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Chris & Jeff -- Given your pending discussions, thought you should see this information. Not quite sure what SDG&E is up to here, but wanted you to be aware. Jeff, don't know what Mona is thinking about doing, but you may want to talk with her about responses. Jim ----- Forwarded by James D Steffes/NA/Enron on 10/09/2000 03:29 PM ----- Mona L Petrochko@EES 10/09/2000 02:59 PM To: Gary Mirich/HOU/EES@EES cc: Douglas Condon/SFO/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, West GA, Harry Kingerski@EES, James D Steffes/NA/Enron@Enron, Joe Hartsoe@Enron Subject: Re: SDGE represenatation of future market conditions Gary, Thanks for passing this information along. This is a pretty well-documented discussion, which is always helpful when we contact the utility about such conduct. Obviously, this is very concerning about SDG&E counter-marketing, while promoting choice. In addition some of their assumptions seem to require tremendous leaps of faith. I haven't seen an application to aggregate yet, but I would assume there would be heavy protests to such a proposal. (SDG&E solicited my feedback on such a position, and I told them we weren't interested.) I'm not sure what type of ruling they are expecting from FERC, lower price caps or a return to cost-based rates (pretty extreme). Decision, per Sue Mara, is not expected until December. SDG&E does have bilateral contracting authority and at least thus far has not exercised it. Customers have already experienced what "leaving it to SDG&E" will get them. Once bitten, twice shy. Enron Energy Services From: Gary Mirich 10/09/2000 12:03 PM Phone No: 602-840-3800 To: Mona L Petrochko/SFO/EES@EES cc: Douglas Condon/SFO/EES@EES, Martin Wenzel/SFO/HOU/EES Subject: SDGE represenatation of future market conditions Mona, I thought you should have the following information due to your ongoing work with SDGE to facilitate open market choice by their regulated customers. As you know I've been working with SAIC to close business for the last 60 days. We had offered them a 26 month price on 50% of their load for approximately 7.5 cents/kWh. They compared our offer(s) to others that were significantly higher. As part of their decision-making process, and in an attempt to confirm that SDGE wasn't preparing to release any kind of drastic rate reduction/relief in the immediate future, SAIC's treasurer called SDGE's CEO for a meeting with an SDGE exec. On 9/27, SAIC's treasurer Dan Baldwin met with SDGE's SVP of Fuels and Power Ops, Gary Cotton. Another SAIC exec, Rene Terrazas, VP Real Estate, was also in that meeting. He is my source for the following comments from SDGE: 1). SDGE expects to be given authority very soon to aggregate customers, much like direct access providers, in order to provide better-than-market pricing. 2). SDGE expects FERC to "come out with something" that will reduce the prices that retail standard offer customers are paying. No detail from SDGE on what form FERC's action would take or when. 3). SDGE's recent bilateral contracting authority should result in lower prices for SAIC. 4). SDGE suggested that very few customers have switched to DA because their is too much uncertainty about the future. He said that SAIC is part of 97% of SDGE's customers that have not switched to date. 5). This SDGE exec said he thought that prices would soon return to a more reasonable level, and that SAIC should be expecting direct access prices around 5 cents/kWh. Even though SAIC currently suffers from analysis-paralysis, SDGE's comments about the state of the market are very concerning. First, pawning off SAIC to an exec in fuels and ops for advise about the retail open market hardly seems appropriate. Second, SDGE's suggestion to SAIC that they are somehow in good company by waiting is directly in contrast to what SDGE's regulatory affairs people are attempting to promote with the supplier selection initiative. Third, for SDGE to even hint that there are regulatory (FERC, CPUC, or otherwise) "fixes" soon to be announced that will relieve SAIC's pricing dilema is at the very least irresponsible. In Rene's opinion the SDGE exec was using the same old "fear, uncertainty, and doubt" lines that utility execs typically employed prior to direct access in their efforts to retain customers! Finally, and most concerning to me, is that SDGE has an executive willing to make a guess about the price SAIC should be expecting to receive in this market. Many market sources (eg: Bloomberg) besides Enron wouldn't predict a price as low as 5 cents. Nevermind that Mr. Cotton is likely unqualified to make such a claim, but even if he was, I think he is way off base for even entertaining the question. In light of our efforts to work with SDGE to facilitate customer transition to DA, I think these comments indicate that their executive team is not truly on board with the work of SDGE's regulatory affairs. EES is in a "stand down" right now with SAIC, who decided after their meeting with SDGE that Enron's offer may not be as competitive as previously believed. Their treasurer has decided to wait and see - perhaps a month or more. Irrespective of my ability to close this deal today or in the future, I wanted you to be aware of the SDGE's comments and how they've impacted one SDGE customer's decision to "leave the utility". Perhaps we should suggest that customer inquiries like those of SAIC go through regulatory affairs instead of execs who have twisted and/or minimal information and a willingness to guess about the future. Your comments welcome. thanks much Gary.

Wonderful to hear from you. Descriptions of each transaction follow (in blue) below the respective item. Best regards. Steve. -----Original Message----- From: Kitchen, Louise Sent: Wednesday, July 18, 2001 3:00 PM To: Douglas, Stephen H. Subject: RE: EWS Tax Department Update Good report - these are all the deals under the Americas which I know nothing about - what are they? Thanks Louise Panama Trading Office - Had discussions with the Transaction Support group and PWC-Panama regarding Panamanian tax return. Enron of the Americas is the 100 percent shareholder of a Panamanian trading subsidiary called Enron Capital & Trade Global Resources Corp. ("ECTGR"). Essentially, by transacting through this company and keeping income invested off-shore, Enron is able to avoid payment of taxes on trading income generated by ECTGR. This result, however, requires that ECTGR trade in Panama in a manner that is not taxable (essentially, ECTGR must trade products that are delivered outside of Panama or within Panama inside a free-trade zone). The Panamanian government has requested that we establish that ECTGR's trading income is derived from qualified activity and the EWS Tax Group is, in turn, working with Transaction Support (which books ECTGR's trades under a Services Agreement) and PWC (which files the Panamanian return for us) to properly document things for the government. We are confident that our position with regard to ECTGR will be agreed with. Project Atlas Tube ("Atlas") - Met with origination team and EWS Reporting and Analysis Tax group to discuss initial deal structure and related tax consequences. Atlas consists of an inventory management strategy whereby an Enron special purpose vehicle will both buy hot rolled coil steel from and resell the same to Atlas Tube, Inc. on a just-in-time inventory basis. This is a very interesting deal but was misplaced in the report - it should be listed under Enron Industrial Markets. It is similar to the "Huntco transaction" and I would be delighted to send you a transaction chart if it would be of interest. Let me know. Project Desperado (Velocity III) - Met with Enron Corp. tax and deal team regarding Velocity III transaction and structure. Reviewed and revised transaction agreements and discussed such with Enron Corp. tax and deal team. This transaction involved the sale of various equity investments that had been made by Enron of the Americas in various companies (most significantly, Catalytica, Advanced Mobile Power Systems and Hanover Compressor) to Whitewing Associates, LP. A total of approximately $205 million was raised in connection with the sale and resulted in positive funds flow for accounting purposes. Whitewing LP is a deconsolidated entity in which Enron possesses an approximate 98 percent economic interest (deconsolidation is achieved, as it has been explained to me, by virtue of Enron sharing voting control with an unrelated person - the Osprey Trust which, in turn, is essentially John Hancock). The sale of these investments, from a tax perspective, resulted in a slight tax gain (approximately, $61 million) that had been previously reserved for for financial reporting purposes. Project Hartwell and Project Athens Energy Centers - Advised regarding state income, franchise, sales and use taxes relating to construction of power plants in Clark and Hunt Counties in Georgia. Plants to be sold prior to commercial operation. Enron of the Americas is developing two plants (described as "Simple Power Plants") in Georgia with the intent of selling the plants before they become operational. EWS Tax analyzed the various state and local taxes applicable to the construction of the plants, inputs (i.e., natural gas) to the plants during operations and income resulting from operations. Georgia imposes a sales tax on components used to construct the plants (granting, as well, however, an exemption from such taxes if appropriate tax certificates are acquired), provides a state tax exemption on the purchase of natural gas if it is used to generate electricity (but, otherwise, the local government charges a 3 percent tax on such natural gas) and, finally, taxes income earned by the company generating the electricity (at 6 percent on U.S. federal adjusted net income). Utiliquest Transaction - Met with deal team to discuss disposition of ENA's 74% interest in Utiliquest LLC. Reviewed unit purchase agreement and met with outside counsel to other unit holders to discuss tax structuring and benefits of using synthetic 338(h)(10) structure. Utiliquest is an investment in a utility locating company that the Principal Investment Group of Enron of the Americas is selling. EWS Tax helped develop the structure by which the purchaser of the investment will be able to push their purchase price paid for the stock in Utiliquest to the assets of Utiliquest (essentially, this improves the purchaser's after-tax yield (through increased depreciation) without detriment to Enron). -----Original Message----- From: Douglas, Stephen H. Sent: Tuesday, July 17, 2001 8:31 PM To: Bowen Jr., Raymond; Frevert, Mark; Kitchen, Louise; Lavorato, John; Mcconnell, Mike; McMahon, Jeffrey; Piper, Greg; Shankman, Jeffrey A.; Whalley, Greg Subject: EWS Tax Department Update Attached is a summary of the many transactions currently being supported by the EWS Tax Department on behalf of Enron Wholesale Services and its Enron of the Americas, Enron Global Markets, Enron Industrial Markets and Enron Networks businesses. I would be delighted to speak with you regarding any of the listed transactions and can be reached at x30938. Best regards. SHD. << File: SDH-EWS Tax Report7_17_011.doc >>

Candidly, Mark wanted to leave it open as to whom it would report. He wanted to have control in it's growth and staffing, although it would be coordinated with Thor. Mark (and I) talked to Thor about this a while ago, and will begin weekly video calls in the new year about strategy, updates, new products, and growing this business continentally. (Mark was still concerned about the members of the Oslo weather group that Thor managed poorly--in Mark's mind). I'm sure we will get to a point that works best organizationally with Thor having a role. However, when you look at the P&L of the business, is doesn't illustrate his support of the business, which we are addressing. Hope this helps, and you are relaxing a little.... Jeff Mike McConnell 12/19/2000 10:07 AM To: Jeffrey A Shankman/HOU/ECT@ECT cc: Subject: Organizational Announcement - revised comments Jeff, Below is an email from John. Please let me know how to respond. I know you guys talked about this. Thor was in the loop here wasn't he? I know we took out the Thor reporting piece but in reality they do report up through him. How many people do we expect in London? John and I did talk about this and I didn't really think of it lately. Mike ---------------------- Forwarded by Mike McConnell/HOU/ECT on 12/19/2000 09:59 AM --------------------------- John Sherriff 12/19/2000 01:29 AM To: Mike McConnell/HOU/ECT@ECT cc: Subject: Organizational Announcement - revised comments After re-reading your note - I see that it is not a trading desk in London but a marketing desk - but it is still unclear to me how this fits into the Oslo desk. Also shouldn't we be talking about this or your guys talking to Thor who is running the European Weather business? John ---------------------- Forwarded by John Sherriff/LON/ECT on 19/12/2000 07:31 --------------------------- John Sherriff 19/12/2000 06:25 To: Mike McConnell/HOU/ECT@ECT cc: Subject: Organizational Announcement I thought we had specifically agreed that we were not adding a market making function in London! If you have got traders to spare I can use about six of them. John ---------------------- Forwarded by John Sherriff/LON/ECT on 19/12/2000 06:28 --------------------------- Enron Global Markets LLC - Office of the Chairman From: Enron Global Markets LLC - Office of the Chairman@ENRON on 18/12/2000 21:21 CST Sent by: Enron Announcements@ENRON To: Enron Wholesale Services cc: Subject: Organizational Announcement Enron Global Markets (EGM) has made numerous organizational changes as its businesses continue to grow and expand around the world. We are pleased to announce the following changes within EGM. Financial Trading The Convertible Arbitrage desk has moved from EnronCredit.com to the Financial Trading group under Gary Hickerson. Mike Bradley will manage the desk. Billy Lemmons has joined Gary Hickerson's group from EIM. He is exploring the agriculture value chain and origination opportunities. Transportation and Shipping Dan Reck will be transitioning out of the coal group and will be exploring our rail and trucking initiatives. These markets together represent approximately $105 billion notionally, and we believe there are many synergies between our energy, coal, and freight trading businesses. Enron is currently trading dry-freight through EOL and is a leading market maker in this new product. The shipping business is growing very quickly. We have asked Pierre Aury and Scott Montcrief to co-lead our worldwide vessel trading businesses. Scott will be responsible for all liquids vessel businesses and Pierre will manage all dry vessel businesses. The LNG vessel business currently managed by Wayne Perry will remain in the LNG group, but will also report to and coordinate with Pierre and Scott. Weather Our worldwide weather operations will continue to report to Mark Tawney in Houston. This business, which includes trading weather products in 10 countries and 40 states in the U.S., is also rapidly expanding. Mark will have all V@R allocation responsibility between Sydney, Tokyo, Oslo, and Houston. In addition we will be forming a weather-marketing desk in London. Crude and Products Bill White will be coming over from EBS and will have responsibility for all U.S. financial crude trading. Don Schroeder will continue to have oversight and lead our physical crude business. Mario De La Ossa has joined EGM from Equiva and will manage our product options book. Doug Leach will be expanding his fuel management and origination role. He will report directly to John Nowlan. Finance and Structuring Andrew Makk has joined the finance team from the Middle East group. Most recently he has been working on the Gaza project. Jim Lewis has also joined this team. His last assignment was leading the structuring group for CALME. Both Andrew and Jim will report to Larry Lawyer. Corporate Development Mark Wadlington has joined the EGM team and will be managing this activity and co-ordinating with all Enron Corp. He reports to Tim Detmering with accountability to the office of the chairman of EGM. Operations and Accounting Todd Hall has expanded his role as Business Controller and will have responsibility for coal and weather. Mike Perun has joined Enron from the banking industry and is responsible for Controls & Standards. He will focus on EGM
,s operational and accounting processes on a global basis. He reports to Brent Price. The Ecoelectrica power plant in Puerto Rico will move reporting responsibility into the Enron Global Assets group. Greg Curran, who is responsible for all the activities in Puerto Rico, will report to that group on all Ecoelectrica business and to Enron Global Markets on the remaining businesses. Please join us in congratulating everyone in their new roles.

----- Forwarded by Steven J Kean/NA/Enron on 09/20/2000 09:05 AM ----- Ann M Schmidt 09/19/2000 08:32 AM To: Mark Palmer/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Meredith Philipp/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron cc: Subject: State's Power Grid Again Pushed to Brink of Rolling Blackouts Energy F.Y.I. Business; Financial Desk State's Power Grid Again Pushed to Brink of Rolling Blackouts Energy: High temperatures, generator shutdowns push usage within 5% of capacity. Heat wave is expected to continue today. NANCY RIVERA BROOKS 09/19/2000 Los Angeles Times Home Edition Page C-1 Copyright 2000 / The Times Mirror Company Sweltering weather across California pushed the state's heat-stressed electricity grid close to meltdown Monday, and state power officials urged electricity conservation because today and Wednesday could be even worse. Power was cut to hundreds of large business customers and about 125,000 residential and business air-conditioner and agricultural pumping customers Monday after the California Independent System Operator, which runs the electricity grid for about 75% of the state, declared a Stage 2 power emergency. At Stage 2, when the grid is using more than 95% of available power, the state's big investor-owned utilities are asked to interrupt power to customers that have agreed to this voluntary action in exchange for discounted rates. Grid reliability was threatened when two electricity units in Northern California stopped working for a time as heavy air-conditioner demand began to push power use higher, Cal-ISO spokeswoman Stephanie McCorkle said. Demand peaked at about 42,000 megawatts on the Cal-ISO grid, but the two unidentified units, representing about 320 megawatts of generation, were returned to service in the afternoon--in time to help keep the state from reaching its first Stage 3, which would lead to neighborhood blackouts. "We were right on the edge of warning about a possible Stage 3," McCorkle said. "A couple of generators fell offline in late morning, and that kind of gave everybody a scare." A Stage 3 emergency would be declared if power reserves fall below 1.5%--in essence, when the electricity grid is using more than 98.5% of available power--and rotating outages of nonessential customers for an hour or longer would become likely to keep the grid from failing. That would result in widespread blackouts lasting several hours. Electricity use was also high in the area served by the Los Angeles Department of Water and Power, peaking near 4,750 megawatts Monday. But DWP customers were not threatened by power interruptions or rolling blackouts because the municipal utility has more than enough generating capacity to meet demand. "We're doing OK as we have all summer long," said DWP General Manager S. David Freeman. Cal-ISO asked Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric to call on all of their interruptible-power customers to immediately stop using electricity, representing a potential 3,000 megawatts, or roughly the amount of electricity used by 3 million homes. Thousands of students at College of the Canyons in Valencia experienced the California equivalent of a snow day Monday when power outage alarms rang about 1:30 p.m, the seventh time this year, college spokesman Sue Bozman said. If the college doesn't pull the plug, it pays a big fine. "For several years, we saved $100,000 a year by being on this interruptible-service plan," said Bozman, who with other administrators finished the work day with mobile phones and portable computers. "But when the alarm rings and we decline to turn off our power, it's a whole different ballgame." One such day in May, during final exams, the college didn't cut power and penalties totaled $30,000, she said. During the height of Monday's power crisis, PG&E--whose territory suffered local blackouts on June 14 in a similar reliability emergency--kept an open telephone line to Cal-ISO for minute-by-minute updates, spokesman Ron Low said. SCE and the other utilities begged customers to use as little electricity as possible, and grocery stores around the state voluntarily reduced lighting and other power use to comply. "We're issuing a call to action, a call that everyone needs to take seriously," Pam Bass, SCE's senior vice president for customer service, said in a statement as electricity use soared Monday. "If the demand for power does not decrease soon, we will be directed by the state to begin shutting off power for blocks of customers. Everyone needs to cut their use of power now to avoid forced outages." Today and Wednesday could be even more challenging: Cal-ISO is predicting peak use of 44,827 megawatts for today. Peak demand was expected to be 44,537 megawatts on Monday, but conservation and power-interruption programs kept the total lower. "We are anticipating tomorrow to be a good deal like today," SCE spokeswoman Karen Shepard-Grimes said Monday. Electricity demand in SCE territory peaked at 17,860 megawatts before the Rosemead-based utility asked power customers to cut 2,500 megawatts of electricity. "It got really touchy today," she said. * Times staff writer Zanto Peabody contributed to this report. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

I don't know that NERC has "given up" on Enron. The timing of next week's meeting to "resolve" the legislation reflects the legislative realities that the committees of jurisdiction in Congress will take up the realibility legislation, along with other electricity issues, as early as the second week of September. In fact, congressional staff in the Senate and House are drafting legislative language on electricity issues during the August recess. They have pressed the "coalition" for a final work product. I gathered that at least some of what Jeff'spresentation to the NERC board would be about concerns matters beyond the legislation as such, but since they go to the NERC board's operation and independence, may go to our comfort level with NERC as the standards setting organization. Given the issues and concerns that have been addressed and communicated to NERC, and our preference for the PJM model (as Jeff told John Q. Anderson in the conference call), I think NERC got the information it wanted to get out of the call even though it didn't like the answers: i.e., whether Sarah and I have been faithfully representing Enron's position, whether Enron supports an "SRO" type organization; and whether there is anything they can do to get us on board. Perhaps we should have another conference call early next week so that Sarah and I have our guidance from everyone going into the August 9th meeting. For one thing, we need to determine if we are in any position to provide detailed comments on the "shortened NERC" version at the August 9th meeting or whether we do not wish to engage them on what specific changes it would take to get us on board. My sense is that since we have to deal with the players in the room on other issues, our overall position will be strengthened if we have some specific comments to make to explain our decision not to support NERC's version, even the shortened one. Don't get me wrong -- we have plenty of good reasons not to, I just wasn't sure how "engaged" we wanted to be in identifying changes that would bring us on board since I gather our opposition is more fundamental (no Western deference, budget concerns, independence issues, etc.). From: Charles Yeung/ENRON@enronXgate on 08/03/2001 11:57 AM To: John Shelk/NA/Enron@Enron, Richard Shapiro/ENRON@enronXgate, James D Steffes/ENRON@enronXgate cc: Linda Robertson/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON Subject: RE: Next NERC Reliability Meeting on Legislation -- August 9th John We are concerned how this meeting impacts what transpired between John Q Anderson and Jeff Skilling on the conference call on Thursday. David Cook was on the call as well and we do not understand the sudden urgency for NERC to reach closure. Has NERC given up on Enron? As we understand it, John Q Anderson agreed to give Jeff an opportunity to present present before the NERC Board some ke y issues for Enron before trying to finalize any NERC legislation proposal. Does this meeting next week preclude that presentation from occurring? Or will there be willingness to alter the language significantly enough to appease the Enron concerns next week? Charles Yeung -----Original Message----- From: Shelk, John Sent: Thursday, August 02, 2001 5:13 PM To: Shapiro, Richard; Steffes, James D.; Yeung, Charles Cc: Robertson, Linda; Novosel, Sarah Subject: Next NERC Reliability Meeting on Legislation -- August 9th See NERC memo below that was just received. They have scheduled what they hope will be the final meeting to "resolve" the reliability legislation next week -- August 9th. Of course, this is awfully presumptuous in that it assumes that the model to be worked off of is the NERC model (even the shortened one), and not the PJM model that others prefer to use. We need to decide whether we suggest any changes to the shortened NERC version, even those we know they would not take just to show a willingness to offer specific comments as we promised at the last meeting, or simply "agree to disagree." ---------------------- Forwarded by John Shelk/NA/Enron on 08/02/2001 05:09 PM --------------------------- "David Cook" <[email protected]>@nerc.com on 08/02/2001 05:06:14 PM Sent by: [email protected] To: <[email protected]> cc: Subject: revisions to reliability language Reliability legislation coalition I have attached a memo outlining the edits that NERC would make in the 7/19 discussion draft. My memo does not take account of the suggestions that have been circulated in the last day or so. I've also attached a marked-up version of the 7/19 draft indicating our changes. I propose that we meet in Washington on Thursday, August 9, at 10:00 a.m., with the goal of coming to closure on reliability legislation that is shorter and less detailed than the language in the pending bills, but that still preserves the essence of an industry self-regulatory organization. I am working on a location and expect to provide that information tomorrow. I know that scheduling this meeting may be difficult for some and that schedules are already full, but schedules will become even more difficult later in the month. I take as our deadline having new language for the Hill during the August recess. Thank you in advance for your continuing efforts to bring this new model for reliability into existence. David Cook General Counsel NERC office: 609-452-8060 cell: 609-915-3063 [email protected] <<Edits to 7-19 discussion draft.doc>> <<Discussion draft, 071901 (dnc comments).DOC>> - Edits to 7-19 discussion draft.doc << File: Edits to 7-19 discussion draft.doc >> - Discussion draft, 071901 (dnc comments).DOC << File: Discussion draft, 071901 (dnc comments).DOC >> <Embedded Picture (Device Independent Bitmap)>

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/19/2001 04:21 PM --------------------------- NW on Linux <[email protected]> on 04/16/2001 06:20:01 PM Please respond to Linux Help <[email protected]> To: [email protected] cc: Subject: Super-secret Linux NETWORK WORLD NEWSLETTER: PHIL HOCHMUTH on LINUX 04/16/01 - Today's focus: Super-secret Linux Dear Wincenty Kaminski, In this issue: * National Security Agency is bulletproofing the operating system * Links related to Linux * Featured reader resource * CAREER CORNER: Mission-critical opportunities with marketplace winners _______________________________________________________________ If a friend has forwarded this newsletter to you, why not sign-up for your own free copy? Visit http://www.nwwsubscribe.com/FOC162 for your own free subscription. _______________________________________________________________ Today's focus: Super-secret Linux By Phil Hochmuth Network Associates is teaming up with the National Security Agency, the government's top electronic cryptography and spying institution, to help the agency fine-tune its highly secure version of Linux. The goal is to create a version of Linux that is impervious to outside attacks. Security Enhanced Linux, or SELinux, is a project under development by the NSA to create a version of the operating system that is more secure than the commercial distributions of Linux available from software vendors and the open-source community. The PGP Security division of Network Associates is working with the NSA to modify the Linux source code so that applications running on a Linux server or PC have reduced access to a Linux machine's underlying operating system. The aim is to give Linux servers the ability to shirk off "buffer overrun" and "format string" attacks, which take advantage of loose ends in Linux applications to access a server's core operating system and shut it down. A Linux worm dubbed "Lion" was recently identified as using this method to hack Linux servers. NSA has worked with other software firms to shore up other weaknesses in the operating system. Secure Computing has worked on the SELinux project to add its Type Enforcement technology to SELinux. Type Enforcement protects the operating system and applications by segmenting them into security "domains" with specifications on what types of files can be accessed by each domain. (For example, this could be used to prevent access to a configuration file through an application, such as Apache Web server). NSA is also working with VMWare to come up with a more secure user permissions system for allowing users with different security access to work on the same server. The good news for Linux users who are not high-level NSA operatives is that SELinux will be released to the open-source community once finished. This means that commercial Linux vendors could include SELinux security enhancements in future releases, resulting in more bulletproof Linux Web and database servers in enterprises. _______________________________________________________________ To contact Phil Hochmuth: Phil Hochmuth is a staff writer for Network World, and a former systems integrator. 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Colleagues: I am still hopeful that I shall get your inputs. Time is becoming a very precious commodity indeed. Please let me know if I can be of any help. Brgrds AI PS: I hope that you found the email sent to you dated May 29 on methodology useful. ----- Forwarded by Amr Ibrahim/ENRON_DEVELOPMENT on 06/06/2001 07:19 AM ----- Amr Ibrahim 05/25/2001 02:01 PM To: Paul Hennemeyer/LON/ECT@ECT, Peter Styles/LON/ECT@ECT, Bruno Gaillard/EU/Enron@Enron, Teun Van Biert/LON/ECT@ECT, Nailia Dindarova/LON/ECT@ECT, Antoine Duvauchelle/EU/Enron@Enron, Jan Haizmann/LON/ECT@ECT, Xi Xi/Enron Communications@Enron Communications, Philip Davies/LON/ECT@ECT, Viviana Florio/Enron@EUEnronXgate, Amber Keenan/LON/ECT@ECT, Doug Wood/LON/ECT@ECT, Paul Dawson/Govt. Affairs/LON/ECT@ECT, Brendan Devlin/EU/Enron@Enron, Justyna Ozegalska/WAR/ECT@ECT, Merle Glen/LON/ECT@ECT, Nick Elms/EU/Enron@Enron, Alfredo Huertas/LON/ECT@ECT, Alisha Nathoo/EU/Enron@Enron, Kerryann Irwin/LON/ECT@ECT cc: Subject: GA accomplishments for the period November 2000 - April 2001 - Europe - Three Colleagues: The firs two lines of the previous message should read: The first draft of the accomplishments for GA--including the section for Europe-- has been discussed with Rick and Jim this morning. Entries for your group came only from JHaizmann, and PDawson. Thank you AI ----- Forwarded by Amr Ibrahim/ENRON_DEVELOPMENT on 05/25/2001 01:59 PM ----- Amr Ibrahim 05/25/2001 01:52 PM To: Paul Hennemeyer/LON/ECT@ECT, Peter Styles/LON/ECT@ECT, Bruno Gaillard/EU/Enron@Enron, Teun Van Biert/LON/ECT@ECT, Nailia Dindarova/LON/ECT@ECT, Antoine Duvauchelle/EU/Enron@Enron, Jan Haizmann/LON/ECT@ECT, Xi Xi/Enron Communications@Enron Communications, Philip Davies/LON/ECT@ECT, Viviana Florio/Enron@EUEnronXgate, Amber Keenan/LON/ECT@ECT, Doug Wood/LON/ECT@ECT, Paul Dawson/Govt. Affairs/LON/ECT@ECT, Brendan Devlin/EU/Enron@Enron, Justyna Ozegalska/WAR/ECT@ECT, Merle Glen/LON/ECT@ECT, Nick Elms/EU/Enron@Enron, Alfredo Huertas/LON/ECT@ECT, Alisha Nathoo/EU/Enron@Enron, Kerryann Irwin/LON/ECT@ECT cc: Subject: GA accomplishments for the period November 2000 - April 2001 - Europe - Two Colleagues: The first draft of the accomplishments for GA--including the section for the Southern Cone-- has been discussed with Rick and Jim this morning. Entries for your group came only from JHaizmann, and PDawson. The second draft is planned for Friday June 1st, and the final for June 8th. The week difference between 1st, and 8th will be spent entirely on addressing the appropriate methodologies to arrive at the dollar value for your work/accomplishment. I promise that you--each for her/his accomplishments --shall be personally involved in determining the appropriate methodology so that to reflect your work in the most accurate manner. Accordingly, I would appreciate very much that all your accomplishments should reach me as soon as possible so that to allocate as much time for methodology and communication with you. A report is currently being prepared of the compiled methodologies submitted so far and I shall send it you with the hope that it will be of help. I also want to communicate that the process of sending your accomplishments is not really voluntary; it is PRC related. Therefore, I am really seeking your help and support to complete this task. Perhaps the head of the Teams would like to ensure with the colleagues that all accomplishments are accounted for. Of course, please let me know if you have any question or I can be of any help. Brgrds AI From: Amr Ibrahim@ENRON_DEVELOPMENT on 05/09/2001 03:04 PM To: Paul Hennemeyer/LON/ECT@ECT, Peter Styles/LON/ECT@ECT, Bruno Gaillard/EU/Enron@Enron, Teun Van Biert/LON/ECT@ECT, Nailia Dindarova/LON/ECT@ECT, Antoine Duvauchelle/EU/Enron@Enron, Jan Haizmann/LON/ECT@ECT, Xi Xi/Enron Communications@Enron Communications, Philip Davies/LON/ECT@ECT, Viviana Florio/Enron@EUEnronXgate, Amber Keenan/LON/ECT@ECT, Doug Wood/LON/ECT@ECT, Paul Dawson/Govt. Affairs/LON/ECT@ECT, Brendan Devlin/EU/Enron@Enron, Justyna Ozegalska/WAR/ECT@ECT, Merle Glen/LON/ECT@ECT, Nick Elms/EU/Enron@Enron, Alfredo Huertas/LON/ECT@ECT, Alisha Nathoo/EU/Enron@Enron, Kerryann Irwin/LON/ECT@ECT cc: Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron Subject: GA accomplishments for the period November 2000 - April 2001 Colleagues: I am seeking your help to compile the accomplishments for GA during the period Nov 2000 - April 2001. Of course, these accomplishments are the summation of your efforts either individually or through your group, and the total shall indicate the contribution of GA to the corporate objectives of Enron. The aggregation of your inputs shall be one of the primary sources that Rick and Steve will use in communicating GA impact to all stakeholders in the company. I would like to suggest to use the attached excel file to document your accomplishment for the period. I hope that it shall assist you to identify your contribution, your estimate of value, and a line, or two, explaining the methodology you used to arrive at your value. I hope to receive your inputs by May 16th (next Wednesday), so that I can compile the inputs and issue the first draft for discussion by Monday 21st. Of course, please let me know if you have any question. Brgrds AI 713-853-3037 PS: Kindly assist me in forwarding this message to Andreas Wagner (EWC - Germany). Thanks

------------------------------------------------------------------------------ ------------------------ 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 23, 2001 5:00pm through March 26, 2001 12:00am ------------------------------------------------------------------------------ ------------------------ SCHEDULED SYSTEM OUTAGES: 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: CORP Time: Fri 3/23/2001 at 5:00:00 PM CT thru Fri 3/23/2001 at 5:15:00 PM CT Fri 3/23/2001 at 3:00:00 PM PT thru Fri 3/23/2001 at 3:15:00 PM PT Fri 3/23/2001 at 11:00:00 PM London thru Fri 3/23/2001 at 11:15:00 PM London Outage: Decommission CORPHOU-02B Environments Impacted: Corp Logins Purpose: The SAM size on this DC has increased beyond recommended limits. There is no real reason for us to keep this DC online anymore. Backout: Bring back online Contact(s): Keith Meurer 713-853-1743 Impact: ENS Time: Sun 3/25/2001 at 3:00:00 PM CT thru Sun 3/25/2001 at 5:00:00 PM CT Sun 3/25/2001 at 1:00:00 PM PT thru Sun 3/25/2001 at 3:00:00 PM PT Sun 3/25/2001 at 9:00:00 PM London thru Sun 3/25/2001 at 11:00:00 PM London Outage: Change VLANS for the EES networks at Ardmore Environments Impacted: EES Purpose: Part of the re-design, due to problems with the OC3's Backout: change vlans back to the old numbers Contact(s): Scott Shishido 713-853-3780 Impact: ENS Time: Fri 3/23/2001 at 11:00:00 PM CT thru Sat 3/24/2001 at 12:00:00 AM CT Fri 3/23/2001 at 9:00:00 PM PT thru Fri 3/23/2001 at 10:00:00 PM PT Sat 3/24/2001 at 5:00:00 AM London thru Sat 3/24/2001 at 6:00:00 AM London Outage: Add redundancy to the ETS server network Environments Impacted: ETS Purpose: Currently the ETS server network 172.30.10.0 has no redundant links the the routers. If one switch goes down the entire network goes down. Backout: none Contact(s): Scott Shishido 713-853-3780 FIELD SERVICES: No Scheduled Outages. INTERNET: Impact: CORP Time: Sat 3/24/2001 at 11:00:00 PM CT thru Sun 3/25/2001 at 12:00:00 AM CT Sat 3/24/2001 at 9:00:00 PM PT thru Sat 3/24/2001 at 10:00:00 PM PT Sun 3/25/2001 at 5:00:00 AM London thru Sun 3/25/2001 at 6:00:00 AM London Outage: Replace ENRON.COM edge routers Environments Impacted: Internet Purpose: Replace hardware with faster processing units. IOS Software upgrade to remove potential security vulnerability. Backout: Put existing hardware back in production. Contact(s): John Shupak 713-853-7943 Bryan Aubuchon 713-345-8446 MESSAGING: No Scheduled Outages. MARKET DATA: Impact: Market Data Time: Fri 3/23/2001 at 6:00:00 PM CT thru Fri 3/23/2001 at 9:45:00 PM CT Fri 3/23/2001 at 4:00:00 PM PT thru Fri 3/23/2001 at 7:45:00 PM PT Sat 3/24/2001 at 12:00:00 AM London thru Sat 3/24/2001 at 3:45:00 AM London Outage: CQG_DDA Upgrade Environments Impacted: CQG Digital users Purpose: Enable migration off of Legacy satellite systems. Backout: N/A Contact(s): John Sieckman 713-345-7862 NT: No Scheduled Outages. OS/2: No Scheduled Outages. OTHER SYSTEMS: Impact: CORP Time: Fri 3/23/2001 at 5:00:00 PM CT thru Fri 3/23/2001 at 6:00:00 PM CT Fri 3/23/2001 at 3:00:00 PM PT thru Fri 3/23/2001 at 4:00:00 PM PT Fri 3/23/2001 at 11:00:00 PM London thru Sat 3/24/2001 at 12:00:00 AM Outage: Cleanup CDPD (Air Card) Configuration Environments Impacted: Corp. Purpose: Running out of available addresses for air cards. Clean up configuration on CDPD router/ Change the method used to translate the aircards IP addresses. See Change Request # JW918 for IP addresses. Backout: apply old config Contact(s): Jon Werner 713-853-6742 Impact: CORP Time: Fri 3/23/2001 at 5:00:00 PM CT thru Fri 3/23/2001 at 6:00:00 PM CT Fri 3/23/2001 at 3:00:00 PM PT thru Fri 3/23/2001 at 4:00:00 PM PT Fri 3/23/2001 at 11:00:00 PM London thru Sat 3/24/2001 at 12:00:00 AM London Outage: SysAdmiral Master Server Move Environments Impacted: Corp Purpose: This server move is to replace the failed server that occurred last weekend. The current location for the master machine online is in 3448. Since it is on a development segment it has to be moved back into the production area. We will need only one hour to move the machine since it it is replacing a 1600 with a 1600. Rails and racking can be reused without rewiring anything. Backout: Rerack in current location. Contact(s): Rusty Cheves 713-345-3798 Impact: CORP Time: Fri 3/23/2001 at 5:00:00 PM CT thru Sat 3/24/2001 at 12:00:00 PM CT Fri 3/23/2001 at 3:00:00 PM PT thru Sat 3/24/2001 at 10:00:00 AM PT Fri 3/23/2001 at 11:00:00 PM London thru Sat 3/24/2001 at 6:00:00 PM London Outage: OS and Disk upgrade, patch maintenance and migration to T-3 for server titania. Environments Impacted: Oracle development Purpose: Need for additional storage and improved performance. Backout: shutdown the system reconnect the old disks restore the old OS from tape Contact(s): Malcolm Wells 713-345-3716 SITARA: No Scheduled Outages. SUN/OSS SYSTEM: No Scheduled Outages. TELEPHONY: No Scheduled Outages TERMINAL SERVER: No Scheduled Outages. UNIFY: No Scheduled Outages. ------------------------------------------------------------------------------ ------------------------------------------------------- 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)853-9797 OR (888)853-9797

---------------------- Forwarded by Hector Campos/HOU/ECT on 11/15/2000 09:41 AM --------------------------- Emilio Ayanz <[email protected]> on 11/15/2000 06:42:15 AM To: "'Hala'" <[email protected]>, "'Tom'" <[email protected]>, "'Adam'" <[email protected]>, "'Hector'" <[email protected]>, "'Montgomery Jarrett'" <[email protected]> cc: Subject: FW: REVOCATION OF INDEPENDENCE -----Original Message----- From: Henry Spratt Sent: 15 November 2000 12:38 To: Emilio Ayanz; Paul Morgan; Claudio Lohmann Subject: FW: REVOCATION OF INDEPENDENCE -----Original Message----- From: Parker, Chris [mailto:[email protected]] <mailto:[mailto:[email protected]]> Sent: 15 November 2000 12:37 To: 'Chris Wright'; 'Graeme Summers'; 'Henry Spratt'; 'Joe Wicks'; 'Lee Bostock'; 'Matt Osborne'; 'Mike Morrison'; 'Mikey'; 'Shergar'; 'Tom Brand'; 'Stuart Mills' Subject: FW: REVOCATION OF INDEPENDENCE FOR THOSE OF YOU WORKING FOR US COMPANIES!! > -----NOTICE OF REVOCATION OF INDEPENDENCE > To the citizens of the United States of America, > In the light of your failure to elect a President of the USA and thus > to govern yourselves, we hereby give notice of the revocation of your > independence, effective today. > > Her Sovereign Majesty Queen Elizabeth II will resume monarchial duties > over all states, commonwealths and other territories. Except Utah, > which she does not fancy. Your new prime minister (The rt. hon. Tony > Blair, MP for the 97.85% of you who have until now been unaware that > there is a world outside your borders) will appoint a minister for > America without the need for further elections. Congress and the > Senate will be disbanded. A questionnaire will be circulated next year > to determine whether any of you noticed. > > To aid in the transition to a British Crown Dependency, the following > rules are introduced with immediate effect: > > 1. You should look up "revocation" in the Oxford English Dictionary. > Then look up "aluminium". Check the pronunciation guide. You will be > amazed at just how wrongly you have been pronouncing it. Generally, > you should raise your vocabulary to acceptable levels. Look up > "vocabulary". Using the same twenty seven words interspersed with > filler noises such as "like" and "you know" is an unacceptable and > inefficient form of communication. Look up "interspersed". > > 2. There is no such thing as "US English". We will let Microsoft know > on your behalf. > > 3. You should learn to distinguish the English and Australian accents. It > really isn't that hard. > > 4. Hollywood will be required occasionally to cast English actors as > the good guys. > > 5. You should relearn your original national anthem, "God Save The > Queen", but only after fully carrying out task 1. We would not want you > to get confused and give up half way through. > > 6. You should stop playing American "football". There is only > one kind of football. What you refer to as American "football" is not > a very good game. The 2.15% of you who are aware that there is a world > outside your borders may have noticed that no one else plays "American" > football. You will no longer be allowed to play it, and should instead > play proper football. Initially, it would be best if you played with > the girls. It is a difficult game. Those of you brave enough will, in > time, be allowed to play rugby (which is similar to American > "football", but does not involve stopping for a rest every twenty > seconds or wearing full kevlar body armour like nancies). We are > hoping to get together at least a US rugby sevens side by 2005. > > 7. You should declare war on Quebec and France, using nuclear > weapons if they give you any merde. The 98.85% of you who were not > aware that there is a world outside your borders should count yourselves > lucky. The Russians have never been the bad guys. "Merde" is French for > "shit". > > 8. July 4th is no longer a public holiday. November 8th will be a > new national holiday, but only in England. It will be called "Indecisive > Day". > > 9. All American cars are hereby banned. They are crap and it is for > your own good. When we show you German cars, you will understand what we > mean. > > 10. Please tell us who killed JFK. It's been driving us crazy. > > Thank you for your cooperation. > > > > PLEASE READ: The information contained in this e-mail is confidential and intended for the named recipient(s) only. If you are not an intended recipient of this email you must not copy, distribute or take any further action in reliance on it and you should delete it and notify the sender immediately. Email is not a secure method of communication and Nomura International plc cannot accept responsibility for the accuracy or completeness of this message or any attachment(s). Please check this e-mail for virus infection, for which Nomura International plc accepts no responsibility. If verification of this email is sought then please request a hard copy. Unless otherwise stated any views or opinions presented are solely those of the author and do not represent those of Nomura International plc. This email is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial instruments. Nomura International plc is regulated by the Securities and Futures Authority Limited and is a member of the London Stock Exchange.

FYI Vince ---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 06/16/2000 08:36 AM --------------------------- "Philip Merrill" <[email protected]> on 06/16/2000 08:17:03 AM Please respond to <[email protected]> To: "Abe. Riazati" <[email protected]>, "Alexander Vaninsky" <[email protected]>, "Andrew Katz" <[email protected]>, "Andrew Maxwell" <[email protected]>, "Andrew Osterland" <[email protected]>, "Andrew Porter" <[email protected]>, "Andy Anderson" <[email protected]>, "Anthony. Capozzoli" <[email protected]>, "Baxter Gillette" <[email protected]>, "Benton Brown" <[email protected]>, "Bernard_Lee" <[email protected]>, "Beth S. Daniel" <[email protected]>, "Bill" <[email protected]>, "Bill Lacy" <[email protected]>, "Bob Anthes" <[email protected]>, "Borris Ashavsky" <[email protected]>, "Bryan Feierstein" <[email protected]>, "Carolyn_Loverro" <[email protected]>, "CFA Maruti D. More" <[email protected]>, "Cheri Kalman" <[email protected]>, "Chris Lewis" <[email protected]>, "Christine Y. Zhao" <[email protected]>, "Cort Shurtleff" <[email protected]>, "David Hall" <[email protected]>, "David Routt" <[email protected]>, "David Rusate" <[email protected]>, "David Shimko" <[email protected]>, "David Stringfellow" <[email protected]>, "Dean Kloner" <[email protected]>, "Diana P. Diaz" <[email protected]>, "Dilip S. Kumar" <[email protected]>, "Don Muma" <[email protected]>, "Don Stowers" <[email protected]>, "Donna Jones" <[email protected]>, "Doug Hoffman" <[email protected]>, "Doug Pittera" <[email protected]>, "Doyle_Robin" <[email protected]>, "Dwight Cass" <[email protected]>, "Erik Helland" <[email protected]>, "Frank McEwan" <[email protected]>, "Giancarlo Ranzini" <[email protected]>, "Gordon Goodman" <[email protected]>, "Gregory Marposon" <[email protected]>, "H Brett Humphreys" <[email protected]>, "Igor Bidny" <[email protected]>, "Ihalasz" <[email protected]>, "Ira Kawaller" <[email protected]>, "J. Hinke (Jack)" <[email protected]>, "James Johnson" <[email protected]>, "James P. Crimmins" <[email protected]>, "Janie. J. Chen" <[email protected]>, "Janis_Elfving" <[email protected]>, "Jason Taitt" <[email protected]>, "Jeffery Wallace" <[email protected]>, "Jitendra D Sharma" <[email protected]>, "Jjohnston" <[email protected]>, "JOEL S. STIEBEL" <[email protected]>, "John Brabury CPA" <[email protected]>, "John J. Janney" <[email protected]>, "John Krueger" <[email protected]>, "John. Digenan" <[email protected]>, "Jon Freund" <[email protected]>, "Josh Kirschner" <[email protected]>, "Josie Palazzolo" <[email protected]>, "Kelly Ardrey" <[email protected]>, "Kelly Audrey" <[email protected]>, "Ken Moll" <[email protected]>, "Kenneth King" <[email protected]>, "Larry Darby" <[email protected]>, "Larry Schwarz" <[email protected]>, "Laurence Hitchens" <[email protected]>, "leslie Abreo" <[email protected]>, "Lisa Williams" <[email protected]>, "Marc F Wittmer" <[email protected]>, "Marco Ossanna" <[email protected]>, "Maria Nordone" <[email protected]>, "Mark Abbott" <[email protected]>, "Martin Kelly" <[email protected]>, "Martin. A. Makulski" <[email protected]>, "Michael Driscoll" <[email protected]>, "Mike Parlapiano" <[email protected]>, "Mike Smith" <[email protected]>, "Mike. Kotzan" <[email protected]>, "Moy_Chan" <[email protected]>, "Nancy Merola" <[email protected]>, "Paige Grumulaitis" <[email protected]>, "Pamela Jasper" <[email protected]>, "Paul Vedova" <[email protected]>, "Peter Casanas" <[email protected]>, "Peter Connors" <[email protected]>, "Ph. D. Joshua Musher" <[email protected]>, "Rajesh Mirpuri" <[email protected]>, "Randy D Wilson" <[email protected]>, "Randy Katzenstein" <[email protected]>, "Richard McMahon" <[email protected]>, "Rick Rexon" <[email protected]>, "Rita Previtali" <[email protected]>, "Robert A Krizner" <[email protected]>, "Robert Cataldo" <[email protected]>, "Robert Lally" <[email protected]>, "Robert M Traficanti" <[email protected]>, "Robert McDonough" <[email protected]>, "Robert McLaughlin" <[email protected]>, "Robert P Sullivan" <[email protected]>, "Roger Beckwith" <[email protected]>, "Roger Pearson" <[email protected]>, "Ron Baker" <[email protected]>, "Ron Frisk" <[email protected]>, "Rudy Henkel" <[email protected]>, "Sajjad Rizvi" <[email protected]>, "Santa Marletta" <[email protected]>, "Stephen T. Haynes" <[email protected]>, "Steven Berley" <[email protected]>, "Steven Carlson" <[email protected]>, "Steven. J. Lerit" <[email protected]>, "Sudha Yerneni" <[email protected]>, "Susan Mangiero" <[email protected]>, "Tess Chi" <[email protected]>, "Thomas Schimelpfenig" <[email protected]>, "Thomas_Traub" <[email protected]>, "Tim. MacDonald" <[email protected]>, "Todd A Johnson" <[email protected]>, "Tony Blinfanti" <[email protected]>, "Vice-President Mark Williams" <[email protected]>, "Vince Kaminski" <[email protected]>, "Vipul Kadakia" <[email protected]>, "Wayne Caviness" <[email protected]>, "Wilfred Romero" <[email protected]>, "Young Lee" <[email protected]> cc: Subject: FAS 133 Amendments Available For Download The standard is now available on the FASB's website until 6/30. Go to HTTP://fasb.org click first Financial Accounting Standards Board click first item FAS 138 on FASB home page.

