey Sent: Wednesday, December 12, 2001 11:13 AM To: Zisman, Stuart Cc: Clark, Barton Subject: Austin Energy Stuart: Here is my shot at your memo. I will have the accounting spreadsheet from Theresa Vox today. Jeffrey << File: Sandhill Memo Keenans makup to Zisman.doc >>

Mike, Attached is the "Net Works" section we discussed. In addition, could you ask the Online team for the missing information in this Jeff Skilling earnings release quote. We need to distribute the earnings release draft early this afternoon. "In the second quarter, EnronOnline registered a ______% increase in volumes and a _____% increase in transactions versus the first quarter." Thanks, Mark

These are done. Lester Rawson 04/19/2001 11:09 AM To: Kate Symes/PDX/ECT@ECT cc: Subject: Annuites Kate, Please approve and autoschedule 3/31 Annuity 586477 3/31 Annuity 586498 3/31 Transmission 586421 Les

The information contained herein is based on sources that we believe to be reliable, but we do not represent that it is accurate or complete. Nothing contained herein should be considered as an offer to sell or a solicitation of an offer to buy any financial instruments discussed herein. Any opinions expressed herein are solely those of the author. As such, they may differ in material respects from those of, or expressed or published by on behalf of Carr Futures or its officers, directors, employees or affiliates. ? 2001 Carr Futures The charts are now available on the web by clicking on the hot link(s) contained in this email. If for any reason you are unable to receive the charts via the web, please contact me via email and I will email the charts to you as attachments. (See attached file: AGAMAIL.pdf)

The following additions and modifications to Stack Manager will be effective as of Saturday September 8, 2001. Stack Manager Modifications Inactivate All Stack - In addition to the individual Activate/Inactive Stack buttons, there is now an Inactivate All Stack button. Similar to the Suspend All button, this button will inactivate the trader's stack on all active products. Any existing top of stack limit orders will continue to post to the website and remain transactable. See screen shot below: Inactivate All Stack button on far right. Please note that we have switched the positions of the suspend and inactivate buttons in Stack Manager. Fill Order - If a product is set up as either Restricted Top of Stack or Top of Stack the trader now has the ability to automatically fill any order that is at the top of the stack. In order to fill a limit order that is at the top of the product's stack, which will appear in pink, the trader should right click anywhere on the stack window and choose "Fill order". The volume filled on an order will be that which is offered by the trader. In order to fill the complete volume of the order, the trader will need to adjust the volume in his stack. Floated Stack windows - If the stack is inactive on a product, the price and volume fields on the my products tab will continue to be blank. On the depth window and floated stack window of these products the trader's prices will be in gray and italics. Children of products that have inactive stacks will not be gray and italicised in the floated stack windows and will not see the calculated prices. No Auto Inactivate Stack - It is now possible to keep a product active even if the trader is not logged into Stack Manager. If the trader wishes to enable this functionality on the upper right corner of the product properties page the trader should choose "No Auto Inactivate when Stack Manager is down". Changes regarding Suspension of products Stack Manager will inactivate products rather than suspend them in the following cases: ? Market Close - If a product is active at the end of its trading hours its stack will automatically become inactive rather than suspending. In order to keep a product's stack active past the set trading hours, the trader should choose "Keep Awake" next to the trading hours section of the product properties page. ? Auto Suspend now inactivates stack - On a product with the Auto Suspend function enabled to monitor the price changes on the product, the product's stack will be inactivated if the Suspend at level is reached. This feature can be used by checking the Enable box on the product properties page under the Auto Suspend section. ? Logging Out of Stack Manager- When you log out of Stack Manager without inactivating or suspending your products, the system will now inactivate your products rather than suspending them. <Embedded Paintbrush Picture>

Mark - I'm sending you two things that I hope will clarify some of these discrepancies. The first is an updated Real Time spreadsheet for 3/19 that shows the volumes for deal 553219. Bill Williams and I looked over their spreadsheets and could not find this deal in the 3/16 sheet - so I'm still wondering why EES thinks this deal should be in at a different date and price. The second document is a modified version of the sheet you sent me. In it, I answered the questions I could and changed things I knew were wrong. I also asked questions on deals where I can't find a discrepancy between my sheet and EnPower. Please keep in contact on this issue - I know this is only a start. Kate 503-464-7486 Mark Confer 03/29/2001 05:56 PM To: Kate Symes/PDX/ECT@ECT, Brooklyn Couch/HOU/EES@EES, Virginia Thompson/PDX/ECT@ECT cc: Subject: March EES Differences I will be out of the office on Friday, attached is the spreadsheet of the differences noted so far between EES & EPMI and where we are with them. Since the GL needs to be booked by the end of the day Wednesday I am sending this file to everyone. Please take a look and let me know if more information is needed. Kate you asked about deal #553219.1 EES shows this deal on the 16th at a price of $125. They do not see this deal on their real time sheets for the 19th. Thanks, Mark

I will forward this to Dutch..... Dutch try it now on your NT machine...... call if probs.... x57862 -----Original Message----- From: Pechersky, Julie Sent: Tuesday, April 17, 2001 1:23 PM To: Sieckman, John Subject: FW: John, Becky re-enabled Dutch Quigley so that he is on both the old servers and the Digital. What is the next step? -----Original Message----- From: "Becky McGraw" <becky@cqg.com>@ENRON [mailto:IMCEANOTES-+22Becky+20McGraw+22+20+3Cbecky+40cqg+2Ecom+3E+40ENRON@ENRON.com] Sent: Tuesday, April 17, 2001 1:20 PM To: Pechersky, Julie Subject: RE: Julie, I re-enabled his old system that went off last night. Both systems will be functional with the old one going off on April 30th. If you need longer, just let me know. I have been putting the latest upgrades to allow both systems to run for at least two weeks before cancellation of the old one. If you would like that to be a 30 day parallel, then I can do that to be on the safe side....actually I will just start doing that so that there is plenty of time for the transition. Becky -----Original Message----- From: Pechersky, Julie [mailto:Julie.Pechersky@enron.com] Sent: Tuesday, April 17, 2001 9:14 AM To: becky@cqg.com Subject: becky, I think that Dutch Quigley has been moved to the Digital feed, but is there a way to allow him to run simultaneously on both temporarily? Julie

I would like to attend.

As a follow-up to the recent Enron Corp. memorandum forming Enron Wholesale Services (EWS), effective today, we have reorganized the Wholesale Services Legal Department. The goals in reorganizing the department are as follows: (i) align the legal department as closely as possible with the business units, (ii) speed the flow of legal technology across the business units, and (iii) achieve greater efficiency and consistency across the organization. To this end, a legal policy group will be formed for EWS Legal, which will include Lance Schuler, Enron Americas; Mark Evans, Enron Europe; Mark Taylor, Enron Net Works; Alan Aronowitz, Enron Global Markets; Julia Murray, Enron Industrial Markets; and Bruce Lundstrom, Enron Global Assets. The organization chart for the EWS Legal Department is attached. More comprehensive organization charts will follow for each group. Mark Frevert and Mark Haedicke

Start Date: 4/12/01; HourAhead hour: 20; HourAhead schedule download failed. Manual intervention required.

Zimin, to generalize your initial comment, for any process dS = Mu(S,t)*S*dt + Sigma(S,t)*S*dz, the delta-hedging argument leads to the Black-Scholes PDE. This is true for any arbitrary functions Mu and Sigma, and so includes GBM, Mean Reversion, and others. There is no problem with this, because in the risk-neutral world, which is what you enter if you can hedge, the drift of the "actual" process is irrelevant. I believe your concern is that you would like to see a different option price for Mean Reversion process. This can only happen if the asset is not hedgeable, and so the actual dynamics then need to be factored into the option pricing. If you assume that the underlying is a non-traded factor, then the PDE will have to reflect the market price of risk, and the drift of the actual process is then reflected in the PDE. Vasant Zimin Lu 10/17/2000 05:20 PM To: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Vasant Shanbhogue/HOU/ECT@ECT, Pinnamaneni Krishnarao/HOU/ECT@ECT, Alex Huang/Corp/Enron@ENRON, Kevin Kindall/Corp/Enron@ENRON, Tanya Tamarchenko/HOU/ECT@ECT cc: Subject: Option Pricing Challenge Dear All, I have a fundamental question back in my mind since 95. Hope you can give me a convincing answer . Zimin --------------------------------- In deriving BS differential equation, we assume the underlying follows GBM ds= mu*s*dt + sigma*s*dz where mu is the drift, sigma is the volatility, both can be a function of s. Then we use delta hedging argument, we obtain the BS differential equation for the option price, regardless of mu. With the BS PDE and boundary condition, we can derive BS formula. Fine. No problem. Question comes here. Suppose the underlying is traded security and follows, say, mean-reverting process ds=beta(alpha-s)dt + sigma*s*dz Apparantly, this SDE leads to a different probability distribution. However, using the delta hedging argument, we still get the same BS differential equation, with the same boumdary condition, we get the same BS formula. Not fair ! From another angle, I can derive the distribution from the BS PDE for the underlying, which is the lognormal distribution. My thinking is: can I drive the distribution for any SDE from the option PDE ? The answer should be yes, but got to be from a different PDE rather than BS PDE. Then what we do about the delta-hedging argument ? Thanks.

---------------------- Forwarded by Gerald Nemec/HOU/ECT on 04/26/2000 05:31 PM --------------------------- From: Eric Gillaspie on 04/26/2000 01:59 PM To: Gerald Nemec/HOU/ECT@ECT cc: Subject: One More ---------------------- Forwarded by Eric Gillaspie/HOU/ECT on 04/26/2000 01:59 PM --------------------------- Dan L Junk@ENRON_DEVELOPMENT 04/26/2000 01:52 PM To: Eric Gillaspie@ECT cc: Subject: One More Funny ---------------------- Forwarded by Dan L Junk/ENRON_DEVELOPMENT on 04/26/2000 01:55 PM --------------------------- "Williams, Robert W (Ultratech)" <willirw@texaco.com> on 04/26/2000 11:42:38 AM To: "Dockery, Lewis C" <dockelc@texaco.com>, "Berry, Scott R" <berrysr@texaco.com>, "'Alyson Epstein'" <ae@datatechjobs.com>, "'Angela Morales'" <angelamorales@ev1.net>, "'Chris Ducker - ENRON Backbone Dude'" <cducker@enron.com>, "'Claudio - EDS Enron Dude'" <claudio.hexsel@enron.com>, "'Dan at Telecheck'" <dan.wilson@telecheck.com>, "'Dan Junk - ENRON'" <djunk@ei.enron.com>, "'Gilbert Garcia'" <gilbert.garcia@getronics.com>, "'Harold Plaisance - School Boy'" <harolopl@lcc.net>, "'James Preston - Home'" <dakota5@flash.net>, "'Jay at Baynetworks'" <jstandle@baynetworks.com>, "'Larry Schwab - Work'" <lschwab@neteffectcorp.com>, "'Mama Terris'" <myrnaterris@netzero.net>, "'Mark Rogers'" <mrogers34@yahoo.com>, "'Mary Vollmer'" <mvollme@enron.com>, "'Melvin Dumas'" <mdumas@sprintparanet.com>, "'Mike Nayes'" <michael.nayes@usa.xerox.com>, "'Saul Fuentes'" <saul.fuentes@abslink.com>, "'Soupy Campbell - ABB'" <bryan.c.campbell@us.abb.com>, "'Stacey Lenart - ENRON'" <slenart@ei.enron.com>, "'Tammy at ENRON'" <Tammy_Giffrow@ei.enron.com>, "'Terry Walker - ENRON'" <twalker@enron.com>, "'Woody - Kite Shredder'" <keith.underwood@eds.com>, "'dwwe@dynegy.com'" <dwwe@dynegy.com> cc: Subject: One More Check this out. You need speakers on your computer to get the full effect. <http://www.geocities.com/elian_true/> Bob Williams Texaco Global Information Services Telecommunication Division Tel: (713) 432-6564 Fax: (713) 432-2241 email: willirw@texaco.com

