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-----Original Message----- From: Enron Announcements/Corp/Enron@ENRON [mailto:[email protected]] On Behalf Of Ken Lay - Chairman & CEO@ENRON Sent: Thursday, September 13, 2001 8:09 PM To: All Enron Worldwide@ENRON Subject: Our Response to the U.S. Tragedy The tragedy of Tuesday, September 11 will serve as an unforgettable reminder to people all over the world of what is truly important and of life's fragility. My heartfelt sympathies go out to the families and friends of all the people whose lives were taken in this senseless and horrific attack. I ask that all of you keep our deceased colleague Nick Humber and his family in your thoughts and prayers. Tragically, Nick, a director with Enron Wind, was on one of the planes hijacked on Tuesday. To help with relief efforts in New York and Washington, D.C., Enron will make a total contribution of $1 million dollars to be split equally between the American Red Cross and the New York Firefighters and Police Officers Fund. Many of you have expressed an interest in more personal involvement and I want you to be aware of some of the options available. I encourage you to support those impacted by this tragedy by donating to relief efforts, and to take advantage of our Matching Gift Program to double the impact of your individual donation. Because of the significance of this tragic event, Enron will match your contribution 2 for 1. How to Help ? Please go to www.easymatch.com/enron. Once there, click on "Disaster Relief" (located in the middle of the top of the page). Please choose from the list of non-profits that are accepting donations to help with this effort. Any donations made to aid with disaster relief will not be counted toward the annual $15,000 Matching Gift limit. You will need your GIS number to do this (it begins with a 9). If you are unsure of your GIS number, please contact the HR GIM helpdesk at 713-853-5666. ? We will have red, white and blue striped ribbons in Houston for employees to pin on their shirts in memory of those who lost their lives, in honor of those who survived, and for their families. Donations to the New York Firefighters and Police Officers Fund and other organizations are being accepted in exchange for the ribbons. Enron will also match these donations. The ribbons are available tomorrow from 9:00 - 11:00 a.m. at the InfoZone, which is located by the down escalator in the lobby. For any other employees who would like to make donations, please go to the above website. ? Enron employees are generously giving blood, and we will continue to work with relief efforts to ensure that employees who want to give, have the ability to do so. If you have questions, call 713-853-6100. ? President Bush has declared Friday a day of "National Prayer and Remembrance," and is calling on Americans to use their lunch breaks to go to places of worship to pray for victims and their families. Following is a list of websites with additional information: o <http://abclocal.go.com/ktrk/> o <http://www.chron.com/content/community/religious/> o If you are looking for a service within walking distance of the Enron building, First United Methodist Church (corner of Main and Clay) and Antioch Missionary Baptist Church will hold prayer services on Friday. First United Methodist Church will have services at 11:00 a.m., noon and 1:00 p.m. Antioch Missionary Baptist Church will have a service at noon. o If you are interested in attending a service and don't work in this area, please check your local television websites for more information. ? For Houston employees, a citywide candlelight vigil will be held on the steps of City Hall in Downtown Houston at 7 p.m. tomorrow night. Mayor Lee Brown will be speaking. ? At 10:00 a.m. (Central) on Monday, September 17th, in Enron facilities around the world, we will have a moment of silence in memory of those whose lives have been tragically taken. We ask that you put down the phone, turn away from your computer and dedicate a personal moment of silence together with your co-workers. ? We encourage all U.S. based employees to wear red, white or blue shirts on Monday. For Counseling Assistance ? For employees in Houston, we have an on-site employee assistance counselor in the building that you can reach by calling 713-853-6057. If you are not located in Houston or if you or a family member would prefer an off-site counselor, you can call the 24-hour Employee Assistance Program number 1-800-345-1391. ? Employees outside the U.S. can also contact 713-853-6057 directly. United HealthGroup (Enron's medical network administrator) has provided free access to their National Disaster Line for counseling service to any person. That number is 800-268-1026. We are also working to bring crisis counseling to any work location that has a need. This is an agonizing time for our nation and it is hard for us all. In addition to the financial and human support we are extending to those in need, it is imperative that we at Enron continue to safely and reliably serve our customers in the U.S. and around the world. We know it is difficult but we must demonstrate on-going stability and strength at Enron, as this will serve as a signal that the ideals upon which America was founded cannot be diminished. Again, our hearts go out to the families and friends of those who have lost loved ones in this tragedy. Please continue to watch your e-mail for more information.

Great points. Teece---and the lion's share of the folks on the participants list---are advocates of a minimalist role for government, particularly where markets are a clear and preferably option, as in the case of electricity. That said, I think we're going to have to make a fundamental decision about what the goal of this "study" would be, which will determine, to a large degree, whether we choose to pursue it. I'll throw out for comment the notion that the study should be designed to serve one purpose: to influence the policy decision currently under debate "To de-regulate or not." As such, I wouldn't see issues like "PJM or APX" or "competitive default supplier or not," or "divest generation with vesting contracts or retain the assets" being the focus. That debate over critically important implementation details, would seem to come in "Round 2," once the initial debate over "deregulate or not" is won. To try to do both, i.e., resolve in the broad policy issue AND make the case for the specific, "right" implementation plan, would arguably bog the study down, perhaps interminably. And it seems that time is of the essence in the current environment. In addition, unless the fundamental policy issue is won--and won rather quickly--debating implementation may be moot. Of course, it will be impossible to avoid some level of dicussion on "how to do it," but that would not be the emphasis. In sum, I'd suggest for comment that it only makes sense to proceed---particularly since time is of the essence---if we focus on the high level policy level question of "to deregulate or not," and address implementation in a second, or follow up, study. I think we should try to make a call on this swiftly, since the "go/no go" decision would seem to flow from resolution of this issue. Best, Jeff James D Steffes 03/16/2001 08:22 AM To: Jeff Dasovich/NA/Enron@Enron cc: Jeff Dasovich/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@Enron, Linda Robertson/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, [email protected] Subject: Re: Analysis by Academics----Why De-regulation is the right policy choice Jeff -- It would be helpful to get some feedback prior to starting to deal with the fundamental question related to direct access for smaller customers. I would like to know Teece's perspective on the role of government in this marketplace. In addition, I think that the paper must deal with the drawbacks of having mixed roles - utility default supply and competitive markets. Jim Jeff Dasovich Sent by: Jeff Dasovich 03/15/2001 03:11 PM To: Richard Shapiro/NA/Enron@Enron, [email protected], James D Steffes/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Linda Robertson/NA/Enron@ENRON cc: Subject: Analysis by Academics----Why De-regulation is the right policy choice Greetings: As I've mentioned, I've been discussing with a group of academics (principally from UC Berkeley) the possibility of producing an analysis of why it makes sense to move forward toward de-regulation, and makes no sense to turn back to command-and-control regulation. Clearly, we're at a fork in the policy road---move forward, or go back. I've (finally) gotten a proposal from the group. It's attached. Please take a look. I'd like to distribute more widely internally for comment, but wanted to run it through a preliminary screen to guage whether folks think it would be useful before cluttering up folks' in-boxes with more emails to read. Few points worth mentioning: The majority of the academics that would do the report are affiliated with LECG, Inc., the consulting group that I worked with prior to joing Enron. List also includes Dan McFadden, UC Berkeley nobel prize winner who wrote the recent op-ed piece in the WSJ. The list also includes Hogan and Joskow and Borenstein. We could certainly exclude these folks should we choose to go forward with the analysis. However, the goal is to produce a high level analysis, i.e., "de-regulation is good and can work; command and control regulation is bad and we know that it does not work." Once the study is released (if it is pursued), the "authors" could tour the country, testifying before federal and state bodies to advocate the virtues of de-regulation and the pitfalls of reversing course. The analysis would not be a debate over "To Poolco, or not to Poolco, PJM, etc." In this way, including folks like Joskow and Hogan could offer the added benefit of creating a "Nixon goes to China" scenario. Please take a look at the list of participants. Again, we can add to and subtract from the list. Laura Tyson would be one of the two project leaders. (The other would be David Teece, Chairman of LECG.) None of the folks on the list occupies either extreme of the political spectrum. It's a mix of D's and R's who are arguably centrist economist and strong believers in markets (I won't vouch for Joskow and Hogan). The idea would be to get a wide array of industry participants from across the country to support the project. This is for two reasons: 1) the more diverse the group supporting the effort, the greater the credibility, and 2) they are asking for about $1 million to do the study. If you think it would be useful to pursue the study as part of our national campaign to minimize the damage created by California, I would like to start immediately to approach trade associations, companies, customers, etc. nationwide to garner support for the project. Let me know if you think the effort would be worthwhile. Appreciate your comments. Best, Jeff ----- Forwarded by Jeff Dasovich/NA/Enron on 03/15/2001 02:43 PM ----- - REAFFIRMING THE CASE FOR ELECTRICITY DEREGULATION.doc

----- Forwarded by Jeff Dasovich/NA/Enron on 02/25/2001 03:22 PM ----- POWER POINTS:Calif Gov Fiddles As Summer Likely To Burn By Mark Golden A Dow Jones Newswires Column NEW YORK (Dow Jones)--Once there was a bride whose pianist became ill the night before a beachfront wedding. As she frantically tried to find a new pianist, the radio blared an alert: A 40-foot tidal wave was headed straight for the beach. "I just will not let this pianist ruin my wedding," muttered the bride as she turned the radio off. California Gov. Gray Davis and the state Legislature have no better sense of priorities than the bride did. They've been obsessing over the financial solvency of the state's utilities for three months, instead of making progress on the bigger problem: the huge shortage of electricity expected to hit the state this summer. California's multibillion dollar purchase of the utilities' transmission lines won't add one megawatt to the supply of electricity. How big is the imbalance between supply and expected summer demand? The California Energy Commission forecast two weeks ago that the 60,000-megawatt system might just squeak by with 87 MW to spare in a bad heat wave. But nobody takes that forecast seriously. The CEC's numbers are way off base. California's electricity demand could exceed supply by 5%, or 2,000 MW, on days with typical summer weather. That 2,000 MW shortfall will be made up by turning out the lights in 2 million homes, or a mix of homes, businesses and industry. A bad heat wave would get shortages several times that size. As the blackouts roll through parts of the state every weekday that temperatures are at or above normal, every business and home will take its turn at getting by without electricity for an hour or so. What factory can operate under such conditions? Will the state's elderly survive the heat exposure? The CEC put the capacity of generators in the state at about 54,000, but it used original capacity figures. Most of California's big power plants are more than 30 years old. They can't produce as much power as they once did, so subtract about 7,000 MW from their rated capacity. About 15,000 MW of the state's capacity is now controlled by merchant energy companies Calpine (CPN), Duke Energy (DUK), Dynegy (DYN), Mirant (MIR), Reliant Energy (REI) and Williams Cos. (WMB). They say they already have sold much of the power they will generate this summer to out-of-state western utilities. But the CEC ignored that. Hydroelectric generation in the western states is expected to be just 60% of normal this spring and summer. Western utilities have been buying up supplies since last fall. California's PG&E (PCG) and Edison International (EIX) couldn't do that, of course, because they're nearly bankrupt. Nobody knows exactly how much power has already been sold out of state. A trader at one California merchant power company estimated 5,000 MW. In a recent auction of transmission line use, capacity to move electricity out of California sold for up to 15 times the price of transmission capacity to move power into the state. The CEC ignored the sales of California power to out-of-state generators in its rosy summer outlook and ignored the forecast for below-normal hydropower, which depends on winter snowfall. The snowfall season is three-fourths over now, making a hydropower shortage pretty much a done deal. Yet the CEC used normal northwest hydropower production in its forecast. Take off another 2,000 MW. The commission expects 3,000 MW of generators to be off line for unplanned repairs when the heat wave hits. That's California's historic average. But outages usually increase dramatically during a heat wave. Take off another 2,000 MW. The commission expects all 1,000 MW of Davis' recently announced peaking generators to be on line for the summer. "No way," says the industry. Instead of the CEC's estimate of 61,000 MW, then, California can expect available supply of only 44,000 MW. The state needs 51,000 MW to meet demand and maintain recommended reserves in the kind of heat wave it gets, on average, every two summers. People in the industry have been telling the governor for nine months that there's no way to raise supply to meet demand this year or next. Siting and building power plants takes too long. Demand has to be reduced to the level of supply. The current course is to reduce demand through blackouts. Pricing offers a better way. If the state raised electricity rates immediately - a step no longer opposed even by California consumer group The Utility Reform Network - California would stop burning through the natural gas and water reserves needed to keep generators running this summer. Davis insists on solving the crisis without a rate increase big enough to damp demand. Several western U.S. utilities outside California have already imposed such rate hikes. Davis is focused on buying power, even though California can't subsidize consumption of artificially cheap power much longer. The Department of Water Resources is signing 10-year power supply contracts at hefty prices that fully reflect today's supply-demand imbalance. Instead, he should be addressing the imbalance, which must be dealt with sooner (by prices) or later (by blackouts). Raise California rates significantly now. Cut demand, and the wholesale price for electricity comes crashing down. Then sign long-term contracts at the lower rates. Davis is committing California's citizens and businesses to 10 years of overpriced electricity. After that, he says, he will try to reduce demand. His streak of bad decisions in this crisis continues unbroken. -By Mark Golden, Dow Jones Newswires; 201-938-4604; [email protected] (END) Dow Jones Newswires 23-02-01 1944GMT(AP-DJ-02-23-01 1944GMT)

I recommend using UTSI. They know a lot about EFM and SCADA systems and have been used by Enron in the past to review/evaluate the Y2K Plan and various gas control functions. Charlie -----Original Message----- From: Hayslett, Rod Sent: Wednesday, October 24, 2001 7:31 AM To: Thompson, Charlie Cc: Hawkins, Don Subject: RE: Need for Rutherford Consulting Complete Do you have a candidate? I would argue that we are looking at a process review, so anyone who can do a process review could do this. -----Original Message----- From: Thompson, Charlie Sent: Wednesday, October 24, 2001 7:01 AM To: Hayslett, Rod Cc: Hawkins, Don Subject: FW: Need for Rutherford Consulting Complete Rod, I agree with Kenneth Cessac's response. We should evaluate our current process for collecting, validating and distributing measurement data and consider new ideas and alternatives to improve the process. Assistance from a consulting firm that specializes in this area would probably be better than using Rutherford. Charlie -----Original Message----- From: Cessac, Kenneth Sent: Tuesday, October 23, 2001 3:53 PM To: Thompson, Charlie Subject: RE: Need for Rutherford Consulting Complete This question has been raised several times over the past 10+ years, should we combine GMS, Field Operations, and some of the Gas Control functions to create a single source for measurement data. I do not feel that changing a reporting relationship would correct any problems. I feel the time and effort can e better spent improving our current data collect process and data flow between SCADA and PGAS. While this process is working I feel that it requires to much manual intervention and handling. The IT department, Measurement Technology, Gas Control Hot Seat, and the Data Analysis are all involved in keeping the data flowing between SCADA and PGAS. We should step back and re look and the current process and see what improvements can be made to better control and maintain this process. A second area that should be looked at is the data validation process. Currently Field Operations, Data Analysis, and GMS all manually review measurement data. With all of the computer and software technology available I feel that we could easily automate most of the current manual data validation. I have limited experience with the Rutherford company and what they could provide towards improving these items. I feel that a company that specializes in SCADA and such as UTSI would be a better option. -----Original Message----- From: Hawkins, Don Sent: Friday, October 19, 2001 5:27 AM To: Thompson, Charlie; Cessac, Kenneth Cc: Hayslett, Rod Subject: RE: Need for Rutherford Consulting Complete Charlie, Ken, I would like to meet with you this afternoon if possible (2:00 pm) so you can bring me up to speed on PGAS and Sullivan's concern so we can respond to Rod by early next week. Thanks, Don -----Original Message----- From: Craig, Rick Sent: Thursday, October 18, 2001 10:28 PM To: Hawkins, Don; Thompson, Charlie; Cessac, Kenneth Cc: Hayslett, Rod Subject: FW: Need for Rutherford Consullting Complete I'm going to defer this to the experts. Please convey your thoughts to Rod. -----Original Message----- From: Hayslett, Rod Sent: Thursday, October 18, 2001 1:15 PM To: Craig, Rick Subject: FW: Need for Rutherford Consullting Complete Would you agree that something needs to be done? -----Original Message----- From: Sullivan, Michael Sent: Thursday, October 18, 2001 12:22 PM To: Barnes, Caroline; Hayslett, Rod; Saunders, James; Hotte, Steve Cc: Stern, Ellis; Lewis, Greg Subject: RE: Need for Rutherford Consullting Complete The PGAS reporting project recently completed requirements gathering meetings with data users in gas measurement technology, gas control, gms, gas accounting, and gas logistics. We think, those discussions have pointed to a need to assess inefficiencies that appear to exist related to data integrity as data moves between systems and users that span the entire gas volume/quality collection, transformation and delivery process. In other words there seem to be too many questions and reconcilliations that people have to address along the process as data changes hands and is used for different internal and external purposes. There also appears to be a lack of a single point of responsibility in the organization for gas volume data from start to finish. The PGAS reporting project proposed to assess this at a high level and make some recommendations. But as important as the issue appears to be, you might want to consider using Rutherford to help ETS do a more thorough job of this. This effort would extend outside FA&A. Please advise. -----Original Message----- From: Barnes, Caroline Sent: Thursday, October 18, 2001 11:29 AM To: Hayslett, Rod Cc: Stern, Ellis; Sullivan, Michael Subject: Need for Rutherford Consullting Complete Mike, Ellis and I are in agreement that the need for the Rutherford Consulting group is complete. Rutherford achieved what their goal was; to provide structure and format for the PGAS issues to be addressed in an efficient manner. The procedures for listing new issues are in place and are being followed by the team. The meetings are efficient in that only status updates and priorities are reviewed and discussed. There is now only one list for all issues that are being addressed or need to be addressed and they are prioritized. The monthly meetings are now only needed twice a month. What is the procedure for notifying Rutherford that their services are no longer needed on this project as they have completed what was asked of them? cvb

Contact Steve Walton Eric Hirst <[email protected]> 11/10/2000 10:03 AM To: [email protected] (Steve Kean) cc: Subject: Outline for Project on Real-Time Markets Dear Steve, Once again, I call on you for advice. Who, within Enron, should I talk with about a new project I am working on, related to real-time balancing operations and markets (all the messy stuff that causes so many problems within all the existing ISOs)? Here is the outline for the project. Can you send me your suggestions on revising the outline, other people at Enron (and elsewhere) to contact related to these markets, and written materials on how the various ISO markets operate. Thanks. Eric ---------------- ISSUES TO DISCUSS FOR PROJECT ON: REAL-TIME BALANCING OPERATIONS AND MARKETS November 6, 2000 1. Introduction: Importance of real-time operations and markets Essential for reliability, especially security Basis for all forward contracts (hour- and day-ahead, block monthlies, bilaterals) Real-time prices motivate generation-capacity decisions: new construction, repowering, retirements Ensure equitable treatment for
&new
8 intermittent and distributed resources 2. Physical Requirements and Operations Balance generation to load in near-real time (intrahour) Normal conditions (frequency response, CPS1, CPS2) Contingency conditions (DCS) In neither case is it necessary for generation to exactly balance load over short time periods (e.g., 10 minutes), but must balance energy over longer intervals Benefits of aggregation Performance and characteristics of individual generation and load resources: random fluctuations, energy level, ramp rate, acceleration rate, startup time, minimum run time, block loading, energy-limited characteristics of hydro units, etc Control-area balance vs individual-schedule balance, good vs bad inadvertent interchange NERC and FERC requirements 3. Operations with Vertically Integrated Utilities Unit commitment Economic dispatch Regulation Contingency reserves Control area forecasts of loads and resources, effects of forecasts on unit commitment and dispatch Treatment of (payments and penalties for) energy imbalance and inadvertent interchange 4. RTO Operations and Markets Generation not owned by RTO, RTO must purchase outputs from generation and load resources Relationship between real-time operations and markets, how are resources dispatched (and by whom) and how are they compensated Time interval (1, 5, 10, or 15 minutes) for dispatch and price setting; what are the tradeoffs in choosing among these intervals Single market-clearing price in each interval vs pay-as-bid for each resource Pay for energy only or pay also for maneuverability (e.g., ramp and acceleration rates); how do resource constraints determine which resources are permitted to set the market-clearing price and which aren't, and why? Set prices ex ante or ex post? If prices set ex ante, what is the basis for the value? Should unit commitment (resource scheduling) be done by individual suppliers, by RTO, or both? Relationship between real-time markets and ICAP and RMR requirements, and RTO requirements to ICAP and RMR units to bid resources into real-time market Treatment of exports and imports, rules governing interchange scheduling (number of schedule changes per hour permitted, ramp rates for schedule changes) To what extent does the RTO make short-term forecasts of load and generation, how far into the future (10 minutes to 24 hours), how does the RTO use these forecasts? Should the RTO commit and dispatch resources on the basis of expected future conditions (i.e., beyond the current and next interval)? Who pays for these RTO decisions? Should RTO publish prices and let demand and supply respond to the price signal, or should RTO dispatch resources up and down based on supplier bids? If the RTO explicitly dispatches resources, should uninstructed deviations be treated differently, in terms of payment or penalties, from instructed deviations? What about a resource
,s failure to follow instructions? Under what circumstances should RTO go
&out-of-market
8 for resources? What should set the price of (payment to) these resources? Under what conditions, if any, are penalties appropriate, for what kinds of behavior, what determines the magnitude of the penalty? Should penalties apply to generation only or to loads also? How, if at all, should capacity assigned to ancillary services (especially the reserve services) be incorporated into real-time operations and markets? For example, should the capacity assigned to contingency reserves be set aside and used only when a major outage occurs? Or should such reserves be used routinely whenever it is economic to do so, as long as sufficient capacity is available to meet the NERC reserve requirements? How should intermittent resources (e.g., wind) be treated in real-time operations and markets? Should they be treated any differently from a large, volatile load? Can retail loads participate in real-time markets? How? 5. Case Studies of U.S. ISOs California PJM, New York, and New England ERCOT 6. Conclusions and Recommendations Key features of operations and markets What works What are the options What problems still remain ---------------------------------------------- Eric Hirst Consulting in Electric-Industry Restructuring 106 Capital Circle Oak Ridge, TN 37830 865-482-5470 (phone & fax) [email protected] http://www.EHirst.com/

---------------------- Forwarded by Bob M Hall/NA/Enron on 01/11/2001 05:25 PM --------------------------- Michael Eiben@ECT 01/11/2001 04:04 PM To: Bob M Hall/NA/Enron@Enron cc: Subject: Sale of HPL i don't know if you are on here or not. ---------------------- Forwarded by Michael Eiben/HOU/ECT on 01/11/2001 04:02 PM --------------------------- From: Brian Redmond 01/11/2001 03:56 PM Sent by: Lillian Carroll To: Thomas A Martin/HOU/ECT@ECT, Jim Schwieger/HOU/ECT@ECT, Edward D Gottlob/HOU/ECT@ECT, Elsa Villarreal/HOU/ECT@ECT, Greg McClendon/HOU/ECT@ECT, Danny Conner/NA/Enron@Enron, Carey M Metz/HOU/ECT@ECT, Lauri A Allen/HOU/ECT@ECT, Kenny J Soignet/HOU/ECT@ECT, James McKay/HOU/ECT@ECT, Gary A Hanks/HOU/ECT@ECT, Silver Breaux/HOU/ECT@ECT, Sam Garner/HOU/ECT@ECT, Kathy Hilliard/HOU/ECT@ECT, Lee Pinkston/HOU/ECT@ECT, Sean J Smith/HOU/ECT@ECT, Earl Tisdale/HOU/ECT@ECT, David Hohl/NA/Enron@Enron, Steven Chambers/OTS/Enron@Enron, Michael C Winders/HOU/ECT@ECT, Jill T Zivley/HOU/ECT@ECT, Gary Bryan/HOU/ECT@ECT, Brian M Riley/HOU/ECT@ECT, Michael C Bilberry/HOU/ECT@ECT, Jennifer Martinez/HOU/ECT@ECT, George Weissman/HOU/ECT@ECT, JoAnne Harris/NA/Enron@Enron, Christy Sweeney/HOU/ECT@ECT, Greg Brazaitis/HOU/ECT@ECT, Lee L Papayoti/HOU/ECT@ECT, Janet H Wallis/HOU/ECT@ECT, Gary W Lamphier/HOU/ECT@ECT, Michael W Morris/HOU/ECT@ECT, Steve HPL Schneider/HOU/ECT@ECT, Jack Simunek/HOU/ECT@ECT, Nathan L Hlavaty/HOU/ECT@ECT, Ron Green/Corp/Enron@Enron, Gerald Lofton/HOU/ECT@ECT, Cheryl Marshall/HOU/ECT@ECT, Emma Kam Welsch/HOU/ECT@ECT, Fred Biery/GCO/Enron@ENRON, Sean Brooks/GCO/Enron@ENRON, Kenny Cooper/GCO/Enron@ENRON, John Miska/GCO/Enron@ENRON, Perry Roberts/GCO/Enron@ENRON, John Towles/NA/Enron@ENRON, Karl E Atkins/NA/Enron@ENRON, Robert Rose/NA/Enron@ENRON, Debbie Boudar/NA/Enron@ENRON, Aric Archie/NA/Enron@Enron, Ken Parker/HOU/ECT@ECT, Roger Spiller/OTS/Enron@ENRON, Tom Shelton/HOU/ECT@ECT, Kenneth W Kaase/HOU/ECT@ECT, Charlie Thompson/GCO/Enron@ENRON, Steve Cherry/GCO/Enron@ENRON, Robert Newman/GCO/Enron@ENRON, David Kantenberger/GCO/Enron@ENRON, Nick Cocavessis/Corp/Enron@ENRON, Robert Cook/HOU/ECT@ECT, John Handley/HOU/ECT@ECT, Robert Crockett/HOU/ECT@ECT, Molly L Carriere/HOU/ECT@ECT, Barbara Sargent/HOU/ECT@ECT, Brad Blevins/HOU/ECT@ECT, Chris Sonneborn/HOU/ECT@ECT, Audrey O'Neil/HOU/ECT@ECT, Lal Echterhoff/HOU/ECT@ECT, James R Haden/HOU/ECT@ECT, Kevin Kuehler/Corp/Enron@ENRON, Tom Fry/GCO/Enron@Enron, Dick Danes/GCO/Enron@ENRON, Ty Porche/GCO/Enron@ENRON, Vicente Sarmiento/GCO/Enron@Enron, Joe Zernicek/GCO/Enron@Enron, J R Fosdick/GCO/Enron@Enron, Reid Hansen/GCO/Enron@Enron, Calvin Dodd/GCO/Enron@Enron, Bac Thi Ly/GCO/Enron@Enron, Glenn Gregory/GCO/Enron@ENRON, Ronald Surber/GCO/Enron@ENRON, Jacob Krautsch/GCO/Enron@ENRON, Alan Locke/GCO/Enron@ENRON, Jesse Logan/GCO/Enron@ENRON, Gerry Boyd/GCO/Enron@ENRON, Maurice Rayburn/GCO/Enron@ENRON, Mike Polan/GCO/Enron@Enron, Pat Clynes/Corp/Enron@ENRON, Daren J Farmer/HOU/ECT@ECT, Stacey Neuweiler/HOU/ECT@ECT, David Baumbach/HOU/ECT@ECT, O'Neal D Winfree/HOU/ECT@ECT, Irene Flynn/HOU/ECT@ECT, Michael Eiben/HOU/ECT@ECT, Donna Consemiu/HOU/ECT@ECT, Cathy L Harris/HOU/ECT@ECT, Howard B Camp/HOU/ECT@ECT, Jackie Morgan/HOU/ECT@ECT, Cheryl Dudley/HOU/ECT@ECT, Veronica I Arriaga/HOU/ECT@ECT, Janie Aguayo/HOU/ECT@ECT, Amelia Alland/HOU/ECT@ECT, Michael Walters/HOU/ECT@ECT, Julie Meyers/HOU/ECT@ECT, Mary M Smith/HOU/ECT@ECT, Tom Acton/Corp/Enron@ENRON, Mary Poorman/NA/Enron@Enron, Aimee Lannou/HOU/ECT@ECT, Carlos J Rodriguez/HOU/ECT@ECT, Sabrae Zajac/HOU/ECT@ECT, Robert Cotten/HOU/ECT@ECT, Trisha Hughes/HOU/ECT@ECT, Jackie Young/HOU/ECT@ECT, Rita Wynne/HOU/ECT@ECT, Leslie Robinson/Corp/Enron@ENRON, Jason Vogler/NA/Enron@Enron, Fred Boas/HOU/ECT@ECT, Karen Lindley/Corp/Enron@ENRON, Anita Luong/HOU/ECT@ECT, Thu T Nguyen/HOU/ECT@ECT, Cynthia Hakemack/HOU/ECT@ECT, Cynthia Shoup/HOU/ECT@ECT, Gregg Lenart/HOU/ECT@ECT, Charlene Richmond/HOU/ECT@ECT, Paul Couvillon/Corp/Enron@Enron, Joanie H Ngo/HOU/ECT@ECT, Rebecca Griffin/NA/Enron@Enron, Nick Moshou/Corp/Enron@ENRON, Jim Coffey/HOU/ECT@ECT, Karry Kendall/HOU/ECT@ECT, Yvette Miroballi/HOU/ECT@ECT, Melissa Graves/HOU/ECT@ECT, Karen Gruesen/HOU/ECT@ECT, Blanca A Lopez/HOU/ECT@ECT, Anita Eisenbrandt/HOU/ECT@ECT, Cassandra Pollack/Corp/Enron@Enron, Jackie Nelson/HOU/ECT@ECT, Terrance Pinckney/NA/Enron@Enron, Jacquelyn Azore/NA/Enron@Enron, Erica Wright/NA/Enron@Enron, Ana Maria Hernandez/NA/Enron@Enron, Tammy Masters/NA/Enron@Enron, James Little/NA/Enron@ENRON, Becky Pitre/HOU/ECT@ECT, Frank Cernosek/HOU/ECT@ECT, Donald P Reinhardt/HOU/ECT@ECT, Vance L Taylor/HOU/ECT@ECT, Susan Smith/HOU/ECT@ECT, Susie Orsak/Corp/Enron@Enron, Carol Carter/HOU/ECT@ECT, Liz Bellamy/NA/Enron@Enron cc: Subject: Sale of HPL To all: The proposed sale of HPL to American Electric Power (AEP) has been signed and the conditions for the acquisition should be completed within the coming months. Over the next few days, I will be forwarding more details about the transition process. These details will outline the employment opportunities and transfer process to AEP. AEP is eager to complete these arrangements, as the pipeline is only as valuable as the people who operate it. During the transition period, it is important that we keep the pipe line operating at our historical level of reliability in order to meet the energy needs of our customers. Regards, Brian

sorry i forgot to attach my draft memo to my earlier e-mail - duh hate when i do that! ? here it is again, but now revised to reflect your e-mail comments sent around today (accurately i hope) ? look forward to discussing with all at 7:30 - cv ? ? ? Carolyn M. Vavrek Manager - Human Capital Advisory Services Deloitte & Touche 50 Fremont Street San Francisco, CA? 94105 phone: 415-783-5137 fax: 415-783-8760 e-mail: [email protected] -----Original Message----- From: Anil Sama [mailto:[email protected]] Sent: Wednesday, February 07, 2001 11:14 AM To: Mark Guinney; [email protected]; [email protected] Cc: [email protected]; [email protected] Subject: Re: Re[2]: HD Case: Proposed Plan All, I was thinking along similar lines - HD should moderate growth in the coming year - only invest in opening 2-3 new stores in locations with the highest estimated ROI, or perhaps those that are?the most complete (since there is some construction in progress already) to reduce any incremental expense.? Focus instead on improving operating efficiencies which have been steadily deteriorating to increase investor confidence/stock price. Then expand via another public offering at a later date.? Sarah had asked in class to look?into whether HD was going to be able to make payroll in the coming year. I tried to do this assuming no expansion (freeze all construction in progress). Using Mark's spreadsheet and backing out the new store acquisition costs, and reducing inventories that would have been part of the new stores, this still leaves a cash need from financing of $25.8 mil in order to meet operational needs. So they?are going to need to tap into credit lines for at least this amount regardless. I will be in class tonight. If you have a conf call, could we do it at 7:30? If we do, please send across details before 5PM, or else you can just leave me a voice mail on my cell at 916 600 1245 and I'll retrieve it during break... -Anil ? Mark Guinney <[email protected]> wrote: Jeff, I assume you can coordinate a conference call from work. Call me at home: 415-388-2548. Excellent points and I was thinking along similar lines. Questions I have: How do you know that LT debt gives more advantageous terms? We have no yield curve info nor do we know their credit rating. At what point does their borrowing exceed their covenents? Is our strategy to not raise the required $66million or to stop/slow PPE spending so that the $66m is not needed? ********************************************** Mark D. Guinney, CFA Consultant Watson Wyatt Investment Consulting 345 California Street, Ste. 1400 San Francisco, CA 94104 (415) 733-4487 ph. (415) 733-4190 fax ____________________Reply Separator____________________ Subject: Re: HD Case: Proposed Plan Author: [email protected] Date: 02/07/2001 11:25 AM Hi folks: Since we have only one page, the write up for number 4 will have to be very brief. Before writing it, though, I wanted to offer a few bullets regarding what angle we might take, and let folks respond, comment, counter, etc. before writing it up. I'll clean and beef up once we've agreed to the approach we'd like to take to question #4. Finally, I can work from my office on this this evening, which means that I can use the conference call capability of my office phone to patch everyone in if we'd like to do a conference call. If that's what folks would like to do, I'd prefer to do the call at around 7 PM. Just let me know. Best, Jeff The question for #4 is: Stock price is down 23%, significant debt has already been tapped to support massive growth and covenants on that debt restrict taking on a lot more debt. What should HD do w.r.t. current operations and future growth strategy? In the near term focus less on growth and more on getting margins and EBIT growth back in line with results from previous years. (Management's Letter to Shareholders alludes to this, but it's difficult to determine whether management is just paying lip service to the need to capitalize on the growth spurt and grown earnings, or continue on the growth effort.) With respect to funding future (more moderate growth), the company does have some room to increase long-term debt (e.g., current ratio for 1986 = 2.26). It seems that HD would get better terms and have increased flexibility by issuing additional debt rather than relying on lines of credit. As such, HD ought to look those sources of funding and fill in any "funding gaps" with funds from the line of credit. Given the significant drop in stock price, HD is likely better off in the near term 1) moderating growth, 2) improving performance to generate cash internally, and 3) using long-term debt issuance to provide the funds needed. Once performance and stock price improves, then HD should consider a stock issuance. How can company improve operating performance? Reduce selling, store operating expenses and pre-opening expenses Improve receivables turnover Improve inventory turnover Improve per store/sales Consider closing poor-performing stores All of which will improve margins Should company change its strategy? If so how? Shift from meteoric growth to moderate, targeted growth, and focus on generating positive cash flow from operations Focus on improving performance at existing stores; specifically focus on controlling costs and asset turnover and productivity Consider another debt issuance rather than rely extensively on credit line in order to decrease cost of funds and increase flexibilit Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices. - home depot memo.doc

Energy Insight will be off on Thursday, Nov. 22 and Friday, Nov. 23 for the Thanksgiving holiday. Energy Insight News for Monday, November 26, 2001 Coal unit retirements about to begin It's been long discussed-certainly cussed by some-but the slow trickle of coal unit retirements is slated to begin. According to Boulder, Colo.-based RDI POWERdat database, more than 28,000 MW of coal-fired capacity could be taken out of the generation mix between now and 2044. While the names and numbers were culled from information provided by the U.S. Department of Energy's Energy Information Administration, 2044 is a long way out-particularly in an industry that is trying to regain its stomach while riding the peaks and valleys of electricity restructuring. Thus, industry watchers feel more comfortable talking about what is slated to take place between 2001 and 2010. According to POWERdat, nearly 8,800 MW of coal-fired capacity could fade away. Most retirements will be smaller, older units where retrofitting new emissions control equipment likely is prohibitively expensive, said Mark Morey, an Arlington, Va.-based principal with RDI Consulting. Environmental performance is the primary reason for closings, said Betsy Vaninetti, a senior coal consultant with RDI. "A lot of operators with plants built before 1970 and the Clean Air Act are not going to spend a lot of money to retrofit old units," she said. "When you have a unit which is 40, 50, 60 years old, it just is not very efficient," said Robert Boyer, vice president of power generation for Southern Co. and its operating unit Georgia Power. "If a component breaks on one of these older, smaller units, we probably would let it go, or if the environmental retrofit was too cost prohibitive, we also would just retire it." Southern is the company that potentially has the most units to be taken off-line. The Atlanta, Ga.-based giant has 48 units and 16,319 MW of capacity slated to be taken down between 2005 and 2044. Fifteen Southern units totaling 1,323 MW are projected to be shuttered by 2011. Read the entire story at http://www.energyinsight.com. Also, catch the latest news headlines on Energy Insight Executive, updated twice daily. /////////////////////////////////////////////// Market Brief Wednesday, November 21 Stocks Close Change % Change DJIA 9,834.68 (66.7) -0.67% DJ 15 Util. 286.47 (5.7) -1.95% NASDAQ 1,875.05 (5.46) -0.29% S&P 500 1,137.03 (5.6) -0.49% Market Vols Close Change % Change AMEX (000) 112,402 (37,967.0) -25.25% NASDAQ (000) 1,576,557 (404,033.0) -20.40% NYSE (000) 1,022,669 (300,581.0) -22.72% Commodities Close Change % Change Crude Oil (Dec) 18.96 1.24 7.00% Heating Oil (Dec) 0.5342 (0.002) -0.34% Nat. Gas (Henry) 2.813 (0.037) -1.30% Propane (Dec) 31.50 0.25 0.80% Palo Verde (Dec) 26.25 0.00 0.00% COB (Dec) 31.50 0.00 0.00% PJM (Dec) 27.60 0.00 0.00% Dollar US $ Close Change % Change Australia $ 1.936 0.014 0.73% Canada $ 1.60 0.008 0.50% Germany Dmark 2.23 0.011 0.50% Euro 0.8785 (0.004) -0.48% Japan ?en 123.2 0.500 0.41% Mexico NP 9.15 0.000 0.00% UK Pound 0.7067 0.0021 0.30% Foreign Indices Close Change % Change Arg MerVal 205.28 0.41 0.20% Austr All Ord. 3,272.50 (15.80) -0.48% Braz Bovespa 12793.79 155.66 1.23% Can TSE 300 7330.90 (50.30) -0.68% Germany DAX 5087.03 (9.15) -0.18% HK HangSeng 11173.92 (51.87) -0.46% Japan Nikkei 225 10661.08 85.46 0.81% Mexico IPC 5674.41 (24.78) -0.43% UK FTSE 100 5,313.80 15.10 0.28% Source: Yahoo! & TradingDay.com ////////////////////////////////////////////// Executive News Enron shares close at $5.01, down 28.33% from Tuesday Enron stock Wednesday closed at $5.01/share, down $1.98, or 28.33%, from Tuesday's close of $6.99. The stock fell to $6.66 on the open to a low of $4.55. Volume was 114.8 million shares. Enron's 52-week high was $84.88, on Dec 29, 2000. Dynegy, which has agreed to buy Enron, closed at $39.76, down $1.94, or 4.65%. Volume was 10.1 million shares. Dynegy issued a statement of support for Enron earlier in the day. The New York Stock Exchange will have a half-day's trading Friday, the day after Thanksgiving. California ISO sends $955 million power bill to DWR The California Independent System Operator (ISO) Wednesday sent a $955 million bill to the state Department of Water Resources (DWR) for wholesale power the agency purchased between January and July. The action complies with a Nov. 7 Federal Energy Regulatory Commission order directing the ISO to bill DWR and set a schedule for bringing past due amounts current by February. In a draft schedule sent with its bill, the ISO said September and October invoices will be sent to DWR in December and that the August amount is in process. DWR has already set aside $1.2 billion for past power purchases. To subscribe to our Executive News Service, which is updated twice daily, log on to http://www.energyinsight.com, or contact Platt's Direct Response Team at 1-800-424-2908 (if outside the United States call 1-720-548-5700). ///////////////////////////////////////////////

The Austin Group Energy, L.P. Monthly Newsletter Let's describe a typical and recurring nightmare for generating unit operators. It's noon on August 15, temperatures have reached the upper 90s all week; you're well into your reserve margin to serve native load, when a unit trips off line. Do you scramble to find replacement power at record high prices and worry about the consequences later? Or, have you prepared for this event? When the degree of risk has not been quantified, fear of the unknown can lead to restless nights, and understandably so. The financial implications can be astounding when a unit outage occurs during a period of high spikes in market prices. How does this relate to the recruitment and hiring of talent within your shop? Allow me to bring the story together. What would you do if your top employee came to you and said, "You've been great to me and I've learned alot, but I just accepted a job at your level right down the road and they like me so much they want me to start tomorrow." Do you spring into 911 mode or are you ready for this day. Start a relationship today with The Austin Group Energy. We will keep you aware of all available talent in your market area. These candidates are currently employed and do not answer ads. They stay in touch with opportunities through us to ensure confidentiality. Why would Top 5 marketing companies pay us for the recruitment and placement of over 400 successful hires when they could hire them on their own. The smart and proactive companies understand how to outpace the pack when it comes to hiring talent, they call The Austin Group Energy. THE FOLLOWING CANDIDATES ARE AVAILABLE FOR IMMEDIATE OPPORTUNITIES: Ref# 00012123 Power Options Trading Desk This PhD candidate is responsible for long term derivatives trades/structures (Asian options, heat rate options, weather/power derivatives structures, swing options etc.) Ref# 00012124 Rotational Program- Risk Analytics This MBA Finance candidate is analyzing/evaluating structured transactions and derivative instruments. Has developed a VBA-based delta-adjusted risk exposure model for all asset management groups. Designed intermediate-term forward power curve forecasting model based on gas forward curve. Created Visual Basic Monte Carlo simulator for Excel for option analysis. Ref# 00012125 Quantitative Analyst This M.S. in Applied Mathematics candidate builds short term models necessary to forecast/schedule usage on a portfolio basis, by various levels of aggregation (e.g. region, congestion zone, weather zone, customer, etc.) Constructing statistical and econometric models to accurately predict seasonal customer usage based on rate class, calendar and geographic climate patterns. Ref# 00012126 Quantitative Analyst - Manager This candidate developed and implemented two Value-At-Risk (VAR) methods for Natural Gas. Developed and implemented models for pricing and hedging exotic natural gas options (Gas Daily and Peaker). OpenLink experience with VaR and mark-to-market calculations. Ref# 00012127 Director Derivatives Trading and Portfolio Management Developed Nymex and locational options, position risk management model. Evaluated and assisted in the process of selecting and implementing a new real time front and back office financial system with VAR capabilities. Structured deals for marketers using embedded financial products and traded natural gas options and fixed for float swaps. Priced and hedged advanced options and swaps such as swaptions, asians, extendibles, expandibles, and spread options. Ref# 00012128 Risk Control Analyst Support Origination and Trading activities by providing daily mark-to-market values and VaR reports through accurate and timely entry of financial transactions into RMS system. Maintain database for RMS system and Integrated Commodity Trading System (ICTS) for entry of financial trades. Ref# 00012129 Risk Manager Responsible for all mid-office trader support functions. Responsibilities include daily senior management position and P&L reporting, process improvements, system implementations, structuring of originated transactions, and rollout of an operational analysis plan. Ref# 00012130 Senior Commercial Analyst: Pricing and Structures Developing model to incorporate basis and transportation into gas fuel costs utilized in mark-to-market valuation of a gas-fired generation asset. Determined market value of regional power by confirming the marks estimated by the trade desk against independent broker prices. Forecasted resulting previous day's trade-to-market figure for preliminary valuation of book value. Ref# 00012131 Director - Risk Management Analyze financial markets and advise physical traders of hedging and trading opportunities. Analyze market, secure management approval of trading strategies and execute financial trades. Generate position reports for upper management. Ref# 00012132 Risk Management Specialist Perform risk management functions for the gas trading organization, including daily position and P&L reporting. Ensure deal validation and perform problem resolution for executed trades. Create daily VaR estimates for both cash and term traders. Ref# 00012133 Risk Analyst Determine market value of regional power, confirming the market values estimated by trade desk against prices set for independent brokers. Forecast resulting previous day's trade-to-market figure for preliminary valuation of book value. Participate in daily Value at Risk calculations, exception reporting for daily variances, updating of daily price curves, and updating proprietary models which value long term transactions. Paul Johnson President- TAGE Ofc (281) 600-8145 Mbl (281) 814-3886 Visit our Website http://www.austingrp.com - Paul Johnson.vcf

----- Forwarded by Jeff Dasovich/NA/Enron on 01/20/2001 11:01 PM ----- "Julee Malinowski-Ball" <[email protected]> 01/19/2001 07:13 PM Please respond to "Julee Malinowski-Ball" To: "Jan Smutny Jones" <[email protected]>, "Steven Kelley" <[email protected]>, "Katie Kaplan" <[email protected]> cc: "William Hall" <[email protected]>, "Tony Wetzel" <[email protected]>, "Sue Mara" <[email protected]>, "Steven Kelley" <[email protected]>, "Steve Ponder" <[email protected]>, "Stephanie Newell" <[email protected]>, "Roger Pelote" <[email protected]>, "Robert Lamkin" <[email protected]>, "Richard Hyde" <[email protected]>, "Paula Soos" <[email protected]>, "Nam Nguyen" <[email protected]>, "Marty McFadden" <[email protected]>, "Lynn Lednicky" <[email protected]>, "kent Palmerton" <[email protected]>, "Ken Hoffman" <[email protected]>, "Kassandra Gough" <[email protected]>, "Jonathan Weisgall" <[email protected]>, "John Stout" <[email protected]>, "Joe Ronan" <[email protected]>, "Joe Greco" <[email protected]>, "Jim Willey" <[email protected]>, "Jeff Dasovich" <[email protected]>, "Jack Pigott" <[email protected]>, "Hap Boyd" <[email protected]>, "Greg Blue" <[email protected]>, "Frank DeRosa" <[email protected]>, "Ed Tomeo" <[email protected]>, "Duane Nelson" <[email protected]>, "David Parquet" <[email protected]>, "Curtis Kebler" <[email protected]>, "Carolyn Baker" <[email protected]>, "Bob Escalante" <[email protected]>, "Bob Ellery" <[email protected]>, "Bill Woods" <[email protected]>, "Bill Carlson" <[email protected]>, "Craig Chancellor" <[email protected]>, "Eric Eisenman" <[email protected]>, "Kate Castillo" <[email protected]> Subject: Legislative status report week ending 1/19 Date: 1/19/01 To: Jan Smutny-Jones, Steven Kelley, Katie Kaplan Cc: IEP Board of Directors From: Julee Malinowski-Ball, Edson + Modisette RE: Legislative status report week ending 1/19 RECENT EVENTS: -- The first two special session bills were signed by the Governor this week: AB 5x (Keeley), relating to reconstituting the ISO and PX governing boards, and 6x (Pescetti/Dutra), relating to utility retention of assets. Includes in AB 5x was language requiring the ISO to make a list of California power plants that are out of service due to either a planned or unplanned outage available on the Internet on a daily basis. -- Governor Davis has announced some appointments to the new ISO Board. They include: Michael Kahn from the EOB as chair, Maria Contreras-Sweet who is the Secretary of Business Transportation and Housing, Carl Guardino from the Silicon Valley Manufacturing Group, and Mike Florio from TURN. The fifth position still remains vacant. It is unclear if FERC will even approve this new makeup. -- SB 7x (Burton) caught everyone
,s attention this week as it was introduced, maneuvered through the legislative process and also signed by the Governor within a 24 hour period. SB 7x clarifies the authority of the Department of Water Resources on a temporary basis to purchase electricity (in lieu of AB 1x). It gives the agency a 12-day window to purchase electricity and sell it at cost. The legislation specifies that no contract may be entered into later than February 15, 2001 and it sunsets on that date. -- The next legislative step taken this week was to continue the progress made in the Assembly last week on AB 1x (Keeley/Migden). AB 1x authorizes the Department of Water Resources to contract with any person or entity to purchase electricity for up to 5.5. center per kWh. The Senate Energy Committee met Friday afternoon to debate the measure. Committee members themselves brought up a number of concerns, including those previously articulated by IEP and some member companies. Specifically, IEP opposes the 5.5 cap and language that implies entities that
&furnish
8 power would be
&public utilities.
8 Both were highlighted in today
,s hearing by the Chair of the committee and the author as provisions that need to be addressed before the bill moves forward. The committee expects to be drafting potential amendments over the weekend and will resume deliberations on Monday at a time to be announced. I am faxing the amendments proposed and submitted to the committee by Southern for your review which address these issues and more. -- Senator Burton also held a press conference this week to introduce SB 6x which would create a state power authority that has the power to, among other things, finance the construction of additional generating capacity and provide financing for older plants to make necessary retrofits for efficiency improvements. Power generated from this financing will be sold to the state at cost. The press release is attached. -- Still sitting on the back burner for the moment (which could change at any moment) is any legislative play on long-term contracting and siting changes. IEP has provided comments on both issues and is participating in any discussions on these issues as they arise. -- Last but not least, the QF issues has reached the legislative arena this week. Asm. Keeley has been intent on getting all the parties together to negotiate the SCE QF contracts. Negotiations will continue through the weekend. UPCOMING EVENTS: -- There will be a Senate Energy Committee hearing on Monday to continue deliberations on AB 1x (Keeley). So far, I have no other scheduled meetings or hearings for next week. Stay Tuned. --end-- Julee Malinowski-Ball Senior Associate Edson + Modisette 916-552-7070 FAX-552-7075 [email protected]

Si, Se?or Paras! -----Original Message----- From: Parks, Joe [mailto:[email protected]] Sent: Tuesday, June 25, 2002 3:09 PM To: Fenner, Chet Subject: RE: YOU CAN THANK ME LATER its called liquidation -----Original Message----- From: Fenner, Chet [mailto:[email protected]] Sent: Tuesday, June 25, 2002 3:07 PM To: Parks, Joe Subject: RE: YOU CAN THANK ME LATER Wooo, what a day! Blood-red screen, except for ORCL and good ol' PRGN (climbed 8.7% to a buck even!). Dollar trading right in hand w/ the equities. -----Original Message----- From: Parks, Joe [mailto:[email protected]] Sent: Tuesday, June 25, 2002 3:01 PM To: Fenner, Chet Subject: RE: YOU CAN THANK ME LATER i figure by next week it should be good and sold off, i might get flat into the fourth of july, because if there isnt a terriost attack, the monkeys will come back and buy it -----Original Message----- From: Fenner, Chet [mailto:[email protected]] Sent: Tuesday, June 25, 2002 2:57 PM To: Parks, Joe Subject: RE: YOU CAN THANK ME LATER Just get us there by the end of the week and I won't have to worry about my theta. -----Original Message----- From: Parks, Joe [mailto:[email protected]] Sent: Tuesday, June 25, 2002 2:56 PM To: Fenner, Chet Subject: RE: YOU CAN THANK ME LATER i am thinking 87-90 on DIA, however you manage your own theta. if i see something that really scares me i will let you know -----Original Message----- From: Fenner, Chet [mailto:[email protected]] Sent: Tuesday, June 25, 2002 2:55 PM To: Parks, Joe Subject: RE: YOU CAN THANK ME LATER Now, what I'll REALLY need you for is telling me when to bail!!! -----Original Message----- From: Parks, Joe [mailto:[email protected]] Sent: Tuesday, June 25, 2002 2:39 PM To: Chet Fenner (E-mail) Subject: DIA:YOU CAN THANK ME LATER ************************************************************************ This e-mail is the property of Bridgeline Holdings, L.P. and/or its relevant affiliate(s) and may contain confidential and privileged material for the sole use of the intended recipient(s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Bridgeline Holdings, L.P. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. ************************************************************************ ************************************************************************ This e-mail is the property of Bridgeline Holdings, L.P. and/or its relevant affiliate(s) and may contain confidential and privileged material for the sole use of the intended recipient(s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Bridgeline Holdings, L.P. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. ************************************************************************ ************************************************************************ This e-mail is the property of Bridgeline Holdings, L.P. and/or its relevant affiliate(s) and may contain confidential and privileged material for the sole use of the intended recipient(s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Bridgeline Holdings, L.P. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. ************************************************************************ ************************************************************************ This e-mail is the property of Bridgeline Holdings, L.P. and/or its relevant affiliate(s) and may contain confidential and privileged material for the sole use of the intended recipient(s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Bridgeline Holdings, L.P. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. ************************************************************************

FYI Also-- I talked to John Ale ,the GC of Azurix today. They are looking for attys. I don't know their attitude about recruiters. ---------------------- Forwarded by Richard B Sanders/HOU/ECT on 07/06/99 05:06 PM --------------------------- Enron Capital & Trade Resources Corp. From: Office Chairman @ ENRON 07/01/99 12:33 PM To: Enron Worldwide cc: Subject: Organizational Changes Interoffice Memorandum Enron's performance has been exceptional. This performance is reflected in our stock price, in the recognition we receive in the media and financial communities, and, most importantly, in the enthusiasm of our people. It has been clear to us for some time that we are driving fundamental change in the marketplace and that our natural gas, electricity and communications networks can be positioned for even greater growth. A
&new economy
8 is emerging, an economy based on intellectual capital and the compelling economics of networks. Capturing the opportunities in this new economy calls for increased coordination and integration across our wholesale (ECT, ECM, EI), retail (EES), and communications (ECI) businesses. It is our intention to combine the operations of these businesses into a cohesive organization that will ensure we realize the growth we foresee in all our businesses. To this end, we are initiating a number of organization and staffing changes in these businesses and related changes in the Enron Office of the Chairman, in Corporate Staff groups, and in a number of management/personnel committees. Other business units, EOG, GPG, PGE, and Azurix, will not be directly affected. Accordingly, the following changes are effective immediately. Enron Office of the Chairman Joe Sutton will join the Office of the Chairman as Vice Chairman. In his new role, Joe will work with the two of us to manage the operations of the company. Rebecca Mark, previously Vice Chairman of the company, will now fully concentrate on her responsibilities as Chairman and CEO of Azurix, our most recent public company. Rebecca has also been elected to the Enron Board of Directors, effective today. Ken Harrison, previously Vice Chairman of the company, will fully concentrate on his responsibilities as Chairman and CEO of Portland General Electric and Non-Executive Chairman of Enron Communications. Ken will continue to serve on Enron's Board of Directors. Redefined Business Units ECT, ECM, EI, EES, and ECI will be regrouped into eight regions/businesses and five global functions. Each region/business will be operated as an independent entity but will coordinate staffing, career paths, compensation and performance review across all units. Each global function will provide its specialized expertise across all regions/businesses. Included in these functions is a new technology function, which will focus on information systems and growth of our e-commerce capabilities where we believe there is enormous potential. These organizational units and their leadership are as follows: Regions/Businesses North America: Cliff Baxter, CEO; Kevin Hannon, COO Europe: Mark Frevert, CEO; John Sherriff, President; Dan McCarty, COO South America: Jim Bannantine, Co-CEO; Diomedes Christodoulou, Co-CEO India: Sanjay Bhatnagar, CEO Caribbean, Middle East: David Haug, CEO Asia, Africa: Rebecca McDonald, CEO EES: Lou Pai, CEO; Tom White, Vice Chairman ECI: Joe Hirko, Co-CEO; Ken Rice, Co-CEO (Ken Harrison
) non-executive Chairman) Global Functions Risk Management: Greg Whalley, CEO Finance: Andy Fastow, CFO; Jeff McMahon, Treasurer Asset Operations: Kurt Huneke, CEO EE&CC: Larry Izzo, CEO Technology: Mike McConnell, CEO Corporate Staff All corporate and EI staff units will be regrouped into six corporate staff groups. These staff groups will support all operations of Enron. These organizational units and their leadership are as follows: Legal: Jim Derrick, EVP and General Counsel; Rob Walls, SVP and Deputy General Counsel Risk Assessment and Control: Rick Buy, EVP Accounting and HR: Rick Causey, EVP and Chief Accounting Officer Investor Relations: Mark Koenig, EVP Other Staff Groups: Steve Kean, EVP and Chief of Staff Corporate Development: To be determined. Committees A new Executive Committee will be formed to replace the existing Management and Operating Committees. Membership will be as follows: Ken Lay, Chairman Jeff Skilling, Alternate Chairman Joe Sutton Stan Horton Jim Bannantine Kurt Huneke Cliff Baxter Larry Izzo Sanjay Bhatnagar Steve Kean Rick Buy Mark Koenig Rick Causey Rebecca Mark (Ad hoc) Diomedes Christodoulou Mike McConnell Jim Derrick Rebecca McDonald Andy Fastow Jeff McMahon Peggy Fowler Lou Pai Mark Frevert Mark Papa (Ad hoc) Kevin Hannon Ken Rice Ken Harrison John Sherriff David Haug Greg Whalley Joe Hirko Tom White Four other committees, which will be essential to the success of this new organization, will be formed. These committees are: Managing Director and SVP Personnel Committee: Jeff Skilling, Chairman Vice President Personnel Committee: Kevin Hannon, Chairman Vision and Values Committee: Joe Sutton, Chairman Workforce Diversity: Ken Lay, Chairman Details of membership on these committees will follow shortly. Summary Over the next several weeks all of the specifics of this reorganization will be further ironed out and communicated. In the meantime, please bear with us - we are confident that these changes will have a significant, positive impact on the operation and growth of the company.