-----Original Message----- From: "Engelhardt, Matthew" <[email protected]>@ENRON Sent: Friday, January 25, 2002 2:54 PM To: Dorland, Chris; Dorland, Dan; 'Kbibby (E-mail); Max Zureski (CA - Calgary) (E-mail); Mike George (E-mail); Nate Dogg (E-mail); Colin Clements (CA - Calgary) (E-mail) Subject: FW: The Rules of Manhood -----Original Message----- From: Yee, Colin Sent: Friday, January 25, 2002 9:01 AM To: Alder, Doug; Bain, Stacy; Engelhardt, Matthew; Maxwell, Tara; Simpson, Regan; Steinke, Nathan; Tymofichuk, Christin Subject: FW: The Rules of Manhood -----Original Message----- From: Colin Yee [mailto:[email protected]] Sent: Thursday, January 24, 2002 10:26 PM To: [email protected]; [email protected]; Wes Giebelhaus Subject: Fw: The Rules of Manhood > The Rules of Manhood > >>> > >>> * Thou shall not rent the movie Chocolat. > > > >>> * In Black Jack, always split aces and eights. No arguments. > > > >>> * Under no circumstances may two men share an umbrella... > > > >>> * Any man who brings a camera to a bachelor party may be legally > killed > >>> and eaten by his fellow partygoers. > > > >>> * When you are queried by a buddy's wife, girlfriend, mother, > father, priest, shrink, dentist, accountant or dog walker, you need not and > should not provide any useful information whatsoever as to his whereabouts. > You are permitted to deny his very existence. > > * Unless he murdered someone in your immediate family, you must bail a > friend out of jail within 12 hours. > > * You may exaggerate any anecdote told in a bar by 50 percent without > recrimination; beyond that, anyone within earshot is allowed to > call,"Bullshit!". (Exception: When tryi > ng to pick up a girl, the allowable > exaggeration rate rises to 400 percent.) > > * If you've known a guy for more than 24 hours, his sister is off limits > forever. > > * The maximum amount of time you have to wait for another guy who's >>> > running late is 5 minutes. For a girl, you are required to wait 10 >minutes > for >>> every point of hotness she scores on the classic 1-10 scale. > > * Bitching about the brand of free beer in a buddies refrigerator is > >>> forbidden. You may gripe if the temperature is unsuitable. > > > * No man is ever required to buy a birthday present for another man. In > >>> fact, even remembering a friends birthday is strictly optional. > > * Agreeing to distract the ugly friend of a hot babe your buddy is > >>trying to hook up with is your legal duty. Should you get carried away > >with your >>> good deed and end up having sex with the beast, your pal > is forbidden to >>speak of > it, even at your bachelor party. > > * Before dating a buddy's ex, you are required to ask his permission > >and he, in return, is required to grant it. > > > * Women who claim they "love to watch sports" must be treated as spies >>> > until they demonstrate knowledge of the game and the ability to pick a > >Buffalo wing clean. > > * If a man's zipper is down, that's his problem- you didn't see > >nothin'. > > * The universal compensation for buddies who help you move is beer. > > * A man must never own a cat or like his girlfriend's cat. > > * Your girlfriend must bond with your buddy's girlfriends within 30 > >>> minutes of meeting them. You, however, are not required to make nice > >with her >>> girlfriend's significant dick-heads --- low-level sports > bonding is all >>> the law requires. > > * When stumbling upon other guys watching a sports event, you may > >always ask the score of the game in progress, but you may never ask w > ho's > >playing. > > > >>> * When your girlfriend/wife expresses a desire to fix her whiney > friend >>up with your pal, you may give her the go-ahead only if you'll be > able to >>> warn your buddy and give him time to prepare excuses about > joining the >>> priesthood. > > > >>> * It is permissible to consume a fruity chick drink only when you're > >>> sunning on a tropical beach... and it's delivered by a topless super > >model...and it's free. > > > >>> * A man in the company of a hot, suggestively dressed woman must > remain >>> sober enough to fight. > > > >>> * If a buddy is out numbered, out manned, or too drunk to fight, you > >>must jump into the fight. Exception: If within the last 24 hours his > actions >>> have caused you to think, "What this guy needs is a good > ass-whooping", >then >>> you may sit back and enjoy. > > > >>> > * Friends don't let friends wear Speedos. Ever. Issue closed. > > > >>> * Never hesitate to reach for the last beer or the last slice of > pizza, >>> but not both. That's just plain mean. > > > >>> * If you compliment a guy on his six-pack, you better be referring to > >>his beer. > > > >>> * Never join your girlfriend/wife in dissing a buddy, except when > she's >>> withholding sex pending your response. > > > >>> * Never talk to a man in the bathroom unless you're on equal footing; > >>> either both urinating or both waiting in line. In all other > situations, >a nod >>is all the conversation you need. > > > >>> * If a buddy is already singing along to a song in the car, you may > not >>> join him.... > > > >>> * If fast dancing is absolutely necessary, a man may NEVER raise his > >>hands above shoulder level .... > > > >> > ;> * Before allowing drunken friend to cheat on his girl, you must > attempt >>> one intervention. If he is able to get on his feet, look you > in the eye, >and deliver a, "F--- OFF!", you are absolved of all > responsibility. > > * The morning after you and a babe who was formerly "just a friend" >have > carnal, drunken monkey sex, the fact that you're feeling weird and > >>guilty is no reason not to nail her again before the discussion about > >what a big >>> mistake it was. > > >

BUSINESS HIGHLIGHTS East Power Midwest Origination Beginning late 2000, East Power Marketing implemented a complete market coverage strategy. Since then, EPMI has begun to develop relationships with hundreds of small
&mom & pop
8 municipalities. Many of these munis had no prior contact with Enron. As a result, East Power has executed a valuable 30 MW energy call option term purchase from the Municipal Energy Agency of Nebraska (MEAN) at a congested location. Enron Industrial Markets EIM has renamed Pulp, Paper & Lumber to Forest Products in order to fully encompass our multiple product offerings. East Power Development The Planning and Zoning Commission for Pompano Beach, FL approved ENA's rezoning request and site plan for the Pompano Beach Energy Center, a 510 megawatt peaking power plant. On the rezoning request, the vote was 6 to 1, and on the site plan, the vote was 7 to 0. The rezoning request will be forwarded to the Pompano Beach City Commission for their review. Additionally, the Florida Department of Environmental Protection (DEP) has announced its intention to issue an air permit for the facility. Next steps include a DEP public hearing on Monday, March 26, and the first of two votes on the rezoning request before the Pompano Beach City Commission, which is scheduled for Tuesday, March 27. IN THE NEWS EWS Brown Bag Lunch Mark Your Lunch Calendars Now! The next one is scheduled for Thursday, March 15, 2001 featuring Ray Bowen. He is the COO of EIM and will be discussing Enron Industrial Markets. Open Forum Editorial in The San Francisco Chronicle by Kenneth Lay 3/1/01 What has happened in California over the past four years is not deregulation. It is misguided regulation. Deregulation does not mean eliminating customer choice and competition for most customers. Deregulation does not mean limiting new market entrants. Fewer than five percent of customers in California are served by competing suppliers. Deregulation does not mean creating a single central power pool from which all participants must buy and sell their wholesale power; the state Power Exchange effectively replaced three monopoly buyers with one monopoly buyer. Deregulation does not mean buying all of your commodity at the last minute, on the spot market, rather than planning ahead and purchasing most of the power under long-term contracts that lock in prices. The situation in California is the result of continued regulation, complicated by a series of natural and man-made factors. WELCOME New Hires EGM - Lowell Bezanis, Owen Zidar EIM - Eric Holzer, John Ovanessian ENA - Mecole Brown, Nita Garcia, Ambroshia Hunter, Nikole Jackson, Junichi Sugiura, Theresa Zucha, Cynthia Gonzalez, Scott Wilson, Kenton Schaefer, Emily Butler Transfers ENA - Joseph Hardy, Nancy Vu, Lloyd Miller, Jinsung Myung, Patrick Johnson, Jason Wolfe, Andrew Miles, Sara Shackleton EIM - Sherri Baldwin, Debbie Chance, Rob Saltiel EGM - Jody Crook, Neithard Foley, Juan Paysse, Bhavna Pandya, Courtney Campbell, Terri Denning NUGGETS & NOTES "It is on the high side of medium to high." --Tim Battaglia, Vice President/Steel Origination EIM (discussing the probability of a transaction closing).
&I wanna see the phone glued to your ear!
8 -- Ed Baughman, Vice President/East Power Mid Market ENA
&REFERRALS, REFERRALS, REFERRALS! It pays to know good people."
) Ambroshia Hunter Perry/HR ENA You requested more info
(. Proud parents Michelle Vitrella, PR coordinator, and husband David Vitrella, manager of trading, have named their baby girl Lily Ann. She was born on February 27, 2001. Learning at the Speed of Enron If you haven't had a chance to log on to www.investinme.enron.com, you're missing a fast and easy way to gain the information you need to get ahead and stay ahead. This new EWS training site combines everything you loved about Ernie with much, much more. Enron employees now have the ability to register for hundreds of classes on industry-related topics anywhere in the world. Don't have time to attend a classroom training? No problem, you can now use the web site to search for books, videos, CD ROM, and web-based training. All the learning you want, anytime, anywhere. Just go to www.investinme.enron.com and start building your future today! NEWS FROM THE GLOBAL FLASH Enron Wind Enron Wind has purchased the factory facilities of the Dutch company, Aerpac, Europe's second largest producer of wind turbine rotor blades. This move represents a significant step towards fulfilling Enron Wind's strategic objective of manufacturing high-quality and technically sophisticated rotor blades in-house. Enron Wind will be using its own moulds to produce the rotor blades. The acquisition of the Almelo-based factory facilities, which are only 60 kilometres from Enron Wind's facilities in Salzbergen, Germany, gives the company a convenient base for European wide distribution. Enron applies for Greek electricity trading license Enron, through its subsidiary Enron Power MEPE, has applied for an electricity supply license for Greece, for the 34% market opening on Feb 19th 2001. If the license application is successful, Enron will be allowed to approach customers consuming more than 100GWh up to a combined total peak capacity of 350MW. In total, 4 companies have applied for power trading licenses (Enel, ATEL and Cinergy also applied). LEGAL STUFF The information contained in this newsletter is confidential and proprietary to Enron Corp. and its subsidiaries. It is intended for internal use only and should not be disclosed.

Brian, I didn't get the revised draft. Kay From: Brian D Barto@ENRON_DEVELOPMENT on 02/07/2001 04:43 PM To: Kay Mann/Corp/Enron@Enron cc: Subject: BlueDog Change Order #2, Rev 6 Kay: I have edited the draft you sent me and placed GE's comments in a different color so you can see their comments next to yours. Risk Management (Paul Parrish) is OK with the 100% coverage. The original deal was that they would be off the hook for cosmetic damage incurred by GE's storage, so to put them back on the hook was a bit of a retrade. Otherwise I think their comments (other than the approval of the assignment comment) are in order. Is this draft acceptable to you? BB ----- Forwarded by Brian D Barto/ENRON_DEVELOPMENT on 02/07/2001 04:37 PM ----- [email protected] 02/07/2001 02:20 PM To: [email protected] cc: [email protected] Subject: BlueDog Change Order #2, Rev 5 Brian, The following are our comments to the subject change order. If you like, we can set up a time to discuss these comments. As I mentioned on the phone, many of the comments directed at Part 1, Item 1 are due to the fact I do not have a signed copy of Consent to Assignment. I am searching for a copy at this end, but if you have ready access, a copy would be appreciated. Part I 1. The base contract defines the party GE is contracting with as the "Purchaser". LJM2is the Purchaser under the base contract. I understand assignment of the contract by LJM2 to E-Next is under consideration and was supposed to have occurred in December. I do not have a copy of the Consent signed by GE or any other signed documents indicating that the assignment has taken place. Assuming the assignment has taken place, according to the unsigned documentation I have, Enron North America Corp. should be replaced as the contracting party in paragraph 1 by E-Next Generation LLC as the party that is contracting with GE and is the Purchaser. As I understand the draft Consent agreement, Enron North America is supposed to be the Agent for E-Next and is not the Purchaser. This is consistent with the cover page of the draft CO No. 2. Revision 5 to the Change Order does not quite succeed in making the correction. It should say "... between General Electric Company ("Seller") and E-Next Generation LLC ("Purchaser") dated May 31, 2000 (the "Agreement"), Purchaser, acting through its Agent, Enron North America Corp., hereby amends ...". However, CO No. 2 with this correction to paragraph 1 should not be signed by GE until GE has agreed to the assignment to E-Next. Otherwise, the signed CO. No. 2 could, by itself, be construed as consent by GE to the assignment. 2.1 Delete the added language that begins with the words "on or prior to the Guaranteed Unit Shipment Date(s)...". Because Unit No. 1 is going to storage and the customer controls when it is released from storage and when it gets to the jobsite, the risk of late delivery originally assigned by the contract to GE has shifted to the customer. This is recognized in section 5.5.2 of the contract which states that if GE is directed to ship to storage, for the purpose of assessing LDs and final payment, GE's delivery obligation is deemed fulfilled. The original guaranteed delivery dates are no longer relevant. If the Unit 1 equipment is close enough to being ready for delivery that it must be shipped to storage because the customer cannot take possession of it, it does not matter if we ship to storage before or after the contract delivery dates. 2.2 The comment to 2.1 applies to this paragraph also. Further, there is no guaranteed delivery date for non-Major Components as long as delivery of that equipment does not impede the continuous progress of installation. 2.4 Delete the words "unless caused by Seller or its Subcontractor" at the end of this paragraph. Otherwise, the paragraph first takes a responsibility away from GE and then re-imposes it. As I understand it, there is a significant possibility that some cosmetic deterioration to external surfaces will occur to the equipment while it is in storage. This is a function of the storage conditions and GE is responsible for those conditions. 2.6 Delete in its entirety the second sentence which reads "Passage of title and warranty obligations of Seller with respect to the Unit 1 Equipment remain unchanged under the Agreement". Article 5.5.2 makes it clear that Purchaser's direction to place equipment into storage causes title to pass and delivery for the purposes of LDs and final payment to occur even though Purchaser has not taken physical possession of the stored equipment. 5.5.2 also indicates that all expenses incurred by Seller as the result of placing equipment into storage shall be payable by Purchaser. These expenses include any extension of the Primary Warranty Period that results from storage. The deleted sentence should be replaced by: "The parties agree that the Primary Warranty Period for Unit 1 Equipment placed into storage shall be determined in accordance with Article 14.1.1 of the Agreement except that the Primary Warranty Period shall end for the gas turbine and generator no later than March 11, 2004 and for the balance of the Unit 1 Equipment on March 31, 2004 unless extended by mutual agreement." 2.10 We will insure the equipment to 100% of its purchase price. The policy in place will have a $300,000 deductible, for which GE will be responsible. 2.11 Seller's responsibility for both damage and loss, not just loss, should pass to Purchaser. The rest of the changes are acceptable. Regards, Jeff

---------------------- Forwarded by Tori Kuykendall/HOU/ECT on 12/19/2000 07:28 AM --------------------------- Paul Arlinghaus <[email protected]> on 12/19/2000 12:09:00 AM To: Zach Pappadeas <[email protected]>, Will Portales <[email protected]>, Walter Reade <[email protected]>, Vickie Thomas <[email protected]>, Vartkes Nadjarian <[email protected]>, Traci Latson <[email protected]>, Tori Kuykendall <[email protected]>, Tom Wood <[email protected]>, Tom Landis <[email protected]>, Tim Taft <[email protected]>, Tim Lesko <[email protected]>, Tara McCurry <[email protected]>, Tania Arlinghaus <[email protected]>, Tamara Arlinghaus <[email protected]>, Tamar Balikian <[email protected]>, Taleen Evans <[email protected]>, Susan Broz <[email protected]>, Steven Murray <[email protected]>, Steve Swift <[email protected]>, Steve Otillar <[email protected]>, Steve Cupit <[email protected]>, Sondra Ludwick <[email protected]>, Silva Frankian <[email protected]>, Sevan & Gary Serkhoshian <[email protected]>, Scott Shields <[email protected]>, Saori Sekiguchi <[email protected]>, Sany Lynch <[email protected]>, Robert Baker <[email protected]>, Reza Behini <[email protected]>, Ralph Cash <[email protected]>, Ralph Arlinghaus <[email protected]>, Pete White <[email protected]>, Patrick Manley <[email protected]>, Nora Frankian <[email protected]>, Nancy Caprario <[email protected]>, Muge Wood <[email protected]>, Moreen & Art Whitlock <[email protected]>, Mike Zimmer <[email protected]>, Mike Rossi <[email protected]>, Mike Bordelon - work <[email protected]>, Mike & Rita McMahon <[email protected]>, Merrill Stanley <[email protected]>, Melissa Bush <[email protected]>, Matt Johnson <[email protected]>, Matt Colquhoun <[email protected]>, Marshall Speiden <[email protected]>, Mark Arlinghaus <[email protected]>, Marcus Boone <[email protected]>, Lindy Johnson <[email protected]>, Leigh Craft <[email protected]>, Kristina Holt <[email protected]>, Kristin Beizerman <[email protected]>, Kristi Roland <[email protected]>, Kim Arlinghaus <[email protected]>, Kevin Brown <[email protected]>, Kent Baker <[email protected]>, Ken Feldman <[email protected]>, Ken & Araxie Evans <[email protected]>, Karen Subieta <[email protected]>, "Karen Owens (home)" <[email protected]>, Justin Thompson <[email protected]>, Julieta Pruneda <[email protected]>, Julie Reade <[email protected]>, Julie Drew <[email protected]>, Julie Anderson <[email protected]>, JR Reynolds <[email protected]>, Jeff Czar <[email protected]>, Jeannine Speiden <[email protected]>, Jay Wheeler <[email protected]>, Janet Parsons <[email protected]>, Jacky Crawford <[email protected]>, Isreal Hernandez <[email protected]>, Herschel Johnson <[email protected]>, Herag Frankian <[email protected]>, Heather Wilson <[email protected]>, Heather Anderson <[email protected]>, Harold Buckner <[email protected]>, Gerberta Black <[email protected]>, Ernie Rodriguez <[email protected]>, Erica Crawford <[email protected]>, Elysa Kuo <[email protected]>, Ellen Craft <[email protected]>, Elizabeth Meyer <[email protected]>, Edmund Jones <[email protected]>, Dom Federico <[email protected]>, Dirk Holoubek <[email protected]>, Dianne Kelly <[email protected]>, Derick Schaefer <[email protected]>, Deborah Denson <[email protected]>, Deb & Kel Kelley <[email protected]>, Dawn Naso <[email protected]>, Dave Mullins <[email protected]>, Dana Greger <[email protected]>, Craig Beatty <[email protected]>, Constance Pappas <[email protected]>, Connelly McGreevy <[email protected]>, Clayton Walberg <[email protected]>, Cici Meyer <[email protected]>, Chuck Wilson <[email protected]>, "Chuck Hebert (work)" <[email protected]>, Christine Thaxton <[email protected]>, Chris Puckett <[email protected]>, Chris Parker <[email protected]>, Chris Naso <[email protected]>, Chris Moore <[email protected]>, Chris Lowe <[email protected]>, Chris Couvillion <[email protected]>, Cherie & Roger Wines <[email protected]>, Charlie Kutach <[email protected]>, Cathy Arlinghaus <[email protected]>, Catherine Manley <[email protected]>, Catherine Koundakjian <[email protected]>, Caroline Nichols <[email protected]>, Carol Beatty <[email protected]>, Brian Puckett <[email protected]>, Brian Mitts <[email protected]>, Brian Keagy <[email protected]>, Brian Cutter <[email protected]>, Brenda Mitchell <[email protected]>, Bob Buley <[email protected]>, Bill Poe <[email protected]>, Betty Anne Poe <[email protected]>, Ben Ibarra <[email protected]>, Aunt Dottie Reade <[email protected]>, Aunt Chubby Myers <[email protected]>, Art Caprario <[email protected]>, Anita Woods <[email protected]>, Angela Brod <[email protected]>, [email protected], Amy Mitts <[email protected]>, Amanda Miller <[email protected]>, Alicia Pi-Sunyer <[email protected]>, Alex Deison <[email protected]>, Aaron Suder <[email protected]>, Carmen Carter <[email protected]> cc: Subject: It's a Boy!! Tamara and I are happy to announce the arrival of our new baby boy! ? Nicholas Philip Arlinghaus Born Thursday, 12/14/00 at 2:53 p.m. 6 pounds, 5 ounces 19 inches ? Tamara and Nicholas are doing great.? Enjoy the pictures.? I will post more on our baby web site (click on the stork and then go to "photos"): ? http://home.swbell.net/paulwes ? -Paul - Nicholas at 2 days.jpg - Mother and Baby.jpg - New Family.jpg - Babys First Christmas.jpg

TODAY'S HEADLINES The New York Times on the Web Monday, May 7, 2001 ------------------------------------------------------------ For news updated throughout the day, visit www.nytimes.com QUOTE OF THE DAY ========================= "Que ser" - SISTER MIRIAM THISSEN, a nun who will donate her brain to a study on aging. Full Story: http://www.nytimes.com/2001/05/07/health/07NUNS.html NATIONAL ========================= Most Cities in U.S. Expanded Rapidly Over Last Decade http://www.nytimes.com/2001/05/07/national/07CITI.html Nuns Offer Clues to Alzheimer's and Aging http://www.nytimes.com/2001/05/07/health/07NUNS.html Washington Is Losing Its Only Public Hospital http://www.nytimes.com/2001/05/07/health/07HOSP.html Now You Need an Area Code Just to Call Your Neighbors http://www.nytimes.com/2001/05/07/business/07DIGI.html /--------------------- ADVERTISEMENT ---------------------\ What's ahead for business in 2001? Get the Times's perspective on business and the economy in 2001, both foreign and domestic. Explore our Web exclusive interactive timeline of business in 2000 that ranges from the AOL Time Warner merger to the plunging Nasdaq with an essay by Floyd Norris, the Times's senior financial correspondent. http://www.nytimes.com/library/financial/2001outlook1-index.html?ibd \---------------------------------------------------------/ POLITICS ========================= News Analysis: To European Eyes, It's America the Ugly http://www.nytimes.com/2001/05/07/world/07EURO.html White House Debates Fate of Pollution-Control Suits http://www.nytimes.com/2001/05/07/politics/07POLL.html Children Step Up to Plate at White House http://www.nytimes.com/2001/05/07/politics/07TBAL.html Public Lives: When She Talks Arms, Washington and Moscow Listen http://www.nytimes.com/2001/05/07/politics/07LIVE.html INTERNATIONAL ========================= Pope, in Damascus, Reaches Out for Unity With Mosque Visit http://www.nytimes.com/2001/05/07/world/07POPE.html Space Tourist, Back From 'Paradise,' Lands on Steppes http://www.nytimes.com/2001/05/07/science/07SPAC.html News Analysis: To European Eyes, It's America the Ugly http://www.nytimes.com/2001/05/07/world/07EURO.html Spanish Politician Killed; Basque Group Suspected http://www.nytimes.com/2001/05/07/world/07BASQ.html BUSINESS ========================= Energy Trader Said to Be Close to Acquiring Gas Producer http://www.nytimes.com/2001/05/07/business/07DEAL.html Privacy Policy Notices Are Called Too Common and Too Confusing http://www.nytimes.com/2001/05/07/business/07PRIV.html Now You Need an Area Code Just to Call Your Neighbors http://www.nytimes.com/2001/05/07/business/07DIGI.html Stay-at-Home Instinct Fosters Flush Times at 'Shelter' Magazines http://www.nytimes.com/2001/05/07/business/07MAGS.html TECHNOLOGY ========================= Dragon Systems Sputters After Belgian Suitor Fails http://www.nytimes.com/2001/05/07/technology/07DRAG.html New Economy: Privacy Concerns for Google Archive http://www.nytimes.com/2001/05/07/technology/07NECO.html Modern Plans for an All-but-Forgotten Mail Delivery System http://www.nytimes.com/2001/05/07/technology/07TUBE.html E-Commerce Report: An Online Vintage, Still Unproved http://www.nytimes.com/2001/05/07/technology/07ECOMMERCE.html NEW YORK REGION ========================= 4 Democrats Spar Cordially in Mayor Race http://www.nytimes.com/2001/05/07/nyregion/07MAYO.html For Police Horses, Pasture's Sale Means the Loss of a Pension http://www.nytimes.com/2001/05/07/nyregion/07HORS.html Modern Plans for an All-but-Forgotten Mail Delivery System http://www.nytimes.com/2001/05/07/technology/07TUBE.html Trial Set to Begin Over '99 Slaying of 'Soldier of Social Work' http://www.nytimes.com/2001/05/07/nyregion/07TRIA.html SPORTS ========================= Mussina and Yanks Remind Orioles That Life Is Unfair http://www.nytimes.com/2001/05/07/sports/07YANK.html Mussina Sold Out, but Not for Money http://www.nytimes.com/2001/05/07/sports/07RHOD.html Mets Save Worst for Last Against Arizona http://www.nytimes.com/2001/05/07/sports/07METS.html Carter's Tip Is Difference in Duel of Stars http://www.nytimes.com/2001/05/07/sports/07SIXE.html ARTS ========================= Behind Masterworks for Sale, a Collector's Unerring Eye http://www.nytimes.com/2001/05/07/arts/07BERG.html Charlie Sheen Delivers a New Spin to 'Spin City' http://www.nytimes.com/2001/05/07/arts/07SPIN.html Writers on Writing: A Retreat From the World Can Be a Perilous Journey http://www.nytimes.com/2001/05/07/arts/07ROSE.html 'Urinetown': Wicked Antics Taunt Showbiz http://www.nytimes.com/2001/05/07/arts/07URIN.html OP-ED COLUMNISTS ========================= By WILLIAM SAFIRE: Slavery Triumphs The United States is off the U.N. Human Rights Commission because it exposed the commission to be a pack of hypocrites. http://www.nytimes.com/2001/05/07/opinion/07SAFI.html By BOB HERBERT: Life Before Roe Elizabeth Furse, a retired Democratic congresswomen, endured the twisted, sadistic solutions that were widespread in the era before Roe v. Wade. http://www.nytimes.com/2001/05/07/opinion/07HERB.html HOW TO CHANGE YOUR SUBSCRIPTION ------------------------------------------------------------ You received these headlines because you requested The New York Times Direct e-mail service. To cancel delivery, change delivery options, change your e-mail address or sign up for other newsletters, see http://www.nytimes.com/email HOW TO ADVERTISE ------------------------------------------------------------ For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact Alyson Racer at [email protected] or visit our online media kit at http://www.nytimes.com/adinfo

Start Date: 4/22/01; HourAhead hour: 20; HourAhead schedule download failed. Manual intervention required. LOG MESSAGES: PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001042220.txt Error: dbCaps97Data: Cannot perform this operation on a closed database !!!Insufficient memory for this operation. Alias: dbCaps97Data !!!Insufficient memory for this operation. Alias: dbCaps97Data Error: dbCaps97Data: Cannot perform this operation on a closed database !!!Insufficient memory for this operation. Alias: dbCaps97Data !!!Insufficient memory for this operation. Alias: dbCaps97Data Error: dbCaps97Data: Cannot perform this operation on a closed database !!!Insufficient memory for this operation. Alias: dbCaps97Data !!!Insufficient memory for this operation. Alias: dbCaps97Data Error: dbCaps97Data: Cannot perform this operation on a closed database !!!Insufficient memory for this operation. Alias: dbCaps97Data !!!Insufficient memory for this operation. 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Dear Mr.. Skilling, Given the current events of the last several years regarding power generation and delivery across our nation, I have a proposal, I'm sure will interest you. First, with your position with Enron, you must be keenly aware of the issues that we face as a nation, and direct impact which the energy markets have on our economic health. Additionally, you must also be aware of the capacity imbalance from region to region, lack of capital improvements by the incumbent utilities, ISO's etc, all of which has created a situation that our national grid is in a state of degradation, in which even the delivery and transfer of existing capacity is questionable, must less the additional generation which is being added. This has rendered our national grid, with its many segmented regions to slightly above that of a third world nation. This lack of capital investment has been exacerbated by a lack of clear direction by the vast number of regulatory bodies, and general lack of aggressive entrepreneurial motivation and vision by the various utilities to develop creative solutions to issues which they have a vested interest to resolve, but haven't. It appears that there are vast opportunities available to an aggressive, first mover organization which can pull together the resources, and bring all the players together along with the capital markets to initiate, develop and build additional capacity or to enhance the existing power delivery and transfer. While the Bush Energy Policy goes a long way towards bringing federal backing to developing additional generation capacity, it appears to fall short regarding the transmission systems that cross our nation, of which many are already straining under a heavy load, which is only anticipated to grow. Additional transmission capacity must be built, including additional interconnects between the various grids and/or existed interconnects strengthened. The ability to transfer power from the east coast to the west coast, as the power demand peak moves across the country from the east, or the ability to transfer power from such area's as Nova Scotia which has an abundant supply of inexpensive Hydro Power would certainly be the ideal situation. What I propose, is the development of a new Enron company, of which its vision would be to identify and develop opportunities to build various transmission assets, and/or additional generation capacity or to strengthen existing assets. This would be accomplished by bringing various players together under the Enron lead, and working with the capital markets to develop a strategy, allowing for the asset to be built. All the while keeping in mind, the asset light and capital velocity approach. It would be the goal of this new organization, not to own the physical asset, but to retain the rights to a portion of its capacity. This capacity could then be traded or used for power transfers from regions with inexpensive supplies to areas that shortages exist. I envision long term inexpensive contracts for Nova Scotia hydropower; being transferred to such area's as New York, the Midwest, or even California. While such an idea is not unique, with several proposals being considered by various organizations across our country. Such as the following: Path 15, long recognized as the major transfer constraint between North and Southern California. Recently, WAPA has issued a solicitation for equity participation, in which private organizations could participate, in the financing, building and ownership with rights to its capacity. http://www.epa.gov/fedrgstr/EPA-IMPACT/2001/June/Day-13/i14874.htm Neptune Project a private initiative in the New England states being proposed by a group of companies, mostly non-utility for except ABB. This project has recently been approved by FERC and is currently soliciting bids for capacity rights, ownership, etc. http://www.neptunerts.com/ TransAmerica Project another private initiative being proposed by Black & Vetch along with Siemens. The scope of this project is to build a DC line between the east/west grids, thereby allowing a transfer capacity increase to 6000 MW. This project has already been presented to the National Energy Committee put together by President Bush as a viable project and potential solution. http://www.bv.com/bv/news/pressrel/2001/bv_siemn.htm While great idea's are plentiful, the problem is funding from the capital markets, or an organization with proven leadership and track record to pull off such a project. This is just the beginning, and given the historical lack of investment in the grid, many more opportunities will had by an aggressive organization with the foresight to put together the team to capture them as they come available. I envision that this organization would work in conjunction with TranConnect , which Portland General is currently a member, in order to expand or compliment their efforts. It's my opinion and that of many others, that the only organization on this planet, with the financial strength, entrepreneurial vision, superior management along with political clout, to pull all the components together to make this a success, is Enron. As a former Enron employee, I am extremely familiar with a number of the organizations, which make up Enron, and feel that this would certainly compliment or augment existing operations. While I'm not with Enron as this time, I certainly am proud of the contributions I made while with such a progressive organization and I am extremely interested in meeting with you at your earliest convenience to discuss this proposal and it's fit into overall Enron strategic plan. For further discussion, I can be contacted at (602) 758-4544 (Cell) Regards, Mike Stefanik

Lindy -- FYI. This is just really informal so I'd prefer you not forward to anyone yet. Drew and Maria are most familiar with this so I'm going to get their feedback first before setting up a meeting. I'll get with you before I set a meeting time to see when you're available. ---------------------- Forwarded by Susan Scott/ET&S/Enron on 11/27/2000 06:27 PM --------------------------- Susan Scott 11/27/2000 06:28 PM To: Drew Fossum@ENRON, Maria Pavlou/ET&S/Enron@ENRON cc: Subject: Recourse rate dilemma: the sequel Maria and Drew, this is a long-winded e-mail but please bear with me... The problem: As you probably remember, several months ago several of us met to discuss the following language in the ROFR portion of Transwestern's tariff: "if the rate bid exceeds the maximum tariff rate, then the rate will be considered to be the maximum tariff rate," and the additional frustrating language "[a]ll available capacity shall be allocated under these procedures . . .." At our last meeting, we concluded that probably the best way to ensure that TW could capture the true value of the capacity would be to link the negotiated rate to index prices. However, since this usually involves an unacceptable amount of risk to both the shipper and TW, the marketers haven't done any index-based rates and have no current plans to enter into any such deals. I have been asked by the Commercial Group to revisit this issue and to think of other ways we could increase our ability to charge more than the maximum rate. Ideally they would like to eliminate the language I've quoted above. However, my research has indicated that absent our 1) bringing about radical change in the way FERC thinks about recourse rates or 2) showing that TW lacks market power, we are probably stuck with this language. Why the problem exists (you may already know): Steve Stojic and I did some looking into why the language is in our tariff in the first place. In the Alternative Rates Policy Statement (RM95-6-000), the Commission explained that it is willing to entertain individual requests for negotiated rates, but only where customers retain the ability to choose a cost-of-service based tariff rates. "[T]he availability of a recourse service would prevent pipelines from exercising market power by assuring that the customer can fall back to cost-based, traditional service if the pipeline unilaterally demands excessive prices or withholds service. Thus, the recourse rate mitigates market power." The Commission went on to confirmed that under ROFR provisions the highest rate that an existing shipper must match if it wishes to continue its transportation arrangement is the maximum tariff rate. This policy is clearly not limited to ROFR situations: when capacity is constrained, a shipper willing to pay only the recourse rate cannot lose access to capacity merely because someone else is willing to pay a negotiated rate. "When there are more requests for capacity than there is capacity available, then the pipeline must allocate capacity among those shippers willing to pay either the negotiated rate or the maximum recourse rate, for example on a pro rata basis if required by its tariff." The example cited by the Commission: If a pipeline has 100 Dth/d available and two shippers request that capacity, one who is willing to pay no more than the recourse rate of $5 and another a negotiated rate of $6, then each would be allocated 50 Dth/d on a pro rata basis (assuming the tariff provided for pro rata allocation and not some other allocation method such as lottery). When TW filed for authority to charge negotiated rates, it voluntarily added the statement that "if the rate bid exceeds the maximum tariff rate, then the rate will be considered to be the maximum tariff rate." Presumably we had concluded that we needed to add this recourse rate related provision in order to receive negotiated rate authority. Solutions?? I would like to know whether you concur that changing our tariff language outright is probably out of the question. I feel as if I've really been chasing my tail here. I have owed Lindy an answer for some time now. But I keep coming back to our having to prove lack of market power (which, Drew, is where I believe you were headed when we talked about this in mid-October). Steve Harris has asked whether we can just start small and remove the recourse rate cap as to only a portion of our system. I think we would still have to show lack of market power in order to do this. Do you agree? Stojic warns that proving lack of market power is a lengthy and expensive proposition. Might be worth it to us, though. Another idea is to somehow provide shippers with an incentive to pay more than max rate. After all, we do have authority to charge negotiated rates. We've seen one instance in which one of our marketers was able to get more than max rates for IT space based on good customer relations alone. However, despite our wonderful relationships with most of our customers, it's unlikely we can pull this off with any consistency. We wondered whether we might be able to get more than max rates in the context of an auction procedure. But I just am not convinced we could get around the Commission's requirement that recourse rates be available. That requirement has not changed. Have either of you seen anything to the contrary? I would like to meet with you two, plus several others I have in mind, to discuss this, preferably early this week (Tues. or Wed.), but would like to discuss briefly with you first. Please call me so we can talk for a few minutes. Thanks.

---------------------- Forwarded by Eric Thode/Corp/Enron on 10/18/2000 02:55 PM --------------------------- Eric Thode 10/18/2000 02:41 PM To: Mark Palmer/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, James D Steffes/NA/Enron@Enron cc: Subject: San Diego Union Tribune Have you seen this? Eric Power-company profits climb along with prices By Craig D. Rose UNION-TRIBUNE STAFF WRITER October 18, 2000 A power company executive yesterday boiled California's ongoing electricity crisis down to the bottom line. "Prices are rising, and I know that's hurting consumers
) but it certainly has been beneficial for Enron," said Jeffrey Skilling, president and chief operating officer of the Houston-based energy and trading company. Enron declined to specify how much it earned from California during the past summer, when the state's deregulated electricity market sent power prices soaring. But the Texas company did say that profits of its sales and services unit
) which trades California electricity and o ther commodities
) increased 135 percent to $404 million. Dynegy Inc., also based in Houston, reported that income from its marketing and trade unit soared more than 300 percent to $142 million. Steve Bergstrom, president of Dynegy, said California was perhaps only the third-biggest contributor to that surge. But industry analysts said the earnings reports are the first indication of a pattern expected in coming weeks. "California clearly drove the positive momentum at both of these companies," said Carol Coale, senior analyst of Prudential Securities. "And you probably just saw the beginning of a string of strong reports (from the power industry)." She and others say they suspect that power companies derived billions in profits from the state, where tight supplies set the stage for huge price increases. Companies did not necessarily have to own generating plants to profit from the deregulated market. Enron produces no electricity in California but is the nation's largest electricity trader, buying and selling the output of power plants owned by other companies. Rep. Duncan Hunter, R-El Cajon, said the big profits should be seen in something other than a business context. "These massive profits by the energy companies translate directly into thousands of San Diegans losing savings that were planned for education, mortgage payments, health care and other . . . necessities," Hunter said. When the state power exchange saw dramatic price increases within a matter of hours, "it was clear that predatory pricing was producing massive profits for someone," Hunter said. Hunter insists that recent power prices violate federal law mandating that rates be "just and reasonable." He is calling for the Federal Energy Regulatory Commission to order refunds. FERC is scheduled to issue a report on the California market by Nov. 1. The political fallout from the price increases, meanwhile, appears to weigh heavily on power companies, which are reluctant to tout successes in California for fear of being singled out for profiteering. After noting that Dynegy's recent acquisitions in Illinois contributed strongly to the company's success last quarter, Bergstrom was reminded that he had omitted mention of California. "Illinois is not as politically volatile as California," Bergstrom said. He acknowledged that Dynegy did "pretty well" in California because its power plants produced far more electricity this year than last. Bergstrom also sought to correct an earlier report that Dynegy had quickly recouped the cost of power plants it recently acquired in the state. He said that was true only of the plants it owns in Long Beach and El Segundo, which it bought in 1998. Bergstrom said the cost of Dynegy's half interest in the former San Diego Gas & Electric Encina power plant in Carlsbad
) acquired at the end of 1998
) had not been recovered. Typically, plant operators assume that it will take as long as 20 years to recoup such costs. In comments to financial analysts, Skilling, of Enron, suggested that power companies could help provide a solution to California's power problems. "Supply constraints and the resulting price pressures in California and other locations have demonstrated the need for skilled marketers like Enron to provide reliable power and stable prices," Skilling said. He predicted that California's utility companies
) which now buy much of their power from other companies
) would sign long-term contracts to stabilize prices, following an approach suggested by many power generators and traders. "If they were willing to extend the terms of their purchases to 10-year contracts, then they could get contracts for $50 a megawatt, which is not much different than they were paying two or three years ago," Skilling said. But consumer advocates have noted that long-term contracts at those levels would lock consumers into price increases and leave them with little choice about suppliers. Advocates of electrical deregulation had predicted that introducing competition would lead to reductions in power costs and to greater consumer choice. Harry Snyder, senior advocate for Consumers Union in San Francisco, said he was skeptical of solutions proposed by the power industry. "Any proposal from the industry has to be suspect because they have engaged in faking out the California public and price gouging when there are shortages," said Snyder, who advocates an end to deregulation. "They do not have consumer interests at heart."

In case this becomes big news in the United States, attached is a summary from the Argentina team of the political situation in Argentina. It is not a political meltdown but it is a significant change in the executive branch and potential realignment of the political parties in Argentina. The cabinet shuffle and resignation of the vice president are in the wake of the senate bribery scandal in Argentina where the opposition was supposedly bribed to vote for the governments changes in law (actually in favor of economic reform). The cabinet shuffle was economics oriented with the economic team being strengthened, but potentially at the expense of the alliance that holds the government and a majority in Congress over Menem's party, the peronists. The vice president was the senior member of the second party in the alliance (President De La Rua is senior member of the first party in the alliance). Financial markets reacted slightly negatively to the shakeup with bond spreads widening slightly and Argentine stock prices down slightly. As a minimum we will keep a close eye on the political and financial situation and be prepared for any more significant reaction by the financial markets. ---------------------- Forwarded by James M Bannantine/ENRON_DEVELOPMENT on 10/08/2000 07:04 PM --------------------------- Don Black@ENRON 10/07/2000 08:16 AM To: James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Joe Kishkill/SA/Enron@Enron, Diomedes Christodoulou/SA/Enron@Enron, Peter E Weidler/NA/Enron@Enron, Michael Guerriero/SA/Enron@Enron Subject: Argentina Political Analysis Mike, Thanks for the quick turnaround on this from you and your team. Jim, This is as far as this distribution went. Please edit as needed and forward to whomever you feel necessary. ---------------------- Forwarded by Don Black/SA/Enron on 10/07/2000 11:07 AM --------------------------- From: Michael Guerriero on 10/07/2000 10:13 AM To: Don Black/SA/Enron@Enron cc: Guillermo Canovas/SA/Enron@Enron, Cristian Folgar/SA/Enron@Enron, Maria Belen Salvador/SA/Enron@Enron Subject: Argentina Political Analysis As reported Carlos Chacho Alvarez resigned his position Friday as Vice president of Argentina. The main reason of this resignation was a political disagreement with Cabinet changes announced on Thursday 5th by President De la Rua. Alvarez publicly noted he could no longer tolerate the political differences with the President over the senate bribery scandal. Particularly Alvarez disagreed with De la Rua's decision to promote Alberto Flamarique from Minister of Labor to General Secretary and to keep Fernando de Santibaez as Chief of the Intelligence Department. Both Flamarique and Santibaez are suspected of paying bribes to Senators to vote for a new Labor Law. Alvarez has emotionally championed the fight against the senate scandal and has been strongly advocating for the resignation of Flamarique, Santibaez and all Senators involved in the affair. It was considered that the decision of De la R?a was intended to demonstrate that he, and not Alvarez, holds the power and that De la R?a wanted to demonstrate that the changes were focused on improving the economic situation and to move beyond the Senate scandal. The main changes in the cabinet, announced on Thursday 5th, are the following: Chistian Colombo (economist, in good relationship with Machinea) will replace Terragno as Chief of Cabinet. Machinea (Minister of Economy) will also be responsible of the Ministry of Infrastructure. Jorge De la R?a (former General Secretary of the President and President's brother) will be Minister of Justice. Patricia Bullrich (peronist) will be Minister of Labor. As a consequence of Alvarez' resignation, Flamarique resigned to his position of General Secretary of the President. Regarding the preliminary impact of the political changes to the economic situation it could be considered the following: Before Alvarez resignation, the cabinet changes were considered positive intending to increase the power of the Minister of Economy and reduce the internal disagreements in the Administration. Although Alvarez (the leader of the Frepaso party) said he will be still part of the "Alianza" (the Radical and Frepaso party alliance) in Office, Alvarez' resignation could lead to the division of the Alianza and reduce the ability of De la Rua to pass new laws in the Congress. A breakup of the coalition would make the Peronist the largest party in both houses of Congress only compounding the potential for government gridlock This situation will weaken De la Rua and probably foster new re-alignments in the political field. All the situation will increase economic uncertainty and will delay economic recovery. The market will wait to see if a conflict develops in the Alianza. De la Rua and his team will probably be forced to take "strong" decisions to retain the political initiative, strength and control. Machinea will probably try to gain the market confidence, announcing that De la Rua's Administration will not change the macro foundations of the economic agenda and even increase its commitment toward monetary and fiscal equilibrium, exchange rate policy, respect for vested rights, etc. Financial analysts have viewed the situation as "an institutional crisis with unknown effects on the economy". The insecurity of the Argentina's political future caused Argentine debt paper to fall. The Argentine JP Morgan Emerging Market Bond Index widened 23 basis points to 685 over US Treasuries. Argentina's 17 year global bond fell only slightly. There does not appear to be a market panic as noted by the trading of Argentine ADR's in New York. They were down cents rather than dollars and a number of them closing unchanged. We will continue to monitor the situation and update as warranted.

NEWS PUC Sidesteps On Who Pays Utilities' Costs / Meanwhile, commision OKs rate cap for San Diego David Lazarus, Chronicle Staff Writer ? 09/08/2000 The San Francisco Chronicle FINAL A1 (Copyright 2000) ? ? Amid growing confusion over California's energy future, state regulators yesterday ducked the politically volatile question of whether utilities such as PG&E can sock customers with billions of dollars in extra electricity charges. The Public Utilities Commission did approve a rate cap for San Diego electricity customers. ? But frustrated commissioners hinted they may kick the matter of who pays for utilities' costs back to the state Legislature, which had been hoping the PUC would solve the thorny question. For his part, Gov. Gray Davis suggested yesterday that the issue should stay with the PUC. "Everyone is passing the buck," said Mike Boyd, president of Californians for Renewable Energy, a Sunnyvale nonprofit group. "The Legislature doesn't want to touch it. The PUC doesn't want to touch it. It's a hot potato." And the stakes are very high. As The Chronicle reported yesterday, Pacific Gas and Electric Co. hopes to hit its customers with all the costs it will accrue under a current rate freeze -- as much as $15 billion -- when the utility's rates are deregulated in early 2002. For its part, San Diego Gas & Electric is estimating that its costs could run as high as $800 million, and it too wants ratepayers to shoulder the full burden. Boyd said California lawmakers and energy regulators ultimately may be forced to call on the Federal Energy Regulatory Commission to weigh in on the matter. RELUCTANCE TO PLAY REFEREE However, the commission's chairman, James Hoecker, said in a telephone interview from Washington, D.C., that federal authorities would be reluctant to play referee. "The recovery of costs could arguably be an issue for us," he said. "But we're not in the habit of telling states what their laws mean." That's something state officials themselves are still grappling with. Amid confusion over whether they even have jurisdiction over such an issue, the PUC commissioners said their approval of the rate cap in San Diego is unrelated to whether utilities should be compensated for out-of-pocket expenses. The rate cap, as mandated in a bill passed by lawmakers last week, required the blessing of the commission to take effect. LAW FUZZY ON COMPENSATION The governor signed the bill into law on Wednesday. However, the law is fuzzy about whether the local utility should be compensated for expenses incurred as a result of the rate cap. At issue is the difference between what utilities must pay for power in the turbulent wholesale energy market and the amount they can charge ratepayers. California's 1996 electricity deregulation bill froze power rates statewide to stabilize the industry during a transition to a free- market arena. San Diego was the first city to face the full impact of deregulation when its rate freeze was lifted last year. Average power bills subsequently doubled, sparking outrage and protests among ratepayers. The governor has accused power generators of manipulating prices and gouging consumers. State and federal authorities are investigating such charges. By imposing a rate cap yesterday, the PUC effectively brought electricity deregulation to a halt as lawmakers and regulators struggle to fix the current system. "Regulation is coming back because it has to," said Nettie Hoge, executive director of the Utility Reform Network, a San Francisco consumer group. RATE CAP RETROACTIVE In line with the new law, the PUC capped San Diego power rates for residential customers and small businesses at 6.5 cents per kilowatt- hour, retroactive to June 1. This means average monthly power bills will be about $68. The commission also opened an investigation into the "prudence and reasonableness" of San Diego Gas & Electric's decision not to secure long-term wholesale energy contracts. Instead, the utility exposed its customers to daily swings in energy prices. "Our basic obligation is to assure the people of California that the rates they pay for energy are just and fair," said PUC Commissioner Carl Wood. However, he stressed that yesterday's PUC action did not address the question of whether utilities should be compensated for deregulation-related expenses and said the matter should be taken up at a later date. "We are acting too much in haste," agreed Richard Bilas, a Republican appointee who seldom sees eye-to-eye with Democratic- appointee Wood on PUC decisions. "The most the commission should do is make a recommendation to the Legislature," Bilas said. For his part, the governor yesterday moderated the aggressively pro-consumer stance he has taken in response to the state's energy woes. Asked whether utilities should be able to place a surcharge on future bills to recover costs related to deregulation, Davis adopted a more conciliatory tone. "I do believe utilities should not be left holding the bag for any problems associated with the 1996 law if they have acted responsibly," he said. PG&E officials told The Chronicle on Wednesday that the utility is now about $2 billion in the hole as a result of its rate freeze and that this amount is rising by nearly $700 million a month. Sen. Dede Alpert, D-San Diego, one of the authors of the rate-cap legislation, said that while the question of who should tackle the surcharge issue remains up in the air, a likely outcome is that both the utilities and ratepayers will end up shouldering some costs. "In the end," she said, "consumers are likely to pay some portion of this." PHOTO; Caption: Gov. Gray Davis said the issue of passing on costs shouldstay with the state PUC.

I was concerned about having to have the Washington DC and Houston people travel on Sunday. When I checked schedules, I found that Delta 443/759 (Dp 6:45 am -- Connect Cincinnati -- Ar 11:07) might work on Monday for the Washington people. From Houston, 1647/1063 (Dp 8:05 am -- Connect Salt Lake -- Ar 11:59am) would work to avoid Sunday travel. United probably has similar offerings through Denver. If people prefer non-stop Continental flights, Sunday flights are probably needed. Steve -----Original Message----- From: Perrino, Dave Sent: Tuesday, August 28, 2001 8:31 PM To: Comnes, Alan; Nicolay, Christi L.; Steffes, James D.; Dasovich, Jeff; Lysa Tracy (E-mail); Karen Denne (E-mail); Alvarez, Ray; Novosel, Sarah; Hall, Steve C. (Legal); Walton, Steve; Davidson, Debra; Landwehr, Susan M. Subject: RE-SCHEDULING A RE-SCHEDULED WESTERN REGION MEETING!!!!! Importance: High Dear Western Government Affairs folk, This message is to request you check your calendars and your availability for a western region meeting in Portland to be held on Monday October 1, starting at 12:00 PM through 6PM and Tuesday October 2 from 8:00 AM through 12:00 PM. Please let me know whether or not you can make the proposed dates. (Lysa and Debra, can you please check Paul and Tim's calendars for their availability?) For those of you who had planned on attending in September, I am sorry to again cause you this inconvenience. Hopefully for everyone who wanted to attend, but couldn't, this will offer you the opportunity to participate on October 1 and 2. Due to the volume of new policy related issues in our region since the meeting was originally scheduled, I would expect there will be some modifications to our previously distributed agenda below. When you have an opportunity, please review the agenda below and send any updates to me asap so I can formalize the agenda and distribute it to the group. Dear All, As a result of the recent volume of activity in Washington DC, with mediation proceedings, refund discussions and the need for key members of our team that need to attend these meetings, it has been decided to re-schedule the meeting of the Western Government Affairs group to Wednesday, September 12, in Portland, 10AM-5PM. For those of you who had planned on attending, I am sorry to cause you this inconvenience. Hopefully for those of you who wanted to attend, but couldn't, this will offer you the opportunity to participate on September 12. Due to the volatility of policy related issues in our region, I would expect there may be some modifications to our current agenda below. As these changes occur I will communicate this information to you. Any questions or concerns, please contact me. Kind Regards, Dave << OLE Object: Picture (Device Independent Bitmap) >> From: Dave Perrino 07/20/2001 09:36 AM To: Steve Walton/ENRON@enronXgate, Alan Comnes/PDX/ECT@Enron, Christi L Nicolay/HOU/ECT@ECT, Debra Davidson/ENRON@enronXgate, James D Steffes/NA/Enron@Enron, Paul Kaufman/ENRON@enronXgate, Ray Alvarez/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Steve C Hall/ENRON@enronXgate, Steve Walton/HOU/ECT@Enron, Karen Denne/ENRON@enronXgate cc: Lysa Tracy/ENRON@enronXgate, Debra Davidson/Enron@EnronXGate Subject: Draft Agenda for - Western Government Affairs Meeting Below is a draft agenda for our planned meeting on Wednesday August 1 in Portland Oregon from 10-5. Tim Belden will be joining us from11:30-1PM (thanks Debra) and the agenda is taking Tim's time into account. We will be meeting in the Mt. Hood Room, a working lunch will be provided (thanks Lysa). If you would like to modify the agenda, please send your edits to me. 10:00 Meeting called to order - Brief Introductions - All 10:10 Overview of Western Government Affairs Priorities (Jim or designee?) 11:00 What are the short-term needs of our Western Commerical Staff? (Alan?) 11:30 Brief Overview of July 12 Rulings and discussion of the potential impacts on the West (Ray/Christi/Sarah? and Group) 12:30 RTO/ISO Status Update (in alphabetical order) CAISO (Sue) DSTAR (Dave) RTO West (Steve) 2:00 RTO Strategy discussion "How we move forward and how we should leverage the recent FERC July 12 rulings" (Group/Jim?) 3:30 Meetings, RTO's and WSCC - Ranking and Coverage coordination (Group) 4:30 Northwest OASIS "Enhancements" - Solicitation of Trader Comments (Dave) (Note, Alan, can you please ask Diana, Sean and Bill Williams III to see if they can schedule time to attend?) While developing this agenda from everyone's input I was thinking that NERC is beginning to assert more and more influence (good or bad) on the entire industry. I would like to know if our group feels it would be useful to invite either Charles Yeung or Andy Rodriquez to our meeting to overview NERC activities and or Electronic Scheduling? Also, if Steve Hall has any legal or contract issues he'd like to discuss during our meeting I'll be happy to add time for that. Again, as noted above this is a draft and as you can see I have un-democratically nominated (suggested) folks for leading various discussions. Any comments or confirmations of commitment to lead an agenda item would be greatly appreciated. Thanks for everyone's input. Kind Regards, Dave David F. Perrino Director, Government Affairs Enron Corporation 101 California Street, Suite 1950 San Francisco, CA 94111 Phone: 415.782.7801 Fax: 415.782.7854 Mobile: 415.794.8740

---------------------- Forwarded by Chris H Foster/HOU/ECT on 01/18/2001 01:17 PM --------------------------- Susan J Mara@ENRON 01/18/2001 11:36 AM 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, Donna Fulton/Corp/Enron@ENRON, Dorothy Youngblood/HOU/ECT@ECT, 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, Iris Waser/HOU/EES@EES, 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, Mike D Smith/HOU/EES@EES, Mike M Smith/HOU/EES@EES, [email protected], Neil Bresnan/HOU/EES@EES, Neil Hong/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Paula Warren/HOU/EES@EES, 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, Roger Yang/SFO/EES@EES, 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], 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, Mike D Smith/HOU/EES@EES, Donna Fulton/Corp/Enron@ENRON, [email protected], [email protected], Frank W Vickers/NA/Enron@Enron, Ren, Lazure/Western Region/The Bentley Company@Exchange, Jubran Whalan/HOU/EES@EES, Richard B Sanders/HOU/ECT@ECT, [email protected], [email protected], Kathryn Corbally/Corp/Enron@ENRON, [email protected], Bruno Gaillard/EU/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Tom Riley/Western Region/The Bentley Company@Exchange, Tamara Johnson/HOU/EES@EES, Gordon Savage/HOU/EES@EES cc: Subject: Latest Bill introduced in CA -- to set up Statewide CA Public Power agency Introduced today by Senator Burton, Majority leader, SB6-X ---------------------- Forwarded by Chris H Foster/HOU/ECT on 01/18/2001 01:17 PM --------------------------- Enron Capital & Trade Resources Corp. From: CAISO Market Operations - Hour Ahead <IMCEAEX-_O=CAISO_OU=CORPORATE_CN=SYSTEM_CN=MARKETOPSHOURAHEAD@caiso.com> 01/18/2001 11:46 AM To: "Market Status: Hour-Ahead/Real-Time" <IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=MKTSTATHOURAHEAD@cai so.com> cc: Subject: Coordinated Operation of Controllable devices for Path 23 > 1127 PST APS sent the following WSCCnet message: > APS has met all WSCC USF procedure requirements for Path 23 unscheduled > flow accommodation. All local controllable devices have been utilized. > APS now requests the use of the Coordinated Controllable devices. Please > check your schedules. ---------------------- Forwarded by Chris H Foster/HOU/ECT on 01/18/2001 01:17 PM --------------------------- Enron Capital & Trade Resources Corp. From: CRCommunications <[email protected]> 01/18/2001 11:59 AM To: ISO Market Participants <IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=ISO+20MARKET+20PARTI [email protected]> cc: Subject: RE: CAISO Market Update concerning Stage 3 emergency The Cal ISO will be restoring the 500 MW of firm curtailment for HE12. Client Relations California Independent System Operator > -----Original Message----- > From: CRCommunications > Sent: Thursday, January 18, 2001 10:54 AM > To: ISO Market Participants > Subject: CAISO Market Update concerning Stage 3 emergency > > At present, for HE10, ISO has implemented firm load interruption in > northern CA totaling 1000MW. > > ISO anticipates firm load interruption will be required for HE11 in > northern CA totaling 500MW. > > ISO request that all available energy resources be scheduled or bid into > the HA and RT markets. > > The need to interrupt firm load is due to the lack of resources in > northern CA decreased in northwest imports, and transmission constraints > from south to north on Path 15. > > California ISO Client Relations > ---------------------- Forwarded by Chris H Foster/HOU/ECT on 01/18/2001 01:17 PM --------------------------- Enron Capital & Trade Resources Corp. From: CAISO Market Operations - Hour Ahead <IMCEAEX-_O=CAISO_OU=CORPORATE_CN=SYSTEM_CN=MARKETOPSHOURAHEAD@caiso.com> 01/18/2001 12:29 PM To: "Market Status: Hour-Ahead/Real-Time" <IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=MKTSTATHOURAHEAD@cai so.com> cc: Subject: Terminate Coordinated Operation of Controllable devices for Path 15 > 1220 PST Path 15 actual flow is now within rated transfer capability. > CISO terminates request for Coordinated Operation of Controllable devices.