----- Forwarded by Richard B Sanders/HOU/ECT on 03/26/2001 05:32 PM ----- "Neal S. Manne" <NMANNE@SusmanGodfrey.com> 03/26/2001 05:27 PM To: "RSanders (E-mail)" <Richard.B.Sanders@Enron.com> cc: Robert Rivera <RRIVERA@SusmanGodfrey.com>, "Jonathan J. Ross" <JROSS@SusmanGodfrey.com> Subject: duke We argued the issue of additional document production this afternoon. Morris took it under advisement. The One Oak issue came up. Morris said he had not realized it involved an Enron entity. He will stay away from it. I assured him it was no problem. He also disclosed that he had presented some award to Ken Lay recently at an industry conference. Smith assured him that was no problem either. Neal S. Manne (713) 653-7827 nmanne@susmangodfrey.com - C.DTF

Hello, attached above is the documentation for deal # 85098. I will fax you deal #51353 as soon as the file room sends it to me. Thanks, Melissa (713) 853-1886

Today's IssueAlert Sponsors: [IMAGE] Southeastern Electric Exchange 2001 Utility Odyssey: Engineering & Operation/Accounting, Customer Billing and Finance Conference and Trade Show The Doral Resort Miami, FL Featured speakers include Wall Street Analysts Ed Tirello and Dan Ford and SEE Company Utility Executives Donald Hintz, Entergy Corp., Dennis Wraase, Pepco, and Bill Coley, Duke Power For full details: www.theexchange.org In an exclusive SCIENTECH PowerHitters Interview, Cody Graves, CEO of Automated Energy, Inc. and former Chairman of the Oklahoma Corporation Commission, discusses the status of restructuring in Oklahoma and nationwide. Graves also discusses the role Automated Energy is playing in providing an essential piece of the restructuring pie. See the questions Graves was asked at: www.ConsultRCI.com [IMAGE] The most comprehensive, up-to-date map of the North American Power System by RDI/FT Energy is now available from SCIENTECH. The Wall Map measures 42" x 72"; the Executive Map Set consists of 18 11" x 17" maps. Visit our website at www.ConsultRCI.com for a detailed description of these valuable maps and complete ordering instructions. [IMAGE] IssueAlert for April 6, 2001 Future Looks Dark for New York Market; NYSEG Outlines Energy Policy by Will McNamara Director, Electric Industry Analysis [News item from Reuters] New York State Electric & Gas Corp. (NYSEG), one of New York's seven utilities, said the state will not have enough megawatts to support a truly competitive wholesale electric market until 2008. NYSEG, in a report issued late Wednesday, warned there are "serious problems with (New York's) generation supply and a lack of transmission and pipeline infrastructure." The report challenges a market appraisal by the New York Independent System Operator (NYISO), which has run the state's wholesale power market since 1999. The NYSEG report, titled ``New York State's Electric Energy Crisis and NYSEG's Comprehensive Solution,'' criticizes the NYISO for not giving power consumers "price certainty" in the transition from local monopolies to an open, competitive market. Analysis: New York can now officially be added to the list of troubled energy markets, as market projections and fundamental structural problems spell out an alarming prognosis for the state as it heads into the summer season. However, unlike California, which basically faces a power supply problem that can be improved over time, New York arguably suffers from a more severe and permanent set of conditions that cannot be easily resolved. Like its West Coast counterpart, New York also suffers from a supply / demand imbalance and local resistance that thwarts new generation development. However, even if or when power supply can be increased in New York, the core load center of New York City still suffers from inherent transmission deficiencies that continue to take their own toll on the stability of the market. Various stakeholders in the New York market have now begun to place blame on each other in advance of what could shape up to be a very problematic summer. As noted, in its new report, NYSEG, a subsidiary of Energy East (NYSE: EAS), is especially critical of NYISO, which it says has contributed to soaring wholesale prices in New York. NYSEG also blames NYISO for outlining unrealistic goals for new power supply, not providing accurate price signals to energy customers, and for not doing enough to solve immediate problems. Yet, beyond the finger pointing, some essential facts can be established, on which both NYSEG and the NYISO apparently agree. According to data included in the NYISO report, between 1995 and 2000, while statewide demand in New York rose by 2,700 MW, generating capacity under contract in the state increased only by 1,060 MW. New York has not brought a new plant online since 1996, when a 200-MW plant opened in Brooklyn. It has been almost seven years since a 1,000 MW unit in Oswego, N.Y. marked the last plant to open upstate. In addition, New York suffers from severe transmission bottlenecks. Deficient transmission systems in central New York, around New York City and at the outlining borders to other states and Canada limit the amount of power than can be imported into the state. New York City is relatively isolated from the transmission grids that serve the rest of the state and must rely heavily on city-based power supply. New York City's load should reach 10,535 MW this summer alone, requiring 8,428 MW of in-city capacity, along with imports, to meet demand and provide a reserve margin. With a current capacity of 8,132 MW, there is a potential 296 MW shortfall. These projections presume normal weather conditions. If New York experiences a warmer-than-normal summer, the outlook gets even worse. Further, according to a report from New York's State Attorney General, between 1988 and 1998 capital improvements to New York's transmission system dropped from $307.7 million per year to $90 million per year. At the present time, only one major addition to the transmission system in the state is scheduled. A proposed underwater line linking Long Island to Connecticut would provide Long Island with about 300 MW of additional power and increase its import capacity by about 4 percent. Unless this transmission expansion is expedited, it is not scheduled for operation until 2002. Consequently, given all of these factors, power supplies in New York most certainly will be strained this summer when warmer temperatures drive up the use of air conditioners, pushing demand to annual highs. While NYSEG and the NYISO may agree on the nature of New York's problems, a contentious debate has emerged with regard to finding a solution. In its own proposal, released in early March, the NYISO focused on building new generation, expediting siting processes, improving transmission lines, and conservation efforts. In one of its key proposals, the NYISO urged the creation of 8,600 MW of new electricity (roughly 30 percent of New York's peak demand) by 2005, with up to 5,000 MW of that generation being made available by the end of 2001. NYSEG immediately denounced the plan for "falling short in its assessment of the magnitude of the crisis" and issued its own proposals in its recent report. For instance, NYSEG officials said that NYISO had "grossly oversimplified the situation" and that, considering the tenuous state of power construction in New York, the objective of establishing 8,600 MW by 2005 was "extremely unrealistic." In turn, NYSEG says that a robust wholesale electric market will not materialize in New York until 2008, assuming that measures to repair the problems in the state are taken immediately. In early March, NYSEG released the "NYSEGPlan," outlining six steps which it believes "contain the real solutions to ensure a successful transition" to a competitive market in New York. In summary, the NYSEGPlan includes: Streamlining the siting and approval process to build new generating plants. Adding to the state's transmission capacity. Adding to the state's natural-gas supply infrastructure. Creating a regional transmission organization to increase supply liquidity. Reinforcing the need for wise energy use by all consumers, by encouraging interruptible load where feasible, and building the technological infrastructure necessary for real-time pricing. Approving the NYSEG Price Protection Plan, in which electric rates would be frozen for seven years, by July 1, 2001. However, while NYSEG criticized NYISO for espousing unrealistic goals, the same obstacles inherent in New York's market might also thwart its own energy plan. For instance, topping the list of NYSEG's six steps is an emphasis on establishing new generation in New York through a streamlined siting and approval process. This may be easier said than done. As I mentioned in my 3/22/01IssueAlert, the opposition to new power plants in New York equals the lobbying force that community groups in California wield. In that column, I discussed the fact that Sithe Energies has downscaled a proposed plant in Ramapo, N.Y. (from an 827-MW combined-cycle facility to a 510-MW peaking unit) due to opposition raised by local residents. In addition, just yesterday, a New York Supreme Court judged blocked efforts by the New York Power Authority (NYPA) to build two 44-MW gas-fired generators in the borough of Queens. The Supreme Court judge order NYPA to "cease all construction on the units" and ruled that the power authority violated state environmental-review laws to its efforts to rush the plant into service by June. In response, NYPA has said that the plants
*along with nine others that it is hoping to build throughout New York City
*are needed to prevent power outages this summer. NYPA continues to face fierce opposition from community groups (many of them launching lawsuits) who do not want the generation units in their neighborhoods. Consequently, the supply / demand imbalance in New York is a very serious matter, and one that residents in the state may not fully appreciate unless blackouts occur. Until the core problem of insufficient transmission lines surrounding New York State and New York City are solved, adding new power supply (assuming that generation development can move past community opposition) would not be enough to bring more balance to the market. In the interim, conservation efforts may truly be the only tool that New Yorkers can user to abate power outages this summer, but again the general public may not fully understand the need to reduce their power usage. New York basically has three options at this point to prepare for near-term problems. First, expedite the building of new generation sources (including distribution generation alternatives). This assumes that gas lines will be sufficient to import necessary fuel. Second, allow the economy of New York City to stagnate as a result of the supply / demand imbalance, which will drive residents out of the city and in turn reduce demand. And, third, focus on conservation efforts, which again may not work until residents are directly impacted by outages. The city may choose a combination of all three approaches or decide to focus on just one. However, to address the immediate concerns, it does not appear that New York has any options besides this three-tier approach. One point that bears mentioning is the similarity between California and New York regarding the position that both states took on divestiture. Although it is not completely accurate to say that either state officially mandated divestiture, utilities in both California and New York felt intense pressure to divest and submitted restructuring plans that included the sale of most of their power plants. NYSEG, the author of the new report on New York's power problems, is one utility that sold all of its generation assets and will remain only in the transmission business. This most likely creates a heightened sensitivity on NYSEG's part with regard to the power supply shortages presently facing New York. Again, we now have two states that represent the array of problems that can result when the vertical utility model becomes dismantled. Of course, it is not fair to say that divestiture is the sole source of the current problems in California and New York, but taking away a utility's ability to effectively control is own power supply costs certainly contributed to the vulnerability in both states. An archive list of previous IssueAlerts is available at www.ConsultRCI.com Reach thousands of utility analysts and decision makers every day. Your company can schedule a sponsorship of IssueAlert by contacting Nancy Spring via e-mail or calling (505)244-7613. Advertising opportunities are also available on our website. SCIENTECH is pleased to provide you with your free, daily IssueAlert. Let us know if we can help you with in-depth analyses or any other SCIENTECH information products. If you would like to refer a colleague to receive our free, daily IssueAlerts, please reply to this email and include their full name and email address or register directly on our site. If you no longer wish to receive this daily email, send a message to IssueAlert, and include the word "delete" in the subject line. SCIENTECH's IssueAlerts(SM) are compiled based on the independent analysis of SCIENTECH consultants. The opinions expressed in SCIENTECH's IssueAlerts are not intended to predict financial performance of companies discussed, or to be the basis for investment decisions of any kind. SCIENTECH's sole purpose in publishing its IssueAlerts is to offer an independent perspective regarding the key events occurring in the energy industry, based on its long-standing reputation as an expert on energy issues. Copyright 2001. SCIENTECH, Inc. All rights reserved.