NETWORK WORLD NEWSLETTER: MIKE KARP on STORAGE IN THE ENTERPRISE 10/25/01 - Today's focus: Companies worth investigating Dear Wincenty Kaminski, In this issue: * What kinds of companies are worth looking at? * Links related to storage * Featured reader resource _______________________________________________________________ More with Less Budgets are either stagnant or shrinking this year, and net executives are being forced to do more with less money - and often fewer people. We've compiled a series of Network World articles, newsletters and columns you can use to make the most of your budget and resources. http://nww1.com/go/ad169.html _______________________________________________________________ Today's focus: Companies worth investigating By Mike Karp Just what is a good working definition of Storage Resource Management? As I pointed out last week, understanding a vendor's definition of SRM goes a long way toward helping you understand their approach to the technology and the value the vendor can deliver. Some companies don't lay out this information too well when they visit prospective customers, either because they didn't consider including it in their presentation, or (and this is indicative of an entirely different type of company) they are too focused on their technology for technology's sake. Most of us shouldn't waste too much time on vendors that have not thought about how they can help us - if they haven't taken the time to understand our business needs, we probably shouldn't take the time to listen to their needs. We can perhaps be more generous to the other set of companies, the group that often develops technology for technology's sake. Those vendors are often young firms with ideas that are exciting, new and frequently useful, but a reality check shows that they need to realize (as has been so well pointed out in the last few years), that this sort of business approach only appeals to a very small segment of the market referred to as "early adopters." It doesn't carry much weight with the rest of us, the majority of whom need to see proven business values to justify their expenditures. Historically, new and relatively small companies have fallen into this second category: it's the "two guys in a garage syndrome." These days however, I see several that are getting past the technology-first bias and seem to be making a real effort to provide us with business solutions we can actually use. Every few weeks I like to point out one or two of these for you, on the theory that while what they do may not be right for most of you, it will likely be of use to some of you. And when they lay out their value propositions and identify their approach to SRM, it is easy for you to calibrate what they are bringing to the table. This week's interesting find is TrelliSoft, a company out of Glen Ellen, IL (http://www.trellisoft.com) that provides SRM services across a number of platforms. Its Java-based architecture potentially means a single solution to solving problems across a number of operating systems. The problems Trellisoft addresses include disk space optimization, quota enforcement, storage chargeback and capacity planning. One feature I particularly appreciated is its ability to identify files NOT backed up, which can go a long way toward eliminating surprises during the business day. If you would derive value from these capabilities in your shop, Trellisoft is probably worth a look. _______________________________________________________________ To contact Mike Karp: Mike Karp is senior analyst with Enterprise Management Associates (http://www.enterprisemanagement.com) in Boulder, Colo., an analyst and market research firm focusing exclusively on enterprise management. He works out of Portsmouth, N.H., and Westboro, Mass., and can be reached via e-mail at mailto:[email protected] _______________________________________________________________ RELATED EDITORIAL LINKS Archive of the Storage newsletter: http://www.nwfusion.com/newsletters/stor/index.html _______________________________________________________________ FEATURED READER RESOURCE Network World Fusion's Net.Worker site Whether your company is growing larger or scaling back, corporate managers are looking for ways to cut costs while retaining and recruiting star employees. One smart solution - at least on paper - is to let some employees work from home. Network World's Net.Worker Web site bridges the gap between the telework concept and the hardware, software and services needed to make it happen. We bring you news and reviews, sound advice and keen insight into the technologies and solutions you need to manage a remote and mobile workforce. Visit http://www.nwfusion.com/net.worker/index.html _______________________________________________________________ May We Send You a Free Print Subscription? You've got the technology snapshot of your choice delivered at your fingertips each day. Now, extend your knowledge by receiving 51 FREE issues to our print publication. Apply today at http://www.nwwsubscribe.com/nl _______________________________________________________________ SUBSCRIPTION SERVICES To subscribe or unsubscribe to any Network World e-mail newsletters, go to: http://www.nwwsubscribe.com/news/scripts/notprinteditnews.asp To unsubscribe from promotional e-mail go to: http://www.nwwsubscribe.com/ep To change your e-mail address, go to: http://www.nwwsubscribe.com/news/scripts/changeemail.asp Subscription questions? Contact Customer Service by replying to this message. Have editorial comments? Write Jeff Caruso, Newsletter Editor, at: mailto:[email protected] For advertising information, write Jamie Kalbach, Fusion Sales Manager, at: mailto:[email protected] Copyright Network World, Inc., 2001 ------------------------ This message was sent to: [email protected]

At Enron, we
,re good at a lot of things: making markets, commoditizing products, managing risk, offering innovative energy solutions to customers
) the list goes on and on. However, one of the things we could do a lot better is watching our expenses. We
,re all shareholders in this company, and we need to spend our company
,s dollars as wisely as we spend our own. There are some simple, yet significant measures each of us can take to make sure we
,re careful with Enron
,s money. The Policy Committee has approved and recommended the following: ? Professional Services
) This is our largest area of discretionary spending, at more than $600 million last year.
&Professional Services
8 includes our contracts with outside law and accounting firms, contractors and other consulting groups. To make sure that we are negotiating the best rates and terms of service for the company across business units, we are requiring all future professional service contracts and those up for renewal to be negotiated through or in consultation with Global Strategic Sourcing (GSS), effective July 1. In addition, contracts for more than $5,000 must be pre-approved by the business unit senior executive or their designee and GSS. For more information, see http://ibuyit.enron.com. ? On-line expense reporting tool XMS
) XMS, our online expense reporting tool, enables us to expedite, monitor and report expenses. Effective July 1, all employees on domestic U.S. payroll will be required to use XMS for reimbursement of business-related expenses. To access XMS, go to http://xms.enron.com/. ? Enterprise wide portal
) We currently have 122 internal web sites across the company. The amount of technology work, marketing collateral, and other related costs required to develop and support so many portals is sizeable. It makes sense to have one Enron portal so you can efficiently access content and services through a single, personalized channel that will make it easier for you to find information and perform basic tasks online. This new company-wide portal, under the leadership of Tony Mends, will be launched in several phases beginning this fall. Another significant area where we can be more diligent in our spending is travel and entertainment. Enron has long had travel policies in place. As we have grown, we have not done as well as we should have in communicating those policies to new employees and reminding all employees to take advantage of the discounts we have negotiated. The availability of discounts and booking services online should make it easy to save money for the company without sacrificing the comfort of employees who travel. The following are common sense recommendations that we should all adhere to when traveling for business. Any regular deviations from these travel policy recommendations will be reviewed by each business unit leader. ? Air travel
) Employees are requested to use either Travel Agency in the Park (TAP) or the GSS-approved preferred travel agency for your location - all of which have access to the significant airfare discounts negotiated by GSS - or http://clicktrip.enron.com/enron, the new online travel booking service that allows employees to book their own travel with the same negotiated discounts. Employees who fly in the United States should book non-refundable coach tickets, which are typically 65 percent less than refundable tickets and can usually be changed by simply paying a $100 fee. For this reason, we strongly encourage all employees to purchase non-refundable domestic coach tickets when possible. ? Lodging
) GSS has also negotiated preferred rates at a number of hotel chains in many cities worldwide to accommodate each business unit
,s individual hotel policy. We recommend that you use Enron
,s list of preferred hotels to select accommodations that are in line with your business unit
,s policies. You can view the list at http://travel.enron.com. ? Car rental services
) When renting a car for business travel, employees should use our preferred car rental agencies
) National (U.S. and Canada) and Alamo (U.S.)- since the agreements we have negotiated are intended to protect you and Enron through the insurance coverage in our contract. Visit http://travel.enron.com for details and updates to services available outside the U.S. ? Off-site meetings
) All domestic-U.S. off-site meetings and events with more than 10 people should be coordinated through GSS, which will negotiate preferred rates for Enron. They can be reached at (713) 646-8311. Because there are differences between business units and offices, each business unit leader will follow up this memo with a communication further elaborating on these policies as they apply to their business unit. Each of us has a responsibility to make sure we do our part to ensure Enron retains its competitive edge. These recommendations are some basic, sensible actions we can take company-wide, but it is up to every employee to look for cost saving measures and do what makes sense in your daily activities. If you have an idea or a suggestion you would like to share with us, please e-mail us at [email protected]. A list of questions and answers about these policies is posted on http://ibuyit.enron.com/gss/ibuyit/csfaq.doc. If you have additional questions, Policy Committee member Kevin Hannon will host an eSpeak on Tuesday, June 19 at 10 a.m. Houston time to discuss these cost saving recommendations.

********************[ A D V E R T I S E M E N T ]**************** Is your online broker built to trade? Datek Online's advanced technology gives you fast executions, real time quotes and immediate portfolio updates. For a limited-time offer, go to http://www.datek.com/sivy/ Datek Online. Member NASD/SIPC. ***************************************************************** SIVY ON STOCKS from money.com December 8, 2000 Electroshock in California As the electricity shortage in the Golden State reaches a crisis, local utilities are getting badly squeezed. But independent power producers are having a field day. By Michael Sivy The craziness in Florida has overshadowed an even more bizarre story unfolding in California. The Golden State is running out of electricity and on Thursday declared an unprecedented "Stage Three" alert. To conserve power, emergency measures are being considered that would ordinarily be unthinkable. Pumps that move water from Northern to Southern California may be idled for part of the day. Older generating plants may be allowed to run at levels that cause excess air pollution. Extra water may be diverted through hydroelectric dams endangering rare salmon. And it's possible that residents won't be able to turn on their Christmas lights until after 7:30 p.m. California has been forced to contemplate such appalling measures because of a hopelessly bungled electricity deregulation scheme begun in 1998. At the time, experts predicted that competition could eventually cut electricity costs by as much as 30 percent. To help California utilities bolster their financial strength for the new competitive market, consumer prices were left partially fixed until 2002, while wholesale costs were allowed to seek market levels. Since surplus power could be bought fairly cheaply, California electric companies initially profited. But unfavorable weather boosted the demand for electricity, while higher oil and gas prices increased costs for suppliers. Prices for out-of-state power have soared: For example, the cheapest surplus Canadian power that used to go for as little as $10 per megawatt-hour recently hit $1,000 during periods of peak demand. It's all been a catastrophe for California electric companies, which have to pay market prices for power but are limited as to how much they can charge consumers. The big utilities most affected are Edison International, parent of Southern California Edison, and PG&E, parent of Pacific Gas & Electric. Both stocks are down more than 25 percent from their highs. But not all energy companies are suffering. One big beneficiary of this mess is Duke Energy [DUK]. In addition to traditional power operations in the Carolinas, Duke has an unregulated wholesale-energy subsidiary that does extensive business in California and recently signed electricity contracts with both Southern California Edison and Pacific Gas & Electric. The subsidiary is also expanding and modernizing its California plants. Those additions will account for a sizable chunk of the new generating capacity expected to come on line over the next two years. Duke has long been one of my favorite utilities. I recommended the stock in May and again in July at $62 a share (see "Power companies" [ http://www.money.com/money/depts/investing/sivy/archive/000510.html ] and "True value" [ http://www.money.com/money/depts/investing/sivy/archive/000728.html ]). Since then, the share price has risen 38 percent to $85.75. With projected earnings growth of 9.5 percent annually over the next five years and a 2.5 percent dividend yield, the stock offers a potential total return of 12 percent a year. At 19 times next year's estimated earnings, the stock looks pricey for a utility, but the company certainly has a fantastic position. I'd hang on to any that I already owned and buy more on any dips. ======================= CHAT TRANSCRIPTS MONEY's Michael Sivy identifies sectors and stocks that possess true value in a rocky market. http://www.money.com/chat/2000/001204.html Tech Investor David Futrelle discusses the current state of the tech market and the outlook for various sectors. http://www.money.com/chat/2000/001201.html ======================= ### Post your comments on Michael's column at: http://www.money.com/depts/investing/sivy/index.html To subscribe or unsubscribe to Sivy on Stocks, go to: http://www.money.com/email/ Earning Releases and Calls For the latest corporate earnings releases and online conference calls click on: http://money.ccbn.com * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Special Internet Offer!!! Sign up for a RISK-FREE issue of MONEY MAGAZINE at http://www.money.com/subscribe2 Or if you prefer call our toll-free number 1-800-544-4594 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * We may, from time to time, contact you with offers for Time Inc. products and services which we think may be of interest to you. If you would prefer us not to contact you in this manner, AND YOU DID NOT INDICATE THIS PREFERENCE AT THE TIME YOU SIGNED UP for the Sivy on Stocks online newsletter or any other Time Inc. online newsletters, please let us know by sending us an e-mail at <[email protected]>. Additionally, from time to time we may provide your e-mail address to carefully chosen companies whose offers we think may be of interest to you. 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i had to go to a wedding saturday night, so i didn't get much of a halloween. what did you do? i only have one more week until the exam....you'll have to come party with me. -----Original Message----- From: [email protected] [mailto:[email protected] ] Sent: Monday, October 29, 2001 5:01 PM To: Jilallen Subject: RE: how was the weekend? did i miss anything on saturday night for halloween? -----Original Message----- From: "Allen, Jill (US - Houston)" <[email protected]>@ENRON Sent: Monday, October 22, 2001 11:05 AM To: Lenhart, Matthew Subject: RE: i'm not sure where that place is yet, but i'll let you know. -----Original Message----- From: [email protected] [mailto:[email protected] << File: mailto:[email protected] >> ] Sent: Monday, October 22, 2001 10:44 AM To: Jilallen Subject: RE: definately. let me know. -----Original Message----- From: "Allen, Jill (US - Houston)" <[email protected]>@ENRON Sent: Monday, October 22, 2001 10:38 AM To: Lenhart, Matthew Subject: RE: oh - i forgot you said that you were going to N.O. i'm not driving in for the game either. a lot of people are though. let me know what ya'll do for the game. some people are going to a happy hour at Baker Street Pub on Wednesday - if any of you are interested. -----Original Message----- From: [email protected] [mailto:[email protected] << File: mailto:[email protected] >> << File: mailto:[email protected] << File: mailto:[email protected] >> >> ] Sent: Monday, October 22, 2001 9:47 AM To: Jilallen Subject: RE: i was in new orleans for tim blanchard's wedding. we watched it and then went out in the french quarter. i will probably watch the game this saturday at woodrows. i don't think i want to drive in for the game. -----Original Message----- From: "Allen, Jill (US - Houston)" <[email protected]>@ENRON Sent: Monday, October 22, 2001 8:32 AM To: Lenhart, Matthew Subject: RE: the weekend was pretty good. one of my friends was in from austin and some of us went to Cafe Adobe and Sherlock's on Friday night. saturday night i had a date - dinner and then to downing street. i had to work all day on sunday. what did you do? did you watch the game at woodrow's? -----Original Message----- From: [email protected] [mailto:[email protected] << File: mailto:[email protected] >> << File: mailto:[email protected] << File: mailto:[email protected] >> >> << File: mailto:[email protected] << File: mailto:[email protected] >> << File: mailto:[email protected] << File: mailto:[email protected] >> >> >> ] Sent: Monday, October 22, 2001 7:54 AM To: Jilallen Subject: RE: thurs night was ok. we went to taco milagro. that place is full of old folks now. how was the weekend? - This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law. - If you are not the intended recipient, you should delete this message and are hereby notified that any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited. ********************************************************************** 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 [email protected] 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. ********************************************************************** This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law. If you are not the intended recipient, you should delete this message. Any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited. This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law. If you are not the intended recipient, you should delete this message. Any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited. This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law. If you are not the intended recipient, you should delete this message. Any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited.

Thought you might be interested in this feedback from a recent conference. Regards, Jeff -----Original Message----- From: Kabel, Jeff Sent: Thursday, June 21, 2001 1:36 PM To: Thomas Sfikas/ENRON@enronXgate@ENRON; Steel Distribution Cc: McMahon, Jeffrey; Bowen Jr., Raymond Subject: RE: Steel Stradegies Conference - NYC 06/20/01 I am in complete agreement with the below (except I think the applause for our demise was, unfortunately, rather more aggressive!!). This was my first exposure to the non-European Steel players and found myself quite amazed at the few number of "public" advocates that we had at the conference in consideration of what we are offering. The one-on-one contact with the attendees was completely the opposite. We talked with a broad and numerous set of people who, coming to the booth as sceptics (they think that were are in the market just to grab the physical business), left with cards in hand and future risk management meetings in mind. Big buyers (eg GE, Emerson) and consultants (eg Accenture, McK, etc) were particularly receptive and should be courted as public advocates for what we are doing. Jeff -----Original Message----- From: Thomas Sfikas/ENRON@enronXgate@ENRON [mailto:[email protected]] Sent: 21 June 2001 17:05 To: Steel Distribution Cc: McMahon, Jeffrey; Bowen Jr., Raymond Subject: Steel Stradegies Conference - NYC 06/20/01 Yesterday, during the Panel V discussion, "Why Have Steel Middlemen Gone From The Most Threatened To Best Positioned", we got some direct feedback on the perception of Enron in the marketplace. The participants were, Fred Lamesh CEO of Trademarked Inc., Michael Siegel, CEO of Olympic Steel, Bud Siegel, CEO of Russell Metals, and Wilfred von Bulow, CEO of Ferrostaal Inc.; the moderator was Peter Marcus, Managing Partners of World Steel Dynamics. Each participant gave a brief speech about their respective companies which was followed by a Q&A session. The first mention of Enron was during Michael Siegal's speech in which he mentioned that Olympic Steel had "sold material to Enron" and that "Enron has recognized that steel is a commodity and for many countries represents currency." Michael was clearly proud of his transactions with Enron and agreed with our view of steel as a commodity. The real feedback came during the Q&A. Peter Marcus posted the following question to the panelists. "What about Enron? With their plan of entering the market with a number of hubs across the country, stocking material, with large scale distribution on a "spot" basis. Will this business model work? Do they offer any real value or not?" Following are the respective responses as best I can reiterate from my notes ( please don't quote me on this): Fred Lamesh, TradeArbed: "The concept is too new to make a judgment yet on credibility. Enron has certainly been successful in the past and should not be discounted. I question their ability to procure material at competitive enough levels to make this a profitable venture but there may be some value in their delivery of financial instruments." Michael Siegal, Olympic Steel: "Enron certainly has the financial means to withstand a "break even" business to support their financial instruments. At this point, we view them as just another entity in the market and until we can evaluate their performance, it is difficult to determine value. I am concerned though that they will prop up under capitalized distributors and allow them to operate despite mismanagement. One interesting and unique concept that they are trying to bring to the industry though is the idea that a contract is a contract, with liquidated damages for non performance. That would certainly be change (sporadic laughter among the crowd)." Bud Siegel, Russell Metals: "I addressed the Enron question last night during dinner and was told that I was abusive to the young lady from Enron (Tammy, I later understood that you had a less than cordial conversation with Bud the previous evening). I am calling Enron the "Hunts of the steel business" with their idea of buying up the market. The whole concept is like Swiss cheese. You can not put up depots, buy from steel mills, and expect to sell the same steel to distributors cheaper than the mills themselves. The logistical expenses alone guarantee failure. You can not be everything to everyone. Considering the current state of under financing in this industry, they will inevitably end up financing bankrupt people and take credit hits. Without immediate success, Enron has been known to exist markets quickly in the past, and I believe they will be gone within the year."(some sporadic applause) Wilfried von Bulow, Ferrostaal: "Right now they are just another additional player in the market. They will certainly have an impact but it would not be pragmatic to make a judgment yet on their ability to succeed. Let's watch it and see if there is any value to what they are trying to bring to the market." It appears to me that the focus on Enron in the market right now continues to be more on the physical aspects of what we are doing and not enough emphasis or credibility is being given to the financial tools we are bringing. It is obviously very easy to poke holes in a concept of trading large volumes of physical steel on a "spot" basis through the set up of physical hubs around the country. In the end, the only way we will be successful will be by bringing liquidity to our index through financial instruments. We need to focus more on educating customers about our financial tools, developing our curve, and bringing players to the market.

********************[ A D V E R T I S E M E N T ]**************** Stay on top of the market with Prudential Securities and Dow Jones. Click on the url below to learn how you can receive a 1-year subscription to The Wall Street Journal or BARRON'S, FREE! http://www.money.com/prudentialsecurities ***************************************************************** SIVY ON STOCKS from money.com December 11, 2000 Bad news bulls The news may be rotten for semiconductor stocks, but investors are betting on a rebound for leaders like Intel. By Michael Sivy Over the past few months, I've been warning readers that the technology sector remains in a broad downtrend that could last well into next year. Nonetheless, when tech stocks have been beaten down badly enough, shares of the strongest companies can rebound even in the face of continuing bad news, provided their long-term prospects are good enough. Exactly that sort of bad-news rebound has occurred for Applied Materials, the leading maker of semiconductor manufacturing equipment. Last week I wrote that the battered stock would remain volatile and could face a further decline of 10 percent to 15 percent. But I concluded that the shares were so cheap at $38.50 that the upside was 10 times as great as the downside. That proved true a lot faster than I expected. In the five trading days since that column ran, the stock has jumped 32 percent to nearly $51 a share. Admittedly, my good timing was largely luck, but the power of Applied Materials' comeback is a signal that other leading semiconductor stocks also may have fallen too far. As a rule, if you're considering stocks in the midst of bad news, it's smartest to stick with industry giants that have bullet-proof balance sheets. You can be confident that they'll ride out whatever bad conditions lie ahead, and they may even benefit as smaller competitors are forced to give up market share. On that basis, I'd certainly be inclined to look at Intel. Though it's the world's leading chipmaker, with $34 billion in annual sales, Intel has spent the year fouling up. Among the more spectacular errors, the company ran short of capacity because it underestimated demand last year and cut back capital spending. In addition, glitches were discovered last summer in Intel's turbocharged Pentium III, and many of the chips had to be recalled. Frankly, none of those failures will have much long-term impact. Intel remains the industry's 800-pound gorilla and long-term earnings growth is projected at more than 20 percent a year. Most analysts see continuing weakness in the chip market for the next six months, but see the cycle swinging up by late next year. In September, Intel warned that third-quarter earnings would be lousy, and the stock fell by $13 to $48 a share. At the time, I wrote that the stock was down to buyable levels but that it wouldn't rebound right away. Over the next three months, Intel sank to less than $32 amid a general selloff in technology. But after announcing on Friday that fourth-quarter results would be disappointing because of soft personal-computer sales, Intel rallied. On Monday, investors followed through by bidding the stock up another $3.50 to $37.50. Investors are clearly betting that the worst is over. And with the stock only about 20 percent above its lows (and 50 percent off its highs), I think it makes sense to get on board. After revising their 2001 estimates downward, analysts expect Intel to earn about $1.50 a share next year. At the current share price, that's a 25 P/E -- cheap for a 20 percent core growth rate. If Intel is missing from your portfolio, this may well be your best opportunity for years to come. ============================= UPCOMING CHAT: Monday, December 11 at 8pm ET, 5pm PT Money.com presents Third Avenue Value fund manager Martin Whitman. Join us for a discussion of how to pick the best value stocks, and find out why Whitman's fund has received top ratings by Morningstar.com. http://www.money.com/chat/ AOL keyword: LIVE CHAT TRANSCRIPT MONEY's Laura Lallos tells you how to select the best mutual funds for you, and how to protect your investments in a volatile market. http://www.money.com/chat/2000/001208a.html ============================= ### Post your comments on Michael's column at: http://www.money.com/depts/investing/sivy/index.html To subscribe or unsubscribe to Sivy on Stocks, go to: http://www.money.com/email/ Earning Releases and Calls For the latest corporate earnings releases and online conference calls click on: http://money.ccbn.com * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Special Internet Offer!!! 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> -----Original Message----- > From: Ledene, Ben > Sent: Tuesday, April 17, 2001 11:42 AM > To: '[email protected]' > Subject: FW: Wild Goose Open Season Package > > Expansion Firm Base Load Storage ("BLS") Service Open Season > > Wild Goose Storage Inc. is planning to expand its facility located in > Butte County in northern California and connected to PG&E for service > commencing as early as April 1, 2003. This expansion could increase the > facility capacities as follows: > > Existing Capacity Capacity Following Expansion > Working Gas Volume 14 Bcf 38 > Bcf > Maximum Injection Rate 80 MMcfd 450 > MMcfd > Maximum Withdrawal Rate 200 MMcfd 650 MMcfd > > This open season provides for an in-service date commencing April 1, 2004 > and an opportunity to participate in an "early service option" which could > have service available by April 1, 2003. The in-service date is subject to > CPUC approval by September 1, 2002 and the successful completion of new > facility construction. > > Customer offers are required by 2:00 pm MST, Tuesday May 22, 2001 > > Customer offers must be reasonably open for acceptance by Wild Goose > Storage Inc. until 2:00 pm MST, Wednesday June 20, 2001 subject only to > significant changes in market conditions and final approval of customer's > management. Preference for offer acceptance will be toward longer-term > contracts (greater than 5 years) and offers, which exceed 100% of our rack > rate. The offer sheets are provided in Microsoft Excel and are set up to > calculate the percentage of rack rate for your convenience. It is the > intent of Wild Goose Storage Inc. to negotiate and conclude contracts with > the participants providing acceptable offers in this open season as close > as possible to June 20, 2001. Wild Goose will announce to all contracted > participants whether it will proceed with the expansion in early August > 2001. Wild Goose Storage Inc. reserves the right to not necessarily accept > the highest priced offer nor to award all or any of the storage capacity > available. > > A reasonable summary of the main terms and features of BLS service is > attached for your convenience (Attached File - BLS Summary), but should > not be used as the sole terms by which service is to be provided. All > service is subject to the Tariff Schedules for Natural Gas Storage Service > of Wild Goose Storage Inc., as approved by the Public Utilities Commission > of the State of California. > > For more information about Wild Goose Storage Inc. or to download a copy > of the entire tariff please refer to our web site at > www.wildgoose-storage.com. > > Customer offers must include the following: > > A) Completed Offer Forms (Attached File - Offer Sheets) for each period of > service including: > > * the amount of Inventory Capacity Required for each April to March > period during the term > * the amount of Maximum Daily Injection Quantity Required by month > during the term > * the amount of Maximum Daily Withdrawal Quantity Required by month > during the term > * the Total Storage Demand Charge for each April to March period > during the term > * the Injection Commodity Rate for each April to March period during > the term > * the Withdrawal Commodity Rate for each April to March period during > the term > * a signature from an authorized employee of the company verifying the > offer > > In the 'Offer Sheets' file attachment you will find the following tabs at > the bottom: > > * an offer sheet in Excel format > * a manual offer sheet which can be printed out and filled in by hand > * an example offer > > B) An executed Storage Services Agreement (Attached File - Storage > Services Agreement) unless your company already has one on file with Wild > Goose Storage Inc. > > Early Service Option > > Once Wild Goose Storage Inc. gives notice in early August 2001 to proceed > with the expansion, every effort will be made to complete construction as > early as possible. Notice will be given by November 1, 2002 if service > will be available earlier than April 1, 2004. All contracted participants > will have the right, but not the obligation, to amend their contracts to > the earlier term start date and add this additional service to their > existing contracts at the same fees negotiated for the first year of > service commencing April 1, 2004. > > Rack Rates > Our rates are 'market based' meaning they are fully negotiable, but our > 'rack rates' are as follows: > Monthly Storage Demand Charges > * Inventory($/Dth) $0.03 > * Injection ($/Dth/day) $3.00 > * Withdrawal ($/Dth/day) $2.00 > > Variable Charges > * Injection Commodity Rate ($/Dth) $0.02 > * Withdrawal Commodity Rate ($/Dth) $0.02 > > Fuel Charges > > In addition to the Demand and Variable charges described above, fuel costs > are also charged based on actual consumption by customer and the value of > the gas on a daily basis. Fuel consumption is expected to be between 1.25 > to 1.75%. For details, please refer to the Wild Goose tariff. > > If you have any questions about this matter or need hard copies, please > contact either Ben Ledene with Wild Goose in Calgary at (403) 266-8192 or > Chris Price and Mark Baldwin with Interstate Gas Services in California at > (925) 243-0350. > <<BLS Summary.doc>> <<Expansion Offer Sheet.xls>> <<Storage Services > Agreement.doc>> <<Wild Goose Expansion Open Season.doc>> - BLS Summary.doc - Expansion Offer Sheet.xls - Storage Services Agreement.doc - Wild Goose Expansion Open Season.doc

One addition to today's agenda. If anyone wants a copy of the draft legislation, please call my assistant Marcia Linton at 3x3226. Jim ----- Forwarded by James D Steffes/NA/Enron on 01/26/2001 06:52 AM ----- Sandra McCubbin 01/25/2001 09:11 PM To: James D Steffes/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Vicki Sharp/HOU/EES@EES, [email protected], [email protected], [email protected], [email protected], Sandra McCubbin/NA/Enron@Enron, [email protected], Don Black/HOU/EES@EES, Harry Kingerski/NA/Enron@Enron, Gordon Savage/HOU/EES@EES, Wanda Curry/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Richard Shapiro/NA/Enron@Enron, Steven J Kean/NA/Enron@Enron cc: Subject: Status report on Legislative Activity Thursday, Jan 25 Assembly Committee held a hearing on ABX1-18 Hertzberg, the speaker's vehicle for allowing DWR to purchase power for the state and to use revenue bonds to payoff utility undercollections and to finance ongoing DWR operating costs. We have forwarded by fax the latest version of this bill. The Assembly Committee was only able to discuss three sections of the bill before adjourning until 1 pm tomorrow. Chairman Wright expects to take the remainder of the afternoon tomorrow to go through the bill line by line and expects to only get part way. He anticipates no hearings over the weekend and more hearings to follow Monday through Wednesday next week. Thus no vote on the bill is expected for a while. In addition, all parties, including Wright expect amendments as a result of ongoing negotiations between the Governor, Speaker, the utilities and the generators. These would center on the price the generators will bid and how much if anything the utilities will have to absorb of past undercollections. There is no indication at the present of when they will show or what those amendments will say. Initial analysis of the bill raises the following issues: Most important issue On pages 3 - 8 of the bill, new provisions are added to AB 1890 (Section 368 et al) to define how the TRA and TCBA are to be calculated and what the Commission must allow in rates. These provisions appear unduly generous to the utilities and may well provoke an immediate end to the rate freeze if enacted. Here are the main elements of the language. 368.2 The Legislature finds that it is appropriate to allow the utility to recover the reasonable costs incurred to purchase wholesale energy. (that means the big under collection from summer 2000 to date) 368.3 New definitions of the "adjusted TCBA" and "net undercollected amounts" are provided which appear to provide for the following way of wrapping up transition cost ratemaking. 1. The TCBA is the positive balance as of 12-31-00 increased by the trust transfer amounts to be recovered in rates for 2001, also increased by amounts included in retail rates for prior period costs (if any are authorized by the CPUC), and also increased by the balances in the generation memo accounts as of 12-31-00. 2. The new "net uncollected amount" that the utilities could collect in rates would be the current TRA account, as reduced by the above defined balance in the TCBA as of 12-31-00. NOTE: Edison claims this is the same mechanism that Enron proposed to the Commission as an alternate to the TURN proposal. It has similarities to the comments we filed Nov. 9, but our official position is still to support the from-the-begining netting of the two accounts as proposed by TURN. 3. There is also language to lock in the CPUCs current ratemaking for these accounts so that the TURN proposal to net the TRA and TCBA cannot be implemented. 4. The utilities'retained generation will be put in rate base at book value, except for the nukes, which will have their rate base calculated WITHOUT the application of overcollections in the transition cost balancing account to accelerate depreciation. 5. The CPUC is supposed to establish a dedicated rate component within the existing rates as of 1-8-01 to allow recovery of the net undercollection (the large TRA undercollection as reduced per the above). The undercollection is to be amortized over 10 years. 6. The utilities will not have to buy power if their credit rating drops below BBB+. The remainder of the bill has to do with the mechanism for the DWR to purchase power and to have revenue reduction bonds pay for costs in excess of those recovered in the utilities rates. Rod Wright is seeking a "stop loss"provision which will force a rate increase once the DWR has used up all its appropriation and all the bond revenues to buy power. This is controversial with the other members. We have been asked for a reaction by the committee members and would like a response ASAP, certainly by mid-day Friday. This will require balancing the concerns about and early end to the rate freeze with the increased likelihood of payment for power transactions once DWR is funded. The prospect of successful participation in more auctions is unclear unless more practical auction terms are used. However, the auction process is not spelled out in this bill. The generators are supporting an early end to the freeze so that they can be paid...I am in meetings starting early in the am so I will not be on the 10:30 call, please send comments to scott govenor..either by e mail or by fax, his fax is 9164480816. I am also interested in how we should "message" this.

FYI, the article is not really accurate in that TVA is currently constructing a total of 600MWs of peakers which will be on-line by summer '00. These peakers consist of 300MW expansions at each of their Johnsonville and Gallatin plants. Regards, Ben Jacoby From: Christi L Nicolay 01/13/2000 08:57 AM To: Joe Hartsoe/Corp/Enron@Enron, Cynthia Sandherr/Corp/Enron@Enron, James B Fallon/HOU/ECT@ECT, Steven J Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EES, Sarah Novosel/Corp/Enron@Enron, Elizabeth Sager/HOU/ECT@ECT, David W Delainey/HOU/ECT@ECT, Mike J Miller/HOU/ECT@ECT, Ben F Jacoby/HOU/ECT@ECT, Barbara A Hueter/DUB/EES@EES, Joe Hillings/Corp/Enron@ENRON, Jeffrey Keeler/Corp/Enron@Enron, Greg Whalley/HOU/ECT@ECT, Cliff Baxter/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT, Kevin P Hannon/HOU/ECT@ECT, Kathleen E Magruder/HOU/EES@EES, Kathleen Wagner/HOU/EES@EES, Kevin M Presto/HOU/ECT@ECT, Lloyd Will/HOU/ECT@ECT, Rogers Herndon/HOU/ECT@ect, Richard Ingersoll/HOU/ECT@ECT, Charles Yeung/HOU/ECT@ECT, Janine Migden/DUB/EES@EES, Dave Mangskau/Corp/Enron@Enron, Thomas S Reichelderfer/DUB/EES@EES cc: Subject: Tennessee Valley Authority Plans New Natural-Gas Fired Plant FYI ---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 01/13/2000 08:55 AM --------------------------- "Tracey Bradley" <[email protected]> on 01/13/2000 08:15:04 AM To: "Jeffrey Watkiss" <[email protected]>, Christi L Nicolay/HOU/ECT@ECT, [email protected], Sarah Novosel/Corp/Enron@ENRON cc: Subject: Tennessee Valley Authority Plans New Natural-Gas Fired Plant I've highlighted the portion of the article that discusses Enron. ******************************************** Tennessee Valley Authority Plans New Natural-Gas Fired Plant Dave Flessner , Chattanooga Times/Free Press ( January 13, 2000 ) Jan. 13--The Tennessee Valley Authority is preparing to locate its first new power plant in a generation. But unlike the massive and controversial nuclear plants TVA proposed in the 1960s, the newest power generating facility will be much smaller and less controversial than any plant TVA has erected in the past half century. TVA is proposing to build a natural gas-fired plant on farmland in Haywood County, Tenn., about 40 miles north of Memphis. TVA has optioned to buy any of three different farms near Brownsville, Tenn., to locate a plant capable of generating between 1,000 megawatts and 1,700 megawatts of electricity. The preferred plant size would be a Westinghouse unit costing TVA over $200 million and capable of generating 1,400 megawatts of power -- slightly more than what each reactor at the Sequoyah Nuclear Plant produces at full power. But the new plant will generate power less than 30 percent of the year when TVA's power demand is at its peak. "We need additional peaking power in the western portion of our service territory and these sites are well located near natural gas pipelines and one of TVA's 500-kilovolt transmission lines," said Roy V. Carter, project leader for the proposed new plant. Mr. Carter said the natural gas-powered plant won't have the pollution problems of either coal or nuclear plants. The new plant would be the first that TVA has ever built not on a river or lake. But the underground water supplies should be adequate since the plant will typically operate only a few hours a day, even during the summer and winter peak demand periods. Environmentalists who have fought TVA's nuclear and coal plants in the past are welcoming the switch to natural gas. "We support TVA getting a larger share of generation from natural gas because it is a much cleaner source of fuel," said Dr. Steve Smith, executive director of the Tennessee Valley Energy Reform Coalition, a consumer and environmental advocacy group. "We would hope that TVA will try to use these type of plants to replace some of the dirtier coal plants, which are major sources of air pollution in the Valley. These shouldn't just be used to generate more and more power for TVA to sell without any type of demand management strategy to also encourage consumers to use less electricity." But TVA officials insist the extra power is needed just to keep pace with rising power consumption in TVA's 7-state service territory. Electricity consumption in the Valley -- already one of the highest regions in the country -- is growing twice as fast as the national average. TVA has signed option purchase agreements to buy power from other producers. Enron has even built three natural gas-fired plants on the western edge of the TVA territory. The energy company built a 475-megawatt peaking plant in Brownsville, Tenn., last year near where TVA wants to build its newest plant. Last year, Enron also began operations on a 475-megawatt plant in Caledonia, Miss., and a 390-megawatt plant in New Albany, Miss. "We will continue to buy power, when needed, from other sources," TVA spokesman John Moulton said. "But we've found that in the crunch times in the summer it is good to have your own power source." A hearing on TVA's new plant is scheduled in Brownsville at 5:30 p.m. tonight. But because the new plant is located in a rural area and will generate only between 12 and 30 permanent jobs, it has not attracted much public comment yet, Mr. Carter said. The environmental review is expected to be completed this summer and the plant should be in operation by June 2001. ----- To see more of the Chattanooga Times/Free Press, or to subscribe to the newspaper, go to http://www.chattimes.com (c) 2000, Chattanooga Times/Free Press, Tenn.

While I appreciate the virtue of flying below the radar if possible, the matter here is complicated by the fact that FERC's discovery rules (18 CFR, Subpart D) pertain only to "proceedings set for hearing . . . and to such proceedings as the Commission may order." 18 CFR 385.401. In this case, FERC stated that "a trial-type hearing is not necessary . . . ." and specifically rejected the use of a "trial-type evidentiary hearing." Slip op. at 47-48 & n.97. Thus, while I have not researched the matter as yet, my preliminary view is that the CPUC's attempt to invoke FERC's discovery processes would appear to be outside the contemplation of FERC's Nov. 1 order and its regulations, unless FERC specifically orders discovery in this case. (The CPUC seems to recognize the relevance of this consideration when it specifically attempts to equate "paper" hearings with "trial-type" hearings; see page 1 of its Motion.) The CPUC's motion may prompt FERC to decide whether or not to allow discovery in this case under Rule 401. While the CPUC's motion does not apply directly to marketers, FERC's ruling will be precedent in the event the CPUC or someone else hereafter serves discovery on other parties. As a result, we need to consider whether laying in the weeds risks losing an opportunity to present our views on whether FERC should allow discovery in a paper hearing with an expedited decisional track, particularly in light of the fact that Staff has already conducted. >>> Jeffrey Watkiss 11/08/00 10:31AM >>> Does anyone have an idea as to why marketers, including EPMI, are not included in the list of subject companies: Exh. B? Since EPMI is not a subject of the motion, why should it answer? Lying in the weeds may be a more prudent course of action. >>> "Fergus, Gary S." <[email protected]> 11/07/00 10:08PM >>> I just spoke with Mary to make sure we have the same information. Here are the facts we have so far. On November 4th, the CPUC filed a motion with FERC to adopt the form of protective order that the CPUC entered, to compel the production of documents and to shorten time to answer. According to Exhibit B (read to me by Nancy Pickover at Bracewell) the following CPUC moved against the following entities: AES, Williams, Duke, Dynegy, Reliant and Southern. Enron entities were NOT named in exhibit B. This is not to say that we could not be easily added to the group. While the motion reads as if the CPUC was moving against everybody, in fact, in footnote 2 they state they are only moving against the entities named in Exhibit B. We will have Exhibit B in hand first thing tomorrow via FEDEX to confirm this. To repeat, Enron is not named yet. Thanks Gary -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Tuesday, November 07, 2000 6:23 PM To: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected] Cc: [email protected]; [email protected] Subject: Important - CPUC Motion - Confidential Attorney Client Privilege and Work Product As you may already know, the CPUC filed a motion at FERC asking for a protective order and to compel production of the information they subpoened from us in the CPUC's OII case. Given the timing, we should discuss this on our conference call scheduled for tomorrow. They request that we be required: to answer their motion on Thursday, to provide the information within 5 working days of a FERC ordering production, and to provide of P&L information and spread sheets detailing our deals, specifically delivery point, delivery date, counterparty, volume and price. We may not have a problem providing this information for use by FERC in its proceeding subject to a confidentiality agreement but I think we would oppose their requests for: the information to be provided for "government eyes only" - this would prohibit EPMI from defending itself vis-a-vis other market participants. a FERC confidentiality order that would could allow FERC to "share" this information with the CPUC (for purposes of the PUC's OII proceeding) pursuant to 16 U.S.C. 824h(c). 16 USC 824g(c) requires the Commission to make information available to state commissions as may be of assistance in state regulation of public utilities. We should argue that 16 USC 824h(c) does not apply here given that we are not a public utility nor does the PUC regulate how much market power wholesale marketers exercise or the level of market power mitigation (these are the bases the PUC provides for explaining why it should have this information.) the above contractual information to allow them to analyze the competitiveness of the forward market to evaluate the wisdom of the Commission's decision to allow the UDC's "unfettered access" to the forwards market. This argument is unpersuasive given that the CPUC can get information about the competitiveness of the forward markets from the Wall Street Journal's listing of NYMEX prices. ======================================================= This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message. To reply to our email administrator directly, send an email to [email protected] BROBECK PHLEGER & HARRISON LLP http://www.brobeck.com

October 1, 2001 Duke Energy Field Services have scheduled a planned outage of the Wilcox Plant on Tuesday, October 30, 2001. All meter stations upstream of the plant must be shut in during the afternoon of October 29, and will be allowed to come back on the morning of October 31st. The affected meters for this outage are listed below: MEAS MEAS STATN STATN NBR NM ----- ----------------------------------------------------------------- - 70612 HUNTER PETROLEUM - FAIN-BECK UNIT #1 BEEVILLE, TX 70621 PRIDE ENERGY CO. - GEO. WEST EST. #1, LIVE OAK CO., TX 70633 B&T OIL CO., YOWARD C.P. - BEE CO., TX 70645 MAGNUM - S. COTTONWOOD CR. DEWITT CO., TX 70655 KP EXPLORATION - SOUTHWEST GOHLKE CP - VICTORIA, TX (REC) 70664 TEXACO - BARRE C.P. DEWITT CO., TX (RECEIPT) 70671 DUER WAGNER & CO. - BRANDT C.P.- GOLIAD CO., TX (RECEIPT) 70675 MOSBACHER-MORGAN #1, LIVE OAK CO. TX 70688 P. M. QUIGLEY SPARKMAN #2 70689 WOFFORD #1 CHILDREN'S HOME - BEE CO.,TX 70691 INCA OIL & GAS CO..-#1 WILKINSON,GOLIAD CO., TX 70739 TETCO - HAGIST RANCH C.P. - DUVAL CO., TX 70743 MORRIS CANNAN - EAST MAXINE UNIT #1 70776 W.S. CHESTNUT, #1 BAKER 70788 CABOT OIL & GAS - DIVISION - HOSTETTER CP., TX 70802 MARWELL PETROLEUM - THIEME HEIRS#1,DEWITT CO.,TX 70912 BRITANCO, LLC WILCOX - TULETA CP, BEE CO., TX 70913 TETCO - STRAUSS T. - C.P. 70914 TETCO - I.C.B.C.B. & G. #1 - T 70917 MORRIS CANNAN - #1C STAUSS, TX 70957 TETCO - NORMANNA CP, BEE CO., TX 71265 TETCO - ENGLE KING #1 - BEE CO., TX 71290 BRITANCO, LLC - LOMA ALTA HAGIST CP, DUVAL CO., TX 71607 VICTORIA OPERATING - ANNA BARRE FIELD, DEWITT CO., TX (REC) 71657 BRITANCO, LLC - LINHOLM, LIVE OAK, TX 71746 DANEX (ATWOOD EXPLORATION CO. - KLIMITCHEK, LAVACA CO., TX 71773 WAYNE A. JANSSEN - JUNKER, DEWITT CO., TX 71817 JN EXPLORATION & PROD.- BORCHERS FIELD-LAVACA CO., TX 71862 BRITANCO, LLC - #1D GOREE, BEE CO., TX 71895 GOHLKE PIPELINE SYSTEM - DEWITT, TX (RECEIPT) 71917 MARWELL PETROLEUM, MICHAEL-#1 BORCHESS,LAVACA CO., TX 71929 DOUGLAS PET.- #1 BUCHANAN, MCMULLEN, TX 72015 WARRIOR MANAGEMENT - #1 COUNTRYMAN, MCMULLEN, TX 72056 NATURAL EXPLORATION, INC.- #1 HARTMAN, DEWITT, TX 72103 PETRO CORP. - #1 YOUNG, BEE CO., TX 72159 SOUTHWEST OPERATING - #2 RUSCHUPT, DEWITT CO., TX 72175 PENNZOIL - #91 RAY, GOLIAD CO., TX 72184 PETRO CORP. - #1 PAGE, BEE CO., TX 72249 TRI-UNION DEV. CORP.-#1 WRIGHT / GOLIAD COUNTY, TX (REC) 72272 WOFFORD - #1 BEAN, BEE CO., TX 72309 TRI-UNION #1 HESTER, GOLIAD CO.,TX 72457 GMT GAS MARKETING - #1 VAL HOLTZ, DEWITT CO., TX 72540 COASTLINE EXPLORATION, INC. -#1 GOEHRING / GOLIAD COUNTY, TX 72621 WILLIAMS FIELD SERVICES - DUVAL CO., TX 72626 WING CORP - C.P., DEWITT COUNTY, TX 72654 SIMRAY OIL & GAS - BONNE TERRE FIELD, MCMULLEN CO. 72707 COASTLINE EXPLORATION, INC. - GOLIAD CO., TX 72723 CROSSTEX ENERGY -#1 TIPTON / GOLIAD CO., TX 72747 KAISER FRANCIS - #1 BRANDT, GOLIAD CO., TX 72774 SOUTHWEST LAND & MINERALS - SINCLAIR HUNT #1, BEE 72775 ACOCK ENGR-#1 HOLZMARK, BEE CO., TX 72800 DEK. ENERGY -NEWTON-WELDER GOLIAD TX 72810 LYTLE CREEK - #1 DRAPELLA, DEWITT CO, TX 72861 SHOREHAM OIL & GAS, ROBERTS #1 - BEE CO., TX 72884 PFSI - STRIDEE #1 , LIVE OAK CO. TX. 72886 ASSOC. NATURAL GAS INC. - SPEAKS - LAVACA COUNTY, TX 72887 LUNDBERG OPERATING CO. - VICTORIA CO., TX 72922 MIDSTATES CORPORATION - DEWITT CO., TX 72943 DEFS - LOLA FUHREKEN#1 - DEWITT CO. TX 72950 APTIAN GAS CORP., K.W. SCHREINER #1 - LIVE OAK CO., TX 72951 APTIAN GAS CORP., SCHREINER RANCH - LIVE OAK CO., TX 72963 AUBURN ENTERPRISES - KERLICK #1, DEWITT, TX 73031 MESA CHICA CORPORATION - FOSTER GAS UNIT #1, BEE C 73033 PRIME OPERATING CO.- RALLS UNIT #1 / DEWITT CO., TX 73089 UNITED OIL & MINERALS - LAVACA COUNTY, TX 73091 ELLIOTT OIL & GAS CO. - KESLINGER #1 / GOLIAD CO., TX 73124 AURORA NATURAL GAS - HOSKINS #1, LIVE OAK CO., TX 73130 TALON DEVELOPMENT CO. - GOLIAD CO. TX 73138 DOMINION PIPELINE COMPANY - SMOTHERS #1 / LAVACA CO., TX 73139 DEFS - #1 DIEBEL, GOLIAD CO., TX 73144 PETROPRO ENERGY - SCHULTHEISS #1 - DEWITT CO., TX 73146 DALE OPERATING COMPANY - LAVACA CO., TX 73164 DEFS TRUNKLINE INTERCONNECT - GOLIAD CO., TX 73165 SANCHEZ O'BRIEN-BODDEN FROST, LIVE OAK CO., TX 73176 DEFS (LN# 21-F GATHERING) - LAVACA CO., TX 73178 DEFS (COASTAL GATHERING) - LAVACA CO., TX 73189 WEST TULETA OPERATING CORP. - BEE COUNTY, TX 73190 DEFS (LINE #21-E) - LAVACA CO., TX 73199 DEFS (COLUMBUS ENERGY) - BEE CO., TX 73214 DEFS - PETTUS, BEE CO., TX 73215 MAVERICK ENERGY - COUSINS #1, MCMULLEN CO., TX. 73224 DEFS / DELILAH #1 73232 DEFS - GOLIAD COUNTY, TX 73234 DEFS (BANDERA EXPL) - BEE CO, TX 73237 WELDER-HEYER ENERGY - PETTUS #1, GOLIAD CO. TX. 73242 COASTAL OIL & GAS - PAWLIK #1, LIVE OAK CO., TX 73244 RAGERS OIL & GAS - DEWITT COUNTY, TX 73245 MODERN EXPLORATION - CASA #1, LIVE OAK CO., TX 73271 PHILLIPS PETROLEUM- HARTSMAN #1 / DEWITT CO., TX 73276 HURD ENTERPRISES - LUKER #2, GOLIAD CO., TX (REC) 73278 U.S. ENERCORP, LLC/NEWTON-WELDER #1 -- GOLIAD CO., TX (REC) 73308 AURORA RESOURCES - ARTHUR RICHTER #1 73313 DEFS-GEODOMINION - BONORDEN #1 - LAVACA CO., TX Should you have any questions, please contact Steve Jenkins at 713-627- 5076. ******************************************************************* NOTE: Duke Energy Gas Transmission respects your online time and privacy. You have received this email because you elected to subscribe. To unsubscribe, login to the E-mail Notification Subscription page at http://www.link.duke-energy.com/script2/Notification.asp uncheck the appropriate checkbox, and click the Submit button.