Interesting slide presentation on the state of powerplants, siting and natural gas in CA Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 05/17/2001 01:44 PM ----- "Julia Wright" <[email protected]> 05/17/2001 12:51 PM To: "Marilyn Hawes" <[email protected]>, "Kelly Boyd" <[email protected]>, "Karen Edson (E-mail)" <[email protected]>, "Julee Malinowski-Ball (E-mail)" <[email protected]>, "Joseph Alamo" <[email protected]>, "John White (E-mail)" <[email protected]>, "John Rozsa (E-mail)" <[email protected]>, "John Redding" <[email protected]>, "John Larrea (E-mail)" <[email protected]>, "John Fistolera" <[email protected]>, "John Fielder (E-mail)" <[email protected]>, "John Fielder (E-mail 2)" <[email protected]>, "John Bridges (E-mail)" <[email protected]>, "Joe Ronan" <[email protected]>, "Joe Lyons (E-mail)" <[email protected]>, "Jim Groninger (E-mail)" <[email protected]>, "Jerry Jordan (E-mail)" <[email protected]>, "Jeff Dasovich (E-mail)" <[email protected]>, "Jeannie Cain (E-mail)" <[email protected]>, "Jan Smutny-Jones (E-mail)" <[email protected]>, "James D. Boyd (E-mail)" <[email protected]>, "Jack Stewart (E-mail)" <[email protected]>, "Jack Gualco" <[email protected]>, "Jack Flanigan (E-mail)" <[email protected]>, "Greg Hardy (E-mail)" <[email protected]>, "Grace Davis" <[email protected]>, "Gordon McDonald" <[email protected]>, "Gary Schoonyan" <[email protected]>, "Gary Heath (E-mail)" <[email protected]>, "Evelyn Elsesser (E-mail)" <[email protected]>, "Eloy Garcia (E-mail)" <[email protected]>, "Ed Yates (E-mail)" <[email protected]>, "Doug Fernley" <[email protected]>, "Dorothy Rothrock (E-mail)" <[email protected]>, "Dominic DiMare" <[email protected]>, "Derek Naten" <[email protected]>, "Denny Samuel (E-mail)" <[email protected]>, "Dennis Price (E-mail)" <[email protected]>, "Denice Cazalet" <[email protected]>, "Delbert Fore (E-mail)" <[email protected]>, "Delaney Hunter (E-mail)" <[email protected]>, "Dan Carroll (E-mail)" <[email protected]>, "Craig Brown (E-mail)" <[email protected]>, "Cindy Howell" <[email protected]>, "Charles Bacchi" <[email protected]>, "Catherine Hackney (E-mail)" <[email protected]>, "Carolyn McIntyre (E-mail)" <[email protected]>, "Brian Kelly (E-mail)" <[email protected]>, "Bob Houston (E-mail)" <[email protected]>, "Bob Foster (E-mail)" <[email protected]>, "Bill Keese (E-mail)" <[email protected]>, "Bill Dombrowski (E-mail)" <[email protected]>, "Bill Booth (E-mail)" <[email protected]>, "Becky Kilbourne (E-mail)" <[email protected]>, "Barbara Barkovich (E-mail)" <[email protected]>, "Audra Hartmann (E-mail)" <[email protected]>, "Art Carter (E-mail)" <[email protected]>, "Anna Ferrera (E-mail)" <[email protected]>, "Ann Cohn (E-mail)" <[email protected]>, "Allan Lippincott (E-mail)" <[email protected]>, "Aaron Thomas (E-mail)" <[email protected]> cc: "Karen Jarrell (E-mail)" <[email protected]>, "Karen Koyano" <[email protected]>, "Karen Lindh" <[email protected]>, "Karen Mills (E-mail)" <[email protected]>, "Kari Harteloo" <[email protected]>, "Kassandra Gough (E-mail)" <[email protected]>, "Kathy Brandenburg" <[email protected]>, "Katie Kaplan" <[email protected]>, "Kay Grosulak" <[email protected]>, "Keith McCrea (E-mail)" <[email protected]>, "Kent G. Smith (E-mail)" <[email protected]>, "Kent Palmerton" <[email protected]>, "Kevin Lynch (E-mail 2)" <[email protected]>, "Kevin Lynch (E-mail)" <[email protected]>, "Kevin Smith (E-mail)" <[email protected]>, "Kip Lipper (E-mail)" <[email protected]>, "Lawrence Lingbloom (E-mail)" <[email protected]>, "Lenny Goldberg (E-mail)" <[email protected]>, "Louis Szablya (E-mail)" <[email protected]>, "Marc Joseph (E-mail)" <[email protected]>, "Mark Smith" <[email protected]>, "Marwan Masri (E-mail)" <[email protected]>, "Michael Alcantar (E-mail)" <[email protected]>, "Michael Florio (E-mail)" <[email protected]>, "Mike Kahl (E-mail)" <[email protected]>, "Mona Petrochko" <[email protected]>, "Pete Conaty (E-mail)" <[email protected]>, "Peter Bray (E-mail)" <[email protected]>, "Phil Nails (E-mail)" <[email protected]>, "Phil Stohr (E-mail)" <[email protected]>, "Ralph Cavanagh (E-mail)" <[email protected]>, "Randy Chinn" <[email protected]>, "Ray Thompson (E-mail)" <[email protected]>, "Richard Costigan III ESQ. (E-mail)" <[email protected]>, "Richard Counihan (E-mail)" <[email protected]>, "Richard Mesereau (E-mail)" <[email protected]>, "Robert Berry" <[email protected]>, "Robin Larson (E-mail)" <[email protected]>, "Scott Tomashefsky (E-mail)" <[email protected]>, "Sheryl Carter (E-mail)" <[email protected]>, "Steve Ponder (E-mail)" <[email protected]>, "Steven M. Pike (E-mail)" <[email protected]>, "Stu Wilson (E-mail)" <[email protected]>, "Sue Mara (E-mail)" <[email protected]>, "Susan Reeder" <[email protected]>, "Terry Winter (E-mail)" <[email protected]>, "Tim Schmelzer" <[email protected]>, "Tommy Ross (E-mail)" <[email protected]>, "Tony Braun" <[email protected]>, "Victoria Schaefer" <[email protected]> Subject: FW: Chairman Keese's presentation The attached presentation is for today's CESG meeting. Julia B. Wright Executive Assistant Smith, Kempton & Watts 980 Ninth Street, Suite 1560 Sacramento, CA 95814 (916)446-5508 (916)446-1499 Fax [email protected] - CEC Presentation without NOTES.ppt

Platts Energy Bulletin Welcome to Platts Energy Bulletin, a showcase of the top headlines posted on platts.com (http://www.platts.com) over the past 24 hours. To view this file in html, open the attachment at the bottom of this email. For Platts Premium customers go to www.einsight.com (http://www.einsight.com ) to pick up your Platts Energy Insight subscription. Your password and login remain the same. If you no longer wish to receive this email, instructions for unsubscribing can be found at the bottom of each issue. We welcome your feedback - send your comments to [email protected] Jan 25, 2002 What's New on platts.com? Platts Enron Report: Read about the implications of Enron's bankruptcy on the financial and energy communities. (http://www.platts.com/features/enron/index.shtml) Bandwidth Update: Ambient and Southern Telecom to develop and test power line communications system. (http://www.platts.com/bandwidth/index.shtml) Futures Round-up NYMEX: Crude to open higher despite lack of news NYMEX March crude oil is called to open 15 cts higher at $19.85/bbl Friday. March Brent is called to open 17 cts higher at $19.31/bbl. February heating oil is called to open 11 pts higher at 53.50 cts/gal and February unleaded gasoline is called to open 40 pts higher at 57.25 cts/gal. IPE Brent Focus: Technical buying pushes IPE Brent crude higher Friday Front-month March gapped higher in ETS electronic trading early on, opening at $19.35/bbl, up from Thursday's high of $19.25/bbl. Gains were consolidated in open outcry business and at 1100 GMT the contract stood at $19.49/bbl, 36 cts higher than the previous day's close. April Brent had climbed 32 cts to trade at $19.61/bbl at the same time. News Round-up Click on the headlines below or paste the URLs provided in your internet browser to see the full story. ADVERTISEMENT: Platts Global Energy Jobs Board and Resume Bank: Created in partnership with the Energy Jobs Network, the Jobs Board gives you access to a pool of job seekers and open positions across the energy industry. It's free for all job seekers, and there is a range of packages for employers posting jobs. (http://www.energyjobsnetwork.com/home.asp?code=platts) ENERGY INSIGHT: (For Premium Customers) Liquefied natural gas proponents remain bullish In the 1970s-early 1980s, soaring natural gas prices and the faulty belief the United States would run out of natural gas within a decade led to the construction of four liquefied natural gas terminals. (http://www.einsight.com) OIL: Devon Energy completes $3.15-bil acquisition of Mitchell Devon Energy Jan 24 said it had completed its $3.15-bil acquisition of Mitchell Energy & Development after shareholders of both companies approved the deal in separate meetings earlier in the day. (http://www.platts.com/archives.shtml#58130) NATURAL GAS: Philippines mulls sale of PNOC's stake in Malampaya gas Enron late Jan 24 said it would continue to pursue a lawsuit against Dynegy seeking $10-bil in damages arising out of Dynegy's termination of its merger agreement with Enron, and amend that complaint to add an additional damage claim alleging that Dynegy's exercise of the Northern Natural Gas Pipeline option was wrongful. (http://www.platts.com/archives.shtml#57291) PETROCHEMICALS: ExxonMobil opens $2-bil chemical complex in Singapore ExxonMobil Chemical officially opened its $2-bil petrochemical complex in Singapore, known as the Singapore Chemical Plant on Friday. (http://www.platts.com/archives.shtml#58153) ADVERTISEMENT: Platts Buyers' Guide: One online place for the electric power industry to search, compare and find the products and services you need. Click to add your listing. (http://www.mediabrains.com/client/platts/bg1/search.asp) ELECTRIC POWER: Sempra reviewing Enron assets for possible purchase Sempra Energy has been looking at "hard assets" owned by bankrupt Enron, including its natural gas pipelines, energy services contracts and trading operations, but has yet to make any final decision, Stephen Baum, Sempra chairman, president and chief executive officer, said Jan 24. (http://www.platts.com/archives.shtml#57305) NUCLEAR: Las Vegas, county ask court to stop Yucca Mt project Las Vegas and Clark County, Nevada asked a federal court for help Jan 24 in stopping DOE's repository project at Yucca Mountain, 90 miles outside Las Vegas. (http://www.platts.com/archives.shtml#58133) COAL: Egyptian firm seeks US Coal Egyptian company Al Nasr Co for Coke & Chemicals is asking US producers to prequalify to supply metallurgical coal to the company over a four-year period. (http://www.platts.com/archives.shtml#58141) To see the past five day's headlines posted on platts.com go to Platts archives (http://www.platts.com/archives.shtml) Want more information on Platts products? Browse the Platts Infostore at http://www.platts.com/mhe_infostore/cgi-bin/infostore. You can also email Platts sales team at [email protected] or check for the details of your nearest sales representative in our list of Platts offices at http://www.platts.com/about/offices.shtml. For information on how to advertise on the Platts Energy Bulletin or on platts.com contact [email protected]. To email an editor, click on http://www.platts.com/oil/editorialquestions.shtml?EnergyBulletin To unsubscribe from the Energy Bulletin, please send an email to [email protected] and type the words UNSUBSCRIBE PLATTS in the body of your message. You should receive a response telling you that you have been unsubscribed. If you are experiencing problems, email us at [email protected].

It looks like the Brazilian tax situation will be even more problematic than in Argentina. ---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on 01/05/99 09:30 AM --------------------------- Scott Neal 12/30/98 05:02 PM To: Don Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Scott Porter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, William O Butler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Re: Brazilian Transaction Taxes FYI. ---------------------- Forwarded by Scott Neal/ENRON_DEVELOPMENT on 12/30/98 02:01 PM --------------------------- Beth Rosen 12/30/98 01:07 PM To: Scott Neal/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Jordan Mintz/HOU/ECT@ECT Subject: Re: Brazilian Transaction Taxes Scott: I have provided some comments below in response to your questions regarding Brazil trading activities. About a year ago, Jordan and I went with Brent and others to Sao Paulo to do some preliminary due diligence on Brazil trading issues. At that time there were a number of open issues regarding the legal, regulatory and commercial aspects of conducting trading activities in Brazil that would effect our planning. For example, it was not known whether a Brazil trading office would be considered a financial institution, an important characterization as financial institutions are subject to a different tax regime. In any event, the following should give you a flavor of the regime. I am also sending you under separate cover some general information regarding doing business in brazil: Brazil imposes two gross receipts taxes called Pis and Cofins. The Pis rate is 0.65% and the Cofins rates has just increased from 2% to 3% effective February 1, 1999. Pis/Cofins operate like the Argentine turnover taxes except that Pis/Cofins are federal taxes as compared to Argentina's turnover taxes which are assessed at the provincial level. Strictly speaking, Brazil law considers amounts paid for Pis/Cofins to be "social contributions" and not taxes as the funds are earmarked for certain social welfare programs. As a result, the Pis/Cofins are considered "sacred" and except as outlined below, there are no exemptions or opportunities to avoid payment of Pis/Cofins. There are only two exceptions to the payment of Pis/Cofins. First, export sales by Brazilian companies are not subject to gross receipts taxes. The second exemption is that charitable foundations are exempt from Pis and Cofins. Prior to Brazil's recently introduced tax reform package, financial institutions paid a higher rate of income tax but were exempt from the Cofins tax (Pis was still due). Now, financial institutions must pay Cofins. To mitigate the cascading effect of Pis/Cofins in some of our power project under development, we have looked at, but not implemented, forming consortiums with some of our suppliers (gas suppliers). Under this scenario, a portion of the energy payment is allocated to each supplier who is taxable only on the portion of the tariff to which he contributed. A consortium is a legal arrangement that applies to a specific transaction and specific customers. It may not be compatible in the context of a trading office. Brazil has a value added tax regime which is administered by each state. There can be mismatches between VAT paid and collected depending on the particular jurisdiction in which a commodity is bought and resold. The VAT regimes differs for gas and power trading so we would have to analyze each specific transaction in order to evaluation whether VAT would represent a cost to the Brazil tradeco. I am sending to you some information provided by Arthur Andersen which describes the VAT on sales and re-sales of gas and electricity under several scenarios, I am also checking on whether Brazil imposes any energy specific taxes and will follow up you separately on this issue. Regards and all the best in 1999. Beth To: Beth Rosen/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Brazilan Transaction Taxes Beth: I think we have a pretty good handle on these issues with respect to the Pis/Cofins--not pretty and, in fact, a worse scenario than we face in Argentina. Would you communicate to Scott. Thanks. Jordan PS-I must have just missed you today to run-I'm so sorry I couldn't make it, but it was for a very valid reason. ---------------------- Forwarded by Jordan Mintz/HOU/ECT on 12/16/98 12:15 PM --------------------------- From: Scott Neal AT ENRON_DEVELOPMENT@CCMAIL on 12/16/98 02:38 PM To: Jordan Mintz@ECT, Beth Rosen AT ENRON_DEVELOPMENT@CCMAIL cc: Yao Apasu@ECT, "Don Black/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL, Scott Porter AT ENRON_DEVELOPMENT@CCMAIL, Brett R Wiggs AT ENRON_DEVELOPMENT@CCMAIL, "Steve Pearlman/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL, Randy Young AT ENRON_DEVELOPMENT@CCMAIL, Brent Hendry AT ENRON_DEVELOPMENT@CCMAIL Subject: Brazilan Transaction Taxes Can you give us a briefing on Brazilian transaction taxes? My initial feeling is that we are going face tax issues similar to those we are dealing with in Argentina. We have several deal makers in Sao Paulo that have begun contact potential customers. I think it is important to start the education process now for all of us so that we can 1) determine ways to structure deals to limit tax liability and 2) form a strategy to lobby for changes/reform/exemption. Some initial questions: How are marketing/trading companies activities treated? Are there any energy specific taxes? If turnover/gross receipt tax are applicable, is there any special treatment for trading companies? Are transaction taxes federal, state, or local in nature? Thanks for your help.

This is not public information yet but, assuming Tim gives his final okay, a guy will be joining the trading floor to develop a renewable market including a portfolio, trading, an index, auction, an Enron Online product, etc. He wants to formulate a well developed regulatory policy approach and has agreed to draft up some bullet points for our use and has had preliminary meetings with various groups in Houston including Jeff Keeler. He also wants to enlist the assistance of government affairs. I suggested he do a presentation at our next government affairs meeting. Are we still having people do presentations at our meetings? Could we fit him in? Ginger Dernehl@ENRON 01/25/2001 10:50 AM To: [email protected], Alan Comnes/PDX/ECT@ECT, Alberto Levy/SA/Enron@Enron, Aleck Dadson/TOR/ECT@ECT, Allison Navin/Corp/Enron@ENRON, Amy Fabian/Corp/Enron@ENRON, Barbara A Hueter/NA/Enron@Enron, Bernadette Hawkins/Corp/Enron@ENRON, Bill Moore/NA/Enron@Enron, [email protected], Carlos Gustavo Azevedo/SA/Enron@Enron, Carmen Perez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Carolyn Cooney/Corp/Enron@ENRON, Charles Yeung/HOU/ECT@ECT, Chauncey Hood/NA/Enron@ENRON, Chris Long/Corp/Enron@ENRON, Christi L Nicolay/HOU/ECT@ECT, Cynthia Sandherr/Corp/Enron@ENRON, Damon Harvey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dan Staines/HOU/ECT@ECT, Daniel Allegretti/NA/Enron@Enron, Dave Mangskau/Corp/Enron@ENRON, Donald Lassere/NA/Enron@Enron, Donna Fulton/Corp/Enron@ENRON, Eidy Catala/TRANSREDES@TRANSREDES, Elizabeth Linnell/NA/Enron@Enron, Eric Benson/NA/Enron@ENRON, Frank Rishe/NA/Enron@Enron, Geriann Warner/NA/Enron@Enron, Ginger Dernehl/NA/Enron@Enron, Gisele S Braz/SA/Enron@Enron, Gloria Ogenyi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Guillermo Canovas/SA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Howard Fromer/NA/Enron@Enron, [email protected], James D Steffes/NA/Enron@Enron, Janine Migden/NA/Enron@Enron, Javier Pantoja/TRANSREDES@TRANSREDES, Jean R Dressler/NA/Enron@Enron, Jean Ryall/NA/Enron@ENRON, Jeff Brown/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, Jeffrey Keeler/Corp/Enron@ENRON, Joao Paixao/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joe Allen/NA/Enron@Enron, Joe Connor/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Joe Hillings/Corp/Enron@ENRON, Jose Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joseph Alamo/NA/Enron@Enron, Kathleen Sullivan/NA/Enron@ENRON, Kerry Stroup/NA/Enron@Enron, Kikumi Kishigami/NA/Enron@Enron, Kirsten Bellas/NA/Enron@Enron, Lara Leibman/NA/Enron@Enron, Laurie Knight/NA/Enron@Enron, Leslie Lawner/NA/Enron@Enron, Linda J Noske/HOU/ECT@ECT, Linda Robertson/NA/Enron@ENRON, Lindsay Meade/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Lisa Yoho/NA/Enron@Enron, Lora Sullivan/Corp/Enron@ENRON, Luiz Maurer/SA/Enron@Enron, Lysa Akin/PDX/ECT@ECT, Marchris Robinson/NA/Enron@Enron, Marcia A Linton/NA/Enron@Enron, Marcie Milner/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT, Maureen McVicker/NA/Enron@Enron, Melinda Pharms/HOU/ECT@ECT, Michelle Belzak/TOR/ECT@ECT, Mike Roan/ENRON@enronXgate, Mona L Petrochko/NA/Enron@Enron, Nancy Hetrick/NA/Enron@Enron, Patrick Keene/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Ray Alvarez/TRANSREDES@TRANSREDES, Rebecca W Cantrell/HOU/ECT@ECT, Ricardo Charvel/NA/Enron@Enron, Richard Ingersoll/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Robert Frank/NA/Enron@Enron, Robert Hemstock/CAL/ECT@ECT, Robert Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robin Kittel/NA/Enron@Enron, Ron McNamara/NA/Enron@Enron, Roy Boston/HOU/EES@EES, Rubena Buerger/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sandra McCubbin/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, Scott Bolton/Enron Communications@Enron Communications, Sergio Assad/SA/Enron@Enron, Stella Chan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stephen D Burns/Corp/Enron@ENRON, Steve Montovano/NA/Enron@Enron, Steve Walton/HOU/ECT@ECT, Steven J Kean/NA/Enron@Enron, Sue Nord/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Susan M Landwehr/NA/Enron@Enron, Terri Miller/NA/Enron@Enron, Thane Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tom Briggs/NA/Enron@Enron, Tom Chapman/HOU/ECT@ECT, Tom Delaney/Corp/Enron@ENRON, Tom Hoatson/NA/Enron@Enron, Tracy Cooper/Enron Communications@Enron Communications, Valeria Lima/SA/Enron@Enron, Vinio Floris/Corp/Enron@Enron, Xi Xi/Enron Communications@Enron Communications cc: Jeffrey Keeler/Corp/Enron@ENRON, Stacey Bolton/NA/Enron@Enron, Mary Schoen/NA/Enron@Enron, Miyung Buster/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Elizabeth Linnell/NA/Enron@Enron, Lynnette Barnes/NA/Enron@Enron, Stephanie McMurray/NA/Enron@Enron, Linda L Lawrence/NA/Enron@Enron, Earlene O'Connell/NA/Enron@Enron, Margo Reyna/NA/Enron@Enron, Gus Perez/Corp/Enron@Enron, Angela Wilson/NA/Enron@Enron, Sharonda Stephens/Corp/Enron@ENRON, Eric Benson/NA/Enron@ENRON, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gia Maisashvili/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James D Steffes/NA/Enron@Enron, Marcia A Linton/NA/Enron@Enron, Margaret Carson/Corp/Enron@ENRON, Joan Stransky/Corp/Enron@ENRON Subject: Government Affairs-The Americas: Department Meeting Dates My apologies in getting this information to everyone so late, but some of the dates are still a work in progress. Please see below: Government Affairs - The Americas Department Meeting Dates for Year 2001 Date: City/State Location: March 9 Houston, TX The Woodlands Conf. Center June????? September 6 Houston, TX The Woodlands Conf. Center December 7 Houston, TX Doubletree Hotel FYI - The December 7 date could change. I am trying to plan this meeting around the company party again. Thanks and feel free to call me if you have any questions. gngr 713-853-7751

SIVY ON STOCKS from CNNmoney.com October 19, 2001 ******************[ A D V E R T I S E M E N T ]**************** QUICK! If you won $25,000 CASH what would be on your "Best Of" list? Keep thinking because here's a chance to try to win the $25,000 Grand Prize. BONUS: See what else has been selected "Best Of" at money.com and try an issue of MONEY Magazine FREE! Click Here: http://www.money.com/bestof **************************************************************** The Tyco machine Today's most successful big growth conglomerate, Tyco continues to produce -- and confound the skeptics. By Michael Sivy Since the early 1990s, Tyco International has compiled a superb track record. Earnings, cash flow and book value have all increased at a compound rate of more than 17 percent annually. And recently, those growth rates have actually accelerated. Earnings could be up as much as 30 percent in the current fiscal year (which ends Sept. 30, 2002), and average 20 percent growth over the next five years. So what's not to like? Fact is, though, Tyco has been the target of ongoing criticism by analysts and journalists that has weighed down the stock for several years. Much of Tyco's growth has come from acquisitions, and skeptics keep charging that these acquisitions somehow inflate earnings (although no one ever seems able to demonstrate exactly how this inflation occurs). Criticism of Tyco's results always comes back to one of two charges -- either the company is using its overvalued stock to make deals that effectively buy earnings or it is taking advantage of overly flexible accounting laws to inflate its profits by hiding expenses in acquisition-related write-offs. I have never seen convincing arguments that either of these things was happening. (And neither did the SEC, when an analyst's negative report in 1999 prodded the commission to investigate Tyco's finances.) Instead, I think that Tyco's strategy is just as it appears. The company buys relatively inefficient businesses with good basic franchises and then restructures and cuts costs -- boosting total profits. In the past year alone, Tyco has acquired or agreed to acquire half a dozen companies. Businesses currently range from fire-protection systems and printed-circuit board manufacture to undersea cables and disposable medical supplies. Acquisition-based growth does carry obvious risks. There has to be a continuous supply of takeover candidates, the company has to be able to identify the promising ones and quickly boost profit margins after those businesses are acquired. But Tyco CEO Dennis Kozlowski, 54, has been demonstrably good at doing these things for a long time. In addition, Tyco's cash flow has continued to grow even in years when the share price was too depressed for the company to buy profits through stock-for-stock takeovers. With projected growth of 20 percent a year, Tyco [TYC] certainly looks cheap. At a current price of $58 a share, Tyco trades at less than 16 times earnings for the current fiscal year. It's true that to maintain the maximum rate of earnings growth, Tyco has to continue to make lots of acquisitions. What I consider more important, however, is the company's solid potential for internal growth. With a return on equity that has ranged between 15 and 20 percent, Tyco's existing businesses should be able to outpace the market's historical return of around 12 percent a year. That alone justifies a P/E higher than 16. The additional growth Tyco picks up from dealmaking is just a bonus. ### Read all of Michael's columns at: http://money.cnn.com/markets/sivy/ To subscribe or unsubscribe to Sivy on Stocks, go to: http://money.cnn.com/email/ -------------------------------------------------- SPECIAL OFFER - MONEY MAGAZINE PERSONAL FINANCE COACHING SYSTEM Tap the expertise of MONEY for your specific personal finance needs with the help of a one-to-one coach... To learn more and speak to a coaching consultant, call 1-800-748-4056 x5705, or visit our website at: http://money.cnn.com/services/coach/index.html ----------------------------------------------------------- CONTACT THE BIGGEST COMPANIES IN THE WORLD! Over 5,000 contact names in the OFFICIAL FORTUNE Databases. DOWNLOAD THEM NOW! http://www.fortune.com/sitelets/datastore/index.html?mn01 ----------------------------------------------------------- * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Special Internet Offer!!! 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Mike, Thanks for your message. You are on point as to my intent. From the discussion I had with Andy last week, there seems to be several similarities between the Metals business and industrial markets. I believe the blueprint that is forthcoming will provide more insight that will be helpful to you all. We would love to share this with you, and also discuss your system direction. There may be some opportunities for us to work together on the development. I would like to have a discussion to talk about next steps, and believe Andy is planning to initiate this after he returns from holiday. Let me know if you have some other ideas. I'm sorry that we didn't have a chance to get together last week while I was in London. My trip was very short, and I kept missing you when I went to your desk. I'll plan some time with you when I'm there next time. Mike Jordan 01/24/2001 07:51 AM To: Brenda F Herod/HOU/ECT@ECT cc: Sally Beck/HOU/ECT@ECT Subject: Re: Metals Brenda It strikes me that the planning documentation could be enormously useful to us in backtesting our existing processes and determining any potential overlaps Is there any obstacle to access to this information ? Enron Capital & Trade Resources Corp. From: Brenda F Herod 23/01/2001 23:40 To: Andrew Cornfield/LON/ECT@ECT cc: Mike Jordan/LON/ECT@ECT, Paul Wallace/LON/ECT@ECT, John Jacobsen/HOU/ECT@ECT, Roy Lipsett/HOU/ECT@ECT, Michael E Moscoso/HOU/ECT@ECT, Kristen J Hanson/HOU/ECT@ECT, Yvette G Connevey/Corp/Enron@ENRON, Jill Lafave/ENRON@enronXgate, Delmar Davis/ENRON@enronXgate, Daniel Hamilton/ENRON@enronXgate Subject: Re: Metals Andy, Thanks so much for your message. I had you on my "To Do" list today to follow-up from our conversation last week. I appreciate your responses, and will follow-up as needed. Just to recap EIM's current inititives. PriceWaterhouseCoopers (PWC) was engaged in 10/00 to develop a business plan for tactical and strategic solutions for the projected growth in the physical business. In 11/00, AA was engaged to develop a "Blueprint" of EIM major processes (Deal Execution, Deal Capture, Risk Management, Logistics, Settlements and Financial Reporting), down to level 2 processes. The initiatives have been combined into one team focused on delivering the "Blueprint", a gap analysis of Enron systems to business needs and recommended systems. A complete "roadmap" should be laid out with a 0-3months, 4-6months, 7-9 months and 10-12months timeline. The plan addresses tactical also. Our overall objective: Build an infrastructure (people, processes and systems) that is scalable and supports the trading business of EIM. The current industries are Forest Products and Steel. However, additional industries may be added. The targeted infrastructure would require little change to support new industries. The delieverable is expected by the end of 2/01. We'd be happy to visit with you all (video conference or Houston,....) to give you more information. Let me know how to proceed. Thanks again for your time. Since I wasn't able to attend the Controllers' Conference last 10/00, I'm glad I got to meet you last week. Stay in touch. Brenda To: Brenda F Herod/HOU/ECT@ECT cc: Mike Jordan/LON/ECT@ECT, Paul Wallace/LON/ECT@ECT Subject: Metals Brenda As discussed at our meeting last week there are a few areas of commonality between Enron Metals and EIM that should allow leverage off common goals. In particular I promised info on a few areas: Project Q assessment A lot of the issues raised in the report are particular to Enron Metals (being to do with interfaces with our AS400 ysstem) however high level issues which formed part of the decision to not develop this for Enron metals were: Q is over specified for metals. Traffic / logistics for metals is less complex than oil & coal. Metals process tends towards Buy>Store>Sell whereas for liquids the storage is not as prevelant Metals logistics typically involves trucks whereas liquids is ship/barge 2. Inventory Controls Again the reports produced here have been very specific to Enron Metals. Paul Wallace a manager in the co-ordination function is working extensively on developing the controls in this area. I would suggest that you contact Paul directly if you wish to discuss specific areas or inventory controls in general. 3. Funding of inventory We have a structured finance facility here in London. The deal is specific to Enron Metals markets in that it works by reference to LME prices as these are the base index for all the positions placed in the facility. If structured financing is sort for EIM then it would be appropriate to talk to either David Tregar (Metals Commercial) or Bill Appleby (Global Finance) as an intro to the issues faced. 4. Curve Management Process The markets in which our merchanting division trades are based on the LME curves but are linked to a large number of basis curves for quality and location. Given the vast number we have opted to break down the markets by brand group and port location. E.G. for Copper this means we have a grid with 5 brand groups and 3 sets of port groups (13 for europe, 7 for the US and 6 for the Far East). The maintaince & price testing of the grids is made manageable by the fact the premiums only need be entered for brand and port groups by the traders yet prices can be tested by reference to node points i.e. price of specific brand at a given location which can be checked to a market quote. 5. Re recruitment of paper traders I haven't been able to contact him but I recall that the brother of David Rosenblum, one of the metals traders in Chicago, is a trader of recylced paper. I'll keep you posted on long term system development plans here in London. I'd appreciate same for EIM. Regards Andy

Ron, Thanks for the note. Several comments/questions- It is not necessary to plan facilities for 750 MMcf/d and 1000 MMcf/d to meet the 16-hour day load. At the moment, we can only identify 540 MMcf/d potential demand for 16-hour day load. Can we avoid a fully looped line and still serve the 540 MMcf/d demand for 16-hour day load? If so, would there be additional capacity that we could sell to other markets based on 24-hour loads in the Phoenix area? I'll be out of town on Tues + Wed, returning on Thurs. Let's get together and agree the base case for project scope. I'll ask Susan Wadle to co-ordinate a meeting with you, Kevin, Ben, and myself. Eric -----Original Message----- From: Matthews, Ron Sent: Monday, March 11, 2002 1:46 PM To: Gadd, Eric Cc: Asante, Ben; Eisenstein, Arnold L.; Gadd, Eric; Hyatt, Kevin; Smith, Mike L.; Rosenberg, David E. Subject: RE: Sun Devil Cost Sheet No. Because of the problems that occurred with the swing loads, we had to go back to the fully looped line. Running steady state wasn't a problem but trying to meet peaks was with the 174.6 miles. Since Planning has been guessing at what the customer wants in the way of swing capability, TW needs to nail that part down so Planning can run a GOOD analysis. We can barely meet the 16-hour day load at 750 MMcf/d average day condition but can not at the 16-hour day at 1000 MMcf/d scenario even with fully looped pipe. We (Planning) can run a multitude of cases that may or may not work and still may not hit the one the customer needs). Let's get together to discuss again to make sure everyone is on the same page. Bits and pieces from separate groups can cause problems with the true scope of work. I would suggest you, Kevin, Ben, and myself to establish a project scope to be carried out from this day forward. Let me know what you think about having a meeting. Ron M. -----Original Message----- From: Gadd, Eric Sent: Friday, March 08, 2002 4:09 PM To: Matthews, Ron Subject: RE: Sun Devil Cost Sheet Aye, aye, sir. We're still running with the 174.6 mile case, right? -----Original Message----- From: Matthews, Ron Sent: Friday, March 08, 2002 3:21 PM To: Eisenstein, Arnold L.; Gadd, Eric; Hyatt, Kevin; Asante, Ben Cc: Smith, Mike L.; Rosenberg, David E. Subject: RE: Sun Devil Cost Sheet Eric, There are a multitude of cases run on this project over time and it's hard for everyone to pick the most current. Please refer any facility questions to Planning and Optimization so we can respond with the most current information. Arnold is right where the pipe lengths are but has the wrong story why. Ron M. -----Original Message----- From: Eisenstein, Arnold L. Sent: Friday, March 08, 2002 1:17 PM To: Gadd, Eric Cc: Smith, Mike L.; Rosenberg, David E.; Matthews, Ron Subject: RE: Sun Devil Cost Sheet The COMPLETE mainline loop from SJ tie-in to takeoff point between stations 1 and 2 was always about 222 miles. Then add 16.5 miles downstream of station 1 for pressure support and the total is 238.61. Some of the previous cases you have seen did not include FULL looping, starting the Phoenix lateral at Station 2 and relied on more compression. The Red Hawk lateral new length is based on starting at the end of the Panda Lateral to Red Hawk paralleling and existing line. Arnold Eisenstein tel: 713-345-3666 (new) fax: 713-646-7522 e-mail: [email protected] -----Original Message----- From: Gadd, Eric Sent: Friday, March 08, 2002 11:21 AM To: Eisenstein, Arnold L. Subject: FW: Sun Devil Cost Sheet Arnold, Why has the mainline estimate gone from 174.61 miles to 238.6 miles? -----Original Message----- From: Rosenberg, David E. Sent: Friday, March 08, 2002 11:04 AM To: Hyatt, Kevin; Centilli, James Cc: Gadd, Eric Subject: FW: Sun Devil Cost Sheet Not sure why they just sent it to me. At any rate, here is the estimate consistent with the scope in the Power Point presentation being prepared for Stan. I would say let me know what else I can do, but I'm getting ready for a command performance this afternoon with Horton and head off to spring break vacation with my wife and high school freshman tomorrow. I'll be back Monday week. Actually, Arnold or Mike Smith should be able to answer any questions you may have. (oops, I just noticed that the Red Hawk line is about 10 miles shorter here. Not sure what that is about. -----Original Message----- From: Thomas, Timothy Sent: Friday, March 08, 2002 7:49 AM To: Smith, Mike L. Cc: Martin, Jerry D.; Eisenstein, Arnold L.; Matthews, Ron; Rosenberg, David E. Subject: Sun Devil Cost Sheet Pursuant to a Thursday, March 7, 2002, ~1:00 PM meeting with Ron Matthews, Arnold Eisenstein, Mike Smith, George Davis and Tim Thomas, transmitted herewith is the cost file for the project scenario, route and pricing format as formulated during said meeting ..... << File: Scope Cost 030802 Rev 0.xls >> Estimated costs are based on the following parameters ..... 36" x 96.97 Miles BLFD C/S to SJCT Estimate / Benchmark of iDATE September 21, 2001, Revision 1 Standing Rock Compressor Station Estimate / Benchmark of iDATE September 25, 2001, Revision 0 36" x 238.61 Miles SJCT to Needles Estimate / Benchmark of iDATE September 21, 2001, Revision 1 36" TW Mainline Loop - 36" x 174.61 Miles Derived 238.61 Mile Estimate based on aforementioned $ / Inch-Mile 36" x 133.54 Miles Phoenix Lateral Estimate / Benchmark of iDATE September 21, 2001, Revision 1 36" x 35.29 Miles Panda Extension Estimate / Benchmark of iDATE September 21, 2001, Revision 0 30" x 17.25 Miles Red Hawk Pipeline Benchmark Estimate of iDATE February 28, 2002, Revision 2 Estimate Revised 03.07.02 - Revised from 16 Miles to 17.25 Miles Balance of Compressor Station Costs Cost Data per Arnold Eisenstein

See the attached Contract Status matrix. All of the proposed agreements in the top half of the matrix also have been blessed, as have the Secondary Agreements.. ----- Forwarded by Barton Clark/HOU/ECT on 02/22/2001 12:19 PM ----- Barton Clark 02/21/2001 08:48 PM To: [email protected], [email protected] cc: Subject: Stone and Webster/Black & Veatch/Other Development Agreements FYI, attached are the forms of design and engineering contracts for the Ft.Pierce project. The Technical Design Services Agreement will be cloned - one for the Facility improvements and one for the King Plant improvements, and the Black & Veatch agreement relates to design of the transmission upgrades. The two Technical Design Services Agreements ( with Stone and Webster ) will be amended and restated to be full blown Turbo Park compliant EPC contracts ( covering procurement and construction, as well as design ) with Stone and Webster ( assuming its estimate and delivery date are acceptable), at the time the project goes into Turbo Park. The Black & Veatch agreement will not be bifurcated, as Black & Veatch will not be the EPC contractor, but we will expect the EPC contractor for the transmission improvements to warrant the work. One issue we have is how to get Black & Veatch to give a Turbo Park compliant transmission improvements design warranty, but we may be able to get the EPC contractor to warrant the design and the improvements ( Turbo Park did not raise this issue, but it may in the future, so we need to be thinking about that ). The Black & Veatch agreement also may be assigned to FPUA, along with the transmission upgrades EPC contract, as FPUA will own the transmission improvements and supervise their construction. The reason for bifurcating the agreements is to allow work on "soft cost" items to proceed now - as required to keep the project on schedule - until we can close the deal with FPUA/FMPA and get into Turbo Park, where the "hard cost" procurement and construction expenditures can be made without putting the project on balance sheet. I'll forward the form Turbo Park EPC Contract under separate cover. Sorry about the late deliveries, but maybe you will be able to pick these up in the am. ----- Forwarded by Barton Clark/HOU/ECT on 02/21/2001 08:37 PM ----- Barton Clark 02/08/2001 04:43 PM To: David Fairley/HOU/ECT@ECT, Mathew Gimble/HOU/ECT@ECT, Bruce Golden/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Darrell Stovall/NA/Enron@Enron, George McCormick/HOU/ECT@ECT cc: Lisa Bills/Enron@EnronXGate, Catherine Clark/Enron@EnronXGate, Roseann Engeldorf/Corp/Enron@ENRON, Herman Manis/Corp/Enron@ENRON Subject: Stone and Webster/Black & Veatch/Other Development Agreements Attached are Turbo Park and accounting "approved" forms of the Technical Design Services Agreement between FPRP and Stone & Webster ( TDSA) and the Agreement for Professional Engineering Services between FPRP and Black & Veatch ( B&V Agreement). Each form has to now be fashioned to reflect the business deal/payment terms/etc. Note that the Scope of Work on the TDSA underwent substantial modification to conform with 97-10 requirements, and the attached draft Scope of Work only deals with the Facility ( as defined in the TDSA ), and not the "improvements" ( which term was included in the draft Tasking Letter from which the Scope of Work was fashioned).I assume we will need to "clone" this TDSA except for a different Scope of Work description to deal with such "improvements" other than the Facility ( ie, I assume these are the King Plant improvements). The TDSA is calculated to put as much of the Turbo Park-approved EPC in front of Stone & Webster at the earliest possible date, so that the amendment and restatement of the TDSA to make it a full blown Turbo Park EPC Contract will be more straightforward. Right now, it is contemplated FPRP would assign its interests as Construction Manager under the TDSA to ENA, and the TDSA would be concurrently amended and restated as set forth above, both at the time the FPRP goes into Phase II of Turbo Park. At the time FPRP goes into Phase I of Turbo Park, I believe the TDSA can remain an FPRP obligation ( like any other development agreement signed by a project entity that is subsequently transferred into Turbo Park). Since the TDSA now only involves soft cost expenditures, FPRP can sign it as soon as it is negotiated and agreed by Stone & Webster and before it goes into Phase I of Turbo Park. The B& V Agreement, which was modeled on Black & Veatch's agreement with FPUA, also can be signed prior to going into Phase I as soon as it is negotiated with Black & Veatch. Like the TDSA, there are commercial terms that need to be added. It was modeled on the FPUA Black & Veatch Agreement because that should speed negotiation with B & V on its terms, and we may want to assign the B & V Agreement to FPUA ( and they too would be comfortable with its terms). My understanding is that FPUA is supervising the transmission work and will be driving the design and engineering of the transmission facilities, so it may make sense for FPRP to assign the B & V Agreement to FPUA and simply retain the obligation to pay B & V ( up to a cap). I also have attached a revised version of the spreadsheet Mathew prepared listing FPRP contracts already entered into by FPRP ( the so-called secondary development agreements) and those proposed to be entered into before we go into Phase I of Turbo Park. Herman and Lisa, let me know which of the secondary agreements you have not previously reviewed ( those marked NO re your review ) that you need to review, and I will endeavor to furnish them to you. Let me know if you have any questions.

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 05/02/2000 01:57 PM --------------------------- Jim Dyer <[email protected]> on 05/02/2000 12:04:06 PM To: "'[email protected]'" <[email protected]> cc: Sheridan Titman <[email protected]> Subject: RE: Real Options Vince, If you take a cab, ask them to take you to the College of Business building at the corner of 21st and Speedway. The main entrance to the business school is on Speedway, across from the old gymnasium. Come in the main entrance, which has a large, glass structure, and you will be on the second floor. Go to your left and ride up the first set of escalators to the third floor. When you step off of the escalators, you'll be facing north and continue in that direction through two sets of glass doors into the northern side of the building. This is where most faculty offices are found. My office is 3.218, which is in the northwest corner of the building. If you have any problems, you should be able to ask directions from most anyone in the halls. I will look for you around 11:00 on Thursday, and will be happy to provide any other transportation that you need. Please let me know if you have any other questions. Jim -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Tuesday, May 02, 2000 9:23 AM To: [email protected] Cc: [email protected]; [email protected]; [email protected] Subject: RE: Real Options Jim, I can take a cab or get a rental car from the airport (thanks for your kind offer). I shall appreciate, however, if you could drop me off at the hotel before dinner. The time allocation for my speech is about right. I think I shall need about 90 minutes. Please let me know where we can meet on Thursday. I shall be at an off-site on Wednesday but you can reach me on my cell phone (713 410 5396) and by sending a cc message to my AOL address: [email protected]. I look forward to meeting you. Vince Jim Dyer <[email protected]> on 05/01/2000 01:42:44 PM To: "'[email protected]'" <[email protected]> cc: Sheridan Titman <[email protected]> Subject: RE: Real Options Vince, I could pick you up at the airport, or you could rent a car and come to campus. I have made tentative plans for us to go to lunch with some other faculty between 11:30 and 12:00, and then you would have some time to visit with Sheridan and perhaps with some other faculty members as well between lunch and my class. Sheridan and a guest speaker from his class, Suresh Sundaresan from Columbia, will be joining us for dinner. I could provide transportation to your hotel, and pick you up for dinner as well if you consider that to be the most convenient alternative. I will have a PC available in the classroom, with Office 2000 and windows NT. You could use powerpoint with no difficulty from that machine, if that's most convenient. You could simply email the presentation, and I would have it for you if you prefer. How much time would you like? I would like to reserve about 30 minutes at the end for a general discussion of issues related to real options, and about 30 minutes at the beginning of class for some remarks regarding the final assignment and a class evaluation by the students (which is required for all classes). At some point, we should take a brief break, so that would leave approximately 1.5 to 2 hours for your presentation if you would like that flexibility. Otherwise, I could take up the "slack". I look forward to seeing you on Thursday. Jim -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Friday, April 28, 2000 11:21 AM To: [email protected] Cc: [email protected]; [email protected] Subject: Re: Real Options Jim, I am scheduled to arrive in Austin on May 4 at 10:32 a.m. I shall be glad to join you and a group of your colleagues for lunch. I am flying back to Houston Friday morning and we can meet for dinner after the class. I shall have a Power Point presentation on my PC. I can also prepare a set of transparencies if this is more convenient for you. Vince Jim Dyer <[email protected]> on 04/27/2000 05:44:51 AM To: "'[email protected]'" <[email protected]> cc: Sheridan Titman <[email protected]> Subject: Real Options Vince, I am traveling at this time, attending a NSF meeting in Washington. However, I wanted to touch base regarding plans for your presentation in my class on real options next Thursday (May 4). As you recall, the class is from 3:30 to 6:30, and you could plan to take a significant part of that time for your presentation. Sheridan Titman has agreed to join us after his class at about 6:00 for a 30 minute "panel discussion" with the students on issues related to real options in practice.l I am not sure about your travel plans, but we would be happy to plan lunch on Thursday with several of my colleagues. I would also be delighted to be your host for dinner on Thursday night if that is convenient for you. I'll be back in my office on Monday, and will look forward to hearing from you. Jim James S. Dyer Fondren Centennial Chair in Business Department of Management Science and Information Systems CBA 5.202 The University of Texas at Austin Austin, Texas 78712-1175 Email: [email protected] Telephone: 512-471-5278 Fax: 512-471-0587

Airfare is 522.50 nonrefundable per person. Service fee is 30.00 per person nonrefundable. Please advise if ok to ticket and which credit card you will be using. Thanks, Sheryl Blackman Alliance Worldwide (formerly Travel Agency in the Park) (713) 650-8080 (713) 328-5157-direct [email protected] AGENT SB/SB BOOKING REF ZDRZ3P BUY/RICHARD EB 2801 ENRON CORP DATE: JAN 07 2002 SERVICE DATE FROM TO DEPART ARRIVE AMERICAN AIRLINES 15FEB HOUSTON TX MIAMI FL 636A 948A AA 925 N FRI G.BUSH INTERCO MIAMI INTL NON SMOKING TERMINAL A NON STOP RESERVATION CONFIRMED 2:12 DURATION AIRCRAFT: BOEING 727-200/200 ADVANCED SEAT 19C NO SMOKING CONFIRMED BUY/RICHARD(IDS AMERICAN AIRLINES 15FEB MIAMI FL ST THOMAS 1115A 257P AA 671 N FRI MIAMI INTL NON SMOKING NON STOP RESERVATION CONFIRMED 2:42 DURATION AIRCRAFT: BOEING 757-200/300 SEAT 25D NO SMOKING CONFIRMED BUY/RICHARD(IDS AMERICAN AIRLINES 23FEB ST THOMAS MIAMI FL 1000A 1156A AA 1488 N SAT MIAMI INTL NON SMOKING NON STOP RESERVATION CONFIRMED 2:56 DURATION AIRCRAFT: BOEING 757-200/300 SEAT 18C NO SMOKING CONFIRMED BUY/RICHARD(IDS SEATS WERE NOT AVAILABLE TOGETHER AMERICAN AIRLINES 23FEB MIAMI FL HOUSTON TX 145P 335P AA 990 N SAT MIAMI INTL G.BUSH INTERCO NON SMOKING TERMINAL A NON STOP RESERVATION CONFIRMED 2:50 DURATION AIRCRAFT: BOEING 727-200/200 ADVANCED SEAT 13C NO SMOKING CONFIRMED BUY/RICHARD(IDS MISCELLANEOUS 23JUN HOUSTON TX SUN ** THANK YOU FOR USING ALLIANCE ** RESERVATION NUMBER(S) AA/JLSVKU BUY/RICHARD S0C0011R1000 AA FREQUENT FLYER AAKYL3910 ASSISTANT: KAREN HEATHMAN 713 853-5982 ******************************************* INTL TVLRS: CARRY SOS WALLET CARD W/ENRON ASSISTANCE INFO CALL SOS MEDICAL EMERGENCY:IN U.S 800 523-6586 CALL SOS MEDICAL EMERGENCY:INTL 215 245-4707 (COLLECT) ********************************************* THIS IS A NON-REFUNDABLE FARE THAT REQUIRES TRAVEL ON THESE SPECIFIC DATES AND FLIGHTS. ANY CHANGES WILL RESULT IN A PENALTY AND/OR ADDITIONAL COLLECTION. ***************************************** PROOF OF U.S. CITIZENSHIP REQUIRED. CERTIFIED BIRTH CERTIFICATE W/PICTURE ID OR PASSPORT. ******************************************* ALL FARES ARE SUBJECT TO CHANGE UNTIL TICKETED/PURCHASED AGENT SB/SB BOOKING REF ZDRZ3P BUY/JANICE DATE: JAN 07 2002 SERVICE DATE FROM TO DEPART ARRIVE AMERICAN AIRLINES 15FEB HOUSTON TX MIAMI FL 636A 948A AA 925 N FRI G.BUSH INTERCO MIAMI INTL NON SMOKING TERMINAL A NON STOP RESERVATION CONFIRMED 2:12 DURATION AIRCRAFT: BOEING 727-200/200 ADVANCED SEAT 19A NO SMOKING CONFIRMED BUY/JANICE(IDS0 AMERICAN AIRLINES 15FEB MIAMI FL ST THOMAS 1115A 257P AA 671 N FRI MIAMI INTL NON SMOKING NON STOP RESERVATION CONFIRMED 2:42 DURATION AIRCRAFT: BOEING 757-200/300 SEAT 25F NO SMOKING CONFIRMED BUY/JANICE(IDS0 AMERICAN AIRLINES 23FEB ST THOMAS MIAMI FL 1000A 1156A AA 1488 N SAT MIAMI INTL NON SMOKING NON STOP RESERVATION CONFIRMED 2:56 DURATION AIRCRAFT: BOEING 757-200/300 SEAT 24F NO SMOKING CONFIRMED BUY/JANICE(IDS0 SEATS WERE NOT AVAILABLE TOGETHER AMERICAN AIRLINES 23FEB MIAMI FL HOUSTON TX 145P 335P AA 990 N SAT MIAMI INTL G.BUSH INTERCO NON SMOKING TERMINAL A NON STOP RESERVATION CONFIRMED 2:50 DURATION AIRCRAFT: BOEING 727-200/200 ADVANCED SEAT 13A NO SMOKING CONFIRMED BUY/JANICE(IDS0 RESERVATION NUMBER(S) AA/JLSVKU BUY/JANICE S0C0011R1000 THIS IS A NON-REFUNDABLE FARE THAT REQUIRES TRAVEL ON THESE SPECIFIC DATES AND FLIGHTS. ANY CHANGES WILL RESULT IN A PENALTY AND/OR ADDITIONAL COLLECTION. ****************************************** PROOF OF U.S. CITIZENSHIP REQUIRED. CERTIFIED BIRTH CERTIFICATE W/PICTURE ID OR PASSPORT. *******************************************

fyi ---------------------- Forwarded by Steven J Kean/HOU/EES on 12/17/99 08:32 AM --------------------------- Gary Fitch@ENRON on 12/16/99 09:55:24 AM To: Fred Rimington/NPNG/Enron@ENRON cc: Robert Hill/NPNG/Enron@ENRON, Larry DeRoin/NPNG/Enron@ENRON, Dave Rhodes/NPNG/Enron@ENRON (bcc: Steven J Kean/HOU/EES) Subject: Black Mesa Pipeline Co Cessna TU206G Pipeline Patrol Aircraft Fred, below is the report from my chief of Maintenance regarding the Black Mesa aircraft. In a nut shell, after reviewing this information, I feel it would be appropriate to contract for this service. The liabilities associated with it are not worth it when you consider it can be done, probably less than you are paying now, by a local provider and receive the same results. We would be more than happy to provide you with an approximate value for the aircraft and get you in touch with a broker to sell the TU206G. If you plan on continuing this operation with the Mesa owned aircraft, I suggest you put the responsibility in the hands of an aviation contractor who will be ultimately responsible to Mesa, not only with the upkeep of the aircraft, services/reports desired on patrol, but also the contracting of flight crews. If you desire, we will locate a contractor in Arizona to review the operation. I would expect the cost not to exceed $2,000-$3,000 at the most. Please call if you have any other questions or if you desire any additional help. ---------------------- Forwarded by Gary Fitch/HR/Corp/Enron on 12/16/99 09:12 AM --------------------------- Keith Jones 12/16/99 08:58 AM To: Gary Fitch/HR/Corp/Enron@Enron cc: Subject: Black Mesa Pipeline Co Cessna TU206G Pipeline Patrol Aircraft Gary, I spoke with a Mr. Sil Perla, pipeline patrol manager for Black Mesa Pipeline Co., Tele 520-774-5076. As follows: Aircraft: 1977 Cessna TU206G "Turbo Stationaire" Six place single engine high wing aircraft Hours: ACTT 3270 Engine Time since new 350 hrs PropTime since overhaul 1725.0 hrs (O/H date unknown) Insp Program: 50/100 hr inspections and Annual Inspections. Approximately two 100 hr inspections per year average. Last Annual inspection completed July 1999. 1) No maintenance performed "in-house". All maintenance performed at Arizona Aircraftsman Inc., Presscott, Arizona. This facility is a Certified Repair Sation and a Cessna factory authorized service center. 2) Maintenance is scheduled by the pilots. Mr. Perla doesn't appear to get envolved in the scheduling of maintenance. I spoke with Mr. John Aderholt at Arizona Aircraftsman, Inc. and he said that the pilots schedule and deliver the aircraft for maintenance. I asked how AD's and SB's were tracked and he seemed to feel that they weren't. The only time AD's/SB's were checked was when the aircraft was in the maintenance facility. Mr. Perla said he was not familiar with Airworthiness Directives (AD's) and more or less confirmed this. Mr. AderholtArizona Aircraftsman said the aircraft was in very good condition and that it was a low time aircraft. He said they did very thorough inspections and that Black Mesa usually didn't have a problem with any needed repairs. 3) The aircraft is used twice a month and flies a 546 mile trip at 300 feet above ground level, VFR day only. The aircraft averages 20 - 40 hours per month. Mr. Aderholt mentioned that the aircraft had flown 50 hours since the Annual inspection in July this year. They occasionally will have a passenger but he said this is rare. If someone wants to fly along the patrol the aircraft will stop and drop someone off at a plant, etc., but again this is rare. 4) He uses "rental pilots" for the patrols. Currently he only has two he uses. One has over 2000 multi/single time and the other has over 23000 hours in a little of everything. The main "go-to" pilot is a gentleman named Rick Olsen; he's the 2000 + hr guy. Mr. Perla said they both qualify for insurance purposes. 5) The pilots will review the maintenance logs for currency and accuracy and the repair invoices for discrepancies and action taken. Mr. Perla didn't seem to get envolved in this. I further confirmed this through Arizona Aircraftsman; that Mr. Perla definately does not get envolved in the maintenance of the aircraft. He leaves it strictly to the pilots. There are only two repetative AD's on the airplane, both due each 100 hrs. Summary: Mr. Perla said he has been with Black Mesa for two or three years and that he was fairly new at this. My impression is that he doesn't get envolved with the particulars of aviation and therefore doesn't really have much input as far as the actual operation and maintenance of the aircraft is concerned. The aircraft itself is probably in very good condition and is a very reliable workhorse that can endure its fair share of rough usage. Although the aircraft is a simple and durable single engine aircraft; and its operation is relatively easy. I believe it would be prudent to conduct a thorough review of the aircraft and records. And establish a stable base of operations that is familiar with the legalities, and safe operation of a single engine aircraft. In my opinion it appears that no one is paying attention to the details! A few items in particular are: a) The prop overhaul date is unkown. The factory recommends an overhaul each five years. b) No one is responsible for AD's and SB's. Apparently they do not go to Mr. Perla, but to some other office. c) Other details like ELT battery dates, operation in accordance with FAR's etc. may not be monitered adequately. d) Mr. Perla mentioned that he is going to have some interior work and avionics upgrades next year. Assuming his limited knowledge of aviation, what assurances do we have of a legal and safe installation.

