Re: Energy Analysis ,
 Steve,

The Secretary of Energy Ernesto Martens used to be the CEO of VITRO, our=20
client in for the Monterrey Project.  He was a board member until the day o=
f=20
his appointment.  He knows Enron well.  He used to be the President and CEO=
=20
of CINTRA the holding company for Mexicana and Aeromexico airlines.  When I=
=20
worked at McKinsey I was engaged in projects with CINTRA for two years. =20
Martens has a reputation of being a good and tough manager.  He delivers.
On the other hand he also has a reputation of being stubborn and not a good=
=20
negotiator.  We still have to convince him of the proposed electric sector=
=20
reorganization.

The good news is that Fox used many of the phrases that we wrote in the=20
documents for the transition team.  Apparently he is following the script. =
=20
When he talks about no privatization he limits it by saying: there will be =
no=20
sell out of CFE's current assets and by ensuring that the sector will be op=
en=20
to competition.

Dionisio P,rez- Jacome was appointed President of the FERC.  He is a=20
classmate of Steffes from the Kennedy School and a good friend of mine.

All of the team supporting him is Luis Tellez's team. The undersecretaries,=
=20
the president of the CRE (FERC) the directors of CFE and LFC.  The only new=
=20
face is the Director of PEMEX who used to be the President and CEO of DuPon=
t=20
in Mexico.  Ra?l Mu=0Foz was very helpful in promoting electric deregulatio=
n. =20
About a year ago he organizad a trip to Altamira in the state of Tamaulipas=
=20
in which he invited members of Congress to visit the DuPont and the BASF=20
plants there so they could see the size of the investments and what was at=
=20
risk if deregulation did not take place.  Jaime Alatorre and I were the onl=
y=20
non Congress, non-DuPont or BASF people invited.  He and Alatorre are very=
=20
very good friends.  I spent some time with him yesterday at a conference in=
=20
which I presented a document on energy and economic development and he=20
invited me to his office to discuss competition in natural gas.

CFE and LFC have the same directors which may  make change more difficult =
=20
btu it is inevitable.

Best,

Ricardo



=09Steven J Kean
=0912/04/2000 04:11 PM
=09=09=20
=09=09 To: Ricardo Charvel/NA/Enron@Enron
=09=09 cc:=20
=09=09 Subject: Energy Analysis

How are the appointments turning out from your perspective?
----- Forwarded by Steven J Kean/NA/Enron on 12/04/2000 04:11 PM -----

=09"Nike Papadopoulos" <nikep@edelmanmexico.com.mx>
=0912/04/2000 11:22 AM
=09Please respond to nikep
=09=09=20
=09=09 To: <max.yzaguirre@enron.com>, <skean@enron.com>, <rshapiro@enron.co=
m>,=20
<eric.thode@enron.com>, <jaime.alatorre@enron.com>,=20
<Ricardo.Charvel@enron.com>, <jaime.williams@enron.com>, <sirvin@enron.com>=
,=20
<msabine@enron.com>, <agustin.perez@enron.com>
=09=09 cc: <aventura@edelmanmexico.com.mx>
=09=09 Subject: Energy Analysis



Attached you will find last week's energy analysis which includes
information about Vicente Fox's Energy team.

Thank you.

 - 24Nov-3Dec.DOC
steven.kean@enron.com