<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"><center> <table width="540" border="1" cellspacing="0" cellpadding="3" bordercolor="#999999"> <tr bgcolor="#0099FF"> <td bgcolor="#FFFFFF" height="48"> <div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">If you do not wish to receive email from Bargain Bazaar, please Click Here:<br> <a href="http://www.m-ul.com/e/unsub.cgi?l=9994&m=1736394363&j=20020202_19">UNSUBSCRIBE</a> </font></div> </td> </tr> </table> <br> <table width="540" border="1" cellspacing="0" cellpadding="0" bordercolor="#666600"> <tr> <td> <table width="100%" border="1" cellspacing="0" cellpadding="0" bordercolor="#CCFFFF"> <tr> <td> <table width="100%" border="0" cellspacing="0" cellpadding="5"> <tr align="center"> <td><img src="http://www.m-ul.com/email/images/accessories/travelagent-header.jpg" width="525" height="80"></td> </tr> <tr align="center"> <td> <table cellspacing="0" cellpadding="0" border="0" align="center" width="601"> <tr> <td width="18" height="159" valign="top"></td> <td width="607" height="159" valign="top"><a href="http://www.m-ul.com/e/c.cgi?j=20020202_19&e=1736394363&r=u424&d=6&p=1"><img src="http://www.m-ul.com/email/images/html102401/header1.gif" width="235" height="149" border="0"><img src="http://www.m-ul.com/email/images/html102401/header2.gif" width="147" height="149" border="0"><img src="http://www.m-ul.com/email/images/html102401/header3.gif" width="223" height="149" border="0"></a></td> <td width="4" height="159" valign="top"></td> </tr> <tr> <td height="2" colspan="3" valign="top"> <p align="center"><font size="2" face="Times New Roman, Times, serif"><b><font color="#663399" face="Arial, Helvetica, sans-serif" size="5">HERE'S THE DEAL!</font></b></font></p> <p align="center"><font size="2" face="Times New Roman, Times, serif"><font face="Arial, Helvetica, sans-serif" size="3"> We've just <b>DOUBLED</b> the value of the Web's hottest <b>FREE OFFER</b>. 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----- Forwarded by Jeff Dasovich/NA/Enron on 03/02/2001 07:10 PM ----- "Katie Kaplan" <[email protected]> 03/02/2001 07:08 PM To: "'Andy Brown (E-mail)'" <[email protected]>, "'B Brown Andy (E-mail)'" <[email protected]>, "'Baker Carolyn (E-mail)'" <[email protected]>, "'Bob Escalante (E-mail)'" <[email protected]>, "'Bob Weisenmiller (E-mail)'" <[email protected]>, "'Curtis Kebler (E-mail)'" <[email protected]>, "'Douglas Kerner (E-mail)'" <[email protected]>, "'Greg Blue (E-mail)'" <[email protected]>, "'Jan Smutny-Jones (E-mail)'" <[email protected]>, "'Jean Munoz (E-mail)'" <[email protected]>, "'Jeff Dasovich (E-mail)'" <[email protected]>, "'Joe Ronan (E-mail)'" <[email protected]>, "'John Larrea (E-mail)'" <[email protected]>, "'John Stout (E-mail)'" <[email protected]>, "'Julee Malinowski-Ball (E-mail)'" <[email protected]>, "'Kassandra Gough (E-mail)'" <[email protected]>, "'Katie Kaplan (E-mail)'" <[email protected]>, "'kent Palmerton (E-mail)'" <[email protected]>, "'Kristin Vellandi (E-mail)'" <[email protected]>, "'Lynn Lednicky (E-mail)'" <[email protected]>, "'Marty Wilson (E-mail)'" <[email protected]>, "'McNally Ray (E-mail)'" <[email protected]>, "''Nam Nguyen' (E-mail)'" <[email protected]>, "'Norton Kelli (E-mail)'" <[email protected]>, "'Paula Hall-Collins (E-mail)'" <[email protected]>, "'Pigott Jack (E-mail)'" <[email protected]>, "'Richard Hyde (E-mail)'" <[email protected]>, "'Rob Lamkin (E-mail)'" <[email protected]>, "'Roger Pelote (E-mail)'" <[email protected]>, "'Stephanie-Newell (E-mail)'" <[email protected]>, "'Sue Mara (E-mail)'" <[email protected]>, "'Theo Pahos (E-mail)'" <[email protected]>, "'Tom Ross (E-mail)'" <[email protected]> cc: "Carol H Hudson (E-mail)" <[email protected]>, "Katie Kaplan (E-mail)" <[email protected]>, "Jan Smutny-Jones (E-mail)" <[email protected]>, "Steven Kelly (E-mail)" <[email protected]>, <[email protected]>, "'Alex Sugaoka (E-mail)'" <[email protected]>, "'Bill Carlson (E-mail)'" <[email protected]>, "'Bill Woods (E-mail)'" <[email protected]>, "'Bob Ellery (E-mail)'" <[email protected]>, "'Bob Gates (E-mail)'" <[email protected]>, "'Cody Carter (E-mail)'" <[email protected]>, "'Curt Hatton (E-mail)'" <[email protected]>, "'David Parquet'" <[email protected]>, "'Dean Gosselin (E-mail)'" <[email protected]>, "'Doug Fernley (E-mail)'" <[email protected]>, "'Duane Nelsen (E-mail)'" <[email protected]>, "'Ed Tomeo (E-mail)'" <[email protected]>, "'Eileen Koch (E-mail)'" <[email protected]>, "'Eric Eisenman (E-mail)'" <[email protected]>, "'Frank DeRosa (E-mail)'" <[email protected]>, "Frazier Blaylock (E-mail)" <[email protected]>, "'Hap Boyd (E-mail)'" <[email protected]>, "'Hawks Jack (E-mail)'" <[email protected]>, "'Jim Willey (E-mail)'" <[email protected]>, "'Joe Greco (E-mail)'" <[email protected]>, "'Jonathan Weisgall (E-mail)'" <[email protected]>, "'Kate Castillo (E-mail)'" <[email protected]>, "'Kelly Lloyd (E-mail)'" <[email protected]>, "'Ken Hoffman (E-mail)'" <[email protected]>, "'Kent Fickett (E-mail)'" <[email protected]>, "'Lynn Lednicky (E-mail)'" <[email protected]>, "'Marty McFadden (E-mail)'" <[email protected]>, "'Paula Soos'" <[email protected]>, "'Randy Hickok (E-mail)'" <[email protected]>, "Rick S. Koebbe (E-mail)" <[email protected]>, "'Ross Ain (E-mail)'" <[email protected]>, "'Steve Iliff'" <[email protected]>, "'Steve Ponder (E-mail)'" <[email protected]>, "'Tony Wetzel (E-mail)'" <[email protected]>, "'William Hall (E-mail)'" <[email protected]> Subject: Public Affairs Committee Greetings: As many of you know, the IEP Board met last week and decided upon a new committee structure within IEP. The Public Affairs Committee was created to replace the Market Response Committee with Greg Blue appointed as the interim chairperson. We would like to move to establish this new committee as soon as possible and meet to discuss direction, specific upcoming issues, an overall plan, budget and structure for the year. We would like to start this process with a conference call on Monday March 5, 2001 at 3:00 p.m. Please see call in information below. (It is not necessary for any consultants to participate in the Monday call.) This conference call will be followed by an in-person meeting here at IEP on Thursday March 8, 2001 at 2:00 p.m. If you are interested in participating on this committee please signify that with an e-mail response to this message. For those planning on participating on the conference call we will send out the agenda on Monday. During that conference call we will also set the agenda for the Thursday in person meeting. During the Thursday meeting we would also like to move to select a permanent chairperson. Thank you for your attention to this important matter and I look forward to continuing to work with each of you and make this new committee structure a success. I have set up a permanent Conference Call in number and Pass-code for the Public Affairs Committee that we will use every time we have a conference call. We will begin using this call-in number on Monday. The call in number for Monday's 3:00 p.m. call is is: 1-800-486-2460 The Pass-code is: 120895 Thanks, Katie Kaplan Manager of State Policy Affairs Independent Energy Producers Association (916) 448-9499

Industry Group Analysis This Week: Leisure Films Sector Heats Up With Summer 1. Introduction 2. Groups That Are Heating Up 3. Groups That Are Cooling Off 4. On The Radar Screen This Week 5. Disclaimer ***********************Our Sponsor************************* Al Frank's 31 Favorite Stocks +31.6% YTD! 10 New Buys Value investing legend Al Frank is profiting handsomely in 2001. Grandslams include VISX +91.9%, SEM +90.4%, and many more! He just revealed his 10 top favorites to buy today, all undervalued by 50+% and ready to roar! Get your FREE trial: http://www.investools.com/c/go/PRUD/WSCE-prudTK6?s=S601 ********************************************************** 1. Introduction This summer's blockbuster movie season has really warmed things up in the Leisure/film/distributing {.FDI} group on the Big Chart. In just one week, this group has surged from a 0 percentile rank to a near-sizzling 79th percentile rank. This is especially remarkable, as prior to its most recent showing, a 19th percentile ranking was the highest it had mustered, dating back to April 30th. Other groups within the Leisure/films sector have also done well as a result, with the Leisure/film/entertainment {.FIL} group rising to an 80th percentile rank, from a 63rd percentile rank just three weeks ago. Of course this sector continues to derive its success from the Leisure/film/theaters {.FTH} group, which has never charted a percentile rank lower than 98th in past 11 weeks! Industry Group Analysis is just another of the many great reasons to be a subscriber to the Wall Street City website. Besides great industry group analysis and incredible stock analysis, you also get access to the world's most powerful stock screening tool on the planet, ProSearch, all in one subcription package. However, we give you a 30-day FREE trial to this service to make sure it suits you, so give us a try. Click below to take a 30-day FREE trial. http://clyde.investools.com/T/A28.146.326.1.113719 ____________________________________________________________ 2. Groups That Are Heating Up The Retail/stores {.RET} group appears to headed for higher percentile territory, climbing from a 42nd percentile rank to a 74th percentile rank in only four weeks. Accordingly, the Retail/stores/apparel {.RAP} group has also warmed up, moving from a 42nd to 86th percentile rank over the same period. Textiles/producer {.TPR}, Publishing/graphic {.GRA}, and Home/jewelry/silverware {.JSW}, are also groups which have experienced a heating up. TPR has surged from a 42nd to a 71st percentile rank in only a month, while GRA has soared to a 81st ranking from the 7th percentile, within the same time frame. JSW has moved from a 43rd to a 68th percentile rank in the past four weeks. To view the Big Chart click the link below. http://clyde.investools.com/T/A28.146.326.2.113719 ____________________________________________________________ 3. Groups That Are Cooling Off The Food/serving/restaurants {.FRS} group has endured a severe chilling, falling from 93rd to 34th percentile rank in only a month, a direct effect of the cooling U.S. economy, as fewer consumers choose to dine out. In a largely seasonal move, the Textiles/apparel/manufacturer {.TAM} group plunged from a 99th percentile rank, to a staggering 4th percentile rank in only a week. To view the Big Chart click the link below. http://clyde.investools.com/T/A28.146.326.3.113719 ____________________________________________________________ 4. On The Radar Screen This Week The Energy/Oil-gas refiner {.ORF}, as well as, the Energy/Oil-gas retailer {.ORE} are two groups that continue to remain red hot on the big chart. With the summer driving season upon the nation, these groups are likely to extend their hot streak for, at minimum, the next three months, thus warrant close monitoring. To view the Big Chart click the link below. http://clyde.investools.com/T/A28.146.326.4.113719 ***********************Our Sponsor************************* His Picks Gain 58.8% in 1 Month - and They're Still Soaring! The next bull market is underway! Don Rowe just pocketed a whopping 58.8% in one month (since 4/10) with his latest picks. They are still rocketing -- and so is his newest buy (Q1 earnings +500%). Get them today with your FREE trial: http://www.investools.com/c/go/WALL/WSCE-wallTU6?s=S600 ********************************************************** 5. Disclaimer Wall Street City's Industry Group Analysis is published solely for informational purposes and is not a solicitation or an offer to buy or sell any stock, mutual fund or other security. The information obtained from internal and external sources is considered reliable, but has not been independently verified for accuracy and completeness. Wall Street City, its employees, and/or officers and directors, may from time to time have a position in the securities mentioned and may sell or buy such securities. Trading involves risk, including possible loss of principle and other losses. Trading results may vary. No representations are being made that these techniques will result in or guarantee profits in trading. Past performance is no indication of future results. REMOVE ME FROM THIS FREE EMAIL LIST To be removed from the email distribution list for the FREE WallStreetCity's Industry Group Analysis Commentary, Stock Search of the Week Commentary, The Week Ahead Commentary and Updates simply click the link below and hit "Send" on the email that is launched. 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As you all know, we don't think that anyone should get out of either their actual obligations, which would mean anyone leaving now, or their share of projected costs for future purchases by DWR. Lenny ----- Original Message ----- From: William Booth <[email protected]> To: <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; William Booth <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; John R. Redding (PS, NE) (E-mail) <[email protected]>; Mike Florio (E-mail) <[email protected]> Sent: Thursday, July 05, 2001 1:19 PM Subject: RE: Bond Leg Language, etc. > Jeff and all: I agree with your thoughts as to the need for amendments re > DA customers that have never purchased DWR power, call it amend. 1. I also > agree with your proposal re customers that leave bundled service for direct > access service only having to pay for the costs actually incurred by DWR on > their behalf, call it amend. 2. I think it is a stretch, however, to > propose an exemption for any customer that leaves bundled for DA by > September 1, call it amend. 3. This appears to be inconsistent with amend. > 2. I agree with you re amend. 4, deletion of language ending DA. Bill > > -----Original Message----- > From: [email protected] [mailto:[email protected]] > Sent: Thursday, July 05, 2001 2:07 PM > To: [email protected]; [email protected]; [email protected]; > [email protected]; [email protected]; [email protected]; > [email protected]; [email protected]; > [email protected]; [email protected]; [email protected]; > [email protected]; [email protected]; [email protected]; > [email protected]; [email protected]; [email protected]; John R. > Redding (PS, NE) (E-mail); Mike Florio (E-mail) > Subject: Bond Leg Language, etc. > > > Greetings: > > Hope everyone had a pleasant 4th. > > I've read the respective Burton and Hertzberg language on amending AB 1X. > The Burton language looks cleaner and simpler, though there may be reasons > to include some of the Hertzberg language, too. > > I'm proposing to the group the following as potential amendments to the > bond bill. I would appreciate your feedback. The amendments would be as > follows: > > Customers who were on Direct Access when DWR started buying power (Jan. > 17th?), and are still on Direct Access when the bill passes, should be > exempt from paying for the bonds. > > In short, customers should not be forced to pay for power twice--once from > their ESP, and once from DWR. Since these customers receive power services > from their ESP, they never consumed DWR power in the first place and it > wouldn't be fair to require them to pay for it. > > Customers who have been utility customers since DWR started buying power > but subsequently switched to Direct Access should only pay for power > provided by DWR that they actually consumed, no more and no less. > > For example, if a customer was a utility customer when DWR started buying > power but switched to Direct Access on May 1st, then the customer would > only be responsible for reimbursing DWR for power deliveries that took > place from Jan. 17th thru April 30th. > > I believe that we agreed on these concepts during the negotiations that > took place over the past 4-5 weeks. Or if we didn't explicitly agree > during the talks, they seem to be principles on which we ought to be able > to agree pretty easily now. And rather than leave the issue hanging, which > can create unnecessary and costly uncertainty for customers, I suggest that > we include very clear and simple legislative language in the bond bill > clarifying what customers' obligations are. Your thoughts are appreciated. > > In addition, we have talked quite a bit about providing customers with > incentives in the attempt to get California out of the energy hole that it > finds itself in. Providing (20KW and above) customers with an incentive to > switch to Direct Access as soon as possible could 1) reduce the net short > position that the state (and ultimately consumers) have to finance, thereby > reducing spot purchases and price volatility, 2) reduce electricity > purchasing costs, and 3) reduce the burden on the state budget. > > With this in mind, I'm also proposing that the group consider an amendment > to the bond bill that would exempt from bond charges any customer that > switches to Direct Access by September 1st. > > Finally, it seems odd that the language directing the PUC to suspend Direct > Access is still in the bill. If a dedicated rate component is created, > that seems to eliminate altogether the need to suspend Direct Access. And > if that's the case, would it make sense to delete that language from the > bill? > > Look forward to your comments and working with you to get support for and > passage of the "core/noncore" proposal. > > Best, > Jeff > This e-mail is intended solely for use of the individual to whom it is > addressed and may contain information that is privileged, confidential or > otherwise exempt from disclosure under applicable law. If the reader of > this e-mail is not the intended recipient or the employee or agent > responsible for delivering this message to the intended recipient, you are > hereby notified that any dissemination, distribution, or copying of this > communication is strictly prohibited. If you have received this > communication in error, please immediately notify us by replying to the > original sender of this note. Thank You.

David, aware of these regulations and hence that is why we have the established channels of approval - in this instance there is obviously need for more caution. However this has now been on the radar screen for some time and when we think issue resolved it is seemingly not - hence we need to address asap. cheers Jez -----Original Message----- From: Minns, David Sent: Tuesday, 13 November 2001 10:52 AM To: Peters, Jez; Suttle, John; Miyai, Tark; Mason, Heidi Cc: Skinner, Fiona; Bauer, Adam; Bradford, William S.; Nimmo, Matthew; Mcclellan, George; Staley, Stuart; Shankman, Jeffrey A.; Kitchen, Louise Subject: RE: Bengalla Biz Jez our concerns are not just an internal approval issue. Under Australian Law the Directors of ECAPPL need to be satisfied when a company incurs a debt that it can be paid. Failure to discharge this duty can mean the directors would be personally for the debt. If the Coal Group is comfortable to make to enter into these commitments then that is the obvious way forward. One of the Coal Group in the Sydney office (presumably Paul McPhee) could replace Heidi Mason as resident director. -----Original Message----- From: Peters, Jez Sent: Tuesday, 13 November 2001 9:33 AM To: Suttle, John; Miyai, Tark; Minns, David; Mason, Heidi Cc: Skinner, Fiona; Bauer, Adam; Bradford, William S.; Nimmo, Matthew; Mcclellan, George; Staley, Stuart; Shankman, Jeffrey A.; Kitchen, Louise Subject: RE: Bengalla Biz We seem to be going round in circle's here and hence hopefully all the relevant people are now on copy of this e-mail so we can resolve swiftly. This cargo is due to be shipped in seven days with the coal already being railed to port. It is coal which will be shipped to service European commitments and represents the cheapest way to do so taking all costs into account (including financing). Needless to say if we pull out of this deal at this stage it will have huge ramifications with our customer and send all the wrong signals to our counterparties in this part of the world. Last but not least we will need to look elsewhere to procure coal for these European sales at what is likely to be a higher price. Appreciate the green light. Thks Jez -----Original Message----- From: Suttle, John Sent: Tuesday, 13 November 2001 9:21 AM To: Miyai, Tark; Minns, David; Mason, Heidi Cc: Peters, Jez; Skinner, Fiona; Bauer, Adam; Bradford, William S.; Nimmo, Matthew Subject: RE: Bengalla Biz It has been made clear to me that Jeff Shankman needs to clear this transaction through Bill Bradford and Louise Kitchen prior to any capital going out the door. It is my understanding that this has not been done. John -----Original Message----- From: Miyai, Tark Sent: Monday, November 12, 2001 4:13 PM To: Minns, David; Mason, Heidi; Suttle, John Cc: Peters, Jez; Skinner, Fiona; Bauer, Adam Subject: FW: Bengalla Biz David, See below Jeff Shankman's ok to proceed as usual. Tax has come back with ok. Coal is being delivered to port. Bengalla has oked to our draft as well. Pls review and comment asap. Credit, any comment on Bengalla? Tark -----Original Message----- From: Staley, Stuart Sent: Tuesday, November 13, 2001 2:57 AM To: Peters, Jez; Miyai, Tark; Pielop, Stuart; Skinner, Fiona Subject: FW: Bengalla Biz FYR... -----Original Message----- From: Shankman, Jeffrey A. Sent: 12 November 2001 15:02 To: Mcclellan, George Cc: Price, Brent A.; Staley, Stuart Subject: RE: Bengalla I would proceed as business as usual. -----Original Message----- From: Mcclellan, George Sent: Monday, November 12, 2001 8:59 AM To: Shankman, Jeffrey A. Cc: Price, Brent A. Subject: FW: Bengalla Guys - we need to address this - can we discuss during our lunch meeting today. -----Original Message----- From: Staley, Stuart Sent: Monday, November 12, 2001 5:05 AM To: Mcclellan, George Cc: Bradley, Peter; Maley, Paul Subject: FW: Bengalla George: Details on the cargo we are loading out of Newcastle. Sailing time is roughly 45 days. Cargo to be sold to ARA/German customers, most with payment terms 5 days post delivery. Also - it would help to get an idea of how diificult this exercise will be in the coming months, as we have a couple more loading before year end. Work it, Stu -----Original Message----- From: Miyai, Tark Sent: 12 November 2001 02:12 To: Staley, Stuart; Bradley, Peter Cc: Peters, Jez Subject: Bengalla Stu, I refer to your e-mail to Jez last week and advise you the expected payment value and timing etc. Vessel name: MV "Cotsworld" ETA: 21/Nov ETS: 22/Nov Loading tonnage: approx. 128kmt (9kmt from Stratford and 119kmt from Bengalla) Payment value and timing : Value Timing Bengalla: US$3.3mil(*) 19th (**) Stratford: US$0.2mil(*) 26th * Inclusive of 10% GST ** Bengall has already delivered 49kmt of coal to port and will complete the delivery on 15th. The contract is based on FIS and the invoice weight and quality be determined by the inbound analysis while they take des/dem risk. Because of their concern over our credit Bengalla has insisted on our payment by TT against the presentation of documents. Docs are likely to be presented on 16th or 19th at the latest. The draft contract which Bengalla has confirmed has a provision that the invoice weight is determined based on B/L quantity instead of inbound rail weight if we take 100% of Bengalla coal onto our vessel. If we do that, they can not present their docs until the vessel has compeleted the loading and our payment date would be say 26th instead. Regards, Tark

One of the things that came out of the meeting I was at on Saturday with the UC economists (including Tyson and Yellen) was a "manifesto" that they published today (I'll have the final to distribute soon). They're having a press conference in about 10 minutes at Berkeley. In anticipation, they're quoted in a story in today's LA Times (that features Greenspan's comments) and they focus their quotes on the need to raise rates. Most of these folks in the group, lamentably, earn their living by consulting for incumbents, but there message here should be helpful, and there are a few "right-minded" economists in the bunch. (I managed to get Dr. Michaels in the group, who was a great voice of reason in the debate over what to say in the manifesto.) It wasn't appropriate for me to play a visible role in the design of the manifesto, though I attempted to offer some behind the scenes suggestions. Jeff ----- Forwarded by Jeff Dasovich/NA/Enron on 01/26/2001 12:41 PM ----- "James L. Sweeney" <[email protected]> 01/26/2001 11:52 AM To: Pablo Spiller <[email protected]>, [email protected], David Teece <[email protected]> cc: [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected] Subject: Re: FINAL VERSION It seems this is already getting press. Click on the following to see the Los Angeles Times story. Fortunately the LA Times did not focus on any of the issues we are debating here. http://www.latimes.com/business/reports/power/ Jim Sweeney At 04:19 AM 1/26/2001, Pablo Spiller wrote: >colleagues: > >we are less than 2 hrs short of the press conference. i just got to the >computer and saw all these e-mails. i will suggest we take our local nobel >prize winner's suggestion and go, for the time being, as is. we simply do >not have the time to incorporate changes without violating the need for >consensus. We will release the manifesto at 11am PST, at the press >conference that is going to take place here at haas. Those of you from the >east coast, feel free to release it at any time. Those in the west coast, >i would suggest that we do not release it until 11am, but feel free to talk >to whoever you want about it. > >The version of the manifesto that is going to be released is the version >that we sent yesterday afternoon incorporating the excellent comments by >paul. also is the version that includes the list of endorsees as of the time. > >if you haven't received the copy, please let me know. > >thanks. > >pablo > > > >At 11:54 AM 1/26/01 -0500, [email protected] wrote: > > > >1. Is the document out? Or are we still making changes? > > > >2. Is the "embargo" over? > > > >3. When can we get the final, final, final for further distribution? > > > >John > > > > > > > > > > > > > >David Teece <[email protected]> on 01/25/2001 05:54:00 PM > > > >To: [email protected], [email protected], > > [email protected], [email protected], [email protected], > > [email protected], [email protected], > > [email protected], [email protected], > > [email protected], [email protected], > > [email protected], [email protected], > > [email protected], [email protected], [email protected], > > [email protected], [email protected], > > [email protected], [email protected], > > [email protected], [email protected], > > [email protected], [email protected], [email protected], > > [email protected], [email protected], > > [email protected], [email protected] > >cc: [email protected] > > > >Subject: FINAL VERSION > > > > > >Dear Colleagues, > > > >Here is the FINAL version of the manifesto. This version includes some > >additions and deletions to bring on Paul Joskow and Janet Yellen, and > >hopefully Severin Borenstein as well. Also attached is a list of > >endorsements Pablo and I have secured. If you are not on the list and wish > >to be added, please let us know. > > > >Critically, let us know if you wish to be removed. We are picking up new > >endorse by the hour and will release by 9:00 am (PST) tomorrow. > > > > > >David Teece and Pablo Spiller > > > > > >(See attached file: Manifesto DJT 1-25-01.doc) > >(See attached file: endorsee list 12501.doc) > >====================================== > >David J. Teece, Director > >Institute of Management, Innovation and Organization > >F402 Haas School of Business #1930 > >University of California, Berkeley > >Berkeley, CA 94720-1930 > >Phone: (510) 642-1075 > >Fax: (510) 642-2826 > >http://haas.berkeley.edu/~imio > >====================================== > > > > > > > > James L. Sweeney, Stanford University Department of Management Science and Engineering Terman Engineering Center, Room 323 Stanford, CA 94305-4026 Voice: 650-723-2847; Fax: 650-723-1614; Home Voice or Fax: 650-322-9835

I did over-simplify the North America organization a bit. There is also Kim Theriot for NA Power and Cindy Horn or someone else under Kevin Sweeney for Global Products. I think because of the exposure and amount of interfacing involved here, I would prefer to have a Manager act as your contact. How about Connie Sutton ? David Forster 10/07/99 05:23 PM To: Mary Solmonson/HOU/ECT@ECT cc: Connie Sutton/HOU/ECT@ECT, Philippe Travis/LON/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Mark E Taylor/HOU/ECT@ECT, Bob Shults/HOU/ECT@ECT, Edmund Cooper/LON/ECT@ECT, Justin Boyd/LON/ECT@ECT, Ian Sloman/LON/ECT@ECT, Amita Gosalia/LON/ECT@ECT, Peggy E Hedstrom/CAL/ECT@ECT, Chris Wiebe/CAL/ECT@ECT Subject: Re: OnLine GTC's Mary, Thanks for the clarification. It would be preferable to coordinate with one designated member of GCD. Please let me know if the current arrangement (with the GTC's sent to Philippe) is OK. Dave Mary Solmonson 06/10/99 21:55 To: David Forster/LON/ECT@ECT cc: Connie Sutton/HOU/ECT@ECT, Philippe Travis/LON/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Mark E Taylor/HOU/ECT@ECT, Bob Shults/HOU/ECT@ECT, Edmund Cooper/LON/ECT@ECT, Justin Boyd/LON/ECT@ECT, Ian Sloman/LON/ECT@ECT, Amita Gosalia/LON/ECT@ECT, Peggy E Hedstrom/CAL/ECT@ECT, Chris Wiebe/CAL/ECT@ECT Subject: Re: OnLine GTC's It sounds like there may be some organizational confusion as to who to coordinate with in the Global Contracts area. Let me clarify for future communications. Enron North America Enron Canada Enron Europe Global Head Mary Solmonson Peggy Hedstrom Ian Sloman Contracts Manager Connie Sutton NA NA Contract Support Karen Lambert Chris Wiebe Philippe Travis We try to keep each other informed as to issues and current projects and coordinate our activities since we use the same systems and databases. However, we are distinct organizations working to support the Operations functions at our individual locations. Therefore, you will need to send the new GTCs to each designated individual for each location. If it would be easier for you to coordinate with only one Contracts support person and have us share information between us, we can do that - just let us know how you would like to proceed. We are all working hard to ensure your implementation of EOL is a success. To do this, we need to have information as soon as you can provide it. Thanks in advance for your cooperation and support of our efforts. Karen Lambert 10/06/99 03:01 PM To: David Forster/LON/ECT@ECT cc: Mary Solmonson/HOU/ECT@ECT, Connie Sutton/HOU/ECT@ECT, Philippe Travis/LON/ECT@ECT, Mark E Taylor/HOU/ECT@ECT, Bob Shults/HOU/ECT@ECT, Edmund Cooper/LON/ECT@ECT, Justin Boyd/LON/ECT@ECT Subject: Re: OnLine GTC's The Global team has not yet received current OnLine GTC's for the US or Canada. I will call you. David Forster 10/06/99 02:15 PM To: Karen Lambert/HOU/ECT@ECT cc: Mary Solmonson/HOU/ECT@ECT, Connie Sutton/HOU/ECT@ECT, Philippe Travis/LON/ECT@ECT, Mark E Taylor/HOU/ECT@ECT, Bob Shults/HOU/ECT@ECT, Edmund Cooper/LON/ECT@ECT Subject: Re: OnLine GTC's Karen, Thank you for your email. I'm surprised you are having difficulty obtaining current information from me, as your email attached below postdated both my conversation with Philippe Travis in which he explained that GCD would like copies of the contracts, and the email sent to him which contained GTC's. After speaking with Philippe, I asked Edmund Cooper, who works with Justin Boyd in our legal dept and who had supplied the previous email containing GTC's, to continue to forward EnronOnline copies as required. To my knowledge, this has been done. If you are still having difficulties obtaining copies, please let me know. I can be contacted in Houston at 31861 and will be arriving there Thursday afternoon. Thanks, Dave Karen Lambert 06/10/99 19:34 To: David Forster/LON/ECT@ECT cc: Mary Solmonson/HOU/ECT@ECT, Connie Sutton/HOU/ECT@ECT, Philippe Travis/LON/ECT@ECT, Mark E Taylor/HOU/ECT@ECT, Bob Shults/HOU/ECT@ECT Subject: OnLine GTC's Mark Taylor (EOL counsel) requested that I coordinate directly with you because you are the point person gathering a complete set of OnLine GTC's. Please let me know when I can expect current information regarding the US and Canadian OnLine GTC's. Because we could not obtain current information from you, Philippe (our Global Contracts database contact in London) has, at my request, gathered information regarding the European OnLine GTC's from his contacts in London. I am not aware of who "Justin" is. Can you provide me with a last name? We still need the information regarding US and Canadian OnLine GTC's. Thank you, Karen ---------------------- Forwarded by Karen Lambert/HOU/ECT on 10/06/99 01:14 PM --------------------------- From: Bob Shults 10/06/99 01:08 PM To: Karen Lambert/HOU/ECT@ECT cc: Subject: OnLine GTC's Can you please coordinate with Phillipe. ---------------------- Forwarded by Bob Shults/HOU/ECT on 10/06/99 01:07 PM --------------------------- David Forster 10/06/99 01:26 AM To: Bob Shults/HOU/ECT@ECT cc: Subject: OnLine GTC's Bob, Do you know Karen Lambert and why she needs a set of GTC's for the implementation of EOL? I believe Philippe Travis of the GCD group has been working with Justin to collect contract info. Dave ---------------------- Forwarded by David Forster/LON/ECT on 06/10/99 07:27 --------------------------- Karen Lambert 01/10/99 14:10 To: David Forster/LON/ECT@ECT cc: Mark E Taylor/HOU/ECT@ECT, Bob Shults/HOU/ECT@ECT, Connie Sutton/HOU/ECT@ECT Subject: OnLine GTC's Please let me know when to expect a complete set of OnLine GTC's in order to prepare the Global databases for implementation of EOL. Thank you, Karen x3-0605

FYI -----Original Message----- From: Dernehl, Ginger Sent: Friday, November 16, 2001 2:45 PM To: Shapiro, Richard Subject: Government Affairs Organization Announcement With the announcement of Enron's acquisition by Dynegy behind us, and with the initial severance process completed, it seemed an appropriate time to effect some organizational changes so that we as a group are better prepared to meet the challenges of the future. Before I turn to the organizational changes, I would like to say a few words about those who will be leaving the company as a result of the initial severance (you'll know who they are by their absence on the organizational chart): Leading and being a part of this group has been a privilege?I am thankful for every day that I have had that responsibility and thankful for however long I continue to have the responsibility. This sense of privilege and thankfulness is primarily driven by having had the opportunity to get to know and care about such a dedicated group of professionals and support staff and who, to a person, are also very decent and good people. To say good-bye to some of our colleagues is not easy. I want to, on behalf of all of us, thank them for their hard work, their integrity, their decency, and the good times and laughter that we shared. I trust that many of us will find ways to sustain friendships that have been and will continue to be very special. Thanks to each of you who are leaving for all you have done. As to the organizational structure, it has become increasingly apparent to me that the existing organization, with a mix of groups organized along functional and regional lines (particularly within the U.S.), has impeded our ability to get things done in the most efficient fashion at times. The need to rationalize the organizational structure, in order to consolidate all U.S. energy functions, is a strong need from my perspective. As a result, Jim Steffes will lead the U.S. Energy group along with Sue Nord, who will jointly report to Jim and myself. Sue will assist Jim in the leadership of the group and take on project management responsibilities as warranted to help Jim shoulder a significant burden. Also reporting to Jim will be a leadership group for U.S. Energy that will be as follows: Wholesale Electricity will be led by Christi Nicolay; Retail Electricity and Natural Gas will be led by Harry Kingerski; Wholesale Gas will be led by Leslie Lawner. Last, but not least, Jeff Dasovich and Sue Mara, who will continue to focus on California energy issues, will report to Jim. (Sue Mara will also be part of the Wholesale electricity team). Steve Montovano, who will continue to report to me, will lead a commercial development effort along with Dan Allegretti. With the elimination of the regional groups, I also recognize that there is a need to continue to focus on how we as a group address our political/legislative needs across the U.S. Paul Kaufman will lead a small group that will address that need and that will focus on state political support. Paul will also take the lead for Government Affairs in support of corporate development efforts across the U.S. Much of the rest of the group remains the same. Linda Robertson will continue to lead the Washington group with Sarah Novosel, who reports to Linda, taking the lead role in our coordination of activities at FERC. Amr Ibrahim will continue to lead the support of the Global Assets group and also continue to manage the Risk Analytics function. Maggy Huson will take over support of the non-energy business units, which are as follows: Global Markets, Industrial Markets, Networks, and Broadband. Rob Hemstock will continue to lead the support of Enron Canada. Paul Dawson, who heads up government affairs for Europe; Sergio Assad, who heads up government affairs for South America; and Mike Grimes and Mark Crowther, who head up our Asian efforts, will continue to jointly report to the business units and myself. I am also forming a North American leadership group for Government Affairs to provide policy guidance for the larger group and the company. That Committee will consist of Rob Hemstock, Maggy Huson, Amr Ibrahim, Paul Kaufman, Harry Kingerski, Leslie Lawner, Steve Montovano, Christi Nicolay, Sue Nord, Sarah Novosel, Linda Robertson, Jim Steffes and myself. We will also continue to have an RCR Committee that will consist of Maggy Huson, Harry Kingerski, Sue Nord, Linda Robertson, Jim Steffes & myself. Finally, I am forming a Dynegy/Enron regulatory approvals working group that will consist of Jose Bestard, Paul Dawson, Paul Kaufman, Sue Nord, Sarah Novosel and myself. No organizational structure or set of organizational changes is either perfect or permanent. I believe these changes will make us better and more prepared for the future. However, we must be prepared to further adjust as the future unfolds for the company. One final note: I am deeply sorry that each of you has had to live through this uncertain and troubled period for the company. We are all saddened by the recognition that we are in the midst of changes that will leave our group fundamentally altered, but we must resolve to do our best for each other and ourselves during this period of change to ensure that what emerges, for those of us who do remain a part of the new Dynegy, reflects the excellence and integrity that has characterized our group. Personally, I will do all I can, for as long as I can, to steer the group through this to the very best place possible. Your continued dedication and support is very much appreciated. Hang in there and thanks.

_______________________________________________________________ This message and any attachments are intended for the individual or entity named above. If you are not the intended recipient, please do not read, copy, use or disclose this communication to others; also please notify the sender by replying to this message, and then delete it from your system. Thank you. _______________________________________________________________ Tom Irwin asked that we contact you each of you directly on behalf of Allegheny to ask the following environmental due diligence questions that we have not resolved based on our review of the Dealbench documents. Please, however, feel free to reference specific documents on Dealbench if you believe they would be useful. Questions for All Facilities 1. What are the limitations on the number of hours that each facility can operate and what is the source of those limitations? 2. We understand that there are tentative expansion plans for each facility. Were these future expansion plans disclosed to the regulating agencies at the time that the air permits were applied for, particularly at those facilities which did not undergo PSD review? 3. Which facilities are required to perform continuous emissions monitoring pursuant to its air permits? For those facilities performing CEM, please provide the last two years of data. 4. Are the facilities FERC jurisdictional for environmental impact statement purposes pursuant to 18 C.F.R. Part 380? We noticed that the only facility with information about this issue was the pipeline at Lincoln, although the information seemed to suggest that only the pipeline was subject to the EIS process. See 2.02.12.G. Was the rest of the Lincoln facility subject to the EIS process? What was the outcome of the EIS process for the pipeline? 5. What is Enron's understanding of the process required to transfer the environmental permits for each facility in connection with the proposed transaction? For example, the 1995 stormwater permit for LV Cogen appears to be triggered by a change in control of the facility. See 6.02.03 at page 16. Do other permits have similar provisions? 6. Will any environmental property transfer or comparable statutes (e.g. the Illinois Responsible Property Transfer Act) be triggered by the proposed transaction? 7. We have reviewed the United States Environmental Protection Agency comments for the air permit at LV Cogen II, as discussed below. Did U.S. EPA provide any additional comments on the air permits for LV Cogen II or any other facility? Lincoln Facility 1. Does the Lincoln facility have an air operating permit from the Illinois Environmental Protection Agency? If so, please provide a copy. If not, please explain status. 2. Were any wetlands impacted by the construction of the facility and, if so, what permits were obtained? Will any wetlands be impacted by future expansion plans? ENSR's conclusion on this issue seemed unclear, particularly with respect to the 30 acre parcel. See 02.03.09C. Gleason Facility 1. Does the Gleason facility have an air operating permit from the Tennessee Department of Environment & Conservation? If so, please provide a copy. If not, please explain status. We also noticed that the construction permit expired on October 1, 2000. See 02.01.02. Was it renewed? 2. What is the status of the petition for variance to the Tennessee Department of Environment & Conservation for alternative testing and monitoring methods under NSPS Subpart GG dated April 17, 2000? See 02.01.04B. What is the status of the letter requesting a waiver of certain source emission tests dated April 18, 2000? See 02.01.04A. 3. Is there enough water to support an expansion of the facility at Gleason? Please provide any testing/analysis that has been performed with respect to this issue. Wheatland Facility 1. We understand that the Wheatland facility may seek a NPDES permit to discharge wastewater directly to the White River. How is this wastewater currently managed? Why is the facility considering changing the management method to direct discharge under a NPDES permit? If there are associated cost savings with a NPDES permit, what are they estimated to be? We understand that the source of the water that is discharged is a pond associated with mining operations. Who is the owner of the pond? Are any water extraction permits needed to remove water from this pond and, if so, have they been obtained? We also understand that sampling was recently performed of the water. Please provide copies of this analysis and any associated documentation. LV Cogen 1. The Industrial User Discharge Permit on Dealbench appears to have expired on July 1, 2000. See 6.02.02. Was it renewed? If so, please provide copy. 2. The stormwater discharge permit for LV Cogen appears to be expired. See 06.02.03. Was it renewed? If so, please provide copy. 3. Does Sunco hold any environmental permits in its own name? If so, please provide copies. LV Cogen II 1. EPA contends in its March 23, 1998 and March 24, 2000 letters that BACT for LV Cogen II was SCONOx and/or XONON. See 06.01.09.1. How was this issue resolved? Can LV Cogen II meet the 2 ppm NOx limit in the draft operating permit with the technology that has been proposed? See 06.01.15. 2. It appears that the State of Nevada has contended that certain equipment replacement should have undergone new source review in their June 13, 2000 memo. See 16.03.6. How was this resolved? What is EPA's view on this issue?

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A colleague has sent you this article from Fortune (http://www.fortune.com). Reply to your colleague at [email protected] I believe this is the article=== =-=-=-=-=-=-=-=-=-=-=-=-=-=-= ENRON Is Enron Overpriced? It's in a bunch of complex businesses. Its financial statements are nearly impenetrable. So why is Enron trading at such a huge multiple? Bethany McLean Mon Mar 05 00:00:00 EST 2001 In Hollywood parlance, the "It Girl" is someone who commands the spotlight at any given moment--you know, like Jennifer Lopez or Kate Hudson. Wall Street is a far less glitzy place, but there's still such a thing as an "It Stock." Right now, that title belongs to Enron, the Houston energy giant. While tech stocks were bombing at the box office last year, fans couldn't get enough of Enron, whose shares returned 89%. By almost every measure, the company turned in a virtuoso performance: Earnings increased 25%, and revenues more than doubled, to over $100 billion. Not surprisingly, the critics are gushing. "Enron has built unique and, in our view, extraordinary franchises in several usiness units in very large markets," says Goldman Sachs analyst David Fleischer. Along with "It" status come high multiples and high expectations. Enron now trades at roughly 55 times trailing earnings. That's more than 2 1/2 times the multiple of a competitor like Duke Energy, more than twice that of the S?500, and about on a par with new-economy sex symbol Cisco Systems. Enron has an even higher opinion of itself. At a late-January meeting with analysts in Houston, the company declared that it should be valued at $126 a share, more than 50% above current levels. "Enron has no shame in telling you what it's worth," says one portfolio manager, who describes such gatherings as "revival meetings." Indeed, First Call says that 13 of Enron's 18 analysts rate the stock a buy. But for all the attention that's lavished on Enron, the company remains largely impenetrable to outsiders, as even some of its admirers are quick to admit. Start with a pretty straightforward question: How exactly does Enron make its money? Details are hard to come by because Enron keeps many of the specifics confidential for what it terms "competitive reasons." And the numbers that Enron does present are often extremely complicated. Even quantitatively minded Wall Streeters who scrutinize the company for a living think so. "If you figure it out, let me know," laughs credit analyst Todd Shipman at S&P. "Do you have a year?" asks Ralph Pellecchia, Fitch's credit analyst, in response to the same question. To skeptics, the lack of clarity raises a red flag about Enron's pricey stock. Even owners of the stock aren't uniformly sanguine. "I'm somewhat afraid of it," admits one portfolio manager. And the inability to get behind the numbers combined with ever higher expectations for the company may increase the chance of a nasty surprise. "Enron is an earnings-at-risk story,'' says Chris Wolfe, the equity market strategist at J.P. Morgan's private bank, who despite his remark is an Enron fan. "If it doesn't meet earnings, [the stock] could implode." What's clear is that Enron isn't the company it was a decade ago. In 1990 around 80% of its revenues came from the regulated gas-pipeline business. But Enron has been steadily selling off its old-economy iron and steel assets and expanding into new areas. In 2000, 95% of its revenues and more than 80% of its operating profits came from "wholesale energy operations and services." This business, which Enron pioneered, is usually described in vague, grandiose terms like the "financialization of energy"--but also, more simply, as "buying and selling gas and electricity." In fact, Enron's view is that it can create a market for just about anything; as if to underscore that point, the company announced last year that it would begin trading excess broadband capacity. But describing what Enron does isn't easy, because what it does is mind-numbingly complex. CEO Jeff Skilling calls Enron a "logistics company" that ties together supply and demand for a given commodity and figures out the most cost-effective way to transport that commodity to its destination. Enron also uses derivatives, like swaps, options, and forwards, to create contracts for third parties and to hedge its exposure to credit risks and other variables. If you thought Enron was just an energy company, have a look at its SEC filings. In its 1999 annual report the company wrote that "the use of financial instruments by Enron's businesses may expose Enron to market and credit risks resulting from adverse changes in commodity and equity prices, interest rates, and foreign exchange rates." Analyzing Enron can be deeply frustrating. "It's very difficult for us on Wall Street with as little information as we have," says Fleischer, who is a big bull. (The same is true for Enron's competitors, but "wholesale operations" are usually a smaller part of their business, and they trade at far lower multiples.) "Enron is a big black box," gripes another analyst. Without having access to each and every one of Enron's contracts and its minute-by-minute activities, there isn't any way to independently answer critical questions about the company. For instance, many Wall Streeters believe that the current volatility in gas and power markets is boosting Enron's profits, but there is no way to know for sure. "The ability to develop a somewhat predictable model of this business for the future is mostly an exercise in futility," wrote Bear Stearns analyst Robert Winters in a recent report. ? http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=200625 Colleague at Fortune http://www.fortune.com

---------------------- Forwarded by Rahil Jafry/HOU/ECT on 12/26/2000 03:01 PM --------------------------- CFTC Rules, Legislation Aim to Clear Up Regulation of Over-the-Counter Contracts.(US Commodity Futures Trading Commission)(Brief Article) 12/08/2000 The Oil Daily ITEM00343007 Copyright 2000 Gale Group. All rights reserved. COPYRIGHT 2000 Energy Intelligence Group CFTC Rules, Legislation Aim to Clear Up Regulation of Over-the-Counter Contracts A long process designed to clarify rules for over-the- counter (OTC) markets may be drawing to a close after the US Commodity Futures Trading Commission (CFTC) - the main regulatory agency - issued its final framework for a new regime. The rules are designed to clear up the legal status of OTC products such as swaps, while providing more flexible oversight of futures markets and promoting the establishment of independent clearinghouses. Unveiled late last month, the CFTC reforms are due to be published in the Federal Register next week, and would take effect 60 days later - in mid-February. In the meantime, a new president should take office Jan. 20. CFTC experts seem confident that the reforms will survive the changeover, saying it is hard for an incoming administration to pull back final regulations. There are also signs of progress on a parallel bill supporting the reforms, the Commodity Futures Modernization Act. This was passed by the House in late October, but got bogged down in the Senate, partly due to objections by Sen. Phil Gramm (R-Texas), who heads the Senate Banking Committee. A compromise was hammered out early this week, sources say, and the law could still get through this year - most likely as an attachment to an appropriations bill. Legislation would give the CFTC measures a stronger legal footing, but could require them to be tweaked into line. The CFTC reforms respond to the explosion of both derivatives markets and electronic trading, from equities to natural gas. Currently, electronic exchanges targeting derivatives markets - such as the Big Oil-backed IntercontinentalExchange - operate in a regulatory gray area. The new reforms define futures exchanges more flexibly, replacing a "one-size-fits-all" approach with core principles, and establishing three tiers of regulation: The top tier - of "recognized futures exchanges" (RFEs) - matches the current futures markets, such as Nymex, and is the most tightly regulated The second rank, of "derivatives transaction facilities" (DTFs), comprises institutions requiring looser regulation, if, for example, participation is restricted to big companies. The third tier, of "exempt multilateral transaction execution facilities" (Exempt MTEFs), escapes most regulation. In parallel, the CFTC has clarified an old ruling removing swaps from regulation - the so-called Part 35 exemption. This ends previous restrictions, so that OTC products traded between two parties can now be "fungible, standardized, and cleared." This is part of a drive to turn derivatives into legally recognized products, making it hard for one side to renege on an unfavorable contract. Finally, the CFTC has moved to encourage the establishment of independent clearinghouses by separating the rules for exchange and clearing functions. Two start-ups, EnergyClear and NexClear, have already declared their intention to offer such services, starting with US gas and power. Amid concerns about price manipulation, the energy industry has been treated as a special case throughout the new framework and does not qualify for the least-regulated Exempt MTEF category of exchange. The CFTC reforms also remain fuzzy in certain areas. In particular, the new Part 35 exemption for derivatives covers bilateral transactions, with multilateral activity still in something of a gray area. Basically, an exchange handling multilateral trades of energy derivatives can apply to the CFTC for official status as a "commercial DTF" if it thinks this will bring credibility and legal standing. However, a derivatives exchange that does not register with the CFTC will not be pursued. The new framework offers "legal certainty for those who want recognition; it is not ruling on the status of those who don't," one expert said. In practice, outfits such as EnronOnline - the web system for direct transactions with Enron - are in the clear as bilateral platforms dealing in contracts outside CFTC jurisdiction. Intercontinental, as a multilateral exchange dealing in standardized swaps, could probably remain unregulated, but could also register as a DTF to clarify its status. Nymex, in its current form, would be an RFE because it entertains noninstitutional traders. But the exchange could apply for its planned electronic arm enymex (or its traditional floor) to become a DTF, by limiting activity to institutional users. David Pike, Manimoli Dinesh For more on this story, see the next issue of Oil Daily sister publication energy network. Folder Name: Rahil Jafry Relevance Score on Scale of 100: 80 ______________________________________________________________________ To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at [email protected] or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.) ______________________________________________________________________ Copyright (c) 2000 Dow Jones & Company, Inc. All Rights Reserved

----- Forwarded by Gerald Nemec/HOU/ECT on 06/01/2001 06:08 PM ----- "Gillaspie, Eric" <[email protected]> 06/01/2001 10:50 AM To: "Barbara Waldrop (E-mail)" <[email protected]>, "Gerald Nemec (E-mail)" <[email protected]> cc: Subject: FW: Jon's latest.... Eric Gillaspie Counsel Shell Trading Gas and Power Company Tel. 713-230-3576 Fax 713-265-3576 2HC 1036 -----Original Message----- From: jonathan gillaspie [mailto:[email protected]] Sent: Friday, June 01, 2001 9:43 AM To: [email protected]; Gillaspie, Eric; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected] Subject: OK Kids: This will be one of your last major briefings before your Mars landing. Good luck cosmonauts! Remember one thing: the Martians are a little weird from our standpoint, but essentially they are harmless and good-natured bipeds like us. Now, let's begin with the pre-landing meeting. ERIC/DAN'S GROUP: Shanghai hotel: Jin Chang Hotel. Hotel price: $37 USD/night (300 yuan). Heather's single room rate: $27 USD/night. Tour package price: $34 USD total/person (280 yuan) this price is for June 5-8. Meals: Meals not included in package. Your group will need to arrange and pay for your own meals with the assistance of your guide/translator. Your translator will accompany you to the restaurants if you wish. He/she can help you order and suggest dishes which represent the local Shanghai cuisine. Go ahead and pay for your guide's meal if you choose to bring them along for dinner (it won't be very expensive). This option will give you more freedom. Admission tickets: Also not included in the tour package. You'll need to pay for admission to the Yu Yuan Gardens, Yu Fo Si (Buddhist Temple), Shanghai Art Museum, etc. Airport service: Jin Chang Hotel staff will pick you up at Pudong Airport in Shanghai. Ai Ping and I will accompany them and meet you. They'll also take you and the rest of the group to the airport on June 8th for your flight to Qingdao. We got a special hotel rate for the group through one of Ai Ping's friends, Lucy Hong. Her company, Rosemont Corp. (Dallas, TX), has a special arrangement with the hotel. When you check in you should tell the clerks that you're checkin in under the Rosemont Corp's name so as to receive the special discount. Don't worry- we'll be there to assist you when you check in. MOM/DAD'S GROUP: Hotel name: Jin Chang Hotel, same as above. Hotel price: $37 USD/night (300 yuan), same as above. Tour package price: $24 USD total/person, reduced price because one day less in Shanghai. Airport service: Jin Chang Hotel staff will pick you up at the airport and take you to the airport for your Qingdao flight on June 8th.] Note: you also need to check-in under the Rosemont Corp. name. JEFF/CATHY: Hotel name: Jin Chang Hotel, same as above. Hotel price: same as above. No tour package. Airport service: none. You'll need to take a taxi into Shanghai from Pudong Airport. You could also take a bus, but I'm not sure which of the 4-5 buses you would need to take. Jeff, I'll have Ai Ping try and send you the Hotel name and address in Chinese so you can just show it to the taxi driver. I'm not sure whether or not your computer will accept Chinese script, but we'll give it a try. The Jin Chang Hotel is relatively new, so most of the taxi drivers don't know where it is without a little assistance. Not to worry, we'll figure something out to make sure you don't end up in Chengdu after your trans-Pacific hop. You'll join the rest of the group the following morning on the hotel bus to the airport for your Qingdao flight. THE FOLLOWING ARE THE NAMES AND PHONE NUMBERS FOR THE VARIOUS HOTELS YOU'LL BE STAYING IN: SHANGHAI: Jin Chang Hotel Telephone: 021-6298 8899 QINGDAO: Donghai Hotel Telephone: 053-2388 7070 BEIJING: Beijing International Hotel Telephone: 010-6512 6688 When you call these numbers you should say in perfect Mandarin, "Qian tai." This means "front desk." Then start blabbing in your most unintelligible English. The hotel staff will then understand that they've got a foreign devil on the line making trouble, and they'll find someone who can speak Chinglish with you. Ai Ping and Jon Gillaspie's mobile phone number: 013033511842. We got Ai Ping's cell phone hooked up again specifically to assist all parties in their entrance to the middle kingdom. Do not hesitate to call us any any time of the day if you need help. I'm serious! Ai Ping's beeper number: 1922202866. You can use this number also. BEIJING TOUR PACKAGE DETAILS: Hotel name: Beijing International Hotel, 5 star hotel. Hotel price: $70 USD/night (570 yuan). Total package price: $550 USD/couple total. This price does not include beverages (ie. in restaurants we buy the booze). We'll also need to pay for the roast Beijing duck dinner, and the Xinjiang restaurant dinner (Chinese Muslim cuisine). Tour package itinerary: same as before with some minor changes; will inform group of changes tomorrow. That's all for now folks. I'm spent, and can no longer look at a computer monitor without becoming cross-eyed. More info will be sent tomorrow. Any questions: you know who to contact. Zaijian comrades, may the proletarian revolution continue! The East is Red, Jon Gillaspie _________________________________________________________________________ Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.