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.

Molly, Thanks. Let's wait for Sandeep: he comes back Wednesday. Anshuman will work with him. Vince Enron North America Corp. From: Molly Magee 01/19/2001 06:08 PM To: Margaret Daffin/HOU/ECT@ECT cc: Vince J Kaminski/HOU/ECT@ECT Subject: Re: Transition to Research Group - An Update Once again, Margaret, we are in your debt. Vince, let's get together some time next week and see where you would like us to go with this... Molly Margaret Daffin 01/19/2001 03:27 PM To: Molly Magee/HOU/ECT@ECT cc: Vince J Kaminski/HOU/ECT@ECT Subject: Re: Transition to Research Group - An Update Molly: just to be sure that everyone understands, Anshuman cannot work in the US on a B1 visa - he can only come here for business meetings and training. We will have to get him the L1 visa in order for him to work in the US. Margaret Enron North America Corp. From: Molly Magee 01/19/2001 02:53 PM To: Vince J Kaminski/HOU/ECT@ECT cc: Margaret Daffin/HOU/ECT@ECT Subject: Re: Transition to Research Group - An Update Thank you so much for the information, Vince. I hope that you have a great weekend! Molly Vince J Kaminski 01/19/2001 02:39 PM To: Molly Magee/HOU/ECT@ECT cc: Vince J Kaminski/HOU/ECT@ECT Subject: Re: Transition to Research Group - An Update Molly, I shall ask Sandeep to do it when he comes back from India next week. I have just learned that Anshuman has B1 visa and he can start on a project as a person delegated by Dhabol Power Company to Houston. To be absolutely above the line, I would still arrange the L1 visa. Vince Enron North America Corp. From: Molly Magee 01/19/2001 10:44 AM To: Vince J Kaminski/HOU/ECT@ECT cc: Margaret Daffin/HOU/ECT@ECT Subject: Re: Transition to Research Group - An Update I agree that it makes sense to put the L1 in place. There are several things we will need from you in order to start the visa process. The first is a fairly detailed job description for Anshuman. Secondly, we also need to know whether or not he will be in a managerial position here and/or managing a project. If there is someone else in your group who can furnish this job description, just let me know and I will be happy to contact him/her. As for Sandeep, I have been told that he is a U.S. resident so there should be no problems with him. Margaret Daffin will be contacting him to be absolutely sure. Thanks, Molly Vince J Kaminski 01/19/2001 10:21 AM To: Molly Magee/HOU/ECT@ECT cc: Vince J Kaminski/HOU/ECT@ECT Subject: Re: Transition to Research Group - An Update Molly, Let's get L1 for Anshuman, just in case. I am sure he will stay here for a while once he comes. It is quite obvious Jeff Shankman will have to keep him longer, given the priority of the project. I assume there are no problems with Sandeep. Thanks. Vince Enron North America Corp. From: Molly Magee 01/19/2001 09:54 AM To: Vince J Kaminski/HOU/ECT@ECT cc: Margaret Daffin/HOU/ECT@ECT Subject: Re: Transition to Research Group - An Update Thank you for the update, Vince. I have been working with Margaret Daffin with regard to Anshuman's visa status. We will have to get an L1 visa in place before he can come to the United States, even in a temporary capacity. Do you want to move forward with that effort at this time, or is the possibility of him coming to the U.S. so remote that it wouldn't be worth the time and money right now? Molly Vince J Kaminski 01/19/2001 09:42 AM To: Molly Magee/HOU/ECT@ECT cc: Vince J Kaminski/HOU/ECT@ECT Subject: Transition to Research Group - An Update Molly, This is an update on Anshuman. Please, see below. It seems that his transfer is not an issue for the time being. We can put it on a back-burner till he gets here. Vince P.S. The relevant section. I also spoke about Anshuman, and there was resistance to his leaing for such a long time. However, I have agreement from folks here to send him to Houston for a shorter stint on DPC budget. I will try to finalize that before I leave. I will call you in the evening to just chat. ---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 01/19/2001 09:45 AM --------------------------- Sandeep Kohli@ENRON_DEVELOPMENT 01/19/2001 04:32 AM To: Vince J Kaminski@ECT cc: Subject: Transition to Research Group - An Update Vince, Just wanted to let you know that I had a meeting with Wade Cline (COO, Enron India), Neil McGregor (President, DPC), and Mohan Gurunath (CFO, DPC) today. Though I had already spoken to all of them earlier about my joining your group, today it became official, and all of them supported the move. I explained to them what we would be doing, and the results expected from the Henwood study. DPC would like to pay the costs for the study, and that was mentioned. There maybe some tax issues etc. that need to be cleared, and other related issues that I would like to discuss with you, so I will leave them till I get to Houston. I also spoke about Anshuman, and there was resistance to his leaing for such a long time. However, I have agreement from folks here to send him to Houston for a shorter stint on DPC budget. I will try to finalize that before I leave. I will call you in the evening to just chat. I am very thankful to you for giving the opportunity you have. Things here have deteriorated dramatically over the last few weeks. Morale is quite down due to many lay-offs. I am really looking forward to returning to Houston, and the family!! Regards, Sandeep.

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In order to continually develop and make improvements to the functionality of EnronOnline we are rolling out several changes tonight, which will be in effect on Monday August 20, 2001. Some of these changes will affect Stack Manager while others affect the Website. A summary of these changes is listed below. Stack Manager Changes Top of Stack limit orders - This feature will allow the price submitted via limit orders to be displayed on the website if their bid or offer is better than the trader's stack price. Stack Manger will list the price and the names of counterparties submitting such orders on the floated stack window. Orders will be queued by price and time stamp. When a counterparty trades on a " Top of Stack Entry" it will create back to back transactions; one between Enron and the counterparty submitting the order, and the other between Enron and the counterparty clicking on the website. In order to turn on this functionality select the " Allowed Top of Stack" option, in the Orders section of the product properties page. If regular limit order functionality is desired the "Allowed" option should be selected. Please note that this feature will be released in a disabled mode and will be turned on sometime next week after determining which business units want to roll this out. Restricted Top of Stack limit orders - This feature will allow the price submitted only by internal traders via limit orders to be displayed on the website if their bid or offer is better than the trader's stack price. Stack Manger will list price and the names of counterparties submitting such orders on the floated stack window. Orders will be queued by price and time stamp. When a counterparty trades on a " Top of Stack Entry" it will create back to back transactions one between Enron and the counterparty submitting the order, and the other between Enron and the counterparty clicking on the website. In order to turn on this functionality select the " allowed as Restricted Top of Stack" option, in the Orders section of the product properties page. If regular limit order functionality is desired the "Allowed" option should be selected. If a product has active orders against it you will not be able to select the "Restricted Top of Stack" feature. Advanced Filtering Ability on All Products Tab - Drop down filtering capability is now available for each field in the All Products tab in stack manager. In order to filter click on the arrow next to the field title. A drop down box with a list of attributes will appear. Highlight the attribute by which you wish to filter. To turn off the filter click on the arrow and select the " All" option from the drop down box. Website Changes New Submission Screen for Restricted Top of Stack Limit Orders - The submission screen for products that allow Top of Stack or Restricted Top of Stack limit orders is as follows. The submit button on the left makes a submission for a normal transaction, while the button on the right will submit as a limit order. In case of the Restricted Top of Stack limit orders only internal traders will see the new submission box. Price of Limit Orders Modify Limit Orders Customers now have the ability to modify the price of any active order. In order to do so highlight the order to be modified and use the plus or minus sign next to the price field on at the top of the "Today's Orders" section. The price will move up or down in the same increments as the tick size for that product. Once the price is at the desired level click the "Set" button and the price will be modified. Another way to modify the price on a limit order is to click on the price field on a particular limit order. You will see a box with plus, minus and set buttons that allow you to modify that order. Expiration time for Limit Orders Customers can now place limit orders with expiration times of up to 30 days. Currently they may place orders for only up to 12 hours. Float the Today's Orders Section You can now float the " Limit Order " section. In order to do so, right click in the "Today's Orders " section and select the float window option. In order to make the window " Stay On Top " right click on the floated window and select the stay on top option. Mid Market Client - Mid market originators will now have the ability to transact on behalf of their customers, while including their desired margin on the trade, on EnronOnline products. In order to do so Click on the bid or offer price, a customised submission window will appear. Select the counterparty for whom you wish to transact from a drop down list , enter the desired customer price and margin and click submit. For example if a customer wants to buy Nymex Sep 01 at 3.36 and you wish to have a 1 cent margin, please enter 3.36 as the desired price and 0.01 as the margin. The system will trade the order when the EnronOnline offer for Nymex Sep 01 is at 3.35, book the trade at 3.36 and record the 0.01 origination amount. In order to be set up to use this functionality. Please call the EnronOnline Product Control Group. Changes to Website Passwords - As an added security measure, which has been requested by many customers, some new password rules have been instituted. First, the password cannot be equal to the login ID. Second, each user will be prompted to change his password every 90 days. These rules apply to all website passwords for both internal and external users. Please note Stack Manager changes will be available all traders as of Monday August 20, 2001. The changes to the website will be rolled out to a few internal users on Monday with the rest of the internal users being upgraded Monday night, and external users by the end of the week. Over the next couple of weeks all users will be prompted to change their website passwords. If you have any questions regarding these changes please contact me at 713-853-1787. Savita Puthigai <Embedded Paintbrush Picture>

Craig and Kim, As you know, I have obtained a 60 day trial subscription to Moody's RiskCalc. You wanted to know if it makes sense for Enron to purchase RiskCalc. Well, after plowing through their 100 page manual and sitting through today's 2-hour Moody's presentation, it is necessary for us to have information about Enron's counterparties to move to the next step with RiskCalc. We have obtained some information on Enron's European counterparties from our colleagues in the London office. We need for you and/or your colleagues in the Houston office to supply us with a list of Enron's North American counterparties. More specifically, to evaluate Moody's RiskCalc we will need the following financial inputs for Enron's North American (private firm) counterparties: Fiscal Year The prior twelve months of financial data are represented. Annual statements are usable as well as quarterly statements after summing the flow variables, such as cost of goods sold, net income, sales, and EBIT. The value should be a four-digit integer year without mention of the day or month such as 1999 or 2000. Forecasts until the year 2009 can be made. A constant rate of inflation is applied to future years using last year's (1999) inflation level. In general this 'estimation error' will not cause any great problems, as size affects default rates at very large scales (e.g., $10,000,000 vs. $1,000,000 makes a significant difference, $1,000,000 vs. $1,050,00 does not). Cash & Equivalents This measure of liquid assets includes cash and marketable securities. Inventory Inventories are taken directly from the balance sheet, in thousands dollars, without any alterations for accounting method (e.g., LIFO, FIFO, Average Cost). This item represents merchandise bought for resale and materials and supplies purchased for use in production of revenue. Specifically this would include purchase cost, sales cost, sales taxes, transportation costs, insurance costs, and storage costs. Current Assets This item primarily represents cash, inventories, accounts receivables, marketable securities, and other current assets. Total Assets Total Assets and every other variable are entered in thousands of dollars. For example, $15,500,000 should be entered as 15500. Specifically, total assets are the sum of current assets plus net property, plant, and equipment plus other noncurrent assets (including intangible assets, deferred items, and investments and advances). Leave previous year's total assets blank for Australian companies. Current Liabilities Liabilities are positive values. Included in current liabilities are short-term debt, accounts payable, and other current liabilities. Total Liabilities This balance sheet account, total liabilities, is a positive number representing the sum of current liabilities plus long-term debt plus other noncurrent liabilities (including deferred taxes, investment tax credit, and minority interest). Retained Earnings Retained Earnings, a historical measure of performance, is the cumulative earnings of the company less total dividend distributions to shareholders. Typically, it is the prior year's retained earnings plus net income less distributions. Retained earnings are generally positive. Some firms with low credit quality will have negative retained earnings. Leave this field blank for Australian companies. Sales This item consists of the industry segment's gross sales (the amount of actual billings to customers for regular sales completed during the period) reduced by cash discounts, trade discounts, and returned sales and allowances for which credit is given to customers. Cost of Goods Sold Entered in thousands of dollars, this value is generally a positive number less than sales. It represents all costs directly allocated by the company to production, such as material, labor, and overhead. Not fixed overhead or items that would be included in Selling, General, and Administrative Expenses. Leave this field blank for Australian companies. EBIT Earning before interest expense is operating income after depreciation. It can be positive or negative but is usually greater then net income. Interest Expense This item represents the periodic expense to the company of securing short- and long-term debt. Typically, we expect this charge to be approximately the prevailing interest rate times the total liabilities. One measure of computing this is: Interest Expense = 0.07 * total liabilities. Net Income This item represents the income (or loss) reported by a company after expenses and losses have been subtracted from all revenues and gains for the fiscal period including extraordinary items and discontinued operations. A loss is represented by a negative sign. For example, a $5,000,000 loss would be entered as -5000. Leave previous year's net income blank for Australian companies. Extraordinary Items Positive or negative, this item represents unusual items that sometimes appear on the income statement. The items are designated by the company as extraordinary and presented after net income from continuing operations and discontinued operations. These items include extraordinary gains/losses, income (loss) from discontinued operations, and cumulative affect of accounting changes. Expenses are entered as negative values, gains as positive values. Leave previous year's extraordinary items blank for Australian companies. Country This model is calibrated for the United States, Canada, and Australia. We look forward to receiving this information for Enron's private firm North American counterparties so that we can move on to the next step with the evaluation of RiskCalc. Thanks, Iris

On the Level >On the Level: Level 3 Is Fully Funded. Right >By Brett D. Fromson >Chief Markets Writer >2/27/01 6:47 PM ET >URL: < http://www.thestreet.com/p/comment/onthelevel/1322230.html <http://www.thestreet.com/p/comment/onthelevel/1322230.html> > >Sometimes you just have to smile. >Take, for instance, tonight's King of Comedy, Level 3 >Communications(LVLT:Nasdaq), perhaps the most aggressive of the big, >money-losing telecommunications service providers floating on a sea of debt. > >Last year, the company lost $1.5 billion after taxes. There are questions >about its long-term financial health. And through it all, Level 3's >management continues to reassure investors that the company is "fully >funded" to get to break-even. Investors in this beaten-up stock naturally >find such assurances soothing. >They shouldn't. >Late last month, Level 3 filed to sell $3 billion in new debt securities -- >preferred and common stock to finance working capital and capital >expenditures. Companies that are fully funded do not typically serve notice >that they may need to borrow another $3 billion to pay bills and make the >investments required to stay in business. >Level 3 matters to investors for a number of reasons. First, because it >represents the entire New Era telco sector, which has seen more speculative >money thrown at it than any other high-tech sector in the past five years. >And that is saying something. If Level 3 runs into financial trouble, you >can bet a lot of other telco services companies will, too. And second, if a >slow-motion liquidity crisis hits the sector, it will not be good news for >related industries such as telecom equipment, semiconductor manufacturers >and contract manufacturers. As bad as the news has been for these industries >already, if telecom continues to roll over, the news could get worse. >(That's for all you folks looking for the bottom in tech.) >Level 3 is also worth paying attention to because there is a staggering >amount of money at risk. Here are a few relevant numbers: The company's >market capitalization is about $10 billion. It carries $7.3 billion in debt. >It has about $4 billion in cash that it plans to spend real soon. By >year-end, cumulative capital expenditures will reach $13 billion to $14 >billion, which is a lot of money for a company that went public only in >1998. By 2010, cumulative cap ex is expected to top $40 billion. Global >networks don't come cheap, you know. >You might reasonably ask, will Level 3 even get to 2003 -- let alone 2010? >The answer may hinge on whether the company is as fully funded as it claims >to be. >Last November, this column raised questions about Level 3's claims to be >fully funded. Company management was not pleased. >Robin Miller, Level 3's vice president for investor relations, wrote in: >"The fact is that Level 3 is one of the few emerging communications >companies to be fully funded. Level 3 is fully funded through free cash flow >break-even, at which point we are obviously self-funding." >Well, on Jan. 18 of this year, "fully funded" Level 3 filed its $3 billion >shelf offering. The stock lost $1.70 a share that day to close at $45.30. >Today, it closed at $26.56. >Today, we tried to reach Miller by phone to ask why a fully funded company >like Level 3 would file a $3 billion shelf offering. She was unavailable, >but Level 3's director of media relations, Paul Lonnegren, was. He said that >the $3 billion filing "doesn't necessarily mean that the company has any >intentions or plans to raise the money. ... It doesn't mean that we are >going to go back to the market for more cash. ... We are confident we can >get to cash-flow break-even without having to get more money from the >market. We project cash flow break-even by 2004. ... We did not file to >raise more money in case we are not fully funded. It was in case the markets >bounce back positively enough to make the cost of money attractive. Of >course, there are no signs of that happening." >No, there isn't any sign of the financial markets opening up for the likes >of Level 3 anytime soon. There was a brief moment in January when the junk >bond market eased a bit for high-risk borrowers. That was when Level 3 >filed. But today, if Level 3 wanted to raise money in the debt market, it >would have to pay north of 15% -- if it could get the money at all. >The idea that Level 3 can ease its debt payment problems by borrowing >another $3 billion at 15% to 20% is laughable. Such new debt would be more >expensive than existing debt. And according to the January registration >statement, the company already had "deficiencies of earnings to fixed >charges of $997 million for the nine months ended September 30, 2000." If >Level 3 adds more debt, its debt-service costs simply go up that much more. >Lehman Brothers' convertible debt analyst Ravi Suria wrote in a report last >year that "a company [is] fully-funded only if it has enough cash to last it >to a point when it becomes capable of paying at least the ... fixed charges >from internally generated operating cash flow or EBITDA." By this measure, >Level 3 is not fully funded. If the company were, it would not have filed to >borrow another $3 billion to fund operating expenses and the buildout of its >network. >Level 3 management can say anything it wants about the company being fully >funded. Investors should make up their own minds. >--------------------------------------------------------------------------- - >---- >Brett Fromson writes daily for TheStreet.com. In keeping with TSC's >editorial policy, he doesn't own or short individual stocks, although he >owns stock in TheStreet.com. He invites you to send your feedback to > [email protected] <mailto:[email protected]> > > - att1.htm

MEMORANDUM TO: Regulatory Affairs Committee Power Marketers Working Group FROM: Joe Hartsoe, Regulatory Affairs Committee Chair Bob Reilley, Power Marketers Working Group Chair Julie Simon, Vice President of Policy Mark Bennett, Senior Manager of Policy Erin Perrigo, Manager of Policy DATE: March 20, 2001 RE: Commission Actions to Increase Supply and Decrease Consumption in the Western United States--Key Points for EPSA Comments Due MARCH 30TH As we previously reported, on March 14, 2001, FERC announced certain actions to address the energy problems in California and other areas of the West in an Order Removing Obstacles to Increased Electric Generation and Natural Gas Supply in the Western United States and Requesting Comments on Further Actions to Increase Energy Supply and Decrease Energy Consumption. The following is an overview of the steps the Commission proposes to "immediately help increase supply from existing power sources and to provide regulatory incentives to build new electric and natural gas infrastructure." The Commission also invited comments on certain proposals. This memo includes a list of key points we intend to make in comments that are due by March 30th. Overview of Order The Order reflects a thorough review of "all of [FERC's] rate and facility certification authorities in the areas of electric energy, natural gas, hydroelectric and oil to determine how it can increase electric energy supply"; however, the Commission noted that its authority is "somewhat limited." While the Commission believes state regulators must assume the lead role due to their authority over siting of generation and transmission, as well as demand reduction measures, the Commission noted that the impact of California's energy shortage on the Western Interconnection "underscores the regional, interstate nature of the energy marketplace." Accordingly, it encouraged the formation of a single regional transmission organization for western markets. EPSA appreciates the Commission's effort to exercise the full extent of its authority to help ease the West's energy problems. Taken together, the Commission's proposed actions represent positive steps toward rational solutions to the difficult circumstances in the West. Most importantly, the Order highlights the importance of promoting infrastructure investment, including increased generation, transmission and natural gas pipeline facilities. The Commission's immediate actions, which will expire on December 31, 2001, include: -Requiring the California ISO and transmission owners within the WSCC to provide FERC with a list of short-term grid enhancements. -Extending and broadening waivers of operating and efficiency standards and fuel use requirements for qualifying facilities (QF). -Providing wholesale power sales from generation used primarily for backup and self-generation for businesses with prior notice waivers and market-based rate authorization. -Allowing wholesale and retail load reduction to be resold at wholesale market-based rates. The Commission seeks comment on several other proposals, including: -Rolling in new supply interconnection and upgrade costs. -Increasing the rate of return on equity for projects that significantly increase transmission on constrained and new routes in the near term. -10-year depreciation for short-term transmission projects, and 15-year depreciation for upgrades involving new rights of way that can be in service by November 1, 2002. -Use of the interconnection authority set forth in FPA o210(d) to help alleviate obstacles to electric supply reaching load. EPSA's Comments In its conclusion, the Commission stated that comments should be "concise and focused." Accordingly, we suggest that EPSA's comments focus on the following areas: ? Applaud the Commission's effort to increase supplies from QFs, but encourage it to provide relief from existing contracts by allowing QFs to sell to creditworthy parties. ? We understand that there are ongoing differences of opinion regarding the relative merits of an incremental versus a "rolled in" approach to interconnection and upgrade costs. Therefore, while we may lack a consensus on the question as a final policy position, we believe that the extreme circumstances surrounding the Order, and the urgent need to move power quickly into the Western system, make it wise to endorse FERC's instant recommendation. ? The Commission's proposed actions to create and enhance incentives relating to expanding and improving the transmission infrastructure through higher ROEs and accelerated depreciation schedules are positive steps. The Commission normally conditions such premiums on meaningful participation in regional transmission organizations. However, given the current situation and the immediate impact of any projects that might be entitled to the higher ROE, EPSA could support this proposal. ? Constraints on the gas infrastructure have a generally adverse impact on the energy supply system. Therefore, the Commission's proposed waivers of blanket certificates and rate incentives to expedite construction projects, are favorable developments. We will discuss the Order and EPSA's comments during tomorrow's Regulatory Affairs/Power Marketers' conference call. In addition, we have been asked to consider what type of short-term relief could be included in federal legislation. We will discuss this question as well. To access the call, dial 1-800-937-6563 and ask for the Julie Simon/EPSA call. In the meantime, if you have any questions, please contact either Julie Simon, [email protected] or Mark Bennett, [email protected] at (202 628-8200).

EnronOnline Trade Counts and Volume for May 11, 2001 EXTERNAL INTERNAL TOTAL COUNTRY COMMODITY CATEGORY COUNT QTY COUNT QTY COUNT QTY UNIT OF MEASURE Austria Power Physical 12 2,500 - - 12 2,500 MWh Belgium Natural Gas Physical 10 647,500 - - 10 647,500 MMBtu Canada Natural Gas Financial 15 6,943,500 2 634,000 17 7,577,500 MMBtu Canada Natural Gas Physical 301 25,259,342 2 600,000 303 25,859,342 MMBtu Canada Power Financial 3 168 - - 3 168 MWh (Canada) France Power Physical 4 27,482 - - 4 27,482 MWh Germany Coal Physical 1 9 - - 1 9 SECA Contract - Metric Tonnes Germany Power Physical 49 407,627 - - 49 407,627 MWh Netherlands Power Physical 1 14,892 - - 1 14,892 MWh Norway Power Financial 13 223,560 - - 13 223,560 MWh Singapore Oil Products Financial 1 15,000 - - 1 15,000 metric tonnes/month Sweden Power Financial 1 14,520 - - 1 14,520 MWh Switzerland Power Physical 20 5,131 - - 20 5,131 MWh United Kingdom Crude Financial - - 3 75,000 3 75,000 IPE Barrels United Kingdom LPG Financial 4 12,000 - - 4 12,000 mt United Kingdom Metals Financial 537 18,160 65 870 602 19,030 LME Registered Lot United Kingdom Natural Gas Financial 3 920,000 - - 3 920,000 MMBtu United Kingdom Natural Gas Physical NBP 75 9,908,550 2 455,000 77 10,363,550 MMBtu United Kingdom Oil Products Financial 1 30,000 - - 1 30,000 Barrel per month United Kingdom Oil Products Financial 5 25,000 - - 5 25,000 IPE mt United Kingdom Power Physical 19 1,518,720 - - 19 1,518,720 MWh United Kingdom Sea Freight Financial 1 15 - - 1 15 Sea Freight 9.2 Dys BPI Av 4 TC United Kingdom Sea Freight Financial 2 18 - - 2 18 Sea Freight lt Lot USA Crude Financial 168 7,600,000 50 2,245,000 218 9,845,000 Barrel USA Crude Financial Option 4 200,000 2 50,000 6 250,000 Barrel USA Crude Physical 8 663,000 - - 8 663,000 Barrel USA Gas Pipeline Capacity Physical 2 51,000 - - 2 51,000 MMBtu USA LPG Financial 8 225,000 - - 8 225,000 Gallon USA LPG Physical 1 15,000 - - 1 15,000 Gallon USA Metals Physical 2 880 - - 2 880 US Aluminum 5,000 lb Lot USA Natural Gas Financial 747 326,247,500 415 167,145,260 1,162 493,392,760 MMBtu USA Natural Gas Financial Option 7 6,500,000 3 3,000,000 10 9,500,000 MMBTU USA Natural Gas Physical 1,775 35,391,876 37 1,108,287 1,812 36,500,163 MMBtu USA Oil Products Financial 17 487,024 2 477 19 487,501 Barrel USA Paper Physical 2 32 - - 2 32 Short Tons (+/- 5%) USA Power Financial 33 79,686 5 6,266 38 85,952 MWh USA Power Physical 413 3,626,976 97 1,303,910 510 4,930,886 MWh USA Rate and Currency Financial - - 1 2,500,000 1 2,500,000 EUR/1 USA Rate and Currency Financial - - 3 6,000,000 3 6,000,000 FX USD USA Rate and Currency Financial - - 3 1,280,000 3 1,280,000 USD/1 USA Weather Financial 2 4 - - 2 4 Cooling Degree Day Total 4,267 692 4,959

Do you find it odd (timing especially) that an LADWP press release includes a quote from the governor's office? Neutrogena and LADWP Brighten Energy Outlook With City's Largest Corporate Solar Power System; State and City Officials Encourage Corporate Sector to Use Solar Power LOS ANGELES--(BUSINESS WIRE)--July 12, 2001 via NewsEdge Corporation - Neutrogena Corporation, a Johnson &amp; Johnson company, and the Los Angeles Department of Water and Power announced today, the completion of a 200-kilowatt $1.4 million solar power system at the company's headquarters, located near LAX. The system was made possible through the LADWP Solar Incentive Program that substantially lowers the purchase price of such systems for the municipally owned utility's customers. The solar system covers 24,000 square feet of roof area and will help reduce the company's energy consumption by approximately 20 percent monthly. "This is the type of leadership the people of California need from the corporate sector to successfully meet the energy consumption demands in the State," said Dr. Woodrow Clark, senior policy analyst, energy and reliability for California Governor Gray Davis. "I commend the LADWP for their promotion of solar energy, and strongly encourage other companies to follow Neutrogena's lead in using solar power." Neutrogena received a $1 million Solar Incentive or rebate from LADWP. Its system utilizes Siemens Solar panels and was designed and installed by the PowerLight Corporation. "This new solar power system is an example of the innovative ways the City and local businesses are working together to conserve energy," said Los Angeles Mayor James Hahn. "Using solar power will lead to a cleaner environment in Los Angeles, and I urge other corporations to follow suit." "This is truly remarkable; a single company has installed a solar system that provides power equivalent to that used by 100 average size Los Angeles homes. And by doing so, it frees up that energy for use elsewhere. At a time when every kilowatt counts, this is a major breakthrough," said Ruth Galanter, chair of the Los Angeles City Council's Commerce, Energy and Natural Resources Committee. Neutrogena headquarters is located in Councilmember Galanter's district. "Being a good corporate citizen is very important to Neutrogena and Johnson &amp; Johnson," said Michael McNamara, president of Neutrogena Corporation, "and this is a very tangible representation of our commitment to bettering the cities where we work and live. And we're grateful to the LADWP, who brought this program to our attention and assisted us every step of the way." According to Angelina Galiteva, LADWP Director of Strategic Planning, "The Neutrogena system will eliminate more than 513,000 pounds of carbon dioxide (CO2) annually, which is the equivalent of taking 53 automobiles off Los Angeles streets. We can all breathe a little easier, thanks to LADWP customers such as Neutrogena." Through its Solar Power Program, LADWP offers its residential and commercial customers an Incentive payment or rebate of $3 or $5 per watt for solar electric systems, in order to make these systems more affordable. To date, LADWP has received Solar Incentive requests that total over $2.7 million dollars. The Department goal is to encourage the installation of 100,000 solar systems in Los Angeles by 2010, and to install up to 1.5 megawatts of power each year for the next five years. In addition to the customer incentive program, the LADWP is installing solar systems at 35 municipal buildings every year for the next five years. Most city library branches and many park facilities will receive the solar installations. About Neutrogena Corporation Neutrogena, a worldwide leader in premium, dermatologist recommended skin, hair and cosmetic products, has been providing consumers with health and beauty improvements for over 40 years. Headquartered in Los Angeles, the company is a subsidiary of Johnson &amp; Johnson, the world's most comprehensive and broadly based health care products company. About LADWP The Los Angeles Department of Water and Power, the nation's largest municipally owned utility serves more than 3.8 million people in Los Angeles within the city's 465 square mile area. LADWP was established almost 100 years ago to provide water and electric needs to the city's businesses and residents. The Solar program is part of LADWP's Green LA initiatives that include Green Power, Energy Efficiency, Electric Transportation, Cool Schools, New Technologies, Water Conservation and Recycling efforts. Further information about the Solar and other Green LA programs can be obtained by clicking onto www.GreenLA.com or calling 1-800 GreenLA. CONTACT: Los Angeles Department of Water and Power | Walter Zeisl, 213/367-1342 | 213/792-5521 (cell phone) | 213/367-3227 (after regular business hours) | or | Neutrogena Corporation | Ashley Dunn, 310/216-5243 _________________________________________________________ Individual.com is the #1 provider of free, individualized news and information to business people over the Internet. Visit us at http://www.individual.com to browse the largest free collection of business, financial, industry, trade, and company-specific news and information on the web. This news story was sent by Karen Denne through Individual.com. You will not receive email messages directly from Individual.com unless you register at http://www.individual.com. Get more headlines and stories like this delivered FREE to your desktop every business morning! Register at http://www.individual.com/welcome.shtml. Individual.com also brings you FREE news on your investments! Sign up at http://www.individual.com/welcome.shtml. ___________________________________________________________ Entire contents Copyright ? 1999-2000, Individual.com?, Inc., 8 New England Executive Park, Burlington, MA, 01803, USA

Here are my preliminary thoughts about Broadwing's likely responses to our claims, and how we might respond to them. I'd like to discuss these with you, Dave, sometime this week, as well as your thoughts about the likely course of the arguments. I'd also invite Brad and Ron to add to or modify my statements, below, if they are not accurate. Dave and Steve, now that we're in this thing, I want to hit as hard as we can, taking full advantage of the shock value of these truly awful facts, and do everything reasonably possible to obtain a preliminary injunction stopping Broadwing's construction, or at the very least ordering them to stop construction (in Wyoming, and, if possible, in Colorado) until they have executed and complied with a construction coordination agreement. Broadwing Arguments: 1. As to several cuts, EBS refused to even mark their line. Answer: True, as to the first two cuts only, and even in those cases Broadwing's contractor continued ripping us up when they should have stopped; it is their obligation to protect our system, no matter what we do. 2. EBS' line wasn't properly marked. The line weaves left and right, and was marked as if it were laid in a straight line. Answer: True, in some cases, but Broadwing's contractor was the same company that laid EBS' line only a few months earlier, and therefore knew the location of EBS' line. Also, Broadwing knows that the sloping and rocky terrain causes the plow to wander somewhat, and Broadwing knew, especially after the first few cuts, that it was too close to EBS' line. [Note to Dave: Should we have named our own locating service? We have discussed a claim against them, earlier, but I didn't think about whether they should have been named as a defendant. What do you think? It doesn't relate to the injunction, does it, but it does relate to the damage action.] 3. EBS didn't have enough inspectors out to protect its system. Answer: EBS did have inspectors nearby, though we cannot have a person with every plow at every minute. In some cases where our inspector told the Broadwing contractor to stop work because the EBS cable was in danger of imminent harm, Broadwing did not stop, and the cable was cut. So it isn't clear that more inspectors would have helped, since Broadwing ignored them anyway. 4. Some cuts must be expected, when a cable is being laid close to an existing cable. Answer: The number of Broadwing cuts (8 or 9, and growing!) is far and above the usual number that would be anticipated. Clearly Broadwing has been negligent in its disregard for EBS' existing facility. All Broadwing wants to do is the push through quickly. Its contractors clearly behave in a negligent manner. For example, when we hired Mears Construction in Texas, and they cut another company's cable, they stopped, and immediately examined the damage, contacted the cable's owner, and offered to repair the damage. When Mears was working for Broadwing in Wyoming, however, and Mears cut the EBS cable, Mears didn't contact EBS and kept on working, and even kept on damaging additional EBS facilities. 5. EBS' damages are only its actual cost to repair the cuts. Answer: No! first, there have been so many cuts that EBS must in some cases replace entire segments of cable (because too many splice repairs results in too much communications signal loss), which is very expensive ($275,000 per reel of cable). Also, EBS is close to lighting its system (i.e., carrying traffic); when that happens, EBS' damages will be consequential: lost profits, lost additional business, lost business reputation, etc. 6. Uinta County is the true culprit, since it forced us to be only 3' away from EBS' cable. Answer: It is true that the county's proximity requirement contributed to the problem. That requirement is bad engineering practice, but results from the county's over-arching desire to maximize right of way revenue at all costs, without regard to actual construction realities. Unfortunately, the county is immune. Broadwing, however, is still responsible for protecting existing facilities, and is clearly responsible for all damages that result. There are numerous construction measures that Broadwing could and should have taken, to reduct the risk of damaging the EBS line: for example, it should have dug periodic "potholes" to find out exactly where the line was, in order to avoid it. It could have dug trenches to lay the cable, wherever it was too close for plowing. In every case, Broadwing merely did what was easist and cheapest, without regard to EBS' line's security. This is not acceptable construction practice; it is instead the practice of a fly-by-night operation that does not demonstrate basic regard for others' property. 7. Broadwing is committed to avoiding any damage to EBS' facilities. Answer: That is completely untrue. While Broadwing has made numerous statements to EBS personnel which indicate that this is true, Broadwing's statements to EBS have repeatedly been proved to be either knowingly false statements or based on misunderstood inaccurate reports from its own field personnel. Broadwing refused to sign, or even to negotiate, a "construction coordination agreement" which EBS supplied to Broadwing, which is designed to promote communication and cooperation, and prevent further damage. (EBS signed such an agreement with AT&T, after EBS' contractor cut AT&T's cable.) EBS has exhausted all its options with Broadwing, and must have relief from the court. The timing of this hearing is critical, as EBS is about to light up its system, and cannot do so until the new cable is installed (to replace all the cut cable), and will suffer much greater damages once EBS traffic is interrupted. --Kenton

John does not want to do that in this memo. He is leaving that to a Houston-originated memo on EBS in Asia and Europe (we have someone for EBS here now, and are hiring for Singapore, in addition to what is being done today in Tokyo). thanks mcs Joseph P Hirl@ENRON 10/04/2001 08:29 To: Mark Schroeder/LON/ECT@ECT cc: Eric Shaw/LON/ECT@ECT, John Sherriff/LON/ECT@ECT, Michael R Brown/LON/ECT@ECT, Richard Shapiro/NA/Enron@ENRON, Steven J Kean/NA/Enron@ENRON Subject: Re: Enron Europe Governtal & Regulatory Affairs Organization Announcement Mark, How do you want to describe the coordination and oversight of EBS reg affairs resources in Japan and Asia? Joe Joseph P. Hirl Enron Japan Corp. 81 3 5219 4500 81 3 5219 4510 (Fax) www.enron.co.jp Mark Schroeder@ECT 04/10/2001 03:54 PM To: John Sherriff/LON/ECT@ECT cc: Eric Shaw/LON/ECT@ECT, Michael R Brown/LON/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Steven J Kean/NA/Enron@Enron, Joseph P Hirl/AP/ENRON@ENRON Subject: Re: Enron Europe Governtal & Regulatory Affairs Organization Announcement 1 I have left voice messages for Alfredo, Paul Dawson, and Paul Hennemeyer (but have not heard back from any of the three), and have spoken to Peter Styles and Doug Wodd, so we can go with whatever is agreed. 2 I have made a change as we discussed about geographic responsibility, given my conversation with you that I think it is a bit misleading to only show these people (in many areas) being responsible for "Power", when in fact they are responsible for "Gas", too. Doug is really responsible for gas as an adjunct to their local efforts, as well as a change to indicate, also as we discussed, that these responsibilites are flexible, in response to changing commercial priorities, as well as the need to support the other Wholesale businesses. mcs ---------------------- Forwarded by Mark Schroeder/LON/ECT on 10/04/2001 07:45 --------------------------- Richard Lewis 09/04/2001 19:17 To: John Sherriff/LON/ECT@ECT cc: Eric Shaw/LON/ECT@ECT, Joseph P Hirl/AP/ENRON@ENRON, Richard Shapiro/NA/Enron@Enron, Michael R Brown/LON/ECT@ECT, Mark Schroeder/LON/ECT@ECT Subject: Re: Enron Europe Governtal & Regulatory Affairs Organization Announcement Paul Dawson covers the coal group as well (any others, Mark?) . Perhaps these areas should be added. Richard John Sherriff 09/04/2001 18:40 To: Eric Shaw/LON/ECT@ECT, Richard Lewis/LON/ECT, Joseph P Hirl/AP/ENRON@ENRON, Richard Shapiro/NA/Enron@Enron, Michael R Brown/LON/ECT cc: Subject: Enron Europe Governtal & Regulatory Affairs Organization Announcement Richard Lewis, Eric Shaw, Joe Hirl, Rick Shapiro, Michael Brown Please review the attached draft org annoucement and send me your comments. Mark - please let me know once we have spoken to the five senior managers in your group as we do not want to send this out until either you, Michael or I have spoken to them about this structure. Draft After nearly five years in London, Mark Schroeder will be returning to the US on April 11th to join the North American Coal Business with responsibility for origination in the utility sector. Under Mark
,s leadership, his team has made significant contributions towards Enron Europe
,s
&first mover
8 advantage and its status as the leading new entrant in the liberalizing pan
)European energy markets. We wish him well in his new commercial role. With Mark
,s departure, the day-to-day management of the Government & Regulatory Affairs Department in Europe will rest with Peter Styles, Paul Dawson, Paul Hennemeyer, and Doug Wood. Nick O
,Day will continue in his current leadership capacity in Japan. Each of these five individuals and their groups will now jointly report to the business heads and to Rick Shapiro, in the Government Affairs team in Houston. Rick Shapiro will continue to manage Government Affairs for the Americas. While the team members responsibilities will vary from time-to-time in response to shifting commercial priorities, as well as the need to support other Enron Wholesale Services' business units from time-to-time, the general areas of responsibility will be as follows: Peter Styles, based in Brussels, will continue to have responsibilty for our EU and Netherlands advocacy. Paul Hennemeyer will lead efforts in the German speaking countries (Germany, Austria, Switzerland) as well as France and Belgium. Peter and Paul will report to Eric Shaw. While secunded to the commercial team in France, Philip Davies will address Nordic market issues on an ad hoc basis and also report to Paul on these issues. Paul Dawson will lead our UK, Spain and Italian power regulatory efforts as well as the gas regulatory work in the UK. Doug Wood will support the Continental Gas team and the Central and Southeastern Europe Origination efforts, while also addressing the UK Climate Change Levy. Doug's role in gas will continue to be to supplement, and not to supplant, the efforts of each of the team members' geographic responsibilities noted on the organisation chart. Paul and Doug will report to Richard Lewis locally. Nick O
,Day will also continue to report to Joe Hirl in Japan. Other regulatory support provided by Mark Schroder will be addressed in another organizational announcement that will be sent out from Governmental Affairs in Houston. Attached is the revised organization chart that now reflects the Governmental & Regulatory Affairs organization in Enron Europe. John Sherriff & Michael Brown

Attached please find a listing of personnel assignments for Government Affairs support for ENA. Please call me if there are any questions. Jim ---------------------- Forwarded by James D Steffes/NA/Enron on 05/22/2001 05:59 PM --------------------------- Linda J Noske@ECT 05/22/2001 04:14 PM To: James D Steffes/NA/Enron@Enron cc: Subject: Government Affairs Support for ENA ---------------------- Forwarded by Linda J Noske/HOU/ECT on 22/05/2001 04:13 PM --------------------------- Linda J Noske 22/05/2001 01:07 PM To: Alan Comnes/PDX/ECT, Aleck Dadson/TOR/ECT@ECT, Allison Navin/Corp/Enron@ENRON, Amr Ibrahim/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Barbara A Hueter/NA/Enron@Enron, Bernadette Hawkins/Corp/Enron@ENRON, [email protected], Bill Moore/NA/Enron@Enron, Carin Nersesian/NA/Enron@Enron, Carmen Perez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Carolyn Cooney/Corp/Enron@ENRON, Charles Yeung/HOU/ECT@ECT, Chauncey Hood/NA/Enron@ENRON, Chris Long/Corp/Enron@ENRON, Christi L Nicolay/HOU/ECT@ECT, Dan Staines/HOU/ECT@ECT, Daniel Allegretti/NA/Enron@Enron, Dave Mangskau/Corp/Enron@ENRON, Dave Perrino/SF/ECT@ECT, Donald Lassere/NA/Enron@Enron, Donna Fulton/Corp/Enron@ENRON, Elizabeth Linnell/NA/Enron@Enron, Eric Benson/NA/Enron@ENRON, Frank Rishe/NA/Enron@Enron, Geriann Warner/NA/Enron@Enron, Germain Palmer/Corp/Enron@ENRON, Ginger Dernehl/NA/Enron@Enron, Gloria Ogenyi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Harry Kingerski/NA/Enron@Enron, Howard Fromer/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Janel Guerrero/Corp/Enron@Enron, Janine Migden/NA/Enron@Enron, Jean R Dressler/NA/Enron@Enron, Jean Ryall/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Joe Allen/NA/Enron@Enron, Joe Connor/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, John Shelk/NA/Enron@Enron, Joseph Alamo/NA/Enron@Enron, Kathleen Sullivan/NA/Enron@ENRON, Kathy Mongeon/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kerry Stroup/NA/Enron@Enron, Kirsten Bellas/NA/Enron@Enron, Lara Leibman/NA/Enron@Enron, Larry Decker/NA/Enron@Enron, Laurie Knight/NA/Enron@Enron, Leslie Lawner/NA/Enron@Enron, Linda J Noske/HOU/ECT@ECT, Linda Robertson/NA/Enron@ENRON, Lindsay Meade/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Lisa Yoho/NA/Enron@Enron, Lora Sullivan/Corp/Enron@ENRON, Lysa Akin/PDX/ECT, Marchris Robinson/NA/Enron@Enron, Margaret Huson/ENRON@enronXgate, Maria Arefieva/NA/Enron, Maureen McVicker/NA/Enron@Enron, Melinda Pharms/HOU/ECT@ECT, Mike Roan/ENRON@enronXgate, Mona L Petrochko/NA/Enron@Enron, Nancy Hetrick/NA/Enron@Enron, Pat Shortridge/Corp/Enron@Enron, Patrick Keene/NA/Enron@Enron, Paul Kaufman/PDX/ECT, Rebecca W Cantrell/HOU/ECT@ECT, Richard Ingersoll/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Robert Frank/NA/Enron@Enron, Robert Hemstock/CAL/ECT@ECT, Robert Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ron McNamara/NA/Enron@Enron, Roy Boston/HOU/EES@EES, Rubena Buerger/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sandra McCubbin/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, Scott Bolton/Enron Communications@Enron Communications, Stella Chan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stephen D Burns/Corp/Enron@ENRON, Steve Montovano/NA/Enron@Enron, Steve Walton/HOU/ECT@ECT, Steven J Kean/NA/Enron@Enron, Sue Nord/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Susan M Landwehr/NA/Enron@Enron, Susan Scott/ET&S/Enron, Terri Miller/NA/Enron@Enron, Thane Twiggs/ENRON_DEVELOPMENT, Tom Briggs/NA/Enron@Enron, Tom Chapman/HOU/ECT@ECT, Tom Hoatson/NA/Enron@Enron, Vinio Floris/Corp/Enron@Enron cc: Subject: Government Affairs Support for ENA To better support Enron North America, the following clarifies the roles and responsibilities within Government Affairs. ? Christi Nicolay will assume a Lead Coordinator role for all power and natural gas matters throughout the country. In her new position, Christi will have responsibility to ensure that our advocacy (including RTO development) is consistent with Enron's broad interests. Christi has spent the last 4 years providing day-to-day coverage for EPMI's East Power desk. Prior to that, Christi worked for FGT and Bracewell & Patterson on natural gas matters. Please join me in congratulating her on this important role. ? Because our support for pro-competitive natural gas policies is critical for the continued success of ENA, Leslie Lawner and Rebecca Cantrell will lead ENA's advocacy on natural gas issues working with Christi Nicolay. Donna Fulton will coordinate our natural gas efforts before FERC. In addition, the Regional Government Affairs teams will support all state level natural gas matters before the appropriate PUC. The primary contacts are (1) Steve Montovano - Atlantic Seaboard, (2) Roy Boston - Mid-continent, (3) Jean Ryall - Texas, (4) Jeff Dasovich - California, (5) Paul Kaufman - Other Western States. ? Sarah Novosel will continue to coordinate our Northeast power pool activity. Ray Alvarez will coordinate FERC matters involving Western power matters, including California. Donna Fulton will coordinate FERC matters in the Eastern power markets. ? Charles Yeung and Richard Ingersoll continue to represent Enron before NERC. In addition, Andy Rodriquez has recently joined our NERC team. ? Dave Perrino has recently joined Steve Walton's group from the Automated Power Exchange (APX). Also, Susan Scott will replace Christi Nicolay in supporting the EPMI East Power desk. Susan was previously working at ET&S supporting Transwestern. Please join me in welcoming Andy, Dave and Susan to the team. ? We have aligned our personnel to ensure effective coverage. For a detailed listing of Functional Team responsibilities, please see the attached chart.