Please forward your *anticipated* schedules for next week to me at your earliest convenience. Thanks in advance for your assistance. Joseph Alamo Sr. Administrative Assistant Government Affairs - The Americas San Francisco CA

Touche' The Wisdom of Will Rogers Don't squat with your spurs on. Good judgment comes from experience, and a lot of that comes from bad judgment. Lettin' the cat outta the bag is a whole lot easier 'n puttin' it back in. If you're ridin' ahead of the herd, take a look back every now and then to make sure it's still there. If you get to thinkin' you're a person of some influence, try orderin' somebody else's dog around. After eating an entire bull, a mountain lion felt so good he started roaring. He kept it up until a hunter came along and shot him... The moral: When you're full of bull, keep your mouth shut. Never kick a cow chip on a hot day. There's two theories to arguin' with a woman. Neither one works. If you find yourself in a hole, the first thing to do is stop diggin'. Never slap a man who's chewin' tobacco. It don't take a genius to spot a goat in a flock of sheep. Always drink upstream from the herd. When you give a lesson in meanness to a critter or a person, don't be surprised if they learn their lesson. When you're throwin' your weight around, be ready to have it thrown around by somebody else. The quickest way to double your money is to fold it over and put it back in your pocket. Never miss a good chance to shut up. There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest of them have to pee on the electric fence for themselves.

Kristin - you're right! I didn't realize you and your Dad had talked this morning. Sorry for the confusion! SRS "Skilling, Kristin" <kskilling@EHSHOUSTON.ORG> on 05/05/2000 11:48:03 AM To: "'Jeff.Skilling@enron.com'" <Jeff.Skilling@enron.com> cc: Subject: RE: Lunch today Hi, I thought that we decided to meet at Carrabais on kirby. Thanks KLS -----Original Message----- From: Jeff.Skilling@enron.com [mailto:Jeff.Skilling@enron.com] Sent: Friday, May 05, 2000 11:40 AM To: kskilling@ehshouston.org Subject: Lunch today Importance: High Hi again, Kristin. Just wanted to make sure you received my e-mail yesterday about meeting your Dad at Grotto (on Westheimer) at 1:00p. Send me a note back and let me know, ok? Thanks, SRS

Jeff double-checked and Deal 459985 is with PGET. Mike is checking on the others. Evelyn Metoyer@ENRON 11/15/2000 02:47 PM To: Kate Symes/PDX/ECT@ECT cc: Subject: 11-15 discrepancies Jeff Richter deal 459985 Check with Richter and see if the counterparty should be Sempra or PGET Mike Swerzbin deal 459788 Per Prebon counterparty should be Williams not Salt River. MIke Swerzbin deal 459789 Per Amerex cp should be Public Service of Colorado not El Paso Mike Swerzbin deal 460001 Amerex does not recognize it. mike Swerzbon deal 460002 Per Amerex term should be Q1'01 not Jan'01 Mike Swerzbin I am missing the following Amerex deal: Buy SCEM 25 mw of MID-C off-peak hrs for DEC' at $100.

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UN WIRE An Independent News Briefing about the United Nations ------------------------------------------------------- Thursday, 12 October, 2000 - http://www.unfoundation.org Today's UN WIRE Stories UN AFFAIRS 1 UNHCR: Apologizes To Ecuador For Asylum Gaffe 2 NOBEL PRIZE: UN Among Peace Prize Nominees HEALTH 3 TUBERCULOSIS: Public-Private Partnership Launches Global Alliance 4 TOBACCO: WHO Opens Hearings On Tobacco Control Proposals WOMEN, CHILDREN AND POPULATION 5 CHILD RIGHTS: War-Impacted Children Need More Help, UN Rep Says 6 EASTERN EUROPE: 50 Million Children Live In Poverty -- Report 7 RUSSIA: Two-Thirds Of Births Have Complications 8 GENDER INEQUITY: UN Committee Discusses Role Of Globalization ENVIRONMENT 9 CONSERVATION: World Group Calls For Environmental Safety 10 CLIMATE CHANGE: Scientists Use Algae To Store CO2 11 GENETIC ENGINEERING: Enviros Criticize Upcoming Merger 12 HAZARDOUS WASTE: Experts Draft New Guidelines ECONOMICS, TRADE AND DEVELOPMENT 13 POVERTY: UNDP Head Upbeat On Rich Countries' Aid Efforts 14 YUGOSLAVIA: World Bank Assessing Potential Aid 15 CHINA: US Works To Untangle WTO Bid 16 LATIN AMERICA: 224 Million Live In Poverty, UN Reports 17 LEBANON: UN Says Better Coordination Will Enhance Development HUMANITARIAN AID AND FOOD SECURITY 18 IRAQ: Egypt, Turkey, Syria Defy UN Sanctions HUMAN RIGHTS, JUSTICE AND DEMOCRACY 19 MYANMAR: UN Envoy Ends Talks With Government, Suu Kyi PEACEKEEPING AND SECURITY 20 MIDDLE EAST: Killing Of Israeli Soldiers Chills Peace Talks 21 ANGOLA: Annan Warns Of Conflict's Spillover Effects GET THE FULL SCOOP These stories and the complete issue of today's UN Wire can be found on the Web at http://www.unfoundation.org. The Web version includes hot-links to the complete text of cited articles, a fully searchable archive and easy access to recent issues. ACCESS RECENT ISSUES at http://www.unfoundation.org/unwire/archives/index.cfm UN Wire is a free service sponsored by the United Nations Foundation and its sister organization, the Better World Fund, which are dedicated to supporting United Nations efforts on behalf of the environment, population stabilization and children's health. UN Wire is produced independently by National Journal Group (http://www.nationaljournal.com). For the latest information and updates on UN Foundation activities, visit us on the web at http://www.unfoundation.org. -------------------------------------------------------------- Copyright 2000 National Journal. Telephone: (703) 518-8759 Fax: (703) 519-6377 Email: unwire@unfoundation.org Editor in Chief: Steve Hirsch -------------------------------------------------------------- To unsubscribe from the UN Wire Notification Service, go to http://www.unfoundation.org/unwirelogin/unf_listadmin.cfm Questions, concerns and comments can be sent to unwire@unfoundation.org. UN news and other submissions should be directed to unwire-submit@unfoundation.org. You are currently subscribed to unfoundation-unwire as: klay@enron.com To subscribe, visit the UN Wire Web site at: http://www.unfoundation.org/unwirelogin/unf_listadmin.cfm and enter your email address. Registration is required. To unsubscribe send a blank email to the address below: leave-unfoundation-unwire-290701M@lists.unfoundation.org --------------------------------------------------------------

Nothing with or pertaining to ASpen to the best of my knowledge. Kay C. Young Legal Specialist Enron North America Corp. 713-853-6794 Phone 713-646-3393 Fax kay.young@enron.com Tana Jones 04/17/2001 04:20 PM To: Kay Young/HOU/ECT@ECT cc: Subject: Aspen Technologies NDA Any conflicts ----- Forwarded by Tana Jones/HOU/ECT on 04/17/2001 04:20 PM ----- Bob Shults/ENRON@enronXgate 04/17/2001 03:27 PM To: Tana Jones/HOU/ECT@ECT cc: Subject: Aspen Technologies NDA Please email a two way NDA to Aspen Technologies Wayne Bartel wayne.bartel.petrovantage.com Aspen Technologies 10 Canal Park Cambridge, Mass 02141 617 949-1116 fax 617 949-1412

just admit it -----Original Message----- From: Nelson, Michelle Sent: Friday, October 26, 2001 3:22 PM To: Maggi, Mike Subject: RE: on yourself? -----Original Message----- From: Maggi, Mike Sent: Friday, October 26, 2001 3:21 PM To: Nelson, Michelle Subject: RE: ok a crush -----Original Message----- From: Nelson, Michelle Sent: Friday, October 26, 2001 3:21 PM To: Maggi, Mike Subject: RE: what's an infatuation? you being a brat? that will never pass -----Original Message----- From: Maggi, Mike Sent: Friday, October 26, 2001 3:20 PM To: Nelson, Michelle Subject: RE: dont worry it is probably just an infatuation that will pass -----Original Message----- From: Nelson, Michelle Sent: Friday, October 26, 2001 3:19 PM To: Maggi, Mike Subject: RE: that makes you an eve bigger brat. -----Original Message----- From: Maggi, Mike Sent: Friday, October 26, 2001 3:18 PM To: Nelson, Michelle Subject: RE: I know -----Original Message----- From: Nelson, Michelle Sent: Friday, October 26, 2001 3:18 PM To: Maggi, Mike Subject: RE: YOU ARE A BRAT!!!! -----Original Message----- From: Maggi, Mike Sent: Friday, October 26, 2001 3:17 PM To: Nelson, Michelle Subject: RE: whatever, ok if thats what you want me to believe -----Original Message----- From: Nelson, Michelle Sent: Friday, October 26, 2001 3:16 PM To: Maggi, Mike Subject: RE: quit flattering yourself. it was a male looking at you and he told me! how do you feel about that? -----Original Message----- From: Maggi, Mike Sent: Friday, October 26, 2001 3:16 PM To: Nelson, Michelle Subject: RE: stop lying, you dont have to be embarrased, I understand -----Original Message----- From: Nelson, Michelle Sent: Friday, October 26, 2001 3:15 PM To: Maggi, Mike Subject: RE: then i guess it is a fact that a male was staring at you. i am laughing so hard!!!! :) -----Original Message----- From: Maggi, Mike Sent: Friday, October 26, 2001 3:13 PM To: Nelson, Michelle Subject: RE: I wasnt accusing you I was just stating a fact -----Original Message----- From: Nelson, Michelle Sent: Friday, October 26, 2001 3:13 PM To: Maggi, Mike Subject: RE: i can't tell because then you would acuse them of staring at you too. -----Original Message----- From: Maggi, Mike Sent: Friday, October 26, 2001 3:11 PM To: Nelson, Michelle Subject: RE: no I dont know how it works, and who told you -----Original Message----- From: Nelson, Michelle Sent: Friday, October 26, 2001 3:10 PM To: Maggi, Mike Subject: RE: don't you have messenger -----Original Message----- From: Maggi, Mike Sent: Friday, October 26, 2001 3:09 PM To: Nelson, Michelle Subject: RE: nobody told you, dont lie -----Original Message----- From: Nelson, Michelle Sent: Friday, October 26, 2001 3:08 PM To: Maggi, Mike Subject: RE: damn you caught me. and for your information, i didn't notice it...someone told me about it! so whatever to you mr. allergy man!!! -----Original Message----- From: Maggi, Mike Sent: Friday, October 26, 2001 3:07 PM To: Nelson, Michelle Subject: if you werent always staring at me you wouldnt notice my eyes

Attached is the final version of the mechanical maintenance agreement.