Thanks. No Concerns -----Original Message----- From: Wong, Jeremy Sent: Thursday, January 10, 2002 4:36 PM To: McLaughlin Jr., Errol Cc: Lim, Francis S. Subject: FW: Holiday Entry in ermt Errol: I will be performing the following 2 tasks tomorrow morning in the production database. You have already approved of both of these tasks - please let me know if you do not want me to do this tomorrow. (1) Remove Jul. 5 and Nov. 28/29 2002 as business days from the NYMEX calendar. On completion of this, all the holidays will have been removed as business days for 2002. (2) The day after Thanksgiving used to be a business day until 1998 - it has became a holiday since then. The futures/options expiration dates for Dec. NG NYMEX contracts were calculated with the day after Thanksgiving as a business day. I will correct these dates for 2002 (from Nov. 26 to Nov. 25 for futures, from Nov. 25 to Nov. 22 for options) and update the affected NX1, NX3 and NXB2 deals. (There will be a slight effect on your books.) (We have been performing this task once a year since 1998.) Please let me know if you have any concerns/questions. Thanks, Jeremy -----Original Message----- From: Wong, Jeremy Sent: Tuesday, January 08, 2002 3:46 PM To: Lim, Francis S. Subject: FW: Holiday Entry in ermt We need to remove the Thanksgiving holidays together with the fix outlined below - please have Errol approve the holiday removal also - thanks. -----Original Message----- From: Wong, Jeremy Sent: Monday, January 07, 2002 11:08 AM To: Lim, Francis S. Subject: FW: Holiday Entry in ermt 3 days have not been removed - Jul. 5 and Nov. 28/29. -----Original Message----- From: Wong, Jeremy Sent: Monday, January 07, 2002 10:48 AM To: Lim, Francis S. Subject: RE: Holiday Entry in ermt Has he approved the removal of holidays? -----Original Message----- From: Lim, Francis S. Sent: Monday, January 07, 2002 10:46 AM To: Wong, Jeremy Subject: FW: Holiday Entry in ermt Jeremy, Errol approved changes. where can I find the scripts to run in production? -----Original Message----- From: McLaughlin Jr., Errol Sent: Thursday, January 03, 2002 10:30 AM To: Lim, Francis S. Subject: RE: Holiday Entry in ermt Thursday and Friday (11/27 & 11/28) are both holidays. Please make the appropriate changes. Errol -----Original Message----- From: Lim, Francis S. Sent: Thursday, January 03, 2002 10:27 AM To: Gossett, Jeffrey C.; McLaughlin Jr., Errol Subject: FW: Holiday Entry in ermt We are still waiting for you approval on this. Thanks, Francis -----Original Message----- From: Wong, Jeremy Sent: Wednesday, January 02, 2002 10:16 AM To: Lim, Francis S. Subject: FW: Holiday Entry in ermt Any progress on this? - thanks. -----Original Message----- From: Wong, Jeremy Sent: Thursday, December 06, 2001 10:35 AM To: Lim, Francis S. Cc: Cheung, Cecilia Subject: FW: Holiday Entry in ermt Truong was supposed to check with Errol before we do this in prod. - do you know if he got approval? I have done this in devel. with Truong - we can do this together in stage/prod. Thanks. -----Original Message----- From: Wong, Jeremy Sent: Tuesday, November 27, 2001 10:45 AM To: Lim, Francis S. Cc: Vu, Truong Subject: FW: Holiday Entry in ermt Francis/Truong: Another issue we have to deal with yearly is the day after Thanksgiving - it was not a NYMEX holiday until 1998, and it seems like it will be a holiday next year. The NG futures and options termination dates are stored in ermt as the 3rd business day from the end of the month and the 4th business day respectively. For November, this was calculated with the day after Thanksgiving as a business day - these 2 dates may need to change now that it is a holiday. We have a number of complicated scripts that updates the termination dates, the deals and the averaging dates that we run once a year to fix this problem. I will need to work with you and Truong this week to do this for 2002 - let me setup the scripts and then I will go through with the 2 of you and do the fix together. Truong: Please check with Errol: (1) The day after Thanksgiving 2002 is a NYMEX holiday. (2) As such, the futures termination date for Dec. 2002 is Nov. 25, and not Nov. 26 (NX1 date). (3) The options termination date for Dec. 2002 is Nov. 22, and not Nov. 25. Thanks. -----Original Message----- From: Wong, Jeremy Sent: Tuesday, November 27, 2001 10:32 AM To: Lim, Francis S. Cc: Vu, Truong Subject: FW: Holiday Entry in ermt -----Original Message----- From: Wong, Jeremy Sent: Wednesday, September 12, 2001 11:41 AM To: Lim, Francis S. Cc: Husain, Karima; Cheung, Cecilia; Vu, Truong Subject: Holiday Entry in ermt Francis: (1) Truong has been in charge of putting in holidays into the database (actually we don't store holidays, we remove them as business days), and Cecilia has been in charge of creating new calendars in the database - these 2 duties should probably be done by 1 person with a backup. (2) 5 active calendars are currently defined, with the user group owner identified: NYMEX - Gas (with EGM and EIM also) IPE - EGM (Houston) SIMEX - EGM (Singapore) TOCOM (Tokyo) - EGM (Singapore) NYMEX + IPE (this is an intersection of business days - i.e. a holiday in either exchange is a holiday in this calendar.) - EGM (Houston) (3) We usually remove holidays as business days 1 year at a time, a few weeks before the start of the next year, by getting the list of holidays from our user group, as identified above. We then get approval from them as to the day they want us to do it. (4) A number of holidays in the future years have already been removed as business days due to user requests - Truong has the list. (5) Please ensure that this process is continued. Thanks, Jeremy

Daily Note Newsletter ------------------------------ ================ Sponsored by TWST.com ===================================== Healthcare Investor? Come to our free Cell & Stem Cell Therapies Virtual Conference at http://www.twst.com/register/stemconf.html ============================================================================= -- This week TWST has an interview with the President and CEO and a Director of CDI Corp. He states, "CDI today is an outsourcing and staffing company. We are leaders in several of the areas we participate in. We've got four major lines of business or reporting segments. Our Management Recruiters International business is the world's leading recruiting company. Our Today's Staffing business is a regional player in clerical and administrative temporary staffing. Then we have our Professional Services business, which is higher-end technology and technical services staffing in targeted industries; we're one of the leaders in those spaces. And we've got our Project Management business, specializing in engineering and information technology outsourcing." He states, "Clearly, there's huge opportunity in the Project Management businesses. Outsourcing is a trend that's going to continue and, in fact, accelerate. Most corporations are becoming more disciplined at sticking to their core competencies and outsourcing the rest. They're getting more financially disciplined in looking to manage on a steady run rate of staffing and, for peak-and-valley effects, to outsource projects. I think there's a tremendous boom coming in outsourcing in general. And then there are some specific industry sectors that I think are very attractive, some targeted vertical markets, a good example being health care, where there's going to be a tremendous opportunity for us." To read more of this interview excerpt, click on http://www.twst.com/notes/articles/nax611.html. -- We also have an analyst interview with the Director and Senior Analyst in the Equity Research department at Robert W. Baird & Company. He highlights Manpower. "Manpower is another interesting pick, for reasons I discussed earlier - improved mix, management, and margin potential. The current estimates are depressed. I think Manpower can potentially do $2.50 per share in 2003, and trade at 20 times that number - and the stock is only mid-$30s today." To read more of this interview, please click on http://www.twst.com/notes/articles/nav460a.html. -- All these extracts below are free, but if you want the full text to any of these articles, call (212) 952 7433, or go to http://www.twst.com/subscribe.html Following are the latest interviews from the the Industry/Services Sector published by The Wall Street Transcript. ______________ Services MD discusses the global portfolio and resilience of P&O Ports http://archive.twst.com/notes/articles/lqs096.html Corporate Executive Board has done consistently well through this period, notes Analyst http://archive.twst.com/notes/articles/nav460d.html Administaff has a very good execution formula, states Analyst http://archive.twst.com/notes/articles/nav460e.html Off The Record: Spherion has the potential to do very well, notes an Industry Expert http://archive.twst.com/notes/articles/nav700d.html Analyst reports on Right Management Consultants http://archive.twst.com/notes/articles/nav460c.html Off The Record: Analyst sees a brighter future for Korn/Ferry http://archive.twst.com/notes/articles/nav700c.html CEO discusses Labor Ready's corporate strategy http://archive.twst.com/notes/articles/nax606.html Cross Country is top on Analyst's list http://archive.twst.com/notes/articles/nav460b.html Off The Record: A Leading Analyst praises Manpower's Executives http://archive.twst.com/notes/articles/nav700b.html Analyst has a strong buy rating on TMP Worldwide http://archive.twst.com/notes/articles/nav860b.html CEO of Eloquent explains the agenda for the next 12 months http://archive.twst.com/notes/articles/nax608.html Manpower is an interesting pick, notes Analyst http://archive.twst.com/notes/articles/nav460a.html Off The Record: On Assignment's management has done a solid solid job of managing cost, notes an Industry Pro http://archive.twst.com/notes/articles/nav700a.html Analyst reports on Robert Half International http://archive.twst.com/notes/articles/nav860a.html COO discusses the strategic direction for DA Consulting Group http://archive.twst.com/notes/articles/nax605.html Analyst favors Resources Connection http://archive.twst.com/notes/articles/nav460.html Off The Record: A Leading Analyst praises Adecco's management team http://archive.twst.com/notes/articles/nav700.html Manpower is very well positioned, states Analyst http://archive.twst.com/notes/articles/nav860.html CEO highlights the biggest opportunities for CDI http://archive.twst.com/notes/articles/nax611.html To see more about The Wall Street Transcript, go to the website at http://www.twst.com Access to interview extracts is free, and access to the full text of any of the articles listed above requires a subscription to that sector. For FULL-TEXT SUBSCRIPTION go to http://www.twst.com/subscribe.html The Wall Street Transcript is a premier weekly investment publication serving serious long-term investors for over 35 years. The Transcript publishes industry roundtables and interviews with Wall Street analysts, money managers, and company CEOs, and is read by top money managers, brokers, and individual investors.The Wall Street Transcript is independent and impartial and neither invests in, nor recommends, stocks. Investors should always conduct their own research before investing. To UNSUBSCRIBE go to http://www.twst.com/unsubscribe.html ________________________________________________ Copyright (c) 2000, Wall Street Transcript Corp.

---------------------- Forwarded by Eric Bass/HOU/ECT on 01/04/2001 09:41 AM --------------------------- Enron North America Corp. From: Eric Bass 01/04/2001 08:42 AM To: Chad Landry/HOU/ECT@ECT cc: Timothy Blanchard/HOU/EES@EES, Matthew Lenhart/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@EC, Luis Mena/NA/Enron@Enron, Brian Hoskins/Enron Communications@Enron Communications, Brian Hoskins/Enron Communications@Enron Communications, Phillip M Love/HOU/ECT@ECT, David Baumbach/HOU/ECT@ECT Subject: Re: FW: Big commitment I have said it 15 times already, but I will say it again. Texas was 4-7 in the season prior to Mack Brown. The program was in shambles . Mack Brown came in late and was unable to salvage a recruiting class his first year. Lo and behold Texas goes 9-3, beat Nebraska in Lincoln (No. 3 at the time with the longest home winning streak in recent history), and destroys Miss St in the Cotton Bowl. Those sound like some big wins don't they? Does it sound familiar? I doubt you can compare the teams that LSU beat with the teams Texas beat. So my point is that players get up for new coaches. You, as LSU fans, fans can expect about the same next year as this year. Next year, is Texas' year ( and I know what you will say " well that is what you say every year"), but Mack's first true recruits will be juniors and his first class (half his/half Mackovics) will be seniors. So, if he doesn't win the big game next year, then you can call him a bad coach. I have a problem saying he is a bad coach after he has put together 3 straight 9 win seasons. As a side note, look who won the national championship game - the Big 12. If I am not mistaken, that makes the big 12 4-3 in the bowls while the Sec was 4-5. If not for a bumbled extra point and a few dropped passes the 12 would be 6-1 and the sec 3-6. I see the beginnings of a new college fb powerhouse conference. The Big 12 will win at least the next 2 NCs. See ya Chad Landry 01/03/2001 09:30 PM To: Eric Bass/HOU/ECT@ECT cc: Timothy Blanchard/HOU/EES@EES, Matthew Lenhart/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT Subject: Re: FW: Big commitment Looks like you guys have been having some fun during my absence. I have a question: How many top recruiting classes does it take for Texas to win a few big games in a single football season. Dinnardo left LSU's recruiting program in shambles. Last year was one of the worst recruiting seasons in LSU team history. However, WE still managed to pull off some amazing team victories this year. If there is one thing I learned from watching LSU this season, its that its nice to have talent on your team but its more important to have HEART and PRIDE. So keep watching your Texas big names choke and I'll keep watching our TIGER No-Names win. As Always, its all in Good Fun. CKL Enron North America Corp. From: Eric Bass 01/03/2001 04:08 PM To: Timothy Blanchard/HOU/EES@EES cc: Matthew Lenhart/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT, Chad Landry/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT Subject: Re: FW: Big commitment Oh yeah, and by the way here are the rankings . . . http://louisianastate.rivals.com/default.asp?sid=40&p=58&sp=1 ---------------------- Forwarded by Eric Bass/HOU/ECT on 01/03/2001 04:06 PM --------------------------- Enron North America Corp. From: Eric Bass 01/03/2001 04:06 PM To: Timothy Blanchard/HOU/EES@EES cc: Matthew Lenhart/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT, Chad Landry/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT Subject: Re: FW: Big commitment Wilkerson is the number 3 prospect in the country at lineman behind Johnathon Scott a commitment of guess who - Texas. http://louisianastate.rivals.com/default.asp?sid=40&p=3&sp=1&pl=-13604 Wilkerson http://longhornlink.rivals.com/default.asp?sid=798&p=3&sp=1&pl=-12695 Scott To: Eric Bass/HOU/ECT@ECT, Matthew Lenhart/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT, Chad Landry/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT cc: Subject: FW: Big commitment Raiding Texas baby! ---------------------- Forwarded by Timothy Blanchard/HOU/EES on 01/03/2001 03:44 PM --------------------------- David Fontana 01/03/2001 03:42 PM To: Timothy Blanchard/HOU/EES@EES cc: Subject: FW: Big commitment Go Tigers!!!!!!!!!! ---------------------- Forwarded by David Fontana/HOU/EES on 01/03/2001 03:42 PM --------------------------- [email protected] on 01/03/2001 03:36:50 PM To: [email protected], [email protected], [email protected] cc: Subject: FW: Big commitment -----Original Message----- From: Scott Cullen [mailto:[email protected]] Sent: Wednesday, January 03, 2001 4:22 PM To: Turner (E-mail); Bras (E-mail); Mark Zametto (E-mail) Subject: Big commitment We got a huge commitment today from big Ben Wilkerson, center out of Hemphill, TX. He is rated by Rivals as the #1 lineman prospect in the country, and it is very rare for a center to rate so high on their list. They keep rolling in; Marcus Spears is expected to announce on Friday. This e-mail contains information that is confidential/privileged or both. This information is intended only for the use of the individual or entity named on this e-mail transmission. Any disclosure, copying, distribution or use of this information by any person other than the intended recipient is prohibited. If you have received this e-mail in error, please destroy immediatley and contact sender.

---------------------- Forwarded by David M Gagliardi/TTG/HouInd on 12/13/2000 10:17 AM --------------------------- "Michael Gagliardi" <[email protected]> on 12/13/2000 09:48:53 AM To: <[email protected]> cc: Subject: Fw: True Orange Fax/E-Mail #3 ----- Original Message ----- From: <[email protected]> To: <[email protected]> Sent: Tuesday, December 12, 2000 10:15 PM Subject: True Orange Fax/E-Mail #3 True Orange Fax/E-Mail Service Volume 9, Fax/E-Mail #3, Tuesday, December 12, 2000 Jerry Scarbrough's True Orange, P. O. Box 26530, Austin, Texas 78755 - Phone 512-795-8536 Brown Gets Big Raise; Assistant FB Coaches Also Will Benefit Texas ootball coach Mack Brown has been given a $450,000 raise to boost his annual salary to $1,450,000 and maintain his status among the top 10 highest-paid college football coaches in the country, Longhorn Athletic Director DeLoss Dodds announced Tuesday. Brown's raise is an increase from the 10-year, $1 million per year contract that he signed following the 1998 season. He will have eight years remaining on the $1.45 million per year contract. "Mack has done a terrific job for The University of Texas, our Athletics Department and the football program," Dodds said. "We are extremely proud of everything he, his staff and the student-athletes have accomplished and are excited about our future." "It is very important that the head football coach at Texas remains in the upper echelon of coaching compensation, which is an ever-changing dynamic," Dodds said. "This raise is in response to the current demand in the coaching marketplace and a well-deserved reward for Mack's hard work and dedication. We are thrilled with the direction he has taken our football program and look forward to a long-lasting relationship." Brown has led the Horns to three straight nine-win seasons for the first time since 1981-83 and is guiding UT to a third-straight bowl game for just the second time since 1985. The No. 12 Longhorns will face the No. 8 Oregon Ducks at the Culligan Holiday Bowl in San Diego on Dec. 29. Brown's Texas program is one of only seven schools nationally that is riding a string of three straight nine-win campaigns. Including a pair of 10-win seasons at North Carolina prior to his arrival at Texas, Brown joins Bobby Bowden (Florida State), Steve Spurrier (Florida) and Bill Snyder (Kansas State) as the only NCAA Division I-A coaches who have led their teams to five-straight nine-plus win seasons. "I appreciate the continued commitment to our football program from The University of Texas," Brown said. "I'm proud to be the head coach of the Longhorns." Brown's assistant coaches also are in line for raises. Football raises about $40 million of the entire $50 million budget for all the men's and women's athletic programs. It is the only program that shows a profit. Baseball and men's and women's basketball are the only other major revenue sports, and none of them produce as much revenue as they spend. * * * * FOOTBALL NOTES: Longhorn ticket sales are lagging for the Holiday Bowl are lagging and Oregon fans are snapping up some of the 11,500 tickets that were allotted to Texas fans. If Longhorn fans don't step up quickly, Oregon fans are going to occupy the vast majority of the seats in San Diego on Dec. 29. . . The Longhorns begin practicing for the bowl game Thursday. All the practices will be closed to the public. . . Former Longhorn and pro football great Harley Sewell was inducted into the College Football Hall of Fame this week. . . . Redshirt freshman WR Artie Ellis, who missed most of this season with a sore shin, will get a look at TE in spring practice. With the emergence of freshman receivers Roy Williams, B. J. Johnson and Sloan Thomas, the 215-pound Ellis might have a better chance of seeing meaningful playing time by beefing up a little and playing tight end. . . Another spring move that is being contemplated is seeing if sophomore LG Derrick Dockery could move over to LT to replace departing senior Leonard Davis. Texas has three good guards in Dockery, Antwan Kirk-Hughes and Tillman Holloway. Mike Williams is the only returning tackle who has seen a lot of action. In addition to getting the best five linemen on the field at the same time, that move might give the offensive line more fire because Holloway is a very aggressive lineman. The offensive line has frequently been cited as lacking fire and leadership. * * * * FOOTBALL RECRUITING NOTES: The Longhorns are having their annual football banq uet this weekend. Most of the players making official visits will be players who already are committed to Texas, but there are at least two exceptions. OL William Winston of Houston Madison and S Rufus Harris of La Porte are both scheduled to visit. Super LB Derrick Johnson of Waco now says he is going to take all of his visits in January. Texas leads for Winston and Johnson and it it a UT-A&M battle for Harris. * * * * My next fax will be whenever events warrant. * * * * The True Orange Fax Service includes at least 99 faxes a year and costs $99 ($79 by E-Mail). The True Orange Newsletter includes 26 newsletters and is published weekly during football season and twice monthly during most of the other months. It costs $45. Save by subscribing to both for $130 (or $110 if you take the faxes via E-Mail or $99 if you take the faxes and newsletter via E-Mail). Send check to address at the top of page. I also update my 900 number - 1-900-288-8839 - daily with recruiting news. My E-Mail address is: [email protected]

Thanks to Alex Goldberg for forwarding this helpful opinion. ************** CONFIDENTIAL Luce, Forward, Hamilton & Scripps LLP 600 West Broadway Suite 2600 San Diego, CA 92101-3391 (619) 236-1414 The information contained in this electronic mail transmission is confidential and intended to be sent only to the stated recipient of the transmission. It may therefore be protected from unauthorized use or dissemination by the attorney-client and/or attorney work-product privileges. If you are not the intended recipient or the intended recipient's agent, you are hereby notified that any review, use, dissemination, distribution or copying of this communication is strictly prohibited. You are also asked to notify us immediately by telephone and to return the original document to us immediately by mail at the address above. Thank you in advance for your cooperation. -----Original Message----- From: Goldberg, Alex [mailto:[email protected]] Sent: Thursday, July 26, 2001 12:49 PM To: '[email protected]' Subject: FW: Notice of Lodgment - Legislative Counsel Opinion Chris, Please see the attached tif file containing a very important CA legislative counsel opinion that we should also consider lodging w/ the court or at least using in our various pleadings. I thought I sent it around a few days ago. Apparently there was a problem. Please forward as needed. Alex -----Original Message----- From: Healey, Chris [mailto:[email protected]] Sent: Thursday, July 26, 2001 2:29 PM To: Alexander, Jeff; Allen, Gretchen; Bailey, Brent; Beh, James; Benzian, Peter; Bestor, Geoffrey; Bliss, Erik; Brooks, John T.; Brown, Heather; Burns, David; Butswinkas, Dane; Chapin, Edward; Coleman, Ran; Copeland, Greg; Costa, Jennifer; Cottle, Lisa; Davenport, Hugh; Davidson, Jeffrey; Dick, Charles; Edwards, Brady; Edwards, Robert Jr.; Eisenstat, Larry; Ezickson, Doron; Fallon, Robert; Fergus, G.; Forrest, Kirk; Frizzell, Jean; Gammie, John; Gibbs, Robin; Goldberg, Alex; Guzman, Jose; Halling, Gary; Hamer, Mark; Harris, Scott; Hartman, Sanford; Healey, Christopher; Hein, Jennifer; Herbert, John; Herman, Stephen; Hernandez, Lynne; Hixson, Thomas; Holcomb, Bruce; Houlihan, Terry; Jines, Mike; Kadzik, Peter; Karp, Joseph; Kass, Michael; Katz, Bruno; Kennedy, Thomas; Kinnear, Todd; Kirby, Michael; Kleinman, Joel; Kohnke, Ernie; Lane, Linda; Leslie, John; Mattes, Martin; Maxwell, Melissa; McManus, Randy; Merryman, Bryan; Michel, Sydne; Miller, Lisa; Mittelstaedt, Robert; Molland, Michael; Muller, Tim; Murphy, Tanya; Newton, Joel; Nissen, Neha; Noonan, David; Packard, Connie; Pallenik, Christine; Paul, Joe; Pedersen, Norman; Perlis, Mark; Peters, Mary Lou; Pickens, A.; Pickett, Donn; Raber, Stephen; Ransom, James; Reasoner, Barrett; Rice Kelly, Hugh; Richardson, Tony; Roppe, Laura; Russell, JoAnn; Ryland, Ron; Sanders, Richard; Sauntry, June Ann; Scafe, Jennifer; Schenkkan, Pete; Seltzer Caplan Team; Shohet, Jeffrey; Smith, Mike; Sottosanti, Martha; Spanos, Theodore; Springer, James; Starbird, Zackary; Steiner, Robert; Sturgeon, John; Taylor, Timothy; Tiffany, Joseph II; Tribble, Douglas; Varner, Carlton; Wall, Dan; Weaver, Michael; Wiegmann, Hack; Williams, Robert; Zdebski, Charles Subject: FW: Notice of Lodgment - Recent FERC Order Per our discussion this morning, here is the draft Notice that Tim Taylor prepared on the recent FERC order. Please send any comments directly to Tim by the close of business today. Thanks. ************** CONFIDENTIAL Luce, Forward, Hamilton & Scripps LLP 600 West Broadway Suite 2600 San Diego, CA 92101-3391 (619) 236-1414 The information contained in this electronic mail transmission is confidential and intended to be sent only to the stated recipient of the transmission. It may therefore be protected from unauthorized use or dissemination by the attorney-client and/or attorney work-product privileges. If you are not the intended recipient or the intended recipient's agent, you are hereby notified that any review, use, dissemination, distribution or copying of this communication is strictly prohibited. You are also asked to notify us immediately by telephone and to return the original document to us immediately by mail at the address above. Thank you in advance for your cooperation. -----Original Message----- From: Tim Taylor [mailto:[email protected]] Sent: Thursday, July 26, 2001 12:19 PM To: '[email protected]' Cc: Carlton Varner Subject: 51205385_1.WPD Here is the notice of lodgement you asked me to prepare during the confernece call just concluded. 51205385_1.WPD **************************************************************************** The contents of this e-mail message, including any attachments, are intended solely for the use of the person or entity to whom the e-mail was addressed. It contains information that may be protected by the attorney-client privilege, work-product doctrine, or other privileges, and may be restricted from disclosure by applicable state and federal law. If you are not the intended recipient of this message, be advised that any dissemination, distribution, or use of the contents of this message is strictly prohibited. If you received this e-mail message in error, please e-mail [email protected] and contact the sender by reply e-mail. Please also permanently delete all copies of the original e-mail and any attached documentation. Thank you. Sheppard, Mullin, Richter & Hampton LLP http://www.smrh.com **************************************************************************** <<51205385_1.WPD>> - VIS74.TIF

FYI, please let me know if you have any questions. Regards, Elizabeth. Elizabeth Serralheiro 15/10/99 14:06 To: John Novak/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert H George/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, George Frumkin/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, [email protected], Sami Arap/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rick Hopkinson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert C Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Andrea Gavino/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gisele S Braz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ana Cristina Santos/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mary Ann Oliveira/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cecilia Morellato/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jan Cooley/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: ESA LEGAL MANAGEMENT COMMITTEE MEETING - formerly Chief Counsel Meeting As per Randy Young's message below, please plan to attend to this weekly meeting that will be held every Tuesdays at 10:00 a.m. Brazil time/7:00 a.m. Houston time. The call-in numbers are as follow: Domestic dial-in (US callers): (800) 649-2862 International dial-in: (847) 413-3751 Confirmation#: 1082521 Host: Randy Young Please send me an updated report every Monday , until 5:00 p.m. and you can still use the same table that you have being using for the formerly Chief Cousenl Meeting. Thanks and regards, Elizabeth Serralheiro. (5511) 5503-1268 ---------------------- Forwarded by Elizabeth Serralheiro/ENRON_DEVELOPMENT on 15/10/99 16:43 --------------------------- Randy Young 15/10/99 16:13 To: Sara Shackleton/HOU/ECT@ECT cc: Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Elizabeth Serralheiro/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: S. Cone Trading Issues-Request Many thanks, Sara. I appreciate your including Andrea in these calls, and I am sure she will try to attend as many with you as schedule allows. In the meantime, the download once a week will certainly be helpful to me. Sounds like a great vacation. I am jealous. Beth, could you send Sara the call-in number and times for my weekly legal management committee meeting? Regards, Randy Sara Shackleton@ECT 10/15/99 01:42 PM To: Randy Young/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Re: S. Cone Trading Issues-Request Randy, I can certainly participate in your Tuesday morning meetings (and I can appreciate the time constraints under which Andrea is working!). I believe that Lynn will defer to Rick's participation. Please let me know if there is a call in number. I think that I will be able to keep you updated through your meetings. My need for meeting with Lynn and Brent stems from the fact that we are "offshore" Brazil and need to communicate regularly to keep the fires burning. Have a great weekend! I just got back from my vacation - I went to L.A. - and the weather was extraordinary. So was the food. I'm looking forward to Sao Paulo. Will see you soon. Sara Randy Young@ENRON_DEVELOPMENT 10/13/99 06:59 AM To: Sara Shackleton@ENRON_DEVELOPMENT cc: Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert H George/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: S. Cone Trading Issues-Request Sara, Given the deal pressure we expect in the last quarter of 99,especially in origination, I am trying to eliminate as many duplicative meetings as possible. Instead of having Andrea Bertone attend this weekly meeting, could you and Lynn Aven attend my legal staff meeting (along with Brent Hendry and Rick Hopkinson, who are already scheduled to attend) each week? They are held on Tuesdays at 10:00 am SP time. That way, we can get a direct report from you with a synthesized summary of the issues. If you need to consult with Andrea, Robert or me on an offline basis, you can let us know in the meeting, and we will arrange a separate call. I believe this would be more efficient. Thanks, and please let me know, Regards, Randy ---------------------- Forwarded by Randy Young/ENRON_DEVELOPMENT on 10/13/99 09:33 AM --------------------------- Andrea Bertone 10/13/99 08:33 AM To: Randy Young/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Re: S. Cone Trading Issues OK. I'll do it. Randy Young 10/12/99 02:17 PM To: Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: S. Cone Trading Issues Can you try to make this? Hopefully, it will not take up much time. I would want to get a summary download of issues from you in our weekly meetings. Thanks, ry ---------------------- Forwarded by Randy Young/ENRON_DEVELOPMENT on 10/12/99 02:17 PM --------------------------- Sara Shackleton@ECT 10/12/99 12:09 PM To: Lynn Aven/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rick Hopkinson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Mark E Taylor/HOU/ECT@ECT, Randy Young/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: S. Cone Trading Issues In an effort to establish regular communication on the progress of trading issues (primarily related legal and tax perspectives) in the S. Cone, Lynn and I have agreed to conference on Friday, October 15 at 9 am (Houston time) and weekly at that time. Would anyone else like to participate this Friday? If you are interested in participating on a weekly basis, are Fridays at 9 am (Houston time) convenient for you? My immediate concerns are financial trading issues. However, we can focus on all relevant issues as we so determine. I will create a "short list" to initiate discussion. Thanks. Sara

Jamie -- Thanks for the external view on legislation. I agree that most of the bills don't "get it right" - the hope is that the FERC can do that without too much legislative guidance (which of course would be wrong). Not sure that setting up a new federalism on this will ever work - not enough $$ to states to get them to overcome the political power of the utilities. Jim -----Original Message----- From: "Jamie Wimberly" <[email protected]>@ENRON [mailto:IMCEANOTES-+22Jamie+20Wimberly+22+20+3CBenjamin+2EWimberly+40Verizon+2Enet+3E+40ENRON@ENRON.com] Sent: Monday, August 27, 2001 2:34 PM To: Steffes, James D. Cc: [email protected] Subject: Response from Jamie Wimberly Jim: Thank you for your thoughtful response. Even if Enron is a "hot button" these days, we remain big fans of yours. In regard to your comments on the letter, I disagree with some of the assertions. First, I am fairly confident that no major piece of energy legislation will be passed this year. As you can see from the attached congressional update for the DE Task Force prepared by Bev Jones (former VP for Consolidated Natural Gas), Jimmy Hayes (former Member of Congress, and Nancy Etkin (former head of Natural Gas Vehicle Coalition), there is every indication that legislation is going to get bottled up in the Senate. I agree with the assessment. Moreover, the legislation that is being considered has almost nothing in it of direct relevance to "getting it right" in regard to restructuring. Without pressure, I expect no federal leadership on restructuring issues. While I do agree that commissions are usually a stalling tactic, both Ken and I are dismayed at the lack of focus, resources (i.e., DOE has devoted almost nothing of any sort to restructuring) and lack of qualified personnel directed at promoting more competition in the energy market. While you and I may have some idea of what is necessary (and that is a stretch for me -- given the complexity of the challenges), I can safely say the vast majority of folks have no idea what to do -- especially about the tricky jurisdictional questions involved. I personally think one way to craft a "new federalism" on restructuring is to bribe the states into more action. The federal government does this with education, housing, etc. Why not with restructuring? A carrot for those states which are moving forward, linked to definite metrics of progress and openness. I also strongly believed that state PUCS and federal agencies like FERC are being pushed to the limit about what they can accomplish given declining budgets and personnel. I further think that this slows the whole process down. Think about it -- telephone deregulation, a growing crisis in regard to water, record levels of mergers and acquisitions, historic changes in regard to natural gas and electric regulation -- all piled on top of each other for these folks. Good catch on the numbering of the recommendations cited in the letter. This has been corrected. I look forward to seeing you in September at the Board meeting. Jamie P.S. Speaking of the DE Task Force, have you and Bob Frank made a decision yet to participate? I hope you do, but I need to know as soon as possible. -----Original Message----- From: Steffes, James D. [mailto:[email protected]] Sent: Monday, August 27, 2001 8:25 AM To: Jamie Wimberly (E-mail) Cc: Shelk, John Subject: Letter from Leadership Council to Bush WH Jamie -- Thank you for keeping me in the loop on your activities. While I am always supportive of more public statements pushing competition, neither I nor Enron can sign on to the letter. First, I am concerned that having Enron sign on will distract from your messages. Enron is a "hot button" in DC and will change the proper focus. In addition, I would argue that the recommendation for a national commission is out of place with the current timing of FERC and Congressional action -- which is imminent -- while a commission would delay action on the Hill and at FERC, thus supporting the forces against competition. Let's not study this too much - we know what to do. Move away from the commission. Also, I'm not sure how providing federal grant money only to states that promote competition supports our efforts. Making GA pay for PA is a distraction from the main fights at FERC and on the Hill. Finally, I would guess that more funds to FERC and other agencies will only be used to increase enforcement against those in the industry. While Enron wants markets that work well, the core problem is that we haven't deregulated enough - not that markets aren't working. Also, I don't know where the recommendation numbers from the Bush/Cheney plan came from -- I think it was an earlier document -- there are no such numbers in the final printed version of the report that I have. If you want to talk, please let me know. Thanks, Jim ********************************************************************** 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 [email protected] 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. ********************************************************************** - DE leg update Aug 27.doc << File: DE leg update Aug 27.doc >>

-----Original Message----- From: Cannizaro, Brandi Z SITI-ITPSCA [mailto:[email protected]] Sent: Monday, January 21, 2002 7:41 AM To: Brad Jacobs (E-mail); Bryan Bonura (E-mail); Jay Thompson (E-mail); Jennifer Hessels (E-mail); John W Unger Jr. (E-mail); Thompson, Michelle; Patricia Moncada (E-mail); Ross Cannizaro (E-mail); Husser, Shanna; Hessels, Troy V Alliance Subject: FW: New Orleans This one made me kind of home sick ... but, was a good laugh :)) > > If you come to New Orleans, you better say it right. It's pronounced "New > > Orlenz". No one from here says "New Orleens" unless they are writing a > song > > or they want their ass kicked. > > > > It's hot. It's humid. It rains. Those are the only 3 weather patterns we > have > > here. > > > > 3 out of 4 people who live in New Orleans have a drinking problem. 3 out > of 7 > > have a gambling problem. > > > > No one eats healthy. Fried Batter is actually a menu item in some > > restaurants. > > > > The shopping sucks, unless you are buying: beer, hookers or antiques. > > > > The mall is not close to anywhere, and if you get there, they don't have > what > > you came to purchase. > > > > The amount of cash you spend on gasoline and cigarettes in a month exceeds > > your rent/house note. > > > > Giving directions to a non-local in New Orleans is a waste of time. Every > > street intersects with each other. No two streets run parallel to each > other. > > > > The West Bank is actually East of the city. It would take too long to > > explain. > > > > The roads in New Orleans have potholes that are large enough to hide an > > aircraft carrier. No one is trying to correct this problem. > > > > 1 out of 3 street names are impossible to pronounce unless you were born > in > > New Orleans, or you are a cajun. > > > > If the levee breaks, everyone here will die. No one seems worried about > this > > problem either. > > > > There are 365 days in the year. There are 414 parties/festivals in New > > Orleans. (That's just in a slow month). > > > > Then how come no one ever leaves? > > ####################################################### > > Louisiana Driving Rules: > > > > 1-A right lane construction closure is just a game to see how many people > can > > cut in line by passing you on the right as you sit in the left lane > waiting > > for the same drivers to squeeze their way back in before hitting the > orange > > construction barrels. > > > > 2-Turn signals will give away your next move. A real Louisiana driver > never > > uses them. Use of them in New Orleans may be illegal. > > > > 3-Under no circumstances should you leave a safe distance between you and > the > > car in front of you, or the space will be filled in by somebody else > putting > > you in an even more dangerous situation. > > > > 4-Crossing two or more lanes in a single lane-change is considered "going > > with the flow". > > > > 5-The faster you drive through a red light, the smaller the chance you > have > > of getting hit. > > > > 6-Never get in the way of an older car than needs extensive bodywork. > > > > ####################################################### > > SOUTHERN ADVICE > > > > If you are from the northern states and planning on visiting or moving to > the > > South, there are a few things you should know that will help you adapt to > the > > difference in lifestyles: > > > > If you run your car into a ditch, don't panic. Four men in a four-wheel > drive > > pickup truck with a tow chain will be along shortly. Don't try to help > them; > > just stay out of their way. This is what they live for. > > > > Don't be surprised to find movie rentals and bait in the same store. Don't > > buy food at this store. > > > > Remember, "y'all" is singular, "all y'all" is plural, and "all y'all's" is > > plural possessive. > > > > Get used to hearing 'You ain't from 'round here, 'er ya? > > > > The first Southern expression to creep into a transplanted Northerner's > > vocabulary is the adjective 'big ol' truck or 'big ol' boy. Most > Northerners > > begin their Southern-influenced dialect this way. All of them are in > denial > > about it. > > > > Be advised that 'He needed killin' is a valid defense here. > > > > If you hear a Southerner exclaim, "Hey, y'all, watch this," you should > stay > > out of the way. These are likely to be the last words he'll ever say. > > > > If there is the prediction of the slightest chance of even the smallest > > accumulation of snow, your presence is required at the local grocery > store. > > It doesn't matter whether you need anything or not. You just have > > to go there. > > > > Do not be surprised to find that 10-year-olds own their own shotguns, they > > are proficient marksmen, and their Mammas taught them how to aim. > > > > The North has sun-dried toe-mah-toes .. The South has 'mater samiches. > > > > The North has coffee houses .. The South has Waffle Houses. > > > > The North has dating services .. The South has family reunions. > > > > The North has switchblade knives .. The South has Lee Press-on Nails. > > > > The North has double last names .. The South has double first names. > > > > The North has Ted Kennedy .. The South has Jesse Helms. > > > > The North has an ambulance .. The South has an amalance. > > > > The North has Cream of Wheat .. The South has grits. > > > > The North has green salads .. The South has collard greens. > > > > The North has lobsters .. The South has crawdads. > > > > AND REMEMBER: If you do settle in the South and bear children, don't think > we > > will accept them as Southerners. After all, if the cat had kittens in the > > oven, we wouldn't call them biscuits. > > > > HAVE A GOOD DAY! Send this to four people that ain't related to ya, and I > > reckon your life will turn into a country music song 'fore you know it!

IN THE LEAD: Ranking Systems Gain Popularity but Have Many Staffers Riled By Carol Hymowitz 05/15/2001 The Wall Street Journal B1 (Copyright (c) 2001, Dow Jones & Company, Inc.) MANY CHIEF EXECUTIVES, from General Electric's Jack Welch to Enron's Jeffrey Skilling and Ford's Jacques Nasser, swear by the process. Many of their employees swear about it. It is known as the performance review ranking system and it requires managers to rank employees against each other on a bell curve. At GE, which has used the system for several years, this means that 20% of salaried, managerial and executive employees are rated outstanding each year, 70% "high-performance middle" and 10% in need of improvement. At Enron, where some have nicknamed the system "rank and yank," employees are put in one of five categories: 5% are identified as superior, 30% excellent, 30% strong, 20% satisfactory and 15% "needs improvement." And Ford, which began using rating systems last year, dictates that 10% of the auto maker's 18,000 managers will get A grades, 85% Bs and 5% Cs. (Initially, it asked for 10% Cs.) Those who receive a second consecutive C can be fired. Executives who aim to improve their staffs' performance and weed out deadwood say the grading systems force their managers to frankly assess and inform employees about their work, and chances for promotions. Otherwise, they say, managers tend to push along poor performers with deceptively inflated reviews. "Not removing that bottom 10% early in their careers is . . . a form of cruelty because inevitably a new leader will come along and take out that bottom 10% right away, leaving them, sometimes midway through their careers, stranded," GE Chairman Mr. Welch wrote in his annual letter to shareholders in February. THE GRADING SYSTEMS, however, are based on subjective judgments and often produce skewed results, critics say. Employees who belong to a particularly talented or productive unit, for example, may receive poorer grades than they would get in a less-talented unit. And while employees who are either outstanding or weak usually stand out, trying to strictly quantify each group can be a problem. "Once you start attaching a number or percentage to this group, they no longer fit the definition of exceptional," says Mary Jenkins, a Brighton, Mich., business consultant. At the same time, trying to distinguish among the vast majority of employees in the middle who rates a three and who rates a four, for example, may be impossible. "There's an assumption that a manager can know the precise performance level of an employee, when this sort of ranking is really a very subjective judgment that depends on many factors," says Tom Coens, an East Lansing, Mich., labor attorney and co-author with Ms. Jenkins of the book "Abolishing Performance Reviews." Among these factors are a manager's own biases about the qualities he values, and the fact that management is so often in transition. Also, ranking by a single grade tends to blur the range of talents and deficits within one person. Moreover, the grading systems pit employees against each other, undermining teams, which are often intentionally put together with varying talents in mind. In Internet chat rooms, scores of employees complain they've been graded unfairly, feel angry and unappreciated, and don't want to collaborate with co-workers with higher grades. The grading systems also have triggered employee lawsuits at Ford, Conoco and Microsoft. One class-action lawsuit filed against Ford in February alleges that the grading system discriminates against older workers. A second suit alleges it discriminates against older white males. DEFENDING THE SYSTEM as fair and necessary in a competitive industry, Anne Marie Gattari, a Ford spokeswoman, says that in the past employees "weren't given honest and frank feedback that they could use to improve themselves. It wasn't a good system for them as much as it wasn't a good system for the company." But some Ford employees in their 50s and older who received Cs believe the grading system is a way to get rid of them. "They've gotten excellent written evaluations for years and all of a sudden they get a C," says Michael Pitt, a Royal Oak, Mich., attorney who is representing nine Ford employees. Even employees who have received high grades question their value. Steve Carpinelli, a former research analyst at EDS, says he was graded in the top 1% of his peers, yet was laid off about 18 months ago when the company cut staff and dissolved his business unit. "It was confusing because no one ever clearly communicated what the ratings would be used for," he says. An EDS spokesman, noting that more than 13,000 jobs were cut in the reorganization, said, "Unfortunately, even for some good employees, there were not always other positions available." Defenders of grading systems acknowledge that their fairness and usefulness depend largely on how they are implemented. GE initially assigned employees one of five grades but streamlined that into three grades. "We had a system where 90% of employees felt demoralized," says Bill Conaty, senior vice president of human relations. GE tries to make sure the bulk of managers who fall in the middle ranks don't feel demoralized by rewarding many of them with stock options. "These people may not be highly promotable but they may be your best plant manager or your best design engineer," he says. --- E-mail comments to [email protected]. To see other recent columns, go to CareerJournal.com. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

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Content-Transfer-Encoding: quoted-printable Date: Thu, 22 Mar 2001 09:44:04 -0600 From: "Tracey Bradley" <[email protected]> To: "Paul Fox" <[email protected]> Cc: "Aryeh Fishman" <[email protected]>, "Andrea Settanni" <[email protected]>, "Deanna King" <[email protected]>, "Jeffrey Watkiss" <[email protected]>, "Justin Long" <[email protected]>, "Kimberly Curry" <[email protected]>, "Ronald Carroll" <[email protected]> Subject: Another Story About the ISO Report on Overcharging Mime-Version: 1.0 Content-Type: text/plain; charset=US-ASCII Content-Disposition: inline Apparently the ISO gave the LA Times a copy of the study being filed with FERC today. The LA Times published it. Thursday March 22 6:05 AM ET Report: Calif Overcharged for Power By DON THOMPSON, Associated Press Writer SACRAMENTO, Calif. (AP) - Electricity wholesalers overcharged California $5.5 billion over the past 10 months, according to a report by managers of the state's power grid. The five companies, among other things, frequently offered electricity at prices double what it cost them to produce, concludes the California Independent System Operator (news - web sites) study, which was published Thursday in the Los Angeles Times. ``All overcharged, but some excessively and some by moderate amounts,'' said Anjali Sheffrin, the ISO's director of market analysis. The Times said the ISO planned to file the study with federal regulators Thursday and are demanding that the money be paid back. The companies denied the allegations, adding they expect the Federal Energy Regulatory Commission (news - web sites) will determine their prices were justified. The commission has recently stepped up its scrutiny of power companies' behavior during California's power crisis, asking suppliers to justify $124 million in sales during the first two months of the year or refund the money. Critics claim thousands of additional questionable sales are not being challenged. The ISO study alleges the wholesalers manipulated the market by bidding at excessive prices, effectively withholding supplies, or by not bidding at all when they had generation capability available. California has been spending about $45 million a day - $4.2 billion since January - to purchase power for Pacific Gas and Electric Co. (news - web sites) and Southern California Edison (news - web sites). Both utilities, the state's largest, have been cut off by electricity wholesalers because their credit is almost worthless. State Controller Kathleen Connell said Wednesday that the state's power-buying is gutting its budget surplus. Since the state started making emergency power buys, the surplus has fallen from $8.5 billion to about $3.2 billion, she said. A federal judge issued a preliminary injunction Wednesday ordering a major electricity wholesaler, Reliant Energy Services, to continue selling to California despite its fear that it will not be paid. U.S. District Judge Frank C. Damrell Jr. said Californians were at risk of irreparable harm if Reliant stopped selling power to the ISO, which buys it at the last minute on behalf of utilities to bolster supplies and try to fend off rolling blackouts. Such blackouts hit the state twice this week. On Wednesday, cooling temperatures and the completion of repairs at several power plants allowed the state to avoid blackouts. Standard & Poor's has put the state on a credit watch due to its power purchases and chastised Gov. Gray Davis (news - web sites), the Legislature and state regulators for not taking more aggressive steps to make sure the utilities can pay their bills. Edison and PG&E say they are nearly $14 billion in debt due to soaring wholesale power costs. The state's deregulation law blocks them from recovering the costs from customers. Connell ordered an audit of the state's power-buying, saying Davis is withholding key financial information from her office and the Legislature. She said she would refuse to transfer $5.6 billion into a ``rainy day fund'' she said was set up to impress Wall Street as the state prepares to issue $10 billion in revenue bonds to cover its power buys. Transferring the money would leave the state general fund $2.4 billion in debt, Connell said. She called the scope of the proposed transfer unprecedented and said it amounted to a ``shell game'' that disguises the power purchases' effect on the state budget. Sandy Harrison, spokesman for the state Department of Finance, and Keely Bosler, of the Legislative Analyst's Office, said such transfers are routine and required by law. They put the state's budget surplus at $5.6 billion. ``The law says she has to do it. The law does not give her the power to demand that kind of audit information,'' Harrison said. Harrison said the state's budget isn't in danger because it will be repaid with the revenue bonds. Connell's criticism of Davis, a fellow Democrat, won support from Assembly Republicans and Secretary of State Bill Jones, a Republican who may challenge Davis next year. Jones said he wants to announce his own plan to solve the state's energy woes, but can't unless Davis releases more financial details. Davis spokesman Steve Maviglio dismissed the criticism. ``Political grandstanding doesn't generate one more kilowatt of energy for California in this time of emergency,'' he said. Maviglio said the administration has released the financial information it can without jeopardizing negotiations for long-term power contracts with wholesalers.

---------------------- Forwarded by Carla Hoffman/PDX/ECT on 10/30/2000 11:17 AM --------------------------- Enron Capital & Trade Resources Corp. From: "Pergher, Gunther" <[email protected]> 10/30/2000 06:09 AM To: undisclosed-recipients:; cc: Subject: DJ Cal-ISO Price Caps Prompt Concern Among Mkt Watchers 13:15 GMT 30 October 2000 =DJ Cal-ISO Price Caps Prompt Concern Among Mkt Watchers (This article was originally published Friday) By Jessica Berthold OF DOW JONES NEWSWIRES LOS ANGELES (Dow Jones)--Market watchers and some California Independent System Operator board members voiced concerns about Thursday's ISO vote to impose hourly wholesale power price caps. The vote's opponents say the caps may inhibit forward trading and could affect the construction of new generation in the state. They also say the vote should have waited until after the Federal Energy Regulatory Commission releases its report on California's electricity woes Wednesday. The price caps, effective Nov. 3 or as soon thereafter as possible, will be set monthly and will vary based on ISO forecasted load, monthly gas prices and unit efficiency. The ISO will multiply the average closing price for natural gas over the last three days of NYMEX Henry Hub futures contracts by a fixed measure of generation efficiency at various load levels. For example, if the ISO's forecasted load is 25,001-30,000, the fixed efficiency rate of 14,175 will be multiplied by the natural gas price - say $6/mmBTU - to yield a rounded price cap of $90/MWH. Market sources, who asked not to be named, said that although the ISO filed a proposal with FERC Oct. 20 requiring utilities to boost forward market purchases, the forward market was reacting negatively Friday to the price caps. The ISO appeared to be encouraging forward contracts with its FERC filing but its latest vote is an about face, traders said. "Traders are telling us they are pulling away from forward positions because they don't know what's going on," said California Power Exchange spokesman Jesus Arredondo. "On Monday to Thursday we traded 850 contracts and yesterday we traded 175. Today's there's nothing. There's been one offer at $59 per megawatt hour for five years and no one is touching it." CalPX, which operates the state's day-ahead and block forward market, plans to file a formal response to the ISO proposal with FERC. Market sources said CalPX wasn't in support of the proposal. Market watchers also said that if California ever needs to buy power out of market, those prices will be higher than the cap. Over the summer, the ISO spent a record $101 million on last-minute out-of-state power purchases last summer. "Those inflated out-of-market purchases are what drove the market's high prices this summer," said one source close to the issue. California wholesale electricity prices hit unprecedented levels last summer, and customers in San Diego's fully deregulated market saw their bills triple as a result. ISO board member Mike Florio, who wrote the price cap proposal, stressed that it was a temporary measure that would be terminated as soon as broader market reforms were in place. "This is a three-to-four month proposal and not something we are going to deal with going into the peak period," Florio said. Generators suggested that capping the market might be a disincentive for those looking to build new generation in the state, and that the ISO proposal was untimely given FERC's Nov. 1 release of a report on California's electricity market problems. "The ISO said in its (Oct. 20) filing that FERC needs to be that venue that the wholesale market deals with and we agree with that," said Duke Energy (DUK) spokesman Tom Williams. Several ISO members who voted against the proposal also cited FERC's Nov. 1 report as presenting a possible conflict. "What do I do if FERC comes out with an order contrary (to the caps) on Nov. 1?" said ISO President Terry Winter, who voted against the proposal. Many board members didn't expect to vote on price caps at Thursday's meeting, since a vote on broader market redesign proposals was postponed until November. "This is the wrong time to vote on this if we are not doing comprehensive market redesign today," said board member Barbara Barkovich. Consumer group The Utility Reform Network supported the proposal, saying that action was needed to control the market immediately. Proposal sponsor Florio is a member of TURN. "The ISO has the responsibility to deal with what it can without waiting for FERC. FERC needs a signal that the ISO is serious," said TURN president Nettie Hoge. Hoge also said that she was wary of arguments that the building of generation will be stifled due to the caps, because the caps "are well within a reasonable level." "It's clear the market isn't functioning," Hoge said. "There's going to be lots of debate about going outside the market versus command and control. I don't think the discussion is even in that arena. We have a crisis. Those who say it will get better on its own are living in a fantasy." -By Jessica Berthold, Dow Jones Newswires; 323-658-3872; [email protected] (END) Dow Jones Newswires 10-30-00 0815EST Copyright (c) 1998, Dow Jones & Company Inc G_nther A. Pergher Senior Analyst Dow Jones & Company Inc. Tel. 609.520.7067 Fax. 609.452.3531 The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. <<Gunther Pergher (E-mail).vcf>> - Gunther Pergher (E-mail).vcf

Looks like this won't be over soon. ---------------------- Forwarded by Rebecca W Cantrell/HOU/ECT on 06/12/2001 10:50 AM --------------------------- "Tracey Bradley" <[email protected]> on 06/12/2001 08:09:43 AM To: <[email protected]>, "Aryeh Fishman" <[email protected]>, "Andrea Settanni" <[email protected]>, "Charles Shoneman" <[email protected]>, "Kimberly Curry" <[email protected]>, "Paul Fox" <[email protected]>, "Ronald Carroll" <[email protected]>, "Randall Rich" <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]> cc: "Duscha Brown" <[email protected]> Subject: FERC expands El Paso Pipeline hearing on Calif A copy of FERC's order reopening the investigation into affiliate abuse is attached. Monday June 11, 10:08 pm Eastern Time FERC expands El Paso Pipeline hearing on Calif (UPDATE: adds NYMEX closing price) By Julie Vorman WASHINGTON, June 11 (Reuters) - U.S. regulators on Monday expanded a legal proceeding into whether El Paso Corp (NYSE:EPG - news) affiliates improperly shared information to boost the price of natural gas deliveries into energy-starved California. The Federal Energy Regulatory Commission (FERC) reversed an earlier decision and granted a request by the California Public Utilities Commission for a hearing on the activities of El Paso Pipeline, El Paso Merchant Energy-Gas L.P., and Mojave Pipeline Co. All are involved in shipping natural gas into California, where utilities depend on the fuel to run electricity generating plants. The California Public Utilities Commission alleged that the El Paso affiliates' three shipping contracts for 1,220 million cubic feet per day of guaranteed capacity to California were rigged to boost prices during much of last year. Utilities and state regulators claim the high prices cost Californians an extra $3.7 billion, a figure disputed by El Paso. AFFILIATE ABUSE AT ISSUE FERC, which regulates interstate pipelines and electricity markets, had said in March that it found no sign of what is known in the industry as affiliate abuse. The agency has rules requiring arms-length deals within a corporate family. ``The commission now sets for hearing the issue of whether El Paso Pipeline and/or El Paso Merchant engaged in affiliate abuse or violated the affiliate standards in bidding for or awarding the El Paso contracts, including the transportation discount granted by Mojave,'' FERC said in the Monday order. The new hearing will become part of an ongoing case in which FERC Administrative Law Judge Curtis Wagner is trying to determine if El Paso deliberately curbed gas shipments to boost prices. Although California prices eased in recent days, they have soared as much as 100 times higher than other states. El Paso has denied any wrongdoing. ``The bottom line is that FERC had all the evidence before them when they made their initial decision (in March) that there was no affiliate abuse. And that evidence has not changed,'' said Norma Dunn, a spokeswoman for El Paso. ``We're very confident that they will rule in the same fashion again,'' she added. In late March, FERC ordered the first El Paso proceeding to determine if the company exercised market power to drive up the price of natural gas in California. But FERC also rejected at that time allegations that El Paso Pipeline had improperly favored its affiliates during the so-called ``open season'' when pipelines accept bids for contract deliveries. The new FERC action came after California regulators alleged that El Paso Merchant received secret information from Mojave during the open season. ``The commission now believes these allegations raise factual issues that are best resolved in an evidentiary hearing,'' the FERC order said. Separately, Judge Wagner asked FERC for ``guidance'' on whether he should gather evidence on possible violations of the affiliate standards, which could have influenced prices. PUNISHMENT REMAINS UNCLEAR On the New York Merchantile Exchange (NYMEX), Hub gas prices for July rallied 25.7 cents, or almost seven percent, to close at $4.179 per million British thermal units (mmBtu) on Monday. Under the FERC order, Judge Wagner has until June 21 to set a date for a hearing on the new issue. The agency also said it was premature to identify what punishment is available if Judge Wagner determines that El Paso improperly exercised market power. The expanded proceeding means that a Sept. 4 deadline for a decision by Judge Wagner has been suspended, FERC said. The FERC order was endorsed by new FERC commissioner Pat Wood, a former Texas utilities regulator and confidant of President George W. Bush. Wood joined FERC earlier this month and is widely rumored to be in line to head the agency. Current FERC chairman, Curtis Hebert, a Mississippi Republican, took over the leadership role in January at the insistence of then-Senate Majority Leader Trent Lott. In a concurring opinion filed with the new FERC order, Wood wrote that the agency must ``act expeditiously'' on complaints. The El Paso allegations were first raised in April 2000 but FERC did not move on the case until nearly one year later. ``In overseeing competitive energy markets as a joint effort with our colleagues at state commissions, it is critical that the FERC be seen as a watchful and vigilant partner,'' Wood wrote. ``Expeditious referral and action on filed complaints is a central tool in our market oversight toolbox.'' Hebert also wrote a concurring opinion, in which he said he was committed to a speedy resolution of the case. - rp00-241-000.pdf