---------------------- Forwarded by Valarie Sabo/PDX/ECT on 03/08/2001 01:21 PM --------------------------- Enron Capital & Trade Resources Corp. From: Nancy Hernandez @ ENRON 03/01/2001 12:21 PM To: Valarie Sabo/PDX/ECT@ECT cc: Subject: Re: adding new books/desks/counterparties in West Portfolio Sorry: LN skipped over your name in the send process. ---------------------- Forwarded by Nancy Hernandez/NA/Enron on 03/01/2001 02:20 PM --------------------------- From: Nancy Hernandez 03/01/2001 02:20 PM To: Fran Chang/PDX/ECT@ECT cc: Chris Abel/HOU/ECT@ECT, Burton McIntyre/HOU/ECT@ECT, Susan D Trevino/HOU/ECT@ECT Subject: Re: adding new books/desks/counterparties in West Portfolio Valarie: Can you please complete the attached book request for the EPMI-ST-WR-EXT book? If you have any questions please call me at 713-345-4751. Nancy ---------------------- Forwarded by Nancy Hernandez/NA/Enron on 03/01/2001 02:16 PM --------------------------- Fran Chang@ECT 03/01/2001 01:14 PM To: Min Zheng/NA/Enron@Enron, Norman Lee/Corp/Enron cc: Sanjay Gupta/HOU/ECT, [email protected], Valarie Sabo/PDX/ECT@ECT Subject: Re: adding new books/desks/counterparties in West Portfolio Hi Min Zheng and Norman: In the past couple of weeks you have been working on adding three new books (Short-term west rockies, Short-term west services, and Long-term west options) for the west. Yesterday we entered/moved our exotic deal (deal # 13982.3, which was originally in Short-term Southwest book) into the new Short-term west rockies book and we are seeing a couple of problems: (1) It seems that in DprAutomation the Short-term west rockies book was named as "ST-WROCK", rather than "ST-WR" (i.e. the book's/roll's name in M:\common\power\Postion\Dpr\2001\0102). Therefore, last night and this morning we had to temparily changed the roll's name to ST-WROCK in order to allow DprAutomation to run through the roll to bring in P&L/PCS/PID data. (After DprAutomation was done running, we then changed it back to ST-WR so we can link the roll to the "pwrdpr" file). => We need DprAutomation to use "ST-WR" for Short-term west rockies book so we won't have to change the file name everytime we run DprAutomation. (2) As mentioned earlier, yeterday deal #13982.3 's desk was changed from ST-SW to Short-term west rockies in the Exotic book. Although we officialize the Exotic book (post id 14061), Nancy Hernandez in Risk Management (Houston) found that they could not see the Short-term west rockies book officialized in Exotic. => I am not sure if this is due to the same problem as in (1) or something else. We need the new Short-term west rockies book set up right so it can be officialized in the Exotic book in order for the Risk Control Group in Houston to see/monitor it. Please help us look at the above issues. Let me know if I can provide more useful information. (For Nancy: I spoke with Valarie and there is nothing we know of other than deal #13982.3 that was in the ST-SW book in Exotic book. Since we moved the deal to Short-term west rockies book last night, it should be normal to see nothing remaining in the ST-SW book.) Thanks, Fran x7973 ---------------------- Forwarded by Fran Chang/PDX/ECT on 03/01/2001 11:03 AM --------------------------- Fran Chang 02/09/2001 11:47 AM To: Norman Lee/Corp/Enron, Min Zheng/NA/Enron@Enron cc: Monica Lande/PDX/ECT@ECT, Valarie Sabo/PDX/ECT@ECT Subject: adding new books/desks/counterparties in West Portfolio Hi guys: I just wanted to touch base with you on how we are doing on the IT side regarding the 3 new books that West Power is establishing (* please refer to the email attached from Val sent on 2/5/2001). Today, we will be creating the three new desks/books (ST West Services, ST West Rockies, and LT West Options). Would you please help us set up these three new desks/books in "West tot belden2". The path to the file is M:\power2\Curve\New_sys\Data. Specifically, when you open the file and go to "Peak", "Off-Peak", "Peak-By Region", and "Off-Peak-By Region" tabs, you will see pivot tables/columns which can be manupulated to get positions in our existing desks/books (eg. LT-NW, LT-SW, etc). We need ST West Services, ST West Rockies, and LT West Options to be included in these tabs under seperate columns, too. Please let me know if you have any questions. Thanks, Fran x7973 ---------------------- Forwarded by Fran Chang/PDX/ECT on 02/09/2001 11:50 AM --------------------------- From: Valarie Sabo 02/05/2001 11:57 AM To: Samuel Schott/HOU/ECT@ECT cc: Chris Abel/HOU/ECT@ECT, Burton McIntyre/HOU/ECT@ECT, Susan D Trevino/HOU/ECT@ECT, Thresa A Allen/HOU/ECT@ECT, Duong Luu/HOU/ECT, Sanjay Gupta/HOU/ECT, LaCrecia Davenport/Corp/Enron@Enron, Misti Day/HOU/ECT@ECT, Michael Benien/Corp/Enron@ENRON, Will Smith/HOU/ECT, Norman Lee/Corp/Enron, Stacey W White/HOU/ECT@ECT, Melissa Ann Murphy/HOU/ECT@ECT (bcc: Fran Chang/PDX/ECT) Subject: adding new books/desks/counterparties in West Portfolio Hello all. I'm not sure if I've included too few people or too many, but you can let me know if I've left someone off the list or have included someone unnecessarily. We're busy up here in Portland adding new desks...these new desks will need to mapped through all of the Enpower reports/calcs, DPR, adhoc, MTM97, etc. There are several of you that I will need to work with after the books are set up, but I think this gets us through the initial push. Attached is the primary information on the new books. Please email me or call if there are any questions. I'd like to have the setup completed by Wednesday, Feb. 07, if possible. Thanks! Val at x7756

Please find below the dial-in numbers for tomorrow's conference call in preparation for next week's formal board meeting: Topic: Briefing re: TBS from Fede Cerisoli for Enron's board members Date: March 23rd Time: 1h00pm or 3:00 pm Houston Time 4h00pm or 6:00 pm S?o Paulo/Rio de Janeiro Time Host: Eddy Daniels (Fede Cerisoli) Dial In Numbers: International: 847 619 8039 Domestic: 800 991 9019 Participant Code: 667 22 85# To facilitate the discussion during the call, I'm enclosing the following material: Draft of the Board Meeting presentation. A summary/diagram of the project's supply agreements. A diagram of the Yabog pipeline to assist us during the briefing on the TBS-Andina capacity release transaction. Thank you very much. From: Eddy Daniels on 03/22/2001 07:21 AM CST To: James A Hughes/Enron@EnronXGate, James Derrick/Enron@EnronXGate, Mark E Haedicke/HOU/ECT@ECT, Rebecca McDonald/Enron@EnronXGate cc: Federico Cerisoli/SA/Enron@Enron, Erwin Landivar/SA/Enron@Enron, Gabriela Aguilar/SA/Enron@Enron, John Novak/SA/Enron@Enron Subject: Re: Notice of Meeting of Directors of TBS on March 28, 2001 I thought it might be helpful to provide a little background on the reasons for the March 28 board meeting. By tomorrow morning, Federico and his team will distribute talking points with details of the various matters listed on the agenda. If you would find it useful, Federico and I are available for an informational conference-call in preparation for the board meeting which could be held on Friday, March 23, either at 3 pm Houston time, or at 1pm Houston time. Please let us know of your preference. TBS is a Cayman company whose principal purpose is to facilitate the supply of gas to the Cuiaba power plant in Brazil. It is essentially a service company and its only assets are contractual rights related to the gas supply and transportation agreements. Enron owns 72.5%, and Shell owns 27.5%. Until now, the board has consisted of only Enron designees. Shell has had a right to designate a board member since late 1998, and has recently designated Dr. Johannes Walzebuck as their designee for TBS (and to serve on other boards related to Cuiaba). Until now, the board functioned largely by unanimous written resolutions. Shell is also minority shareholder of the asset-owning entities related to the Cuiaba project: EPE (power plant co.), GasMat (Brazilian side of pipeline spur) and GasBol (Bolivian side of pipeline spur). Pursuant to various agreements, Shell is obligated to fund its proportional share of the capital expenditures required to develop the project. Essentially, the agreements require that the parties consult from time to time to determine an "Agreed Budget." The project companies make monthly cash calls per the Agreed Budgets and the shareholders then fund the cash requirements. Due to various construction problems and delays, the main project entities (EPE, GasMat & GasBol) have seen significant increases in the proposed Agreed Budgets. The once friendly operating relationship between Shell and the project companies has turned cold, with Shell insisting on strict observance of contractual formalities, objecting to proposed increases to the Agreed Budgets pending further consultations, and defaulting on nearly $13 MM of cash calls in the past few weeks. Rebecca McDonald and Pete Weidler have become personally involved in discussions with senior representatives of Shell to resolve the problems. It is these tensions with Shell that have led to us call for a live TBS board meeting instead of the more usual action by written resolutions. We expect that Shell may vote against approving the budgets, even though TBS's budget is quite small and has not increased beyond the level approved by Shell previously. While Shell has a contractual right to object to increases (at EPE, GasMat & GasBol) and to decline to participate in further funding (leading to their dilution), they have no right to refuse to fund the obligations to which they have already agreed. The board still can approve the budgets it deems necessary, thus giving TBS's managers corporate authority to continue operations under the budgets. Shell remains obligated to fund its proportionate share of the Agreed Budget for TBS, notwithstanding any potential vote against the budget. It is quite possible that Shell will not raise unnecessary obstacles in the TBS board meeting given the relatively small amounts at stake (less than $1 million). Their real concerns lie in the asset owning companies. However, we must be prepared for potential noncooperation. As indicated, I understand that an informative presentation will be distributed to you late this evening and TBS's management will be available to answer your questions Friday afternoon. If I can be of further assistance, please let me know. Best Regards, Eddy Daniels Eddy Daniels 03/20/2001 05:18 PM To: [email protected], James Derrick/Enron@EnronXGate, Mark E Haedicke/HOU/ECT@ECT, Rebecca McDonald/Enron@EnronXGate, James A Hughes/Enron@EnronXGate cc: Federico Cerisoli/SA/Enron@Enron, Nancy Muchmore/NA/Enron@Enron, Denise Almoina/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, [email protected] Subject: Notice of Meeting of Directors of TBS on March 28, 2001 Please find attached a notice of a board of directors meeting for Transborder Gas Services Ltd. for next Weds., March 28, 2001. The meeting will be held immediately after presentations to the shareholders' representatives (Enron & Shell ) in Cuiaba, Brazil and will start at 11:00 am local time (9am Houston time). There will be a telephone call-in number for board members who can not attend in person which will circulate later this week. Regards, Eddy Daniels

So that we're all on the same page, Mike was successful with Williams. We have an invoice in hand for a $2,290,500 that covers the prepayment on April volumes. This has bought us some time on the November payment and L/C issues. At Rob Traband's request, information that JP Morgan needs to get comfortable with the L/C waiver amendment/agreement was sent over this afternoon (i.e., arbitration pleadings and "default" correspondence between PPEP and Brazos, all of which has already been provided to JP Morgan, New York). RH -----Original Message----- From: Hill, Garrick Sent: Tuesday, March 26, 2002 1:44 PM To: Mazowita, Mike; Parks, Joe; Vos, Theresa; Herrmann, Karen; Dhont, Margaret Cc: Bills, Lisa; Ward, Charles; Lyons, Dan; Sylvia Baker (E-mail); John B. Tobola (E-mail) Subject: PPEP - Williams Gas Supply Issues I spoke with Rick Vicens at PPE about the gas scheduling problem we're running into as a result of JP Morgan's delay in getting back to us on the L/C amendment/agreement (I have two calls into Rob Traband) as well as the new issue that we're currently investigating with respect to the Williams gas supply invoice due in November. In light of the fact that nominations are due tomorrow and it is unlikely that the L/C amendment/agreement will be complete (let alone the L/C itself), Rick Vicens agrees that PPEP should prepay April gas so as to buy time to get the L/C in place. Mike/Joe, please work together with Williams to determine the amount of the payment and coordinate with Theresa/Karen to get the wire out. With resepect to the Williams gas supply invoice due in November, Rick Vicens agrees that if we do conclude that PPEP paid ENA and ENA did not forward funds to Williams, PPEP will need to make the supplier whole (like it did Lone Star). He'd like to hold off on making the payment until we have all of the facts, provided that this doesn't interfere with our ability to flow gas to the plant as required. Mike, you're in the best position to feel out Williams and advise us on this one. Please try to get them to accept the prepay as a good faith effort to resolve the outstanding requests until we can finish investigating the payment history and lining up the L/C. Let them know that if our investigation indicates that they've been shorted, the project is committed to making them whole and has the cash to do so. Theresa/Karen, as you're setting up the wire on the April prepay please keep in mind that if Williams pushes back, we may need to increase the amount of the wire to make them whole for the amount due in November. Margaret, please include in your review amounts paid to ENA by PPEP (part of the estimated payment shown in the spreadsheet you received yesterday) for supply costs incurred by PPEP under its agreement with Apache ($1,488,620). We suspect that the fact pattern will be the same and wish to be prepared when the supplier starts to take us down that road. Lisa, Chuck, Dan, Sylvia and John, this is being sent to you as an FYI. Thanks, RH -----Original Message----- From: Hill, Garrick Sent: Monday, March 25, 2002 4:22 PM To: Mazowita, Mike; Herrmann, Karen Cc: Dhont, Margaret Subject: FW: Outstanding Williams Invoice Check that, James paid $3,125,227.76 to ENA in November per the attached. I spoke w/Margaret Dhont in Settlements who will look further into the amount that came into vs. what was was paid out by ENA in November relating to the Cleburne facility. She should be getting back to us tomorrow morning. [Margaret, for your reference, the asset goes by Tensaka IV, Cornhusker, Cleburne and Ponderosa Pine Energy internally.] RH -----Original Message----- From: Hill, Garrick Sent: Monday, March 25, 2002 3:24 PM To: Mazowita, Mike Cc: Herrmann, Karen Subject: RE: Outstanding Williams Invoice James was making estimated payments each month for current month activity and the prior month's reconciliation to actual invoices. To that end, he paid $3,715,582.50 for November 2001, the month the amount shown below was due, directly to ENA per the attached. That's the same month the $108,405 Lone Star Invoice was due, which we know he had to remit to Lone Star after the bankruptcy (effectively "double paying" the invoice). Since this didn't come up before he left, I think we can be reasonably certain that he didn't pay the amount shown to Williams. The question is did Enron remit the payment to Williams? Like you, I'm afraid to get the answer. Is there a way to determine if we have a similar problem on Apache??? << File: Plant-ENA Gas Recon.xls >> -----Original Message----- From: Mazowita, Mike Sent: Monday, March 25, 2002 3:04 PM To: Hill, Garrick Subject: FW: Outstanding Williams Invoice I think I found another unpaid invoice. Trey Skelton called me and said according to their records, this invoice has not been paid. This is not good. Theresa Vos is out today and Karen Herrmann is diligently looking to see if this was paid directly to Enron. Like it would matter anyway... Maz -----Original Message----- From: Herrmann, Karen Sent: Monday, March 25, 2002 11:35 AM To: Mazowita, Mike; Vos, Theresa Subject: RE: Outstanding Williams Invoice I've scoured the bank statements for Tenaska and Ponderosa Pine and don't see where this amount was ever paid. We do have the invoice, though. -----Original Message----- From: Mazowita, Mike Sent: Monday, March 25, 2002 10:44 AM To: Vos, Theresa; Herrmann, Karen Subject: Outstanding Williams Invoice Theresa or Karen: Can you look into this invoice for Williams: Williams Energy Gas for Ponderosa Pine Energy $2,226,962.50 Due Date: November 26, 2001 October 2001 - Gas Deliveries? A FED ID number is really what I'm looking for. Thanks, Mike

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.

Mark, note the feedback from the AA's, it is imperative that we get a handle on this! Let me know when I can spring our plan on Jeff. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 07/26/2000 03:37 PM --------------------------- Jere C Overdyke 07/26/2000 03:26 PM To: David W Delainey/HOU/ECT@ECT cc: Subject: ENA Analysts and Associates Attached is a memo regarding a meeting I had with our associates on July 17, 2000. Additionally, I met with Celeste Roberts on July 21 and held another meeting with the Associates on same date. The planned dinners with the associates as well as the proactive approach ENA is taking with them is the correct course of action. Jere ---------------------- Forwarded by Jere C Overdyke/HOU/ECT on 07/26/2000 03:06 PM --------------------------- Jere C Overdyke 07/17/2000 02:53 PM To: Ted C Bland/HOU/ECT@ECT cc: Subject: ENA Analysts and Associates I met with 7 associates and 1 analyst over lunch to discuss the Analyst and Associate Program. The major concern expressed by everyone in the meeting was that the program has become a bureaucracy vs a meritocracy. According to the Associates, the program has become inflexible on any issue and the only feedback they receive is "go talk to Skilling if you don't like the answers". Another major concern was compensation. After listening to the comments, my conclusion is that there are some problems that need to be addressed. Specific recommendations by this small group include (1) reduce amount of time in program before promotion to manager from 18 months to 12 months, (2) increase Associates involvement in rotation decisions, (3) explanations of why the program is structured in a certain way without defensive comments of "go talk to Skilling", (4) generally, more of an open market approach so that we are using a "carrot vs stick" method to motivate behavior. Let me know about the next meeting to discuss. Jere ---------------------- Forwarded by Jere C Overdyke/HOU/ECT on 07/17/2000 02:23 PM --------------------------- Enron North America Corp. From: David W Delainey 07/14/2000 08:43 AM Sent by: Kay Chapman To: Sally Beck/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, Raymond Bowen/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT, Wes Colwell/HOU/ECT@ECT, Janet R Dietrich/HOU/ECT@ECT, Jeff Donahue/HOU/ECT@ECT, W David Duran/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT, Gary Hickerson/HOU/ECT@ECT, Mike Jakubik/HOU/ECT@ECT, Scott Josey/Corp/Enron@ENRON, John J Lavorato/Corp/Enron@Enron, Rodney Malcolm/HOU/ECT@ECT, George McClellan/HOU/ECT@ECT, Rob Milnthorp/CAL/ECT@ECT, Julia Murray/HOU/ECT@ECT, Jere C Overdyke/HOU/ECT@ECT, David Oxley/HOU/ECT@ECT, Kevin M Presto/HOU/ECT@ECT, Brian Redmond/HOU/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT, C John Thompson/Corp/Enron@ENRON, Max Yzaguirre/NA/Enron@ENRON, James A Ajello/HOU/ECT@ECT, Edward Ondarza/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT, Beth Perlman/HOU/ECT@ECT, Mark Frevert/NA/Enron@Enron, Jean Mrha/NA/Enron@Enron, Julie A Gomez/HOU/ECT@ECT cc: Patti Thompson/HOU/ECT@ECT, Catherine DuMont/PDX/ECT@ECT, Marsha Schiller/HOU/ECT@ECT, Mollie Gustafson/PDX/ECT@ECT, Shirley Tijerina/Corp/Enron@ENRON, Christy Chapman/HOU/ECT@ECT, Tina Rode/HOU/ECT@ECT, Janette Elbertson/HOU/ECT@ECT, Stella L Ely/HOU/ECT@ECT, Nicole Mayer/HOU/ECT@ECT, Tonai Lehr/Corp/Enron@ENRON, Kimberly Hillis/HOU/ECT@ect, Ana Alcantara/HOU/ECT@ECT, Yolanda Ford/HOU/ECT@ECT, Carolyn George/Corp/Enron@ENRON, Donna Baker/HOU/ECT@ECT, Rhonna Palmer/HOU/ECT@ECT, Felicia Doan/HOU/ECT@ECT, Barbara Lewis/HOU/ECT@ECT, Pilar Cerezo/NA/Enron@ENRON, Terrellyn Parker/HOU/ECT@ECT, Dusty Warren Paez/HOU/ECT@ECT, Shirley Crenshaw/HOU/ECT@ECT, Nicki Daw/NA/Enron@Enron, Cherylene R Westbrook/HOU/ECT@ECT, Kay Chapman/HOU/ECT@ECT, Lillian Carroll/HOU/ECT@ECT, Venita Coleman/Corp/Enron@Enron, Melissa Jones/NA/Enron@ENRON Subject: ENA Analysts and Associates As you know the ENA OTC is actively working with the Analyst and Associate Program to develop greater talent flow into ENA. We are presently working on a number of initiatives to improve how this is working and significantly improve communication flow and responsiveness. However in this regard we also need you to help make sure we have clear lines of communication within ENA regarding A&A resource levels, performance, rotations and retention efforts. In this regard we would like for each of you to take the lead for your groups needs and ensure that any requests, questions or concerns about A&A's in your area are passed through you to either Ted Bland (ENA Recuitment Team Lead - x35275) or Jana Giovannani (ENA liaison from the AA Program - x39233) or myself. It is important that we are discerning about what we do with our A&A resources and plan carefully and accurately for our future needs, in this regard we need for you personally (or a senior member of your team who you may optionally delegate this task to) will take the time to review any A&A resource requests from your team before passing them onto us. In addition, given the importance of these resources, we will be inviting you to a regular bi-monthly meeting to discuss ENA A&A matters. We will confirm the first date in due course. In the meantime if you would like to volunteer another senior member of your team to assume this reponsibility please supply their name as soon as possible. Please call with any questions.

Please remove me from this mailing list. thanks. Greg Booth -----Original Message----- From: [email protected] [SMTP:[email protected]] Sent: Tuesday, May 15, 2001 6:07 PM To: [email protected] Subject: Please deleate me from this list Douglas R. Brawley Pacific Northwest Generating Cooperative 503.288.5555 "Dalia, Keith A - TOS-DITT1" <[email protected]> Sent by: RTO West Regional Representatives Group <[email protected]> 05/15/01 04:39 PM Please respond to RTO West Regional Representatives Group To: [email protected] cc: Subject: You have been added to the RRGA-L mailing list (RTO West Congestion Model Content Group) by Keith Dalia <[email protected]>. Please save this message for future reference, especially if this is the first time you subscribe to an electronic mailing list. If you ever need to leave the list, you will find the necessary instructions below. Perhaps more importantly, saving a copy of this message (and of all future subscription notices from other mailing lists) in a special mail folder will give you instant access to the list of mailing lists that you are subscribed to. This may prove very useful the next time you go on vacation and need to leave the lists temporarily so as not to fill up your mailbox while you are away! You should also save the "welcome messages" from the list owners that you will occasionally receive after subscribing to a new list. To send a message to all the people currently subscribed to the list, just send mail to [email protected]. This is called "sending mail to the list", because you send mail to a single address and LISTSERV makes copies for all the people who have subscribed. This address ([email protected]) is also called the "list address". You must never try to send any command to that address, as it would be distributed to all the people who have subscribed. All commands must be sent to the "LISTSERV address", [email protected]. It is very important to understand the difference between the two, but fortunately it is not complicated. The LISTSERV address is like a FAX number that connects you to a machine, whereas the list address is like a normal voice line connecting you to a person. If you make a mistake and dial the FAX number when you wanted to talk to someone on the phone, you will quickly realize that you used the wrong number and call again. No harm will have been done. If on the other hand you accidentally make your FAX call someone's voice line, the person receiving the call will be inconvenienced, especially if your FAX then re-dials every 5 minutes. The fact that most people will eventually connect the FAX machine to the voice line to allow the FAX to go through and make the calls stop does not mean that you should continue to send FAXes to the voice number. People would just get mad at you. It works pretty much the same way with mailing lists, with the difference that you are calling hundreds or thousands of people at the same time, and consequently you can expect a lot of people to get upset if you consistently send commands to the list address. You may leave the list at any time by sending a "SIGNOFF RRGA-L" command to [email protected]. You can also tell LISTSERV how you want it to confirm the receipt of messages you send to the list. If you do not trust the system, send a "SET RRGA-L REPRO" command and LISTSERV will send you a copy of your own messages, so that you can see that the message was distributed and did not get damaged on the way. After a while you may find that this is getting annoying, especially if your mail program does not tell you that the message is from you when it informs you that new mail has arrived from RRGA-L. If you send a "SET RRGA-L ACK NOREPRO" command, LISTSERV will mail you a short acknowledgement instead, which will look different in your mailbox directory. With most mail programs you will know immediately that this is an acknowledgement you can read later. Finally, you can turn off acknowledgements completely with "SET RRGA-L NOACK NOREPRO". Following instructions from the list owner, your subscription options have been set to "NOFILES REPRO" rather than the usual LISTSERV defaults. For more information about subscription options, send a "QUERY RRGA-L" command to [email protected]. Contributions sent to this list are automatically archived. You can get a list of the available archive files by sending an "INDEX RRGA-L" command to [email protected]. You can then order these files with a "GET RRGA-L LOGxxxx" command, or using LISTSERV's database search facilities. Send an "INFO DATABASE" command for more information on the latter. This list is available in digest form. If you wish to receive the digested version of the postings, just issue a SET RRGA-L DIGEST command. Please note that it is presently possible for other people to determine that you are signed up to the list through the use of the "REVIEW" command, which returns the e-mail address and name of all the subscribers. If you do not want your name to be visible, just issue a "SET RRGA-L CONCEAL" command. More information on LISTSERV commands can be found in the LISTSERV reference card, which you can retrieve by sending an "INFO REFCARD" command to [email protected]. << File: ATT00003.htm >>

John: I received the form of Guaranty by fax and it looks fine. After you have filled in the blanks, please fax it either to me or Susan and in the mean time Susan will be sending you execution sets of the docs. Carol St. Clair EB 3892 713-853-3989 (Phone) 713-646-3393 (Fax) [email protected] "Shuttee, John" <[email protected]> 06/28/2000 09:07 AM To: "'[email protected]'" <[email protected]> cc: "Shuttee, John" <[email protected]> Subject: EP-Enron ISDA Guaranty -f/u 6-28 Carol - Two things: * First, I will try to email this guaranty to you again, followed with a fax. Apparently both failed to go through yesterday. * Second, I did some research and it turns out that our general partner is El Paso Merchant Energy-Gas Company, and Cecelia Heilmann is an officer authorized to sign for both this entity and the L.P.. So if you want to alter the signature block reflecting this general partner, feel free to do so. Please let me know later this morning if you still did not get our Guaranty. John > -----Original Message----- > From: Shuttee, John > Sent: Tuesday, June 27, 2000 8:37 AM > To: '[email protected]' > Cc: Shuttee, John > Subject: EP-Enron ISDA Guaranty > > Sorry, I thought I had. Here it is. > > John > > << File: EL Guaranty 5-23 (Enron Form).doc >> > > -----Original Message----- > From: [email protected] [SMTP:[email protected]] > Sent: Tuesday, June 27, 2000 8:18 AM > To: Shuttee, John > Subject: RE: Enron ISDA Final Draft 6-23 > > > John: > Please send the Guaranty attachment. > > Carol St. Clair > EB 3892 > 713-853-3989 (Phone) > 713-646-3393 (Fax) > [email protected] > > > > > "Shuttee, > > John" To: > "'[email protected]'" <[email protected]> > <ShutteeJ@EPE cc: > > nergy.com> Subject: RE: Enron ISDA > Final Draft 6-23 > > > 06/26/2000 > > 03:32 PM > > > > > > > > > > Carol, > > Enclosed is our adjusted guaranty that we had previously altered to > meet > your requirements (sorry I didn't send this initially). Please see > if this > is good for you. > > John > > PS: Where is "receipt" you discussed below? Page 1 of which > document? > <<Enron Guarantee Format - 5-23.doc>> > > > -----Original Message----- > > From: [email protected] [SMTP:[email protected]] > > Sent: Monday, June 26, 2000 1:03 PM > > To: Shuttee, John > > Subject: Re: Enron ISDA Final Draft 6-23 > > > > > > John: > > The Schedules look fine. Just one minor chnage which I can maker. > In > the > > form of LC, I'm deleting the words "Rider 1" at the bottm and in > the last > > paragrpah of page 1, chnagung the word "receipts" to "receipt". > We will > > generate and send to you execution sets. With respect to the > Guaranty, > we > > would prefer that you sue the fopm which I sent to you a few weeks > ago. > > Here it is. This form is our updated form and matches up with the > Enron > > Guaarnty that we are giving you. > > (See attached file: EL Guaranty 5-23 (Enron Form).doc) > > > > Carol St. Clair > > EB 3892 > > 713-853-3989 (Phone) > > 713-646-3393 (Fax) > > [email protected] > > > > > > > > > > "Shuttee, > > > > John" To: "'Carol St > Clair'" > > <[email protected]> > > <ShutteeJ@EPE cc: "Shuttee, John" > > <[email protected]> > > nergy.com> Subject: Enron ISDA > Final > > Draft 6-23 > > > > > > 06/26/2000 > > > > 08:29 AM > > > > > > > > > > > > > > > > > > > > Carol - > > > > Enclosed are what I hope will be the final drafts of the Schedule, > > Paragraph > > 13, LC provisions, and Schedule 1. > > > > I have accepted and incorporated the new changes you made plus all > the > > changes which we have agreed upon. I also changed the > presentation of > our > > address in Part 4a of the schedule - it's the same information > presented > > in > > a more concise way. Finally, I changed the signature block on the > > schedule > > to eliminate EPME-Gas Company (it no longer exists) as a 'general > partner" > > - > > I don't know where that came from. > > > > Also enclosed is our version of the Guarantee. Please let me know > if any > > other changes are required. If not, let's proceed with execution > copies > - > > let me know if you want to generate them, or if you want me to. > > > > John > > > > <<Enron Schedule -Our Draft 6-23.doc>> <<Enron CSA - Our Draft > > 6-23.doc>> > > <<EP Guarantee Format - 6-23.doc>> > > > > > > > > > > ****************************************************************** > > This email and any files transmitted with it from El Paso > > Energy Corporation are confidential and intended solely > > for the use of the individual or entity to whom they are > > addressed. If you have received this email in error > > please notify the sender. > > ****************************************************************** > > > > (See attached file: Enron Schedule -Our Draft 6-23.doc) > > (See attached file: Enron CSA - Our Draft 6-23.doc) > > (See attached file: EP Guarantee Format - 6-23.doc) > > << File: EL Guaranty 5-23 (Enron Form).doc >> << File: Enron > Schedule > > -Our Draft 6-23.doc >> << File: Enron CSA - Our Draft 6-23.doc >> > << > > File: EP Guarantee Format - 6-23.doc >> > > (See attached file: Enron Guarantee Format - 5-23.doc) > << File: Enron Guarantee Format - 5-23.doc >>

One day, when I was a freshman in high school, I saw a kid from my class was walking home from school. His name was Kyle. It looked like he was carrying all of his books. I thought to myself, "Why would anyone bring home all his books on a Friday? He must really be a nerd." I had quite a weekend planned (parties and a football game with my friends tomorrow (afternoon), so I shrugged my shoulders and went on. As I was walking, I saw a bunch of kids running toward him. They ran at him, knocking all his books out of his arms and tripping him so he landed in the dirt. His glasses went flying, and I saw them land in the grass about ten feet from him. He looked up and I saw this terrible sadness in his eyes. My heart went out to him. So, I jogged over to him and as he crawled around looking for his glasses, I saw a tear in his eye. As I handed him his glasses, I said, "Those guys are jerks. They really should get lives." He looked at me and said, Hey thanks!" There was a big smile on his face. It was one of those smiles that showed real gratitude. I helped him pick up his books, and asked him where he lived. As it turned out, he lived near me, so I asked him why I had never seen him before. He said he had gone to private school before now. I would have never hung out with a private school kid before. We talked all the way home, and I carried his books. He turned out to be a pretty cool kid. I asked him if he wanted to play football on Saturday with my friends and me. He said yes. We hung all weekend and the more I got to know Kyle, the more I liked him, and my friends thought the same of him. Monday morning came, and there was Kyle with the huge stack of books again. I stopped him and said, "Boy, you are going to really build some serious muscles with this pile of books everyday!" He just laughed and handed me half the books. Over the next four years, Kyle and I became best friends. When we were seniors, we began to think about college. Kyle decided on Georgetown, and I was going to Duke. I knew that we would always be friends, that the miles would never be a problem. He was going to be a doctor, and I was going for business on a football scholarship. Kyle was valedictorian of our class. I teased him all the time about being a nerd. He had to prepare a speech for graduation. I was so glad it wasn't me having to get up there and speak. Graduation day came, and I saw Kyle. He looked great. He was one of those guys that really found him during high school. He filled out and actually looked good in glasses. He had more dates than I had and all the girls loved him. Boy, sometimes I was jealous. Today was one of those days. I could see that he was nervous about his speech. So, I smacked him on the back and said, "Hey, big guy, you'll be great!" He looked at me with one of those looks (the really grateful one) and smiled. "Thanks," he said. As he started his speech, he cleared his throat, and began. "Graduation is a time to thank those who helped you make it through those tough years. Your parents, your teachers, your siblings, maybe a coach, but mostly your friends. I am here to tell all of you that being a friend to someone is the best gift you can give him or her. I am going to tell you a story."I just looked at my friend with disbelief as he told the story of the first day we met. He had planned to kill himself over the weekend. He talked of how he had cleaned out his locker so his Mom wouldn't have to do it later and was carrying his entire stuff home. He looked hard at me and gave me a little smile. "Thankfully, I was saved. My friend saved me from doing the unspeakable." I heard the gasp go through the crowd as this handsome, popular boy told us all about his weakest moment. I saw his mom and dad looking at me and smiling that same grateful smile. Not until that moment did I realize its depth. Never underestimate the power of your actions. With one small gesture you can change a person's life. For better or for worse. God puts us all in each other's lives to impact one another in some way. Look for God in others. You now have two choices, you can: (1) Pass this on to your friends or (2) Delete it and act like it didn't touch your heart. As you can see, I took choice number 1. "Friends are angels who lift us to our feet when our wings have trouble remembering how to fly." It's National Friendship Week. Show your friends how much you really care. Eleanor Roosevelt wrote: "Many people will walk in and out of your life, but only true friends will leave footprints in your heart." To handle yourself, use your head; to handle others, use your heart. Anger is only one letter short of danger. If someone betrays you once, it is his fault; if he betrays you twice, it is your fault. Great minds discuss ideas; Average minds discuss events; Small minds discuss people. He who loses money, loses much; He, who loses a friend, loses much more; He, who loses faith, loses all. Beautiful young people are accidents of nature, but beautiful old people are works of art. Learn from the mistakes of others. You can't live long enough to make them all yourself. Friends, you and me.... you brought another friend.... and then there were 3. We started our group.... our circle of friends.... and like that circle.... there is no beginning or end. Yesterday is history... Tomorrow's a mystery. Today is a gift. It's National Friendship Week. Show your friends how much you care. Send this to everyone you consider a FRIEND. If it comes back to you, then you'll know you have a circle of friends. WHEN YOU RECEIVE THIS LETTER, YOU'RE REQUESTED TO SEND IT TO AT LEAST 10 PEOPLE, INCLUDING THE PERSON WHO SENT IT TO YOU.

Click Here for Last Mailing: http://204.128.208.250/docs/mailings/20011012.txt GREAT 1997 CABERNET VALUE RH PHILLIPS Toasted Head CABERNET SAUVIGNON/SYRAH, CALIFORNIA, 1997 12x750ml $13.99 per bottle (cash) $154.91 per case (Cash) A blend of 55% Mendocino County Cabernet Sauvignon with 45% Dunnigan Hills (Yolo County) Syrah this is a juicy, ripe, well-focused, flavorful Cabernet-blend that exemplifies the excellent 1997 vintage. Alive with flavor, it offeres black cherry, blackberry, and black raspberry fruit along with notes cedar, black pepper, tobacco, and leather. It has a great medium-weight feel and a supple texture. It is alive, vibrant, and elegant in the mouth. Not complex but super delicious. I almost don't want to give it the score it deserves because I'm afraid no one will believe me; it tastes like it cost much more and comes from a much fancier appellation. Excellent. SPEC's Score: 92+ points. (Due to the fact that only 22 cases of this 1997 are available, this item will be sold at SPEC's 2410 Smith Street Warehouse Store only.) THE GREAT UNKNOWN: Wine From Off the Well-Worn Path Whether you're a wine adventurer or you're just tired of drinking the same old thing, this is the class for you. On THURSDAY, OCTOBER 18TH at 7:00pm, SPEC's and the Wine School at l'Alliance Francaise will offer a class and tasting entitled THE GREAT UNKNOWN: Wine from Off the Well-Worn Path. This class will look at and taste twelve very-good-to-great wines from lesser-known wine growing areas in France, Spain, and Portugal. The class will focus on how the wines are made, the grapes used to make them, and the land they come from as well as how they match-up with food. Twelve wines representing a range of styles including both red and white wines will be tasted. THE GREAT UNKNOWN: Wine from Off the Well-Worn Path will cost$46.00 "cash" per person ($48.42 regular) with a $10.00 discount available for 1000 SPEC's Key points. For directions, reservations, or more information on this class, please call SPEC's at 713-526-8787. This class will be held at l'Alliance Francaise. L?Alliance Fran?aise, the French cultural organization in Houston, is located at 427 Lovett Boulevard (on the southeast corner of Lovett and Whitney, one block south of Westheimer).PLEASE SEE WINE SCHOOL CANCELLATION POLICY AT BOTTOM. THUNDER IN TUSCANY: Fontodi and Felsina Chianti Dinner at Simposio Please join SIMPOSIO Chef Alberto Baffoni and SPEC's Italian wine buyer Joseph Kemble for the premier dinner at Simposio featuring the newly released 1999 Chiantis from both Fontodi and Felsina. Be among the first in Texas to hear the thunder coming from Tuscany. Chef Baffoni's Menu starts with Tuna carpaccio marinated in a lemon dressing with calamata olives and red onion dressing served with Pra Soave Classico Superiore 2000. Then comes Spinach and potato gnocchi in a gorgonzola cheese sauce served with Felsina Chinati Classico 1998 followed by Grilled wild boar sausage with baby spinach salad in a balsamic tomato vinaigrette served with Fontodi Chianti Classico 1998. The main course is a Duck leg confit with sauteed swiss chard and sweet and sour shallot sauce served with Fontodi Chianti Classico 1999. A Cheese platter with fruit and walnut will be served with Felsina Chianti Classico 1999. Thunder in Tuscany is $79.00 per person plus tax and gratituity and will take place at Simposio Restaurant, 5591 Richmond Avenue at Chimney Rock, at 7:00 PM on Tuesday, October 16, 2001. For more information or reservations, please call Simposio at 713-532-0550 or e-mail [email protected] OUISIE?S TABLE MORGAN VINEYARDS OCTOBER WINE PAIRING DINNER Ouisie?s Table at 3939 San Felipe Road is hosting their last wine pairing dinner of the year on Wednesday, October 31, 2001 (Halloween). The evening will begin at 6:45p.m with a cocktail reception. The guests will enjoy a multi-course meal along with wines from the Morgan Winery produced out of the Santa Lucia Highlands appellation and Monterey County in California. Dan and Donna Lee founded Morgan Winery in 1982, with a goal of creating the finest wines possible by obtaining the highest quality fruit. The Lee's named the ranch the Double L, short for Double Luck, for their identical twin daughters, Annie and Jackie, who were 5 years old at the time. The Double L is farmed organically, the only organic vineyard in the Santa Lucia Highlands. The tariff for the dinner is $85.00 per person plus tax and gratuity. For reservations please call Ouisie's 713-528-2264 Tuesday through Saturday. Any questions regarding the menu or wines may be directed to a Ouisie's manager. OTHER UPCOMING EVENTS (Details to be Announced) 10/25/01 (Thursday, 7pm) - 1999 Zinfandel: Round II 10/30/01 (Tuesday, 7pm) - Ch. Haut Brion Dinner at Four Seasons Hotel 11/07/01 (Wednesday, 7pm) - Oysters and Fevre Chablis Dinner 11/13/01 (Tuesday, 7pm) - Rhone Valley Wines Class and Tasting 11/14/01 (Wednesday, 7pm) - BV Georges de Latour Cabernet Sauvignon Reserve 1998 Release Party WINE SCHOOL CANCELLATION POLICY If for any reason you need to cancel a reservation for a class, dinner, or other event, please let us know at 713-526-8787 as soon as possible. Reservations canceled before 4pm on the last business day before the event (usually 27 hours) will not be charged. Cancellations received after 4pm on the business day before the event will be charged unless those seats can be resold. All no-shows will be charged.

I have been asked by Paul Manning (based at UK01) to forward this message to you all. Regards CAROL FINCH Hi everyone, for future reference the Paul Manning you require is somewhere in America, I'm based in the UK and have nothing to do with this area. Kindly amend your E-Mail addresses accordingly. PS. Our thoughts are with you all at this difficult time. Yours sincerely Paul Manning. ---------- From: Drerup, Dave To: Drerup, Dave 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]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [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: EH&S Data Management and Process Safety Management Technology Sem inar Date: 13 September 2001 14:00 Priority: High Every quarter or so, Data Systems & Solutions hosts seminars to educate clients in the process industries on the value of integrated environmental, health & safety management information systems (EMIS). Our last seminar on May 3, 2001 resulted in over 30 clients attending. We are planning two additional seminars this year (Integrating Process Safety Management - October 11th) and (Integrated EH&S Solutions - November 6th). We vary topics/vendors to meet the needs of the marketplace. For instance, you will notice that Sustainable Development is a "hot" topic right now. Overall, the top three interests we are hearing from our customers on the topic of EMIS include: 1. Sustainable Development "Triple Bottom Line" coupled with Key Performance Metrics/Roll-Up Reporting 2. Integrating Information Systems with EMIS 3. Risk Reduction The ever looming concern over cost justification has become much clearer and will be addressed in future seminars. Even today, there is no "panacea" for EH&S software applications. Most vendors address the "E" picture or the "H&S" picture, but do not cover both holistically. With emerging information technology protocols such as extensible markup language (XML) it is now possible to get a true "best of breed" solution that will allow you to "plug and play" modules instead of hoping for everything in one software vendor. Unfortunately, the EMIS software marketplace still remains unconsolidated and there are inherent risks with selecting a software vendor. The goal of our one day seminar is to address all of these concerns and to help our customers to understand what is involved in a typical EMIS project...from an initial assessment of your needs, to determining the value of an EMIS and the core reasons for doing it, to selecting systems where gaps exist, to allocating proper resources to ensure a successful project, to implementing the solution, to integrating with other facility information systems, and maintenance and training. Let us know if you or anyone from your organization are interested in attending our seminar. We want to give you the most value possible in our one day educational forum. Please let us know if there is anything in particular that you would like to get information on that may not be covered in the topics listed on the agenda. http://www.ds-s.com/Products/EH&S/index.htm gives a current listing of our EMIS services. Regards, David Drerup Manager, Business Development Data Systems & Solutions 1900 West Loop South, Suite 300 Houston, Texas 77027 phone: 713-346-4210 fax: 713-346-4202 Email: [email protected] <<DSS_KMS_Seminar_Fall_01_rev2.doc>> <<DSS_EHS_Seminar_Fall_01_rev1.doc>> For optimum solutions that save you time, visit www.ds-s.com. <<File Attachment: DSS_KMS_.doc>> <<File Attachment: DSS_EHS_.doc>>

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David, Thank you for your comments on the US GTC. Taking each of your main points in turn: Section 2(e)(i)(1) - This Section does not preclude us from doing business with banks or other financial institutions. As you anticipate, breach of warranty constitutes an Event of Default entitling termination. Section 1 - Your main concern appears to focus on the issue of sleeving. As you will see, we have included in Section 1 of all GTCs a provision prohibiting transactions to be entered into by the reference entity itself or by any of its affiliates. Any purported transaction of that sort is automatically void. We considered carefully (both internally and with outside counsel) going further than this by including a provision stopping parties acting in concert with reference entity groups. We concluded that such a provision would be inappropriate for two main reasons. First, as a practical matter, it is almost impossible to police such a provision and detect cases of such collusion. Secondly, if we were to find out about such collusion, we would be entitled to withhold payment (regardless of any contractual provision) on the basis that such collusion constitutes fraud. It is also worth pointing out in this context that sleeving is not an issue germaine only to credit derivatives trading online. It is possible in the existing OTC credit derivatives markets for this kind of activity to be perpetrated. You will not find any provisions in existing market documentation addressing this point - indeed, the new 1999 ISDA Credit Derivatives Definitions are consistent with this. I only hope that reference entities do not follow the devious thought processes set out in your options (a)-(c) (and we will clearly have to keep an eye on you if you ever decide to pursue a different career!). It is not "nasty" defining Enron as the "Determination Agent". This accords with the standard ISDA Master Agreement and, in fact, is less dramatic than the ISDA insofar as all Enron will be required to do as Determination Agent is to verify the validity of notices submitted under transactions (in the context of ISDA, all sorts of complex calculations and subjective evaluations fall to be made by the "Calculation Agent"). Thanks very much for thinking through the issues on the GTC and reviewing it. Please let me know if you would like to discuss this further. Best regards. Paul Simons David Forster 18/02/2000 03:14 To: Bryan Seyfried/LON/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Edmund Cooper/LON/ECT@ECT, Paul Simons/LON/ECT@ECT cc: Mark Dilworth/LON/ECT@ECT Subject: Credit GTC All, I have looked over the U.S. credit GTC and the long descriptions. I see we have decided to go with quarterly billing, rather than monthly. Will the payment/collections cycle cause any heartburn for the back office? I didn't spot any problems with the long descriptions. A few relatively minor comments on the GTC's - which you may or may not want to consider: - Clause 2.(e) (i) (1) - Does this clause preclude us from doing business with banks or other financial institutions? Could we append: "with regard to the Transaction"? - What happens if a Rep or Warranty is broken? Does that constitute sufficient breach to terminate the contract? I'm thinking specifically about sleeving, which is perhaps covered by Clause 2(e)(ii)(1)? I still think that sleeving is one of the most significant commercial risks faced by online trading of derivatives. If I were working for a third party, I'd immediately look for ways to set up a sleeving service to sell credit protection to the Reference Entities where the Reference Entity or its affiliate views its own risk differently from Enron. If I were the Reference Entity in question, I'd consider: a) Buying a load of protection via sleeving and then declaring bankruptcy - then do a Phoenix (in the UK at least) b) Buy a load of protection via sleeving, then take the Credit Derivatives to another third party financial institution and using the credit derivatives as collateral to increase my line of credit - I'm no expert, but I suspect there might be an interesting leverage effect here, which might actually cause a significant increase in Enron's risk exposure. c) Like (b), only the financial institution could buy the credit derivative with or without the need for sleeving - we probably need a restriction on this? (I know financial institutions are not our preferred counterparts up front, but if I were a financial insitution, I'd quickly find a way around this limitation - Affiliates or Sleevers. - Do you think it would beneficial to strengthen our protection against sleeving by adding something to Clause 2, like: "It is not entering into a Transaction for the purpose of concluding a similar transaction with the party (or any Affiliate of such party) which is the Reference Entity in the Transaction". - Should Def'n of "Contract Currency" be "Contractual Currency"? ("Contractual" is also used in the Long Descriptions) - Def'n of "Credit Product" - after "Entity", should we insert "which is"? - Are we being a bit too nasty by defining the Determination Agent as "Enron"? As the reference to Determination Agent in the contract is in a context similar to that of an arbitrator, it seems a bit cheeky to then define ourselves as the arbitrator - would this be enforceable if we were in court? I'm assuming the other GTC's are very similar to the U.S. one and I have not read them. Dave