Mark, Please review my attached change to the confirm. This makes it clear that if we don't like their changes to the Master we will not accept them and the existing Master still governs. If acceptable I will forward back to AEC. Russell, AEC is reviewing the Master and indicated they would have comments within a week or so. The plan is now to execute this confirm and follow up with the new master. The credit language that was in the earlier version has been removed.

The subject volume was revised from 35,517 to 38,488 effective 12/5/00. Bob

Shirley, Sanjeev will come for an informal interview on Friday. He will talk for 10-15 minutes to the following people: 1. Stinson 2. Grant 3. Krishna 4. Tanya 5. Zimin 6. Paulo 7. Vasant 8. Amitava I shall talk to him for 5 minutes Vince ---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 05/11/2000 07:59 AM --------------------------- "Khanna, Sanjeev" <sanjeev.khanna@et.pge.com> on 05/10/2000 11:29:27 PM To: "'vkamins@enron.com'" <vkamins@enron.com>, "'vkaminski@aol.com'" <vkaminski@aol.com> cc: Subject: Confirmation of meeting Vince: Thanks for introducing me as a speaker at the Power2000 conference. As per our conversation, please find enclosed my resume. I will come to your office at 1:30 PM, Friday, May 12, 2000. Please let me know if the dress code is casual or formal. Thanks again for taking the time to talk to me regarding opportunities at Enron. <<ResumeSanjeevKhanna.doc>> ___________________________________________________ Sanjeev K Khanna, M.Sc., P.Eng. Director, Quantitative Risk Management PG&E Energy Trading 1100 Louisina Street, #1000 Houston, TX 77094 Email: Sanjeev.Khanna@et.pge.com Tel: (713) 371 6647, Pager 800-526-4095, Cell (281) 302-8468 ___________________________________________________ PG&E Energy Trading and any other company referenced herein which uses the PG&E name or logo are not the same company as Pacific Gas and Electric Company, the California utility. These companies are not regulated by the California Public Utilities Commission, and customers do not have to buy products from these companies in order to continue to receive quality regulated services from the utility. - ResumeSanjeevKhanna.doc

i went ahead and forwarded your msg to tim - although i already told him that the 16 yr old was invited - he didn't like that too much From: Bryan Hull 01/05/2001 11:09 AM To: Eric Bass/HOU/ECT@ECT cc: Subject: Re: Happy Hour How about Christa and that 16 year old? Enron North America Corp. From: Eric Bass 01/05/2001 11:06 AM To: Bryan Hull/HOU/ECT@ECT cc: Subject: Re: Happy Hour everyone on the list - as well as shanna and louise. you can invite others if you want From: Bryan Hull 01/05/2001 10:33 AM To: Eric Bass/HOU/ECT@ECT cc: Subject: Re: Happy Hour Who is going to the Happy Hour?

Steve, Jeff and Ray had to postpone the conference call with the media that was scheduled earlier today. The call has been rescheduled for 5:00pm CST this afternoon. Employees can click on the link below to listen to the call: http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=ENE&script=2400&item_

Laura, Here's what I received from the Analyst program. Robin ---------------------- Forwarded by Robin Rodrigue/HOU/ECT on 02/23/2001 10:33 AM --------------------------- Enron North America Corp. From: Ivonne Brown @ ENRON 02/23/2001 08:56 AM To: Robin Rodrigue/HOU/ECT@ECT cc: Subject: Relocation to Chicago Robin, You will be receiving a cost-of-living adjustment of 20% when you relocate to Chicago plus an additional $1,000 per month. In addition, we will provide relocation assistance for your household goods and car transportation. Allowance $3,500 will cover expenses which are outside the movement of your household goods. (This amount is before taxes.) Household goods move Option 1 - Full service of household goods Option 2 - Self move / $1,500 (This amount is before taxes.) Please let me know if you need additional information. Thanks, Ivonne Brown

WE HAVE A DEAL! Attached are the final communication materials. The only changes are the addition of legend language at the end of the external Q&A, employee email, messages and talking points, and a change in one question in the external and internal Q&A (Q: When will the 10Q be filed? A: It is scheduled to be filed on November 14.) Please forward these materials to your direct reports as briefing materials for floor/staff meetings. We will run the ETV ad notifying employees to check their email for an important video message through the weekend and Monday morning. Call me if you have any questions. Thank you all for your assistance in communicating these messages with employees. Karen x39757 Attachments: -- press release, issued by Dynegy and posted on www.enron.com in the Press Room -- timeline for communication rollout -- key messages for use with internal and external audiences -- talking points for use with employees -- email to employees w/ link to Q&As -- video script (to be viewed by employees on the intranet: UpFront!) -- external Q&A for use with the media and external audiences -- internal Q&A for background use in meetings with employees -- intranet Q&A posted on the web for employees

- CiavaldiniAnn.doc

This will be a unilateral not bilateral as stated in the email. -----Original Message----- From: Bennett, Peter Sent: Monday, July 09, 2001 1:33 PM To: Nemec, Gerald Cc: Hilgert, Chris Subject: Re: Confidentiality Agreement Importance: High Gerald, We would like to put in place a bilateral confidentially agreement between ECS and Ormat to discuss our Structured Horsepower Concept. In the near future, we would like to amend this agreement to discuss specific deals with Ormat that we are considering. The information for Ormat is below. Thanks, Peter Ormat H.M. Leibowitz 980 Greg Street Sparks , NV 89431-6039 (775) 356-9029 hleibowitz@ormat.com

yes. have you heard the latest. S&P downgraded us triggering 3.3 billion in debt due and they have halted trading at $1.1. -----Original Message----- From: Hayslett, Rod Sent: Wednesday, November 28, 2001 10:02 AM To: Geaccone, Tracy Subject: Fw: Five Day Rolling Forecast This is for enron cash only I presume? -------------------------- Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net) -----Original Message----- From: Garcia, Paul <Paul.Garcia@ENRON.com> To: Grajewski, Joseph T. <Joseph.T.Grajewski@ENRON.com>; Williams, David <David.C.Williams@ENRON.com>; Reeves, Leslie <Leslie.Reeves@ENRON.com>; Sweeney, Kevin <Kevin.Sweeney@ENRON.com>; Price, Brent A. <Brent.A.Price@ENRON.com>; Bruce, Michelle <Michelle.Bruce@ENRON.com>; Smith, Jeff E. <Jeff.Smith@ENRON.com>; Hall, Bob M <Bob.M.Hall@ENRON.com>; Scott, Laura <Laura.E.Scott@ENRON.com>; Apollo, Beth <Beth.Apollo@ENRON.com>; Whiting, Greg <Greg.Whiting@ENRON.com>; Brackett, Debbie R. <Debbie.R.Brackett@ENRON.com>; Hodges, Georgeanne <Georgeanne.Hodges@ENRON.com>; Nelson, Kimberley <Kimberley.Nelson@ENRON.com>; Choyce, Karen <Karen.Choyce@ENRON.com>; Sommers, Jeffrey E. <Jeffrey.E.Sommers@ENRON.com>; Hayslett, Rod <Rod.Hayslett@ENRON.com>; Patel, Trushar <Trushar.Patel@ENRON.com> CC: DeSpain, Tim <Tim.DeSpain@ENRON.com>; Freeland, Clint <Clint.Freeland@ENRON.com>; Perkins, Mary <Mary.Perkins@ENRON.com> Sent: Wed Nov 28 09:44:29 2001 Subject: Five Day Rolling Forecast I would like to quickly recap the result of yesterday's meeting. Your five day forecast should be input into the Treasury Forecasting Intranet Website by 3PM daily. The website address is egf.enron.com. It is imperitive that we use the website so that all of the information is compiled in one location. Every payment is being scrunitized by senior management. Please understand that if your disbursements are not forecasted there is a good chance they may not be paid. In order to get the ball rolling, I ask that you input your five day forecast by 12 noon today. If you have any question or concerns do not hesitate to call me. Your cooperation is greatly appreciated. Paul Garcia 713-853-6502 FAX 713-646-2375

How do we look for a conference call today? I'll be open in about an hour. Kay

Sally, We need to start hiring asap. We'd like 2/3 people (Risk) on board by early/mid June. Super Saturday - what's the timing on that? Otherwise - how would I interview for external folks? B.

Our Saturday game will be at 11am at Pershing North, ( the field on the baseball diamond). Try to get there 20 minutes early. Sunday's makeup game is at 4:30 at the Scout House field. See you all there tomorrow morning. Terry

Andrea Sea Namaste Los Angeles, CA 90025 andreasea@yahoo.com To Mr. Ken Lay, I'm writing to urge you to donate the millions of dollars you made from selling Enron stock before the company declared bankruptcy to funds, such as Enron Employee Transition Fund and REACH, that benefit the company's employees, who lost their retirement savings, and provide relief to low-income consumers in California, who can't afford to pay their energy bills. Enron and you made millions out of the pocketbooks of California consumers and from the efforts of your employees. Indeed, while you netted well over a $100 million, many of Enron's employees were financially devastated when the company declared bankruptcy and their retirement plans were wiped out. And Enron made an astronomical profit during the California energy crisis last year. As a result, there are thousands of consumers who are unable to pay their basic energy bills and the largest utility in the state is bankrupt. The New York Times reported that you sold $101 million worth of Enron stock while aggressively urging the company's employees to keep buying it. Please donate this money to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings. Sincerely, Andrea Sea Namaste

Hey Bo, I was checking on some flights for myself and happened to look at one-way tickets from New Orleans. It looks like the refundable, no-advance purchase ticket is going to run you about $100 on Southwest...Lucky for you they do offer a senior citizen fare for $55 (age does have its advantages). Sissy By the way, I didn't even realise John Cleese and Denise Richards were in the movie...and evidently at some point Bond hijacks a submarine. Roger Ebert actually thought so much of the film he gave it 3 and 1/2 stars. We may have to watch this one at some point. "The World Is Not Enough" is a splendid comic thriller, exciting and graceful, endlessly inventive. Because it is also the 19th James Bond movie, it comes with so much history that one reviews it like wine, comparing it to earlier famous vintages; I guess that's part of the fun. This is a good one.