Ken needs to be aware of this -- has he had any conversations w/ Bailey? ---------------------- Forwarded by Karen Denne/Corp/Enron on 05/01/2001 05:22 PM --------------------------- Susan J Mara 05/01/2001 03:25 PM To: Mark Palmer/Corp/Enron@ENRON, Richard Shapiro/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, Janel Guerrero/Corp/Enron@Enron, Karen Denne/Corp/Enron@ENRON, Sandra McCubbin/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT cc: Subject: OpED Editorial SacBee Lauding Williams CHairman's New Position Favoring Caps I got this from one of my Williams counterparts. Daniel Weintraub: An energy trader says it's time to limit profits (Published May 1, 2001) In a sea of angry finger-pointing, name-calling and ridicule, Keith Bailey stands out as an island of calm, a lonely voice of reason who understands that a company's long-term self-interest is about more than how much money it can make today. Most Californians probably have never heard of Bailey, a Kansas City native and chief executive officer of Tulsa-based Williams Cos. -- a private energy trader that has profited handsomely from the state's recent miseries. But Golden Staters from Gov. Gray Davis on down ought to embrace this Oklahoma resident. He might be the man who saves our future. Bailey is proposing that federal electricity regulators place temporary caps on the profits that he and his competitors may earn between now and fall 2002, when supply and demand will be closer to balance and sanity might return to the West's energy market. His rationale is this: To save California's private electricity market, new power plants are desperately needed. But not enough of those plants will be built if generators are not confident they will be paid for the product they already are providing. Californians, though, don't want to promise payment without knowing they will be able to afford the bill. Short-term caps on profits, Bailey believes, are the best way to ease the state's fears, get everybody paid and move on to a system that works -- for suppliers and customers. "One of the things we are hoping to do with our proposal is create something that California can look at and say, 'So long as prices are determined on this basis, we're prepared to pay,' " Bailey said in an interview. "This is a mechanism that lets the state say, 'We're not signing a blank check. We don't know what the price is going to be, but we do know how it will be determined.' " Bailey's proposal is different from the limited price caps approved last week by the Federal Energy Regulatory Commission -- and far better for California. The federal caps would come with all sorts of strings attached, would kick in only during emergencies and would be focused on prices, not profits. Bailey is proposing that all power sold from now through summer 2002 be priced at the cost of producing it, plus a profit of 15 percent. That's more than a regulated utility would make but less than most private companies seek, and far less than electricity providers have been earning of late. Cynics might note that Bailey is proposing caps only after his company has squeezed all it can from California. The firm reported last week that profits doubled in the first quarter of 2001 over a year ago, with pretax income from its energy services nearly tripling, to $600 million. Much of the 4,000 megawatts of electricity that Williams controls in California is already committed in long-term contracts -- so Bailey has relatively little to lose if what remains can only be sold at controlled prices. But here is at least one measure of Bailey's sincerity: His company still is owed $252 million for electricity it has provided California. And he's not insisting that the debt be paid before his proposed profit caps take effect, or even as part of the deal. "Clearly there is a past that has to be dealt with," he said. "Whether that ultimately gets dealt with in bankruptcy court or negotiations with the parties, it will sort itself out one way or another. Perhaps if we find prices that work going forward, that could be used as a framework." Bailey, an engineer by training, says no one should mistake his proposal for a lack of confidence in free markets. He still firmly believes that a deregulated energy market would be best for California and the rest of the West in the long term. He just wants to make sure there is a long term. Bailey is watching, and listening, to California. He hears talk of seizing power plants, of turning to a public power system. He describes these ideas as Draconian and says they would not solve the problem. But he also knows there is a limit to what Californians -- and their elected leaders -- can take. "I recognize we live in a democracy, and lots of things could happen," he said. What he is proposing, in effect, is a safety valve. He wants to limit the market in order to save it. "This is an extraordinary situation," Bailey said. "We need to help create some breathing room. ... We all have to work together, and this is the right thing to do." Bailey's proposal, made at a conference of energy producers and traders in Oklahoma last week, was almost lost amid all the focus on the price caps approved in Washington. But there is still time to give the idea the attention it deserves. Properly nourished, it could be the breakthrough that solves this crisis. Davis and others in California should seize the moment. Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854

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Bernard, My coordinates: Vincent Kaminski Managing Director - Research Enron Corp. 1400 Smith Street Room EB1962 Houston, TX 77002-7361 Phone: (713) 853 3848 (713) 410 5396 (cell) Fax : (713) 646 2503 E-mail: [email protected] Yes, we are going into a very interesting summer both here and in the UK. Vince "Murphy, Bernard" <[email protected]> on 03/27/2001 01:23:04 AM To: "'[email protected]'" <[email protected]> cc: Subject: RE: Thesis on Electricity Price Jump-Diffusions Hi Vince, Can you e-mail me your mailing address in Houston and I will send you a hard copy of the above today. Apologies for delay, but I wanted to ensure that Les Clewlow had received his copy in Sydney before distributing any other copies. Incidentally, today (March 27th) is a red letter day in the UK as the NETA / new electricity trading arrangements have gone 'live'. Should be interesting to observe the development of the paper market in the coming months - you're no doubt aware that IPE have just launched an electricity futures contract. Regards Bernard -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: 01 March 2001 15:37 To: Murphy, Bernard Cc: [email protected]; [email protected] Subject: RE: 1997 Risk paper on Pricing of Electricity Derivatives Bernard, Yes, I can read a DVI file. You can also cc my home address: [email protected]. I shall try to send you an answer to your question on weekend. Vince "Murphy, Bernard" <[email protected]> on 03/01/2001 09:18:58 AM To: "'[email protected]'" <[email protected]> cc: Subject: RE: 1997 Risk paper on Pricing of Electricity Derivatives Vince, I can send you a Scientific Word DVI file (at the weekend) if you can read SCientific Word files ? The dissertation hasn't been reviewed by Les or the External yet - although its been at FORC for 2 months. I think that the Empirical Chapter is probably the one which would be of most relevance to both our company's businesses - although I ultimately didn't have the time to 'explicitly' price the jump risk-premium which I conjectured is possibly implicit in the prices of exchange-traded electricity futures-options - rather I developed an implicit estimation procedure which will enable a rough assessment (with a little bit of further work, but not too much) be made of the price of jump risk in wholesale power markets. In other words, I assumed spot jump-risk to be undiversifiable, and essentially devoted 2 Theoretical Chapters to : 1) proving that a jump-diffusion trading model is "incomplete" (synthesising the securities markets framework with martingale representation theory) - note that I did not assume that markets could be dynamically completed with 'term structure' securities as in the HJM w/ jumps papers of Shirakawa and Das and; 2) deriving an explicit risk-adjustment process for 'implementing' the price of jump-risk using a jump-diffusion marginal indirect utility of wealth process (ie. a jump-augmented production economy approach in the spirit of CIR, Bates, Ahn & Thompson). Incidentally, I would be keen to find out if you or any of your team done much work on real-asset valuations in a spark-spread option-valuation framework ? I'm about to start a project evaluation of embedded optionality, and have a dilemna whether I should model the spot or forward gas / power price processes. With the former, I can model mean-reversion and jumps explicitly (obviously, important for capturing the optionality of out-of-the-money plant, which might otherwise be ignored in a pure-diffusion framework) but am not maximising the informational content of the available market data (that is, assuming there was a long-term market forward curve for electricity); whereas in the latter the driftless forward supposition means that I have to capture mean-reversion via the futures volatility function, and jumps are less easy to calibrate. Any suggestions ? Regards Bernard -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: 01 March 2001 14:54 To: Murphy, Bernard Cc: [email protected]; [email protected] Subject: Re: 1997 Risk paper on Pricing of Electricity Derivatives Bernard, I am forwarding your message to my assistant and she will mail you a reprint. I would be glad to take a look at your dissertation. Is it available as a publication, working paper? Vince "Murphy, Bernard" <[email protected]> on 03/01/2001 02:17:39 AM To: "'[email protected]'" <[email protected]> cc: Subject: 1997 Risk paper on Pricing of Electricity Derivatives Hello Vince, My name is Bernard Murphy - I received your e-mail address from Les Clewlow, who was my PhD supervisor at the Financia Options Research Centre at Warwick Business School. I've just finished my PhD on Electricity Price Jump Diffusions : A Theoretical and Empirical Study in Incomplete Markets - hence my interest in electricity price modelling and derivative pricing. I was looking to get hold of a copy of your 1997 paper, which has recently come to my attention : "The Challenge of Pricing & Risk-Managing Electricity Derivatives", The US POwer Market, Risk Publications, pp. 149-171. and Les suggested that I contact you directly (Les is travelling at present and doesn't have an electronic copy available) to request an e-copy. Incidentally, I am Lecturer in Finance / Financial Mathematics at University of Limerick (Ireland) and have taken a year out to work for Caminus UK, where I am working on introducing and developing a markets-based approach (spark-spread) to real asset valuations in the UK power industry. Thanks in advancve Bernard Murphy

fyi. ---------------------- Forwarded by Lloyd Will/HOU/ECT on 03/05/2001 07:28 AM --------------------------- "will lloyd" <[email protected]> on 03/04/2001 08:12:37 PM To: <[email protected]> cc: Subject: meam Delta Development February, 1999 Issue Meam dispute reflects more issues than money BY NANCY cotten HIRST Contributing Editor, Delta Business Journal On the surface, the dispute between the Municipal Energy Agency of Mississippi (MEAM) and the Clarksdale/Yazoo City alliance appears to be about money and contracts. Yazoo City and Clarksdale say they are pulling out of the eight-city energy-supply association because they can provide power to their cities less expensively on their own. MEAM says that they have the right to do this, but only in accordance with the original MEAM contract, which specifies that an entity can only withdraw from the agency on condition of five years
, written notice. This provision is typical of this type contract and lends a degree of stability to a coalition of political bodies. Complicating the matter is the fact the MEAM has financed the upgrading of the generating facilities at Yazoo City and Clarksdale. The total project upgraded three frame-five gas turbines and added three waste heat recovery steam generators and cost in excess of $10 million. Part of this project was paid for by MEAM revenues and the rest by a $5 million 1994 bond issue. The Greenwood generating facility was also part of this project, but Greenwood elected to pay out of other resources rather than participate in the bond issue. This leaves seven cities responsible for the bond issue and dependent on the generating capacity of the two cities for a portion of their electrical power supply. MEAM also purchases power from other resources to supplement the generating capacity of Yazoo City, Clarksdale and Greenwood. SEPA, Cajun Electric Cooperative, Oklahoma Gas and Electric and Entergy Services, Inc. are among recent suppliers with Entergy holding the largest contracts. The exit of Yazoo City and Clarksdale from MEAM would hurt the organization not only in loss of generating power but also in the loss of volume purchasing power from other supplies. This type loss is one of the reasons for a five-year notice in the original contract. The other cities involved in MEAM would be given time to deal with the adverse impact. Clarksdale and Yazoo City, however, say that MEAM has broken its contract with them. The two cities plan to form their own alliance to take advantage of the savings that they perceive to be available in the deregulated wholesale energy market. They also plan to buy out the bond issue obligation from MEAM and finance it through revenue bond issues of their own. At this point the story breaks down into two other issues. One is a very legitimate difference in style of operation and management between MEAM and the two cities. The other is a rather obvious problem with power, personality and disgruntlement. Neil Davis, General Manager for MEAM, admits to being conservative in his management style. "I
,m the first to say we
,re not where we
,d like to be costwise," Davis says, "but we know that we
,ve controlled and lowered costs over the years. We
,re very competitive and have the lowest costs in the area. "Entergy views MEAM as a good wholesale customer and they do all they can to work with us. We have a good track record with them. We are moving cautiously. We
,re not going to abandon a good relationship unless we are sure it will improve our circumstances. We look at the end of the year, not each transaction," Davis continues. "Entergy provides a load-following service that keeps the load balanced and has energy follow demand on an instantaneous basis. Our facilities are not equipped to do this. We know Entergy can and will do this and we don
,t have the track record with other suppliers." Bob Priest, General Manager of the Yazoo City Public Service Commission, is much more daring in his approach. "You have to take a risk from time to time," he says. "MEAM hasn
,t changed in the last ten years, and the utility industry has changed drastically." Public Service and other officials from both Clarksdale and Yazoo City are furious about the new contract with ESI. Both cities would prefer not to do business with Entergy at all, an attitude that has little or nothing to do with MEAM. Both parties admit that there have been divisive issues for three or four years, but the recent contract seems to have been the straw that broke the camel
,s back. Sources who prefer to remain unnamed say that there are other problems. Various people are angry at staff for various personal reason. Others see a conflict of interest in Public Service professionals being on the Board, which was designed as a citizen review entity. They say it puts them in the position of being able to review their own performance. Comments from people from the unhappy cities, including their attorney
,s presentation to the Board, contain thinly veiled accusations of wrongdoing that border on character assassination. As accusations and recriminations fly, many in the Delta are disappointed in a situation that is likely to bring harm to all eight cities. If the cities do successfully pull out of MEAM, it will be interesting to see if, as in Aesop
,s fable, the hare or the tortoise wins the race. DBJ

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Hi Folks, I know some of you have roster submission deadlines within the hour and I wanted to throw this out. KTCK 1310 in Dallas has confirmed to Footballguys.com that Dallas QB Anthony Wright may require surgery on his knee. It's apparently not responding to treatment as they'd hoped. If it happens, this would put the starting job in the hands of Clint Stoerner or Ryan Leaf... If that's the case, I'd have to think this can't be good for anybody. Emmitt Smith has a chance with Wright throwing the ball downfield but with another QB (likely to struggle) I'd think you have to downgrade all the Cowboys. More as we hear it. Joe Thanks to Footballguy Gary Slinkard for pointing me to this one. /**/**/**/**/**/**/**/**/**/**/**/**/**/**/**/**/ If you want to know more about the QB situation than anyone can possibly want to know, here's a detailed article from Mickey Spagnola: Entire story: http://www.dallascowboys.com/cgi-bin/Cowboys/news_mickeys.jsp On one hand, the Cowboys have "The Ryan Package." On the other hand, they have fluid on Anthony Wright's knee. Could the two be fixin' to collide this week? Well, let's try to answer that, and a whole lot more, as we catch up with these 1-4 Cowboys who reconvened here at The Ranch on Monday following this past weekend's inactivity. Yes, Anthony Wright did practice on Monday after missing last week's only two practices with fluid on his knee. He seemed to throw well. But he didn't have to run around much, and after practice this excess fluid on Wright's right knee that was surgically reconstructed in 1997 seemed to subdue his mood. "Some of the swelling is gone," said Wright, seemingly still concerned with the knee he irritated in the Monday night victory over Washington. But that reduced swelling did not seem to placate Wright. He seemed worried. An MRI last Thursday suggested there was no structural damage. Wright said he was to receive another exam by the doctors on Tuesday, which should become the tell-tale check for this week. As for head coach Dave Campo, he reaffirmed his belief in Wright as the starter, and along with the Cowboys trainers, seemed confident Wright would be able to start Sunday against the Arizona Cardinals at Texas Stadium. If the swelling does not subside, in all likelihood the fluid would be drained from Wright's knee before the game. "He's the starter, and we'll continue to get Ryan Leaf extra work, and see where we're at, at then end of the week," Campo said. "(Leaf) is No. 3 right now, but we'll see." That would seem to be the crack in the door, suggesting the Cowboys would rather go with Ryan Leaf as the starter if the knee gets in Wright's way this week rather than Clint Stoerner. Say what you want, that's the difference between 18 NFL starts and no NFL starts. "They want to put a package together that I'm confident in," said Leaf, who took the first team snaps in last week's two practices. "The Ryan package I guess. Right now, it's getting bigger and bigger every day. They certainly seem to want me out there when I'm ready." And it certainly seems Leaf is doing all he can to get ready as soon as possible. He comes here early. He leaves late. He works on his off day, and even though he did take this past weekend off, the fourth-year quarterback at least took his playbook with him. "I'm just eating it alive," Leaf said of his extra work. "I took my playbook home," as he talked about how he and his wife, Nicole, would go through the playbook together, and that he'll live in a hotel until she gets them moved into an apartment here in Dallas. There is no time to waste. So then, knowing there is a Ryan Package, and knowing Wright's knee isn't right just yet, would Leaf be ready to start on Sunday against the Cards if Wright wasn't? "That's probably asking a lot," Leaf said. "Clint knows the offense well, and would deserve to start. But I'll be as ready as I can." And if asked by the coaching staff if he was ready to start, Leaf said, "I probably couldn't do as many things, but I'll never say no." And for a guy who hasn't experienced much success in the league, at least not what you'd have expected from the second pick in the 1998 draft, at least that's a good sign. He hasn't lost any confidence in himself.... Speaking of his first three seasons in the league, and a shoulder injury robbed Leaf of his 1999 season in San Diego, he's thrown 13 touchdown passes and been intercepted 33 times while starting 18 of 21 games. The guy taken in front of him in that 1998 draft, Peyton Manning, threw 52 touchdown passes and was intercepted 43 times while starting 32 of 32 games his first two seasons. And bringing it closer to home, Troy Aikman threw 20 touchdown passes and was intercepted 36 times his first two seasons.... Knowing what you knew about the Cowboys defense going into the season, would you have given that unit a snowball's chance in hell of having a higher NFL ranking than say Tampa Bay, Tennessee and the New York Football Giants going into Monday's night game to complete Week 6 of play? Get out of here. But it says right here in these NFL rankings the Dallas Cowboys are 13th, giving up 309.6 yards a game. And it says Tampa Bay is 14th, the Giants 15th going into their Monday night game with Philadelphia, Denver 16th and Jacksonville 17th. Tennessee? Good gosh, the Titans are 26th. Come on, those are teams littered with Pro Bowl defenders. Bet they aren't starting a fourth-round pick and a sixth-rounder at cornerbacks. And remember, that's Randall Godfrey starting at middle linebacker for the league's 26th-ranked defense, not Dat Nguyen. But then the Cowboys did get to play Washington.... /**/**/**/**/**/**/**/**/**/**/**/**/**/**/**/**/ Bryant Analytics, Inc. All Rights Reserved 1999-2001 To unsubscribe from this group, send an email to: [email protected] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/

Here's a first-crack at a letter for the CEOs to sign. I couldn't open Microsoft Word, so I apologize it's in the body of this email. Once we circulate a draft and get a version people are comfortable with, I'd recommend the following actions (but not by Enron): * send the letter to the governor and all members of the Legislature * run the letter as a full-page ad in key newspapers * advance the story to the media for earned coverage (possible editorial boards w/ several CEOs -- not Enron) We could have an effort in both Northern and Southern California -- w/ different CEOs to emphasize the bipartisanship and diversity of support for the solution. This media effort should target broadcast, as well. Edit away! ****************************************************************************** *************************************************** An open letter to Governor Davis and members of the Legislature: California's energy crisis has persisted and worsened over the past 12 months. We have already experienced blackouts, and with summer fast approaching, unless something is done immediately, the worst is yet to come. The North American Electric Reliability Council released a report last week that said California is expected to experience more than 260 hours of blackouts this summer -- that's ten days without power. California's economy cannot afford to grind to a halt because we have no power. Two of the state's largest companies have been thrown into financial turmoil. Pacific Gas & Electric has already declared bankruptcy, and Southern California Edison is on the brink. With California spending more than $____ a day on power and depleting cash reserves, the State's credit rating has been downgraded -- only Louisiana has a lower rating. While there has been much talk of potential solutions, none have advanced. There is too much at risk to delay another day. Therefore, we, the undersigned, are proposing a comprehensive five-step solution to solve California's short- and long-term energy crisis that includes the following: 1. Decrease demand -- There is no time to build power plants or get additional generation on-line in time for this summer. Therefore, the only option to reduce the impact of an electricity shortage this summer is to reduce consumption. This can be accomplished in several ways: Real-time pricing -- prices should reflect the cost of producing electricity, which varies throughout the day. When demand is at a peak, prices are high; when demand drops, so do prices. This will give customers a financial incentive to conserve and take simple actions, like turning the thermostat up two degrees. Demand buy-down programs -- If a customer is willing to pay for kilowatts used, he/she ought to be compensated for kilowatts saved. NEED TO SAY WHO WILL PAY FOR THIS 2. Increase supply -- The Governor has taken an important first step by using his executive powers to streamline power plant siting. While the state currently has approved 13 power plants totaling 8,512 megawatts, it's not enough. California ought to be the most attractive place to build power plants, transmission lines and pipelines; instead, it's the least. There is a backlog of turbines for power plant development, yet of the 1,000 backlogged, only 24 are earmarked for California because the state has sent an "anywhere but here" message to investors. The state's political leaders must reject action that discourages investment, including: * Legislation that would impose a "windfall profits" tax on power sold in California and make it a felony to sell power at a price that the state finds unreasonable. * Continued calls for price caps in wholesale power market -- caps only create shortages and fail to reduce prices. * Investigations into allegations that suppliers manipulated power prices. 3. Make the utilities creditworthy -- Under California law, utilities are forced to charge frozen rates, but they must buy power at higher wholesale prices. The utilities' inability to recover their costs has forced PG&E into bankruptcy and threatens Southern California Edison's solvency. The solution to restoring the utilities' creditworthiness is to set rates that cover the utilities' past debts and future costs -- and then give customers the power to reduce their bills by conserving or by choosing a competitive energy supplier. 4. Get California out of the power-buying business -- Once rate increases return the utilities to creditworthiness, the role of buying power can be returned to the utility very quickly -- within three to six months. The state should not buy the transmission grid to raise additional cash for the utilities. There are other ways to raise funds: for example, a miniscule rate increase of two-tenths of one cent per kilowatt hour could accomplish the same thing -- and keep the power expertise in the hands of the utilities. 5. Get deregulation right in California -- California never deregulated. In fact, today there is more regulation than ever before. For true deregulation to exist, every consumer and business in the state must have the right to hire and fire their energy service provider. When California passed a law this year authorizing the state to buy power, that same law (AB1X) called for an end to customer choice (also called "direct access.") California must rescind AB1X and reinstate the right of customers to choose their energy service provider. ARE WE INCLUDING CORE/NON-CORE? (i can't remember...) We urge the Legislature and Governor to enact legislation that includes these five components and sets California on the path to economic stability. The longer the delay, the bigger the problem. The time to act is now. CEO CEO etc.

Bernard, My coordinates: Vincent Kaminski Managing Director - Research Enron Corp. 1400 Smith Street Room EB1962 Houston, TX 77002-7361 Phone: (713) 853 3848 (713) 410 5396 (cell) Fax : (713) 646 2503 E-mail: [email protected] Yes, we are going into a very interesting summer both here and in the UK. Vince "Murphy, Bernard" <[email protected]> on 03/27/2001 01:23:04 AM To: "'[email protected]'" <[email protected]> cc: Subject: RE: Thesis on Electricity Price Jump-Diffusions Hi Vince, Can you e-mail me your mailing address in Houston and I will send you a hard copy of the above today. Apologies for delay, but I wanted to ensure that Les Clewlow had received his copy in Sydney before distributing any other copies. Incidentally, today (March 27th) is a red letter day in the UK as the NETA / new electricity trading arrangements have gone 'live'. Should be interesting to observe the development of the paper market in the coming months - you're no doubt aware that IPE have just launched an electricity futures contract. Regards Bernard -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: 01 March 2001 15:37 To: Murphy, Bernard Cc: [email protected]; [email protected] Subject: RE: 1997 Risk paper on Pricing of Electricity Derivatives Bernard, Yes, I can read a DVI file. You can also cc my home address: [email protected]. I shall try to send you an answer to your question on weekend. Vince "Murphy, Bernard" <[email protected]> on 03/01/2001 09:18:58 AM To: "'[email protected]'" <[email protected]> cc: Subject: RE: 1997 Risk paper on Pricing of Electricity Derivatives Vince, I can send you a Scientific Word DVI file (at the weekend) if you can read SCientific Word files ? The dissertation hasn't been reviewed by Les or the External yet - although its been at FORC for 2 months. I think that the Empirical Chapter is probably the one which would be of most relevance to both our company's businesses - although I ultimately didn't have the time to 'explicitly' price the jump risk-premium which I conjectured is possibly implicit in the prices of exchange-traded electricity futures-options - rather I developed an implicit estimation procedure which will enable a rough assessment (with a little bit of further work, but not too much) be made of the price of jump risk in wholesale power markets. In other words, I assumed spot jump-risk to be undiversifiable, and essentially devoted 2 Theoretical Chapters to : 1) proving that a jump-diffusion trading model is "incomplete" (synthesising the securities markets framework with martingale representation theory) - note that I did not assume that markets could be dynamically completed with 'term structure' securities as in the HJM w/ jumps papers of Shirakawa and Das and; 2) deriving an explicit risk-adjustment process for 'implementing' the price of jump-risk using a jump-diffusion marginal indirect utility of wealth process (ie. a jump-augmented production economy approach in the spirit of CIR, Bates, Ahn & Thompson). Incidentally, I would be keen to find out if you or any of your team done much work on real-asset valuations in a spark-spread option-valuation framework ? I'm about to start a project evaluation of embedded optionality, and have a dilemna whether I should model the spot or forward gas / power price processes. With the former, I can model mean-reversion and jumps explicitly (obviously, important for capturing the optionality of out-of-the-money plant, which might otherwise be ignored in a pure-diffusion framework) but am not maximising the informational content of the available market data (that is, assuming there was a long-term market forward curve for electricity); whereas in the latter the driftless forward supposition means that I have to capture mean-reversion via the futures volatility function, and jumps are less easy to calibrate. Any suggestions ? Regards Bernard -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: 01 March 2001 14:54 To: Murphy, Bernard Cc: [email protected]; [email protected] Subject: Re: 1997 Risk paper on Pricing of Electricity Derivatives Bernard, I am forwarding your message to my assistant and she will mail you a reprint. I would be glad to take a look at your dissertation. Is it available as a publication, working paper? Vince "Murphy, Bernard" <[email protected]> on 03/01/2001 02:17:39 AM To: "'[email protected]'" <[email protected]> cc: Subject: 1997 Risk paper on Pricing of Electricity Derivatives Hello Vince, My name is Bernard Murphy - I received your e-mail address from Les Clewlow, who was my PhD supervisor at the Financia Options Research Centre at Warwick Business School. I've just finished my PhD on Electricity Price Jump Diffusions : A Theoretical and Empirical Study in Incomplete Markets - hence my interest in electricity price modelling and derivative pricing. I was looking to get hold of a copy of your 1997 paper, which has recently come to my attention : "The Challenge of Pricing & Risk-Managing Electricity Derivatives", The US POwer Market, Risk Publications, pp. 149-171. and Les suggested that I contact you directly (Les is travelling at present and doesn't have an electronic copy available) to request an e-copy. Incidentally, I am Lecturer in Finance / Financial Mathematics at University of Limerick (Ireland) and have taken a year out to work for Caminus UK, where I am working on introducing and developing a markets-based approach (spark-spread) to real asset valuations in the UK power industry. Thanks in advancve Bernard Murphy

Didn't we already hang Richter with this at the Monday mtg. By the way, Lavo has indicated he will just attend our Monday meetings every couple of weeks instead of having a separate meeting. -----Original Message----- From: Belden, Tim Sent: Wednesday, June 13, 2001 10:06 AM To: Presto, Kevin M.; Lavorato, John; Black, Don Cc: Herndon, Rogers; Richter, Jeff Subject: RE: FYI - Progress Report on testing an EES deal in Enpower at our meeting with the six of us we need to assign one of us to wear the oversight of this project. -----Original Message----- From: Presto, Kevin M. Sent: Tuesday, June 12, 2001 5:09 PM To: Cross, Edith; Lavorato, John; Belden, Tim Cc: Herndon, Rogers; Richter, Jeff Subject: RE: FYI - Progress Report on testing an EES deal in Enpower Looks like Enpower is "on the side of the road" with respect to capturing and valuing retail deals. As we discussed in yesterday's meeting, Plan B is a more robust spreadsheet that unbundles the components and values them separately and creates postions by risk component. I know this is easier said than done, but we need a tactical solution that gives the group confidence that value and positions are correct, rather than a bundled black box batch value with hard coded assumptions. -----Original Message----- From: Cross, Edith Sent: Tuesday, June 12, 2001 5:47 PM To: Lavorato, John; Belden, Tim; Presto, Kevin M. Cc: Herndon, Rogers; Richter, Jeff Subject: FYI - Progress Report on testing an EES deal in Enpower To all, The following is documentation of a sample EES deal which was tested in the Enpower system. This is for informational purposes only. Please let me know if you have any questions, or need clarification on any points. Over the last few weeks, a few of us have been working to test an EES deal in Enpower (St. Luke's - Roosevelt, part of the Beth Israel deal). The deal is a fixed price sale in New York City (Zone J) of Energy, Line Losses, Ancillary's, and ICAP. The T&D is a pass through. We only tested one site out of the ten. Needless to say, this is probably one of the simplest structures available. Obviously, we have worked on a few other things at the same time, so it has taken longer than we expected, but I hope this will help highlight how difficult it is to book EES deals in Enpower in it's current state. Quick statistics for ONE site: Each month of hourly data, takes 5-6 minutes to save. We booked 100 months (approx 8.3 years), therefore each deal type (energy, ancillary, etc.) took 8-9 hours to book. Since each deal type takes 8-9 hours to book, it takes a total of 25-26 hours to book energy, ancillary's (only 1), line losses, and ICAP (this is not booked hourly, therefore, it only takes 1 hour to book). Although we booked only one ancillary position, most markets have at least four, therefore the total booking time should be closer to 50 hours. Once we got a book to run, it took 25 minutes to calculate the value. All of the above statistics assume there are no errors in entering the deals. Recommendations: Work with Anthony Dayao to set up a system that can handle these trades for position management, valuation, reporting, scheduling, settlements, accounting, etc. In the interim: Enhance RPS to make the valuation consistent with the batch valuation process. This includes strengthening information for position and DPR reporting. As well, create tools to help identify change in valuation due to curve shift, reg switch options, and new deals. Enhance Intramonth valuation and reporting (East desk does not currently have an intramonth book). Integrate the Tariff Valuation and Reporting. Currently, this is done in a stand-alone spreadsheet application. Support the Curve Database project which will allow the breakdown of curves into its components (as opposed to current bundled curves). Move all the EPMI hedges to Enpower. All hedges will become desk to desk instead of being entered in both RPS and Enpower. Position and P&L reports will have be integrated between Enpower and RPS. Here is a breakdown of what it took to 'rebook' this trade: Week 1 (May 14-18) Read Contract. Get Batch model, as well as a breakdown of value between Energy, Ancillary's, etc. Sit with Underwriting to answer questions about Load growth and contractual questions. Work on Wholesale Full Requirements model (in Excel) to check valuation. Week 2 (May 21-25) Continue working on Full Requirements model. Work with Risk Management (Stacey White's group) to set up delivery points and curves in Enpower. Begin to book deal in Enpower - Getting access to Enpower took some time. Discovered that our assumption on hours for the 12x12 was incorrect. We had gotten about 1/3 of the deal booked by the time we realized this. At times, the database tables would run out of space, because we have never entered a deal of this size in the test database. This would keep us from entering any new data. Week 3 (May 29-June 1) Finished Excel Full Requirements model. The EES Batch and the Wholesale model tie out except for some minor differences on discounting and ICAP. The current ICAP curves are $/MW-day, and they are not calculated using the correct numbers of days (i.e. June and July have the same MW/day price, even though there are 30 and 31 days, respectively, in each month). This can be fixed in the curve files. In the future we should mark the curves as $/Kw-month. Again, we ran into problems with the test database. Completed booking in Enpower. Week 4 (June 4-5) Took 2 days to get a MTM valuation (portcalc) to work. Discovered deal entry errors in booking.

Jim, I am not too familiar with the ISO program. I think they treat load curtailments as the equivalent of spinning reserve and pay as if it were spinning reserve? I don't know how participation-friendly the program is for SCs. I know that based on energy price signals we may at times try to agree with the customer to reduce the customers load so that we can resell the energy purchased for that customer. However, I am not too sure whether we go through the hoops to bid and prove we deserve an ancillary reserve payment. You may want to check with Jubran and Neil on the commodity desk. Roger From: James D Steffes@ENRON on 10/12/2000 09:09 AM To: Susan J Mara/SFO/EES@EES, Roger Yang/SFO/EES@EES, Jeff Dasovich/NA/Enron@Enron, Mona L Petrochko/SFO/EES@EES cc: Subject: Re: Update on CA PUC Action on Interruptible Contracts Is there anything that Enron would like to see changed on the Cal ISO demand program for the Summer? I know that we are not really worried about UDC Interruptible contracts, but maybe we can use this forum to change the way customers who volunteer get some benefits. Jim Susan J Mara@EES 10/11/2000 11:22 AM To: Roger Yang/SFO/EES@EES, Douglas Condon/SFO/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, Edward Hamb/HOU/EES@EES, James M Wood/HOU/EES@EES, Greg Nikkel/HOU/EES@EES, Chris Hendrix/HOU/EES@EES, Malcolm Adkins/HOU/EES@EES, Mojgan Ahad/Western Region/The Bentley Company@Exchange, Dan Bergmann/SFO/EES@EES, Chauntel Cannon/Western Region/The Bentley Company@Exchange, Shawn Grant/Western Region/The Bentley Company@Exchange, Deborah O'Jones/Western Region/The Bentley Company@Exchange, Geoff Pollard/Western Region/The Bentley Company@Exchange, Stephan Rank/Western Region/The Bentley Company@Exchange, Scott Sullivan/Western Region/The Bentley Company@Exchange, Pat van Otterdyk/SFO/EES@EES, Steve Walker/SFO/EES@EES, Paul Smith/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Dirk vanUlden/Western Region/The Bentley Company@Exchange, Chris H Foster/HOU/ECT@ECT, John Malowney/HOU/ECT@ECT, Andrew Wu/HOU/EES@EES cc: Mona L Petrochko/SFO/EES@EES, Sandra McCubbin/SFO/EES@EES, Jeff Dasovich/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, James D Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron Subject: Update on CA PUC Action on Interruptible Contracts SUMMARY OF CPUC ACTION: The CPUC has instituted an investigation of current interruptible and demand side programs. Our CA attorneys prepared a summary of the CPUC action, which is provided below. ENRON ACTIONS: Most of the calls we've received from EES have concerned the CPUC's proposed requirement that retail customers be forced to retain their interruptible contracts for their full five-year terms. We have learned that Enron has customers or potential customers on both sides of this issue -- we have customers who want to get out of the contracts and customers who want to stay on the programs. After discussion with Doug Condon and others, we have decided to stand on the sidelines and not take a position on that issue. Please feel free to call one of us with comments or questions. Sue Mara (415) 782-7802, Jeff Dasovich -7822, Mona Petrochko -7821. PREPARED SUMMARY: Here is a preview of the Commission's latest actions in response to the "crisis" in the California electric market. In short, the Commission has instituted an Investigation into operation of the interruptible load programs of the three UDCs, and the effect of these programs on energy prices, other demand responsiveness programs, and the reliability of the electric system. The item which has gotten the most "press" from the OII so far is the proposed temporary suspension of the tariff provisions of the three UDCs that allow customers to opt out of their interruptible program contracts during the 30 day window commencing November 1st. The Commission is using its authority under PUC Section 743 ( which gives the Commission specific authority to amend interruptible contracts between the UDCs and qualified heavy industrials) to propose such suspension. Although parties are allowed to comment on the suspension by this Thursday (the 12th), the Commission does have the apparent authority to effect the change and it will most likely proceed with the suspension. Apart from the enforced extension of the interruptible contracts, however, the OII potentially could have broader ramifications. The intent of the OII is to examine all interruptible, curtailable, and demand responsiveness programs being currently offered and/or proposed in California, and to determine how these programs can best be structured and/or reformulated to serve the Commission's goal of ensuring reliable and reasonably priced electric service within California (especially for the summer of 2001). It is hard to tell exactly what the Commission has in mind. However, it is possible that such reformulation of curtailable/demand responsiveness programs could interfere with Enron's ability to make interruptible/ demand responsive deals with customers. Moreover, the OII is not merely looking at larger customers. It states as one of the purposes of the rulemaking the identification of if and how smaller customers can participate in curtailable programs. Specifically, the OII states that "we need to examine the ability of smaller customers to participate; the development of rate design and incentive polices of such participation; a cost/benefit analysis of such programs; and the marketing of any such programs."

Dr. Lay: You will be pleasantly surprised to receive this e-mail from an Enron Employee. Please note that you are the first and only person in Enron that will know about the endeavors that this e-mail discusses. Background: In 1986 while I was taking a graduate course in Economics as part of my MBA program, I started to think that there exists some similarities between Economics and Thermodynamics. In 1988, I discussed my initial thoughts with Dr. Ibrahim Oweiss, professor of Economics at Georgetown University and we agreed to investigate this topic. Since that time, I worked with Professor Oweiss on and off investigating the subject. In the last couple of years, we started to make good progress, that was culminated recently by submitting three papers for publication (see table below). List of Papers # Paper Title Abstract Status 1 On the Analogies between
&Economics
8 and
&Thermodynamics
8 Part I:
&Basics
8 This part identifies certain analogies between Economics and Thermodynamics. The analogies between
&Abilities
8 and
&Energy
8,
&Utility
8 and
&Work
8,
&Capital
8 and
&Heat
8,
&Marginal Utility
8 and
&Pressure
8,
&Relative Income
8 and
&Temperature
8, as well as
&LABOR EFFORT
8 and
&Entropy
8 are discussed. This part concludes that the suggested analogies bring about new approaches that will explain some economic complexities by borrowing or building upon some concepts, theories and experiences in Thermodynamics. Part II:
&Applications
8 This second Part builds upon the basics introduced in Part I where analogies between Economics and Thermodynamics have been drawn. In this Part, the application of the analogies is utilized to analyze some of the topics economists deal with. This Part presents a fresh approach that holds promising vehicles that can explain some of the paradoxes economists have been facing for years. Submitted for publications as a working paper at the Department of Economics at Georgetown University. (November 2000) 2 A New Approach to
&Production Theory
8 This paper introduces a fresh approach to the Production Theory. Unlike the conventional approach of relating production to Capital and Labor along the line suggested by Cobb Douglas, the approach this paper takes is relating the production to utility change which in turn is related to changes in capital and labor effort. This approach affords more generality and helps in the explanation of some paradoxes that the Cobb Douglas theory could not explain. Submitted for publications in
&Economic Theory
8, (October 2000) 3 The Capital Engine Concept This Paper presents a fresh approach that explains several observations in economics. The concept is used to discuss some of the trends the economic growth theory exhibits. It is also used to explain gains in productivity associated with technology improvements. The Capital Engine concept presented in this paper could serve as a basis for new growth theory. Submitted for publications in
&Economic Theory
8, October 2000) A fourth paper entitled "Innovation: Why" is under preparation. In this paper, we are able to substantiate based on the concept of the Capital Engine that innovation is the most important driver for economic growth. You can see why I chose these two words in the title of the paper from my Enron world. I have been collaborating with Professor Oweiss on my own time and I am pleased that we managed to get to this point. Professor Oweiss and I are now convinced that we have reached some breakthroughs that could revolutionize the study of Economics. We also feel that we can build further on what we reached, and even making more valuable contributions. I am sure that you will be pleased to learn of the above, of course being an Economist you shall appreciate it even more. As I reach this critical stage on our path of this research project, I would like to seek Enron support in two areas: I. Patent(s) / Copy Righting: I feel that the contributions that are covered in the three papers are original and may warrant patenting / copy righting. Since I am the primary author of these papers I wanted to have some credit go to Enron. II. Grant / Sponsorship: I feel that my endeavors which have been purely on my own personal time so far, need to be replaced by a more concerted effort now that we have reached a critical mass. Towards this end, Dr. Oweiss and myself are taking steps to get funding from the National Science Foundation for a joint research project that would be carried out through the Georgetown University. I do not know of any particular programs within Enron that would afford me the opportunity to complete a project like the one we are envisaging. I feel that such a research program will be very valuable. I am further convinced that such program will not be only of an academic value but it will have significant impact to the business world. I trust that the publicity that Enron being the leading company in innovation would get out of the success that I am hoping for the proposed research project will be many folds the amount of money Enron would contribute to the proposed effort. I would be delighted to send you copies of the three papers and / or make a brief presentation on the subject. I wish to thank you for taking the time to read the above e-mail amid your busy schedule. Regards, Hemmat Safwat General Manager, Development Engineering Enron Middle East I

Yeah it muts be the same teacher, and she's still drunk. Yes, tomorrow we will be mostly Itlian. -----Original Message----- From: Jameson Press [mailto:[email protected]] Sent: 23 October 2001 13:59 To: Harmon, John; greig, michael; dan fisher (e-mail) Subject: Re: Spanish is well easy. Mr Harmon It seems we have the same teacher ---------- >From: "Harmon, John" <[email protected]> >To: "Jameson Press" <[email protected]>, "Greig, Michael" <[email protected]>, "dan fisher (e-mail)" <[email protected]> >Subject: RE: Spanish is well easy. >Date: Tue, Oct 23, 2001, 1:47 pm > > Brad said something about..... > I look alike to have developed the amazing aptitude to speak to Spanish > also below am a rough(harsh) translation of the th of what Juan > it(he,she) finishes of saying as for opening a bar and when charges to > do of spondolicks that I am nice for above(up) for her(it) one see > him(her) everything promptly > > -----Original Message----- > From: Jameson Press [mailto:[email protected]] > Sent: 23 October 2001 13:32 > To: Greig, Michael; Harmon, John; dan fisher (e-mail) > Subject: Re: Spanish is well easy. > > > Me parezco haber desarrollado la capacidad asombrosa de hablar a espa?ol > > tambi?n debajo soy traducci?n ?spera del th de qu? Juan acaba de decir > en > cuanto a abrir una barra y a hacer cargas de spondolicks que estoy bien > para > arriba para ella v?ale todo pronto > > God I cannot hope to undo to me of my debts and to joder of a Spain. We > easily could make ? us 12 magnificent together ones to rent a bar, I I > would > wash excrement crystals instead of the paper that revuelve do to me now. > The > bloody work on my writing-desk is trousers, I am not slightest the bit > of > interested in which continues in my department. > > ---------- >>From: "Greig, Michael" <[email protected]> >>To: "'Harmon, John'" <[email protected]>, "Dan Fisher (E-mail)" > <[email protected]>, "Brad King (E-mail)" > <[email protected]> >>Subject: RE: Spanish is well easy. >>Date: Tue, Oct 23, 2001, 12:11 pm >> > >> Yeah for you it might be easy but can i have the translated ENGLISH > version >> please?? >> >> -----Original Message----- >> From: Harmon, John [mailto:[email protected]] >> Sent: 23 October 2001 12:08 >> To: Dan Fisher (E-mail); Mike Grieg (E-mail); Brad King (E-mail) >> Subject: Spanish is well easy. >> >> >> Dios no puedo esperar para deshacerme de mis deudas y joder de a > Espa?a. >> Nosotros f?cilmente podr?amos hacernos ? 12 magn?ficos juntos para >> alquilar una barra, yo me lavar?a cristales de mierda en vez del papel >> que me revuelve hacen ahora. >> El trabajo sangriento sobre mi escritorio es pantalones, no soy el >> slightest el bit de interesado en lo que contin?a en mi departamento. >> >> >> ********************************************************************** >> 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 [email protected] 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. >> ********************************************************************** >> >> >> ***> >> >> >> >> ********************************************************************** >> IMPORTANT - this email and the information that it contains may be >> confidential, legally privileged and protected by law. Access by the >> intended recipient only is authorised. Any liability (in negligence or >> otherwise) arising from any third party acting, or refraining from >> acting, on any information contained in this email is hereby excluded. >> If you are not the intended recipient, please notify our Audit & >> Compliance Department ([email protected]) immediately >> then delete it and do not disclose the contents to any other person, >> use it for any purpose or store or copy the information in any medium. >> Copyright in this email and attachments created by us belong to Amlin. >> The author also asserts the right to be identified as such and object >> to any misuse. >> >> Amlin prohibits and takes steps to prevent its email systems from >> being used to view, store or transmit offensive, obscene or >> discriminatory material. If this message contains inappropriate >> material please report it immediately to the Audit & Compliance >> Department. Amlin records, monitors and may inspect messages that use >> its telecoms systems in order to protect its information, interests >> and reputation. Any message sent by you to or within Amlin may >> therefore be viewed and may be acted upon. >> >> Amlin does not normally accept or offer business instructions via >> email. Any action that you might take upon this message might >> therefore be at your own risk. >> >> Amlin Underwriting Limited >> St Helen's, 1 Undershaft, London EC3A 8ND, United Kingdom >> Registered as a Limited Company in England and Wales No. 2323018. >> Registered Office as above >> Switchboard: 020 7746 1000 >> Web Site: http://www.amlin.com >> ********************************************************************** >>> ************

I know I've thoroughly enjoyed all the commentary. I can honestly say, I think this is the first time I've been invited to an Aggie happy hour....and to that end, kudos to all those who opted out of Sam's Boat...you now may be forced to deal with a longhorn interloper. -----Original Message----- From: "John Menconi" <[email protected]>@ENRON [mailto:IMCEANOTES-+22John+20Menconi+22+20+3Cjmenconi+40adv-eng-ser-inc+2Ecom+3E+40ENRON@ENRON.com] Sent: Thursday, July 26, 2001 3:36 PM To: 'Friend, Trip \(JW\)'; 'Robert A. Parry, M.S., DABMP'; 'aimee girl'; Haughn, Jarrod; Scott, Susan M.; Sanchez, Monique Subject: RE: Aggie Happy Hour--tomorrow (7/26) This was all very entertaining. Did I miss the meeting time? -----Original Message----- From: Friend, Trip (JW) [mailto:[email protected]] Sent: Thursday, July 26, 2001 3:29 PM To: 'Robert A. Parry, M.S., DABMP'; aimee girl; Haughn, Jarrod; Scott, Susan M.; [email protected]; Sanchez, Monique Subject: RE: Aggie Happy Hour--tomorrow (7/26) sorry mo. i had not read your e-mail until after i had sent mine. oops! tony's sounds like fun to me, it's in the neighborhood, and i hear they have kick-ass ritas. the friends are in. see you at tony's. -----Original Message----- From: Robert A. Parry, M.S., DABMP [mailto:[email protected]] Sent: Thursday, July 26, 2001 2:38 PM To: Trip (Work); aimee girl; Haughn, Jarrod; Scott, Susan M.; [email protected]; Sanchez, Monique Subject: Re: Aggie Happy Hour--tomorrow (7/26) By looking at the clock, it would appear the Mo beat Trip to the punch by 1 minute. Accompany that with the fact that we have not gone to Tony's as a group, and just recently went to the Front Porch, and haven't been to Cahill's in a long time and it's crappy outside. Therefore I have to give the nod to... the Sanchezcamp, barring a major uproar from the Friend camp. What say ye? ----- Original Message ----- From:Sanchez, Monique To:"Friend, Trip (JW)" <[email protected]>@ENRON ; Robert A. Parry, M.S., DABMP ; [email protected] << File: mailto:[email protected] >> ; Scott, Susan M. ; Haughn, Jarrod << File: mailto:[email protected] >> ; aimee girl Sent:Thursday, July 26, 2001 1:59 PM Subject:RE: Aggie Happy Hour--tomorrow (7/26) I would personally...be up more for drinks and dinner at the same time...than separate...but i'm a lush...can't hold my liquor. > -----Original Message----- > From: "Friend, Trip (JW)" <[email protected]>@ENRON > Sent: Thursday, July 26, 2001 1:55 PM > To: 'Robert A. Parry, M.S., DABMP'; [email protected]; > Scott, Susan M.; Haughn, Jarrod; Sanchez, Monique; 'aimee girl' > Subject: RE: Aggie Happy Hour--tomorrow (7/26) > > to avoid jay-rod's imminent brain implosion, here are my thoughts... > > for margaritas, how about tealas. > if the rain holds up, how about the front porch pub - farrago combo. > > - tripas > ----- Original Message ----- From:Sanchez, Monique To:Haughn, Jarrod ; Robert A. Parry, M.S., DABMP << File: mailto:[email protected] >> ; Trip (Work) << File: mailto:[email protected] >> ; [email protected] ; Scott, Susan M. << File: mailto:[email protected] >> Sent:Thursday, July 26, 2001 1:54 PM Subject:RE: Aggie Happy Hour--tomorrow (7/26) TONY's on Ella.....730.....awesome mex food......strong margaritas....we can do cahills after or all go home. Any other suggestions????weather looks crappy. > -----Original Message----- > From: Haughn, Jarrod [mailto:[email protected]] > Sent: Thursday, July 26, 2001 1:50 PM > To: Robert A. Parry, M.S., DABMP; Trip (Work); > [email protected] << File: mailto:[email protected] >> ; Scott, Susan M.; Sanchez, Monique > Subject: RE: Aggie Happy Hour--tomorrow (7/26) > > > Somebody make a decision. The suspense is killing me. > > I've just had my second Freebird's in the last 24 hours. Life is > good. > > > > -----Original Message----- > From: Robert A. Parry, M.S., DABMP [mailto:[email protected]] > Sent: Thursday, July 26, 2001 1:40 PM > To: Trip (Work); [email protected] << File: mailto:[email protected] >> ; Scott, Susan M.; > Haughn, > Jarrod; Sanchez, Monique > Subject: Re: Aggie Happy Hour--tomorrow (7/26) > > > So what is the status on all this brouhaha? Anyone? Anyone? > > > ----- Original Message ----- > From: Sanchez, Monique <mailto:[email protected] << File: mailto:[email protected] >> > > Sent: Thursday, July 26, 2001 10:17 AM > Subject: RE: Aggie Happy Hour--tomorrow (7/26) > > how bout berryhill if it is nice outside? i also leaning towards > somewhere close to home. we could also all go eat and drink ritas at > Tony's on Ella if it is dreary. > > > > -----Original Message----- > > From: "Friend, Trip (JW)" > > > Sent: Wednesday, July 25, 2001 4:35 PM > > To: Haughn, Jarrod; [email protected] << File: mailto:[email protected] >> <mailto:[email protected] << File: mailto:[email protected] >> > ; > Sanchez, Monique > > Subject: RE: Aggie Happy Hour--tomorrow (7/26) > > > > maybe, maybe not. > > > > what about another location later in the evening (circa 7:30)? > > > > - mr. non-committal inside-the-loop > > > > -----Original Message----- > > From: Haughn, Jarrod [mailto:[email protected]] > > Sent: Wednesday, July 25, 2001 12:35 PM > > To: [email protected] << File: mailto:[email protected] >> <mailto:[email protected]> ; Sanchez, > Monique; > [email protected] << File: mailto:[email protected] >> <mailto:[email protected]> > > Subject: Aggie Happy Hour--tomorrow (7/26) > > > > > > Hey guys.... > > > > Aggie Happy Hour is tomorrow night at Sam's Boat. It's probably the > > only time you can go there and not be surrounded by topless dancers, > > muscleheads on roids, club freaks and 18 year olds..... > > > > If anyone is interested, lemme know.... > > > > JROD

Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 06/20/2001 10:33 AM ----- Minal Dalia@EES 06/19/2001 12:08 PM To: Susan J Mara/NA/Enron@ENRON cc: Subject: Re: Proposed Decisions of the CPUC on PX Credit and Suspending Direct Access Susan, Can you please add me to your distribution list for news pertaining to CA. Thank you Minal Susan J Mara@ENRON 06/18/2001 03:43 PM To: Alan Comnes/PDX/ECT@ECT, Angela Schwarz/HOU/EES@EES, Beverly Aden/HOU/EES@EES, Bill Votaw/HOU/EES@EES, Brenda Barreda/HOU/EES@EES, Carol Moffett/HOU/EES@EES, Cathy Corbin/HOU/EES@EES, Chris H Foster/HOU/ECT@ECT, Christina Liscano/HOU/EES@EES, Christopher F Calger/PDX/ECT@ECT, Craig H Sutter/HOU/EES@EES, Dan Leff/HOU/EES@EES, Debora Whitehead/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Don Black/HOU/EES@EES, Douglas Huth/HOU/EES@EES, Edward Sacks/Corp/Enron@ENRON, Eric Melvin/HOU/EES@EES, Erika Dupre/HOU/EES@EES, Evan Hughes/HOU/EES@EES, Fran Deltoro/HOU/EES@EES, Gayle W Muench/HOU/EES@EES, Ginger Dernehl/NA/Enron@ENRON, Gordon Savage/HOU/EES@EES, Harold G Buchanan/HOU/EES@EES, Harry Kingerski/NA/Enron@ENRON, James D Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES, James Wright/Western Region/The Bentley Company@Exchange, Jeff Messina/HOU/EES@EES, Jeremy Blachman/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Joe Hartsoe/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Kathy Bass/HOU/EES@EES, Kathy Dodgen/HOU/EES@EES, Ken Gustafson/HOU/EES@EES, Kevin Hughes/HOU/EES@EES, Leasa Lopez/HOU/EES@EES, Leticia Botello/HOU/EES@EES, Mark S Muller/HOU/EES@EES, Marsha Suggs/HOU/EES@EES, Marty Sunde/HOU/EES@EES, Meredith M Eggleston/HOU/EES@EES, Michael Etringer/HOU/ECT@ECT, Michael Mann/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, [email protected], Neil Bresnan/HOU/EES@EES, Neil Hong/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Richard L Zdunkewicz/HOU/EES@EES, Richard Leibert/HOU/EES@EES, Richard Shapiro/NA/Enron@ENRON, Rita Hennessy/NA/Enron@ENRON, Robert Badeer/HOU/ECT@ECT, Rosalinda Tijerina/HOU/EES@EES, Sandra McCubbin/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Scott Gahn/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Sharon Dick/HOU/EES@EES, [email protected], Susan J Mara/NA/Enron@ENRON, Tanya Leslie/HOU/EES@EES, Tasha Lair/HOU/EES@EES, Ted Murphy/HOU/ECT@ECT, Terri Greenlee/NA/Enron@ENRON, Tim Belden/HOU/ECT@ECT, Tony Spruiell/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Vladimir Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES, William S Bradford/HOU/ECT@ECT, Jubran Whalan/HOU/EES@EES, [email protected], Richard B Sanders/HOU/ECT@ECT, Robert C Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, [email protected], [email protected], Donna Fulton/Corp/Enron@ENRON, [email protected], Bruno Gaillard/EU/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Ren, Lazure/Western Region/The Bentley Company@Exchange, Michael Tribolet/Corp/Enron@Enron, Phillip K Allen/HOU/ECT@ECT, Christian Yoder/HOU/ECT@ECT, [email protected], Tamara Johnson/HOU/EES@EES, Greg Wolfe/HOU/ECT@ECT, Jeff Dasovich/NA/Enron@Enron, Dirk vanUlden/Western Region/The Bentley Company@Exchange, Steve Walker/SFO/EES@EES, James Wright/Western Region/The Bentley Company@Exchange, Mike D Smith/HOU/EES@EES, Richard Shapiro/NA/Enron@Enron, Leslie Lawner/NA/Enron@Enron, Robert Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steve Walton/HOU/ECT@ECT, [email protected], [email protected], Janel Guerrero/Corp/Enron@Enron, Mark Fillinger/SF/ECT@ECT, Jennifer Rudolph/HOU/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, [email protected], Joseph Alamo/NA/Enron@Enron, Tracy Ngo/Enron@EnronXGate, Ray Alvarez/NA/Enron@ENRON, Steve C Hall/ENRON@enronXgate, David Leboe/Enron@EnronXGate, Jay Zoellner/Western Region/The Bentley Company@Exchange, Fatimata Liamidi/HOU/EES@EES, Sonia Perez/HOU/EES@EES, Chris Holmes/HOU/EES@EES, Venkatesh Mani/Western Region/The Bentley Company@Exchange, Richard Crevelt/Western Region/The Bentley Company@Exchange, Dave Perrino/SF/ECT@ECT, Malcolm Adkins/HOU/EES@EES, Kevin Keeney/HOU/EES@EES cc: Subject: Proposed Decisions of the CPUC on PX Credit and Suspending Direct Access Two proposed decisions were issued by hard copy and received today. Jim Steffes' office in Houston has a copy. Both decisions eliminate the requirement that the utilities provide cash refunds to the direct access customers for the negative PX Credit as of Januray 5, 2000. On other points they differ. The decision by Assigned Commissioner Wood is adversarial to direct access and suspends direct access. If adopted, direct access would be suspended July 1, 2001, except for written contracts executed prior to July 1, 2001. On the PX Credit, he says that the cash payment is not required and leaves open the notion that the bill credit would continue. The alternate decision by Commissioner Bilas does not suspend direct access but asks for ideas on how to provide DA given ABX 1 and the concerns of the state's Dept of Finance when providing comments on the draft decision. Bilas has a finding of fact that "direct access is a necessary component of restoration of functional electricity markets." On the PX credit, Bilas' proposed decision would end the cash payment but begin a process to modify the PX credit decision (D.99-06-058) and to adopt a bottoms-up calculation for direct access customers. He asks for comments in 20 days and reply comments in 5 days. With a bottoms-up calculation, direct access customers would pay only wires charges and public purpose charges and pay no charge for power purchases. Comments on the draft decisiona are due next Monday, June 25. Enron and its coalitions will actively support the Bilas alternate and seek the third vote needed to ensure passage. Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854