Is this why he "scares" you? SRS > Subject: Important Information for the November Election > > I say if you're going to vote for him, at least know what you are voting > for. > Hopefully, you won't vote for 4 more years of this kind of leadership. > Share this with everyone you know, please. > > Reprinted from the Internet News Bureau article "Al Gore's 21 Lies" > > DO WE REALLY NEED ANOTHER PATHOLOGICAL LIAR FOR PRESIDENT? > > FICTION: Al Gore recently claimed that his mother-in-law pays more than > $100.00 for the arthritis medicine Lodine; and he claims that his dog > takes > the same medicine for $37.00, claiming "This is wrong!" > FACT: Gore's aides were quick to apologize for Gore's lie, saying the > information was from a Democratic study. Washington newspapers also > reported > that Al Gore > wasn't even sure his mother-in-law was taking any medication and wasn't > even > sure she had arthritis. And, he doesn't know anything about his dog's > "arthritis". > > FICTION: Al Gore said his father, a senator, was a champion of civil > rights > during the 1960's. > FACT: Gore's father voted against the landmark Civil Rights Act of 1964 > and > was a racist who was fond of using the "N" word. > > FICTION: Al Gore said that his sister was the very first person to join > the > Peace Corps. > FACT: By the time Gore's sister joined the Peace Corps, there were already > over 100 members. > > FICTION: The same sister died of lung cancer years later and Gore vowed to > never accept tobacco money as campaign contributions. > FACT: Just four years later, while campaigning for office, Gore spoke to > the > tobacco industry and said he was one of them because "I've planted > it,raised > it, cut it, and dried it." He raised over $100,000 in "reported" > contributions. > > FICTION: While running for office, Gore's campaign literature claimed he > was > a "Brilliant Student". > FACT: Washington newspapers said he barely passed Harvard and > consistently > earned D's and C's. > > FICTION: Gore claims an extensive knowledge of law as a result of his > extensive study at law school. > FACT: Al Gore dropped out of law school. > > FICTION: Gore claimed that his knowledge of God and spirituality came to > complete fruition while "finishing" divinity school. > FACT: Al Gore dropped out of divinity school. > > FICTION: Al Gore claimed responsibility for inventing the Internet in the > 1990's. > FACT : Shocked scientists were quick to speak out, explaining that the > Internet had been in widespread use by government and educational > institutions since the early 1970's. > > FICTION: Al Gore claimed the book "Love Story" was based on his life and > Tipper's. > FACT: Author Erich Segal called a press conference to deny his claim. > (Couldn't he at least lie about a love story where his sweetheart doesn't > die?" > > FICTION : Gore claimed that as a reporter for a Nashville newspaper, his > stories led to the arrests of numerous corrupt criminals. > FACT: He later apologized for his claim and actually said it was untrue > (Also > known as lying). > > FICTION: Gore claims to increase diversity in the staff that follows him > daily, especially among blacks. > FACT: Black members of the Secret Service are suing because they claim > they > are not being promoted to positions guarding the Vice-President. > > FICTION: Al Gore said he was the first to discover the Love Canal nuclear > accident. > FACT: The incident was already discovered, being investigated, and covered > widely in the press for many months before Gore was aware of it. > > FICTION: Gore said just recently that if elected president, he would put > harsh sanctions on the sleazy producers of Hollywood's extreme sex and > violence. > FACT: Just six days later, Gore attended a fundraiser by Hollywood > producers > and radical gay activists where he told them that he would only pretend to > "nudge them" if elected. He raised over $4 million. > > FICTION: Al Gore said he built his Tennessee home with his bare hands. > FACT : Totally false! > > FICTION: Al Gore says parents should not have a choice between private and > public schools because public schools are far better. > TRUTH : Al Gore attended private school and he has sent his children to > private schools. > > FICTION: Al Gore remembers his mother lulling him to sleep as a baby by > singing the popular ditty, "Wear The Union Label". > FACT: The popular ditty was created by the unions when Gore was 27 years > old. > > FICTION: Al Gore claimed to co-sponsor the McCain-Feingold Campaign Reform > Act. > FACT: The Act was not sponsored until he had been out of office for over > a > year. > > FICTION: Al Gore claims to be instrumental in keeping gas prices low. > FACT: Gore has voted on numerous occasions to raise the tax on gasoline. > In > his book "Earth In The Balance" Gore claims that the nation's Number One > enemy is the internal combustion engine. (That's the motor in your vehicle > that gets you to work and takes your kids to school) > > FICTION: Gore pretends to champion the rights of poor women to be tested > regularly for breast cancer with the most modern technology. > FACT: While giving a speech on the subject in September, Gore didn't know > what a mammogram was. > > FICTION: AL Gore promised Florida's senior citizens that they would > finally > have low-cost drugs with no interference from government. > FACT: Gore's plan calls for the creation of a huge federal agency that > would > tell you which doctor you are allowed to see in order to get the "special > rates". > > FACT: Al Gore told NBC's Lisa Meyers that he had never told a lie. When > Meyers pressed harder, "You've never told a lie?!" Gore said, "Not that I > know of." SOUND FAMILIAR? > > Election Day is ticking away. E-mail this to as many people as possible or > we > will be living in an Al Gore fantasyland! > >

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

You may have seen this... ---------------------- Forwarded by Kay Mann/Corp/Enron on 02/22/2001 09:24 AM --------------------------- From: Mark E Haedicke@ECT on 02/21/2001 03:17 PM Sent by: Janette Elbertson@ECT To: Alan Aronowitz/HOU/ECT@ECT, Roger Balog/HOU/ECT@ECT, Peggy Banczak/HOU/ECT@ECT, Sandi M Braband/HOU/ECT@ECT, Robert Bruce/NA/Enron@Enron, Teresa G Bushman/HOU/ECT@ECT, Bob Carter/HOU/ECT@ECT, Michelle Cash/HOU/ECT@ECT, Barton Clark/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT, Nancy Corbet/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ned E Crady/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Eddy Daniels/NA/Enron@Enron, Angela Davis/NA/Enron@Enron, Peter del Vecchio/HOU/ECT@ECT, Stacy E Dickson/HOU/ECT@ECT, Andrew Edison/NA/Enron@Enron, Shawna Flynn/HOU/ECT@ECT, Chris Gaffney/TOR/ECT@ECT, Robert H George/NA/Enron@Enron, Barbara N Gray/HOU/ECT@ECT, James Grace/Corp/Enron@ENRON, Mark Greenberg/NA/Enron@ENRON, Wayne Gresham/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Dan J Hyvl/HOU/ECT@ECT, Karen E Jones/HOU/ECT@ECT, Anne C Koehler/HOU/ECT@ECT, Alan Larsen/PDX/ECT@ECT, Dan Lyons/HOU/ECT@ECT, Bruce Lundstrom/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kay Mann/Corp/Enron@Enron, Jane McBride/AP/Enron@Enron, Travis McCullough/HOU/ECT@ECT, Lisa Mellencamp/HOU/ECT@ECT, Janet H Moore/HOU/ECT@ECT, Janice R Moore/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT, Cheryl Nelson/NA/Enron@Enron, Gerald Nemec/HOU/ECT@ECT, Marcus Nettelton/NA/Enron@ENRON, Limor Nissan/NYC/MGUSA@MGUSA, John Novak/SA/Enron@Enron, Francisco Pinto Leite/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Angeline Poon/SIN/ECT@ECT, David Portz/HOU/ECT@ECT, Dale Rasmussen/HOU/ECT@ECT, Coralina Rivera/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael A Robison/HOU/ECT@ECT, Daniel R Rogers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Elizabeth Sager/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT, Frank Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Lance Schuler-Legal/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Shari Stack/HOU/ECT@ECT, Carol St Clair/HOU/ECT@ECT, Carlos Sole/NA/Enron@Enron, Lou Stoler/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT, Steve Van Hooser/HOU/ECT@ECT, John Viverito/Corp/Enron@Enron, Ann Elizabeth White/HOU/ECT@ECT, Randy Young/NA/Enron@Enron, Stuart Zisman/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT, Kimberlee A Bennick/HOU/ECT@ECT, Martha Braddy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sarah Bruck/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Genia FitzGerald/HOU/ECT@ECT, Nony Flores/HOU/ECT@ECT, Linda R Guinn/HOU/ECT@ECT, Ed B Hearn III/HOU/ECT@ECT, Mary J Heinitz/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Kathleen Carnahan/NA/Enron@Enron, Deb Korkmas/HOU/ECT@ECT, Laurie Mayer/HOU/ECT@ECT, Matt Maxwell/Corp/Enron@ENRON, Mary Ogden/HOU/ECT@ECT, Debra Perlingiere/HOU/ECT@ECT, Larry Pardue/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert Walker/HOU/ECT@ECT, Kay Young/HOU/ECT@ECT, Merrill W Haas/HOU/ECT@ECT, Andrea Calo/SA/Enron@Enron, Brent Hendry/NA/Enron@Enron, David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Greg Johnston/CAL/ECT@ECT, Peter Keohane/CAL/ECT@ECT, Justin Boyd/LON/ECT@ECT, Edmund Cooper/LON/ECT@ECT, Mark Elliott/LON/ECT@ECT, Mark Evans/Legal/LON/ECT@ECT, Denis O'Connell/LON/ECT@ECT, Robert Quick/LON/ECT@ECT, Paul Simons/LON/ECT@ECT, Martin Rosell/OSL/ECT@ECT, Rahul Saxena/LON/ECT@ECT, Greg Johnston/CAL/ECT@ECT, Mark Powell/CAL/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Matthias Lee/SIN/ECT@ECT, Suzanne Adams/HOU/ECT@ECT, Connie Castillo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sheri L Cromwell/HOU/ECT@ECT, Margaret Doucette/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janette Elbertson/HOU/ECT@ECT, Kaye Ellis/HOU/ECT@ECT, Carolyn George/Corp/Enron@ENRON, Holly Keiser/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jan M King/HOU/ECT@ECT, Taffy Milligan/HOU/ECT@ECT, Pat Radford/HOU/ECT@ECT, Becky Spencer/HOU/ECT@ECT, Linda J Simmons/HOU/ECT@ECT, Dina Snow/Corp/Enron@Enron, Twanda Sweet/HOU/ECT@ECT, Brenda Whitehead/HOU/ECT@ECT, Yo Yamanishi/AP/Enron@Enron, Claudia Meraz/HOU/ECT@ECT, Reginald Shanks/HOU/ECT@ECT, Wendi Hoelscher/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, MaryHelen Martinez/NA/Enron@Enron, Sami Arap/SA/Enron@Enron, Luiz Watanabe/SA/Enron@Enron, Andrea Calo/SA/Enron@Enron, Patricia Dutra/SA/Enron@Enron, Karla Azevedo/SA/Enron@Enron, Nancy Muchmore/NA/Enron@Enron, Sandra Vassel/SA/Enron@Enron, Miguel Mendoza/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Fabian Valle/SA/Enron@Enron, Paula Porto/SA/Enron@Enron, Celina Ozorio/SA/Enron@Enron, Maria Pia Beccaccini/SA/Enron@Enron cc: Subject: Organizational Announcement We are pleased to announce organizational changes to the Enron South America legal department in response to the recent reorganization and realignment of the principal Enron Wholesale Services business units operating in the region, Enron Americas and Enron Global Assets. Randy Young, currently General Counsel of ESA, will be assuming new responsibilities within Enron. John Novak will become General Counsel of ESA, reporting to Mark Haedicke. The ESA legal department will be responsible for supporting all Enron Americas and Enron Global Assets businesses in the region. Additional legal resources, coordinated by Lance Schuler, will be provided from EWS Legal in Houston to support ESA's wholesale activities. John will also work closely with Bruce Lundstrom, General Counsel of EGA, to coordinate legal support with respect to the EGA businesses in the region. An organizational chart describing the new structure is attached. This new structure will enable us to continue to provide quality legal support across business lines within South America while improving coordination and providing additional support from Houston for Enron's existing operating businesses, as well as the new business development initiatives under way in the region.

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

Dave It looks like we hit a home run. ---------------------- Forwarded by John J Lavorato/Corp/Enron on 07/11/2000 10:18 AM --------------------------- From: Kevin M Presto @ ECT 07/11/2000 09:54 AM To: John J Lavorato/Corp/Enron@Enron cc: Subject: Bruce ---------------------- Forwarded by Kevin M Presto/HOU/ECT on 07/11/2000 09:47 AM --------------------------- George Hopley 07/11/2000 09:47 AM To: Kevin M Presto/HOU/ECT@ECT, Tom May/Corp/Enron@Enron cc: Subject: Bruce Ontario Power Generation and Bruce Power announce leasing agreement at Bruce Nuclear KINCARDINE, ON, July 11 /CNW-PRN/ - Ontario Power Generation (OPG) today announced it has entered into a major agreement with Bruce Power Partnership relating to the facilities at the Bruce nuclear site. Bruce Power is 95% owned by British Energy plc. The transaction provides an opportunity for the two main unions, the Power Workers' Union and The Society of Energy Professionals on the Bruce site, to subscribe to 5% of the equity. This public/private partnership involves a long-term lease agreement for the Bruce A (3076 MW-currently in lay-up), and Bruce B (3140 MW) facilities. The lease runs until 2018, with an option to extend for up to another 25 years. OPG will receive an initial payment of $625 M to be made in three installments. A first payment of $400 M will be made on closing subject to normal closing adjustments. The remaining $225 M will be paid in two installments of $112.5 M each. Bruce Power's annual payments include base and variable elements. The variable elements include a share of the net revenue, and supplementary payments for the management of used fuel. In total these payments are estimated to be about $150 M in calendar year 2002. Bruce Power will offer employment to all employees at the Bruce site, other than those being retained by OPG. Employees remaining with OPG include those that provide waste management and centralized nuclear operations support services. The agreement is expected to close, subject to Bruce Power obtaining the necessary licences, in the summer of 2001. "Today's announcement is good news for employees, the community, the electricity consumer and the shareholder" stated Ron Osborne, OPG President and CEO. "This agreement injects private equity into the Bruce facilities which in turn will provide new opportunities for employees and the community. It is also a major step towards opening the Ontario electricity marketplace to competition and providing electricity consumers with choice." Osborne noted that an additional benefit of the agreement allows OPG to concentrate on accelerating the performance improvements underway at its Darlington and Pickering nuclear facilities while the new company focuses on the Bruce. Nuclear safety continues to be of paramount importance for Ontario Power Generation, and safety has been a key tenet for British Energy. Both companies are committed to ensuring high safety performance standards. "We are delighted to be announcing the creation of a new company. Bruce Power will demonstrate that safety and commercial success go hand in hand," said Robin Jeffrey, Chairman and Chief Executive Officer of British Energy Canada Ltd. "We have a high regard for CANDU technology and for the skill of the staff at Bruce. We are confident that by working with the staff and the unions, Bruce Power can achieve world class safety and commercial performance." To reduce its market dominance, OPG is required by conditions in its operating licence granted by the Ontario Energy Board (OEB), to reduce its share of generating capacity to no more than 35 per cent of that available to the province 10 years after the market opens. British Energy was selected following an extensive worldwide competitive process over the last two years. They have significant operating experience and a proven safety track record with a range of nuclear reactor types. To close the transaction, Bruce Power will be required to secure licences from the Canadian Nuclear Safety Commission (CNSC) and the Ontario Energy Board. Bruce Power will be required to follow the stringent licensing and operating requirements established by CNSC, formerly the Atomic Energy Control Board. Ontario Power Generation is a major North American electricity generating company. OPG's principal business is the generation and sale of electricity to consumers in Ontario and into the interconnected markets. OPG's goal is to be a premier North American energy company, focused on low-cost power generation and wholesale energy sales, while operating in a safe, open and environmentally responsible manner. British Energy PLC is the UK's largest electricity generator. British Energy owns and operates 15 reactors in the UK and a further two in the United States through its joint venture, AmerGen. British Energy's goal is to be a worldwide electricity leader building on its "Safety First" culture and track record of commercial success. BACKGROUNDER INDEX ------------------ Safety: 1. OPG'S COMMITMENT TO NUCLEAR SAFETY 2. BRUCE NUCLEAR - SAFETY IS NUMBER ONE 3. INFORMATION ON CANDU REACTORS 4. EMERGENCY PLANNING IN ONTARIO Financial: 5. OPG/BRUCE POWER LEASE AGREEMENT 6. NUCLEAR USED FUEL, WASTE MANAGEMENT AND DECOMMISSIONING 7. CHRONOLOGY OF THE PUBLIC/PRIVATE PARTNERSHIP PROCESS Employees: 8. WHAT HAPPENS TO EMPLOYEES Transition: 9. REDUCING MARKET DOMINANCE 10. TRANSITION ARRANGEMENTS 11. NEXT STEPS General. 12. ONTARIO POWER GENERATION 13. QUICK FACTS ON BRUCE NUCLEAR POWER DEVELOPMENT SOURCE Ontario Power Generation Inc.

mark: Any thoughts on whether we should give in with respect to the consequential damages issue? Carol ---------------------- Forwarded by Carol St Clair/HOU/ECT on 04/17/2000 06:16 PM --------------------------- David Minns@ENRON_DEVELOPMENT 04/17/2000 01:38 AM To: Carol St Clair@ECT cc: Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: EnronOnline Carol, we have one remaining issue outstanding with United Energy on the ETA. They are still insisting on a exclusion of "consequential losses" from the indemnity given clause 4(a) of the ETA. Two questions Do we have a position on agreeing to exclude consquential losses from this clause? My own view is in this instance it is going to be somewhat "hit and miss" as what would be a consequential loss and what is not. That being said the general Enron position is to exclude consequential losses. In fact such a provision is already in the GTCs in respect of any Transaction. Hence if there was a Transaction consequentiallossess would then presumably be excluded in respect of a related breach of the ETA. Utilicorp is a substantial equity holder in United Energy. I understand they are trading through EnronOnline. Do we know what they have agreed? ---------------------- Forwarded by David Minns/ENRON_DEVELOPMENT on 04/17/2000 05:15 PM --------------------------- David Minns 04/12/2000 06:12 PM To: "Creek, Peggy" <[email protected]> @ ENRON cc: Paul Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Connell Burke/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: EnronOnline Peggy further my previous email. Two additional points; I believe it is best for us to move to replace the Deemed ISDA Agreement. This will provide a cleaner contractual basis for EnronOnline trades. We should be able to settle a ISDA Master Agreement quite swiftly using the existing commmercial terms in the Deemed ISDA. If you are concur with this course of action we will forward to you tomorrow a Schedule for review. In respect of Section 4(b) of the ETA we would be agreeable to add the following at its end: "unless such access, entry, omission or action arises from acts or omissions of Enron and its directors, officers, employees, agents or contractors.'' David Minns 04/11/2000 03:01 PM To: "Creek, Peggy" <[email protected]> @ ENRON cc: Paul Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: EnronOnline Peggy my apologies for not replying sooner but I was overseas. Let me respond to the points you raised. Deemed ISDA Agreement- We would be most happy to provide a letter that you could aknowledge that the Deemed ISDA Agreement is a master agreement for the purposes of the ETA. I would prefer not to make a formal amendment as this may exclude a subsequent Master Agreement from applying. Enron Australia Finance Pty Ltd. is the Enron counterparty for all Australian power trades. If that is your preference then access can be limited to only those products. You could write to us stating this is your position. However, we have found that counterparties have not found this necessary. Your EnronOnline Master User will set access levels for your individual traders. Many counterparties appoint a person from their Controls group (not a Trader) as their Master User. This gives them the flexibility to broaden/ reduce access themselves. Excluding "consequential loss" in this circumstance is quite broad but if we could work through some scenarios hopefully we could find some words to accomodate your concerns. When we last spoke you mentioned the concern here was the possibility that the password may be disclosed from other than a UE source ie Enron. I have talked this issue through with our systems people as to the nature of this exposure. What happens is that the password which is issued to a user is immediately changed after it is received from Enron. Hence the source of the password must be the relevant counterparty. Whether improper use is a result of the counterparty's negilence or some other cause such as an unauthorised use or disclosure by one of its personnel is not relevant. What is of concern that the loss would have resulted from or arose out of a Counterparty's "access to or utilisation of the Website". Perhaps you would give me a call so we may discuss any outstanding points. David Minns Senior Legal Counsel Phone 612 9229 2310 Fax 612 9229 2350 "Creek, Peggy" <[email protected]> on 03/31/2000 12:45:47 PM To: "'[email protected]'" <[email protected]> cc: Subject: EnronOnline David Further to our conversation this week regarding our outstanding issues in the Electronic Trading Agreement, UE suggests the following way foreward. Enron sends a letter to UE to be countersigned. This letter covers the following: * it is a variation to the ETA; * all Transactions entered through EnronOnline will be covered by the Deemed ISDA Master Agreement signed between UE and Enron Australia Finance and dated 8th Feb 1999; * Transactions at this stage will only be between UE and Enron Australia Finance; * amend clause 4(b) to exclude indemnification against consequential loss; * amend clause 4(b)(ii) of the ETA to remove the wording "whether or not Counterparty has authorized such access" and provide appropriate replacement wording that ensures UE is only liable where access is obtained through UE's negligence. Please let me know if Enron would agree to this. Regards Peggy

---------------------- Forwarded by David M Gagliardi/TTG/HouInd on 09/05/2000 08:03 AM --------------------------- "Michael Gagliardi" <[email protected]> on 09/05/2000 07:16:25 AM To: [email protected], [email protected] cc: Subject: True Orange Fax/E-M ail #82 ---------------------- Forwarded by Michael Gagliardi/Hou-ComOps/EnergyTrading/PEC on 09/05/2000 07:25 AM --------------------------- [email protected] on 09/03/2000 09:35:44 PM To: [email protected] cc: (bcc: Michael Gagliardi/Hou-ComOps/EnergyTrading/PEC) Subject: True Orange Fax/E-M ail #82 True Orange Fax/E-Mail Service Volume 8, Fax/E-Mail #82, Sunday, September 3, 2000 Jerry Scarbrough's True Orange, P. O. Box 26530, Austin, Texas 78755 - Phone 512-795-8536 The State of the Longhorns: Good and Getting Better My faxes are normally about hot breaking news, but this one is about the big picture, as I see it, on the state of the current Longhorn football team and on the recruiting front. First, let's look at the 2000 season prospects. The Longhorns are better equipped to handle all comers this year than they have been in a long, long time. The 2000 Texas defense is the best since 1991, when the defense was great, but the offense and kicking game were so bad that it resulted in a losing season and a new coaching staff. The Longhorn defense won't allow many teams to run the ball at all. The tackles, linebackers and defensive backs are killers against the run, and the young ends are getting better every practice. Sophomore DE Cory Redding is going to be a great one, and true freshman Kalen Thornton looks like he is going to be a quick developer on the other side. The offense has two great quarterbacks in Major Applewhite and Chris Simms, and, for those who say a two-quarterback system can't work, coach Mack Brown is quick to point out that he used a two-QB system twice at North Carolina and won 11 games one time and 10 the other. It also has some freshmen wide receivers who don't play like freshmen. Roy Williams and B. J. Johnson are ready for prime time already, and Sloan Thomas is getting there. They are all big and fast. Last year, Texas had one big wide receiver last year, but he wasn't very fast. Redshirt freshman Artie Ellis also is big and he's pretty fast, too. The Longhorns also have some capable running backs and an offensive line that definitely is a lot better than it was late last season. The only big cloud hovering over the offense is the question about whether they will be able to grind out yardage when they need to control the clock. I think they will be able to score and score quite a bit on everybody they play, but they probably will have to do it with big plays, rather than 16-play drives. After attending every practice during 2-a-days, I predict a 10-1 or 11-0 regular season record. * * * * Now, let's talk recruiting. I went to San Antonio to see the triple header in the Alamodome and am happy to report that Cedric Benson, the great Midland Lee running back who is the Longhorns' most recent commitment, is even better than he was last year. He's about 10 pounds bigger at around 198, and his coach, John Parchman, says he has lowered his time in the 40 from the high 4.5s to a consistent 4.4. He looked quicker than last year, and he was fast enough last year to shatter all the Class 5A rushing and scoring records. Running behind an all-new offensive line, he carried 14 times for 140 yards, including a 52-yard scoring run on his third carry of the game. He also had a pass reception for 36 yards. Lee beat a good Victoria Memorial team, 40-12. Memorial is a combination of the two Class 5A schools in Victoria, one of which went 8-3 last year. Fred Thrweatt, the 6-2, 300-pound Midland Lee defensive tackle who was a dominant force in the Class 5A championship game last year, was at it again Saturday. He was a tremendous run-stopper, who also harassed the Memorial QBs when they tried to pass. He says Texas has offered him, and I hope he accepts because, next to Killeen's awesome Tommie Harris, he is as good as any I have seen in Texas this year. DE Dwight Washington, 6-4, 232, is another Lee standout who will get a lot of Division I offers. He is an outstanding pass rusher. For your future's book, put down QB Chad Schroeder, 6-1, 170, 4.5, of Austin Westlake. He's the son of highly successful Westlake coach Ron Schroeder and he's only a junior. He has a good arm and really quick feet. But he broke a collarbone in the Chaps' hard-earned 17-10 victory over a tough San Antonio MacArthur team in the first game of that tripleheader. In the second game, which pitted the two undefeated Class 4A champions from last year, Texas City struck quickly and outlasted Stephenville, 39-33. * * * * FOOTBALL NOTES: The team returns to practice Monday after getting three days off to rest the players' tired legs. . . Derrick Curry, a fifth-year senior reserve defensive tackle, has quit the team. * * * * 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 - frequently with recruiting news. My E-Mail address is: [email protected]

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cant even go to the head. thanks for the offer anyway. JMF -----Original Message----- From: "Jacobucci, Scott" <[email protected]>@ENRON [mailto:IMCEANOTES-+22Jacobucci+2C+20Scott+22+20+3CScott+2EJacobucci+40ElPaso+2Ecom+3E+40ENRON@ENRON.com] Sent: Thursday, August 02, 2001 9:30 AM To: Forney, John M. Subject: RE: golf Jim Brysch and I are going to lunch at 11:45, can you join us? smj -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Thursday, August 02, 2001 9:29 AM To: Jacobucci, Scott Subject: RE: golf youre an animal jmf -----Original Message----- From: "Jacobucci, Scott" <[email protected]>@ENRON [mailto:IMCEANOTES-+22Jacobucci+2C+20Scott+22+20+3CScott+2EJacobucci+40ElPas [email protected]] Sent: Thursday, August 02, 2001 9:22 AM To: Forney, John M. Subject: RE: golf absolutely, it would be nice to have a foursome so they can't put a single with us. I will change the sunday tee time to a twosome but I am glad we will get to play 36 holes on Saturday. Scott -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Thursday, August 02, 2001 9:18 AM To: Jacobucci, Scott Subject: RE: golf Scott, The wife is out of town until Saturday night. I can play alot of golf on Saturday, but I need to spend time with the wife on Sunday. I will be available for the golf marathon on Saturday. I have one player for Saturday morning, but I dont have a player for Sat. afternoon yet, although I have another co-worker who is interested. Should I fill this spot as well? JMF -----Original Message----- From: "Jacobucci, Scott" <[email protected]>@ENRON [mailto:IMCEANOTES-+22Jacobucci+2C+20Scott+22+20+3CScott+2EJacobucci+40ElPas [email protected]] Sent: Thursday, August 02, 2001 8:29 AM To: Forney, John M. Subject: RE: golf John, I am setting up a tee time for Sunday 8/5 around 8-9 AM at Augusta Pines. I just wanted to confirm if you could play Saturday afternoon at TPC or Sunday morning at Augusta Pines? Talk to you soon, Scott -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Wednesday, August 01, 2001 12:16 PM To: Jacobucci, Scott Subject: RE: golf Scott, I heard that the TPC was in decent shape. Are you planning on playing on Saturday in the morning or afternoon? How many people do you have in the group? JForney 713-853-7160 -----Original Message----- From: "Jacobucci, Scott" <[email protected]>@ENRON [mailto:IMCEANOTES-+22Jacobucci+2C+20Scott+22+20+3CScott+2EJacobucci+40ElPas [email protected]] Sent: Wednesday, August 01, 2001 8:13 AM To: '[email protected]' Subject: golf John, Just checking to see if I have your email address correct. Did you find out anything on TPC? Scott ****************************************************************** This email and any files transmitted with it from the ElPaso Corporation are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. ****************************************************************** ********************************************************************** 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 email and any files transmitted with it from the ElPaso Corporation are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. ****************************************************************** ****************************************************************** This email and any files transmitted with it from the ElPaso Corporation are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. ****************************************************************** ****************************************************************** This email and any files transmitted with it from the ElPaso Corporation are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. ******************************************************************

My vote is to kill it. ---------------------- Forwarded by John J Lavorato/Corp/Enron on 12/02/2000 10:11 AM --------------------------- Raymond Bowen@ECT 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.

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LighTrade Aims For Bandwidth Boom With "Points" Monday, February 14, 2000 03:29 PM ?Mail this article to a friend By Michael Rieke HOUSTON (Dow Jones)--Washington, D.C. entrepreneur Ted Pierson is betting on a boom in bandwidth trading. His company, LighTrade Inc., will spend $20 million-$25 million this year to install and operate hardware to trade bandwidth, or space on telecom lines, in Atlanta, Chicago, Denver, Dallas, Miami, San Francisco, San Jose, Seattle and Washington, D.C. Bandwidth trading is growing, driven by increased demand by businesses for the Internet. In a report released last December, CIBC World Markets estimated that 20% of total bandwidth traffic, or $12 billion in revenues, could be traded in some manner within five years. Last week, Oklahoma energy company Williams Communications Group Inc. (WCG, news, msgs) announced plans to open a bandwidth trading unit. LighTrade will be the first company not affiliated with a larger energy or telecommunications concern to develop the trading sites, known as pooling points, Pierson told Dow Jones Newswires. The points connect telecommunications carriers, allowing data to move from one network to another. They are installed in "telecom hotels," buildings that house carrier facilities, and essentially consist of a Lucent Technologies Inc. (LU, news, msgs) bandwidth manager about the size of a tall, narrow refrigerator. Enron Broadband Services, a unit of Enron Corp. (ENE, news, msgs), established the first two points last year in New York and Los Angeles. It plans to build another in London this year. Last year, Enron Corp. proposed trading bandwidth under a standardized contract. It executed the first trade under the contract in December, buying space on a monthly basis on a New York-Los Angeles line from Global Crossing Ltd. of Bermuda. Forrester Research Inc., a Cambridge, Mass.-based technology research firm, has charged that Enron's ownership of pooling points prevents neutrality in bandwidth trades. Having an independent company like LighTrade operate points will help the bandwidth trading market get off the ground, said Stephen Kamman, a telecommunications industry analyst for CIBC World Markets. It's a "very positive" development for the bandwidth trading market, said Tom Gros, vice president of international bandwidth trading for Enron. "This is the first of what I think will be at least a few others who are interested in building pooling points that meet the Enron specifications for the open trading of bandwidth," Gros said. The industry has been trading bandwidth without a standardized contract for years. Deals have typically taken weeks or months to negotiate. Companies must start from scratch with each deal, negotiating price, quantity, length of contract and quality of service. In the past, deals have been long-term, sometimes as long as 20 years. But with the cost of bandwidth along some routes declining 15%-20% a year, such terms are less attractive. Enron has also called on telecommunications companies to form a bandwidth trading organization, an independent body that will decide on standard terms and conditions for trading. Two groups in London and one in the United States are vying to form such a group. LighTrade chose pooling point sites based on telecommunications traffic, Pierson said. Long-range plans call for the company to have sites in the 50 U.S. cities that develop the most traffic. But the company's pace building a network of points will depend on how quickly the telecommunications industry can decide on standards for trading bandwidth as a commodity. LighTrade wants to install points in Boston, Houston, Las Vegas, Memphis and Phoenix in 2001, Pierson said. It is eyeing a move into international markets as early as next year, if the market will support it. Western Europe is a likely starting point, with Paris and Frankfurt possible sites. Eventually, LighTrade could connect Miami to a South American city like Rio de Janeiro or Sao Paulo, and build Asian pooling points in sites like Tokyo and Osaka. The company raised financing from private investors in two rounds last year and is now looking for investment from venture capital companies. In addition to reaching an agreement with Lucent Technologies to use its bandwidth managers, LighTrade has another connection to the high-tech company. William Plunkett, a senior vice president at Lucent, is on LighTrade's board of directors. Pierson declined to say whether Lucent would invest in his company. LighTrade isn't Pierson's first startup company. The telecommunications attorney founded Advanced Radio Telecom (ARTT, news, msgs), a NASDAQ-traded company that owns and operates broadband wireless metropolitan area networks. That company now has market capitalization of $800 million. Pierson has commitments to tie pooling points into the networks of three major telecommunications carriers, he said. He wouldn't identify the companies. He said he doesn't know of any competitors building pooling points, but he expects others to enter the market. He and his investors are taking a chance starting a company to develop pooling points because they don't know how quickly the market will develop, he said. "But I wouldn't be in it if ... I did not think this would be a very significant economic return," Pierson said. -By Michael Rieke 1-713-547-9207 [email protected]

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 01/21/2000 05:03 PM --------------------------- Enron North America Corp. From: Press Release @ ENRON 01/21/2000 12:51 PM To: All Enron Worldwide cc: Subject: ENRON HOSTS ANNUAL ANALYST CONFERENCE PROVIDES BUSINESS OVERVIEW AND GOALS FOR 2000 HOUSTON - Enron Corp. 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.
8 ## 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.

EnronOnline Trade Counts and Volume for May 03, 2001 EXTERNAL INTERNAL TOTAL COUNTRY COMMODITY CATEGORY COUNT QTY COUNT QTY COUNT QTY UNIT OF MEASURE Austria Power Physical 16 23,100 - - 16 23,100 MWh Belgium Natural Gas Physical 8 285,000 - - 8 285,000 MMBtu Canada Natural Gas Financial 6 3,160,000 10 3,948,027 16 7,108,027 MMBtu Canada Natural Gas Physical 272 11,597,928 - - 272 11,597,928 MMBtu Canada Power Financial 23 17,725 - - 23 17,725 MWh (Canada) France Power Physical 3 26,400 - - 3 26,400 MWh Germany Power Physical 112 2,331,665 - - 112 2,331,665 MWh Norway Power Financial 30 387,048 - - 30 387,048 MWh Singapore Crude Financial 1 50,000 - - 1 50,000 Barrel Singapore Oil Products Financial 1 5,000 - - 1 5,000 mt Switzerland Power Physical 39 12,432 - - 39 12,432 MWh United Kingdom Crude Financial 7 175,000 4 100,000 11 275,000 IPE Barrels United Kingdom LPG Financial 3 14,000 - - 3 14,000 mt United Kingdom Metals Financial 687 38,285 102 1,500 789 39,785 LME Registered mt Lot United Kingdom Natural Gas Physical NBP 87 10,211,020 5 268,560 92 10,479,580 MMBtu United Kingdom Natural Gas Physical NBP Option 1 920,000 - - 1 920,000 MMBtu United Kingdom Oil Products Financial 22 72,500 - - 22 72,500 IPE mt United Kingdom Power Physical 5 252,000 - - 5 252,000 MWh United Kingdom Sea Freight Financial 1 15 - - 1 15 Sea Freight Lots USA Crude Financial 270 13,080,000 161 7,255,000 431 20,335,000 Barrel USA Crude Financial Option 1 50,000 7 325,000 8 375,000 Barrel USA Crude Physical 5 390,000 - - 5 390,000 Barrel USA Gas Pipeline Capacity Physical 1 10,000 - - 1 10,000 MMBtu USA LPG Financial 10 190,000 - - 10 190,000 Gallon USA LPG Physical 4 45,000 - - 4 45,000 Gallon USA Lumber Financial 2 1,200 - - 2 1,200 Thousand Square Feet USA Lumber Physical 5 5 - - 5 5 Thousand Board Feet USA Natural Gas Financial 832 326,852,341 498 250,629,399 1,330 577,481,740 MMBtu USA Natural Gas Financial Option 16 15,500,000 43 42,000,000 59 57,500,000 MMBtu USA Natural Gas Physical 1,905 18,413,180 32 156,044 1,937 18,569,224 MMBtu USA Oil Products Financial 10 227,262 4 1,310 14 228,572 Barrel USA Paper Physical 3 1,500 - - 3 1,500 Metric Tons (+/- 5%) USA Paper Physical 1 15 - - 1 15 Short Tons (+/- 5%) USA Petchems Financial 1 60,000 - - 1 60,000 Gallon USA Power Financial 29 329,456 3 2,411 32 331,866 MWh USA Power Physical 480 5,169,032 99 2,089,727 579 7,258,758 MWh USA Rate and Currency Financial - - 4 9,400,000 4 9,400,000 EUR/1 USA Rate and Currency Financial - - 3 903,548 3 903,548 USD/1 USA Weather Financial 2 4 - - 2 4 Cooling Degree Day 4,901 975 5,876

---------------------- Forwarded by David M Gagliardi/TTG/HouInd on 09/26/2000 08:12 AM --------------------------- [email protected] on 09/26/2000 07:11:29 AM To: [email protected], [email protected], [email protected] cc: Subject: True Orange Fax/E-Mail #90 ---------------------- Forwarded by Michael Gagliardi/Hou-ComOps/EnergyTrading/PEC on 09/26/2000 07:21 AM --------------------------- [email protected] on 09/25/2000 06:57:31 PM To: [email protected] cc: (bcc: Michael Gagliardi/Hou-ComOps/EnergyTrading/PEC) Subject: True Orange Fax/E-Mail #90 True Orange Fax/E-Mail Service Volume 8, Fax/E-Mail #90, Monday, September 25, 2000 Jerry Scarbrough's True Orange, P. O. Box 26530, Austin, Texas 78755 - Phone 512-795-8536 UT-OU Set for 11 A.M. ABC Kickoff; Brown Laments Injured Tackles The Texas-Oklahoma game in Dallas has been selected for an ABC telecast and will begin at 11 a.m. on October 7. I told you several weeks ago I thought that would happen, and now it is official. It won't go to the entire nation, but it will go to more than just a normal regional. It is what they call a "split national game," which means that game and another game will divide the nation's viewing, presumably on close to a 50-50 basis. If you can't make the game and want to watch it on TV, I would suggest you call your cable company to see if they are carrying the UT-OU game. If you are in the lower half of the country, the chances are pretty good that it will be on in your area. * * * * Coach Mack Brown said at his Monday news conference freshman WR Roy Williams "should be ready to play this week and all the others are questionable." Williams suffered a bruised arm early in the game, and Brown said he is feeling good enough to practice when the team resumes drills on Tuesday. But he said DT Shawn Rogers, who suffered a sprained ankle, is among those who are questionable, along with two other DTs, Stevie Lee (foot) and Ryan Haywood (shoulder). "We are really thin at defensive tackle," he said. With 230-pound Reggie White of Oklahoma State averaging 5.4 yards per carry and 127.3 yards per game (No. 2 in the Big 12, No. 11 in the nation), primarily running between the tackles, Brown said the list of limping tackles is a major concern. He said when Rogers teams with All-American Casey Hampton at the tackles, the Longhorns are very hard to run against. "They are the best, as a pair, that I've been around," he said. "They are the best we've coached or played against." Redshirt freshman Marcus Tubbs played well in Rogers' place, Brown said, "but we need to get Shawn back." He also said Rogers is good enough that he could miss most of the practices this week and still be able to play at a high level if his ankle permits it. Brown said Hampton and Tubbs are the starters, with little used substitute Miguel McKay the only healthy DT in reserve. He said he is hoping Lee's foot improves enough to allow him to play, but said the coaches are "going to talk to some of the kids" to see who might want to help out at tackle. He said sophomore Cole Pittman, a former DT, and true freshman Kalen Thornton are both 270-pound DEs who could pinch hit at tackle. "Reggie White will be a big test for us, especially if Shawn can't play," he said. * * * * RECRUITING NOTES: Two national blue-chippers took their official visits to Texas last weekend. FB James Buchanan of Sarasota, Fla., Cardinal Mooney, got home late Sunday night and DL Kaelen Jakes of Valencia HS in Placentia, Cal., got home Monday morning. Buchanan said he met with coach Brown for about an hour and he said Brown told him he needs to know as soon as possible what his plans are "so I could let them know if they needed to look somewhere else for a fullback." He said he really enjoyed his visit, and said he was pleasantly surprised to find that the UT business school is ranked No. 5 in the country. "I had a really good time," he said. "The players and coaches were really down to earth, but I want to visit Florida (on Oct. 6) and I want to get back to Florida State again before I decide anything." He said Texas "is right up there. I really like the Longhorns." Jakes, who lived in Plano when he was in junior high, said he had "forgotten how friendly people are in Texas and how much they like their football." He said he had a great time, but also wants to take another visit or two before deciding anything. The Longhorns have 16 commitments and probably will sign 22 to 25 players. * * * * BASEBALL RECRUITING: The Longhorn baseball team got a commitment Monday from Donald Lavinski, 6-4, 205, a hard-throwing righthanded pitcher from Class 2A state champ Weimar. He was 14-1 last season and averaged almost two strikeouts per inning. He has good control and walked only 25 batters in 95 innings. He has been clocked as high as 93 miles per hour. He had an 0.70 ERA. He visited Texas last weekend. * * * * My next fax/e-mail 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 ?frequently with recruiting news. My E-Mail address is: [email protected]

FYI - Scroll below for meeting conclusion and next steps. Marie ----- Forwarded by Marie Hejka/Corp/Enron on 11/30/2000 06:27 PM ----- Marie Hejka 11/30/2000 05:34 PM To: David Gossett/Enron Communications@Enron Communications, Anthony Mends/Enron Communications@Enron Communications, Brandon Rigney/Corp/Enron@ENRON, Allen Elliott/HOU/ECT@ECT cc: Bryan Powell/HOU/ECT@ECT, George Wasaff/NA/Enron@Enron, John Gillespie/Corp/Enron@ENRON Subject: KM Task Force Content Strategy Meeting Thank you for your participation in yesterday's meeting. Please review the below meeting notes. Sincerely, Marie Hejka 11/29/00 Content Strategy Meeting Notes Attendees: Allen Elliott - mynetwork.com David Gossett - mywEBSource.com Marie Hejka
) KM Task Force Chair Anthony Mends - mywEBSource.com Brandon Rigney
) my.home.enron.com Meeting Details. The above group met to discuss the content strategy for the KM Task Force portal. Our intention is to synergize the collective intelligence of these teams to develop a best practices portal. The task force is in a unique position because the portal we will develop from is Bryan Powell
,s mynetwork.com which although it largely reflects Brandon Rigney
,s my.home.enron.com, it does not reflect the characteristics requested by the KM pilot executive sponsors and task force members. The question to ask is: are the characteristics identified by the KM pilot executive sponsors and task force members the characteristics we should include in a portal? Further analysis is required to conclude what user needs are before we can determine what to include in a portal. The team agreed that a portal is relatively easy to develop. What is more important and challenging is the process, established perhaps by a centralized KM effort, by which information or content is made available to all given portals. It is the content accessible through a portal which determines the success of the portal. Yahoo.com users, through a minimal number of starting points, may access some 6000 containers of information. For our project, it has not been determined what information (what content) needs to be accessed from a portal. The answer to this question should predict what front end buttons are most important to place on the initial dashboard of the portal. Does the task force want to enter in to the business of hashing out what specific content to make available through the portal? No, we have neither the time nor the responsibility to undertake this. But, how then, does the task force determine what the initial dashboard will look like if we don
,t have an understanding of what content users actually need most to access? The requirements phase should predict this. What is most challenging about content? The answer: locking down the containerable information (content) to bridge to portals. Information needs to be syndicated. In order for it to be syndicated, it must be in an appropriate container.
&Containerable
8 information is information that can be shown as a channel. In other words, containerable information is information that can be accessed from the portal. Not all information on a given website is containerable and available to be pulled by portals. Editorial assistance is required to make certain information is contained. A KM strategy should propose a method to identify, develop and maintain information a portal can capture. Meeting Conclusion. The development of any business structure should be driven by business needs. Given business needs vary from Business Unit to Business Unit and person to person, the task of developing a portal as the single interface for all Enron Business Units is large. Consider the following diagram as a high level plan we may reference to develop the content strategy for a best practices portal. Requirements Phase Design Phase Build Phase Test Phase Launch Phase We are currently in the requirements phase of this project. Although multiple, personalized portals have been developed, unveiled and implemented, we are still gathering requirements to create a best practices portal. The task force is chartered with the responsibility to develop a Knowledge Management proposal. In this proposal, we may consider the process through which containerable information is identified, developed, and maintained. In the meantime, the content strategy team is available for the task force members to consult. The content strategy team will help Bryan Powell
,s team shape mynetwork.com. With respect to content strategy, some of the responsibilities a KM proposal should review include: ? A plan to develop a process to determine what information is important to contain ? A plan to develop a process to identify owners of containers ? A plan to develop a process for teaching people how to build containers ? A plan to develop a process for cleaning up data ? A plan to develop a process for inventorying data on websites ? A plan to develop a process for inventorying data on the
&O
8 drive and other assets ? A plan to develop a process for creating a consulting portal kit whereby specific needs of communities are identified and reflected in a best practices portal ? A plan to develop a process for shutting off old channels (i.e. email from Office of the Chairman) and turning on new channels (i.e. portal delivery of Office of the Chairman information) Next Steps. Identify content strategy
&to do
,s
8 for the requirements phase. Identify owners of content strategy
&to do
,s
8 for the requirements phase. Establish weekly meetings for content strategy team. Content strategy team members gain authorization from management to support task force.

----- Forwarded by Jeff Dasovich/NA/Enron on 03/14/2001 04:53 PM ----- Jean Munoz <[email protected]> 03/14/2001 03:44 PM To: Katie Kaplan <[email protected]>, "'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]>, "'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]>, "'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]>, "Carol H Hudson (E-mail)" <[email protected]>, steven kelly <[email protected]>, "'Anne Kelly (E-mail)'" <[email protected]>, "'Chuck Cole (E-mail)'" <[email protected]>, "'Delany Hunter (E-mail)'" <[email protected]>, "'DJ Smith (E-mail)'" <[email protected]>, "'Hedy Govenar (E-mail)'" <[email protected]>, <[email protected]>, "'Maureen OHaren (E-mail)'" <[email protected]>, "'Mike Monagan (E-mail)'" <[email protected]>, "'Phil Isenberg (E-mail)'" <[email protected]>, "'Robert Ross (E-mail)'" <[email protected]>, "'Ron Tom (E-mail)'" <[email protected]>, "'Scott Govenar (E-mail)'" <[email protected]>, "'Susan Mccabe (E-mail)'" <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]> cc: Subject: IEP responds to Burton/Dunn investigation on market manipulation As you know, ?Senator Burton held a press conference announcing Joe Dunn chair of new senate committee to investigate energy market manipulation in the wholesale energy market. ?Other members serving on the committee include: ?Debra Bowen, Martha Escutia, Maurice Johannessen, Sheila Kuehl, Bill Morrow and Byron Sher. The Committee's information gathering activities will begin immediately, and the first hearing of the committee is planned for the first week in April. (press release attached) IEP responded with the following statement, and Jan responded to TV, Radio and Print media immediately following the news conference at the state capitol. Thanks, Jean -- Jean Munoz McNally Temple Associates, Inc. 916-447-8186 916-447-6326 (fx) ______________________________________________________________________________ _____________ Contact: ?Jean Munoz ??????????????????????????????????????????????????????FOR IMMEDIATE RELEASE ????????????????916-447-8186 ??????????????????????????????????????????????????March 14, 2001 Statement by Jan Smutny-Jones, Executive Director of Independent Energy Producers, in Response to State Senate Energy Probe "We understand that it is the responsibility of the legislature to ensure that California ratepayers are protected
. and we will fully cooperate, as we have with other investigations, because we have nothing to hide. "We believe this investigation will find nothing except that power producers have been working around-the-clock to help keep the lights on in California. ?In fact, there have already been several investigations by the Federal Energy Regulatory Commission the Public Utilities Commission and the California Independent System Operator
. and they have found no evidence of withholding or wrong doing. "As we have continued to state: the industry does not condone business practices that lead to unreasonable prices. ?It is our objective to help create a stable regulatory environment in which robust retail markets can flourish to protect ratepayers. "This crisis can only be resolved if we all work together to find solutions and stop pointing fingers, which only creates an unstable political and regulatory environment which will do nothing to increase supply or reduce demand in California. "If this turns into, in fact, a
@witch-hunt? against generators who have been providing electricity to California for months despite being owed billions of dollars, my only question is who in their right mind would come to California and invest in building new power plants? ?This sends a dangerous and chilling signal to not only power providers, but anyone doing business or planning to do business in California." # ????????# ???????# - Burton Press Release

May 17, 2000 Via Internet MEMORANDUM TO: Interested Clients FROM: John & Hengerer RE: Commission Meeting -- May 17, 2000 At today's meeting, the Commissioners approved the consent agenda and then discussed the following items. ELECTRIC MATTERS Alliance Companies, et al., Docket Nos. ER99-3144 In December 1999, the Commission issued an order conditionally authorizing the formation of the Alliance RTO. At today's meeting, the Commissioners denied (by a margin of 3 to 1, Commissioner Hebert dissenting) rehearing of the December 1999 order. The Commissioners also unanimously rejected (Commissioner Massey concurring) Alliance's compliance filing. In its original filing, Alliance proposed allowing each of its 5 active owners to retain up to a 5 percent ownership interest in the RTO (up to 25 percent total ownership by active owners). The December 1999 order rejected this proposal as contrary to the independence principle outlined in Order No. 2000, which states that active ownership should be limited to a total of 15 percent unless special circumstances are shown. Rejecting requests for rehearing, the majority concluded that Alliance had failed to justify active member ownership in excess of 15 percent. Dissenting, Commissioner Hebert argued that (i) the 15 percent benchmark is arbitrary and should not be viewed as creating a binding legal requirement. and (ii) limiting active ownership will provide a disincentive for other utilities to join the RTO. 3 The Commissioners also rejected Alliance's compliance filing submitted to satisfy the terms of the December 1999 order. In addition to failing to correct the active ownership issue outlined above, the Commissioners faulted Alliance for not eliminating pancaked rates and for not addressing issues associated with the RTO's scope and configuration. Commissioner Massey indicated that he would write a concurrence to stress that Aseams@ agreements do not negate the need to review the RTO's scope and configuration to ensure that it is properly designed and sized. Southwest Power Pool, Docket No. EL00-39 The Commissioners unanimously rejected, as failing to meet the requirements of Order No. 2000, the Southwest Power Pool's (SPP) RTO proposal. Commissioner Massey, who moved the item to the discussion agenda, cited the following shortcomings in SPP's proposal: (i) operational control of transmission facilities was not turned over to the RTO; (ii) the RTO's proposed open-access transmission tariff did not comply with Order No. 2000; (iii) no real-time balancing market had been proposed; (iv) lingering concerns with the RTO's governance structure; and (v) the RTO's proposed scope and configuration are inadequate. Commissioner Massey encouraged the SPP to join other entities seeking to form an RTO, or consider merging with the Midwest ISO. Notice of Interim Procedures to Support Reliability and Request for Comments, Docket No. EL00-75 The Commissioners unanimously approved short-term procedures designed to address Summer 2000 reliability concerns. The approved measures provide for (i) streamlining FERC procedures to promote on-site, distributed generation, (ii) waiving prior-notice requirements for load-reduction agreements, (iii) improving demand-side price signals, (iv) requiring more extensive OASIS posting of available transmission capacity; and (v) making Commission Staff more available to the industry to address reliability concerns. Comments on the proposed short-term measures are due by June 2, 2000. Additionally, agreeing that the short-term procedures are very minimal in nature, the Commissioners requested comments on long-term reliability issues. Comments are due by June 30, 2000. Finally, Commissioner Hebert indicated that he would write a separate concurrence to express his belief that competitive forces are the answer to reliability concerns and to criticize the Commission for not eliminating artificial price caps and promoting competitive rates. Commissioner Hebert's accusation that the Commission was more concerned with politics than good policy touched off a heated debate, with Chairman Hoecker reciting FERC successes and Commissioner Massey scoffing at Commissioner Hebert's suggestion that price caps were to blame for generation shortages. GAS MATTERS Regulation of Short-Term Natural Gas Transportation Services, Regulation of Interstate Natural Gas Transportation Services, Docket Nos. RM98-10, RM98-12 The Commissioners unanimously addressed and generally denied requests for rehearing of Order No. 637. Finding that Order No. 637 strikes a good balance between competing interests, the Commissioners indicated that their order would, with several exceptions, uphold the mandates of the order. The Commissioners expressly noted that requests for rehearing of right-of-first-refusal (ROFR) roll-up issues would be denied. Order No. 637 states that, if a pipeline is fully subscribed, a party wishing to exercise a ROFR will be required to match competing bids, even if a competing bid exceeds the maximum rate for the capacity. Revisions and clarifications of Order No. 637 approved by the Commissioners at today's meeting include: (1) shippers with multi-year contracts at max rates for seasonal service will retain their ROFR; (2) pipelines will be required to post available capacity within one hour of each nomination cycle, rather than within one day as directed by Order 637; (3) short-term capacity release transactions must be posted within one hour of the first nomination under the contract, rather than upon the execution of the contract as stated in Order No. 637; and (4) Order No. 637's OFO penalty and imbalance provisions will be clarified in the Commission order. Although comments at today's meeting were brief, we anticipate a lengthy order addressing the numerous issues raised by parties in their requests for rehearing.