I sent it today.Please get w/ Bonnie ---she will handle but you make sure it is passed off to her. Thanks. Linda R Guinn 09/21/99 03:18 PM To: Richard B Sanders/HOU/ECT@ECT cc: Subject: Colonial Oil Was the letter, check and waiver of summons forwarded to Ratterree? If so, I would like a copy for my files. As previously discussed, please have Twanda carbon copy me on correspondence regarding the matters you assigned me. Thanks.

Cantekin, I shall call you tomorrow to discuss the details. Vince "Cantekin Dincerler" <cantekin@mail.utexas.edu> on 09/18/2000 02:59:41 PM Please respond to <cantekin@mail.utexas.edu> To: <Vince.J.Kaminski@enron.com> cc: Subject: part-time work Hi Vince, I promised to get back to you on the part-time work issue. Sorry for the delay, I got back to Austin only last week. I talked to Ehud about this and he is OK with it. Just wanted to let you know. Best, ---------oOOo-----oOOo---------- Cantekin Dincerler Doctoral Candidate The University of Texas at Austin Graduate School of Business Department of Finance office: (512) 471-1676 fax : (512) 471-5073 home : (512) 472-5356 cell : (512) 680-5355 http://uts.cc.utexas.edu/~cantekin -------------oooO-----Oooo----------

Thanks. I'll take 12 magnums. And please order 2 cases of Coastal zin. I think that we'll likely come by either before or after the dome trip this weekend. I can pay you then. I'm not looking to make money on the grapes. Just looking for someone to finance the development of my land. And I'd have a vineyard to look at all the time! That'd be enough for me. Thanks for all your help. Nancy Sellers <Nancy.Sellers@RobertMondavi.com> 02/12/2001 02:47 PM To: "'Jeff.Dasovich@enron.com'" <Jeff.Dasovich@enron.com> cc: Subject: RE: The champagne is $10 per magnum. Of course you can order the zin - when do you want to pick it up? Thank you for making me laugh a lot. I have asked our vineyard guy for some names and he will be getting back to me shortly. He thinks the best person is probably someone from KJ who does a lot of stuff up there. Should have it soon. He was not overly encouraging in terms of making money! -----Original Message----- From: Jeff.Dasovich@enron.com [mailto:Jeff.Dasovich@enron.com] Sent: Monday, February 12, 2001 10:04 AM To: Nancy.Sellers@RobertMondavi.com Subject: Great to see you guys, and despite all the excitement, it was alot of fun. Hope that you made it back safely. Couple of things: I'd like to talk to several vineyard consultants, so if it ain't too much trouble, and you've got a name, I'd love to check around. Can I order two cases of coastal zin? What about the champagne? How much per magnum is it? Best, Jeff

For your information. Michelle ---------------------- Forwarded by Michelle Cash/HOU/ECT on 12/05/2000 02:36 PM --------------------------- "Notestine, Kerry" <KNotestine@littler.com> on 12/04/2000 10:34:33 PM To: "'knotestine@mciworldcom.net'" <knotestine@mciworldcom.net> cc: "Cummings, Vicki" <VCummings@littler.com> Subject: Recent ASAP on AAP issues I am sending you our most recent ASAP. Our ASAP's are our summaries of recent developments in employment matters. This ASAP addresses the recent changes in the regulations related to affirmative action plans. Employers which have contracts with the federal government, or contracts with federal contractors, must prepare and maintain affirmative action plans (AAPs) as long as they employ 50 or more employees, when the contracts are for $50,000 or more. The changes addressed in this ASAP are quite technical and require careful consideration. http://www.littler.com/nwsltr/asap_fed_affirmact.html Please double click on the above link to access the ASAP. Let me know if you have trouble accessing this ASAP, and I can send you a hard copy. You also may visit our website (www.littler.com) to review this and other publications by lawyers from our firm. Feel free to forward this link or print a copy and distribute it to others within or outside your company. In addition, let me know if you do not want to receive these updates, and I will delete you from my distribution list. Littler Mendelson is the nation's largest firm representing employers in employment and labor matters. With approximately 400 attorneys in 30 office, we address more issues related to employment than any other law firm. Please contact me if we can assist you with your AAP or other employment matters. Kerry E Notestine Littler Mendelson, PC 1900 Chevron Tower 1301 McKinney Street Houston, Texas 77010 713.652.4748 713.951.9212 (fax) knotestine@littler.com www.littler.com ---- This email 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 by reply email and delete all copies of this message. To reply to our email administrator directly, send an email to postmaster@littler.com Littler Mendelson, P.C. http://www.littler.com

a) year end reviews - report needs generating like mid-year documenting business unit performance on review completion - David to John; b) work out or plan generation for the NIM/Issues employees - David to John; c) HPL transition issues - ongoing. Officially transferred. Regards Delainey

---------------------- Forwarded by Ami Chokshi/Corp/Enron on 05/24/2000 12:10 PM --------------------------- Royal_B_Edmondson@reliantenergy.com on 05/24/2000 10:08:07 AM To: ami_Chokshi@enron.com cc: Subject: June 1 st (See attached file: HPL-June.xls) - HPL-June.xls

hey give me a call -----Original Message----- From: Denetsosie, Troy Sent: Monday, April 22, 2002 10:23 AM To: Parks, Joe Subject: Sid Richardson Joe, Who was your contact at Sid Richardson? Would you happen to have a phone number? Let me know. Troy

Would you fax me a copy of the resolution. Regards, Debra Perlingiere Enron North America Corp. Legal Department 1400 Smith Street, EB 3885 Houston, Texas 77002 dperlin@enron.com Phone 713-853-7658 Fax 713-646-3490