------------------------------------------------------------------------------ ------------------------ W E E K E N D S Y S T E M S A V A I L A B I L I T Y F O R March 2, 2001 5:00pm through March 5, 2001 12:00am ------------------------------------------------------------------------------ ------------------------ SCHEDULED SYSTEM OUTAGES: ENA ARDMORE DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages. AZURIX: No Scheduled Outages. EB34 DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages. EDI SERVER: No Scheduled Outages. ENRON NORTH AMERICAN LANS: Impact: EES Time: Fri 3/2/2001 at 10:00:00 PM CT thru Sat 3/3/2001 at 12:15:00 AM CT Fri 3/2/2001 at 8:00:00 PM PT thru Fri 3/2/2001 at 10:15:00 PM PT Sat 3/3/2001 at 4:00:00 AM London thru Sat 3/3/2001 at 6:15:00 AM London Outage: Re-IP of the 12th floors Environments Impacted: EES Purpose: Migrate users to new router Backout: Change connections back, re-ip switches Contact(s): Vincent Fox 713-853-5337 Impact: CORP Time: Sun 3/4/2001 at 10:00:00 AM CT thru Sun 3/4/2001 at 3:00:00 PM CT Sun 3/4/2001 at 8:00:00 AM PT thru Sun 3/4/2001 at 1:00:00 PM PT Sun 3/4/2001 at 4:00:00 PM London thru Sun 3/4/2001 at 9:00:00 PM London Outage: Clean up of 110 environment at Ardmore Environments Impacted: Corp Purpose: Jumbled mess is impossible to trace out connections and looks terrible. We also need to consolidate the connections on to fewer blades. Connections will be unplugged for less than 1 minute. Backout: none Contact(s): Steve Hardy 713-853-9294 713-415-0672 Impact: 500 Jefferson Time: Sun 3/4/2001 at 10:15:00 AM CT thru Sun 3/4/2001 at 5:00:00 PM CT Sun 3/4/2001 at 8:15:00 AM PT thru Sun 3/4/2001 at 3:00:00 PM PT Sun 3/4/2001 at 4:15:00 PM London thru Sun 3/4/2001 at 11:00:00 PM London Outage: Re-routing 500 Jefferson Environments Impacted: 500 Jefferson Purpose: To stop routing across OC3 and route accross GIG Backout: Set routing back on HOUCX1 and HOUCX2 Contact(s): Tomas Mendez 713-345-3250 Impact: 600 Jefferson Time: Sun 3/4/2001 at 10:00:00 AM CT thru Sun 3/4/2001 at 5:00:00 PM CT Sun 3/4/2001 at 8:00:00 AM PT thru Sun 3/4/2001 at 3:00:00 PM PT Sun 3/4/2001 at 4:00:00 PM London thru Sun 3/4/2001 at 11:00:00 PM London Outage: Re-routing 600 Jefferson Environments Impacted: 600 Jefferson Purpose: Backout: keep routing from Ardmore Contact(s): Tomas Mendez 713-345-3250 FIELD SERVICES: No Scheduled Outages. INTERNET: No Scheduled Outages. MESSAGING: Impact: EI Time: Fri 3/2/2001 at 9:00:00 PM CT thru Sat 3/3/2001 at 1:00:00 AM CT Fri 3/2/2001 at 7:00:00 PM PT thru Fri 3/2/2001 at 11:00:00 PM PT Sat 3/3/2001 at 3:00:00 AM London thru Sat 3/3/2001 at 7:00:00 AM London Outage: EI Notes Server Maintenance Environments Impacted: EI Local/Domestic/Foreign Sites Purpose: Scheduled @ 2 week interval Backout: N/A Contact(s): David Ricafrente 713-646-7741 Impact: Corp Notes Time: Fri 3/2/2001 at 9:00:00 PM thru Sat 3/3/2001 at 1:00:00 AM Fri 3/2/2001 at 7:00:00 PM PT thru Fri 3/2/2001 at 11:00:00 PM PT Sat 3/3/2001 at 3:00:00 AM London thru Sat 3/3/2001 at 7:00:00 AM London Outage: cNotes Server Reboots Environments Impacted: All users on any of the mailservers listed below Purpose: Scheduled @ 2 week interval Backout: Make sure server comes up. Contact(s): Trey Rhodes (713) 345-7792 MARKET DATA: No Scheduled Outages. NT: No Scheduled Outages. OS/2: No Scheduled Outages. OTHER SYSTEM SysAdmiral-Batch Scheduling Impact: CORP Time: Fri 3/2/2001 at 8:00:00 PM CT thru Fri 3/2/2001 at 9:00:00 PM CT Fri 3/2/2001 at 6:00:00 PM PT thru Fri 3/2/2001 at 7:00:00 PM PT Sat 3/3/2001 at 2:00:00 AM London thru Sat 3/3/2001 at 3:00:00 AM London Outage: SysAdmiral Agent Reinstall. Environments Impacted: Corp Purpose: Credit Aggregation file dependencies are no longer working and it has been troubleshot that the Agent on Quark is corrupted. No jobs will be scheduled or executed during this outage. Backout: Restore the backup directory structure. Contact(s): Rusty Cheves 713-345-3798 877-499-0610(ips) SITARA: Impact: Sitara Production Time: Sat 3/3/2001 at 5:00:00 PM CT thru Sun 3/4/2001 at 12:00:00 PM CT Sat 3/3/2001 at 3:00:00 PM PT thru Sun 3/4/2001 at 10:00:00 AM PT Sat 3/3/2001 at 11:00:00 PM London thru Sun 3/4/2001 at 6:00:00 PM London Outage: Sitara Environments Impacted: Sitara Users Purpose: East Desk Split Backout: Restore database/system. Contact(s): Sitara on Call 713-288-0101 SUN/OSS SYSTEM: No Scheduled Outages. TELEPHONY: No Scheduled Outages TERMINAL SERVER: No Scheduled Outages. UNIFY: No Scheduled Outages. SCHEDULED SYSTEM OUTAGES: ESA Impact: ESA Time: Sat 3/3/2001 at 4:00:00 PM CT thru Sun 3/4/2001 at 4:00:00 PM CT Sat 3/3/2001 at 8:00:00 PM Brazil thru Sun 3/4/2001 at 8:00:00 PM Brazil Sat 3/3/2001 at 2:00:00 PM PT thru Sun 3/4/2001 at 2:00:00 PM PT Sat 3/3/2001 at 10:00:00 PM London thru Sun 3/4/2001 at 10:00:00 PM London Outage: Maintenance to the electrical systems Environments Impacted: Sao Paulo Office Purpose: Security maintenance Backout: Back to the original project. Contact(s): Nilson Busto 7910-1347 ------------------------------------------------------------------------------ ------------------------------------------------------- FOR ASSISTANCE (713) 853-1411 Enron Resolution Center (713) 853-5536 Information Risk Management Specific Help: Unify On-Call (713) 284-3757 [Pager] Sitara On-Call (713) 288-0101 [Pager] RUS/GOPS/GeoTools/APRS (713) 639-9726 [Pager] OSS/UA4/TARP (713) 285-3165 [Pager] CPR (713) 284-4175 [Pager] EDI Support (713) 327-3893 [Pager] EES Help Desk (713)853-1741 OR (888)853-9797

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The Houston Planning Forum has extended an invitation to the Harvard Business School Club of Houston to their Holiday Luncheon and Social Mixer.? Please come early to enjoy complimentary hors d'oeuvres and holiday beverages before lunch. PROGRAM DETAILS Date:?????? Wednesday, December 20, 2000 Place:????? The Courtyard on St. James Place, 1885 St. James Place Time:?????? 11:30 am - 1:30 pm Speaker:? Gretchen Gemeinhardt, Ph.D., Senior Consultant at American Productivity & Quality Center Topic:????? Utilizing Best Practices and Knowledge Management for Continuous Improvement Using a proven approach to benchmarking, organizations can realize both tangible and intangible returns from its benchmarking activities.? At the December presentation, Gretchen Gemeinhardt will discuss using benchmarking as a tool to drive strategic and operational improvement. Gretchen Gemeinhardt, senior consultant with the American Productivity & Quality Center (APQC), is responsible for planning, managing and performing individual and consortium studies and conducting needs assessments for educational and business organizations.? APQC, a world-renowned Houston-based resource for process and performance improvement, works with organizations to improve productivity and quality by using benchmarking, best practices, knowledge management, and other continuous improvement methods to adapt to rapidly changing environments, build new and better ways to work, and succeed in a competitive marketplace. Prior to joining APQC, Dr. Gemeinhardt worked as management consultant serving health care and nonprofit organizations and worked closely with organizations implementing new programs and identifying new market opportunities.? She also managed several nonprofit organizations.? Most recently, she served as executive director of a nonprofit conflict resolution and mediation services organization. Currently, Dr. Gemeinhardt is a visiting assistant professor at Texas Woman's University in the Department of Healthcare Administration.? Gretchen has also been a member of the business faculty of Rice University and the University of Houston.? Dr. Gemeinhardt has authored numerous articles and has presented at conferences in the United States.? Gretchen serves as an examiner for the Texas Quality Award. Gretchen received her Ph.D. in Organizational Behavior and Management and MBA from the University of Houston and a Bachelor of Art from Hamilton College in Psychology and English. ====================== RESERVATIONS REQUIRED Reservations accepted until noon on Monday, December 18, 2000. Pre-payment by credit card is required.? Credit cards will be charged for no-shows. Leave following information on the HPF voice mail (713/908-0211), fax to 281/424-4770, or e-mail [email protected]. Member Name: Company: Phone: Guest Name: Members: $25???? Guests: $35 Payment:? Credit Card Only (Visa, MC, AMEX)?????????? Card Number: Exp Date: ******************************** Membership.? The Forum would like to welcome Charles Beck, Director of Business Development at Brookwoods Group and Elizabeth Tobola, Strategic Sourcing & Staffing at Williams Gas Pipeline-Transco as new members.? We would also like to thank the following HPF members who have renewed their memberships for 2001:? Thomas R. Coneybeer, Ralph D'Onofrio, Gilbert A. Herrera, Brian P. Laporte, Ellen M. Shannon, and Kenneth M. Williams. ******************************** Meeting Location.? The Houston Planning Forum meetings are held at The Courtyard on St. James Place, located at 1885 St. James Place (off San Felipe between Sage and Chimney Rock).? Bring a guest to the December meeting and experience Houston
,s premiere establishment for great meetings and superb food.? Free self parking available. ******************************** Upcoming Events: The Houston Planning Forum meetings are held monthly on the third Wednesdays from 11:30 a.m. - 1:30 p.m.? Make plans to attend the following upcoming events: January 17, 2001 - Robert Shaw, CEO of Emerging; Topic: Strategies in Creating a Successful Start-up Company - A Post-April 2000 Perspective February 21, 2001 - Osama Mikhail, Chief Strategic Officer, St. Luke
,s Health Systems ******************************** Sponsorships Available.? Your firm can become a corporate sponsor for one year for only $500.? Sponsors are recognized at each meeting, monthly newsletter and HPF website.? Call Ken Williams today at 713/652-7560 for more information. ******************************** 1999-2000 OFFICERS Maury Sklar (President/CEO) Halliburton Company (713) 676-8554 Raymond Budde (Executive VP) Signase, Inc. (713) 792-3780 Victor Elgohary (CFO) V.S. Elgohary & Associates (713) 410-0743 John Skiffington (VP Membership) Shell Chemical (713) 241-9369 Martin Monroe (Membership Committee Chair) Relativistic Solutions, Inc. (281) 493-9418 Monty Boyle (VP Programs) Cap Gemini (713) 307-8345 Luiz Da Rocha (Programs) Arthur Andersen LLP (713) 237-5015 DIRECTORS Kenneth Williams - Sponsorship Frost Bank (713) 652-7560 P.K. George - Director Texaco, Inc. (713) 432-2272 George Grimm - Director G.W. Grimm Associates (713) 880-4553 Arthur Penny - Director Pilko & Associates (281) 875-3700 James Sowers - Director Towers Perrin (713) 754-5409 SPONSORS Frost Bank? *? G.W. Grimm Associates Halliburton Company? *? Texaco? *? Towers Perrin Dottie Kerr ([email protected]) Administrator for Houston Planning Forum http://www.houstonplanningforum.org/ Voice mail: 713-908-0211

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 01/26/2001 04:33 PM --------------------------- Kristin Walsh 01/25/2001 11:23 AM To: John J Lavorato/Corp/Enron cc: Jeffrey A Shankman/HOU/ECT@ECT, Gary Hickerson/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Vince J Kaminski/HOU/ECT@ECT, James D Steffes/NA/Enron@Enron, Michelle D Cisneros/HOU/ECT@ECT, Jeff Kinneman/HOU/ECT@ECT, John Greene/LON/ECT@ECT, Jaime Gualy/NA/Enron@Enron, Phillip K Allen/HOU/ECT@ECT, Mike Grigsby/HOU/ECT@ECT, Scott Tholan/Corp/Enron@Enron, Robert Johnston/HOU/ECT@ECT Subject: California Update 1/25/01 California Timeline: February 2nd: The state legislature has to pass the enabling laws to let the state pay for the electricity from auction before the current emergency money runs out on February 2. Republican leaders have vowed to block any additional emergency funds. The California courts gave Edison a two-week grace period (until February 2) on demands by the California Power Exchange that Edison forfeit $215 million in long-term low cost power contracts to the CPX for repayment of its debt. Governor Davis told the Court that he may absorb that contract in favor of taxpayers using his emergency "taking" powers. February 7th: President Bush, who had to intervene personally against his energy secretary to extend the Energy Department order mandating electricity sales to California by power generators, made it abundantly clear to all sides that the two week deadline was hard and would not be extended. February 13th: Edison worked out a three-week grace period -- through February 13 -- with all of its 32 banks and QFS to prevent from asking for accelerated repayment during that period, but if the state has not figured out a way to bridge that debt by then, this deadline could be a real trigger for bankruptcy. Legislation As mentioned in Tuesday's update, legislators are close to a long-term power buying deal with the so-called "green" producers (wind, solar, hydro, cows) of energy, accounting for 30% of California's total energy production. This would allow the Department of Water Resources to buy power from them at 8 cents per kilowatt hour. Bill AB1X--the key piece of legislation for setting long-term power contracts--is still being mulled over in the Senate, but is expected to pass this week. The keys issues is still the price, which will probably be revised in accordance to the results of the auction. Other legislation has been introduced, including three bills by Boxer that would increase federal support and impose "windfall profits tax" for wholesalers that sell power at "unfair and unreasonable" rates. The hydro legislation is still being bantered about, however with going opposition from both Democrats and Republicans. Bail out scenarios A new scenario is a market-oriented solution that would give the state of California "warrants" on the PG&E and Edison stock in return for lending them the money to get out of this current mess (still the problem of financing the $6B vs. $12B). As the stock prices recovered, the state could cash in the warrants and rebate to electricity users some of the emergency surcharge needed to pay back the debt. This is exactly the plan used to bail out Chrysler in the late 1970s and it worked wonders for taxpayers then. This senario would also provide Davis with some political cover, as the idea of rebates are far more appealing than price increases. Lots of details remain to be worked out, but even the consumer activist groups threatening to create propositions on fall ballots appeared to like this deal. Bankruptcy Socal is close to an agreement with 32 bank creditors and QFs to allow a forbearance on debt payments through February 13th. However, it is not expected that the bondholders would agree to this type of deal. The bondholders could try to force the utilities into involuntary bankruptcy, but would probably be unsuccessful. As long as Socal continues working with their creditors and show "good faith" any bankruptcy at this time would have to be voluntary. As this date (Feb. 13th) fast approaches, the state will have to take quick action and draft and approve legislation between the governor, the generators and the utilities to prevent Socal and PG&E from bankruptcy. As part of the forbearance agreement, Edison has contracted with around 400 QFs and negotiations have been directed toward separating the rate schedules of generation facilities fuelled between renewables and gas fired generation. Socal is attempting to shift gas fired QFs to longer term schedules in light of the recent higher gas prices. Auction After a nervous night when only one bid had come to the state's Internet site by midnight on Tuesday, California officials were happy to announce that they had almost 40 bids at an average of 6.9 cents per kilowatt-hour, below the 7.4 cent real cap state officials had set internally as the threshold between doable and impossible. This was well above the 5.5 cent ceiling the governor had publicly stated as the preferred level. Davis will now turn the negotiating process over to David Freeman, who heads the Los Angeles electric agency and is generally considered the dean of public-private utilities in the west. One thing to note, the State of California has no intention of any credit guarantees for the bids with the Department of Water Resources. Several California legislators have made it very clear that they do not want the state to be ultimately responsible for these power purchases.

Eric, If you could, in the future send this stuff to Donnita also. I have already forwarded this to her this time. Her email address is [email protected] Thanks. -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Wednesday, November 08, 2000 4:33 PM To: [email protected]; [email protected]; Bass, Jason; [email protected] Subject: Telluride E-Ride Newsletter ---------------------- Forwarded by Eric Bass/HOU/ECT on 11/08/2000 04:32 PM --------------------------- [email protected] on 11/08/2000 04:57:04 PM To: [email protected] cc: Subject: Telluride E-Ride Newsletter HELLO AGAIN E-RIDERS! Yes, the snow has started to come down! In very big ways! In fact, Telluride has received over 3 feet of fresh powder since October 1 and the temperatures have been frigid?which makes for excellent snowmaking conditions. Winter has come, and you know what that means ? YES! Time to strap on some boards and make some turns! SNOW REPORT As the snow has begun to come with increasing regularity, you can imagine the local attitude begins to buoy. At lunch the other day, when we looked out the window and saw the big flakes coming down, we made a loud whoop with our waiter, causing all heads in the restaurant to turn our way. But when the other diners saw the white stuff, EVERYONE started buzzing with the anticipation. Folks are getting ready for the season. For a sneak preview, check out the photo of the day at www.telluride-ski.com/dayphoto.html. BARGAINS & DEALS The best-case scenario for skiing Telluride is to live here. But the NEXT best-case scenario is that you get a screaming deal to vacation here. And that's what Telluride and Mountain Village Visitor Services has for you. Check out these packages for round-trip air, lodging and skiing from some of America's biggest hubs: Dallas Special: $831 per person - 5 nights lodging, 4 days skiing and roundtrip air to Montrose Houston Special: $814 per person - 5 nights lodging, 4 days skiing and roundtrip air to Montrose Chicago Special: $825 per person - 5 nights lodging, 4 days skiing and roundtrip air to Montrose Miami Special: $929 per person - 5 nights lodging, 4 days skiing and roundtrip air to Montrose To get any of these specials, call 1-888-288-7360. If you choose to put together a package on your own, check out the lodging deals at www.telluride-ski.com and click on HOT DEALS. WHAT'S NEW You can never have too much snow. With that in mind, the Telluride Ski Resort installed a new snowmaking system this summer that guarantees that every lift pod will have coverage on at least one run all season long! Yep. Lifts 1, 4, 5, 6, 7 and 9 will have better conditions for riding and skiing from beginning to end. As the hipper folks say, the turns will be "tasty." The tastiest new addition to the mountain, however, is Allred's, a new 140-seat restaurant that is guaranteed to delight even the most discriminating diners. Located mid-mountain at the gondola Station St. Sophia, Allred's will serve as a private club by day in the winter, an upscale lunch spot in the summer and a fine dining experience in the evenings year-round. More on this epicurean dream in later e-rides. For dinner reservations, call 970-728-7474. One other great new thing: It's easier to get to Telluride than ever before. You can now fly to Montrose EVERY DAY from Dallas/Ft. Worth on American Airlines?but the flight will only have 129 seats, so be sure your body is in one of them! WHAT'S HAPPENING Of course the most important thing on the Telluride calendar is November 22, the Official Opening Day. But there are other things worth mentioning. Like the Sneak Preview of the mountain on November 21. For one day only you can ski Telluride for $20, and all proceeds go to the Telluride Ski and Snowboard Club. After the Donation Day, you can still get good deals. From November 21 through December 16, Telluride hosts its annual Ski Free & More program. What's it entail? Exactly what it says. Skiers and riders staying at participating lodges in the towns of Telluride and Mountain Village can choose a free lift ticket, a free ski clinic, a free lunch or a free half-day of childcare for each night they stay. For more information call 888-288-7360. And if you're looking forward to having a ball, why not do it right at the annual Black & White Affair? On November 25, the Telluride Ski and Snowboard Club hosts this gala event at the luxurious Telluride Conference Center. Dress up and dance off your turkey. No one puts on a ball like Telluride! SLICE OF LIFE Imagine being over 50 years old and never having seen any snow! Such was the case for my friend Sarah, who recently moved to Telluride from the Caribbean. She and her daughters arrived late this summer, and when the snows began to fall a few weeks ago, they were in rapture! Sarah ran outside and began to dance around (to her 17-year-old daughter's absolute embarrassment!) However, the daughters both caught the enthusiasm and built their first snowman ever. The snowman , of course, had a perfect carrot nose.. An organic carrot, no less. Hey, this is Telluride. Only the best for our snowmen. AND SO, E-RIDERS, That's all for this letter. Hope you're planning your trip to Telluride, where the snow is always whiter and the lines are always short. See you on the slopes! Rosemerry WHO'S WRITING THIS ANYWAY? Against her will, Rosemerry Wahtola Trommer learned to ski in Telluride six years ago. But after a few turns, she fell ? in love with the sport. She lives with her husband and cat at the base of Lift 7?an ideal spot for getting first chair of the morning.

This is the Los Angeles Times article Mark has been working on... California; Metro Desk Electricity Cost Data Spread the Blame Power: Many suppliers charged more than the firms that Davis has pilloried, records show. RICH CONNELL; ROBERT J. LOPEZ; DOUG SMITH TIMES STAFF WRITERS 07/10/2001 Los Angeles Times Home Edition B-1 Copyright 2001 / The Times Mirror Company SACRAMENTO -- California's energy meltdown involves a far more diverse group of wholesale electricity merchants than suggested by Gov. Gray Davis, who has aggressively blamed a handful of Texas companies, state records show. During the first three months of this year--one of the worst stretches of power shortages during the crisis--an assortment of public and private entities charged the state prices averaging well above some of those paid to Texas firms, according to documents released to The Times on Monday by the Department of Water Resources, which now buys power for California. Among those setting and collecting some of the highest average prices per megawatt-hour were a Canadian public utility, a subsidiary of San Diego Gas & Electric's parent company, and the Los Angeles Department of Water and Power, the report shows. Their average prices ranged from $498 a megawatt-hour charged by Powerex, the trading arm of British Columbia's BC Hydro, to $292 an hour by the DWP. In fact, some of the biggest private power companies singled out for criticism by Davis and other state officials--Dynegy Inc., Duke Energy and Mirant--charged less than the average prices the state paid for the period. Those companies' average prices ranged from $146 to $240 per megawatt-hour, according to an analysis of the documents. The figures cover the various types of spot and longer-term power purchased by the state during three months that included rolling blackouts and more than a month of razor-thin reserves, leading to continuous power emergencies. Davis spokesman Steve Maviglio said the governor has directed his sharpest barbs at private out-of-state generators because, in general, they have reaped the highest profits over the longest period. "You have to look at the whole picture," Maviglio said. "The governor was expressing his displeasure with the arrogance of the generators who wear cowboy hats," he said. "Their profits were 100% to 400% above last year. . . . Just because there are other entities who are charging us more [per megawatt-hour] doesn't change the fact that we are getting ripped off by companies from Houston, Tulsa, Atlanta or Charlotte." The report by the Department of Water Resources was provided to The Times on the same day the state released 1,700 pages of documents on California's electricity purchases on the volatile spot market for the year's first quarter. The records detail how the state spent nearly $8 billion buying power in the first five months of the year, and underscore the complexity of the state's energy problem. They also show that patterns of high prices are not limited to a few generators. Oscar Hidalgo, a spokesman for the water resources agency, said that the reports together show that prices were extremely volatile early in the year. "All the prices were high," he said, noting the downward trend in costs since his agency began buying power in mid-January. The average price per megawatt-hour for all state purchases went from $316 in January to $243 in May. Spot prices fell from an average of $321 per hour to $271, the reports show. In the first quarter of the year, some public entities' prices far exceeded those of the biggest private companies. For example, Houston-based Enron, one of the nation's biggest power traders, charged an average of $181 per megawatt-hour. And Atlanta-based Mirant, which sold the most to the state, a total of $706 million, charged an average of $225 per megawatt-hour. By contrast, a Calgary, Canada, firm, TransAlta Energy, averaged $335 a megawatt-hour, and the Sacramento Municipal Utility District had average charges of $330 per megawatt-hour. A spokesman for Enron, Mark Palmer, said recently that the "vilification of Enron was based on politics, not facts." Spokesmen for BC Hydro could not be reached late Monday to comment on its huge sales to the state. In the past, the utility has defended its pricing practices, saying it has offered last-minute hydroelectric power that helped keep California's lights on. A spokeswoman for Sempra, the parent company of San Diego Gas & Electric, said late Monday the company was unable to comment because it had yet to see the figures released by the state. Officials at DWP, who could not be reached Monday evening, have defended their pricing, saying the costs of producing the power needed by the state were extremely high. More Power Bought Than Projected Hidalgo, of the Department of Water Resources, said his agency's efforts, coupled with conservation by business and consumers and falling natural gas prices, have begun to tame the state's market. Still, the state had to purchase $321 million in power in April and May, about 10% more than Davis' analysts had projected. Hidlago said that was because of hot weather in May and other supply problems in April. He said reports will show that power purchases fell short of state projections in June and early July. The reports also will show that prices paid by the state were down in June and July, partly because spot prices have fallen sharply, often to well under $100 a megawatt-hour. A summary Department of Water Resources report released Monday credited Davis' program of nurturing new power generation and establishing long-term power contracts with with "moving the California electric energy industry closer to normalcy." Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

FYI ---------------------- Forwarded by David W Delainey/HOU/ECT on 11/30/2000 01:23 PM --------------------------- Raymond Bowen 11/30/2000 12:18 PM To: David W Delainey/HOU/ECT@ECT cc: Dorie Hitchcock/HOU/ECT@ECT, Mike McConnell/HOU/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT, Jeffrey McMahon/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron, Mark Frevert/NA/Enron@Enron, Greg Whalley/HOU/ECT@ECT Subject: Re: 2001 ENA/EGM/EIM CUSTOMER SKI PROGRAM Dorie, I share Dave's skepticism. Ray Bowen David W Delainey 11/30/2000 11:26 AM To: Dorie Hitchcock/HOU/ECT@ECT cc: Mike McConnell/HOU/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT, Raymond Bowen/HOU/ECT@ECT, Jeffrey McMahon/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron, Mark Frevert/NA/Enron@Enron, Greg Whalley/HOU/ECT@ECT Subject: 2001 ENA/EGM/EIM CUSTOMER SKI PROGRAM Dorie, I have to question the effectiveness of this program. Over the years, it appears that more spots are being filled by Enron people then customers. The effectiveness of this forum from a customer point of view is questionable. I vote to kill it. Please forgive the approach - but I would like to provoke a discussion with my partners. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 11/30/2000 11:20 AM --------------------------- From: Dorie Hitchcock 11/30/2000 06:40 AM To: Sylvia S Pollan/HOU/ECT@ECT, Robyn Zivic/NA/Enron@Enron, Andrew H Lewis/HOU/ECT@ECT, Geoff Storey/HOU/ECT@ECT, Martin Cuilla/HOU/ECT@ECT, Patrice L Mims/HOU/ECT@ECT, Kevin Ruscitti/HOU/ECT@ECT, Kelli Stevens/HOU/ECT@ECT, Tom Donohoe/HOU/ECT@ECT, Joe Parks/Corp/Enron@ENRON, Janet H Wallis/HOU/ECT@ECT, Gary Bryan/HOU/ECT@ECT, Jill T Zivley/HOU/ECT@ECT, Brian Bierbach/NA/Enron@Enron, John Craig Taylor/HOU/ECT@ECT, Gary Hickerson/HOU/ECT@ECT, Daniel Reck/HOU/ECT@ECT, George McClellan/HOU/ECT@ECT, Mark Tawney/HOU/ECT@ECT, Jere C Overdyke/HOU/ECT@ECT, Larry Lawyer/NA/Enron@Enron, Brent A Price/HOU/ECT@ECT, Eric Gonzales/LON/ECT@ECT, Cindy Skinner/HOU/ECT@ECT, John L Nowlan/HOU/ECT@ECT, Don Schroeder/HOU/ECT@ECT, Doug Leach/HOU/ECT@ECT, Bryan Burnett/HOU/ECT@ECT, Wendy King/Corp/Enron@ENRON, Tim Battaglia@Enron, Douglas B Dunn/HOU/ECT@ECT, Rodney Malcolm/HOU/ECT@ECT, Billy Lemmons/Corp/Enron@ENRON, David Howe/Corp/Enron@ENRON, Mark Frevert/NA/Enron@Enron, John J Lavorato/Corp/Enron@Enron, David W Delainey/HOU/ECT@ECT, Mike McConnell/HOU/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT, Jeffrey McMahon/HOU/ECT@ECT, Raymond Bowen/HOU/ECT@ECT, Jeffery Ader/HOU/ECT@ECT, Phillip K Allen/HOU/ECT@ECT, John Arnold/HOU/ECT@ECT, Edward D Baughman/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT, Wes Colwell/HOU/ECT@ECT, Derek Davies/CAL/ECT@ECT, Mark Dana Davis/HOU/ECT@ECT, Joseph Deffner/HOU/ECT@ECT, Paul Devries/TOR/ECT@ECT, Janet R Dietrich/HOU/ECT@ECT, Jeff Donahue/HOU/ECT@ECT, Stephen H Douglas/HOU/ECT@ECT, W David Duran/HOU/ECT@ECT, Chris H Foster/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT, Rogers Herndon/HOU/ECT@ect, Scott Josey/Corp/Enron@ENRON, C John Thompson/Corp/Enron@ENRON, Fred Lagrasta/HOU/ECT@ECT, Eric LeDain/CAL/ECT@ECT, Laura Luce/Corp/Enron@Enron, Thomas A Martin/HOU/ECT@ECT, Jonathan McKay/CAL/ECT@ECT, Michael L Miller/NA/Enron@Enron, Rob Milnthorp/CAL/ECT@ECT, Jean Mrha/NA/Enron@Enron, Scott Neal/HOU/ECT@ECT, David Oxley/HOU/ECT@ECT, Ozzie Pagan/HOU/ECT@ECT, Beth Perlman/HOU/ECT@ECT, Kevin M Presto/HOU/ECT@ECT, Brian Redmond/HOU/ECT@ECT, Hunter S Shively/HOU/ECT@ECT, James D Steffes/NA/Enron@Enron, Fletcher J Sturm/HOU/ECT@ECT, Bruce Sukaly/Corp/Enron@Enron, Mike Swerzbin/HOU/ECT@ECT, Scott Tholan/Corp/Enron@Enron, Barry Tycholiz/CAL/ECT@ECT, Frank W Vickers/HOU/ECT@ECT, Greg Wolfe/HOU/ECT@ECT, Max Yzaguirre/NA/Enron@ENRON, John Zufferli/CAL/ECT@ECT, Deirdre McCaffrey/HOU/ECT@ECT, Jennifer Shipos/HOU/ECT@ECT cc: Subject: 2001 ENA/EGM/EIM CUSTOMER SKI PROGRAM Winter is just around the corner and the new ski season will be opening soon. Please review the proposed information below, regarding the ENA/EGM/EIM Customer Ski Program, to help us determine what our needs will be for the 2001 season. Location: Beaver Creek, Colorado Preliminary Dates: February 21 - March 14, 2001 Approximate Cost Per Person: $2,600 (based on 82 participants) The preliminary dates have been divided into 6 trips: TRIP DATES TOTAL # OF BEDS Trip 1 Wed, February 21 - Sat, February 24 11 Trip 2 Sun, February 25 - Wed, February 28 17 Trip 3 Wed, February 28 - Sat, March 3 13 Trip 4 Sun, March 4 - Wed, March 7 13 Trip 5 Wed, March 7 - Sat, March 10 13 Trip 6 Sun, March 11 - Wed, March 14 15 The program cost per person includes: ? Four days/three nights accommodations in luxurious private homes in the premier Holden Road/Borders Road area of Beaver Creek with daily maid service ? Animated invitation with on-line registration ? Round-trip airport ground transportation ? Experienced property hosts ? Daily lift tickets and ski instruction ? Ski equipment rental ? Catered dinner two nights ? Catered breakfast daily ? Off-site dinner coordination ? Alternate activity coordination ? Private vans at each house ? One massage with experienced in-house massage therapists ? Enron promotional gift item ? Pre-program administration and coordination ? On-site operation If you are interested in participating in the 2001 ski program, please submit an email request to me no later than Friday, December 8th, including the following information: Name Company Department Telephone Fax Number of People Choice of Dates (1st, 2nd & 3rd) Company # RC # The week of December 11th, all requests will be compiled for review and final approval. Questions should be directed to my attention at (713) 853-6978.

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 08/17/2000 04:00 PM --------------------------- From: Doug Leach 08/17/2000 10:00 AM To: Vince J Kaminski/HOU/ECT@ECT cc: Subject: Re: Cairn Gas Purchase Bid fyi ---------------------- Forwarded by Doug Leach/HOU/ECT on 08/17/2000 09:59 AM --------------------------- Douglas S Parsons@ENRON_DEVELOPMENT 08/15/2000 09:30 AM To: Doug Leach/HOU/ECT@ECT cc: Marc De La Roche/HOU/ECT@ECT Subject: Re: Cairn Gas Purchase Bid I can appreciate and share your objective. Earlier today I sent a separate note to Vince forwarding your concerns and asking again for his assistance. I'll start there and if needed I'll contact Michael Popkin's structuring group. However, before getting too many people involved I want to see what feedback we get from Cairn after they've discussed the offers internally this week. Doug Leach@ECT 08/15/2000 08:37 AM To: Douglas S Parsons/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Marc De La Roche/HOU/ECT@ECT Subject: Re: Cairn Gas Purchase Bid I gave you several clear alternatives such as contacting Vince's structuring group, Michael Popkin's Southern Cone structuring group and a long discussion regarding the pricing and suggested "collar." I also asked if you had spoken to your customer about what they were willing to pay, but that was a non starter. Trust me, I have seen almost every bad deal Enron has entered into or attempted to enter into and I am trying to get Metgas to objectively relook at their offer to Cairn become it becomes another bad deal. Douglas S Parsons@ENRON_DEVELOPMENT 08/15/2000 08:31 AM To: Doug Leach/HOU/ECT@ECT cc: Subject: Re: Cairn Gas Purchase Bid That's fine, but don't you think I would also prefer not receiving criticism that assumes I didn't do something and provides no clear alternative. Doug Leach@ECT 08/15/2000 07:52 AM To: Douglas S Parsons/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Marc De La Roche/HOU/ECT@ECT, Bobby Farris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: Cairn Gas Purchase Bid You spoke to me once and I gave you my opinions which were contrary to your resultant offer to Cairn. Currently, I have better things to do with my time. Douglas S Parsons@ENRON_DEVELOPMENT 08/15/2000 12:10 AM To: Doug Leach/HOU/ECT@ECT cc: Marc De La Roche/HOU/ECT@ECT, Bobby Farris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: Cairn Gas Purchase Bid I talked to Vince after we hung up and his only suggestion was to call Sandeep Kohli. I spoke with Marc and yourself four times on this matter over a 3 day period and given the timing, I put forth a non-binding offer, after discussing it further with Bobby, based on the information I had that appears to position us close to our competitors offers. We haven't committed ourselves and should we be selected for negotiations there are numerous variables to affect the outcome. If you've got any suggestions for a better deal, please advise. Doug Leach@ECT 08/14/2000 07:45 AM To: Douglas S Parsons/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Marc De La Roche/HOU/ECT@ECT, Bobby Farris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: Cairn Gas Purchase Bid I strongly disagree with the pricing and structure of your non-binding offer to Cairn. This reminds me of the debacle in Brazil. You should have contacted Vince Kaminski's research group as we talked about before an offer was made. This is a bad deal. Douglas S Parsons@ENRON_DEVELOPMENT 08/12/2000 01:51 AM To: Doug Leach@ECT, Marc De La Roche@ECT cc: Subject: Cairn Gas Purchase Bid Doug & Marc, FYI, please let me know if you think we're totally off base. I appreciate your help. Regards, Doug ---------------------- Forwarded by Douglas S Parsons/ENRON_DEVELOPMENT on 08/12/2000 01:48 AM --------------------------- Douglas S Parsons 08/11/2000 06:24 AM To: Bobby Farris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: F B Virani/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ujjwal Dey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Nilesh Vaishnav/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Cairn Gas Purchase Bid Bobby, After meeting with Cairn today in Delhi, my perception is that our offer was received well. They were more open and relaxed then they were on Wed. morning and made several encouraging comments about our price range, (once we talked through the price movements), and the seriousness of our gas related activities on the West Coast of India, in light of the IOC agreement. I think the overall package is attractive to them and no serious objections were raised. We did talk to some extent about the guarantees, but we didn't get too far and they're willing to accept at this point that what's acceptable to the LNG suppliers, should be suitable for their needs. However, they would like to understand the corporate structure and assets of Enron Energy Marketing a little better and I told them I would get back to them on that point. David and Ajay were up in Hazira yesterday looking at some property for their gas treatment facility, which apparently is across the road from pipeline access. While there they went and looked at Shell's proposed LNG site after walking the last 1 km, inaccessible to their 4wd vehicle and not surprisingly found a beach. In summary, here is what we offered on a non-binding basis: Six year production plateau 85% TOP $3.67/MMBtu Net, at a base of $18/bbl Brent, with point of sale at the tail-end of the gas processing plant Floor & Cap of $15.50 - $27.00/bbl Price movement: +/- $1.00/ bbl from the $18/bbl base price (on a 3 mo. rolling average) equals +/- $0.145/MMBtu fixed on a quarterly basis Guarantees: Same protection we're providing the LNG suppliers under the Trust Retention Account I appreciate everyone's help in submitting this offer. Thanks, Doug

Here is the information regarding the presentation done by AGENCY.COM. The BEA Users Conference is being held in San Francisco, CA 2/21-2/24. The conference has over 2,000 registered users representing many types of companies. About the Session and Presentation On Wednesday, February 23 at 11:00 an hour long session was to open to any registered conference attendee. Around 200 (very rough guess) people attended the session. The session was moderated by Scott Dietzen, CTO BEA Server Division and was described as 'Web E-Commerce Solutions: Using Best of Breed Technologies'. The session included 4 panel members from Calico Commerce (an ISV), Idea Integration (an integrator), Cygent (an ISV) and AGENCY.COM. Each of the 4 panel members gave a 12 minute presentation then the session was turned over for general questions and answers. Joe Tatem of AGENCY.COM went last and spoke about the web development marketplace: where it was and where it needed to head. Like the other panel members he described his company and gave a little sales pitch for BEA Weblogic. Tatem then presented a case study as an example of some of their work. This example was of AGENCY.COM's work for Enron on EnronOnline. His case study consisted of 2 slides. The first slide had screen images of EnronOnline: one was the EnronOnline home page and the second was the quotes page populated with some products. The quotes page was 'overlayed' on the home page and obscured the EnronOnline banner on the bottom so that only the 'ne' at the end showed. The Enron logo (the counter-clockwise 45-degree logo was clearly visible. He talked about it being a Trading Extranet site but said he could not name the customer. He described that real time prices for products were being displayed to customers. He then showed the next slide which gave a high level overview of the application architecture for EnronOnline. This slide contains details about real time server (RTServer) and its associated application server (including the RMI communication mechanism). He made a comment about how they were particularly proud of the real time piece and how it was designed and how it worked. This slide also contained a reference to the fact EnronOnline uses Oracle 8i. He also mentioned Jesica as the content management piece and indicated that they were looking at other 3rd party products to replace that in their future projects. This slide also contains a reference to StackManager and he indicated that it was developed by the unamed client and not by AGENCY.COM. He also talked about ShockWave plugin being used in the browser to receive the real time quotes. Only one question was asked from the audience during his showing of the technical architecture slide. This question (paraphrased) was: When you use RMI between the web server and the app server how many connections do you use. He replied (paraphrased): one per thread. The questioner then asked something else that I assumed was a technical detail about how WebLogic RMI worked. Tatem replied incorrectly and a BEA employee responded with the right answer. About the Handouts of the Presentation BEA tried to make available hard copies of all presentation slides in each session. They setup a series of shelves that were numbered for each session. The documents were available starting Monday during the registration process and throughout the conference. On Monday evening I went to pick up hard copies of the sessions for which I was interested. About a third of the handouts for the sessions were not available. I did not notice whether the one for above mentioned presentation was available. (I did not expect it to one of the more interested ones.) During some of the sessions BEA handed out copies to those present. I did not see any handed out during the above mentioned session. After the session was over I called Jay Webb and told him of the above details. After telling Jay I saw Scott Dietzen from BEA in the hallway. (I had met him twice before.) I told Dietzen that the presentation that AGENCY.COM did in his panel was about Enron. (We had already discussed the project with Dietzen when he visited our Houston office.) I told him that AGENCY.COM was not supposed to reveal any information concerning the project. At this time I did not know that hard copies of the presentation were available. I told Dietzen that if they did become available that the portion about EnronOnline should not be distributed. Dietzen said he was not aware of the problem with discussing the project. He apologized and said he would not distribute any handouts if he received them. Sometime later on Wednesday I went to the rack of presentation handouts and there was one available for the above mentioned session. I do not know how long they were available (and I don't think Dietzen did either). There were only 2 or 3 copies left and I took all of them. (BEA usually put out many copies in the rack so I don't know how many were actually picked up.) The hard copies are PowerPoint printouts that include room for notes so the slides are very small making it difficult to read. When the slides were shown on the screen during the session they were very clear. Also, during some of the sessions (not the one where AGENCY.COM presented) I attended there was some question about the availability of the handouts and someone from BEA would answer something about the web. I assumed that at some point in the near future they might be making copies of the presentations available on the BEA web site. I will try to confirm this tomorrow (Thursday). I checked the web site a few minutes ago and the presentations are not there. I will followup with any more details if I remember something else or if there are any further developments. Thanks, Kevin Montagne Voice: 713-853-1903 Cell: 281-703-5779 Pager: 800-893-4390

I replied that we do not want PGE doing anything unless they coordinate re: Bankruptcy with Michael Tribolet and re: legislation with Jeff D. -----Original Message----- From: TOMPKINS, ROBIN Sent: Wednesday, August 29, 2001 9:12 AM To: Kaufman, Paul Subject: Fwd: RE:New Unofficial Committee Contacting Decision Makers see additional note from Doug Nichols. -----Original Message----- Date: 08/29/2001 09:10 am (Wednesday) From: DOUGLAS NICHOLS To: TOMPKINS, ROBIN Subject: Fwd: RE:New Unofficial Committee Contacting Decision Makers This is the latest status on Howard's effort - PGE is included in the "in favor" group in Howard's message - but both Al and I have since let him know he should not include us as being "in favor" unless and until we've coordinated this with Enron - I'm relying on you to do that. Time is very short - Howard needs to be moving on this now if he has any shot at all of influencing the outcome. While I agree the message ought to be delivered, I'm not optimistic there is time for the legislature to do anything else at this point. If nothing else, it would be good let the decision makers know that their plan may not have the hoped for result, so they can't say no one told them. dn -----Original Message----- Date: 08/28/2001 09:59 pm (Tuesday) From: AL ALEXANDERSON To: "[email protected]".IXGate.WIZ CC: DOUGLAS NICHOLS Subject: RE:New Unofficial Committee Contacting Decision Makers Doug and I have been debating wether there might be a broader Enron plan to support the legislation even with the 1 billion shortage to sellers. We're still trying to get Enron guidance on this. Possibly we'd rather have an expensive solution instead of no solution. I'm traveling with my cell phone all of tomorrow and Doug is working on Enron Central. Please stand by in terms of adding our name to the agressive list. Sorry for the mixed signals. al >>> "Howard J. Weg" <[email protected]> 08/28/01 09:35PM >>> I have not heard back from all members of the Unofficial Committee regarding my email dated August 27, 2001 with respect to the proposal to contact the Governor and Legislators regarding the pending legislation on SCE. Some have suggested that the message needs to be stronger and others have suggested that the message is too strong. Our Ex Officio members BPA and WAPA want it to be clear that they are not involved in any way with addressing the state government on this or other issues. As you know, I want very much to reach as broad of a consensus on this action as is possible, and to protect the interests of all members. Virtually all members agree that a bankruptcy case for or litigation against SCE would probably not be a good thing and we do not want to advocate for bankruptcy or litigation. After all, the Unofficial Committee was organized to provide a different approach generally. The purpose of contacting the Governor and the Legislature is to let them know that the legislation they are now considering, which leaves SCE about $1 billion short on the proposed financing to pay creditors, may cause some other sellers to take precipitous action in filing an involuntary petitition or initiating litigation or arbitration that could delay or prevent the financing at even the lower $2.9 billion level, which will adversly affect SCE and all creditors generally. We should point out that not all sellers are in agreement on what action will be taken. The message is not intended to threaten anything and it is not necessarily designed to stop legislation altogether, only legislation that might actually make the situation worse for all sellers and SCE. The tone of the presentation, if we make one, will be low key, non threatening, and in the spirit of helping the legislature and the Governor design a package that will avoid the bankruptcy, litigation and other alternatives that others might be forced to consider if the bill is passed, leaving the energy sellers out in the cold. If there remain some members of the Committee that are not willing to be associated with the message outlined above, then I propose that we give such members the alternative of remaining members of the Unofficial Committee and allowing us, if asked, to identify any such members that prefer not to be a part of the message although they want to support an approach that avoids litigation and bankruptcy for SCE. I understand that the LADWP and Coral Power would like this approach adopted. As I explained in my prior email, it has been suggested that the proposed bill that leaves SCE short by a billion dollars will likely pass after Labor Day and before the Sept 14 adjournment. That is why timing is important. Those of you that have not responed, please respond. Those of you that were concerned that the message was unclear, please review this email and consider or reconsider your positions, as the case may be. As of right now, there are only 11 votes: 9 in favor and 2 against. The polls are still open so please let me know your position. You should be aware that the City of Glendale notified me that it determined that actual or potential conflicts of interest with the Unofficial Committee required it to resign from the Unofficial Committee.

This is the Los Angeles Times article Mark has been working on... California; Metro Desk Electricity Cost Data Spread the Blame Power: Many suppliers charged more than the firms that Davis has pilloried, records show. RICH CONNELL; ROBERT J. LOPEZ; DOUG SMITH TIMES STAFF WRITERS 07/10/2001 Los Angeles Times Home Edition B-1 Copyright 2001 / The Times Mirror Company SACRAMENTO -- California's energy meltdown involves a far more diverse group of wholesale electricity merchants than suggested by Gov. Gray Davis, who has aggressively blamed a handful of Texas companies, state records show. During the first three months of this year--one of the worst stretches of power shortages during the crisis--an assortment of public and private entities charged the state prices averaging well above some of those paid to Texas firms, according to documents released to The Times on Monday by the Department of Water Resources, which now buys power for California. Among those setting and collecting some of the highest average prices per megawatt-hour were a Canadian public utility, a subsidiary of San Diego Gas & Electric's parent company, and the Los Angeles Department of Water and Power, the report shows. Their average prices ranged from $498 a megawatt-hour charged by Powerex, the trading arm of British Columbia's BC Hydro, to $292 an hour by the DWP. In fact, some of the biggest private power companies singled out for criticism by Davis and other state officials--Dynegy Inc., Duke Energy and Mirant--charged less than the average prices the state paid for the period. Those companies' average prices ranged from $146 to $240 per megawatt-hour, according to an analysis of the documents. The figures cover the various types of spot and longer-term power purchased by the state during three months that included rolling blackouts and more than a month of razor-thin reserves, leading to continuous power emergencies. Davis spokesman Steve Maviglio said the governor has directed his sharpest barbs at private out-of-state generators because, in general, they have reaped the highest profits over the longest period. "You have to look at the whole picture," Maviglio said. "The governor was expressing his displeasure with the arrogance of the generators who wear cowboy hats," he said. "Their profits were 100% to 400% above last year. . . . Just because there are other entities who are charging us more [per megawatt-hour] doesn't change the fact that we are getting ripped off by companies from Houston, Tulsa, Atlanta or Charlotte." The report by the Department of Water Resources was provided to The Times on the same day the state released 1,700 pages of documents on California's electricity purchases on the volatile spot market for the year's first quarter. The records detail how the state spent nearly $8 billion buying power in the first five months of the year, and underscore the complexity of the state's energy problem. They also show that patterns of high prices are not limited to a few generators. Oscar Hidalgo, a spokesman for the water resources agency, said that the reports together show that prices were extremely volatile early in the year. "All the prices were high," he said, noting the downward trend in costs since his agency began buying power in mid-January. The average price per megawatt-hour for all state purchases went from $316 in January to $243 in May. Spot prices fell from an average of $321 per hour to $271, the reports show. In the first quarter of the year, some public entities' prices far exceeded those of the biggest private companies. For example, Houston-based Enron, one of the nation's biggest power traders, charged an average of $181 per megawatt-hour. And Atlanta-based Mirant, which sold the most to the state, a total of $706 million, charged an average of $225 per megawatt-hour. By contrast, a Calgary, Canada, firm, TransAlta Energy, averaged $335 a megawatt-hour, and the Sacramento Municipal Utility District had average charges of $330 per megawatt-hour. A spokesman for Enron, Mark Palmer, said recently that the "vilification of Enron was based on politics, not facts." Spokesmen for BC Hydro could not be reached late Monday to comment on its huge sales to the state. In the past, the utility has defended its pricing practices, saying it has offered last-minute hydroelectric power that helped keep California's lights on. A spokeswoman for Sempra, the parent company of San Diego Gas & Electric, said late Monday the company was unable to comment because it had yet to see the figures released by the state. Officials at DWP, who could not be reached Monday evening, have defended their pricing, saying the costs of producing the power needed by the state were extremely high. More Power Bought Than Projected Hidalgo, of the Department of Water Resources, said his agency's efforts, coupled with conservation by business and consumers and falling natural gas prices, have begun to tame the state's market. Still, the state had to purchase $321 million in power in April and May, about 10% more than Davis' analysts had projected. Hidlago said that was because of hot weather in May and other supply problems in April. He said reports will show that power purchases fell short of state projections in June and early July. The reports also will show that prices paid by the state were down in June and July, partly because spot prices have fallen sharply, often to well under $100 a megawatt-hour. A summary Department of Water Resources report released Monday credited Davis' program of nurturing new power generation and establishing long-term power contracts with with "moving the California electric energy industry closer to normalcy." Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Mary Hain has resigned her position with Enron. Please remove her from all your mail lists. Thank you. Lysa Akin Gov't Affairs - Sr. Admin. Ass't. Enron Capital & Trade Resources Corp. From: "Ferranti, Bill" <[email protected]> 03/21/2001 03:57 PM To: "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Ferranti, Bill" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Schoenbeck, Don" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Speer, Jack" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Early, Michael" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Forsyth, Pete" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Murphy, Paul" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Bliven, Ray" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]> cc: Subject: WP-02 Data Response <<PP-DS.AL-01.doc>> <<PP-DS.AL-02-03.doc>> <<PP-DS-008-009.doc>> Attached are responses to PP-DS/AL:001-003 and PP-DS:008-009. Bill Ferranti Murphy & Buchal LLP 503-227-1011 [email protected] - PP-DS.AL-01.doc - PP-DS.AL-02-03.doc - PP-DS-008-009.doc

As a follow up to my message last week on charges for Analysts, I am attaching the file that Financial Operations used to charge your RC with the $6,400 in monthly costs that I detailed below. I have received a few calls and E-mails stating that some reclasses need to be made because you no longer have an analyst in your group. The information used by Financial Operations to charge your RC was obtained from the Org Database. Please review the attached files for January and February to ensure that the proper RC was and is going to be charged. If you have any corrections, please contact Brian Heinrich at Ext. 5-7677 ASAP since journal entries will need to be processed by this Friday, March 3rd. If you have any questions, please call me. I just want to let everyone know that it is important that we continue to keep the Org Database updated as changes are made. It is and will continue to be the source of headcount information for Energy Operations. Thank you for your continued support in this process. Lisa Cousino x3-6343 --------------------- Forwarded by Lisa B Cousino/HOU/ECT on 03/01/2000 06:52 PM --------------------------- Brian Heinrich 02/28/2000 01:44 PM To: Lisa B Cousino/HOU/ECT@ECT cc: Subject: AA Headcount Lisa, This is the file we used for January, and the one for February. Brian Lisa B Cousino 02/24/2000 01:13 PM To: Kristin Albrecht/HOU/ECT@ECT, Thresa A Allen/HOU/ECT@ECT, Evelyn Aucoin/HOU/ECT@ECT, Bryce Baxter/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Theresa T Brogan/HOU/ECT@ECT, Diane H Cook/HOU/ECT@ECT, Kathryn Cordes/HOU/ECT@ECT, Lisa Csikos/HOU/ECT@ECT, Frank L Davis/HOU/ECT@ECT, Jennifer deBoisblanc Denny/HOU/ECT@ECT, Michael Eiben/HOU/ECT@ECT, Thomas Engel/HOU/ECT@ECT, Hunaid Engineer/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Mark Friedman/HOU/ECT@ECT, Randall L Gay/HOU/ECT@ECT, Scotty Gilbert/HOU/ECT@ECT, Carolyn Gilley/HOU/ECT@ECT, Sheila Glover/HOU/ECT@ECT, Mary G Gosnell/HOU/ECT@ECT, Donna Greif/HOU/ECT@ECT, D Todd Hall/HOU/ECT@ECT, Jeff Harbert/HOU/ECT@ECT, Bill D Hare/HOU/ECT@ect, Susan Harrison/HOU/ECT@ECT, Brenda F Herod/HOU/ECT@ECT, Carrie Hollomon/HOU/ECT@ect, John Jacobsen/HOU/ECT@ECT, Katherine L Kelly/HOU/ECT@ECT, Bob Klein/HOU/ECT@ECT, Roy Lipsett/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT, Michael E Moscoso/HOU/ECT@ECT, Gary Nelson/HOU/ECT@ECT, Dale Neuner/HOU/ECT@ECT, Eugenio Perez/HOU/ECT@ECT, Scott Pleus/HOU/ECT@ECT, Brent A Price/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT, Dorothy Ricketts/HOU/ECT@ECT, Stephen P Schwarz/HOU/ECT@ECT, Russ Severson/HOU/ECT@ECT, George Smith/HOU/ECT@ECT, Mary M Smith/HOU/ECT@ECT, Mary Solmonson/HOU/ECT@ECT, Jefferson D Sorenson/HOU/ECT@ECT, Martha Stevens/HOU/ECT@ECT, Robert Superty/HOU/ECT@ECT, Connie Sutton/HOU/ECT@ECT, Edward Terry/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT, Sheri Thomas/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT, Melissa White/HOU/ECT@ECT, Stacey W White/HOU/ECT@ECT, Rita Wynne/HOU/ECT@ECT, Pat Clynes/Corp/Enron@ENRON, Bennett Kaufman/HOU/ECT@ECT, Kimberly S Olinger/HOU/ECT@ECT, Laurel Adams/HOU/ECT@ECT, William Kelly/HOU/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT cc: Brian Heinrich/HOU/ECT@ect, Jennifer Blay/HOU/ECT@ECT, Kimberly Perkins/HOU/ECT@ECT, Angela Henn/HOU/ECT@ECT, Marvia Jefferson/HOU/ECT@ECT, Sandra R McNichols/HOU/ECT@ECT, Maria Sandoval/HOU/ECT@ECT, Alex Saldana/HOU/ECT@ECT, Cecilia Olvera/HOU/ECT@ECT, Chantelle Villanueva/HOU/ECT@ECT, Gretel Smith/HOU/ECT@ECT, Heather Choate/HOU/ECT@ECT, Irena D Hogan/HOU/ECT@ECT, Julissa Marron/Corp/Enron@ENRON, Kelly Templeton/Corp/Enron@ENRON, Lisa Shoemake/HOU/ECT@ECT, Lorraine Becker/HOU/ECT@ECT, Lynn Tippery/HOU/ECT@ECT, Ragayle Pellum/HOU/ECT@ECT, Rosalinda Resendez/HOU/ECT@ECT, Yvette G Connevey/Corp/Enron@ENRON, Patti Thompson/HOU/ECT@ECT Subject: Monthly Charges for Analysts on your RC report I wanted to let all of you know how you will be charged for Analysts if you currently have or will have one in your RC for the year 2000. The analyst program is being handled differently than it was in 1999. In addition to the normal salary, benefits and payroll taxes, you will also be charged an overhead administration fee for the program. You will be charged the following MONTHLY amounts for each analyst in the Detail Class code that I have indicated below: Detail Class Description Amount 1 Salaries and Wages $4,000 552 Benefits 774 557 Payroll Taxes 360 820 Corporate Services 1,266 Total MONTHLY Cost $6,400 The $4000 amount represents an average of all analyst salaries and does not indicate what the analyst in your RC is paid. This amount will not change in February as the $4000 already includes merit raise information for 2000. The $1266 represents the overhead costs of administering the program, including campus recruiting and office visits. When you look at your RC report, you will see a line item labeled "A and A Reclass" in each of the Detail Classes identified above. Enron North America is invoiced by Corp. for the costs of all analysts. Financial Operations makes a manual Journal Entry each month to charge the appropriate RC. Please check your January 2000 RC report and make sure you were properly charged for the correct number of analysts you have currently. If there are any errors, please let me know as soon as possible so that I can work with Brian Heinrich to have it corrected in February. Please continue to check your RC report each month going forward. Thanks. If you have any questions, please call me. Lisa Cousino x3-6343

Vince, FYI to give you background for tomorrow's telephone conference Steve is really a home-run hitter Mike ---------------------- Forwarded by Mike A Roberts/HOU/ECT on 04/12/2001 09:26 AM --------------------------- Enron North America Corp. From: Stephen Bennett @ ENRON 04/12/2001 09:02 AM To: Mike A Roberts/HOU/ECT@ECT cc: Subject: London Status Report Hi Mike, Before we meet with Vince tomorrow - I thought we should drop you a line and give you an idea as to what's been accomplished in the first week as well as some of the challenges and problems we've run into. This way we can make the most effective use of Vince's time. 1) Current Products and Customers In our first 3 days - we established 6 different customer groups - representing approximately 40 traders plus additional fundamentals and analytics folks. The groups are: UK Trading, Gas Fundamentals, Crude Trading, Weather Derivatives, Continental Power, and an internal trader newsletter. We've built the following framework to address these customers - the key deadlines are noted: 0800: UK Trading/Weather Derivatives/Fundamentals: Prepare a 1 to 5 day UK specific forecast and assess the 12z runs of the ECMWF (and ensembles), the AVN as well as EarthSat's 1-5 day outlook. The traders are particularly interested in the performance of the ECMWF as it feeds all of their demand models. We prepare a 1 page summary and give an idea as to any particular forecast biases - whether we feel things may come in warmer or colder than the model. We brief the traders and field questions then provide our report to the fundamentals group. ** In the future we would like to be able to gather raw data from the AVN and MRF to provide a series of choices which could be input into their demand models or at least be able to give them our "best pick" of guidance and how we feel things may deviate from that pick. 1030AM: Obtain the UK Met 6-10 and 1-5 day forecasts. Provide comment for UK Trading. 1200: UK Trading/Crude and Products/Weather Derivatives: Prepare a full qualitative analysis of 0z models (MRF/NOGAPS/CANADIAN/Ensembles). Produce a 6 to 10 day Europe forecast and make any needed adjustments to the 1 to 5 day forecast. Produce the Global Weather Report including a Global Executive Summary; Analysis of Teleconnections and their expected impact; 1 to 5 and 6 to 10 day forecasts compared to EarthSat; A 10 day city forecast table for European Cities along with the expected effect on heating demand and finally A "port status report" describing weather and port conditions in 11 worldwide ports. Update traders (UK and Wx Deriv) on changes or new trends in the 0z models. Provide a quality assessment of the UK Met 6 to 10 and 1 to 5 day forecast for UK Trading. 1330 (Mon-Wed): Brief the Crude and Products groups in London and Houston. 1600: Review 12z AVN for any major forecast changes and communicate changes to traders. Weekly: Produce a weather article for "Critical Mass" - internal trading newsletter. Of course between 1000 and 1330 we are looking closely at the US weather for support to you guys in Houston. I'm still writing the daily US Executive summary as well as producing a 6 to 10 day US forecast. 2) Requested Projects: * Gas Fundamentals has asked us to provide weather information for their morning report and website. They would like to be able to gather objective output from as many forecast models as we can get. * Weather Derivatives has asked for week ahead, month ahead, and seasonal outlooks for temperature and precipitation. They have also asked about creating a tradeable "NAO Index" and developing an in-house model for forecasting NAO. * Continental Power has asked for temperature and precipitation outlooks for power generation and hydro. * Gas Fundamentals, UK Trading, Continental Power, Weather Derivatives and Crude and Products have all asked for a European Summer Outlook for temperature and precipitation. We expect to have this completed tomorrow. * The research group has asked for assistance in gathering climate data across Spain for temperature and precipitation. 3) Leads to Follow Up On: * Elsa in Houston asked us to contact some of the Softs traders here and let them know once we were up and running. * Contact Chris Mahoney to determine if we can provide and additional support for Crude and Products. * Follow up on a potential morning breifing for Continental Power 4) Challenges: * We've been told that we will be moving locations next week - which might entail corrupting or loosing the software and hardware configurations that have taken almost a week to get fully established. It seems that this office functions on a "hot desk" system where people are constantly moving around. This will make it very difficult to stay connected - as well as very difficult for our customers to identify us. * Administrative detail take an inordinate amount of time. Assembling reports both physical and electronic can take nearly as long as actually preparing the reports! --- Mike, OK - I think that brings you up to speed. I've been amazed at the amount of feedback we've already gotten and we've only been here 3 days! On that note I wanted to let you know that I am fully committed to this project. It seems that we will not have a second meteorologist to assist Tony by my planned departure date on the 20th. As such - I can continue in my current role through my planned vacation - keeping me in London until the 27th - which is my current reservation back to Houston. I am also open to remaining in London beyond the 27th to ensure the success of this project. Hopefully this gives you a good idea as to what's gone on in the first few days here. We look forward to talking to you later today and with you and Vince tomorrow.