----- Forwarded by Tana Jones/HOU/ECT on 11/15/2000 02:52 PM ----- Tana Jones 11/14/2000 08:01 AM To: Marie Heard/Enron Communications@Enron Communications, Mark Taylor/HOU/ECT@ECT cc: Subject: FW: Good luck America ----- Forwarded by Tana Jones/HOU/ECT on 11/14/2000 08:01 AM ----- Jon Chapman 11/14/2000 03:42 AM To: Tana Jones/HOU/ECT@ECT, Peter Keohane/CAL/ECT@ECT cc: Subject: FW: Good luck America And so it goes on ......... ---------------------- Forwarded by Jon Chapman/LON/ECT on 14/11/2000 09:44 --------------------------- [email protected] on 14/11/2000 05:21:06 To: [email protected], [email protected], [email protected] cc: Subject: FW: Good luck America David Davies National Manager - Chubb Traffic Services 02 9930 4318 / 0401 77 66 18 ---------------------- Forwarded by David Davies/NSW/Chubb on 14/11/2000 03:22 PM --------------------------- Tony Ayers <[email protected]> on 14/11/2000 04:15:44 PM To: "David Davies (E-mail)" <[email protected]>, "Mark Langan (E-mail)" <[email protected]>, "Patrick O'Callaghan (E-mail)" <[email protected]>, "Tony Ayers (E-mail)" <[email protected]> cc: Subject: FW: Good luck America -----Original Message----- From: [email protected] <mailto:[email protected]> [SMTP:[email protected]] <mailto:[SMTP:[email protected]]> Sent: Tuesday, 14 November 2000 15:13 To: [email protected]; <mailto:[email protected];> [email protected]; <mailto:[email protected];> [email protected]; <mailto:[email protected];> [email protected] <mailto:[email protected]> Subject: FW: Good luck America These are some quotes attributed to the would be American President George Bush Perhaps this is how upper management speak? Subject: Good luck America.... "The vast majority of our imports come from outside the country." ....George W. Bush, Jr. "If we don't succeed, we run the risk of failure." ....George W. Bush, Jr. "Republicans understand the importance of bondage between a mother and child." ....Governor George W. Bush, Jr. "Welcome to Mrs. Bush, and my fellow astronauts." ....Governor George W. Bush, Jr. "Mars is essentially in the same orbit...Mars is somewhat the same distance from the Sun, which is very important. We have seen pictures where there are canals, we believe, and water. If there is water, that means there is oxygen. If oxygen, that means we can breathe." ....Governor George W. Bush, Jr., 8/11/94 "The Holocaust was an obscene period in our nation's history. I mean in this century's history. But we all lived in this century. I didn't live in this century." ....Governor George W. Bush, Jr., 9/15/95 "I believe we are on an irreversible trend toward more freedom and democracy - but that could change." ....Governor George W. Bush, Jr., 5/22/98 "One word sums up probably the responsibility of any Governor, and that one word is 'to be prepared'." ....Governor George W. Bush, Jr., 12/6/93 "Verbosity leads to unclear, inarticulate things." ....Governor George W. Bush, Jr., 11/30/96 "I have made good judgments in the past. I have made good judgments in the future." ....Governor George W. Bush, Jr. "The future will be better tomorrow." ....Governor George W. Bush, Jr. "We're going to have the best educated American people in the world." ....Governor George W. Bush, Jr., 9/21/97 "People that are really very weird can get into sensitive positions and have a tremendous impact on history." ....Governor George W. Bush. "I stand by all the misstatements that I've made." ....Governor George W. Bush, Jr. to Sam Donaldson, 8/17/93 "We have a firm commitment to NATO, we are a part of NATO. We have a firm commitment to Europe. We are a part of Europe." ....Governor George W. Bush, Jr. "Public speaking is very easy." ....Governor George W. Bush, Jr. to reporters in 10/9 "I am not part of the problem. I am a Republican" ....Governor George W. Bush, Jr. "A low voter turnout is an indication of fewer people going to the polls." ....Governor George W. Bush, Jr "When I have been asked who caused the riots and the killing in LA, my answer has been direct & simple Who is to blame for the riots? The rioters are to blame. Who is to blame for the killings? The killers are to blame." ....George W. Bush, Jr. "Illegitimacy is something we should talk about in terms of not having it." ....Governor George W. Bush, Jr., 5/20/96 "We are ready for any unforeseen event that may or may not occur." ....Governor George W. Bush, Jr., 9/22/97 "For NASA, space is still a high priority." ....Governor George W. Bush, Jr., 9/5/93 "Quite frankly, teachers are the only profession that teach our children." ....Governor George W. Bush, Jr., 9/18/95 "The American people would not want to know of any misquotes that George Bush may or may not make." ....Governor George W. Bush, Jr. "We're all capable of mistakes, but I do not care to enlighten you on the mistakes we may or may not have made." ....Governor George W. Bush, Jr. "It isn't pollution that's harming the environment. It's the impurities in our air and water that are doing it." ....Governor George W. Bush, Jr. "[It's] time for the human race to enter the solar system." ....Governor George W. Bush, Jr. ************************************************************* This email and any files attached are considered confidential and intended solely for the use of the individual or entity to whom this email is addressed. If you have received this email in error please notify : ( [email protected] ) This footnote also confirms that the above email has been scanned for the presence of computer viruses. *************************************************************

----- Forwarded by Jeff Dasovich/NA/Enron on 02/15/2001 08:15 AM ----- Joseph Alamo 02/14/2001 11:50 AM To: Paul Kaufman/PDX/ECT@ECT, Susan J Mara/NA/Enron, Sandra McCubbin/NA/Enron, Jeff Dasovich/NA/Enron cc: Lysa Akin/PDX/ECT@ECT Subject: Sac Bee, Tues 2/13 Editorial: "Lawmakers failed to respond to energy alarm" ---------------------- Forwarded by Joseph Alamo/NA/Enron on 02/14/2001 09:48 AM --------------------------- Joseph Alamo 02/13/2001 04:57 PM To: Miyung Buster/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Sac Bee, Tues 2/13 Editorial: "Lawmakers failed to respond to energy alarm" Lawmakers failed to respond to energy alarm (Published Feb. 13, 2001) Now that state lawmakers have begun an inquiry to determine what caused California's energy crisis, they might want to take a look in the mirror. Not at the infamous 1996 vote that triggered the partial deregulation of the electricity industry. The remains of that law have been picked over enough. Besides, most of the people who voted for it have already left the Legislature, thanks to term limits. But there was another vote last June, far less heralded and still little known. It came just as warning bells were starting to signal the onset of what has since become a crippling crisis. The Legislature not only ignored those alarms, it stood in the way of the people who were trying to respond. Why it did so remains something of a mystery. How it did so says a lot about the way the Legislature works. At issue was the now-defunct California Power Exchange. This was a state-mandated auction, until recently the only place that utilities were allowed to shop for the electricity that lights our homes and businesses. By last June there were ominous signs that the power exchange, known as the PX, wasn't working right. Prices were higher than anyone expected. The supply of energy seemed thinner than was reasonable. There were enormous overhead costs. The power exchange was a bit like having a single automobile auction where everyone who wanted to buy or sell a car had to do business. In times of surplus this might work, because the sellers would underbid each other to unload their cars to reluctant buyers. But in a shortage, the opposite would be true. Buyers, with no place else to go, would pay ever-higher prices to get what they needed. That's what was happening with electricity. A majority of the Public Utilities Commission decided to do something about it. The PUC voted 3-2 to allow privately formed exchanges to compete with the state-sanctioned auction. At least two private exchanges were promising to deliver more power at lower prices with fewer administrative costs. The commission wanted to let them give it a try. But before the PUC could even implement the change, the Legislature intervened. Acting with unusual speed, lawmakers overturned the commission's decision. Assembly Bill 2866 was a classic legislative bill, in the worst sense. A cobbled-together collection of 28 unrelated items, it was drafted in a hurry as a companion to the new state budget. One of the bill's many parts was a provision to subsidize California's film industry. That got a lot of attention. The paragraph overturning the PUC's attempt to head off the energy crisis got next to none. The bill was amended in the Senate on June 15 and approved later that day. The Assembly passed it the next day, and Gov. Gray Davis signed it. The analysis of the bill that members saw in the Assembly was cryptic and misleading. It said the bill would authorize the PUC to study the idea of allowing competition for the state-mandated exchange. That was true as far as it went. But the analysis omitted the fact that the bill's real intent was just the opposite: to reverse a PUC decision and prohibit competing exchanges for at least a year. "California had made a big investment in the power exchange," said Sen. Jim Brulte, R-Rancho Cucamonga, who was one of probably just a handful of legislators who knew about the provision before it became law. "The PUC decision would have put that investment at risk." Which is another way of saying that the power exchange wasn't working and had to be protected from competition. Richard Bilas, the PUC commissioner who was pushing the hardest for the reform the Legislature overturned, said he never liked the idea of mandating a single exchange in which the utilities would have to buy all their power. Bilas wasn't a member of the commission when the PUC restructured California's electricity industry. But he said the result reminded him of the former Soviet Union, where leaders declared that they were going to move to a market economy and then appointed a group of central planners to figure out how those markets should function. "Markets are not based on fictitious or created exchanges," he said. "Markets are based on buyers and sellers coming face to face to negotiate a deal. You don't establish beforehand something that may not be necessary." It's still not clear whether opening up the markets would have prevented the price spikes that have since nearly bankrupted the utilities, forcing the state to step in and buy electricity to keep the lights on. It might be a stretch to suggest that any single policy change could have prevented the crisis. But we will never know. The Legislature, acting in haste and with little information, kept us from finding out. The California Power Exchange, which the Legislature was so eager to protect from competition, collapsed of its own weight anyway, and is now out of business. The law preventing other exchanges from entering the market was quietly repealed two weeks ago, seven very long months after it was adopted.

The NYISO will be posting invoices for the April 2001 initial invoice, October, 2000 6-month settlement adjustment, and December, 2000 4-month settlement adjustment by 2300 May 7, 2001. Funds due the NYISO for April 2001 settlements are to be transferred into the NYISO Clearing Account by close of business Wednesday, May 16, 2001. Funds due the NYISO for the December 2000 4-month settlement adjustment are to be transferred into the NYISO Clearing Account by close of business Thursday, May 17, 2001. Funds due the NYISO for the October 2000 6-month settlement adjustment are to be transferred into the NYISO Clearing Account by close of business Friday, May 18, 2001. Funds due Market Participants from the NYISO for April 2001 settlements will be transferred into Market Participant accounts by close of business Monday, May 21, 2001. Funds due Market Participants from the NYISO for the December 4-month settlement adjustment will be transferred into Market Participant accounts by close of business Tuesday, May 22, 2001. Funds due Market Participants from the NYISO for the October 6-month settlement adjustment will be transferred into Market Participant accounts by close of business Wednesday, May 23, 2001. Please be aware that as per the ISO Services Tariff any disputed amounts are to be paid in full. Upon resolution of the dispute, if it is determined that an overpayment has been made by the Customer, a refund, with interest, will be made by the ISO Attached please find banking instructions for the transfer of funds resulting for these settlements. In order to reconcile customer invoices for the December 2000 3-month settlement adjustment, it will be necessary to net the following versions of the daily advisory statements: Date Current Previous 1 V-4 minus V-3 2 V-4 minus V-3 3 V-4 minus V-3 4 V-4 minus V-3 5 V-4 minus V-3 6 V-4 minus V-3 7 V-4 minus V-3 8 V-5 minus V-3 9 V-4 minus V-3 10 V-4 minus V-3 11 V-4 minus V-3 12 V-4 minus V-3 13 V-4 minus V-3 14 V-4 minus V-3 15 V-4 minus V-3 16 V-4 minus V-3 17 V-3 minus V-2 18 V-3 minus V-2 19 V-3 minus V-2 20 V-3 minus V-2 21 V-3 minus V-2 22 V-3 minus V-2 23 V-3 minus V-2 24 V-3 minus V-2 25 V-3 minus V-2 26 V-3 minus V-2 27 V-3 minus V-2 28 V-3 minus V-2 29 V-3 minus V-2 30 V-4 minus V-3 31 V-3 minus V-2 In order to reconcile customer invoices for the October 2000 6-month settlement adjustment, it will be necessary to net the following versions of the daily advisory statements: Date Current Previous 1 V-7 minus V-5 2 V-7 minus V-5 3 V-7 minus V-5 4 V-7 minus V-5 5 V-8 minus V-6 6 V-8 minus V-6 7 V-8 minus V-6 8 V-7 minus V-5 9 V-7 minus V-5 10 V-7 minus V-5 11 V-6 minus V-4 12 V-6 minus V-4 13 V-7 minus V-5 14 V-7 minus V-5 15 V-7 minus V-5 16 V-7 minus V-5 17 V-6 minus V-4 18 V-6 minus V-4 19 V-6 minus V-4 20 V-7 minus V-5 21 V-6 minus V-4 22 V-6 minus V-4 23 V-6 minus V-4 24 V-6 minus V-4 25 V-6 minus V-4 26 V-6 minus V-4 27 V-6 minus V-4 28 V-6 minus V-4 29 V-7 minus V-5 30 V-6 minus V-4 31 V-6 minus V-4 In addition to adjustments to billing units due to the receipt of billing quality metering data, this settlement adjustment includes the following billing code modifications/corrections: Billing code was modified to model scheduling & dispatch of grouped generators for settlement of energy & bid production cost guarantee payments. Generators affected by this modification should see proper payment of those quantities. Any costs incurred by the NYISO will be recovered from transmission customers through their OATT Schedule 1 residual & BPCG adjustments For the December settlement adjustment, billing code was modified to ensure that appropriate prices corrections resulting from ECA-B were captured in the billing. This may impact transmission customers whose transactions were subject to ECA-B treatment, resulting in transmission usage charge adjustments. Any costs incurred by the NYISO will be recovered from transmission customers through their OATT Schedule 1 residual adjustment. For the December settlement adjustment, a number of grandfathered rights & TCC configurations were corrected. Customers affected by this would see either their TCC's converted back to grandfathered rights, or vice versa. Any excess or deficiency in cost recovery will be balanced with the Transmission Owners, based upon their respective megawatt-mile coefficients. There was a code modification to allow for Class 2 PURPA generators to sell all over-generation to the real-time market. This would result in payment to those affected suppliers. Any costs incurred by the NYISO will be recovered from transmission customers through their OATT Schedule 1 residual adjustment. (See attached file: April_Banking_Instructions.PDF) - April_Banking_Instructions.PDF

----- Forwarded by Jeff Dasovich/NA/Enron on 05/18/2001 05:35 PM ----- "Julia Wright" <[email protected]> 05/17/2001 02:51 PM To: "Marilyn Hawes" <[email protected]>, "Kelly Boyd" <[email protected]>, "Karen Edson (E-mail)" <[email protected]>, "Julee Malinowski-Ball (E-mail)" <[email protected]>, "Joseph Alamo" <[email protected]>, "John White (E-mail)" <[email protected]>, "John Rozsa (E-mail)" <[email protected]>, "John Redding" <[email protected]>, "John Larrea (E-mail)" <[email protected]>, "John Fistolera" <[email protected]>, "John Fielder (E-mail)" <[email protected]>, "John Fielder (E-mail 2)" <[email protected]>, "John Bridges (E-mail)" <[email protected]>, "Joe Ronan" <[email protected]>, "Joe Lyons (E-mail)" <[email protected]>, "Jim Groninger (E-mail)" <[email protected]>, "Jerry Jordan (E-mail)" <[email protected]>, "Jeff Dasovich (E-mail)" <[email protected]>, "Jeannie Cain (E-mail)" <[email protected]>, "Jan Smutny-Jones (E-mail)" <[email protected]>, "James D. Boyd (E-mail)" <[email protected]>, "Jack Stewart (E-mail)" <[email protected]>, "Jack Gualco" <[email protected]>, "Jack Flanigan (E-mail)" <[email protected]>, "Greg Hardy (E-mail)" <[email protected]>, "Grace Davis" <[email protected]>, "Gordon McDonald" <[email protected]>, "Gary Schoonyan" <[email protected]>, "Gary Heath (E-mail)" <[email protected]>, "Evelyn Elsesser (E-mail)" <[email protected]>, "Eloy Garcia (E-mail)" <[email protected]>, "Ed Yates (E-mail)" <[email protected]>, "Doug Fernley" <[email protected]>, "Dorothy Rothrock (E-mail)" <[email protected]>, "Dominic DiMare" <[email protected]>, "Derek Naten" <[email protected]>, "Denny Samuel (E-mail)" <[email protected]>, "Dennis Price (E-mail)" <[email protected]>, "Denice Cazalet" <[email protected]>, "Delbert Fore (E-mail)" <[email protected]>, "Delaney Hunter (E-mail)" <[email protected]>, "Dan Carroll (E-mail)" <[email protected]>, "Craig Brown (E-mail)" <[email protected]>, "Cindy Howell" <[email protected]>, "Charles Bacchi" <[email protected]>, "Catherine Hackney (E-mail)" <[email protected]>, "Carolyn McIntyre (E-mail)" <[email protected]>, "Brian Kelly (E-mail)" <[email protected]>, "Bob Houston (E-mail)" <[email protected]>, "Bob Foster (E-mail)" <[email protected]>, "Bill Keese (E-mail)" <[email protected]>, "Bill Dombrowski (E-mail)" <[email protected]>, "Bill Booth (E-mail)" <[email protected]>, "Becky Kilbourne (E-mail)" <[email protected]>, "Barbara Barkovich (E-mail)" <[email protected]>, "Audra Hartmann (E-mail)" <[email protected]>, "Art Carter (E-mail)" <[email protected]>, "Anna Ferrera (E-mail)" <[email protected]>, "Ann Cohn (E-mail)" <[email protected]>, "Allan Lippincott (E-mail)" <[email protected]>, "Aaron Thomas (E-mail)" <[email protected]> cc: "Karen Jarrell (E-mail)" <[email protected]>, "Karen Koyano" <[email protected]>, "Karen Lindh" <[email protected]>, "Karen Mills (E-mail)" <[email protected]>, "Kari Harteloo" <[email protected]>, "Kassandra Gough (E-mail)" <[email protected]>, "Kathy Brandenburg" <[email protected]>, "Katie Kaplan" <[email protected]>, "Kay Grosulak" <[email protected]>, "Keith McCrea (E-mail)" <[email protected]>, "Kent G. Smith (E-mail)" <[email protected]>, "Kent Palmerton" <[email protected]>, "Kevin Lynch (E-mail 2)" <[email protected]>, "Kevin Lynch (E-mail)" <[email protected]>, "Kevin Smith (E-mail)" <[email protected]>, "Kip Lipper (E-mail)" <[email protected]>, "Lawrence Lingbloom (E-mail)" <[email protected]>, "Lenny Goldberg (E-mail)" <[email protected]>, "Louis Szablya (E-mail)" <[email protected]>, "Marc Joseph (E-mail)" <[email protected]>, "Mark Smith" <[email protected]>, "Marwan Masri (E-mail)" <[email protected]>, "Michael Alcantar (E-mail)" <[email protected]>, "Michael Florio (E-mail)" <[email protected]>, "Mike Kahl (E-mail)" <[email protected]>, "Mona Petrochko" <[email protected]>, "Pete Conaty (E-mail)" <[email protected]>, "Peter Bray (E-mail)" <[email protected]>, "Phil Nails (E-mail)" <[email protected]>, "Phil Stohr (E-mail)" <[email protected]>, "Ralph Cavanagh (E-mail)" <[email protected]>, "Randy Chinn" <[email protected]>, "Ray Thompson (E-mail)" <[email protected]>, "Richard Costigan III ESQ. (E-mail)" <[email protected]>, "Richard Counihan (E-mail)" <[email protected]>, "Richard Mesereau (E-mail)" <[email protected]>, "Robert Berry" <[email protected]>, "Robin Larson (E-mail)" <[email protected]>, "Scott Tomashefsky (E-mail)" <[email protected]>, "Sheryl Carter (E-mail)" <[email protected]>, "Steve Ponder (E-mail)" <[email protected]>, "Steven M. Pike (E-mail)" <[email protected]>, "Stu Wilson (E-mail)" <[email protected]>, "Sue Mara (E-mail)" <[email protected]>, "Susan Reeder" <[email protected]>, "Terry Winter (E-mail)" <[email protected]>, "Tim Schmelzer" <[email protected]>, "Tommy Ross (E-mail)" <[email protected]>, "Tony Braun" <[email protected]>, "Victoria Schaefer" <[email protected]> Subject: FW: Chairman Keese's presentation The attached presentation is for today's CESG meeting. Julia B. Wright Executive Assistant Smith, Kempton & Watts 980 Ninth Street, Suite 1560 Sacramento, CA 95814 (916)446-5508 (916)446-1499 Fax [email protected] - CEC Presentation without NOTES.ppt

SVMG Energy Committee Members: We will be discussing the following at our next committee meeting, this Wednesday. The Hewlett Foundation announced today a $10 million energy initiative designed to add a new dimension to regional and national energy policy issues. The Foundation's energy initiative will focus on energy supply and conservation issues in California and the Intermountain West and will support the development of comprehensive, balanced and practical national energy policy options. By sponsoring research and analysis of contemporary energy issues, the Foundation's objective is to enable a wide spectrum of research institutions and organizations to bring new ideas and analysis into the energy debate. We are aiming to determine the role of SVMG in this regard and hope to gain insight from you at our committee meeting. Thank you for your thoughtful analysis. ############################################################################ ##### From: Hewlett Foundation [mailto:[email protected]] Sent: Monday, August 06, 2001 6:08 AM To: [email protected] Subject: Hewlett Foundation Launches New Energy Initiative For Immediate Release Contact: Jay Ziegler Monday, August 6, 2001 Burson-Marsteller 916.341.1000 Hewlett Foundation Launches New Energy Initiative Project Seeks to Find Solutions and Common Ground in Addressing California, Rocky Mountain and National Energy Issues Extends Foundation's Public Policy Agenda which Includes Recent Sponsorship of National Commission on Federal Election Reform The Hewlett Foundation today announced a $10 million energy initiative designed to add a new dimension to regional and national energy policy issues. The Foundation's energy initiative will focus on energy supply and conservation issues in California and the Intermountain West and support the development of comprehensive, balanced and practical national energy policy options. By sponsoring research and analysis of contemporary energy issues, the Foundation's objective is to enable a wide spectrum of research institutions and organizations to bring new ideas and analysis into the energy debate. "The Hewlett Foundation Board is very excited to sponsor a comprehensive look at the energy resource challenges facing the United States," said Walter B. Hewlett, Chairman of the William and Flora Hewlett Foundation Board of Directors. "Too often, critical public policy questions such as the energy debate are polarized before the discussion begins. This project is designed to fill a number of information gaps in the debate and seek to establish a 'center ground' of ideas that respond to the need for a sensible long-term energy policy in the United States." Over the next two years, the Foundation's energy initiative will help develop energy policy options by sponsoring new environmental research, economic and policy analysis, and experimental conservation projects. The scope of programs envisioned under this initiative will address both energy supply and conservation challenges and apply practical cost-benefit analysis at the intersection of energy economics and environmental science. The Foundation will include diverse stakeholders such as the energy industry, environmental groups and other NGOs, academic institutions and "think tanks," state and federal policymakers, and consumers in this process. "For too long there has been too much noise and not enough thoughtful discussion about the difficult choices that policymakers must confront in solving America's energy problems," said U.S. Senator Dianne Feinstein (D-California). "I applaud the Hewlett Foundation for its effort in sponsoring important research and in providing an important new venue to address these complicated issues in a non-partisan framework." "The Hewlett Foundation has a strong reputation for undertaking important public policy work," said U.S. Senator Ben Nighthorse Campbell (R-Colorado). "It is my hope that this project leads to some creative solutions to our energy supply and conservation challenges. I look forward to watching this effort evolve into an important source of information in the energy policy debate in the near future." Recently, the Hewlett Foundation was a leading sponsor of the bipartisan National Commission on Federal Election Reform. On Tuesday, July 31, the Commission published a comprehensive series of policy recommendations to improve voter registration and election practices across the nation. "The Hewlett Foundation takes pride in supporting bipartisan or multi-partisan approaches to controversial public policy issues," said Paul Brest, President of the Hewlett Foundation. "In the political arena, controversial issues tend to push interest groups into conventional alignments. The energy initiative is designed to inform this polarized debate with reliable data and sound analysis. We hope to generate new ideas that challenge the conventional dichotomy between energy and conservation. This project does not end at research. Rather, we intend to provide a forum for diverse points of view to assemble and address America's energy policy challenges." The Hewlett Foundation has begun selecting academic institutions, other foundations, think tanks, trade groups, and other participants to define the specific scope of various project elements. The Foundation will not entertain unsolicited proposals for this project. As the project advances, scientific reports, analysis, and other information will be disseminated to regional and national policymakers and interest groups. Additionally, project updates and additional energy-related information will be posted on a website: www.hewlettenergy.org # # #

FYI. The case management statements are due May 5. I'll forward Rule 49 separately so that you can start thinking about what we need to say in it. Also think about who we are aligned with for purposes of cross-examination panels. -----Original Message----- From: Cooke, Michelle [mailto:[email protected]] Sent: Wednesday, April 26, 2000 12:27 PM To: '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]' <mailto:'[email protected]'> ; '[email protected]'; '[email protected]' <mailto:'[email protected]'> ; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]' <mailto:'[email protected]'> ; '[email protected]'; '[email protected]' <mailto:'[email protected]'> ; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; Bromson, Jonathan; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]' <mailto:'[email protected]'> ; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]' <mailto:'[email protected]'> ; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]' <mailto:'[email protected]'> ; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]'; Ortega, Barbara; Johnson, Aaron J.; Mazy, Anthony; Wetstone, Brad; Danforth, Christopher; Berman, Daniel M.; Smith, Don; Quiroz, Edgar A.; Quan, Edwin; Cluff, George; Wilson, Gregory A.; Loewen, James; Morse, Jay; Tran, Lana; Tan, Lee-Whei; Enderby, Marshal B.; Lyons, Martin G.; Ebke, Maryam; Cooke, Michelle; Walsh, Natalie; White, Rosalina; Cauchois, Scott; '[email protected]'; Beck, Valerie; Blumer, Werner M.; Gibson, William; Johnston, William; Tapawan-Conway, Zenaida G.; '[email protected]'; '[email protected]'; '[email protected]' <mailto:'[email protected]'> ; '[email protected]'; '[email protected]'; '[email protected]'; '[email protected]' Subject: Upcoming Scheduling PHC in R.99-10-025 Good afternoon everyone- I wanted to let you all know a bit more about what I hope to accomplish at the 5/10 PHC for the DG proceeding. It is my hope that we will leave the PHC with a planned witness order for the hearings. Therefore, parties should come prepared to discuss witness availability and cross estimates by witness. In fact, if you can provide estimates to me informally prior to the PHC, I would greatly appreciate it. Any work that the parties can do ahead of time to reduce to scope of issues that require cross is appreciated. In the scoping ruling, Commissioner Bilas directed that a case management statement be submitted consistent with Rule 49. We are looking forward to seeing that. In addition, I'd like you all to consider offering panels of witnesses for cross in the event that you have significant alignment of positions with other parties. This should reduce the time required as well. We will not tolerate repetitive cross or friendly cross, therefore, the parties with aligned positions should also consider designating a representative to cross witnesses in order to reduce hearing time. (If witnesses have corrections to their direct or rebuttal testimony, these should be submitted in writing as an errata exhibit, whenever possible, in order to reduce additional direct on the stand.) During the hearings we will run 9-1 Tuesday-Friday, Mondays we will run 10-4. This gives us approximately 28 hours of cross time. If parties estimates exceed this amount of time, the Commissioner and I will allocate time accordingly. In addition, at the PHC I intend to identify the direct and rebuttal testimony with exhibit numbers so that we do not need to spend time doing that at the hearing. We will also set a date by which any motions to strike testimony are due. I hope this information is helpful. See you in a couple of weeks! Michelle Cooke Administrative Law Judge [email protected] 415 703 2637

<http://www.coastalhotel.com/images/top.gif> <http://www.coastalhotel.com/images/blank.gif> L U X U R Y H O T E L S , L O D G E S , I N N S A N D R E S O R T S <http://www.coastalhotel.com/images/blank.gif> <http://www.coastalhotel.com/images/blank.gif> News and Offers for January For a full list of all offers, please click here <http://www.coastalhotel.com/special_offers_jan02.shtml?src=coastal02>. Our featured properties this month. Bitter End Yacht Club Virgin Gorda, British Virgin Islands The Bitter End Yacht Club, the world's premiere sailing and watersports resort, located in the British Virgin Islands, is offering Coastal Hotel Group devotees a special "Winter Romance" reduced rate of $265 per person, per night, based on double occupancy, from January 15th through February 15th, 2002. January and February are for the true romantics. The kids are in school, the holidays are over, and the British Virgin Islands are at their tropical best. 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Your rate is $145 per person, per night. For reservations call 866-5-SUNSET or visit our website <http://www.sunsetwaters.com/sunset_waters.html?src=coastal02>. Sunset Waters Beach Resort <http://www.sunsetwaters.com/sunset_waters.html?src=coastal02> + Hotel Information <http://www.sunsetwaters.com/sunset_waters.html?src=coastal02> + Reservations <http://www.sunsetwaters.com/sunset_reservations.html?src=coastal02> _____ Offers are valid at participating hotels listed. All hotel reservations are subject to availability and must be made in advance. Promotional blackout periods may be in effect during certain time periods, and normal arrival/departure restrictions apply, including, but not limited to, minimum length of stay and closed to arrival requirements. Guest must pay an eligible rate. Additional guests may be subject to additional hotel charges. Offers are based on guestroom accommodations unless otherwise stated. Offers are not valid with groups or conventions. Offers may not be combined with other promotional offers or discount programs. Coastal Hotel Group reserves the right to alter or withdraw these programs at any time. The availability of hotel stays at some destinations is subject to restrictions and applicable taxes. ?1999 Coastal Hotel Group. For further information on Coastal Hotels please visit: <http://www.coastalhotel.com/?src=coastal02> _____ <http://www.coastalhotel.com/images/blank.gif> <http://www.coastalhotel.com/images/blank.gif> <http://www.coastalhotel.com/unsubscribe.shtml?src=coastal02> Unsubscribe from News & Offers Click here! <http://www.coastalhotel.com/unsubscribe.shtml?src=coastal02> <http://www.coastalhotel.com/images/blank.gif> <http://www.coastalhotel.com/images/tick.gif> Thank you for requesting Coastal Hotel Group's newsletter. You are receiving this newsletter because you have signed up through Coastal Hotel Group's web site. 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Group -- Thought you might be interested in this article I picked up on "forced access." Lisa > NET ADVANTAGE - [Pittsburgh Post Gazette Editorial] Washington should > regulate access to the Web Monday, November 08, 1999 Pittsburgh > Post-Gazette How will most of us access the Internet in 10 years? Via > wireless technology? Satellites? Cable wire? DSL phone lines? Like most > smart people humbled by the rate of technological change, Federal > Communications Commission Chairman William Kennard does not know the > answer to that question. As a result, the commission is wary of treating > the cable industry, however promising its prospects, as the sole provider > of high-speed, broadband Internet access and thus deserving of a whole new > regulatory regime. Mr. Kennard knows how stifling that can be on a nascent > technology. Better for the federal government to allow competing channels > to the Internet to develop unimpaired, and intervene only when absolutely > necessary to ensure competition. Unfortunately, local regulators across > the country have been undermining this federal regulatory restraint by > imposing Internet-related burdens on cable companies at the municipal > level, egged on by a powerful lobbying alliance of regional phone > companies and Internet service providers. Ongoing negotiations to renew > the city's cable franchise agreement have made Pittsburgh the latest > ground zero in this ferocious and important battle to determine the future > of the nation's telecommunications policy. Pittsburgh City Council should > resist the lure of notoriety, take a pass, and recognize that major shifts > in national policy should be left to the Congress and to the Federal > Communications Commission. Council members should desist from forcing > AT&T to require "open access" to other Internet service providers as a > condition to a new cable franchise agreement. Beyond the fact that such a > move would be of dubious legality, it would also set Pittsburgh at a > competitive disadvantage in terms of broadband access to the Internet, as > AT&T would likely delay expanding service during a protracted legal > struggle. Franchise agreements between municipalities and cable companies > used to be fairly cut and dried. Within the parameters established by the > Federal Communications Commission, each side would haggle over > rights-of-way fees -- in Pittsburgh's case, some $3 million a year -- and > then call it a day. But no more. Last December, as a condition for > approving the transfer of the local cable franchise, Portland, Oregon > required AT&T to open its cable lines to rival Internet service-providers > (instead of necessarily bundling its own affiliate @Home with the > service). They did so under the banner of "open access," and each > subsequent franchise negotiation has been a major battle. A federal > appeals court is now determining whether Portland had the power to do so. > AT&T is betting heavily on cable as the Internet's future, having spent > more than $100 billion on cable companies, and billions more to update > their systems. It was through its $54 billion acquisition of TCI Inc. > early this year that AT&T picked up the cable franchise in Pittsburgh, as > well as its controlling stake in, and exclusive contract with, @Home. > Relatively few Americans now access the Internet via cable, but more and > more will be making the switch as AT&T and other cable players complete > the necessary investment. Cable access is dozens of times quicker than > your traditional phone dial-up service. Though America Online now has 20 > times more members than @Home, it and other established Internet providers > fear the potential of an AT&T monopoly as people flock over to cable. > America Online does not want its members to have to choose between it and > greater speed; it wants to keep its members, whether they opt to dial in > via Bell Atlantic's phone line, satellite, or AT&T's cable line. The > "open access" proponents argue that it undercuts consumer choice and > desirable competition to have @Home as the sole cable-based portal to the > Web. They point to the long-distance telephone market as a regulatory > model, in which one company controls the wire into consumers' homes, but > consumers are still able to choose service providers, which in turn pay > the wire owner for their traffic. This is a compelling vision, and may > in time become the desirable model for federal policy. But the > Post-Gazette believes that it is premature to rush to such a judgment. > AT&T may yet conclude that it is best served by opening up its wires to > all players as a means of hastening Internet consumers' migration to > cable. There have been reports of talks between AT&T and AOL about such a > possibility, and AT&T management has made no secret of its mixed feelings > about being tied to @Home. Second, it may be too early to discount faster > DSL phone lines, satellite and wireless technologies as viable > alternatives to access the Net. But even if one ascribes to the view that > a forced "open access" is needed now, the fight should be taken up in > Congress and at the FCC. It is absurd to believe that policy crucial to > the Information Age's nervous system can be cobbled together > municipality-by-municipality. Pittsburgh should join such cities as > Seattle and Los Angeles that have declined to throw up roadblocks to the > timely rollout of what potentially will be one of many faster roads > online.

EPA's Mercury determination was released today. It can be accessed at www.epa.gov/mercury It will likely take some time for EPA to develop these regulations -- the time frame is proposed rule by 2003 and final rule by 2004 -- but this is a significant step in that it now formally puts mercury on the radar screen for power generators, in terms of planning for emissions controls. It is a positive step that EPA included in its determination an intent to develop "flexible" compliance measures -- i.e. trading -- for mercury. It also means that mercury will most likely be included in any efforts to develop "multi-pollutant" legislation in the next Congress. Please call me if you have any questions. _________________ THURSDAY, DEC. 14, 2000 EPA DECIDES MERCURY EMISSIONS FROM POWER PLANTS MUST BE REDUCED To protect public health and the environment, EPA Administrator Carol M. Browner today announced that the Clinton Administration will require reductions, for the first time ever, of harmful mercury emissions from coal-fired power plants -- the largest source of such emissions in America. After extensive study, EPA determined mercury emissions from power plants pose significant hazards to public health and must be reduced. The agency will propose regulations by 2003 and issue final rules by 2004. "Mercury from power plants settles over waterways, polluting rivers and lakes, and contaminating fish. Exposure to mercury poses real risks to public health, especially to children and developing fetuses," Browner said. "The greatest source of mercury emissions is power plants, and they have never been required to control these emissions before now. Today's decision to address this problem marks a major step forward in the Clinton Administration's ongoing efforts to protect public health and the environment." Exposure to mercury has been associated with both neurological and developmental damage in humans. The developing fetus is the most sensitive to mercury's effects, which include damage to nervous system development. People are exposed to mercury primarily through eating fish that have been contaminated when mercury from power plants and other sources is deposited to water bodies. Once mercury enters water, biological processes can transform it into methylmercury, a highly toxic form of mercury that builds up in animal and human tissues. EPA recommends that subsistence fisherman, pregnant women, and others should always heed state fishing advisories. Under the Clean Air Act, EPA is required to study toxic air pollution from power plants in order to determine if additional regulations are necessary in order to protect public health. EPA reported its study to Congress in February 1998. That study concluded that of all toxic pollution examined, mercury posed the greatest concern to public health. An earlier study concluded that the largest source of human-made mercury pollution in America was coal-fired power plants. After completion of the study, the Clean Air Act required EPA to determine whether to proceed with the development of regulations. Today, EPA is announcing that it has affirmatively decided that mercury air emissions from power plants should be regulated, because mercury poses the greatest hazards to public health. EPA will propose regulations by December 2003 and will begin developing those regulations shortly. Industry, the public, and state, local and tribal governments will have an opportunity to participate in the process. Then, EPA will issue final regulations by December 2004. The Clinton Administration already has taken a number of aggressive actions to reduce mercury air pollution, including significantly reducing allowable emissions from municipal waste combustors, medical waste incinerators and hazardous waste combustors. When fully implemented in 2005, the existing rules will reduce total human-caused mercury emissions by nearly 50 percent from 1990 levels nationwide. On November 11, 2000 President Clinton called for a dramatic new approach to reduce air pollution from America's power plants. The President highlighted the benefits of adopting a combined strategy to address all of the major pollutants emitted by power plants, including mercury, sulfur dioxide, nitrogen oxides and carbon dioxide. A comprehensive strategy that addresses all of these pollutants together will provide more certainty and flexibility to industry, making it the most cost-effective way to control the emissions that threaten public health and the environment. As the Clean Air Act requires, the regulatory process to control mercury will proceed under current law. However, at the same time, the Administration encourages the Executive Branch and the Congress to work toward legislating a comprehensive four pollutant approach, which will benefit the public health, the environment, and the economy. Today's decision will appear soon in the Federal Register, but is accessible immediately on EPA's mercury web site at: www.epa.gov/mercury Also, today EPA is posting, on its website, mercury emissions from every coal-fired power plant in the country. This is consistent with EPA's strong commitment to provide citizens with information about pollution in their communities. Jeffrey Keeler Director, Environmental Strategies Enron 1775 Eye Street, N.W. Suite 800 Washington, D.C. 20006 (202) 466-9157 - phone (202) 331-4717 - fax (888) 502-6856 or [email protected] - pager

All - I'll be happy to do the legal due dliligence and ISDA documentation from here. Bill/Cynthia: Please let me know who in Credit will be handling this so that I can coordinate with them when the need arises. Sara: When Janice mentioned the legal due diligence with regard to commodity derivatives in the Philippines, did she mean the legal survey done by Allen & Overy? If so , I've got copies of all that and can take it from here. If that isn't the case and you've done more ISDA work in the Phillipines since then, I'd be forever grateful if you could send over whatever copies of the stuff which you have for me to suss out the situation there. Mark T. /Janice: Is there any particular law firm whom we should work with this time round? Thanks, all. Rgds, Anita Alan B Aronowitz 07/16/99 10:41 PM To: Janice Moore/HOU/ECT@ECT cc: Anita Fam/SIN/ECT@ECT, William S Bradford/HOU/ECT@ECT, Mark - ECT Legal Taylor/HOU/ECT@ECT, Cynthia L Schneider/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT Subject: Re: Update on Petron Hedging Program Anita/Sara: I would suggest that Anita handle while coordinating with Sara on the background of the previous work product. Alan Janice Moore 07/13/99 10:19 AM To: Anita Fam/SIN/ECT@ECT, William S Bradford/HOU/ECT@ECT cc: Mark - ECT Legal Taylor/HOU/ECT@ECT, Alan B Aronowitz/HOU/ECT@ECT, Cynthia L Schneider/HOU/ECT@ECT Subject: Re: Update on Petron Hedging Program Well, it looks like we might have a shot at an ISDA w/ a PHilippines company. One issue that discussed w/ Manuel but he does not mention in his note is that we would probably require an enforceability opinion from Petron (a compnay jointly owned by the PHilippines govt and Saudi Aramco). I'm not sure which credit dept. would handle this deal, but Cynthia Schnedier has some familiarity w/ Petron. I'll leave it to Mark, Alan and Anita to determine whether Anita will handle the ISDA or whether it will be someone from Houston (Sara S. did the original legal due diligence on the enforceability of commodities derivatives contracts in the PHilippines). ---------------------- Forwarded by Janice Moore/HOU/ECT on 13.07.99 10:15 --------------------------- Wang Moi Eng 12.07.99 22:31 To: "Manuel Gallego/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL @ ENRON cc: John Chismar/SIN/ECT, Hans Wong/SIN/ECT@ECT, Mike Brown@ENRON, Janice Moore/HOU/ECT@ECT, Angel M Esguerra/SIN/ECT@ECT, David A Terlip AT ENRON_DEVELOPMENT@CCMAIL@ENRON, Victor Santos AT ENRON_DEVELOPMENT@CCMAIL@ENRON, Bruce Lundstrom AT ENRON_DEVELOPMENT@CCMAIL@ENRON, Heather J Mitchell AT ENRON_DEVELOPMENT@CCMAIL@ENRON, Alberto J Carreno AT ENRON_DEVELOPMENT@CCMAIL@ENRON Subject: Re: Update on Petron Hedging Program Manuel, Thanks for the update and we look forward to meet Petron traders/risk management team during our next visit to Manila, probably during our first cargo of gasoil to FGH, currently planned for end August / early September. Kindly let us know on new developments. For your information, John is away on home leave and will be back in office only after mid - August. Best regards, Eng From: "Manuel Gallego/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL on 13/07/99 10:53 CDT To: John Chismar@ECT, Hans Wong@ECT, Wang Moi Eng@ECT, Mike Brown, Janice Moore@ECT, Angel M Esguerra@ECT, David A Terlip AT ENRON_DEVELOPMENT@CCMAIL, Victor Santos AT ENRON_DEVELOPMENT@CCMAIL, Bruce Lundstrom AT ENRON_DEVELOPMENT@CCMAIL, Heather J Mitchell AT ENRON_DEVELOPMENT@CCMAIL, Alberto J Carreno AT ENRON_DEVELOPMENT@CCMAIL cc: Subject: Update on Petron Hedging Program Dear John, Yayette Ventigan of Petron informed me yesterday that the energy derivatives course conducted by Paradigm in Manila from July 7 to 10 was well-received. I sensed that the course was not deemed easy by the Petron participants. Further, Yayette indicated that they could have easily used up more time for the same amount of material. Given the Paradigm course (and the Citibank course which Yayette attended in Australia), Yayette indicated that the Petron Board will most likely give the marching orders to Petron management on July 27 to (1) develop an initial, basic and conservative hedging program for Petron?s fuel oil and gasoil supplied to the National Power Corporation and (2) go out to the market (most likely through a bid process) and execute a financial risk management contract (ISDA). Yayette indicated that Petron looks forward to the working meeting with Enron?s Singapore traders. I indicated to Yayette that end of August to early September would probably be convenient for us. Yayette could not yet determine an appropriate time for Petron. With respect to legal expectations, Petron appears to be at ease with the following: ? In general, the concept of disassociating the financial risk management contract from the Philippines with the exception of Petron Corporation (a Philippine corporation) being a party to the contract. ? Petron executing a financial risk management contract with an offshore counter-party like Citibank Australia or ECT Singapore. ? Petron physically executing the contract outside the Philippines. ? The contract to be governed by the laws of the State of New York. I did point out to Yayette the need for offshore collateral in the form of a Letter of Credit, which is consistent with the risk of non-enforcement for collateral in the Philippines. Yayette indicated that she would raise this issue in her discussions with Petron treasury. More later as I receive more feedback from Petron. Best regards, Manuel

FYI - Scroll below for meeting conclusion and next steps. Marie ----- Forwarded by Marie Hejka/Corp/Enron on 11/30/2000 06:27 PM ----- Marie Hejka 11/30/2000 05:34 PM To: David Gossett/Enron Communications@Enron Communications, Anthony Mends/Enron Communications@Enron Communications, Brandon Rigney/Corp/Enron@ENRON, Allen Elliott/HOU/ECT@ECT cc: Bryan Powell/HOU/ECT@ECT, George Wasaff/NA/Enron@Enron, John Gillespie/Corp/Enron@ENRON Subject: KM Task Force Content Strategy Meeting Thank you for your participation in yesterday's meeting. Please review the below meeting notes. Sincerely, Marie Hejka 11/29/00 Content Strategy Meeting Notes Attendees: Allen Elliott - mynetwork.com David Gossett - mywEBSource.com Marie Hejka
) KM Task Force Chair Anthony Mends - mywEBSource.com Brandon Rigney
) my.home.enron.com Meeting Details. The above group met to discuss the content strategy for the KM Task Force portal. Our intention is to synergize the collective intelligence of these teams to develop a best practices portal. The task force is in a unique position because the portal we will develop from is Bryan Powell
,s mynetwork.com which although it largely reflects Brandon Rigney
,s my.home.enron.com, it does not reflect the characteristics requested by the KM pilot executive sponsors and task force members. The question to ask is: are the characteristics identified by the KM pilot executive sponsors and task force members the characteristics we should include in a portal? Further analysis is required to conclude what user needs are before we can determine what to include in a portal. The team agreed that a portal is relatively easy to develop. What is more important and challenging is the process, established perhaps by a centralized KM effort, by which information or content is made available to all given portals. It is the content accessible through a portal which determines the success of the portal. Yahoo.com users, through a minimal number of starting points, may access some 6000 containers of information. For our project, it has not been determined what information (what content) needs to be accessed from a portal. The answer to this question should predict what front end buttons are most important to place on the initial dashboard of the portal. Does the task force want to enter in to the business of hashing out what specific content to make available through the portal? No, we have neither the time nor the responsibility to undertake this. But, how then, does the task force determine what the initial dashboard will look like if we don
,t have an understanding of what content users actually need most to access? The requirements phase should predict this. What is most challenging about content? The answer: locking down the containerable information (content) to bridge to portals. Information needs to be syndicated. In order for it to be syndicated, it must be in an appropriate container.
&Containerable
8 information is information that can be shown as a channel. In other words, containerable information is information that can be accessed from the portal. Not all information on a given website is containerable and available to be pulled by portals. Editorial assistance is required to make certain information is contained. A KM strategy should propose a method to identify, develop and maintain information a portal can capture. Meeting Conclusion. The development of any business structure should be driven by business needs. Given business needs vary from Business Unit to Business Unit and person to person, the task of developing a portal as the single interface for all Enron Business Units is large. Consider the following diagram as a high level plan we may reference to develop the content strategy for a best practices portal. Requirements Phase Design Phase Build Phase Test Phase Launch Phase We are currently in the requirements phase of this project. Although multiple, personalized portals have been developed, unveiled and implemented, we are still gathering requirements to create a best practices portal. The task force is chartered with the responsibility to develop a Knowledge Management proposal. In this proposal, we may consider the process through which containerable information is identified, developed, and maintained. In the meantime, the content strategy team is available for the task force members to consult. The content strategy team will help Bryan Powell
,s team shape mynetwork.com. With respect to content strategy, some of the responsibilities a KM proposal should review include: ? A plan to develop a process to determine what information is important to contain ? A plan to develop a process to identify owners of containers ? A plan to develop a process for teaching people how to build containers ? A plan to develop a process for cleaning up data ? A plan to develop a process for inventorying data on websites ? A plan to develop a process for inventorying data on the
&O
8 drive and other assets ? A plan to develop a process for creating a consulting portal kit whereby specific needs of communities are identified and reflected in a best practices portal ? A plan to develop a process for shutting off old channels (i.e. email from Office of the Chairman) and turning on new channels (i.e. portal delivery of Office of the Chairman information) Next Steps. Identify content strategy
&to do
,s
8 for the requirements phase. Identify owners of content strategy
&to do
,s
8 for the requirements phase. Establish weekly meetings for content strategy team. Content strategy team members gain authorization from management to support task force.