World Business Briefing Asia: India: Power Dispute The New York Times, 05/31/01 World Watch The Wall Street Journal, 05/31/01 Spin Control: Spain Hits Turning Point At Windmill Parks --- Some Are Well Planned, Others Scar the Landscape --- EU Pride and Promises at Stake The Wall Street Journal Europe, 05/31/01 Struggling Enron plant in India stops production Houston Chronicle, 05/31/01 BP Doesn't Expect Lead Role In Saudi Gas Proj - Source Dow Jones Energy Service, 05/31/01 Regulators want state trade-off for caps / Davis asked to give up control of power lines The San Francisco Chronicle, 05/31/01 Plan would have biggest customers pay Edison's debt The San Francisco Chronicle, 05/31/01 INDIA'S MSEB DOUBTFUL OVER DABHOL'S 10 PCT TARIFF CUT PROPOSAL Asia Pulse, 05/31/01 India: Interest rate dichotomy growing wider Business Line (The Hindu), 05/31/01 India: Enron willing to continue project Business Line (The Hindu), 05/31/01 INDIA'S DABHOL SHUTS POWER PLANT, TO ISSUE TERMINATION NOTICE Asia Pulse, 05/31/01 That's right, double-click there, sir Techies, executives cross-pollinate as reverse mentoring gains ground The Globe and Mail, 05/31/01 Enron Willing To Continue India Power Project - Report Dow Jones International News, 05/31/01 Business/Financial Desk; Section W World Business Briefing Asia: India: Power Dispute By Saritha Rai (NYT) 05/31/2001 The New York Times Page 1, Column 1 c. 2001 New York Times Company The Dabhol Power Company, the Enron Corporation's unit in India, stopped generating electricity at its $3 billion power plant after its sole customer, the utility of the Indian state of Maharashtra, stopped buying power on Tuesday. The halt in power generation was the latest move in a months-long dispute that has cast doubt on the future of Dabhol's $2.9 billion power project in India, the largest foreign investment ever in India. Jimmy Mogul, a spokesman for Enron, which owns 65 percent of Dabhol, said the company remained open to discussions in the dispute, which involves overdue payments for power. Dabhol had issued a preliminary termination notice on May 19 saying it was pulling out of the Indian project. Final termination requires a contractual six-month cooling-off period. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. International World Watch Compiled by David I. Oyama 05/31/2001 The Wall Street Journal A10 (Copyright (c) 2001, Dow Jones & Company, Inc.) BRIEFLY: -- Japan's NEC said it will cut back a plan to expand chip-production capacity at its Shanghai, China, joint venture because of the global chip industry's downturn. -- Taiwan's Finance Ministry said the island's domestic banks will be allowed to open representative offices in China. It said the banks will be allowed to conduct market research in China, but they won't be able to establish branches. -- In an effort to placate creditors of Asia Pulp & Paper, part of Sinar Mas Group, the Indonesian Bank Restructuring Agency said it has "no present intention to immediately foreclose or liquidate" Sinar Mas assets that it has taken as security. -- Dabhol Power, a unit of U.S. energy company Enron, said the Maharashtra State Electricity Board, its only customer, has stopped ordering electricity from Dabhol's $3 billion power plant. But Dabhol said that the plant remains operational according to its contractual obligations. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Column One Spin Control: Spain Hits Turning Point At Windmill Parks --- Some Are Well Planned, Others Scar the Landscape --- EU Pride and Promises at Stake By Keith Johnson Staff Reporter 05/31/2001 The Wall Street Journal Europe 1 (Copyright (c) 2001, Dow Jones & Company, Inc.) BARBATE, Spain -- The economy of this fishing community is as battered as its town hall, where dim lights flicker in the hallways and chips of paint flake off the walls. Up in his second-floor office, the mayor, Juan Manuel de Jesus, has an in-tray overflowing with troubles: a third of the town out of work; a desperately needed fishing treaty with Morocco; rising crime and drug abuse; and a big municipal budget deficit. But this morning, his thoughts revolve around a different irritant: windmills. "Look at this," he says, unfolding on his desk a map of the countryside surrounding Barbate. Large yellow and green splotches -- a military training zone and a swarm of natural parks -- hem in the seaside town, leaving just a pair of white slivers. "Those are the only areas open for development," he says. His finger stabs one of the white areas near the Atlantic coast. "And that's where they're putting the windmills -- the one place we could have built a hotel, a resort, something that would bring us some jobs." The mayor sees the windmills as a blight on the land, driving away tourists and crimping more lucrative projects. Local environmentalists fret that the installation, with its rows of steel towers and sharp metal blades, will play havoc with migrating birds and mar the coastline as they did in nearby Tarifa, a windsurfing mecca on the Strait of Gibraltar. Tilting at windmills is nothing new in the land of Don Quixote. But wind power doesn't have to be like this. At the opposite end of the country, more than 1,000 kilometers to the north in the green hills of Navarra, 28 steel windmills perch on a ridge over a landscape that resembles a nature reserve. Cows nap in the shade of the towers, and the narrow gravel access roads follow original grazing trails. Electricity is transformed in a nearby substation built to resemble the neighboring stone houses. The approach -- the result of close cooperation between business and government -- has won accolades from environmentalists and business leaders alike. Spain, the world's No. 3 producer of wind power, has become a battleground for two competing models of developing the business: the hodgepodge of unsightly wind parks seen in the south and the carefully planned and unobtrusive installations found up north. The conflict is intensely local, with the country building enough new windmills to more than triple its wind-power capacity by 2005. But the model that prevails will have consequences far beyond the Iberian Peninsula. Anxious to clean up its environment and limit its dependence on imports of natural gas, the European Union has committed itself to generating 22% of its electricity from renewable energy sources by 2010. Yet less than 5% of the EU's electricity output now comes from windmills, thanks largely to poor execution and a brewing backlash. If Spain -- with its open spaces and relatively low population density -- can't sell the public on windmills, the EU will likely find it difficult to convince Europeans to accept more ambitious forms of alternative energy, such as biomass plants, which turn agricultural, animal and human waste into energy. The failure could also call into question the EU's commitment to the 1997 Kyoto global-warming treaty, which U.S. President George W. Bush has been roundly criticized in Europe for rejecting. Few expected this turn in events back in 1996, when the EU first set a more modest 2010 target. At the time, wind power looked like the fresh breeze of the future. Soon, the union's most green-minded states, led by Germany and Denmark, were busily building wind parks to the applause of environmental groups, which saw wind power as a clean alternative to nuclear power and coal-burning power plants. But early enthusiasm led to shortsighted projects, leaving the European landscape littered with inefficient wind parks. Germany, for example, quickly became the world's largest producer of wind power, with 6,113 megawatts of capacity installed at the end of last year. But the breakneck growth has gobbled up most of the available sites for windmills, prompting government officials to promise more careful planning procedures. Opposition is also building in Denmark, forcing the government to rethink a wind-power subsidy program. All of this spells trouble for wind power, which relies heavily on government funding. "Lower-quality projects are mucking up the panorama," says James Stettler, a renewable energy analyst with Dresdner Kleinwort Wasserstein in London. Finding the right balance between wind development and environmental care would go a long way toward assuaging public opposition -- notably in wind-rich but windmill-poor Britain and Ireland -- and toward avoiding California-like blackouts in Spain in the years to come. The danger is real, says Rafael Miranda, chairman of Spanish utility Endesa SA, who this month urged the government to ease restrictions on new investments in power plants or risk outages. One way forward can be seen in the hills of northern Navarra, at the installations of Energia Hidroelectrica de Navarra SA, a Spanish company that specializes in renewable energy. On a recent afternoon, EHN official Enrique Huidobro races his four-by-four past two huge trucks on a dusty track leading up to Alaiz, an 85-turbine park built in 1999. EHN's head of civil works, Mr. Huidobro is working overtime -- patching the land, clearing debris and replanting grass around the park's latest additions, 10 big 660-kilowatt turbines whose 23-meter-long blades whoosh over the landscape with barely a whisper. EHN is Spain's largest wind-park developer. The company has installed more than 600 megawatts of wind capacity in Spain over the past five years, mostly in Navarra. Its parks have won accolades from environmental groups and business leaders alike, and company-sponsored surveys show public approval ratings above 80%. One of its subsidiaries, Energias Eolicas Europeas, this spring landed the biggest-ever financing package in the wind sector: some 900 million euros from five European banks to build 31 wind parks in Don Quixote's La Mancha in south-central Spain. "The extra costs from taking care of the environment aren't questioned here," says EHN's chief executive, Esteban Morras, seated beneath oil paintings of modern windmills in his office in Pamplona. "That's the most profitable investment there is in the long run." Mr. Morras isn't just paying lip service to the green lobby. A former attorney and civil servant, he spent years working on water-resource and energy issues in the governments of his hometown and, later, the region. So when EHN was founded in 1989 and he became CEO, he was merely taking his passion to the private sector. Fresh from his morning English lesson -- EHN is expanding into the U.S., Eastern Europe and Latin America -- Mr. Morras outlines what he sees as the keys to making wind power palatable: careful planning, environmental sensitivity and the latest in technology. Then he grabs a pair of binoculars and peers out the window behind his desk. On the crest of a hill in the distance is EHN's newest prototype, a 1.3-megawatt turbine. It's 10 times bigger than the turbines first installed in southern Spain, yet its 27-meter-long blades spin in much gentler breezes. "With more machines like that," Mr. Morras says, "we'll have parks that are less cluttered -- and more reliable and economical." The company's success owes a lot to the region's government. Navarra helped create EHN and still owns 48% of it. Navarra also approved generous tax credits for companies that invest in renewable-energy projects and established coherent and far-reaching planning procedures for wind power across the region. The strategy transformed the region from an also-ran in wind power to a model of development in five years Sitting in an office overlooking Navarra's first wind park, the regional official who guides the program reflects on the strategy. "It's not just about megawatts," says Nuria Iturriagagoitia, Navarra's director of industry, trade, labor and tourism. "You have to consider how it affects employment, education, agriculture, even tourism. The key was having a clear idea from the beginning on how to promote and implement alternative energies. EHN is the vehicle of our energy policy." She ticks off details of the 1995 energy plan. "The government studied 72 sites across Navarra," she says, sketching a map of the shield-shaped region on a piece of paper. "It ruled out 43 of them: They were virgin territory, or too close to natural parks, even though they were some of the best, windiest sites," she explains, crossing out huge swaths of the hilly province. In the end, 16 sites made the cut. But Navarra's strategy for quelling opposition didn't end there. After EHN began its detailed planning, Mr. Morras held weekly public meetings with environmentalists, developers and local residents. "We discussed every curve of every road," he says. "Everybody was included." EHN, unlike many Spanish wind-park developers, also decided to have all its windmills assembled in local factories. Its new project in Castilla-La Mancha, for example, will be supplied by a newly built local Enron Corp. plant. The approach paid off. Today, all 16 sites have operational wind parks. Five years after the first turbines started spinning, some 35% of Navarra's electricity comes from wind power. That compares with about 2% for Spain as a whole, and 13% for Denmark, the world's fourth-largest wind-power producer. Having won over the citizens of Navarra, the regional government and EHN are now working to educate the whole country about wind power. They regularly bus students from across Spain to their wind parks, some of which have become tourist attractions. Compare this with the haphazard patchwork of windmills cropping up down south in Andalusia, home to one of the country's first wind parks -- the sprawling installation of low-power windmills planted in Tarifa in 1992. In 1997, wind-power developers presented some 65 projects to the regional government. But Andalusia had no overall plan for exploiting the region's wind-swept coasts and inland hilltops. The region had no plan to oversee wind-power development, and no uniform criteria for installing or removing windmills. In the end, about 20 wind parks were approved with little thought to how much total energy they would generate for the region or how they would cumulatively affect the environment. The result: Trucks and cranes have chewed up many pristine areas, leaving behind 45-meter-high towers and concrete-block substations. Yet wind power still generates less than 1% of Andalusia's electricity. Soledad Bonet, a spokeswoman for Andalusia's environmental department, acknowledges that the region has no global planning procedure for new energy installations, including wind parks. Although the region's departments of environment, labor and industry all review wind-park plans, individual municipal governments are essentially free to award development licenses as they see fit. The crosswinds of these forces can be seen on a hilltop west of Barbate, where Desarrollos Eolicos SA, the wind park unit of engineering firm Abengoa SA, is busy erecting a row of windmills. More than 20 towers are already in place, and neighbors worry the looming turbines and gouged-out access roads will create another Tarifa. "They might be `green' and all," says Antonio Aragon, a taxi driver who gets an eyeful every time he wheels out of town. "But they sure do foul up the landscape something awful." This is "third-world" development, says Jose Luis Tirado, a 47-year-old sculptor who heads of a local group of environmentalists, businessmen and landowners who oppose the wind park. "We've spent decades calling for alternative energy sources," he says. "But doing it like this -- without any sort of planning -- is worse than doing nothing at all." Equally galling, he says, is that none of the wind-park developers active in the region have shifted any production to local factories, despite Andalucia's jobless rate of more than 20%. Back in Barbate's town hall, Mayor de Jesus sits at his desk and recalls how he invoked building-permit irregularities to stop work on the wind park earlier this year. A few months later, though, a local judge overruled him, arguing that Abengoa stood to lose its investment and that Barbate would have had to reimburse the company for the cost of the whole project. Construction has begun again. Abengoa declines to comment. Now, Mr. de Jesus leafs through a dossier of proposed economic initiatives for his town, then sets it aside with a sigh. His legal battle to halt construction looks hopeless, as does his chance of winning a new accord that will allow local fishermen to cast their nets in Moroccan waters. Unemployment and drugs are slowly killing his town, he says. "Those turbines are being built -- there's nothing we can do about that," he says. "But that's it. We're passing a new urban plan this year. There won't be any more [wind-park] licenses in the future, not here." Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. May 31, 2001 Houston Chronicle Struggling Enron plant in India stops production By LAURA GOLDBERG Copyright 2001 Houston Chronicle Enron Corp.'s India power plant has stopped production after its sole customer stopped ordering electricity. The Maharashtra State Electricity Board had not issued dispatch instructions for power from the Dabhol Power Co. since early Tuesday, Enron spokesman John Ambler said Wednesday. The move by the board is the latest in a series of actions and counteractions surrounding the $3 billion project, in which Enron has a 65 percent stake. Though the plant can't produce power unless it has dispatch instructions, the plant hasn't been shut down. Employees are there and the plant reportedly is operational -- ready to produce power. The board told Enron last week it was canceling a 7-year-old power purchase agreement. Enron says the board doesn't have the right to do so. Under the contract, the board is supposed to pay Enron whether it takes power or not, said Carol Coale, an energy analyst with Prudential Securities in Houston. But the board has already refused to pay for power, saying Enron isn't living up to its contract. Enron, which says it is meeting the contract's terms, is owed about $64 million for power sold in December and January. Days before the board gave notice to Enron, the company started proceedings to end the contract because of unpaid power bills. But six months must pass before Enron can end it. There is continued speculation that Enron is looking to sell its stake in the project. In a statement, Enron said Wednesday it is "still open to constructive discussions on solutions." Indian officials also have been talking to some of the country's states about purchasing electricity from Dabhol, Bloomberg News reported Wednesday. The project has faced ongoing problems, almost from the time of Enron's initial investment in it in the early 1990s. BP Doesn't Expect Lead Role In Saudi Gas Proj - Source 05/31/2001 Dow Jones Energy Service (Copyright (c) 2001, Dow Jones & Company, Inc.) DUBAI -(Dow Jones)- BP Plc (BP) doesn't expect to be awarded the lead role in Saudi Arabia's South Ghawar gas project, a source at the company told Dow Jones Newswires Thursday, requesting anonymity. Two weeks ago, Saudi Arabia announced its selection of international oil companies to develop three gas projects together, estimated to require investment of $25 billion-$30 billion. BP was selected, along with Exxon Mobil Corp. (XOM), Royal Dutch/Shell Group (RD), and Phillips Petroleum Co. (P), to develop the South Ghawar field, also known as Core Venture 1. Analysts estimate Core Venture 1 will need initial investment of between $15 billion and $17 billion. Industry sources have said that ExxonMobil and Shell are the strongest contenders to lead the project. The BP source said the leader of Core Venture 1 will get a 35% stake, Phillips a 15% stake, and the other two partners, 25% each. ExxonMobil has been appointed leader of Core Venture 2, or the Red Sea project, with a joint bid by Occidental Petroleum Corp. (OXY) and Enron Corp. (ENE) securing a minority stake. Core Venture 3, the Shaybah project, was awarded to a consortium of Shell, TotalFinaElf (TOT), and Conoco Inc. (COCA). Leaders for Core Ventures 1 and 3 have yet to be announced. Oil company executives are due to sign initial agreements Sunday. By Dyala Sabbagh, Dow Jones Newswires; 9714-331-4260; dyala.sabbagh@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. NEWS Regulators want state trade-off for caps / Davis asked to give up control of power lines Bernadette Tansey Chronicle Staff Writer 05/31/2001 The San Francisco Chronicle FINAL A.1 (Copyright 2001) California's testy relationship with federal energy regulators could turn into a showdown tomorrow, when state power officials must decide whether to surrender some control over the state's electricity market or risk losing limited price curbs that kicked in this week. In agreeing last month to set flexible caps to restrict price gouging during electricity shortages, the Federal Energy Regulatory Commission said the state and its utilities must agree to let an independent organization manage California's power transmission lines. Under that setup, California would be one of a group of Western states sharing a linked transmission grid whose rates and access rules would be set by independent managers. It is part of the commission's drive to create regional electricity markets throughout the country and make it easier to trade power across state lines. The regional grids would be a prelude to the nationwide free market in electricity advocated by the Bush administration and power marketers like Enron. But California Assembly Democrats who have challenged the federal demand say the requirement could interfere with some of the state's homegrown solutions to its energy crisis, such as Gov. Gray Davis' proposal that the state buy and run transmission lines owned by Southern California Edison Co. "A lot of folks were wondering how those two things would interact and are they mutually exclusive," said Paul Hefner, an aide to Assembly Speaker Robert Hertzberg, D-Sherman Oaks. Other officials say the federal requirement is premature because no regional organization yet exists that California can join. Mike Florio, a board member of the California Independent System Operator, which manages the state's power grid, said California is already part of regional efforts to clear transmission bottlenecks and share surplus power. But Florio said no Western state will rush into a regional arrangement and surrender part of its authority without ensuring a good deal for its own consumers. "We certainly don't want to be forced into an entity where generators or power marketers get to dictate the terms," Florio said. "This has got to be a long courtship rather than a shotgun wedding." When federal regulators initiated the move toward regional transmission grids during the Clinton administration in 1999, participation was voluntary, said Gary Cohen, general counsel to the state Public Utilities Commission. But in its April 26 order, the federal energy commission made its offer of limited price relief contingent on a filing by June 1 from the Independent System Operator committing the state to a regional management plan. The PUC and the Assembly are challenging that requirement. If anything, Cohen said, the state needs to increase control over its energy system while it recovers from its disastrous debut into deregulation, rather than submit to a regional authority that would be overseen by the federal government. "This doesn't seem to be the time to be doing more experimenting," Cohen said. "We certainly have not been able to rely on FERC to look out for the interests of Californians." WAITING FOR STATE'S RESPONSE Curt Hebert, chairman of the federal commission, declined to say yesterday whether the government would immediately yank the soft price caps that went into effect this week if it found the ISO response unsatisfactory. "He said he didn't want to prejudge the case," said commission spokeswoman Tamara Young-Allen. "He will wait to see what California files." PUC Commissioner Jeff Brown said he would be willing to give up some state control of the grid in exchange for meaningful price controls. But, he said, the federal measures granted fell far short of what California needed. "Hell, those caps are pretty toothless as they are," Brown said. The price controls are in effect only during power shortages. The cap is the price offered by the least-efficient generating plant. And generators can challenge any federal ruling that they have exceeded the caps, by claiming high costs. The controls were in place for the first time yesterday, when the state declared a Stage 2 power emergency, meaning reserves fell below 5 percent of available capacity. Florio said state power managers' answer to the federal government will probably be that they are already doing within California much of what a regional transmission organization would do. ISO COULD PLAY A ROLE The ISO manages the grid to ensure that power gets to where it is needed in the state, the organization told federal regulators in January. The agency could represent California when a Western regional organization develops, it said. The governor declined to say yesterday what stand he would take on federal regulators' demand. "I'm of a mind to do something, but I still have to talk to my lawyers," Davis said. Assembly Democrats say regulators in Washington have no right to withhold actions to correct California's dysfunctional power market. "They're required to . . . ensure that just and reasonable rates prevail in the market," Hefner said. "Why should we have to dicker to get them to do the job Congress created them to do?" Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. NEWS Plan would have biggest customers pay Edison's debt Greg Lucas Sacramento Bureau Chief 05/31/2001 The San Francisco Chronicle FINAL A.5 (Copyright 2001) Legislative leaders are drafting a new rescue plan for Southern California Edison that would put the utility back on its feet financially at the expense of its biggest customers. The plan would leave manufacturers, refineries and other big industrial customers with the burden of paying nearly all the utility's $3.5 billion back debt through a dedicated charge. Residential and small commercial users would be on the hook for only a fraction of the back debt. Big users say it is unfair to saddle them with all of Edison's debt, but supporters of the plan say it's these users that wanted deregulation and should shoulder the costs it created. "We're trying to put something together in a way that solves all these problems, and if people are to be pigheaded about it, we won't solve any problems," said Assemblyman Fred Keeley, D-Boulder Creek (Santa Cruz County). Although the plan is an alternative to Gov. Gray Davis' proposed deal to put Edison back on its feet financially, it could be used as a model to help restore Pacific Gas and Electric Co. to solvency. Democrats say the plan contains some elements desired by Republicans, but GOP lawmakers object to saddling large business users with Edison's debt. The plan is based on the way gas customers are divided into "core" and "noncore" users. SEPARATING 'CORE' USERS Under this proposal, electrical users would be divided the same way. Core users would be customers who use 500 kilowatts or less a month. Noncore would be those using more than 500 kilowatts. Out of Edison's 4.2 million customers, only 3,600 would be noncore customers. But those 3,600 customers use about 26 percent of Edison's demand for energy. Core customers would get their power from generators owned by Edison, long-term contracts and alternative energy producers, such as wind farms and solar panels, on contract with the utility. That would mean those customers would no longer be subject to the whims of the spot market, which has far higher prices than other sources of electricity. Large users, the noncore customers, would be given the right to negotiate to buy their power directly from generators or build on- site power plants to make themselves energy self-sufficient. The plan would be phased in through January 2003 to give large energy customers time to prepare for buying power on the open market. During that period, residential, small business and large industrial users would all share in paying off Edison's debt. But in 2003, that burden would shift exclusively to the big users. Republican lawmakers and those same large users have been clamoring to be given what is called "direct access" to generators so they can negotiate cheaper rates. Enron is also backing the idea of cutting loose the largest electricity users because that would create a built-in market for the energy the company sells. Large users who want to remain on the grid could do so. EDISON 'ENCOURAGED' Sources said Edison officials met with lawmakers over the weekend to iron out details of the plan. A spokesman for Edison said he was "encouraged" by the talks. "I haven't seen a finished product or a plan," said Bob Foster, a senior vice president with Edison. "They're approaching this in a spirit of goodwill and trying to find a solution." Big businesses complain that the plan does not work because right now, there is nowhere they can buy cheap electricity. "We're very concerned that separating the core from the noncore means we will experience extreme rate hikes over the next two years," said D.J. Smith, a lobbyist for the California Large Energy Consumers Association. "When you add blackouts, the multiple interruptions of production and another potentially huge rate hike, the result would be catastrophic to the economy," Smith said. Added Dorothy Rothrock, a lobbyist for the California Manufacturers and Technology Association: "What's the rationale for the noncore to be paying the entire Edison undercollection? It sounds to me like just pure politics. They don't want voters to pay because they vote." CONSUMER ADVOCATE SMELLS A RAT Harvey Rosenfield, head of the Foundation for Taxpayer and Consumer Rights, said he thought the plan would eventually turn into a bailout as business interests muscle lawmakers into pushing some portion of Edison's debt onto residential and smaller commercial customers. "I think it's a trick. We've seen this same tactic used at the Public Utilities Commission, where what were supposed to be rate increases for big business end up costing more for residential and small businesses," Rosenfield said. The new plan also does not include the outright purchase of Edison's part of the transmission system that loops electricity around the state. Davis backs buying the lines for $2.7 billion. Democrats have insisted that for the state's financial help, taxpayers receive something of value. Republicans have insisted that they will back no proposal that includes state purchase of transmission lines. In the new proposal, the state would have a five-year option to buy the transmission lines for $1.2 billion -- the book value of the asset. In addition, the utility would make $1.5 billion available to the state to either purchase other assets -- such as Edison's hydroelectric facilities, for example -- or use it in partnership to build new power plants. PHOTO; Caption: "If people are to be pigheaded about it, we won't solve any problems," said Assemblyman Fred Keeley. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. INDIA'S MSEB DOUBTFUL OVER DABHOL'S 10 PCT TARIFF CUT PROPOSAL 05/31/2001 Asia Pulse (c) Copyright 2001 Asia Pulse PTE Ltd. MUMBAI, May 31 Asia Pulse - The Maharashtra State Electricity Board (MSEB) has expressed serious doubts over Enron-promoted Dabhol Power Company's (DPC) proposal to reduce its tariff by 10 per cent from the current average to Rs 3.15 per unit. "Agreed that they have mooted such a proposal verbally, we should not forget that it is ridden with assumptions, which are unacceptable to the board," the MSEB sources told PTI here today. (PTI) 31-05 1745 Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. India: Interest rate dichotomy growing wider 05/31/2001 Business Line (The Hindu) Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) - Asia Intelligence Wire MORE than 30 per cent of the targeted Government borrowings for the current year have been lifted from the market at pretty low yields. Over the last two months, the Reserve Bank of India seems to have managed short-term liquidity and interest rates to subserve the larger interest of making a success of the Centre's borrowing programme. Over the last two years, the Government has been able to borrow cheap from the markets - a facility denied to other parts of the economy that have to borrow at stiff lending rates from the banks. Banks credit-rate borrowers and only the best get funds - this is perfectly logical. They also blindly put in funds into Government floats as they are totally risk-free, which again is perfectly sensible. Perhaps, in no part of the world is the practice of banking so risk-free as in Mera Bharat Mahan, with banks carrying NPAs of well over Rs 52,000 crore. The votaries of higher Government spending should not crib as the Centre's borrowing programmes have received a huge applause from the banking community. And the Centre promptly uses the funds on interest payments, defence and subsidies with capital investment getting to be negative. Allowing the private sector greater latitude has not curbed the scope of public sector capital investment. If it has not taken place, it is because even the Government is reluctant to set up power plants which have to offer free power to farmers. That is precisely why the private parties are insisting on escrow accounts. Over the planning period, public sector investment did not believe in cost-benefit principles as neck-high taxation levels and subsidies helped to hide the inefficiency. That is not possible today. In fact, higher savings of the Indian economy are being wasted more by the Government than by anybody else; also savings cannot be said to be acting as a restraint to the investment process. In the urban sector, there is an interest rate dichotomy with New Delhi getting easier funds than the corporate world. There is no premium on the interest rates for Government inefficiency. The same dichotomy prevails in the rural sector with bank funds flow tapering off and informal channels busy. Under Indian conditions, higher savings have nowhere to go, making the cut in contractual savings look sensible. It hurts not because interest rates are low but because there is no growth to absorb bank funds. At this point of time, one may not be able to find the tomes of any international economist to analyse the Indian economy. High savings, nil growth, steep Government borrowings and pervasive hunger and the rest cannot be reconciled into a neat econometric equation. Only growth can help. Sure we (our patriotic politicians and bureaucrats) allowed Enron to milk us. Today, if you are not a critic of Enron, you are bound to be dubbed a traitor. But can the Maharashtra State Electricity Board (MSEB) make money and get bank funds if has to provide power free to large sections of the public? Can it get some funds to revamp the existing plants? For us, there is progress in getting stuck at the Hindu growth rate of 3 per cent to getting stranded at the Orange growth rate of 6 per cent as breaking free is not in us. P. Devarajan Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. India: Enron willing to continue project 05/31/2001 Business Line (The Hindu) Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) - Asia Intelligence Wire MUMBAI, May 30. ENRON today updated Indian lenders about the status of the project and discussed ways for resolution of the current crisis. According to sources, Enron showed a willingness to continue with the project even after all the problems. Mr Wade Cline, Managing Director, is understood to have told the lenders that even though DPC had mentioned about taking a 10 per cent cut on its returns, it would not do so unilaterally. According to Mr Cline, the adjustments that Enron could make are contingent upon other parties too making an effort to make concessions. He made a presentation to the lenders about the current status of the project and the problems. Meanwhile, Dabhol Power Company today clarified that it has not "shut down" its plant. A spokesman said the plant continues to be "operational" as required by the power purchase agreement (PPA). He, however, confirmed that the Maharashtra State Electricity Board (MSEB) has not issued despatch instructions since 12 noon on May 29. He also said the company is "currently" not planning to terminate the PPA prior to the lapse of six months after the serving of the preliminary termination notice. Sources said that even though MSEB is not purchasing power from DPC, the company is not likely to default on its payments to lenders. This is because DPC has some money left from the disbursements of the first phase of the project. It can use the money to service its debt. It can, however, not transfer the amount to the second phase without the lenders' permission. The company also has a sizable amount of "completion equity" over and above the base equity to bring in if it chooses to continue construction. According to sources, the Indian lenders today wanted to know from Enron whether it is actually willing to stay back and complete the project or walk away. It appeared they are willing to stay, but only without conceding too much. Top MSEB officials said as far as MSEB is concerned, "DPC power may be available, but we would not take it. We are not recognising the PPA any more". They said the board had given the option to the company saying it would buy power and make payments according to the PPA but on an ad hoc basis. The adjustments could be made at a later date. "However, they threw it back to us saying you cannot have your cake and eat it too. So we decided to keep the cake," a State Government official said. Our Bureau Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. INDIA'S DABHOL SHUTS POWER PLANT, TO ISSUE TERMINATION NOTICE 05/31/2001 Asia Pulse (c) Copyright 2001 Asia Pulse PTE Ltd. MUMBAI, May 31 Asia Pulse - Amidst a rash of allegations and legal wrangles, the US energy major Enron-promoted Dabhol Power Company (DPC) has shut down the US$3 billion Guhagar plant and is set to issue the Termination Notice to its partner the Maharashtra State Electricty Board (MSEB). With the MSEB not drawing power since last noon, the multinational had no option but to shut down the plant as MSEB is their sole customer, a member of the Godbole committee, set up for re-negotiating the power purchase agreement with the DPC, told PTI here Wednesday. "DPC is reeling under tremendous pressure from its lenders who have already given the multinational a go-ahead for a wrap up by terminating the contract," he added. He said the Enron India chief, K Wade Cline, had conveyed DPC lenders' nod for the termination to the Committee members yesterday and had said "we will have to terminate the contract, if no solution is found to this grave crisis. As it is, even now DPC cannot see a way out". The DPC had served a Preliminary Termination Notice to MSEB on May 19. "Even though there exists a cushion period of six months, the energy major will issue the notice," the official said. On the other hand, MSEB officials are not worried over the termination of the contract. "MSEB has already rescinded the PPA. So even if they terminate the contract, it hardly matters to us," they said. Meanwhile, the Godbole committee would meet the MSEB officials on June six, but DPC representatives have not been invited for the same. (PTI) 31-05 1029 Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Report on Business: Managing Working Life That's right, double-click there, sir Techies, executives cross-pollinate as reverse mentoring gains ground DIANE LEWIS The Boston Globe 05/31/2001 The Globe and Mail Metro B14 "All material Copyright (c) Bell Globemedia Publishing Inc. and its licensors. All rights reserved." GE Plastics executive Jay Pomeroy knew familiarity with the Web was fast becoming an essential part of his job. So, to help him get up to speed, his company paired him with Gen-Xer Amelia Burkhart, a tech savvy thirtysomething at the Pittsfield firm who used her on-line experience to show the 46-year-old senior manager the ropes. "I brought him knowledge of the Internet realm," said Ms. Burkhart, global manager of e-plastics.com, GE Plastics' on-line division. "He has to deal with people from other regions and countries. We actually conducted a virtual meeting so that he would understand how to participate in meetings on-line." She added: "Before mentoring, you would never see Jay's name on a same-time chat. Now he is on a lot and he's become a pretty avid Internet user." Call it reverse mentoring -- a form of one-on-one coaching that gives younger techies a chance to teach senior executives how to surf the Net, use instant messaging, collaborate with a team in real time, find new business applications, or explore the ins and outs of buying products on-line. It's a relationship that's also a two-way street: one that allows corporate greenhorns to seek advice from seasoned executives to help hone the managerial skills and relationships they need to advance in the workplace. Specialists say reverse mentoring is one way established companies like General Electric are embracing the Internet in order to survive -- and thrive -- in a technology-driven world. The practice, which began in Europe, is now taking hold in the United States as young workers bring newfound energy and skills to Old Economy companies once labelled slow-moving monoliths. Joel Kurtzman, co-author of a new book titled Radical E: From GE to Enron -- Lessons on How to Rule the Web, says the interchange between mentoring pairs is a form of cross-pollination: Students gain new knowledge; mentors gain valuable institutional information from veterans whose political astuteness and management savvy helped them succeed. Ms. Burkhart, for example, says the program helped her develop a relationship with Mr. Pomeroy, who returned the favour by providing tips on managing her career at GE. He also shared some of his institutional knowledge, and he remains a close contact at the firm. "We now have a relationship that has blossomed," said Ms. Burkhart. "It's also been good exposure for me." Glenn Rifkin, co-author of Radical E, says the trend is one of the more positive results of the dot-com boom. "For the first time, entrenched business people and companies have had their eyes opened to the fact that there are now some really smart young people in their corporate settings who can teach them new things," he said. The authors, who spent months interviewing mature companies with well-known brands, are convinced the future will be shaped by Old Economy "hybrids" -- companies that combine the best practices from e-commerce and older brick-and-mortar firms. This, they say, is a more radical form of reverse mentoring in which Net companies with little business knowledge are paired with established firms, or young employees at mature companies find new ways to do business on-line. Some of those companies include General Motors, Procter & Gamble, GE, and Houston-based Enron, a global energy company. GE, the first Old Economy firm to endorse and use reverse mentoring in the United States, began a formal program two years ago after chief executive officer Jack Welch introduced the concept. The company has since paired dozens of workers in a push to bring key people into the computer age and expand the company's market to include cyberspace. Procter & Gamble began encouraging IT employees to participate in an informal reverse mentoring program last year. "Because technology changes so rapidly, individuals pair up with people who seem to be more adept at the latest application," said P&G spokeswoman Vicky Mayer. Meanwhile, in Philadelphia, the Wharton School has implemented a program that helps top executives from around the world bring New Economy practices into Old Economy firms. One feature of the e-fellows program: Mentoring sessions staffed by MBA students in their 20s who share their knowledge with seasoned corporate leaders. Wharton e-fellows learn how to use the Internet to reshape their firms. Over the course of three weeks, e-fellows spend time at the business school's Philadelphia campus, in Silicon Valley, and at an international site. The program began in September. Executives are paired with MBA students in a one-on-one match. "Typically, these students are Internet savvy and they live in a world where e-business and business are synonymous," said Neil Neveras, director of e-business at Wharton's e-fellows program. Mary Dolan, a 37-year-old manager at Random House, was among the first Wharton e-fellows to participate in the program last year. "My background was more publishing driven than e-commerce driven," said Ms. Dolan, now director of e-book sales for the New York publisher. "The program gave me a broader grasp and view of the world at large, beyond the niche area of publishing." Ms. Dolan was paired with 27-year-old David Turrettino, then a first-year MBA student. Mr. Turrettino taught Ms. Dolan how to collaborate with her peers using Wharton's Net tools. Since the program is team-based, Ms. Dolan learned to conduct meetings on the Net and experiment with on-line business models. "This is a partnership between the generations," said Mr. Kurtzman, a global partner at PricewaterhouseCoopers. "But at the height of the dot-com boom, people were saying strategy is dead. . . . Now there is an understanding that you must have the business savvy that comes with experience." Mr. Pomeroy, of GE Plastics, says having a Web presence has paid off. "At GE Plastics we took a presence on the Web, which was about $10-million [U.S.] in sales revenues in 1998, and expanded it to $1.5-billion in business by 2000," he said. "This year, we expect to do close to $4-billion in business on-line." Mr. Pomeroy said Ms. Burkhart helped him use the Net with greater ease. "Now, everything we do is predicated on the internal or external Web," said Mr. Pomeroy. "Everything is on that square screen that sits on our desks." Illustration Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Willing To Continue India Power Project - Report 05/31/2001 Dow Jones International News (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW DELHI -(Dow Jones)- U.S. based power major Enron Corp. (ENE) may be willing to continue with its India project the Dabhol Power Co., Wade Cline, managing director of Enron's indian unit, told the projects Indian lenders, the Business Line newspaper reports Thursday. Cline told lenders that Dabhol Power could make adjustments, including a 10% cut in power tariffs, but it wouldn't do so unilaterally, the news report added. Any adjustments would depend on similar concessions from purchasing parties. The $3-billion Dabhol Power project, India's biggest foreign investment project, is situated in the western Indian state of Maharashtra. The project, which will generate 2,184 megawatts of power when the second phase is completed later this year, is at the center of a power supply dispute between the state government of Maharashtra and Dabhol Power over what the government claims are "unaffordable" power tariffs. The dispute has unnerved foreign lenders. Tuesday, the Maharashtra State Electricity Board stopped buying power from the two-year-old Dabhol plant. The move came five days after the MSEB told DPC that it was canceling the 1995 Power Purchasing Agreement between the two parties that sets electricity prices. MSEB officials said Wednesday that the Dabhol plant has stopped producing electricity. The news report however quoted a Dabhol Power official as saying that while the MSEB had stopped dispatch instructions, the plant continued to be operational. MSEB was Dabhol's only buyer. -By Muneeza Arjuman, Dow Jones Newswires; 91-11-461-9427; muneeza.arjuman@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.