Mary Hain has resigned her position with Enron. Please remove her from all your mail lists. Thank you. Lysa Akin Gov't Affairs - Sr. Admin. Ass't. Enron Capital & Trade Resources Corp. From: "Ferranti, Bill" <[email protected]> 03/21/2001 04:41 PM To: "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Ferranti, Bill" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Schoenbeck, Don" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Speer, Jack" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Early, Michael" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Forsyth, Pete" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Murphy, Paul" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "Bliven, Ray" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]>, "'[email protected]'" <[email protected]> cc: Subject: WP-02 Data Response <<PN-DS-001-004.doc>> Attached is the response to PN-DS:001-004 and PN-AL:001-004. Bill Ferranti Murphy & Buchal LLP 503-227-1011 [email protected] - PN-DS-001-004.doc

FYI. From yesterday's editorial page in the WSJ. McFadden's one of the folks that signed the "manifesto." Best, Jeff ----- Forwarded by Jeff Dasovich/NA/Enron on 02/14/2001 09:02 AM ----- Elizabeth Linnell 02/14/2001 08:17 AM To: Jeff Dasovich/NA/Enron@Enron cc: Subject: WSJ California Needs Deregulation Done Right By Daniel McFadden 02/13/2001 The Wall Street Journal A26 (Copyright (c) 2001, Dow Jones & Company, Inc.) The electricity market in California has swung over its history from monopolization by industrialists in its early days to comprehensive regulation, then to partial deregulation in the 1990s, and now back toward substantial regulation and government intervention. In the past, each swing of the pendulum came from public frustration with the way this market operated, and each produced a result that the public again found unsatisfactory. But the memory of politicians and the public is short. The state is poised to repeat the mistakes of the last cycle of regulation. Measures passed by the California Legislature this month are an ill-conceived intervention that will lock the state into high energy costs and put it at a competitive disadvantage for years to come. Unless there is further action, the state will maintain subsidized retail prices that discourage conservation, while capping in-state wholesale prices in a manner that discourages construction of new in-state generation capacity and leaves Californians at the mercy of out-of-state generators. Government subsidization of electricity consumption will drain tax revenues that might be better used for education and other needs, encumber California's children with debt to pay the state's energy bills, and threaten the state's future ability to sell bonds for public projects. The immediate political cost of consumer outrage from higher electricity rates may be postponed, but the real economic cost promises to be massive. The sad thing is that this is all unnecessary. The source of the crisis was rigid regulation of retail prices in the face of rapid increases in wholesale prices driven by increased fuel prices and increased demand in the national electricity market. The only effective solution to the crisis is to make retail price regulation more flexible, so that consumers see the real economic cost of electricity and respond to high prices through conservation efforts that reduce demand and push prices down. On the supply side, the state should encourage construction of new in-state generation capacity through the right market signals, giving producers the opportunity to site plants and sell power under conditions comparable to other states. It's true that state action was needed to stabilize the electricity market, avoid immediate bankruptcy of the distribution companies, and assure continued delivery of energy. But this step will only postpone the day of reckoning unless sensible electricity pricing is introduced as well. To limit the impact of high prices on the poor, increasing block-rate tariffs can be used in which the rates for "lifeline" electricity use are kept low. These were effective in limiting demand for water during California's last drought, and are already used to promote energy conservation. A more aggressive version that pushes the rates in high-usage blocks to the real load-linked economic cost of electricity would provide an incentive that would stimulate conservation at the precise points that will do the most to moderate demand and push down wholesale prices. Consumers should have the opportunity to hedge against price spikes and average their payments to ease the pain of price volatility. The installation of load-sensitive meters should be accelerated so that consumers can respond to the economic price of the electricity they are consuming. This is new technology for U.S. utilities, but has operated well in France for years. On the supply side, the state and the Federal Energy Regulatory Commission could use their regulatory power to require that existing generators redirect excess profits to finance lifeline rates for retail customers and work off the hangover from previous electricity purchased and not paid for. However, care should be taken in dealing with generators to assure that every kilowatt hour that any generation facility can produce at less than the national wholesale price of electricity is in fact delivered to the market. The state needs to be very cautious about getting into the power business as an intermediary between generators and distributors. Government bureaucracies rarely show dexterity in dealing with private suppliers, and access to general government revenues dulls their incentive to operate efficiently. Negotiating long-term contracts right now, when California is in a weak market position and the out-of-state generators are in the driver's seat, is likely to put the state at a future competitive disadvantage. Consumers need to be reminded that money passed through the government to subsidize electricity comes out of their pockets just as surely as price increases, without the mitigating benefits of demand reduction.The lessons of history suggest that in making the Hobson's choice between a dysfunctional partially deregulated market and a fully-regulated one that promises to be even more dysfunctional, California is picking the greater of the two evils. If it fails to move to sensible electricity pricing in which both consumers and suppliers see the real economic price at the margin, it will face another, even more serious crisis in the not too distant future. --- Mr. McFadden, a professor of economics at the University of California, Berkeley, received the Nobel Prize in Economics last year. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Thursday January 20, 4:51 pm Eastern Time Company Press Release SOURCE: Enron Corp. Enron Hosts Annual Analyst Conference; Provides Business Overview and Goals for 2000 HOUSTON, Jan. 20 /PRNewswire/ -- Enron Corp. (NYSE: ENE - news) hosted its annual equity analyst conference today in Houston. Ken Lay, Enron chairman and chief executive officer, opened the conference by highlighting Enron's tremendous growth across all businesses and the outstanding 700 percent return to shareholders over the past decade. Enron presented key objectives for 2000: Continued strong growth in the core Wholesale Energy businesses. Break-out performance from Retail Energy Services. Rapid development of Enron Broadband Services. Enron's ability to extend core skills and competencies to new markets was a recurring theme throughout the day. Wholesale Energy Business Growth prospects remain strong for Wholesale Energy Operations and Services, Enron's largest business. Wholesale energy growth in North America is expected to be driven by the continuing deregulation of power markets in the United States and large-scale energy outsourcing by utilities and large energy consumers. Enron expects to continue to broaden its early lead across the European continent as markets quickly open to competition. Finally, Enron is rapidly expanding its wholesale presence in other markets such as Japan, where large customers will be permitted to choose their electricity provider in March 2000. EnronOnline will provide additional wholesale growth as incremental sales are generated through this innovative, Internet-based transaction system. Over 450 customers around the world have used EnronOnline and over 10,000 transactions have been completed since its introduction in late November 1999. Yesterday, EnronOnline transaction levels reached a new record with over 700 transactions, representing a notional value of $250 million. Transaction processing costs with EnronOnline are significantly lower than costs associated with traditional transaction methods. Enron's Gas Pipeline Group is also well positioned to continue growing, with expansions planned or underway on several of its systems. Retail Energy Services With over 16,500 facilities under management, the infrastructure is in place to service customers worldwide. As the strong contracting momentum continues, Enron Energy Services is poised to rapidly increase earnings in 2000. Enron Energy Services' goal for 2000 is to sign new contracts representing $16 billion in future expenditures by customers for energy and energy services, nearly double the level in 1999. Enron Broadband Services The new name of Enron's communications business, Enron Broadband Services, reflects its role in the very fast growing market for premium broadband services. Enron is deploying an open, flexible global broadband network controlled by software intelligence, which precludes the need to invest in a traditional point-to-point fiber network. This Enron Intelligent Network is widely interconnected to both other wholesale bandwidth carriers and to Internet service providers, thus providing the platform for two new Enron business centers, bandwidth intermediation and broadband content delivery. A direct transfer of Enron's core market making and risk management skills from its energy businesses, bandwidth intermediation will provide capacity- holders a vast array of alternatives for flexible, low cost capacity. Enron will also provide premium broadband content services, such as high-quality video-streaming and large broadband file transfer, with differentiated levels of quality in a usage-based business model. As announced in a separate release, Enron also reached an agreement with Sun Microsystems that provides for accelerated development of broadband Internet services. Enron is one of the world's leading electricity, natural gas and communications companies. The company, which owns approximately $34 billion in energy and communications assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol, ``ENE.'' This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Enron believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include political developments in foreign countries, the ability to penetrate new wholesale and retail natural gas, electricity and broadband services markets, including the energy outsource market, in the United States and Europe, the timing and extent of changes in prices for crude oil, natural gas, electricity and those relating to broadband services and content, the timing and effect of changes in interest rates, the timing and success of Enron's efforts to develop domestic and international power, pipeline, communications, internet- related and other infrastructure projects, and conditions of the capital markets and equity markets during the periods covered by the forward looking statements. Contact: Gary Foster of Enron Corp., 713-853-4527. SOURCE: Enron Corp.

Note: This article gives some of the strategy and economics of the purchase of Montana Power by Pan Canadian. We will look at the Oklahoma reserves for location and strategy with our pipe--with the switch in ownership, they may be receptive to strategy changes. Lorna PanCanadian Says Montana Power Purchase 'Beautiful Fit' To extend what it sees as dominance in Canada's natural gas market and to boost its production by 10%, PanCanadian Petroleum Ltd. yesterday agreed to purchase Montana Power Co. for $475 million. The properties will extend PanCanadian's existing shallow gas properties in southern Alberta into northern Montana, adding 94 MMcf/d and 3,800 barrels of crude oil and natural gas liquids. The acquisition will give PanCanadian properties in Alberta, Montana, Colorado, Oklahoma and Wyoming, along with three gas pipelines linking Alberta and Saskatchewan to Montana. "We have a focus on natural gas," said CEO David Tuer during a conference call yesterday in Calgary. "This is clearly our future. It is difficult to put any negative on this (acquisition) and it's likely to stay valuable for the foreseeable future." Montana Power's production is more than 90% natural gas and associated liquids, and the acquisition substantially extends PanCanadian's land and infrastructure, allowing it to use its technology and operating strategies in a region that extends along the Alberta-Montana border. "The Montana Power assets clearly fit our strengths and allow us to employ our expertise in developing long life reserves of shallow and medium depth natural gas," Tuer said. "The potential in these assets is significant, and over the next few years, we will add substantially to PanCanadian's daily natural gas production." Tuer said that the acquisition extends the company's dominance in shallow gas, and called Montana Power a "beautiful fit with PanCanadian's gas strategy, land position and technological capability." PanCanadian's newest acquisition adds reserves of 550 Bcf and 20 MM barrels of oil and natural gas liquids on a proven and one-half probable basis, said officials. Production and reserves account for $520 million of the purchase price, while the remainder is made up of $135 million for the midstream and marketing assets, $40 million for the undeveloped land (about 600,000 acres), and $7 million of working capital. Tuer said the company was paying 77 cents/Mcfe of proven and on-half probable reserves. The price for daily flowing production, based on a 6:1 ration of gas to BOE is $4,450/Mcfe, or $26,710/BOE. Along with the added Alberta and Montana properties, PanCanadian also picks up some land in Colorado's Denver Basin, which now produces about 31 MMcf/d. Other land that is part of the sale is located in the Anadarko Basin of Oklahoma and the Green River Basin of Wyoming. Three natural gas pipelines that cross from Montana into Alberta and Saskatchewan also are included. The pipelines allow direct access to the U.S. markets for southern Alberta and Saskatchewan gas, and serve more than 1.2 million net acres of developed and undeveloped lands, with most of it concentrated in parcels that span the Canada-Montana border. Midstream assets that go to PanCanadian include a natural gas marketing company in Butte, MT, along with a deep cut gas processing and fractionation plant in Colorado. The Fort Lupton, CO plant processes more than 60 MMcf/d and 5,500 barrels of natural gas liquids and condensate. In all, the total developed and undeveloped land is roughly 1.2 million net acres, or 1.7 million gross acres, said PanCanadian. "Montana Power fit us like a glove," Tuer said during the conference call. He said the acquisition will help PanCanadian to remain "best of class" for what it does. "It makes our sandbox that much bigger." The acquisition, which is expected to close around Oct. 31, will increase both PanCanadian's net income and cash flow this year and in subsequent years, said Tuer. The added gas production will immediately increase the company's natural gas, as a percentage of total production, to 58%, based on a 6:1 ratio of gas to BOE. About 25% of the natural gas being acquired from Montana Power now is being sold to Montana Power utilities for $1.50 to $1.60 MMcf until July 2002, and because it's priced below the open market officials think future earnings will be good. "As that contract expires, there's a lot of potential from the price in this transaction," Tuer said. And what's to become of Montana Power? Earlier this year, the 88-year-old company, headquartered in Butte, announced it would divest itself of four of its traditional energy businesses. By selling its coal production, natural gas transmission and distribution, independent power production and oil and gas exploration and production businesses, it plans to reinvest the proceeds in Touch America, a fiber optics and telecommunications business, which is also a subsidiary of Montana Power. "The process to determine the buyer for our oil and gas business was robust, and we are delighted with the result," said Montana Power CEO Robert P. Gannon. "We believe there will be a meshing of business strategies and that cultural synergy's exist between the purchased companies and Pan Canadian." He noted that Montana Power has had a Canadian presence for almost 50 years. PanCanadian purchased the entire oil and gas division, which now employs about 170. PanCanadian plans to maintain a regional office in Butte, invest in the acquired properties and grow daily gas production. There was no word on whether any jobs would be lost. ------------------------------------------------------------------------------ --

FYI-- The information below is an excellent overview of the procedures our administrative personnel will be using when handling and distributing your mail into mail folders. However, all administrative personnel in the Portland Enron WTC offices have received a hard copy of the guidelines and procedures issued by Oregon Department Administrative Services. This four-page document has detailed guidelines and instructions for mail/parcel handling. If you would like to get a copy of these guidelines, ask your administrative assistant or you can contact Debra Davidson to get a copy. The World Trade Center Mailroom has informed Debra that they are also screening mail for lumps, powdery substances, unusual written comments on envelopes, etc. If they detect a suspicious piece of mail or package addressed to our office, they will notify us as well as the proper authorities. If you have any questions or concerns, please see me or Debra Davidson. -----Original Message----- From: Enron Announcements/Corp/Enron@ENRON On Behalf Of John Brindle, Business Controls@ENRON Sent: Wednesday, October 17, 2001 7:42 PM To: Enron Employees ---- Domestic@ENRON Subject: Anthrax and other Biological Agent Threats We understand that the recent cases of Anthrax contamination and the possibility that biological agents such as Anthrax may be used in a terrorist attack are raising great concerns among Enron employees. Many government and commercial facilities in the United States have already received Anthrax threat letters containing powdery substances. Most of these have, however, been determined to be false alarms. We have no reason to believe that Enron has been or will be the target of an Anthrax attack, but we want to provide all employees with background information on Anthrax and up-to-date guidance for handling any possible Anthrax exposures. If you have additional questions or concerns, please contact Corporate Security in Houston at (713) 345-2804 or via email at [email protected]. The most important thing to remember is: Do not panic. To infect someone, the Anthrax organism must be rubbed into abraded skin, swallowed, or inhaled as a fine, aerosolized mist. Infection can be prevented after exposure to Anthrax by early treatment with the appropriate antibiotics. Anthrax cannot be spread from one person to another. Following are guidelines for identifying and dealing with suspicious letters or packages: What constitutes a suspicious letter or parcel? (Remember, these are only guidelines. Use your best judgment when determining if a letter or package is suspicious.) -- It is marked with the word "Anthrax." -- It has a non-identifiable powdery substance on the outside. -- It is unexpected or from someone unfamiliar to you. -- Is addressed to someone no longer with your organization or is otherwise outdated. -- Has no return address, or has one that cannot be verified as legitimate. -- Is of unusual weight, given its size, or is lopsided or oddly shaped. -- Has an unusual amount of tape on it. -- Is marked with restrictive endorsements such as "personal" or "confidential". -- Has a strange odor or stain. -- Shows a city or country in the postmark that does not match the return address. What do I do if I receive such a letter or package that I believe contains Anthrax? -- Do not shake or empty the contents of any suspicious envelope or package. -- Place the envelope or package in a plastic bag or some other type of container to prevent leakage of contents. -- If you do not have any container, then cover the envelope or package with anything (e.g., clothing, paper, trash can, etc.) and do not remove this cover. -- Leave the room and close the door, or section off the area to prevent others from entering (i.e., keep others away). -- Wash your hands with soap and water to prevent spreading any powder to your face. -- Notify your local building security official or an available supervisor. Have them call 911 to alert the local police authorities. -- List all people who were in the room or area when this suspicious letter or package was recognized. Give this list to both the local public health authorities and law enforcement officials for follow-up investigations and advice. If you open an envelope or package and a suspicious powder spills out: -- Do not try to clean up the powder. Cover the spilled contents immediately with anything (e.g., clothing, paper, trash can, etc.) and do not remove this cover! -- Leave the room and close the door, or section off the area to prevent others from entering (i.e., keep others away). -- Wash your hands with soap and water to prevent spreading any powder to your face. Report the incident to your local building security official or an available supervisor. Have them call 911 to alert the local police authorities. -- Remove heavily contaminated clothing as soon as possible and place in a plastic bag, or some other container that can be sealed. This clothing bag should be given to the emergency responders for proper handling. -- Shower with soap and water as soon as possible. Do not use bleach or other disinfectant on your skin. -- If possible, list all people who were in the room or area, especially those who had actual contact with the powder. Give this list to both the local public health authorities so that proper instructions can be given for medical follow-up, and to law enforcement officials for further investigation.

<http://www.enn0.com/i.cfm?UID=45456540&DID=150261> <http://www.enn0.com/i.cfm?UID=1872571&DID=131075> <http://www.nbateamnews.com/i.cfm?DID=150247&UID=45456540&MID=200657> Mon., Jan. 7 <http://www.nba.com/media/rockets/Links3.jpg> <http://www.nbateamnews.com/i.cfm?DID=150247&UID=45456540&MID=200657> <http://www.nbateamnews.com/i.cfm?DID=150248&UID=45456540&MID=200657> <http://www.nbateamnews.com/i.cfm?DID=150249&UID=45456540&MID=200657> <http://www.nbateamnews.com/i.cfm?DID=150250&UID=45456540&MID=200657> <http://www.nbateamnews.com/i.cfm?DID=150251&UID=45456540&MID=200657> <http://www.nbateamnews.com/i.cfm?DID=150252&UID=45456540&MID=200657> <http://www.nba.com/media/rockets/UpNext3.jpg> THU., JAN. 3 ROCKETS VS. KNICKS Compaq Center, 7:30 PM CT FOX Sports Net, KPRC 950 AM (English), KRTX 980 AM (Spanish) Get Your Tickets Now! <http://www.nbateamnews.com/i.cfm?DID=150253&UID=45456540&MID=200657> THU., JAN. 10 ROCKETS @ JAZZ Delta Center, 8:00 PM CT UPN 20, KPRC 950 AM (English), KRTX 980 AM (Spanish) <http://www.nba.com/media/rockets/RocketsScience5.jpg> <http://www.nba.com/media/rockets/reeltime_eblast.jpg> Be sure to check out Reel-Time Rockets <http://www.nbateamnews.com/i.cfm?DID=150254&UID=45456540&MID=200657>, a bi-monthly video feature series at rockets.com where we take an inside look into the off-the-court lives of Rockets players and coaches. <http://www.nba.com/media/rockets/rudyt_grab.jpg> In the latest episode, Rockets Head Coach Rudy Tomjanovich tries to teach Reel-Time Rockets host Jeff Hagedorn the proper mechanics of serving ice cream at Stucchi's, a premium ice cream and frozen yogurt store owned by Rudy and his wife Sophie. Click here <http://www.nbateamnews.com/i.cfm?DID=150254&UID=45456540&MID=&{$ msg_id}> to find out if Jeff is up to task and learn who really wears the pants in the Tomjanovich family. ROCKETS 5-GAME OUTLOOK Following tomorrow night's game against the Knicks at Compaq Center, the Rockets will make a quick stop in Utah to take on the Jazz on Thursday before returning home Saturday to face Denver. After the Nuggets game, the Rockets will embark on a five-game Eastern Conference road trip beginning Jan. 15 in Philadelphia. For more details about Houston's next five games, check out the Rockets 5-Game Outlook. <http://www.nbateamnews.com/i.cfm?DID=150255&UID=45456540&MID=200657> HELP MAKE STEVE AN ALL-STAR <http://www.nba.com/media/rockets/francis_hp_020103.jpg>With this week's returns in the 2002 NBA All-Star balloting program set to be released Tuesday, Steve Francis continues his quest to be named a starter to the Western Conference squad. Let's help Steve hold off Gary Payton for a starting berth by casting your ballot today <http://www.nbateamnews.com/i.cfm?DID=150256&UID=45456540&MID=200657>! Voting will continue only through January 13, so be sure to grab a friend or two and cast as many ballots as you can to ensure Steve represents Houston at the 2002 NBA All-Star Game in Philadephia. ROCKETS BROADCAST UPDATE The NBA has announced that Houston's game at Philadelphia on Jan. 15 will no longer be televised nationally on TBS. The Rockets-Sixers matchup can be seen locally on FOX Sports Net. Accordingly, the game has moved to a 6:00 p.m. CT start time. In addition, the Rockets-Mavericks game in Dallas on Jan. 31 has been dropped from TNT's schedule and will only be telecast locally on UPN 20. The Rockets-Mavs game time remains at 8:00 p.m. CT. Click here <http://www.nbateamnews.com/i.cfm?DID=150251&UID=45456540&MID=200657> to view the Rockets' remaining broadcast schedule. ROCKETS PHOTO GALLERIES <http://www.nba.com/media/rockets/gallery020102_grab.jpg>Check out our Photo Galleries page at rockets.com, where you will find the latest action photos of all your favorite Rockets players. Click here <http://www.nbateamnews.com/i.cfm?DID=150257&UID=45456540&MID=200657> to view a photo gallery from a past Rockets game or to check out a different bi-weekly gallery of every Rockets player. ASK THE ROCKETS <http://www.nba.com/media/rockets/taylor_atr020107.jpg>Have you ever wondered how the Rockets got their name? Or who owns the highest career rebounding average as a member of the Rockets? If you would like to know the answers to these or any other Rockets-related matters, all you have to do is e-mail us your questions <mailto:[email protected] ?subject=Ask the Rockets>! This week we answer questions <http://www.nbateamnews.com/i.cfm?DID=150258&UID=45456540&MID=200657> about Steve Francis' new shoes, how Maurice Taylor will fit into the Rockets offense upon his return, and more! INSIDE THE ROCKETS Inside the Rockets is your chance to get up close and personal with Rockets players throughout the season. Each Monday we will ask a different question and the players' responses to that question will be posted. Be sure to check back each week to see their answers to an all-new question! Click here <http://www.nbateamnews.com/i.cfm?DID=150259&UID=45456540&MID=200657> to view Rockets players' responses to this week's question: "What is your most prized piece of sports memorabilia?" TUX AND TENNIES CHARITY GALA 2002 <http://www.nba.com/media/rockets/tuxtennies.jpg>Get ready to lace up your tennies! The Clutch City Foundation's sixth annual Tux & Tennies Charity Gala 2002 will be held on Thursday, February 28, 2002 at Compaq Center. For more information on tickets and tables, please call 713-963-7350. > Modify your account <http://nba.mynbanews.com/wwwroot/rockets/modify.cfm?clientid=713&userid=45456540> Deactivate your account <http://nba.mynbanews.com/wwwroot/rockets/deactivate.cfm?clientid=713&userid=45456540> _____ Topics: Single game tickets Weekly game schedule Team news

Dear Mr. Blumberg, On behalf of Jeff Skilling, I'm writing to let you know that he will be traveling on Thursday, December 14, and will be unable to take your call as mentioned below. Further, Mr. Philippe Bibi, Enron Chief Technology Officer, is the appropriate person to contact within Enron regarding your products. I have forwarded this information to Mr. Bibi, and you may contact him directly. His e-mail address is [email protected]. Regards, Sherri Sera Assistant to Jeff Skilling 713.853.5984 713.646.8381 (fax) [email protected] "Blumberg, Richard" <[email protected]> on 12/12/2000 06:23:13 PM To: "'[email protected]'" <[email protected]> cc: "Carter, Mike" <[email protected]> Subject: Quick question: What eSourcing tools are available for Enron exec utives who value both gas flow ---and data flows? "Ajunto is the Enron of IT Sourcing..." --- Mike Carter, CEO & Founder, Ajunto, December 12, 2000 ? "Skilling notes that skeptics thought Enron was crazy when it dared to make electronic?? ?markets in energy. His confidence comes down to his belief in Enron's market-making model.??? ?"We have a better business model. It's a fundamentally better business model," he repeats.??? ?Some $200 billion in trading activity on an E-commerce site that's less than a year old speaks?? ?volumes about Enron's ability to mobilize and execute on whatever it puts its mind to-however?? ?the company decides to describe itself."??????????????????????????????????????InformationWeek, 11/6/00 ? "As head of two Enron pipeline subsidiaries, Mike McConnell knew a lot more about gas flows?? ?than he did about data flows last year when he got a surprise call from Enron President and?? ?Chief Operating Officer Jeff Skilling. Recalls McConnell, "Jeff went into this whole thought?? ?process about how the Internet is changing everything. He said, 'We need to make Enron?? ?an e-business, and I need a guy that can run this as a business. We need to change the way?? ?we view technology.'?? "I thought he was a little crazy and I said, 'Jeff, I'm not a technology person?? ?at all,? ?'He said, 'No, seriously -- this is going to be big.' So I took over as CEO of Enron Global?? ?Technology," and thus became the company's de facto CIO, McConnell explains.?????????????? ?????????????????????????????????????????????????????????????????????????????? ?????????????????????? Computerworld, 11/20/00 ? ?==================================================================? Ajunto News:?? http://www.crn.com/Components/Search/Article.asp?ArticleID=20727? Lou Gerstner's 12/12 quote on e-Sourcing:? ?http://www.crn.com/Sections/BreakingNews/BreakingNews.asp?ArticleID=22310? ? Goal: Jeff, I will call you on?Thursday, December 14, morning @??8:15 am,?CST.?If you will not?? be in, please leave word with?your associate?Sherri Sera?as to when you can return?my??? call (or e-mail)?---or a best?time to set-up an executive briefing?in?a conference room in one of Enron's three commodity trading?floor areas.?? ==================================================================? ? Jeff?, Mike Carter, the CEO & Founder, of Ajunto suggested that I set-up an executive briefing withyou during our next visit to Houston.? We've studied your?"unique company with a unique set of skills that are perfectly suited for the changing economy."? We're prepare to take action.???Here are specific?ways that we can immediately impact your business based on?our case studies with the Meta Group & VerticalNet's 1.1 Million+ Buyer communities:? ? Top IT (e-Business) Risks & Opportunities: Proactive online analysis & assessment Online & complimentary information and expertise Intelligent sourcing (information mapping) Ownership & empowerment (senior executives & staffs) Process to execute e-Business initiatives & changes??? e-Business sourcing and e-Strategy insights into exchanges,?? ?? ?wireless e-CRM, e-security, business intelligence, e-learning, etc.. ? We stand ready to discuss how our solutions will add value to??Enron.? Regards, Richard? P.S.?Jeff, I will call you on?Thursday, December 14, morning @??8:15 am,?CST.?If you will not?? be in, please leave word with?your associate?Sherri Sera?as to when you can return?my??? call (or e-mail)?---or a best?time to set-up an executive briefing?in?a conference room in one of Enron's three commodity trading?floor areas.? ? Richard D. Blumberg Director, Strategic Alliances Ajunto, Inc. www.ajunto.com? 610.205-3771 /voice 610.337.9597 /fax 610.745-4514 /cell ? About Ajunto, Inc. Headquartered in suburban Philadelphia, Ajunto?(A variation?on the Latin word "bringing together") is the first net market and eService designed specifically for the IT industry to expedite?the sourcing of IT applications, technologies and providers. By integrating intelligent sourcing, next generation research and community, Ajunto enables G2000 and emerging organizations to optimally map their IT needs to leading Internet solution providers though its proprietary eConfiguration Engine technology, and its innovative SourceIT
v research and support services. Additionally, Ajunto's unique eService offering was created to serve as the operating system for all IT net markets enabling companies to quickly and efficiently deploy customized net markets for their own unique audiences using Ajunto's proven business process, technology and the Asera platform. Ajunto's investors include Pennsylvania Early Stage Partners (a Safeguard Scientifics affiliated fund), The Eastern Technology Fund and Unwired Ventures. For more membership information, visit?http://www.ajunto.com. Ajunto - The Engine Behind the IT Industry
v. ? ?? ? ? ? ? ? ??????? ? ? ? ? - SourcingWP v6.pdf

FYI ----- Forwarded by Ann Ballard/Corp/Enron on 12/11/2000 11:10 AM ----- Rex Rogers 12/11/2000 11:01 AM To: Ann Ballard/Corp/Enron@ENRON cc: Sharon Butcher/Corp/Enron@ENRON, Kriste Sullivan/Corp/Enron@ENRON Subject: Re: Excess OASDI Payments and Withholding Issue Ann: I do not know anything about this---I very quickly glanced at the materials, and what is suggested presents some pretty major issues (Michelle is right---there are tax issues, corporate veil issues, and possibly other technical employee benefit regulatory issues). This is clearly outside of my area of expertise; I think this is probably more in Sharon's, Kriste's and Pat's area. Why don't we discuss this at our staff meeting on Wednesday. If we need to get together sooner, please let me know. Thanks, Rex. Ann Ballard 12/11/2000 09:43 AM To: Rex Rogers/Corp/Enron@Enron cc: Subject: Excess OASDI Payments and Withholding Issue Rex -- Do you know anything about the below described proposal? I do not, and don't know whether I should get involved. ----- Forwarded by Ann Ballard/Corp/Enron on 12/11/2000 09:41 AM ----- Michelle Cash@ECT 12/10/2000 04:28 PM To: Tony Jarrett/Corp/Enron@ENRON, Robert Eickenroht/Corp/Enron@ENRON, Ann Ballard/Corp/Enron@ENRON, [email protected] cc: Sharon Butcher/Corp/Enron@ENRON, Kriste Sullivan/Corp/Enron@ENRON Subject: Excess OASDI Payments and Withholding Issue Do you have any thoughts/comments on the proposal discussed in the attached email? Basically, the proposal is to create three holding companies that will house all employees of Enron and its subsidiaries/affiliates, and then "lease" the employees to the various business units in which they work. Potential issues I see include tax and corporate veil issues. Your thoughts would be appreciated. Michelle ---------------------- Forwarded by Michelle Cash/HOU/ECT on 12/10/2000 04:25 PM --------------------------- Bob Sparger@ENRON 12/01/2000 02:31 AM To: Sharon Butcher/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT, Kriste Sullivan/Corp/Enron@ENRON cc: Cindy Olson/Corp/Enron@ENRON, Brad Coleman/HOU/ECT@ECT, David O'Dell/HR/Corp/Enron@ENRON, Janice Priddy/HR/Corp/Enron@ENRON Subject: Excess OASDI Payments and Withholding Issue Sharon / Michelle / Kriste: In late September, I sent a note on excess OASDI payment by Enron and excess OASDI withholdings from employees when U. S. domestic employee transfers occur between Enron BUs but never received a response - note David O'Dell's e-mail below. Understand Enron has looked at this area before, but feel we should look again to see if there are any viable alternatives to the current situation. Could you please look at the attachment in my original e-mail (below) and let us know where we stand.how to proceed? Thanks, Bob ---------------------- Forwarded by Bob Sparger/Corp/Enron on 12/01/2000 08:26 AM --------------------------- From: David O'Dell 11/30/2000 04:17 PM To: Bob Sparger/Corp/Enron@Enron cc: Janice Priddy/HR/Corp/Enron@ENRON Subject: Excess OASDI Payments and Withholding Issue Bob, Janice and I met with E&Y Tax Services today to discuss a number of topics including potential organizational structural modification strategies. One strategy discussed was very similar to the proposal you made back in September. We are planning to have the E&Y folks come back in to discuss these ideas in more detail. A couple of questions for you come to mind: Did you ever get a response from Legal and/or Tax on your proposal? Would you like to attend the next meeting with E&Y? Please let me know your thoughts... Thanks - David ---------------------- Forwarded by David O'Dell/HR/Corp/Enron on 11/30/2000 04:13 PM --------------------------- Bob Sparger 09/29/2000 11:11 AM To: Sharon Butcher/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT, Kriste Sullivan/Corp/Enron@ENRON cc: Cindy Olson/Corp/Enron@ENRON, Brad Coleman/HOU/ECT@ECT, David O'Dell/HR/Corp/Enron@ENRON Subject: Excess OASDI Payments and Withholding Issue Sharon / Michelle / Kriste: The enclosed document addresses excess OASDI payment by Enron and excess OASDI withholdings from employees when U. S. domestic employee transfers occur between Enron BUs. The current situation results in significant Enron excess OASDI payment annually, and creates issues with employee due to overwithholding resulting in employee complaints and ill will towards HR, Payroll, and Enron. The document depicts apparent options, and a potential solution, to the current situation. This is viewed as an HR customer service issue to ensure Enron employees receive the best overall service possible in their interface to the HR function and systems. It is my understanding that Enron Executive Management feel that employee transferability among the BUs is important, and wishes to see more movement of employees (as well as thoughts and ideas) between the BUs in the future to enhance employee opportunities and Enron's value. This being the case, I would expect the Enron cost and employee impacts and issues to be acerbated as additional and increased employee movement occurs in the future. We need Legal review of the issues and opportunities as presented in the document to determine a solution to the current - and pending future - situation, and look forward to any guidance you can provide in resolving the problems the current situation creates for Enron employees who transfer between Enron entities within a tax year and to mitigate potential future issues. If there is not a Legal obstacle, we will then go to Tax to address the specific tax entity issues. Regards, Bob

COLUMBIA GAS TRANSMISSION CORPORATION NOTICE TO ALL INTERESTED PARTIES OCTOBER 25, 2001 Notice ID: 3211 5 - NO RESPONSE REQUIRED SUBJECT: REVISED-CAPACITY UPDATE EFFECTIVE FOR SATURDAY, OCTOBER 27, 2001 AND SUNDAY, OCTOBER 28, 2001 CHANGES ARE INDICATED WITH AN * Effective Saturday, October 27, 2001 and Sunday, October 28, 2001, capacities will be as follows: Excess MDWQ Available + ISS Withdrawals Available SIT Withdrawals Available Imbalance Drawdowns Available Excess MDIQ Available + * ISS Injections Available * SIT Injections Available * Imbalance Paybacks Available * PAL Lends/Unparks Available PAL Parks/Loan Paybacks Available * + Call Gas Control 24 hours in advance at (304) 357-2606 to request approval. Non-firm receipt capacity will be as follows: TENNESSEE: Brinker (B12) 20,000 Broad Run (B9) 300,000 Cambridge (B10) 20,000 Dungannon (B11) 20,000 Highland (B17) 0 NOTE: GAS RECEIVED AT HIGHLAND MUST BE DELIVERED IN THE NORTHERN PORTION OF MARKET AREA 38 OR THE NORTHWEST LATERAL OF MARKET AREA 36, DIRECTLY NORTH OF HIGHLAND. Milford (B18) 20,000 North Greenwood (B22) 0 Unionville (B15) 50,000 NOTE: EFFECTIVE THURSDAY, AUGUST 16, 2001, ANY SHIPPER UTILIZING A CONTRACT THAT HAS A PRIMARY RECEIPT POINT(S) WITH THE FOLLOWING POINTS, MUST UTILIZE THESE POINTS: Brinker (B12) Cambridge (B10) Dungannon (B11) Highland (B17) Milford (B18) Unionville (B15) TEXAS EASTERN: Delmont (C16) 0 Eagle (C22) 20,000 Hooker (C9) 20,000 Pennsburg (C23) 20,000 Windridge (C12) 20,000 NATIONAL FUEL: Independence (M1) 0 Ellwood City (L1) 15,000 TRANSCO: Downingtown (E3) 2,500 Emporia I (E13) 2,500 * Rockville (E2) 0 Dranesville (E1) 0 EQUITABLE GAS: Hi Hat (F3) 0 KENTUCKY WEST VIRGINIA (KYWV): Beaver Creek (H1) 0 CNR PIPELINE: Boldman (CNR02) 0 Conoway (CNR03) 0 Johns Creek (CNR08) 0 Canada (CNR09) 0 Canada (CNR10) 0 Stafford (CNR11) 0 Thacker/Majestic (CNR12) 0 Briar Mtn. (CNR13) 0 Huff Creek (CNR14) 0 CONOCO: 0 Grant (P1) 0 NOTE: ANY APPALACHIAN PRODUCTION FLOWING DIRECTLY INTO COLUMBIA'S LINE KA BETWEEN COLUMBIA'S BOLDMAN COMPRESSOR STATION AND COLUMBIA'S HUFF CREEK COMPRESSOR STATION AS WELL AS PRODUCTION FLOWING INTO COLUMBIA'S LINES SM-116, KA-15, PM-3, AND PM-17 IS 0 NON-FIRM. ALGONQUIN: Ramapo (R1) 75,000 ANR: Paulding/Cecil 30,000 (F1, A2) LEBANON AGGREGATE 100,000 (A4, F2, C4, D3) TOLEDO AGGREGATE 100,000 (A3, F4, 734462) COLUMBIA GULF: (801) TCO-Leach 700,000 Internal point non-firm capacity will be as follows: Lanham 0 Delivery capacity (non-firm) will be as follows: TRANSCO: Martins Creek 10,000 (MLI E5) Young Woman's Creek 10,000 (MLI E9) ALGONQUIN: Hanover 0 (MLI R2) EQUITRANS: Fallen Timber 31,000 (MLI K1) Waynesburg-Rhinehart 20,000 (MLI K2) OPT-30 will be available in all market areas. OPT-60 will be available in all market areas. Market Area delivery capacity (non-firm) will be as follows: Operating Area 1 Market Area 33 No Restrictions Market Area 34 No Restrictions Operating Area 2 Market Area 20 No Restrictions Operating Area 3 Market Area 15 No Restrictions Market Area 16 No Restrictions Market Area 17 No Restrictions Market Area 18 No Restrictions Market Area 19 No Restrictions Operating Area 4 Market Area 21 No Restrictions Market Area 22 No Restrictions Market Area 23 No Restrictions Market Area 24 No Restrictions Market Area 25 No Restrictions Market Area 29 No Restrictions Operating Area 5 Market Area 02 No Restrictions Market Area 07 No Restrictions Operating Area 6 Market Area 10 No Restrictions Market Area 11 No Restrictions Market Area 12 No Restrictions Market Area 13 No Restrictions Market Area 14 No Restrictions Operating Area 7 Market Area 01 No Restrictions Market Area 03 No Restrictions Market Area 04 No Restrictions Market Area 05 No Restrictions Market Area 06 No Restrictions Market Area 08 No Restrictions Market Area 09 No Restrictions Operating Area 8 Market Area 26 No Restrictions Market Area 27 No Restrictions Market Area 32 No Restrictions Market Area 35 No Restrictions Market Area 36 No restrictions for southern part of Market Area 36. Primary receipts/deliveries only for gas delivered in the northern portion of Market Area 36. Market Area 38 No Restrictions Market Area 39 No Restrictions Market Area 40 No Restrictions NOTE: GAS DELIVERED IN THE NORTHERN PORTION OF MARKET AREA 38 OR THE NORTHERN PORTION OF MARKET AREA 36 MUST BE RECEIVED FROM TENNESSEE GAS PIPELINE AT HIGHLAND. Operating Area 10 Market Area 28 No Restrictions Market Area 30 No Restrictions Market Area 31 No Restrictions If you have any questions, please contact your Account Representative.

logoInfoBeat: Don't miss a beat! Daily Dose [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] InfoBeat HomeUser Profile [IMAGE] DATE [IMAGE] Friday, December 08, 2000 [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] InfoBeat Fun - Daily Dose - 12/08/2000 Cool Site of the Day Fact of the Day Joke of the Day Quote of the Day Born Today [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Click on Ad -- Support InfoBeat's Free Services [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]Cool Site of the Day [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] "Proof of Life" opens around the country Friday and it had better be good because if it's not, it will only live in infamy as "That Movie Where, During Filming, Meg Ryan Cheated On Dennis Quaid With Russell Crowe" - and nobody wants that. The film's official Web site is cool stuff, highlighting all the things about kidnapping and ransom you never thought you'd need to know. It's actually a little harrowing, with statistics in red typeface flying across the screen like CNN coverage during wartime. Click on individual countries to learn about their "K&R" history, and then swing over to the typical goodies like trailer, soundtrack info, cast & crew, etc. Good-looking site for a movie starring a good-looking couple - just don't think about that part, though. www.proofoflife.com [IMAGE] back to top [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]Fact of the Day [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] One gram of venom from a king cobra snake can kill 150 people. Merely handling the venom can put one in a coma. For more, click here. [IMAGE] back to top [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]Joke of the Day [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] From Job Applicants * I demand a salary commiserate with my extensive experience. * I have lurnt Word Perfect 6.0, computor and spreadsheat progroms. * Received a plague for Salesperson of the Year. * Wholly responsible for two (2) failed financial institutions. * Failed bar exam with relatively high grades. * It's best for employers that I not work with people. * I Am a perfectionist and rarely if if ever forget details. * I was working for my mom until she decided to move. * I have become completely paranoid, trusting completely no one and absolutely nothing. * I procrastinate, especially when the task is unpleasant. * Personal interests: Donating blood. Fourteen gallons so far. * Instrumental in ruining entire operation for a Midwest chain store. * Note: Please don't misconstrue my 14 jobs as job hopping. I have never quit a job. * Reason for leaving last job: They insisted that all employees get to work by 8:45 every morning. Could not work under those conditions. *Finished eighth in my class of ten. For more jokes, click Joke-Of-The-Day.com [IMAGE] back to top [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]Quote of the Day [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Thought For Today: "Never think that war, no matter how necessary, nor how justified, is not a crime." - Ernest Hemingway (1899-1961). [IMAGE] back to top [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]Born Today [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] - Country singer-songwriter Floyd Tillman is 86. - Movie director Richard Fleischer is 84. - Actor-director Maximilian Schell is 70. - Actor David Carradine is 64. - Actor James MacArthur is 63. - Flutist James Galway is 61. - Singer Jerry Butler is 61. - Pop musician Bobby Elliott (Hollies) is 58. - Actor John Rubenstein is 54. - Rock singer-musician Gregg Allman is 53. - Actress Kim Basinger is 47. - Rock musician Warren Cuccurullo (Duran Duran) is 44. - Rock musician Phil Collen (Def Leppard) is 43. - Country singer Marty Raybon (Shenandoah) is 41. - Rock musician Marty Friedman (Megadeth) is 38. - Actress Teri Hatcher is 36. - Rapper Bushwick Bill (Geto Boys) is 34. - Singer Sinead O'Connor is 34. - Rock musician Ryan Newell (Sister Hazel) is 28. Source: Associated Press [IMAGE] back to top [IMAGE] Stuck for holiday gift ideas? Look no further than pqGifts! Great gift ideas fed directly to your desktop! [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Click on Ad -- Support InfoBeat's Free Services [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] You are subscribed with e-mail address: [[email protected]] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] InfoBeat Home | User Profile | Unsubscribe [IMAGE] [IMAGE] entertainment | finance | fun | news | snow reports | sports | weather (C) 2000 indimi, inc. All rights reserved. InfoBeat is a registered tradmark of indimi, inc. InfoBeat services are for personal use only. Commercial use or redistribution in any form, printed or electronic, is prohibited. [IMAGE] [IMAGE] [IMAGE] [IMAGE]

I agree with David- we should work these issues into our discussion w/ Luntz on Friday. I think Haug captured the issues we have to grapple with better than we've been able to thus far. ---------------------- Forwarded by Richard Shapiro/HOU/EES on 08/16/2000 02:22 AM --------------------------- David Haug@ENRON_DEVELOPMENT 08/14/2000 10:23 PM To: Steven J Kean/HOU/EES@EES cc: Executive Committee@EES, Gavin Dillingham/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joseph P Hirl/AP/ENRON@ENRON@EES, Jeannie Mandelker/HOU/ECT@ECT@EES, Nicholas O'Day/AP/Enron@Enron@EES, Mark Schroeder/LON/ECT@ECT@EES, Richard Shapiro/HOU/EES@EES, James D Steffes/HOU/EES@EES Subject: Re: Talking Points re "reregulation" in California Steve, thanks for the helpful materials. However, if the experience in overseas deregulating electricity markets where price increases and spikes have occurred is any precedent, we will need to have some more down-to-earth responses to a some of the potentially inflammatory issues facing the politicians: 1. When the prices spike, who reaps the windfall? Who sells that most expensive 1% of the kwh? Is it a careful planner or a lucky speculator or market manipulator? Someone is making a bunch of money off the screwed up system. Who is it, and why is that OK? 2. We do not allow people to inflate water prices to consumers in times of drought, or food prices in times of hurricanes or floods. Even gasoline price increases in periods of high demand are within 20%-30% of the base, not 2,5,10 or 100 times the average like spot electric prices. The issue isn't whether the system is broken or not or how bad partial regulation is or how much demand has increased versus supply. Thes will be seen as "ivory tower" discussions. The populist political issue is, until the problem is fixed, why should some shrewd big electric company or middleman be allowed to profit off the misfortune of consumers who did not cause the problem? Why should anyone be allowed to profiteer by selling at multiples above their generation cost? 3. The hedges, fixed price contracts and other de facto insurance against volatility that Enron or others offer could be seen as a symptom of the problem rather than the solution. Enron could be seen as at best a band aid and at worst an opportunist made possible only by a broken system - - -sort of like the guys who ran the old style protection rackets, or Colombian "security consultants" who "guard " pipelines from the threats their guerilla afiliates create, or political risk insurance that you shouldn't really need if the host country wasn't so screwed up. Don't worry about high crime in your neighborhood - - - just hire an off-duty policeman. Who needed these new electricity risk management products in the old days before deregulation? We have to be able to answer these types of questions at the level of the ordinary citizen, not merely have the correct long-term competitive market solution, or the forces of ignorance and re-regulation will gain momentum. Are we sure we shouldn't back a temporary peak hour price cap until the regulatory problems we're all familiar with are worked out, to avoid a much worse long term rollback?. - - -DLH Steven J Kean@EES 08/14/2000 05:42 PM Sent by: Maureen McVicker@EES To: Executive Committee cc: Gavin Dillingham/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joseph P Hirl/AP/ENRON@ENRON, Jeannie Mandelker/HOU/ECT@ECT, Nicholas O'Day/AP/Enron@Enron, Mark Schroeder/LON/ECT@ECT, Richard Shapiro/HOU/EES@EES, James D Steffes/HOU/EES@EES Subject: Talking Points re "reregulation" in California As I promised this morning at the executive committee meeting, below are some talking points for your use. Overall message: the market is working, regulation is not. In California, peak demand rose by 10% over the last 4 years while new capacity grew by only 2%. But, as you would expect, the market responded by proposing 8,000MW of new generation - - more than enough to offset the peak demand growth. The regulatory process, at both the state and local level, has failed to site this new generation. The problem is regulation, not deregulation. When San Diego customers began experiencing the effects of higher prices, Enron responded with a fixed price which would have shielded San Diego customers from price volatility and provided prices below their current summer levels (Enron's price was about $55/MWH). After publication of Enron's offer, nine other companies made offers. Again, the market responded where regulation failed. San Diego has not accepted any of these offers because of regulatory/legislative restrictions on its ability to buy outside of the PX (i.e. the spot market). In markets where siting is easier, suppliers have moved to build additional generation. Enron built 3 plants in response to the 1998 price spikes. Those plants were planned, sited and built in less that 12 months - - in time for the summer of 1999. Where regulatory hurdles are lower, the market responds. The solution to current pricing and reliability issues is more competition not reregulation. Policy makers should: Open the transmission grid so that power can get from where it is to where it is needed. Expedite interconnection of new generation. Expedite siting of new facilities. Give customers a choice, so that they have better access to demand side solutions. Also attached is a more detailed discussion of California, prepared by Jeff Dasovich of our San Francisco office.