SIVY ON STOCKS from CNNmoney.com Wednesday, November 21, 2001 ******************[ A D V E R T I S E M E N T ]**************** QUICK! If you won $25,000 CASH what would be on your "Best Of" list? Keep thinking because here's a chance to try to win the $25,000 Grand Prize. BONUS: See what else has been selected "Best Of" at money.com and try an issue of MONEY Magazine FREE! Click Here: http://www.money.com/bestof **************************************************************** Accelerating growth Share prices suggest a 2002 rebound; PerkinElmer's growth poised to pick up. By Michael Sivy NEW YORK (CNN/Money) - Investors know that earnings for the current quarter will be lousy. And they've written off results for the first quarter of next year as well. At this point, share prices reflect hopes for the second quarter of 2002. Nonetheless, the Dow has moved up almost 20 percent since its low of 8,236 on Sept. 21, fueled largely by falling interest rates and investors' expectations of those eventual earnings rebounds. After declining steadily since June, 10-year bond yields have turned up in the past three weeks. This reversal reflects improving consumer confidence, a drop-off in new unemployment claims and other data suggesting that an economic upturn may finally be under way. At the same time, however, those higher interest rates temporarily undercut stock prices. In addition, stocks could be knocked back by any unusually bad earnings surprises, by negative guidance for next year's results, or by another unexpected terrorist attack. Those possibilities have some market strategists worrying that stocks have run too far too fast. As a result, the most timely shares in this environment are those whose prices have not made a big move since mid-September, but which still enjoy strong growth prospects. PerkinElmer (PKI: down $0.33 to $28.55, Research, Estimates) is a mid-sized diversified technology company with annual revenue of just under $2 billion. Since 1998, profit growth has been accelerating. After single-digit annual earnings gains in the early 1990s, growth picked up to a compound 13 percent in the past five years. And it's projected to top 17 percent annually during the next five years, supported by a return on equity of close to 20 percent a year. One of the most important factors sustaining PerkinElmer's accelerating profit growth is the company's emphasis on its most promising businesses - and its efforts to build those franchises. Two weeks ago, PerkinElmer completed the acquisition of Packard BioScience, a leader in drug-discovery systems. The acquisition strengthens PerkinElmer's life-sciences division, which accounted for 16 percent of last year's operating income. The company's two other fast-growing divisions are optoelectronics (33 percent of income) and instruments (32 percent). PerkinElmer has announced plans to shed slower growing operations, most notably its fluid sciences division, as well as some other minor lines. Third-quarter results show how those moves will boost the company's growth: While net income was up 16 percent, earnings from the operations PerkinElmer's plans to retain rose 27 percent. Economic weakness may limit earnings growth this quarter and next. And dilution from the acquisition from the Packard acquisition will erode full-year results a bit. But analysts still expect profit growth of around 13 percent for 2002, accelerating to the high teens from 2003 onward. At a current share price of $28.50, PerkinElmer trades at less than 23 times projected 2002 earnings. That's quite reasonable for a stock with such attractive niche businesses. ### Read all of Michael's columns at: http://money.cnn.com/markets/sivy/ To subscribe or unsubscribe to Sivy on Stocks, go to: http://money.cnn.com/email/ -------------------------------------------------- DEVELOP CONFIDENCE TO MAKE MONEY IN ANY MARKET WITH THE MONEY'S COACHING FOR INVESTORS program! Tap the expertise of MONEY and gain control over your finances with the help of a one-on-one coach. Call now to speak with a coaching consultant and learn how you can develop a personal investment program for yourself 800-748-4056 x5707. Visit our website for more information http://money.cnn.com/services/coach/ ----------------------------------------------------------- CONTACT THE BIGGEST COMPANIES IN THE WORLD! Over 5,000 contact names in the OFFICIAL FORTUNE Databases. 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You are right, but Jeff was much quicker to point out my error. Might I be distracted by everything going on around me?? Wanda -----Original Message----- From: Steffes, James D. Sent: Wednesday, October 24, 2001 4:13 PM To: Dasovich, Jeff; Curry, Wanda Cc: Tribolet, Michael Subject: RE: Conversation with Edison re: Getting Negative CTC Paid I know that SCE is taking this position. They are simple wrong. Unless and until we get all of our "positive" CTC back from the Utility, why should I even begin to consider their "goofy" arguments. In addition, SCE is receiving $3.3 B which is a full payment of all Negative CTC. If their issue is to have a Undercollection charge against all customers, that's a different policy matter. The CPUC agreed to the idea of Negative CTC and SCE needs to pay. Also, if we are 5% of load and the Undercollection is $3.3 B, I think that SCE would be looking for $165 MM - our entire claim. They aren't talking about 5% from our view $150 MM claim. Jim -----Original Message----- From: Dasovich, Jeff Sent: Tuesday, October 23, 2001 6:18 PM To: Curry, Wanda Cc: Steffes, James D.; Tribolet, Michael Subject: RE: Conversation with Edison re: Getting Negative CTC Paid Need to think about it a bit. Here's some of what we know based on the settlement: Total debt = 6.35 B After they contribute all cash on their books and agree to eat a little, the PUC is allowing them to collect somewhere between $3.0-3.3B--depends on who you talk to. The total owed to ESPs is $243 MM. -----Original Message----- From: Curry, Wanda Sent: Tuesday, October 23, 2001 5:56 PM To: Dasovich, Jeff Cc: Steffes, James D.; Tribolet, Michael Subject: RE: Conversation with Edison re: Getting Negative CTC Paid Jeff, Do we know how much Edison's total under collection is? Would it be as simple as to determine their total (around $3 billion?) and gross receivable (before any payments - 145 million) and calculate the % (around 5%)? This would result in a pretty small percentage. Another way to look at it would be on a % of load basis. If you use the DA load information Sue forwarded to us on October 1st, this % (5.7%) would also be very small. How do you think they will look at it? I think we would all agree to a 5% haircut, if they would JUST PAY US! Wanda -----Original Message----- From: Dasovich, Jeff Sent: Tuesday, October 23, 2001 5:19 PM To: Steffes, James D.; Curry, Wanda; Tribolet, Michael Subject: RE: Conversation with Edison re: Getting Negative CTC Paid Wanda: I faxed the examples that Edison faxed us and that you and Michael and I talked about some time back. I'm sure that's how Edison would calculate it. Does it make sense to run the numbers and see what our "contribution" to Edison's undercollection would be under Edison's view? If you need another copy, let me know. Question: I don't know what our book looks like on this issue, but if we were to take the "netting" through a reduction in the PX credit going forward, how much of a hit would that be, particularly if we were to get the $120 MM up front? Best, Jeff -----Original Message----- From: Steffes, James D. Sent: Tuesday, October 23, 2001 5:05 PM To: Dasovich, Jeff Subject: FW: Conversation with Edison re: Getting Negative CTC Paid Jeff -- How would we calculate EES' "contribution" to SCE undercollection? Jim -----Original Message----- From: Dasovich, Jeff Sent: Tuesday, October 23, 2001 5:02 PM To: Shapiro, Richard; Steffes, James D.; Mellencamp, Lisa; Tribolet, Michael; Sanders, Richard B.; Kean, Steven J.; Sharp, Vicki; Smith, Mike; Williams, Robert C.; Curry, Wanda; Swain, Steve; Huddleson, Diann; Calger, Christopher F.; Belden, Tim; Dietrich, Janet Subject: Conversation with Edison re: Getting Negative CTC Paid I talked to John Fielder (SVP Edison) about setting up a meeting for Barry Tycholiz with Edison's CFO about hedging Edison's QF price risk. Fielder wanted to talk about the negative CTC issue. Here's what he said: They plan to "settle" with the ESPs and pay them when they pay everyone else, which he re-iterated would be sometime in Q1'02. Edison is holding firm to the notion that the negative CTC contributed to the utility's undercollection and that the ESP's share of the undercollection has to be netted against the payables attributable to the negative CTC and owed the ESP. He said that they will propose to net it out in one of two ways: 1) lump sum netting (i.e., if they owe $50MM and the share of the undercollection is $30 MM, then they pay the ESP $20 MM; or 2) future reductions in PX Credit (i.e., they pay the ESP $50 MM, and then reduce the PX going forward until the $30 MM is paid down). The numbers are illustrative only. In addition, he said that they have the view that a decision is going to have to be made about 1) whether DA customers pay for stranded costs tied to the DWR L-T contracts, and 2) whether DA customers pay going forward for stranded costs tied to the QF contracts. (Edison is clearly lobbying the PUC to get DA customers to pay for these costs.) I recommended strongly that he de-link issues 1 and 2 above from the issue of paying us ASAP what they owe us for negative CTC. He agreed. He said that the PUC judge's recently issued pre-hearing conference order requires that Edison "meet and confer" with ESPs prior to the Nov. 7th hearing, and that Edison intends to set something up with ESPs prior to that hearing. Fielder is also the point person on "getting ESPs paid" and intends to initiate settlement discussions with ESPs week after next. It was very clear from the conversation that Edison is going to do everything possible (at the expense of creditors) to maximize headroom under the settlement it struck with the PUC a few weeks ago. Edison's stalemate with the QFs is evidence of it. We shouldn't assume anything different with the Negative CTC issue. If you have any questions, let us know. Best, Jeff

Steve, Thanks a lot. I think that having the pseudo code will go a long way towards understanding how the system works and making sure that there are no bugs in translation of a business problem (for example, complicated credit insurance deals with multiple triggers and conditionality) into the code. Regarding Tanya's attitude. Just a few points. 1. I don't think she has the skills to do the system administrator's work and she does not have the necessary privileges. This explains why she keeps asking Winston for help. It's not that the work is beneath her. 2. Some members of Tanya's team came to me complaining about Winston. He effectively told them to go away and work on the "research projects" and that he would take care of the IT issues. I don't think that it's just Tanya's issue, though I agree that a more outgoing personality would be helpful. 3. The reality of this situation is that the internal customers beat on Tanya and me whenever there is any performance problems and/or they intuitively disagree with the results of a run. They could not care less about the demarcation line between IT and Research. They also want Tanya to sign off on the model and she cannot do it without full access to the code. The bottom line is that we are in full agreement: Tanya and Winston have to work as a team and I shall work on my end to make sure that it happens. Credit is emerging as a critical issue for Enron for the next few weeks and the system cannot fail. Vince From: Stephen Stock/ENRON@enronXgate on 01/11/2001 08:23 AM To: Vince J Kaminski/HOU/ECT@ECT cc: Subject: Progress Vince, I got feedback from the lunchtime research meeting that you were talking about some specific solutions to performance of IT systems... In particular distributed processing. Also I heard that you had concerns about the use of multiple languages etc.... Both of these sound like what I was discussing with you on previous occasions... Do you feel the need to discuss these further? The multi-language issue isn't really that much of an issue, as the current system is 98% java right now. Although I am a big fan of C/C++(it is my main development skill) , I am also very aware that Java is a much more evolved and robust language. I had serious doubts about the performance, but I've had a review conducted, and the results are showing the Sun Unix implementation to be nearly as fast and in some cases faster than C/C++ because of something they call Hot-Spot technology. (its an instruction caching technique, I believe). The concerns I expressed to you, were really about how technical people justify the use of a language on the strength of a relatively meaningless metric like portability. On the issue of distributed processing... the original review I had conducted by our architecture group pointed to that as a solution, and as Zhiyong Wei is already working on Global Valuation project, Winston is actively working with Zhiyong to see if he can model the VaR architecture on that, and also to find a common Valuation piece between the systems. I'd like the opportunity to talk to you about these issues if you have some time over the next few days? Also, I sat in on the Tanya / Winston meeting yesterday and as per our discussion at the elevator, I attempted to help her argument by suggesting to all present that she was trying to perform triage on the code... I.e. Seperating research domain problems from IT problems. She said that stepping through code was the only real way in which she could get a feel for where performance bottlenecks were. I asked her how she would measure that, and she said she would instrument the code manually by inserting timing elements at strategic points. I mentioned that a profiling tool could probably do this job for her. Tanya again said that stepping through code is the only way she can get an idea of the code, and that studying documentation wasn't enough. About 6 weeks ago, I commissioned a team to document the system down to psuedo-code level and will be able to provide this to you and your team soon. (in fact I've asked for a draft copy to be given to Tanya right now), and Winston is also working on a draft Research/IT "working together" document, which will identify how the exchange of information takes place. Tanya also gave the impression that she wants a dedicated IT developer to do all the environment setup for her, because she doesn't really want to have to do that. I think that this is probably the root cause of the issue. The IT guys are working very hard and her handling of the situation is not good, as it gives the impression that this kind of work is beneath her. She is claiming that they are un-cooperative.... they are claiming that she continually asks the same questions about set-up over and over again, and doesn't seem to want to learn how to do it. Winston on the other hand, could be more proactive in determining what is a business related model issue and an IT issue and ask for help from research. I think you Debbie and I need to work quite hard to get them to play nicely. I have asked Tanya and Winston to go ahead and work very closely together over the next few days....and Debbie Brackett and I will review their progress on Friday. In the meantime l'll be looking at setting up a working test environment that doesn't involve my main Quant guys in day to to day setup issues as a longer term solution. Regards Steve

> ---------- > From: Sharon Lay > Sent: Wednesday, November 17, 1999 9:21 PM > Subject: Punch list for "The Millennium Cruise" > > Well, it looks like we are on the final stretch now, and we can review > some of the earlier discussions to make sure everything is in order. Sheri > is going to meet with Roger next week to cover all of the items listed > below. Please give us feedback on any other concerns: > 1. The main dining room open 6:30pm-9:30pm............................. > Confirmed > 2. Tea Served > 3:00pm-5:00pm.....................................................Confirme > d > 3. Childs menu in the Gorilla Grill [Don Vito's Trattoria] from > 11:30am-2:30pm and > 3:00pm-5:00pm............................................................. > ........Confirmed > 4. The Butterfly Room will have highchairs ..............Waiting on final > number of highchairs needed > 5. The Butterfly Room will have a > microwave.................................Confirmed > 6. We have provided non spill children's cups ............... > ..............Confirmed > 7. Radisson will provide 150 USA TODAY, 50 WallStreet Journal, > 5. New York Times, and deliver the 150 USA today to the rooms, and place > the Wall Street Journal and New York Times in the public areas, without a > charge.................................................................... > ....................Confirmed > 6. There will be a faxed copy of daily of the New York Times....... > Confirmed > 7. There is a business center available 24 hours a day with a computer, > fax and copy > machine................................................................... > . Confirmed > 8. The telephone requires a credit card to make a long distance call, so > it is not necessary to restrict the children's > rooms................................ Confirmed > 9. There will not be a golf pro on board, however we can still use the > putting green and driving cage. The boat has drivers and putters that may > be checked out for use on the > boat.................................................. Confirmed > 10. The boat has 200 snorkels available to be checked out for the entire > cruise > and 2 jet skis for use when the marina is down > ............................. Confirmed > 11. Spa reservations can be made after boarding the ship and children > under twelve years cannot use the healthclub without adult supervision > .....Confirmed > 12. The swimming pool will be closed to children after > 5:00pm..........Confirmed > 13. The aft deck will be fully stocked and open only during the > day...Confirmed > 14. There will be a daily bulletin delivered to each cabin every evening > with the > children and adult activities that are planned for the next day.......... > Confirmed > 15. There will be a travel desk open every day for questions........... > Confirmed > 16. Loraine, the cruise director, will be available every day for question > regarding the shore > excursion.......................................................Confirmed > 17. There will be a daily board listing all activities and times > ............Confirmed > 18. There will be nightly entertainment in the main dining > room.........Confirmed > 19. There will be nightly children's entertainment in the Constellation > room > i.e. games, > movies.................................................................... > ...Confirmed > 20. The casino will be open when the boat is under way and children under > the age of 21 will not be allowed in the > casino......................................Confirmed > 21. The night of Dec. 29th will be the family night with the BBQ up top > and a country and western entertainer.{Loraine's > fianc,e}........................Confirmed > 22. The boat will be netted for child safety on Dec. 27th and John Duncan > will approve the > project................................................................... > ... Confirmed > 23. There are 30 children's life vest on board the ship and children over > ten years of age will wear adult life vest. The ship has all of the ages > of the children so they can be certain the vest will > fit.................................Confirmed > 24. The Constellation room will be transformed into a children's room with > games, toys and movies. A staff member will be available for hire to > assist the nannies and parents if > needed......................................................Confirmed > 25. Daily activities will be planned for the > children...........................Confirmed > 26.Radisson has provided KJM with written confirmation of Y2K > readiness................................................................. > ....................Uncertain > 27. Radisson will provide name and credentials of the > Doctor...........Waiting c > 28. Radisson will provide baby beds for children under 3 > years.......Confirmed > 29. Radisson will convert queen beds into twins in rooms ending with 6,7,8 > or 9 when requested 30 days > out.....................................................Confirmed > 30. Radisson has two tenders that each hold 120 people for transporting > passengers from the boat to the shore > excursions...........................Confirmed > 31. KJM will provide Radisson with names of passengers having any special > occasions i.e. birthday, > anniversary..........................................Next mail out > 32. Magnetic door plates will be on each door with passenger > name.Confirmed > > I will be leaving for South America tomorrow and return on the 29th. > Please give any additions to my trusted assistant , Janelle, so she can > make sure Sheri has all the information for her meeting next week with > Roger. > > Hasta Luego mi amigos, > Tu amiga Sharon > > >

-----Original Message----- From: Nicolay, Christi L. Sent: Monday, October 22, 2001 11:59 AM To: Kitchen, Louise; Dietrich, Janet; Delainey, David; SMITH, Douglas; Lavorato, John; Black, Don; Forster, David; Duran, W. David; Belden, Tim; Calger, Christopher F.; Foster, Chris H.; Black, Tamara Jae; Aucoin, Berney C. ; Furrow, Dale; Meyn, Jim; Harvey, Claudette; Presto, Kevin M.; Jacoby, Ben Subject: FW: RTO week--State Commissioners FYI. TJ and Claudette -- please send to your groups. Thanks -----Original Message----- From: Landwehr, Susan M. Sent: Thursday, October 18, 2001 6:19 PM Thursday Morning session----Meeting with State Commissioners This session was generally known to be the occasion for state commissioners to vent their frustrations at FERC taking action without including them in the decision making process. Although the panel notice showed that 5 state commissioners would attend, upon arriving in the hearing room we found that 27 state commissioners were there and ready to claim their 15 minutes of fame. It was a long morning! I will include comments or highlights from some of the commissioners below as well as some general thoughts. Approximately 35 to 40% of the commenters were supportive of FERC and urged them to keep moving forward with their efforts. Most of these comments came from the Midwest and were somewhat muted or rational in their support. Everyone else was fairly verbal against FERC, primarily citing that fact that they had been left out of the process, that FERC was moving too quickly, and there was no evidence that there was a benefit to their citizens. In particular, the commissioners from Maryland and North Carolina delivered highly charged rhetoric. While many would think that the session was extremely negative (our friend Sarah Novosel thought it was disgusting!) in my mind it was similiar to a legislative hearing--allowing alot of whining and then addressing the main themes of discontent such as performing a cost benefit analysis. Here's some individual comments: Catherine Riley/Maryland---she started out talking about the fact that she had taken a solemn oath to uphold the constitution when she joined the MAryland commission and immediately implied that FERC was not as diligent or honest as she was in upholding the values of protecting citizens (she was way overboard in the dramatics department). She then stated that she was not at the meeting to "help you (FERC) backfill your woefully inadequate evidentiary record". It went on like this for about 15 minutes. The good part is that she was so personally negative, that her comments will not only be discounted but may be used against her. Sam Ervin/NOrth Carolina---he was also very negative and he does not believe that there are any benefits to his citizens, that customer choice is never coming to his state, so he will never benefit from an RTO, that his current statutes do not allow any transfer of transmission to an RTO (and I bet if they do, he'll work to change the statutes!) and that the bulk of state commissions are not supportive of FERC. His comments were also pretty brutal, but sugar coated just a bit with southern humor. Arnetta McRae/Delware---she kept on saying "show me" where the benefits for consumers are. She also repeatedly talked about how short of a time frame they had to respond to the order. Rory McMinn/New Mexico---repeatedly talked about how the west was different, how he is not convinced that there is a benefit to his consumers, how the FERC commissioners needed to come out west to see how different they were. Carl Wood/California--tried to portray himself and California as representing the west as a whole, and even brought along a statement from the Washington commission echoeing his comments. He delivered the same messages that we've been hearing forever---FERC should have acted sooner on price caps, etc etc. Glen Thomas/Pennsylvania---he was the first positive commenter and talked about how his state has taken great strides to bring it's energy system into the new century...that by opening it's markets they have had an explosion in green power, they have reduced costs all across the state, etc. He was very supportive of PJM (makes sense because it's in his back yard) and stated that for any RTO to be effective it must have independent governance. Judy Jones/Ohio---was very parochial in her discussion, but echoed Don Svanda's comments from earlier in the week that one RTO for the midwest was necessary and encouraged the FERC to make a decision and get on with it so that regulatory uncertainty would be removed. Ed GArvey/Minnesota---he got the gold star for the day. After very very lengthly comments from about 15 commissioners, he took about 1 minute and said "FERC--just get it done"....in essence telling them to go ahead with what they are doing and move forward. Other Commissioners who talked were: Arthur/Connecticut, Hadley/Indiana, Huelsman/Kentucky, Nugent/ Maine all on the positive side. Other negative commentors were two guys from DC and Jim Irvin from Arizona who had a rambling conversation that never really pinpointed what he wanted to do. From the FERC commissioner standpoint, the gold star went to Massey. After hearing over and over again about how the commisioners didn't feel that they had been included and that FERC had not consulted them enough, he stated that he was going to express his frustration right back, saying the "there has been 7 years of process, and he wants a process that comes to an end....you've been talking for 7 years and never could agree..." Call me if I can provide any further insights into the individual comments or the tenor of the meeting. Sue. #612-339-4599

Wanted to give you brief feedback on our efforts to become the 1st Fortune 500 Company that has a 100% green headquarters. We've established a company-wide team and a working plan going forward, which includes: 1. EES commodity team is going to run the numbers for energy commodity for facilities and give them a proposal by end of next week. While facilities will not be part of the TX pilot, EES can arrange a financial deal for them w/ an option of going physical on 1/1/02. EES commodity team will also let the group know of the offer, in order to structure the REC deal. Depending upon the savings that EES can offer to Facilities, we will determine any "headroom" for REC purchases. Note: It is not necessary for Facilities to sign a commodity deal w/ EES in order for the "greening" of the building to go forward. The RECs can be purchased and retired irrespective of the commodity deal with EES. HOWEVER, it would be optimum for Facilities to sign on w/ EES and use the cost savings toward purchase of the RECs. Facilities stated intent to do the latter. 2. Michael Payne and Mike Curry are going to be working on determining a cost for the RECs. Michael initially projected $250,000 per year for the requisite number of RECs to retire commensurate w/ the demand of the building. This was at a cost of $8 per REC, which I believe is quite high. I think they'll go for a $1-4 dollar range, bringing the cost down to a max of $125,000. There's several ways to slice this end. We can provide some of the RECs from the EWC facility and buy other RECs from the market in order to minimize the cost impact of the REC purchases. 3. Next Thursday we will be able to get more of an exact figure on the premium cost for the RECs (ie how much over the cost savings will the RECs cost). We will then need to decide the following: a. Would Corp/EHS being will to pitch in to cover any additional cost for the RECs; b. Pitching the idea to Skilling for buyoff, and payment for the RECs; c. Possibly getting buyoff from the business units since this could change what they are currently paying for power. 4. We discussed all of the above with Peggy Mahoney, and she asked us to take a stab at a comprehensive press release announcing all of the bells and whistles on the new building and our being the 1st Fortune 500 company to go 100% green in our headquarters. Catherine McKalip Thompson is working on the first draft. We need to determine if we can get the "best" press for this commitment (i.e. stories in the WSJ and NY Times). We determined that the message would need to be targeted, specifying the terms of our commitment....i.e. Enron makes a commitment for 3 years to provide 100% green for its headquarters in Houston, making it the first Fortune 500 company to....... The goal is to have a final plan and decision by April 20th when Steve speaks to high level executives at a prelude to Earth Day NY on the topic of Energy Shock--Crisis or Opportunity: Building Economics and the Environment. Mike, we'll definitely need your continued support and assistance, particularly if this goes to Skilling. I'll keep you posted on the progress. Stacey ----- Forwarded by Stacey Bolton/NA/Enron on 03/22/2001 03:14 PM ----- Stacey Bolton 03/22/2001 10:14 AM To: Scott Gahn/HOU/EES@EES, James M Wood/HOU/EES@EES, Greg Sharp/HOU/EES@EES, Richard Ring/HOU/EES@EES, Steve Woods/EPSC/HOU/ECT@ECT, Michael Payne/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mike Curry/Enron@EnronXGate, Stan Dowell/HOU/EES@EES, Catherine McKalip-Thompson/Enron Communications@Enron Communications, Peggy Mahoney/HOU/EES@EES cc: Michael Terraso/OTS/Enron@ENRON Subject: Greening the Enron Building Mtg The meeting is confirmed for today at 2:00 p.m. in 50 M03. There are a couple of folks dialing in, and the number is 800-991-9019, passcode: 6775293#. I look forward to our discussion. ----- Forwarded by Stacey Bolton/NA/Enron on 03/22/2001 10:05 AM ----- Stacey Bolton 03/16/2001 05:04 PM To: Scott Gahn/HOU/EES@EES, James M Wood/HOU/EES@EES, Greg Sharp/HOU/EES@EES, Richard Ring/HOU/EES@EES, Steve Woods/EPSC/HOU/ECT@ECT, Michael Terraso/OTS/Enron@ENRON, Michael Payne/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mike Curry/Enron@EnronXGate cc: Steven J Kean/NA/Enron@Enron, Mark Palmer/Corp/Enron@ENRON, Peggy Mahoney/HOU/EES@EES, Janel Guerrero/Corp/Enron@Enron, Jeffrey Keeler/Corp/Enron@ENRON, Catherine McKalip-Thompson/Enron Communications@Enron Communications Subject: Greening the Enron Building Mtg You are invited to a meeting next Thursday (3/22) afternoon at 2:00 to discuss energy commodity and renewable energy credits for the Enron Building, Center and Stadium. There are a few efforts that are going on simultaneously and I thought it would be a good idea for all of us to meet and get on the same page. As many of you might know, Enron Wind (Michael Payne) and ENA (Mike Curry) have a great proposal to retire renewable energy credits from our Enron Wind facility to match the consumption of the building and stadium (details attached below). If this proposal goes forward, Enron would be the 1st Fortune 500 company to "go green" in its headquarters building. Couple this w/ our energy star award, and we have GREAT environmental messaging. We'd like to highlight this announcement on Earth Day (April 22nd). The facilities folks are interested in switching from Reliant to EES for actual commodity. It makes sense to work strategically together on win-win proposal that will not only make sense economically, but that we can use in our messaging. The focus of the meeting is to discuss the various proposals, and steps for moving forward. The meeting will be in EB50MO3 from 2:00-3:00. Please let me know if you or someone from your group can attend. Stacey Bolton Environmental Strategies Enron Corp 3-9916

the stock is below $10 and the company might go bankrupt. -----Original Message----- From: Erin Richardson <[email protected]>@ENRON Sent: Tuesday, November 06, 2001 10:00 AM To: Lenhart, Matthew Subject: RE: no it's not. don't be so negative. -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Tuesday, November 06, 2001 9:52 AM To: [email protected] Subject: RE: looks like becoming a waiter is a better possibility every day. -----Original Message----- From: Erin Richardson <[email protected]>@ENRON Sent: Friday, November 02, 2001 10:31 AM To: Lenhart, Matthew Subject: RE: whatever, you're the perverted old man. -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Friday, November 02, 2001 10:30 AM To: [email protected] Subject: RE: you love it when i come over. i satisfy your appetitie for lovin. -----Original Message----- From: Erin Richardson <[email protected]>@ENRON Sent: Friday, November 02, 2001 10:26 AM To: Lenhart, Matthew Subject: RE: very funny. whatever, you had plenty of covers. if you're so miserable maybe you just shouldn't come by anymore. -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Friday, November 02, 2001 10:13 AM To: [email protected] Subject: RE: that isn't snoring, that is the sound of my teeth chattering b/c i have no covers. -----Original Message----- From: Erin Richardson <[email protected]>@ENRON Sent: Friday, November 02, 2001 10:07 AM To: Lenhart, Matthew Subject: RE: how would you know, you always fall asleep in like 2 seconds. you are the one who snores. very annoying. -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Friday, November 02, 2001 9:57 AM To: [email protected] Subject: RE: i am tired. you snore. -----Original Message----- From: Erin Richardson <[email protected]>@ENRON Sent: Tuesday, October 30, 2001 4:02 PM To: Lenhart, Matthew Subject: RE: it's not going to zero. you need to think more positively. -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Tuesday, October 30, 2001 3:25 PM To: [email protected] Subject: RE: it is going to zero -----Original Message----- From: Erin Richardson <[email protected]>@ENRON Sent: Tuesday, October 30, 2001 1:41 PM To: Lenhart, Matthew Subject: RE: nice. i just talked to fayez and he said it will be up next week. -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Tuesday, October 30, 2001 1:33 PM To: [email protected] Subject: RE: 13 days straight. it is trading just over $11. -----Original Message----- From: Erin Richardson <[email protected]>@ENRON Sent: Tuesday, October 30, 2001 1:23 PM To: Lenhart, Matthew Subject: RE: all the stocks are down, not just enron. -----Original Message----- From: Lenhart, Matthew [mailto:[email protected]] Sent: Tuesday, October 30, 2001 1:00 PM To: [email protected] Subject: the enron stock is down again. 13 days in a row. ********************************************************************** 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. **********************************************************************

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---------------------- Forwarded by Hector Campos/HOU/ECT on 11/15/2000 09:41 AM --------------------------- Emilio Ayanz <[email protected]> on 11/15/2000 06:42:15 AM To: "'Hala'" <[email protected]>, "'Tom'" <[email protected]>, "'Adam'" <[email protected]>, "'Hector'" <[email protected]>, "'Montgomery Jarrett'" <[email protected]> cc: Subject: FW: REVOCATION OF INDEPENDENCE -----Original Message----- From: Henry Spratt Sent: 15 November 2000 12:38 To: Emilio Ayanz; Paul Morgan; Claudio Lohmann Subject: FW: REVOCATION OF INDEPENDENCE -----Original Message----- From: Parker, Chris [mailto:[email protected]] <mailto:[mailto:[email protected]]> Sent: 15 November 2000 12:37 To: 'Chris Wright'; 'Graeme Summers'; 'Henry Spratt'; 'Joe Wicks'; 'Lee Bostock'; 'Matt Osborne'; 'Mike Morrison'; 'Mikey'; 'Shergar'; 'Tom Brand'; 'Stuart Mills' Subject: FW: REVOCATION OF INDEPENDENCE FOR THOSE OF YOU WORKING FOR US COMPANIES!! > -----NOTICE OF REVOCATION OF INDEPENDENCE > To the citizens of the United States of America, > In the light of your failure to elect a President of the USA and thus > to govern yourselves, we hereby give notice of the revocation of your > independence, effective today. > > Her Sovereign Majesty Queen Elizabeth II will resume monarchial duties > over all states, commonwealths and other territories. Except Utah, > which she does not fancy. Your new prime minister (The rt. hon. Tony > Blair, MP for the 97.85% of you who have until now been unaware that > there is a world outside your borders) will appoint a minister for > America without the need for further elections. Congress and the > Senate will be disbanded. A questionnaire will be circulated next year > to determine whether any of you noticed. > > To aid in the transition to a British Crown Dependency, the following > rules are introduced with immediate effect: > > 1. You should look up "revocation" in the Oxford English Dictionary. > Then look up "aluminium". Check the pronunciation guide. You will be > amazed at just how wrongly you have been pronouncing it. Generally, > you should raise your vocabulary to acceptable levels. Look up > "vocabulary". Using the same twenty seven words interspersed with > filler noises such as "like" and "you know" is an unacceptable and > inefficient form of communication. Look up "interspersed". > > 2. There is no such thing as "US English". We will let Microsoft know > on your behalf. > > 3. You should learn to distinguish the English and Australian accents. It > really isn't that hard. > > 4. Hollywood will be required occasionally to cast English actors as > the good guys. > > 5. You should relearn your original national anthem, "God Save The > Queen", but only after fully carrying out task 1. We would not want you > to get confused and give up half way through. > > 6. You should stop playing American "football". There is only > one kind of football. What you refer to as American "football" is not > a very good game. The 2.15% of you who are aware that there is a world > outside your borders may have noticed that no one else plays "American" > football. You will no longer be allowed to play it, and should instead > play proper football. Initially, it would be best if you played with > the girls. It is a difficult game. Those of you brave enough will, in > time, be allowed to play rugby (which is similar to American > "football", but does not involve stopping for a rest every twenty > seconds or wearing full kevlar body armour like nancies). We are > hoping to get together at least a US rugby sevens side by 2005. > > 7. You should declare war on Quebec and France, using nuclear > weapons if they give you any merde. The 98.85% of you who were not > aware that there is a world outside your borders should count yourselves > lucky. The Russians have never been the bad guys. "Merde" is French for > "shit". > > 8. July 4th is no longer a public holiday. November 8th will be a > new national holiday, but only in England. It will be called "Indecisive > Day". > > 9. All American cars are hereby banned. They are crap and it is for > your own good. When we show you German cars, you will understand what we > mean. > > 10. Please tell us who killed JFK. It's been driving us crazy. > > Thank you for your cooperation. > > > > PLEASE READ: The information contained in this e-mail is confidential and intended for the named recipient(s) only. If you are not an intended recipient of this email you must not copy, distribute or take any further action in reliance on it and you should delete it and notify the sender immediately. Email is not a secure method of communication and Nomura International plc cannot accept responsibility for the accuracy or completeness of this message or any attachment(s). Please check this e-mail for virus infection, for which Nomura International plc accepts no responsibility. If verification of this email is sought then please request a hard copy. Unless otherwise stated any views or opinions presented are solely those of the author and do not represent those of Nomura International plc. This email is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial instruments. Nomura International plc is regulated by the Securities and Futures Authority Limited and is a member of the London Stock Exchange.

Find these stories and more at http://www.redherring.com ------------------------------------------------------------ TOP STORY: A look at last year's top IPOs, VC firms, and banks -- before and after the fall. Going public: IPO review for 2000 http://www.redherring.com/index.asp?layout=special_report_gen&channel=30000003&rh_special_report_id=670000067&doc_id=1380019338 ------------------------------------------------------------ A D V E R T I S E M E N T Join EYESTORM for its private opening, June 5 in NY, 6-9 pm! Pioneering art media company EYESTORM--with limited edition artworks by acclaimed artists from Jeff Koons to Andy Warhol --celebrates the opening of its unique art space in NY at 60 Mercer Street @ Broome. Click here for an private invite: http://www.eyestorm.com/newyork A D V E R T I S E M E N T ------------------------------------------------------------ Catch of the Day: Trade you In an economy in which the superstars let us down, who are the heroes? I submit it's the guys out there buying stuff. Consumer confidence is surprisingly high. It's as if real people are ignoring the soggy market, the dot-com washout, and the recessionary mutterings from Gray Davis and Alan Greenspan. But aside from a tax cut, how are we going to recognize the troops? As it happens, a San Francisco company, PeopleCards, is reacting to our culture's superstar obsession by making a series of trading cards with real people on them. People can even submit themselves as candidates on the PeopleCards site. Now, if this takes off, it'll be a fad. Yet it's worth noting that the major sports card manufacturers (like Topps) are considering, if not already producing, non-sports cards. In talking to PeopleCards president Brant Herman, it occurred to me that making limited runs of cards for private use (as promotional items, for example) could be a nice business. But there are already companies doing this. While it's unlikely that the public will want to mint its own celebrities, if it does, an exit for this experiment could be an acquisition by one of the major card companies. - Rafe Needleman, [email protected] Editor, http://www.redherring.com COMPANIES * PeopleCards http://www.peoplecards.net * Topps http://www.topps.com * Trading Faces http://www.tradingfaces.com RELATED STORIES * Is it simply boom, interrupted? http://www.redherring.com/index.asp?layout=story&channel=20000002&doc_id=150019415&rh_special_report_id= * A mixed tech report card for President Bush http://www.redherring.com/index.asp?layout=story&channel=10000001&doc_id=50019205 * Ten tech stocks to avoid http://www.redherring.com/index.asp?layout=story&channel=20000002&doc_id=1950018595 * The Angler on California's depressive personality http://www.redherring.com/index.asp?layout=story&doc_id=1550018355&channel=70000007 * Market Currents: Will Greenspan make the kindest cut? http://www.redherring.com/index.asp?layout=story&channel=20000002&doc_id=1520019352 * The ten zaniest VC pitches http://www.redherring.com/index.asp?layout=story&channel=40000004&doc_id=700017670 ------------------------------------------------------------ A D V E R T I S E M E N T Join EYESTORM for its private opening, June 5 in NY, 6-9 pm! Pioneering art media company EYESTORM--with limited edition artworks by acclaimed artists from Jeff Koons to Andy Warhol --celebrates the opening of its unique art space in NY at 60 Mercer Street @ Broome. Click here for an private invite: http://www.eyestorm.com/newyork A D V E R T I S E M E N T ------------------------------------------------------------ VC and Startups How do you boot out your CEO? Why isn't Reno a great place to start a B2B company? How do you spot a bad VC? Mayfield's David Ladd returns to answer these and many more reader questions. VC P.S.: Suck it up, part 2 http://www.redherring.com/index.asp?layout=story&channel=40000004&doc_id=730019473&rh_special_report_id= Inside Tech Researchers are exploring the use of living cells and micro- organs to warn of the presence of dangerous toxins and aid in the discovery of new drugs. Lab Rat: Building a better canary http://www.redherring.com/index.asp?layout=story&channel=10000001&doc_id=740019474&rh_special_report_id= ------------------------------------------------------------ UPCOMING RED HERRING EVENTS Venture Market Europe June 11 - 12 Hilton Park Lane London, UK Herring on Hollywood July 30-31 Century Plaza Hotel Los Angeles CA Venture Market East Sept 25 - 26 Fairmont Hotel Boston MA http://events.redherring.com/ ------------------------------------------------------------ SPECIAL OFFER on RED HERRING magazine! Stay on the cutting edge of technology -- subscribe to Red Herring. By taking advantage of this special offer, you'll pay only $39 for a total of 24 issues and SAVE 67 percent off the cover price! New subscribers only, please. http://www.redherring.com/index.asp?layout=magazine_us_subscrib ------------------------------------------------------------ ADVERTISING INFORMATION For information on advertising in Red Herring newsletters, contact: [email protected] ------------------------------------------------------------ You are currently subscribed to Catch of the Day with the address [email protected]. If you wish to unsubscribe, please go to http://www.redherring.com/index.asp?layout=e_newsletters, sign in using this exact address, and uncheck the newsletters you no longer want to receive. ------------------------------------------------------------ Copyright (c) 2001 Red Herring Communications All rights reserved ------------------------------------------------------------

I'm sending this directly to your mother, Scott. "When will it end? Please just let it end!" Pauline Kael, response to watching the film, "Ishtar" "Scott Laughlin" <[email protected]> 11/30/2000 05:47 PM To: [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected] cc: Subject: Re: Hornswoggled & Bamboozled How 'bout this: Sent: Wednesday, November 15, 2000 1:05 PM Subject: TO GEORGE W. FROM M.MOORE >Dear Governor and President-in-Waiting Bush: > > This has to be the first >time in our history that a candidate > who is losing BOTH the popular vote >AND the electoral > vote insists on being anointed President of the United > > States. > > I can understand why you expect this title to be yours. >You > have spent your entire life having everything handed to you. > You >have never had to earn your place. Money and name > alone have opened >every door for you. Without effort or > hard work or intelligence or >ingenuity, you have been > bequeathed with a life of privilege. > > You >learned at an early age that, in America, all someone > like you has to do >is show up. You found yourself admitted > to a wealthy New England >boarding school simply because > your name was Bush. You did not have to >EARN your place > there. It was bought for you. > > You then learned you >could get into Yale with a "C" average. > Other, more deserving, students >who had worked hard for > 12 years to earn their place at Yale were denied >admittance. > You got in because your name was Bush. > > You got into >Harvard the same way. After screwing off > during your four years at Yale >-- and maintaining your "C" > average -- you took someone's else's seat at >Harvard, a seat > that they had EARNED. > > You then pretended to serve >a full stint in the Texas Air > National Guard. But one day, according to >the Boston Globe, > you just skipped out and didn't report back for a year >and a > half to your unit. You didn't have to earn your military record > >because your name was Bush. > > After a number of "lost years" that don't >appear in your official > biography, you were given job after job by your >daddy and > other family members -- jobs you didn't have to earn. No >matter > how many of your business ventures failed, there was always > >another one waiting to be handed to you. Finally, you got to > be a >partner in a ball team -- another gift -- even though you > put up only >1/100 of the money for the team. And then you > convinced the taxpayers of >Arlington, Texas, to give you > another perk -- a brand-new multimillion >dollar stadium. > > So it is no wonder to me why you think you deserve to >be > named President. You've haven't earned it or won it -- > therefore >it must be yours! > > And you see nothing wrong with this. > > Why >should you? It is the only life you have ever known. > > I will never >forget the footage of you sitting in your governor's > mansion the night >of the election when it was first declared > that Gore had won Florida. >Surrounded by poppy and mommy, > and on the phone to your brother the >governor of Florida, you > were a picture of calm. You had not a worry in >the world. You > told the press that your brother had assured you Florida >was > yours. If a Bush said it was so, it was so. > > But it ain't so. >And when it dawned on you that the Presidency > had to be earned and won >by a vote of the people -- yes, the > people! -- you went berserk. You >sent in hatchet man James > Baker ("F--- the Jews, they don't vote for us >anyway" was his > advice to Poppy in '92) to tell lies to the American >people and > stoke the nation's fears. When that didn't work, you went to > > federal court and sued to stop the votes from being counted > because >you knew how the vote would turn out. > > What kills me is how you have >turned to the big, bad, federal > government for help! Was not your >mantra, during every > campaign stop, the following line: > > "My >opponent trusts the federal government. I TRUST YOU, > THE PEOPLE!" > > >So now we learn the truth. You don't trust the people at all. > You went >running to the FEDERAL court to get your handout > ("Trust the machines, >not the people," you pleaded). But the > judge didn't buy it, and for >perhaps the first time in your life, > someone said "no" to you. > > >What will you do now? According to the New York Times, > 90% of your >campaign funds came from just 775 American > millionaires. Oh, that they >could bail you out of this mess! I > wouldn't count on them -- it's not >like they have suffered > financially under Clinton/Gore. They know they >will do just fine > with the Kissin' Fool. I think, my friend, you are on >your own. > > Mr. Bush, your only hope is that Gore will wimp out and > >throw in the towel. There is ample evidence of how Democrats > love to >cave. You and your right-wing friends know the > Democrats are weak-kneed >and spineless. You remember how > Al Gore and all the Democrats voted to >put that anti-abortion > zealot Scalia on the Supreme Court -- and how 11 >Democrats > made the difference in placing Clarence Thomas there, too? > > > That's your ticket. Spook Gore and his party into believing a > focus >group is mad at them, take a phony poll that backs that > up, get the >gasbag pundits to yammer and hammer him and maybe, > just maybe, you'll >get the latest plumb prize that is not yours to have. > > > Yours, > > Michael Moore > [email protected] > >www.michaelmoore.com ______________________________________________________________________________ _______ Get more from the Web. FREE MSN Explorer download : http://explorer.msn.com

TransAtlantic | The Atlantic Online | http://www.theatlantic.com March 30, 2001 + In ATLANTIC UNBOUND, The Atlantic's online journal ... Crosscurrents MAUS CULTURE by Peter Swanson Mar 29 | "It seems there's a movement afoot to class-up comic books -- both adult comics, by moving them out of the ghetto of specialty stores and sci-fi racks, and kids comics, by giving them a significant place in our pop-culture canon. I do not doubt for a moment the artistic merits of many of the books and writers in the comics field, adult or otherwise. What I wonder about is this sudden bid for legitimacy. If some of these upstarts find themselves lodged between the Styrons and the Tans on the big people shelves, will they still talk to the superhero comics?" From DC and Marvel to the latest wave of serious graphic novels, the comic book has come of age. Peter Swanson surveys the scene, and waxes just a bit nostalgic. http://www.theatlantic.com/unbound/crosscurrents/cc2001-03-29.htm Interviews A. L. KENNEDY: SPASMS OF GRACE by Julia Livshin Mar 29 | "There's no bloodlust. And even with a very good matador and a very good bull, the nature of the thing is that it isn't seamless and it can't be entirely graceful. There will be spasms of grace. It's a very odd, ramshackle thing. There are all kinds of strange pauses and clumsy bits, and patches of costume drama, and then patches of this very odd, sometimes beautiful communication." A conversation with the Scottish novelist A. L. Kennedy, whose new book, *On Bullfighting*, describes the "death, transcendence, immortality, joy, pain, isolation and fear" that is the Spanish corrida. http://www.theatlantic.com/unbound/interviews/int2001-03-29.htm Unbound Fiction POINTS OF INTEREST by Robert Cohen Mar 21 | "And then, I don't know, there was something about the way they looked that made me think: remember this. The light, the bees humming in the grass, the lazy inconsequential flow of the afternoon, and your daughter, your irritable knock-kneed eight-and-a-half year old daughter, who will never be just this way again, just this tanned and skinny and unselfconscious, this careless, careless.... I didn't think about it after that. It was all reflex." http://www.theatlantic.com/unbound/fiction/2001-03cohen.htm Interviews KAREN ARMSTRONG: DIVINE RETICENCE by Harvey Blume Mar 21 | "When I first began the study of religion, I found it difficult to get a handle on Buddhism. It didn't have any of the things I considered essential to religion, like a supernatural God, a sense of sin, authority figures, doctrines. But the more I got into religious studies, the more I began to think that this approach, this reticence about the divine, had a good deal to recommend it." Harvey Blume talks with the author of *Buddha*, the biography of a world-historical figure about whom nothing is truly known. http://www.theatlantic.com/unbound/interviews/int2001-03-21.htm Sage, Ink Mar 30 | JUST A BILL http://www.theatlantic.com/unbound/sage/ss2001-03-30.htm Mar 23 | BAAANISHED http://www.theatlantic.com/unbound/sage/ss2001-03-23.htm Cartoons by Sage Stossel. ------------------------------------------------------- + In D.C. DISPATCH | from National Journal Legal Affairs REAL CAMPAIGN REFORM -- FLOORS, NOT CEILINGS by Stuart Taylor Jr. Mar 29 | The best approach would be to provide free airtime, mailing privileges, and other subsidies to eligible candidates. http://www.theatlantic.com/politics/nj/taylor2001-03-29.htm Media WARMED-OVER TRUTH by William Powers Mar 29 | Almost nobody is undecided about global warming (or, if you prefer, alleged global warming). http://www.theatlantic.com/politics/nj/rauch2001-03-29.htm Political Pulse HOW McCAIN-FEINGOLD WOULD CONSTRICT SPEECH by William Schneider Mar 29 | Each new step down this road of restricting political spending and speech creates new problems and new inequities. http://www.theatlantic.com/politics/nj/schneider2001-03-29.htm ------------------------------------------------------- + In POST & RIPOSTE | Forum Highlights "The Next Ruling Class?" Has David Brooks drawn an accurate portrait of the meritocracy's next generation? Join us for a special forum on the April cover story. http://forum.theatlantic.com/WebX?.ee6f6b3 "Race and Genetic Research" What are the risks of exploring human genetic diversity? What are the potential rewards? Join a conversation on Steve Olson's article in the April Atlantic. http://forum.theatlantic.com/WebX?.ee6f6af Marvell's "Coy Mistress" Readers take up Linda Gregerson's provocative Atlantic Unbound essay on Andrew Marvell's classic seduction poem. http://forum.theatlantic.com/WebX?.ee6f550 ... and much more. http://www.theatlantic.com/pr/ ------------------------------------------------------------------------------ THE ATLANTIC MONTHLY EDUCATION PROGRAM Teachers, put The Atlantic's quality to work in your classroom withour new Education Program. Affordable rates, FREE Teacher's Guide, and FREE instructor's copy with each qualifying order. 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Carlos: I have visited with Lance Schuler on this matter. The kind of provision you are talking about would need to be approved by Mark Metts, Tim Detmering, the President and General Counsel of ENA ( Lance has Haedicke's proxy to sign off for ENA), and the President and General Counsel of every affiliate that would be bound by the provision. I suggest when you get in that you get a copy of the corporate policy on this kind of thing from Lance. I trust all is well with you and your family. Congratulations on the birth. Jeff Carlos Sole@ENRON 04/02/2001 01:40 PM To: Jeffrey T Hodge/HOU/ECT@ECT cc: [email protected], Fred Mitro/HOU/ECT@ECT, Ben Jacoby/HOU/ECT@ECT, Sharon Hausinger/Enron@EnronXGate Subject: Non-Compete Provision Binding Affiliates Jeff, I am working on the divestiture of a project company that had been developing a power plant site in Illinois and as part of our proposed purchase and sale agreement, the purchaser has requested a non-compete obligation of 2.5 years with respect to the project and project company that we are selling that would bind both ENA and its Affiliates. I recall that previously there was a policy which required certain approvals (including Mark Metts of Corporate Development) for non-compete agreements that were binding on other entities beyond the immediate business unit involved in the transaction. Could you help us out and let us know whom we need to contact. Thanks. PS I am working on a legal risk memo for this transaction and will forward it to you a draft later today or early tomorrow as we are hoping to DASH and close on it by the end of this week. Section 7.9 Due Diligence; Competitive Activities. (a) NOTWITHSTANDING ANYTHING STATED IN THIS PURCHASE AGREEMENT TO THE CONTRARY, PURCHASER AGREES THAT (A) SELLER RELATED PARTIES HAVE MADE NO REPRESENTATIONS, WARRANTIES, COVENANTS OR AGREEMENTS TO OR WITH PURCHASER RELATED PARTIES RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY, OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS PURCHASE AGREEMENT AND (B) PURCHASER RELATED PARTIES HAVE NOT RELIED UPON ANY REPRESENTATIONS, WARRANTIES, COVENANTS OR AGREEMENTS RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY, OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS PURCHASE AGREEMENT. PURCHASER ADDITIONALLY ACKNOWLEDGES THAT IT HAS CONDUCTED ITS OWN EVALUATION OF ALL ASPECTS (INCLUDING, WITHOUT LIMITATION, ENGINEERING, ENVIRONMENTAL, TRANSMISSION, ACCOUNTING, REGULATORY AND LEGAL) OF THE COMPANY AND THE PROJECT, AND IS RELYING SOLELY ON SUCH INVESTIGATION AND EVALUATION OF SUCH MATTERS IN DETERMINING WHETHER OR NOT TO ACQUIRE THE INTERESTS. ADDITIONALLY, PURCHASER HAS INDEPENDENTLY EVALUATED THE RISKS ASSOCIATED WITH THE DEVELOPMENT OF THE PROJECT AND THE PROSPECTS RELATING TO OBTAINING REQUIRED PERMITS, CONTRACTS, AGREEMENTS, AND ARRANGEMENTS NECESSARY FOR THE SUCCESSFUL DEVELOPMENT AND OPERATION THEREOF AND IS RELYING SOLELY ON SUCH INVESTIGATION AND EVALUATION OF SUCH MATTERS IN DETERMINING WHETHER OR NOT TO ACQUIRE THE INTERESTS. PURCHASER ACKNOWLEDGES THAT THE KENDALL PROJECT DOCUMENTS DO NOT REPRESENT OR PROVIDE FOR ALL OF THE ASSETS, PERMITS, CONTRACTS, AND AGREEMENTS NECESSARY FOR THE PROJECT, AND, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS PURCHASE AGREEMENT, SELLER MAKES NO REPRESENTATION OR WARRANTY AS TO THE ABILITY OF PURCHASER OR THE COMPANY TO OBTAIN THE SAME OR ANY OF THE TERMS THEREOF, OR AS TO THE ABILITY OR LIKELIHOOD THAT ANY OF THE OTHER PARTIES TO ANY OF SUCH DOCUMENTS SHALL PERFORM IN ACCORDANCE WITH THE TERMS THEREOF. (b) SELLER HEREBY AGREES THAT FOR A PERIOD OF ONE YEAR[THIRTY MONTHS] FOLLOWING THE CLOSING, SELLER WILL NOT DIRECTLY OPPOSE ANY ACTION BY PURCHASER OR THE COMPANY BEFORE THE CITY OF YORKVILLE OR KENDALL COUNTY AUTHORITIES IN CONNECTION WITH THE DEVELOPMENT OF THE PROJECT NO SELLER RELATED PARTY SHALL (i) TAKE OR SUPPORT ANY ACTION INTENDED BY SUCH SELLER RELATED PARTY TO (A) IMPEDE THE COMPANY
,S ABILITY TO DEVELOP THE PROJECT IN THE MANNER CONTEMPLATED BY THE KENDALL PROJECT DOCUMENTS, (B) DELAY COMPLETION OF THE PROJECT BY THE COMPANY, OR (C) MATERIALLY INCREASE THE COMPANY
,S COST TO COMPLETE THE PROJECT, OR (ii) TAKE OR SUPPORT ANY POSITION IN ANY PROCEEDING BEFORE ANY GOVERNMENTAL AUTHORITY DIRECTLY RELATING TO THE PROJECT THAT (A) CONTESTS OR SEEKS TO CONDITION THE ISSUANCE OF ANY AUTHORIZATION, APPROVAL OR CONSENT SOUGHT BY THE COMPANY OR PURCHASER, (B) CHALLENGES THE VALIDITY OF ANY AUTHORIZATION, APPROVAL OR CONSENT OBTAINED BY THE COMPANY OR PURCHASER OR (C) IS IN OPPOSITION TO THAT ASSERTED BY PURCHASER. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION 7.9(b) AND SUBJECT TO COMPLIANCE BY SELLER WITH ITS OTHER EXPRESS OBLIGATIONS IN THIS PURCHASE AGREEMENT, (i) EACH OF THE SELLER RELATED PARTIES MAY ENGAGE IN WHATEVER ACTIVITIES IT CHOOSES (INCLUDING DEVELOPMENT ACTIVITIES OR POWER PROJECTS) REGARDLESS OF WHETHER THE SAME ARE COMPETITIVE WITH THE PURCHASER OR THE COMPANY, WITHOUT HAVING OR INCURRING ANY OBLIGATION TO DISCLOSE SUCH ACTIVITIES TO PURCHASER OR THE COMPANY OR TO OFFER TO PURCHASER OR THE COMPANY ANY INTEREST IN SUCH ACTIVITIES AND (ii) NEITHER THIS PURCHASE AGREEMENT NOR ANY ACTIVITY UNDERTAKEN PURSUANT HERETO SHALL PREVENT SELLER RELATED PARTIES FROM ENGAGING IN SUCH ACTIVITIES, OR REQUIRE SELLER RELATED PARTIES TO DISCLOSE SUCH PARTICIPATION TO PURCHASER OR THE COMPANY, AND AS A MATERIAL PART OF THE CONSIDERATION FOR THE EXECUTION OF THIS PURCHASE AGREEMENT BY SELLER, PURCHASER HEREBY WAIVES, RELINQUISHES, AND RENOUNCES ANY SUCH RIGHT OR CLAIM OF NOTICE OR PARTICIPATION IN SUCH ACTIVITIES. Carlos Sole' Senior Counsel Enron North America Corp. 1400 Smith Street Houston, Texas 77002-7361 (713) 345-8191 (phone) 713 646-3393 (fax)