We provided CSFB puts just like Lehman. We did that the last time we had to move the trigger price since our stock price was declining. As a result of us giving them puts, they took the trigger price out which means that we don't have to renegotiate the confirms every time our stock heads south. Jeff, would you please get the details of the puts to Sara. Thanks. CF -----Original Message----- From: Shackleton, Sara Sent: Tuesday, October 09, 2001 1:24 PM To: Freeland, Clint; Nogid, Jeff Subject: FW: Revised Total Retun Confirmation Per my voice mail -----Original Message----- From: "Emerson, Michael" <[email protected]>@ENRON Sent: Tuesday, October 09, 2001 11:10 AM To: Shackleton, Sara Cc: Haratunian, Stephen Subject: RE: Revised Total Retun Confirmation Sara- We will prepare execution copies of the confirmations for the various transactions and send them to you. Before we do that, though, do you know the status of the puts [Shackleton, Sara] I never heard mention of the puts ? Regards, Mike -----Original Message----- From: Shackleton, Sara [mailto:[email protected]] Sent: Tuesday, October 09, 2001 11:56 AM To: "Chiodi, Maria" <[email protected]>@ENRON; Armogida, Jim Cc: Emerson, Michael; Haratunian, Stephen; Armogida, Jim Subject: RE: Revised Total Retun Confirmation Maria and Michael: The form of confirmation of fine. How would you like to handle execution of this transaction? of remaining transactions? Scheduling the VE discussion for later this week is also acceptable. We look forward to hearing from you. Regards. Sara Shackleton Enron Wholesale Services 1400 Smith Street, EB3801a Houston, TX 77002 Ph: (713) 853-5620 Fax: (713) 646-3490 > -----Original Message----- > From: "Chiodi, Maria" <[email protected]>@ENRON > [mailto:IMCEANOTES-+22Chiodi+2C+20Maria+22+20+3Cmaria+2Echiodi+40csfb+ > [email protected]] > Sent: Thursday, October 04, 2001 4:58 PM > To: Armogida, Jim; Shackleton, Sara > Cc: Emerson, Michael; Haratunian, Stephen > Subject: Revised Total Retun Confirmation > > Jim and Sara: > > As we discussed, I attach a revised copy of the confirmation that is > marked > to show changes made to our June 27th draft. > > Regards, > > > Maria Chiodi > > Legal and Compliance Department > > CREDIT | FIRST > > SUISSE | BOSTON > > Phone: 212-325-6724 > > Fax: 917-326-7763 > > > > > <<TRS Oct 4 2001 CSFB Draft.doc>> > > This message is for the named person's use only. It may contain > confidential, proprietary or legally privileged information. No > confidentiality or privilege is waived or lost by any mistransmission. > If you receive this message in error, please immediately delete it and > all > copies of it from your system, destroy any hard copies of it and > notify the > sender. You must not, directly or indirectly, use, disclose, > distribute, > print, or copy any part of this message if you are not the intended > recipient. CREDIT SUISSE GROUP and each of its subsidiaries each > reserve > the right to monitor all e-mail communications through its networks. > Any > views expressed in this message are those of the individual sender, > except > where the message states otherwise and the sender is authorised to > state > them to be the views of any such entity. > Unless otherwise stated, any pricing information given in this message > is > indicative only, is subject to change and does not constitute an offer > to > deal at any price quoted. > Any reference to the terms of executed transactions should be treated > as > preliminary only and subject to our formal written confirmation. > > > > > - TRS Oct 4 2001 CSFB Draft.doc << File: TRS Oct 4 2001 CSFB > Draft.doc >> ********************************************************************** 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 [email protected] 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. ********************************************************************** This message is for the named person's use only. It may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any mistransmission. If you receive this message in error, please immediately delete it and all copies of it from your system, destroy any hard copies of it and notify the sender. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message if you are not the intended recipient. CREDIT SUISSE GROUP and each of its subsidiaries each reserve the right to monitor all e-mail communications through its networks. Any views expressed in this message are those of the individual sender, except where the message states otherwise and the sender is authorised to state them to be the views of any such entity. Unless otherwise stated, any pricing information given in this message is indicative only, is subject to change and does not constitute an offer to deal at any price quoted. Any reference to the terms of executed transactions should be treated as preliminary only and subject to our formal written confirmation.

Wild@Work Brown Bag Lunch Presentation: Oh Deer: An Environmental Crisis in the Making Across Texas, the growing population of white-tail deer in urban environments is creating a new challenge. Join Ephraim Dickson, Executive Director of the Armand Bayou Nature Center, for a discussion on the impacts of this important issue and an exploration of possible alternatives. When: Thursday, June 14th, 11:30 AM to 12:30 PM Where: EB 5C2 IT'S TIME FOR THE 3RD ANNUAL ENRON/MDA BEACH BOWL, June 15!!! This Friday, June 15th, come and celebrate with us as we kick-off the 3rd Annual Enron/MDA Beach Bowl benefiting ALS research! ALS (more commonly known as Lou Gehrig's disease) is a fatal neuromuscular disease which causes progressive muscle weakness and eventually leaves the patient paralyzed. Help us "strike a blow" against ALS while having lots of fun and winning great prizes! Call Lindsay Meade at ext. 34551 for more information. See you at the kick-off! Come dressed in something Hawaiian and win a prize! When: Friday, June 15th, 11:30am-12:30pm (If you can't be there for the whole hour, don't worry! Just stop by whenever you can!!) Where: EB 5C2 Feel free to bring your own lunch. Fruit, cookies and drinks will be provided! Find out about Bring Your Child To Work Day, June 29! The annual Bring Your Child To Work Day is scheduled on Friday, June 29th. Guidelines for participation: (1) Parents MUST stay with their children at all times. Children will not be allowed to participate without their parent in attendance. (2) Participation in the event is with immediate supervisor
,s permission only. (3) Children 6 years and older only. (4) Participation is limited to children of Enron or contract employees. (5) Each employee participating MUST sign a release waiver and return it with the registration form by Friday, June 22nd. An email will be distributed this week. This provide parents with details about the registration process as well as a release waiver. Get it While it's Hot! - A Gift From Mervyn's Mervyn's is extending a 15% discount coupon to Enron employees for Men's and Women's Dockers Casual Businesswear. If you are interested in this limited time offer (valid until June 30th) please come by the INFOZONE Kiosk in the lobby during lunch on Tuesday, June 12th to pick up your coupon. Coupons will be distributed on a first come, first serve basis and limit is 2 per employee. Learn More About Beginner Ballroom Dance Lessons Beginner Ballroom Dance Lessons, open to the public and taught by qualified instructors, sponsored by the United States Amateur Ballroom Dancers Association (a non-profit organization), in cooperation with the City of Houston Parks & Recreation Department. Classes start on Tuesday, June 5th from 6:30 - 8:00 pm at the River Oaks Community Center, 3600 Locke Lane (between Weslayan & Buffalo Speedway on Latchmont, one block north of Westheimer). $38.00 for a session of 4 weeks (registration first day of class) If you miss the first class, join us for the second class! $30.00 for seniors over 60, and students under 23 Dances will include: Waltz, Foxtrot, Cha-cha, Rumba, Swing and Tango For further information, call Margaret Daffin at ext. 55083 JOIN THE VOICES OF ENRON TO EXPAND YOUR COMMUNICATION SKILLS! MAKE NEW FRIENDS! EXPAND YOUR HORIZONS! ENHANCE YOUR COMMUNICATION SKILLS! LOSE THE FEAR OF PUBLIC SPEAKING! HAVE A GREAT TIME! Day: Thursdays Time: 11:30 a.m. - 12:30 p.m. Location: Enron Building For more information about The Voices of Enron, contact Melinda Pharms, Vice President of Education, via e-mail at <[email protected]> or by phone at 713/853-3866 - Internal Extension 33866 or Kathy Willard, Vice President, Membership at [email protected] <mailto:[email protected]>, phone No. 713/646-7341 - Internal Extension 67341 Volunteer for the Boys & Girls Club Summer Camp Weekends!!! Kevin Hannon, Boys & Girls Club board member, invites you to join Enron employee John Cote at a Boys & Girls Club summer camp. John and Kevin are looking for commitments from some dedicated ENRON men & women. SPREAD THE WORD - SPOUSES, FRIENDS & OFFICE COLLEAGUES WELCOME - LAST YEAR'S CAMP WAS A HUGE SUCCESS! Details below: WHAT: 2nd Annual Houston Boys and Girls Club Summer Camp Weekend with Enron's incredible volunteers! WHEN: Boys Camp Friday afternoon (3:00 - 6:00pm), June 22 through Sunday afternoon, June 24 --OR-- Friday afternoon (3:00 - 6:00pm), July 20 through Sunday afternoon, July 22 Girls Camp Friday afternoon (3:00 - 6:00pm), July 6 through Sunday afternoon, July 8 --OR-- Friday afternoon (3:00 - 6:00pm), July 13 through Sunday afternoon, July 15 WHERE: Willis, TX (75 minutes from downtown Houston -- just north of Conroe) WHO: 6-8 counselors per camp to chaperone 75 kids (ages 7-16) HOW: Share all sports activities, including canoeing, hiking, fishing, organizing a talent show/bonfire/ghost stories, obstacle course, water balloon fights, softball, basketball, archery, football, etc. (Cooking and clean-up covered by the Houston Boys & Girls Club staff.) CONTACT: John A. Cote at ext. 33830 Volunteers Needed for Bring Your Child to Work Day! Bring Your Child to Work Day is Friday, June 29 Please email Jennifer Milligan if you are interested in volunteering and indicate your preference for indoor or outdoor activities. Have News to Share? To post news or events in Enron In Action, please e-mail your information to [email protected] no later than 12:00 noon the Thursday prior to the next Monday
,s mailing.

I believe this was intended for the other Susan Scott...I'm with Nat Gas trading. Thanks -----Original Message----- From: Nicolay, Christi Sent: Monday, April 30, 2001 10:55 AM To: Scott, Susan Subject: WEST DESKS--FERC authorizes power marketers to purchase from industrials (and more) ---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/30/2001 10:54 AM --------------------------- From: Christi L Nicolay 04/27/2001 11:01 AM To: Chris Lackey/PDX/ECT@ECT, Christopher F Calger/PDX/ECT@ECT, Tim Belden/HOU/ECT@ECT, Don Black/HOU/EES@EES, Jeff Golden/HOU/EES@EES, Marc Pana/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Alan Comnes/PDX/ECT@ECT, Ray Alvarez/NA/Enron@ENRON, Susan J Mara/NA/Enron@ENRON, Steve Walton/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Donna Fulton/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Jeff Brown/NA/Enron@Enron, Sheila Tweed/HOU/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, James E Keller/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Ozzie Pagan/Enron@EnronXGate, Leslie Lawner/NA/Enron@Enron, Joy Werner/Corp/Enron@ENRON, Karen A Cordova/HOU/EES@EES, Robert Frank/NA/Enron@Enron, Janet R Dietrich/HOU/EES@EES, Harry Kingerski/NA/Enron@Enron cc: Subject: WEST DESKS--FERC authorizes power marketers to purchase from industrials (and more) On March 14, 01, FERC issued an "Order removing obstacles to increased electric generation and gas supply in the West.." (Docket No. EL01-47). Most significantly, FERC authorizes industrials in WSCC to sell power to licensed power marketers (like EPMI and EES) effective 3/14/01 through 12/31/01. The industrial does not have to obtain its own power marketer license from FERC (subject to EPMI and EES making filings for the industrials). (This is similar to the authorization that EPMI and EES requested nationwide earlier this year -- we should hear from FERC on that request by mid-May.) In addition, FERC authorizes DSM sales at wholesale at market based rates. Specifics: Owners of generating facilities located at business locations in the WSCC and used primarily for back-up for self-generation (who will be "public utilities" subject to the Federal Power Act only while they sell at wholesale) can sell power at wholesale from such facilities to non-affiliated entities (like EPMI or EES) without prior notice under section 205 of FPA (would usually require 60 day advance notice filing). -- Waives certain parts of the filing requirements for the industrial; however, the industrial will still be subject to shortened filing requirements for dispositions of facilities and interlocking positions while they are selling at wholesale. -- EPMI and EES will make the FERC quarterly filings on behalf of the industrials for any of these purchases. Our report must show the names of the industrial; aggregate amount of capacity and/or energy purchased from each seller; and the aggregate compensation paid to each seller. Accounting/commercial folks for EPMI and EES-- please make sure these purchases are flagged in the accounting system, since the report will be separate from our big quarterly reports. -- This does not authorize the retail industrial customer to violate any rules or tariffs of its host utility. This does not authorize an industrial to resell power it purchases (only can sell what it generates); unless otherwise allowed (or not precluded) by its retail tariff -- must file a rate schedule at FERC for this, but FERC will be receptive to granting waivers and authorizations. -- This authorization expires after 12/31/01. Effective 3/14/01 through 12/31/01, retail customers in WSCC, as permitted by state laws and regulations, and wholesale customers are authorized to reduce consumption for the purpose of reselling their load reduction at wholesale at market-based rates. These transactions can occur in several ways: An aggregator can line up retail load to acquire enough negawatts to resell in a manner similar to what aggregators do when they sell power to retail load under retail choice programs. In addition, wholesale and retail load with contract demand service could resell their contract demands if the value of power is greater than the value of consumption. Similar quarterly reports would be due by EPMI/EES. NOTE: the industrial still has to obtain the interconnection agreement with transmission provider (may need new interconnection facilities, etc.) Remember that you still need to get transmission on OASIS when the power is wheeled away from the industrial. Other initiatives in the order: Utilities are encouraged to make DSM arrangements with wholesale customers. FERC waives the prior notice requirement for amended contracts that are required to be filed at FERC. Clarifies that DSM should be treated consistenly with all other types of incremental and out-of-pocket costs for utilities. Reminds transmission providers to keep ATCs current, including CBM and TRM. Provides incentive rates for new transmission projects that can be in service by July 1 (and to a lesser extent -- by November 1 of 01 and 02). Considers "rolled in" rates for generation interconnection (rather than direct assignment that we have now.) Extends temporary waivers through 12/31/01 of operating and efficiency standards for QFs. Allows QF to sell output above historical supply though a negotiated bilateral agreement at market based rates, if sold in California and the WSCC. FERC will review interconnection issues that impede generation from reaching load (ie, if a utility does not act within time limits on interconnection requests, etc.) Provides for increased staff and quicker gas pipeline additions review. Please let me know if you would like the order. Ray Alvarez (202-466-9170) and I (713-853-7007) can assist you with this. Thanks. <Embedded Picture (Device Independent Bitmap)>

sold! I'll initiate the call. -----Original Message----- From: Vince J Kaminski [mailto:[email protected]] Sent: Friday, June 30, 2000 3:44 PM To: [email protected] Cc: Vince J Kaminski Subject: RE: Pre-meeting Weathereffects site cruise Ed, Thursday works for me. What about 10:30 my time? Vince "Edward Krapels" <[email protected]> on 06/30/2000 02:43:00 PM Please respond to <[email protected]> To: "'Vince J Kaminski'" <[email protected]> cc: Subject: RE: Pre-meeting Weathereffects site cruise how about Thursday, July 6? -----Original Message----- From: Vince J Kaminski [mailto:[email protected]] Sent: Friday, June 30, 2000 3:29 PM To: [email protected] Cc: Vince J Kaminski Subject: RE: Pre-meeting Weathereffects site cruise Ed, A correction. I shall spend an entire day at PRC (performance review) on Friday, July 7. Can we do on another day Vince "Edward Krapels" <[email protected]> on 06/30/2000 12:40:59 PM Please respond to <[email protected]> To: "'Vince J Kaminski'" <[email protected]> cc: Subject: RE: Pre-meeting Weathereffects site cruise I'll still be here in Boston so we'd do it over the phone. OK? -----Original Message----- From: Vince J Kaminski [mailto:[email protected]] Sent: Friday, June 30, 2000 12:11 PM To: [email protected] Cc: Vince J Kaminski Subject: Re: Pre-meeting Weathereffects site cruise Ed, Will you be in Houston on that day or we shall do it over the phone? Vince "Edward Krapels" <[email protected]> on 06/30/2000 09:13:04 AM Please respond to <[email protected]> To: "'Vince J Kaminski'" <[email protected]> cc: "Jeffrey Shorter \(E-mail\)" <[email protected]> Subject: Pre-meeting Weathereffects site cruise Vince, How about a pre-meeting web site cruise on Friday, July 7 at 11AM EDT? Ed -----Original Message----- From: Vince J Kaminski [mailto:[email protected]] Sent: Friday, June 30, 2000 9:52 AM To: [email protected] Cc: Vince J Kaminski Subject: RE: Next visit to Houston Ed, July 12, 2:30 it is. I would like the pre-meeting site cruise. How can we arrange it? Vince "Edward Krapels" <[email protected]> on 06/30/2000 04:00:53 AM Please respond to <[email protected]> To: "'Vince J Kaminski'" <[email protected]> cc: "Jeffrey Shorter \(E-mail\)" <[email protected]> Subject: RE: Next visit to Houston Vince, We're all set for 2:30 on July 12. How about a pre-meeting web site cruise on Friday, July 7 at 11AM EDT? Ed -----Original Message----- From: Vince J Kaminski [mailto:[email protected]] Sent: Thursday, June 29, 2000 5:04 PM To: [email protected] Cc: Vince J Kaminski; Shirley Crenshaw Subject: RE: Next visit to Houston Ed, Wednesday, July 12, 2:300 will work for me. I shall be glad to review your website -- www.weathereffects.com. I shall invite some people who work on electricity in my group to join me. Vince "Edward Krapels" <[email protected]> on 06/29/2000 03:53:40 PM Please respond to <[email protected]> To: "'Vince J Kaminski'" <[email protected]> cc: "Jeffrey Shorter \(E-mail\)" <[email protected]> Subject: RE: Next visit to Houston Vince, Good to hear from you and I'm glad you're available. How is Wednesday at 2:30? I did look at EOL and am not surprised to see its quality. I was unable to say much about it in my Risk Electricity Hedging and Trading report because of deadline pressures. How is the site doing? I am intrigued by the competition for trading platforms and was astonished to hear that Goldman, Morgan, BP and Shell were going to launch a site to compete with yours. Talk about a shotgun marriage! If we have time next week, I could step you through our website -- www.weathereffects.com. I'm very proud of what we've done. I can't give out a password yet but would be happy to walk through the site with you over the phone using my password. It's a very ambitious site -- with state-of-the-art WSI weather (seasonal, 6-10, and day to day) driving a good load model for PJM and NEPOOL. ESAI contributes oil and gas input price forecasts, capacity judgments, and "herding" ideas to develop power price forecasts for same time periods. After one month's full-bore effort, I'm pleased with the results (e.g., we forecast Nepool onpeak to be $43 and it turned out $46). Have a great weekend. Ed -----Original Message----- From: Vince J Kaminski [mailto:[email protected]] Sent: Wednesday, June 28, 2000 5:29 PM To: [email protected] Cc: Vince J Kaminski; Shirley Crenshaw Subject: Re: Next visit to Houston Ed, I shall be available on both days. What about Wednesday, July 12, between 1:30 and 4:00. Please, let me know what time would work for you. It will be nice to see you again. Vince P.S. By the way, did you have a chance to take a look at the EOL? "Edward Krapels" <[email protected]> on 06/28/2000 02:49:41 PM Please respond to [email protected] To: Vince J Kaminski/HOU/ECT@ECT cc: Subject: Next visit to Houston Dear Vince, I will be returning to Houston during the week of July 10. ESAI and Weather Services International have launched -- after more than 18 months of R&D -- our service, called Energycast Power Trader and Energycast Gas Trader, for power traders in Nepool and PJM. I would be happy to review the service with you as well as take you on a tour of our web site. Are you available on July 12 - 13? Sincerely, Ed Krapels

State's Power Purchases Costlier Than Projected Tab is $6 million a day over Davis' requests Lynda Gledhill, Chronicle Sacramento Bureau Friday, March 16, 2001 ,2001 San Francisco Chronicle Sacramento -- California has spent about $6 million more a day buying electrical power than originally projected, according to a confidential document obtained yesterday by The Chronicle. State power buyers spent $2.7 billion between Jan. 17 and March 11, averaging $49 million a day. That amounts to about $6 million a day more than lawmakers figured using Gov. Gray Davis' appropriations requests. The confidential document was prepared by the Department of Water Resources, which purchases power on behalf of the state. It was handed to a group of lawmakers in a subcommittee hearing Wednesday by Water Resources Director Tom Hannigan. To the public, the document presents the first day-by-day look at how much California is spending on power purchases. Although the document shows more money being spent than originally believed, it didn't startle any of the handful of senators and Assembly members who saw it. "I don't think it was a surprise," said Assemblyman Dick Dickerson, R- Redding. Although the state is supposed to recoup the money spent on electricity, analysts and lawmakers say the open spigot on the state's treasury could jeopardize the state budget and fiscal well-being in the short and long term. For example, the state's power spending could jeopardize new education programs and transportation projects. The nonpartisan Legislative Analyst warned last month that lawmakers shouldn't count on all the new projects in Davis' proposed budget. Also, California has already been placed on a watch list by several credit rating firms, because of the deep debt that could be incurred in helping the utilities become financially stable. The watch list typically precedes a credit rating drop, which would cause the state's interest on bonds and loans to rise. "This (power purchasing) has a dampening effect," said Jean Ross, executive director of the California Budget Project, an independent policy group that tracks state spending. "Nobody knows where the economy is going, and how the energy crisis will affect it, so no one will know what the revenues will look like in the future." The biggest day of power buying happened on Feb. 16 when the state spent nearly $81 million for electricity, or $435 per megawatt hour. The smallest day was March 10 when the state buyers spent $40 million, or $219 per megawatt hour. Michael Worm, an analyst with the investment firm Gerald Klauer Mattison & Co., said what the state paid was in line with current energy prices. "That's where energy prices more or less have been for quite some time," he said. "Of course, they are dramatically higher than they used to be." The governor's office has refused to release information on how much the state has spent, said Steve Maviglio, Davis' spokesman. Maviglio said if generators found out how much the state spent the day before, they could force up the price the next day. But Assemblyman Tony Strickland, R-Thousand Oaks, said the public had a right to know how its money way being spent. "People need to know exactly what it is costing to keep the lights on," he said. "We want to know the whole story -- not just pieces." Strickland, along with media organizations including The Chronicle, have filed public records act requests to obtain information on how much the state has spent, along with the details of long-term power contracts signed by Davis. The original bill that authorized the state to purchase power appropriated only $500 million, but allowed the governor to use up to $10 billion if needed for power purchases by notifying lawmakers. The governor's office has sent five letters since Feb. 5 to lawmakers notifying them that additional money was needed. Based on these letters, which in total have requested an additional $2.5 billion, the news media and lawmakers estimated that the state was spending $43 million a day -- $6 million less than the actual costs shown on the Water Resources document. Since the state began purchasing electricity, the health of its budget has become dependent on a variety of things to come, making it as fragile as a house of cards. The money spent on power is taken from the state's general fund and is supposed to be returned through the issuance of state bonds. The bonds will be paid for with a portion of the rates that utility customers pay every month. - Tell Us What You Think Can you save 20 percent on your energy usage? Gov. Gray Davis is offering rebates for Californians who save on power starting in June, and if you've got a strategy for conserving, The Chronicle wants to hear it. Contact the Energy Desk, San Francisco Chronicle, 901 Mission St., San Francisco, CA 94103; or e- mail [email protected]. -- E-mail Lynda Gledhill at [email protected]. Paying for Power These charts show what the state spent for electricity on the spot market and the average price paid. For the time frame of Jan. 17 through Feb. 14, only periodic totals and averages were given. Period Amount spent 9 p.m. Jan. 17 through Jan. 18 $13,595,121 Jan. 19 - 29 399,000,000 Jan. 29 - 31 136,546,472 Feb. 1 - 12 495,755,000 Feb. 12 - 14 152,087,316 Chronicle Graphic ,2001 San Francisco Chronicle ? Page?A - 11

Bernard, My coordinates: Vincent Kaminski Managing Director - Research Enron Corp. 1400 Smith Street Room EB1962 Houston, TX 77002-7361 Phone: (713) 853 3848 (713) 410 5396 (cell) Fax : (713) 646 2503 E-mail: [email protected] Yes, we are going into a very interesting summer both here and in the UK. Vince "Murphy, Bernard" <[email protected]> on 03/27/2001 01:23:04 AM To: "'[email protected]'" <[email protected]> cc: Subject: RE: Thesis on Electricity Price Jump-Diffusions Hi Vince, Can you e-mail me your mailing address in Houston and I will send you a hard copy of the above today. Apologies for delay, but I wanted to ensure that Les Clewlow had received his copy in Sydney before distributing any other copies. Incidentally, today (March 27th) is a red letter day in the UK as the NETA / new electricity trading arrangements have gone 'live'. Should be interesting to observe the development of the paper market in the coming months - you're no doubt aware that IPE have just launched an electricity futures contract. Regards Bernard -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: 01 March 2001 15:37 To: Murphy, Bernard Cc: [email protected]; [email protected] Subject: RE: 1997 Risk paper on Pricing of Electricity Derivatives Bernard, Yes, I can read a DVI file. You can also cc my home address: [email protected]. I shall try to send you an answer to your question on weekend. Vince "Murphy, Bernard" <[email protected]> on 03/01/2001 09:18:58 AM To: "'[email protected]'" <[email protected]> cc: Subject: RE: 1997 Risk paper on Pricing of Electricity Derivatives Vince, I can send you a Scientific Word DVI file (at the weekend) if you can read SCientific Word files ? The dissertation hasn't been reviewed by Les or the External yet - although its been at FORC for 2 months. I think that the Empirical Chapter is probably the one which would be of most relevance to both our company's businesses - although I ultimately didn't have the time to 'explicitly' price the jump risk-premium which I conjectured is possibly implicit in the prices of exchange-traded electricity futures-options - rather I developed an implicit estimation procedure which will enable a rough assessment (with a little bit of further work, but not too much) be made of the price of jump risk in wholesale power markets. In other words, I assumed spot jump-risk to be undiversifiable, and essentially devoted 2 Theoretical Chapters to : 1) proving that a jump-diffusion trading model is "incomplete" (synthesising the securities markets framework with martingale representation theory) - note that I did not assume that markets could be dynamically completed with 'term structure' securities as in the HJM w/ jumps papers of Shirakawa and Das and; 2) deriving an explicit risk-adjustment process for 'implementing' the price of jump-risk using a jump-diffusion marginal indirect utility of wealth process (ie. a jump-augmented production economy approach in the spirit of CIR, Bates, Ahn & Thompson). Incidentally, I would be keen to find out if you or any of your team done much work on real-asset valuations in a spark-spread option-valuation framework ? I'm about to start a project evaluation of embedded optionality, and have a dilemna whether I should model the spot or forward gas / power price processes. With the former, I can model mean-reversion and jumps explicitly (obviously, important for capturing the optionality of out-of-the-money plant, which might otherwise be ignored in a pure-diffusion framework) but am not maximising the informational content of the available market data (that is, assuming there was a long-term market forward curve for electricity); whereas in the latter the driftless forward supposition means that I have to capture mean-reversion via the futures volatility function, and jumps are less easy to calibrate. Any suggestions ? Regards Bernard -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: 01 March 2001 14:54 To: Murphy, Bernard Cc: [email protected]; [email protected] Subject: Re: 1997 Risk paper on Pricing of Electricity Derivatives Bernard, I am forwarding your message to my assistant and she will mail you a reprint. I would be glad to take a look at your dissertation. Is it available as a publication, working paper? Vince "Murphy, Bernard" <[email protected]> on 03/01/2001 02:17:39 AM To: "'[email protected]'" <[email protected]> cc: Subject: 1997 Risk paper on Pricing of Electricity Derivatives Hello Vince, My name is Bernard Murphy - I received your e-mail address from Les Clewlow, who was my PhD supervisor at the Financia Options Research Centre at Warwick Business School. I've just finished my PhD on Electricity Price Jump Diffusions : A Theoretical and Empirical Study in Incomplete Markets - hence my interest in electricity price modelling and derivative pricing. I was looking to get hold of a copy of your 1997 paper, which has recently come to my attention : "The Challenge of Pricing & Risk-Managing Electricity Derivatives", The US POwer Market, Risk Publications, pp. 149-171. and Les suggested that I contact you directly (Les is travelling at present and doesn't have an electronic copy available) to request an e-copy. Incidentally, I am Lecturer in Finance / Financial Mathematics at University of Limerick (Ireland) and have taken a year out to work for Caminus UK, where I am working on introducing and developing a markets-based approach (spark-spread) to real asset valuations in the UK power industry. Thanks in advancve Bernard Murphy

Sorry Roby, Let me make myself more clear for you to understand. Yo my nigga, me and my ice are in for da ski ski in da Rocks! Me and my boyz will be in full effect. Fill me in, on when we will be going to "C" to the isa "O" to the iso and let me know how much bling bling I will need. Cuz I got ho's in dat area code! Naquin --- COREY ROBICHEAUX <[email protected]> wrote: > Good call Ross, CjRob wants to know why also?? > > > >From: [email protected] > >To: Scott Naquin <[email protected]> > >CC: Clint Eilbeck <[email protected]>, Myers Namie > <[email protected]>, > >Myers Namie <[email protected]>, Denis Naquin <[email protected]>, > > >Scott Naquin <[email protected]>, Tommy Porteous > <[email protected]>, > >"'COREY ROBICHEAUX'" <[email protected]>, Cypress Baton Rouge > <[email protected]>, > > Tanya Flynn <[email protected]>, Mike Gooch > <[email protected]>, > >Bernard Guste <[email protected]>, Clay Hufft <[email protected]>, > > >Matt Lenhart <[email protected]>, Cypress Litigation > ><[email protected]>, Ross Berthelot <[email protected]>, > > >Ross Berthelot <[email protected]>, Chris Bourgeois > ><[email protected]>, Scott Dehart <[email protected]>, don edgerton > > ><[email protected]> > >Subject: Re: THE OFFICIAL SNOW REPORT!!!!! > >Date: Wed, 24 Oct 2001 09:27:11 -0500 > > > > > >Naq, > > > >why do you refer to yourself in the 3rd person? "Jimmy likes > Elayne...Jimmy > >thinks Elayne is allright....." > > > > > > > > > >Ross F. Berthelot > >Underwriter > >Commercial Real Estate > >Ph: (225) 332-4252 > >Fax: (225) 332-3154 > > > > > > > > > > > > > >Scott Naquin <[email protected]> on 10/24/2001 08:28:28 AM > > > >To: Clint Eilbeck <[email protected]>, Myers Namie > <[email protected]>, > > Myers Namie <[email protected]>, Denis Naquin > ><[email protected]>, > > Scott Naquin <[email protected]>, Tommy Porteous > > <[email protected]>, "'COREY ROBICHEAUX'" <[email protected]>, > > Cypress Baton Rouge <[email protected]>, Tanya Flynn > > <[email protected]>, Mike Gooch <[email protected]>, > Bernard > > Guste <[email protected]>, Clay Hufft <[email protected]>, > Matt > > Lenhart <[email protected]>, Cypress Litigation > > <[email protected]>, Ross Berthelot > <[email protected]>, > > Ross Berthelot <[email protected]>, Chris Bourgeois > > <[email protected]>, Scott Dehart <[email protected]>, don > >edgerton > > <[email protected]> > >cc: > > > >Subject: Re: THE OFFICIAL SNOW REPORT!!!!! > > > > > > > >Naquin is in if that is the actual deal..........Clint, did Malboro > >promise you this deal if you would keep smoking? > >Props on the last email by the way, that shit was good! > > > >Give me the details as to when we need the first wave of cash! > > > >Who is going without dates because I don't want to be stuck roasting > >marsh-mellows and snuggling in front the fireplace! > > > >Naquin > > > > > > > >--- Clint Eilbeck <[email protected]> wrote: > > > This is the Official Snowking Report for the Year > > > 2002! > > > > > > How bout Keystone/Vail/Breckenridge/"Beaver" Creek all > > > in one trip for the Amazing Price of $590.00. Yes, > > > that is correct - No Bullshit. > > > > > > Listen Up- > > > This includes round trip tickets from N.O. to Denver. > > > 5 Days/4 Nights in a Condo in Keystone (Either 2 BR/2 > > > Bath or 3 BR/2 Bath w/ a fold out. Includes minivan, > > > since Keystone is approximately 91 miles from the > > > Denver Airport. Lift tickets for 4 Days at the > > > locations mentioned above (Sorry, only 2 days out of 4 > > > can be at Vail or Beaver Creek.) > > > > > > Dates: Jan. 10 - 14th (Thurs.-Mon.) > > > > > > If you act now, they will also provide free snowjobs. > > > They also said if you ride a Harley Sportster all the > > > way from B.R.,they will just give the trip away. I > > > asked about pets -Dogs have to sleep outside, Sorry. > > > > > > They have plenty of ski runs. One double black diamond > > > goes through the nig part of town, I suggest going w/ > > > cjrob through this treacherous run and don't slow down > > > on the flat areas. Another goes straight to Oz - we > > > all know who will be hitting this green run in his > > > Pink bib and jacket. They also have a married couple > > > run, no further comments on this one. 00. I'll be on > > > the bunny slopes checking out the MILF'S and the > > > beginners. I hope to give a few lessons. > > > > > > Anyway, who has questions or comments? > > > > > > CE > > > Don't forget your swim trunks! > > > > > > > > > __________________________________________________ > > > Do You Yahoo!? > > > Make a great connection at Yahoo! Personals. > > > http://personals.yahoo.com > > > > > >__________________________________________________ > >Do You Yahoo!? > >Make a great connection at Yahoo! Personals. > >http://personals.yahoo.com > > > > > > > > > > > > > >This transmission may contain information that is privileged, > confidential > >and/or exempt from disclosure under applicable law. If you are not the > >intended recipient, you are hereby notified that any disclosure, > copying, > >distribution, or use of the information contained herein (including any > > >reliance thereon) is STRICTLY PROHIBITED. If you received this > transmission > >in error, please immediately contact the sender and destroy the > material in > >its entirety, whether in electronic or hard copy format. Thank you. > > > > > _________________________________________________________________ > Get your FREE download of MSN Explorer at > http://explorer.msn.com/intl.asp > __________________________________________________ Do You Yahoo!? Make a great connection at Yahoo! Personals. http://personals.yahoo.com

There isn't much to the memo, but this is it! It came out well after the end of the work day for most folks. I believe that Patti has sent you my travel plans for next week. Have a great weekend! ---------------------- Forwarded by Sally Beck/HOU/ECT on 01/12/2001 09:20 PM --------------------------- Enron North America Corp. From: Office of the Chairman @ ENRON 01/12/2001 07:31 PM Sent by: Office of the Chairman@ENRON To: All Enron Worldwide cc: Subject: Managing Director and Vice President Elections The Managing Director PRC Committee met this week to elect individuals to Managing Director and Vice President positions. These employees are recognized as outstanding contributors to the organization, whose individual efforts have been instrumental in the continued success and growth of the company. We are pleased to announce the election of the following new Managing Directors and Vice Presidents. Please join us in congratulating these individuals on their new appointments. Managing Director
) Commercial Phillip K. Allen, ENA (EWS) West Gas Trading - Houston Franklin R. Bay, EBS Entertainment on Demand - Houston Timothy N. Belden, ENA (EWS)
) West Power Trading - Portland Michael R. Brown, EEL
) Executive - London Christopher F. Calger, ENA (EWS) West Power Origination - Portland Joseph M. Deffner, ENA (EWS) Treasury & Funding - Houston Timothy J. Detmering, ENA (EWS) Corporate Development - Houston William D. Duran, ENA (EWS) Generation Investments - Houston Robert S. Gahn, EES Commodity Structuring - Houston Kevin C. Garland, EBS Broadband Ventures - Houston Ben F. Glisan, Jr., Corporate
) Global Equity Markets - Houston Robert E. Hayes, ETS COMM Marketing - Houston Phillip R. Milnthorp, ENA (EWS) Canada Origination & Trading - Calgary Managing Director
) Commercial Support Sally W. Beck, ENW (EWS) Energy Operations Management - Houston Fernley Dyson, EEL Finance & Support Services - London Vice President
) Commercial Gregory Adams, EES MMC Management - Houston Robert Bayley, EEL-UK Origination
) London Jack D. Boatman, ETS Market Development
) Houston Rhenn Cherry, EES Assets/Labor
) Houston Niamh Clarke, EGM (EWS) Liquids Trading
) London Peter Crilly, EEL-UK Origination
) London Derek J. Davies, ENA (EWS) Canada Origination
) Calgary Mark D. Davis, Jr., ENA (EWS) East Power Trading
) Houston Charles Delacey, Corporate Finance
) Houston Paul Devries, ENA (EWS) Canada Origination
) Toronto Christopher H. Foster, ENA (EWS) West Power Trading
) Portland Jeffrey F. Golden, EES Corporate Development
) Houston Michael D. Grigsby, ENA West Gas Trading Group - Houston Troy A. Henry, EES Bundled Sales-Heavy Industrial
) Houston Rogers Herndon, ENA (EWS) East Power Trading
) Houston James W. Lewis, EES Underwriting
) Houston Christopher Mahoney, EGM (EWS) Liquids Trading
) London Andrew Marsden, EBS Broadband Ventures
) London John McClain, EBS Broadband Wholesale Origination
) Houston Kevin J. McGowan, EGM (EWS) American Coal
) Houston Albert E. McMichael, Jr., ENA (EWS) Gas Commodity Structuring
) Houston Ermes I. Melinchon, Central America Origination
) Houston Steven R. Meyers, EES Consumption
) Houston Lloyd D. Miller, ENA (EWS) Portfolio Management
) Houston Michael A. Miller, Wind Development / Execution-General Administration
) Houston Marcello Romano, EBS EEL-Broadband Trading
) London David A. Samuels, ENW (EWS) EnronOnline - Houston Per A. Sekse, EGM (EWS) Global Risk Markets
) New York Edward S. Smida, EBS Video on Demand
) Houston Mark Tawney, EGM (EWS) Weather Trading
) Houston Jon Thomsen, EBS Business Development
) Latin America/Canada
) Portland Barry L. Tycholiz, ENA (EWS) West Gas Origination - Houston Frank W. Vickers, ENA (EWS) East Gas Origination
) Houston Amit Walia, Corporate, Corporate Development
) Houston William White, EBS Global Bandwidth Risk Mgmt
) Houston Jonathan Whitehead, EEL EA Trading
) Japan Mark Whitt, ENA (EWS) West Gas Origination
) Denver John A. Zufferli, ENA (EWS) Canada Power Trading - Calgary Vice President
) Commercial Support Beth Apollo, EEL Financial Operations Executive
) London Marla Barnard, EBS Human Resources
) Houston Karen L. Denne, Corporate, Public Relations
) Houston Georganne M. Hodges, ENA (EWS) Trading, Origination & Power Plant Accounting
) Houston Phillip Lord, EEL Transaction Support
) London Peggy Mahoney, EES Marketing
) Communication
) Houston Steven Montovano, Corporate, Government & Regulatory Affairs
) Dublin Laura Scott, ENA (EWS) Canada Accounting
) Calgary Richard C. Sherman, ENA (EWS) Transaction Support
) Houston Gregory W. Stubblefield, EES Financial Planning & Reporting
) Houston Dennis D. Vegas, CALME International Public Relations
) Houston Vice President
) Specialized Technical Sami Arap Sobrinho, ESA (EWS) Legal
) Houston Merat Bagha, EBS Sales Engineering
) Houston Justin Boyd, EEL Legal
) London Mary Nell Browning, EBS Legal
) London Jonathan Chapman, EEL Legal
) London Robert D. Eickenroht, Corporate, Legal
) Houston Mark Evans, EEL Legal
) London David Forster, ENW (EWS) EnronOnline
) Houston Janine Juggins, EEL Tax
) London Peter C. Keohane, ENA (EWS) Canada Legal
) Calgary Pinnamaneni V. Krishnarao, ENA (EWS) Research Group
) Houston Travis C. McCullough, ENA (EWS) Finance Origination, Mergers/Acquisitions
) Houston Michael Popkin, ESA (EWS) SA- Risk Management/Network Integration
) Houston Elizabeth A. Sager, ENA (EWS) Physical Trading
) Houston Richard B. Sanders, ENA (EWS) Litigation
) Houston John W. Schwartzenburg, EECC Legal
) Houston Michael D. Smith, EES Legal
) Houston Marcus Vonbock Und Polach, EEL Legal
) London Jay C. Webb, ENW (EWS) EnronOnline Systems
) Houston Vice President
) Technical Donald R. Hawkins, ETS Quality Management
) Houston John R. Keller, ETS Engineering & Construction
) Houston

Jeff; In response to your questions, I cannot explain why everyone missed this bill in the past, I have raised it to the attention of my clients twice in the last two months. However, now that it is moving they have got the message. Williams (Kern River) is going to host a meeting today to create a coalition to oppose the bill. Bev Hansen knows where the meeting will take place. In addition to Williams, I understand that Questar, WSPA, and other retail customer groups will join the coalition and oppose the bill. My client Wild Goose will also be listed in opposition, but they don't carry that much clout or name recognition so far. I am hopeful that other groups will surface soon. As for the bill itself, the problem is two fold. First, the CPUC decides what infrastructure to build at the request of the utilities. They take input from customers, but Loretta is a command and control type all the way, and she will try to scare away private capital investment by interstate pipelines by mandating that the utilities build a gold-plated state-regulated system. While the bill does not (and cannot legally) bar interstate pipelines from coming into the state, it has provisions which will prevent large customers from signing up with the interstates. The large customers have to commit to take firm service on a 5 year basis with exit fees. If they don't take this, they can only get interruptible service from the utilities. Many if not all large customers, especially generators cannot afford to take partial service from an interstate and have only interruptible access to the LDC system. This is the same dilemma that the RLS tariff caused. My belief is that the obligation on the part of the commission to provide the utilities with cost recovery for the new investments will be used as justification by the utilities for another attempt to reinstitute the RLS tariff or an onerous peaking rate. The Commission will impose a premium price on service to customers who have not undertaken the firm 5 year commitment and will therefore be unable to economically take partial requirements service from an interstate. My view is based on Sempra's reaction to the current peaking rate proposed decision and statements by Lynch's office. This could interfere with Enron gas sales over the interstates, and would certainly threaten any Transwestern plans for building across the border into California, although that does not appear to be a high priority at this time. This bill will also make it more costly to develop gas supply arrangments for new power plants which had hoped to direct connect to interstate pipeline capacity for a portion of their needs. Please call if you have further questions. Mike Day -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Tuesday, July 17, 2001 10:09 AM To: [email protected] Cc: [email protected]; [email protected]; [email protected]; [email protected]; [email protected] Subject: Re: AB 23XX Bad Bill Alert I've taken a quick look at the bill and have attached for easy viewing. Few questions. Mike, I understand from our conversation yesterday that your following this on behalf of Questar. Do we know if the other pipelines have been active in any discussions on this bill? What about the generators? Have then been involved, since presumably, their in need of lots more capacity (and they're referenced in the bill)? What about large customers? They been screaming for more infrastructure, too, and many have blamed SoCalGas (and the PUC) for not delivering it. Do we know if pipelines, generators, large customers are supporting or opposing the bill? I'll try to check around, too, in between the electric mayhem. There doesn't seem to be anything in the bill that prevents the interstates from building into the state. If that's true, wouldn't the PUC take those projects into account when doing its analysis and only require the utility to construct (and noncore to take) capacity that isn't already being met by others (i.e., interstates) bringing pipe into the state? Any info you can provide on these fronts would be very useful. Don't want Enron too far out in front of opposition until we find out a bit more regarding 1) whose fer and agin it and 2) analysis of what the bill actually does/does not do. Thanks again for the heads up. Best, Jeff (See attached file: 23XX.pdf) James D Steffes To: Harry Kingerski/Enron@EnronXGate cc: Jeff Dasovich/NA/Enron@Enron, Susan J 07/17/2001 Mara/NA/Enron, Paul Kaufman/Enron@EnronXGate 07:43 AM Subject: AB 23XX Bad Bill Alert Harry -- Can you track down this bill and determine impact? We'll discuss on Thursday. Jim ---------------------- Forwarded by James D Steffes/NA/Enron on 07/17/2001 07:43 AM --------------------------- MDay <[email protected]> on 07/16/2001 06:03:33 PM To: "'Bev Hansen, Enron lobbyist'" <[email protected]>, "'Hedy Govenar, Enron Sacto lobbyist'" <[email protected]>, "'Scott Govenar, Enron lobbyist'" <[email protected]>, "'Harry Kingerski'" <[email protected]>, "'Jim Steffes, Enron'" <[email protected]> cc: Subject: AB 23XX Bad Bill Alert Is AB 23XX moving with a chance of passage? I just learned that this Pescetti bill that was AB 1425 was revived as a 2X bill. It is very anti-competitive, and could hurt a number of TW, EES, or ENA gas deals by binding customers to 100% utility service through the imposition of large exit fees by the CPUC. If there is a chance that it moves, we need to discuss the effect of this bill. Mike Day http://info.sen.ca.gov/pub/bill/asm/ab_0001-0050/abx2_23_bill_20010625_amend ed_sen.pdf

The Austin Group Energy, L.P. Monthly Newsletter Let's describe a typical and recurring nightmare for generating unit operators. It's noon on August 15, temperatures have reached the upper 90s all week; you're well into your reserve margin to serve native load, when a unit trips off line. Do you scramble to find replacement power at record high prices and worry about the consequences later? Or, have you prepared for this event? When the degree of risk has not been quantified, fear of the unknown can lead to restless nights, and understandably so. The financial implications can be astounding when a unit outage occurs during a period of high spikes in market prices. How does this relate to the recruitment and hiring of talent within your shop? Allow me to bring the story together. What would you do if your top employee came to you and said, "You've been great to me and I've learned alot, but I just accepted a job at your level right down the road and they like me so much they want me to start tomorrow." Do you spring into 911 mode or are you ready for this day. Start a relationship today with The Austin Group Energy. We will keep you aware of all available talent in your market area. These candidates are currently employed and do not answer ads. They stay in touch with opportunities through us to ensure confidentiality. Why would Top 5 marketing companies pay us for the recruitment and placement of over 400 successful hires when they could hire them on their own. The smart and proactive companies understand how to outpace the pack when it comes to hiring talent, they call The Austin Group Energy. THE FOLLOWING CANDIDATES ARE AVAILABLE FOR IMMEDIATE OPPORTUNITIES: Ref# 00012123 Power Options Trading Desk This PhD candidate is responsible for long term derivatives trades/structures (Asian options, heat rate options, weather/power derivatives structures, swing options etc.) Ref# 00012124 Rotational Program- Risk Analytics This MBA Finance candidate is analyzing/evaluating structured transactions and derivative instruments. Has developed a VBA-based delta-adjusted risk exposure model for all asset management groups. Designed intermediate-term forward power curve forecasting model based on gas forward curve. Created Visual Basic Monte Carlo simulator for Excel for option analysis. Ref# 00012125 Quantitative Analyst This M.S. in Applied Mathematics candidate builds short term models necessary to forecast/schedule usage on a portfolio basis, by various levels of aggregation (e.g. region, congestion zone, weather zone, customer, etc.) Constructing statistical and econometric models to accurately predict seasonal customer usage based on rate class, calendar and geographic climate patterns. Ref# 00012126 Quantitative Analyst - Manager This candidate developed and implemented two Value-At-Risk (VAR) methods for Natural Gas. Developed and implemented models for pricing and hedging exotic natural gas options (Gas Daily and Peaker). OpenLink experience with VaR and mark-to-market calculations. Ref# 00012127 Director Derivatives Trading and Portfolio Management Developed Nymex and locational options, position risk management model. Evaluated and assisted in the process of selecting and implementing a new real time front and back office financial system with VAR capabilities. Structured deals for marketers using embedded financial products and traded natural gas options and fixed for float swaps. Priced and hedged advanced options and swaps such as swaptions, asians, extendibles, expandibles, and spread options. Ref# 00012128 Risk Control Analyst Support Origination and Trading activities by providing daily mark-to-market values and VaR reports through accurate and timely entry of financial transactions into RMS system. Maintain database for RMS system and Integrated Commodity Trading System (ICTS) for entry of financial trades. Ref# 00012129 Risk Manager Responsible for all mid-office trader support functions. Responsibilities include daily senior management position and P&L reporting, process improvements, system implementations, structuring of originated transactions, and rollout of an operational analysis plan. Ref# 00012130 Senior Commercial Analyst: Pricing and Structures Developing model to incorporate basis and transportation into gas fuel costs utilized in mark-to-market valuation of a gas-fired generation asset. Determined market value of regional power by confirming the marks estimated by the trade desk against independent broker prices. Forecasted resulting previous day's trade-to-market figure for preliminary valuation of book value. Ref# 00012131 Director - Risk Management Analyze financial markets and advise physical traders of hedging and trading opportunities. Analyze market, secure management approval of trading strategies and execute financial trades. Generate position reports for upper management. Ref# 00012132 Risk Management Specialist Perform risk management functions for the gas trading organization, including daily position and P&L reporting. Ensure deal validation and perform problem resolution for executed trades. Create daily VaR estimates for both cash and term traders. Ref# 00012133 Risk Analyst Determine market value of regional power, confirming the market values estimated by trade desk against prices set for independent brokers. Forecast resulting previous day's trade-to-market figure for preliminary valuation of book value. Participate in daily Value at Risk calculations, exception reporting for daily variances, updating of daily price curves, and updating proprietary models which value long term transactions. Paul Johnson President- TAGE Ofc (281) 600-8145 Mbl (281) 814-3886 Visit our Website http://www.austingrp.com - Paul Johnson.vcf

To signatories to the Comprehensive Settlement for SoCalGas & SDG&E: A few more "errata" I plan to make, absent objection: A. Creditworthiness Sections (1.2.3.2 and 2.2.3.2): In 1.2.3.2 on p.21, under b., subitem ii. should have "or" inserted at the end of the subitem and the "or" at the end of subitem iii. should be stricken (so that the reports or forms listed in i., ii., and iii. are alternatives to each other (customer only has to provide one of the three) and subitems iv. and v. are additional required items). In 2.2.3.2 on pp.36-37, make parallel changes in the "or"s as stated above. On p.22, under h., subitems i. through v. should be indented more than h. and then items j), k) and l) should be renumbered i., j., k. (this will then match section 2.2.3.2, which has the correct spacing/alphanumbering). On p.22 and p.37, we'd like to drop the reference to "U.S." in the reference to a letter of credit issued by a major "U.S." financial institution. SoCalGas has realized that it has already had dealings with Canadian or other foreign-owned customers where it was reasonable to rely on letters of credit from major financial institutions of the parent's country. (This should be ok with Paul Amirault, eh?) B. Btu content On pp.10 (twice) and 31, the settlement says we are assuming 1,016 Btu/mcf for the heating value of gas (subject to revision by Commission during term of settlement). We have the wrong units. It is 1,016 Btu per cubic foot, not per thousand cubic feet. We'd propose to change the number to 1,016 Btu/cf (not "1,016 Btu/mcf") On p.33, we got the units right the first time and don't need to change them on that page. Again, I'd appreciate you getting back to me or Brian Cherry by noon Friday if you have any problem with the above changes. -- Glen Sullivan -----Original Message----- From: Sullivan, Glen J. Sent: Wednesday, April 26, 2000 12:58 PM To: 'MBD'; 'Leslie, John'; 'Elsesser, Evie'; 'McCrea, Keith'; 'Pocta, R. Mark'; 'Dasovich, Jeff'; 'Beach, Tom'; 'Burkholder, John'; 'Amirault, Paul'; 'Alexander, Michael'; 'Chancellor, Craig'; 'Dingwall, B.'; 'Douglass, Dan@SES'; 'Fawcett, Jeff'; 'Porter, Doug'; 'Rochman, Michael'; 'Counihan, Rick'; 'Bayless, David'; 'Paul, Joe'; 'Jimison, John'; 'Foss, Robert'; McVay, Nancy W - TPNWM; 'Scott, Susan'; 'Karp, Joe'; 'Johnson, Pamela'; 'gileau, patrick' Cc: Lorenz, Lad - TPLPL; Nelson, Eric B. - TPEBN; Morrow, Rick - TP3RMM; Follett, B. David - TPDBF; Brill, Thomas R.; Van Lierop, Jan - TP2JXV; Harrigan, James P. - TP1JPH; Sakarias, Wayne P.; Purves, Ralph A.; Teeter, James S.; Watson, Steven - TP2SAW; Cherry, Brian - TPBKC; Whitaker, Sue Subject: RE: Gas Industry Settlement To signatories to the Comprehensive Settlement: ALJ Biren has given us until Friday of this week (April 28, 2000) to file "errata" to the Comprehensive Settlement. So far, I am planning to make the following non-substantive changes: 1. The table of contents was seriously messed up by an "automatic update" feature in Word just before we duplicated and filed. I will be putting it back to the state you saw in the final draft. 2. On p.7, section 1.12, put a period at the end of the last sentence. 3. On p.9, section 1.1.3.1, two thirds of the way down the page, I will be changing "subject to adjustment annual by the base rate PBR formula" to "subject to adjustment annually by the base rate PBR formula". 4. On p.27, section 1.5.4, in the third full paragraph on the page, I will be changing "If only one customer has an OFO day" to "If only one customer class has an OFO day". 5. Also on p.27, section 1.5.4, bottom line on the page, I will be filling in the blank with "C" (so it reads "Appendix C") In the category of "maybe substantive", 1. On p.10, section 1.1.3.2, three lines from the bottom of the page, the date "October 1, 2000" would be changed to "October 1, 2001". This sentence refers to including the cost of backbone transmission for core customers buying gas from SoCalGas in the "procurement" rate. Obviously, our intent was to do that only once we had unbundled backbone transmission, which happens on October 1, 2001. In the category of "substantive": 1. Our capacity term sheet had said that we would unbundled "additional" (non-reliability) storage for CTAs effective upon implementation of the settlement (See p.4). The filed settlement managed to drop the section that provided for this option for CTAs prior to the principal storage change on April 1, 2001. (The filed settlement is ok for the period starting April 1, 2001). So, to be consistent with the term sheet, we need to insert something back into the settlement to allow CTAs to opt out of non-reliability storage in the period from the effective date (90 days after approval) to April 1, 2001. Obviously, this may not be a very long period. John Leslie has suggested inserting at the very beginning of Section 5.4.4.3: "In the partial storage year beginning on the effective date of this Settlement Agreement, and....[continue with current text]." We would need to cover as part of implementation filings the exact mechanism/pricing for SoCalGas purchasing gas in storage owned by CTAs if they opt out of nonreliability storage prior to April 1. 2001. SoCalGas and SDG&E are ok with John's language and want to make sure it is ok with other signatories. If you have any problems with any of these changes, please contact me or Brian Cherry by noon on Friday, April 28. My email is [email protected] and my phone is (619) 699-5162. Brian's email is [email protected] and phone is (213) 244-3895. We are looking at the possibility of two or three additional changes, and Brian may send you a follow-up message. -- Glen Sullivan Sempra Energy Law Dept.