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? THE POWER INDUSTRY FORUM 2001 April 25-27, 2001 - The Wigwam Resort - Phoenix, AZ download brochure at: ?http://www.pmaconference.com/forum2k1.pdf You and your colleagues have the opportunity to take advantage of a special discount off the standard program tuition to attend Infocast's 8th Annual Power Industry Forum 2001 scheduled for April 25-27, 2001 at the beautiful Wigwam Resort in Phoenix, Arizona. Attend this unique and highly acclaimed conference for only $1,295.00! The Power Industry Forum is a premier gathering of senior executives from electric and gas utilities, power marketers, independent power producers, and financial institutions in the competitive energy market, including: Aquila, Automated Power Exchange, Inc., Cinergy Corp., Deutsche Banc Alex. Brown, Duke Energy North America, LLC, Dynegy Marketing & Trade, El Paso Global Markets, Exelon Corporation, FPL Energy, LLC, Florida Progress Corporation, Green Mountain Power Corp., GPU, Inc., InterGen, Ontario Power Generation, PA Consulting, Pacificorp, Pepco, Tractebel Power Development, Inc., Trigen Energy Corporation, TXU and Xenergy Inc. Our distinguished panelists at this year's Forum will examine: Crisis 2001: Strategies in stress? Has the deregulation train derailed?? Restructuring strategies for value creation & growth? Looking past the turbulence-where will the money be made? Register and attend the pre-conference workshop, Utility & IPP Bankruptcies: Issues & Answers for FREE, and receive a 1-year subscription to Public Utilities Fortnightly! However, this offer is only good through Friday, March 23, 2001! Plus, participate in our 4th Annual Forum Golf Classic for only $100.00 held on an award-winning course designed by Robert Trent Jones, Sr. Please download?? http://www.pmaconference.com/forum2k1.pdf?? to review the stellar list of participating senior executives who will provide their strategic industry expertise. If you would like to register, please phone? (703) 641 0613 or e-mail us at info@pmaconference.com by Friday, March 23, 2001 to be registered at this exceptional price. For groups of three or more, the third and subsequent attendees receive 50% off the standard tuition.? Best regards, Your friends at the Power Marketing Association P.S. After March 23, 2001, the standard conference tuition of $1,495 will be in effect. ? Your willingness to receive emails such as this supports the free services provided by the Power Marketing Association at powermarketers.com??? If you simply cannot accept such emails, please unsubscribe from our daily email service by going to powermarketers.com and hitting the subscribe button. ? Please download? brochure at http://www.pmaconference.com/forum2k1.pdf

----------------------------------------------------------------- Your Email address has not been given to any third parties. This special offer is only sent to StockSelector.com registrants who have opted-in to receive information and special offers. This message is being delivered to you via worldatamail.com. ------------------------------------------------------------------ Dear StockSelector.com member, EarningsWhispers.com's Earnings Warning newsletter is the best way to follow the onslaught of company earnings guidance during the month of June - and it is free. You may get the newsletter emailed to you at the end of each business day simply by registering at http://www.earningswhispers.com/subscribe.asp?advert=wdssc. In addition, you may catch summaries of each earnings warning throughout each business day at http://www.earningswhispers.com/warnings.asp. It is the most complete source for earnings warnings on the Internet and is updated nearly in real-time. Best regards, StockSelector.com This is a special offer for StockSelector.com members. To be removed from this list, please go to http://www.stockselector.com/optout.asp ------------------------------------------------------------------ [ alewis@ect.enron.com ] If you would like to be omitted from future email offers via the StockSelector.com email list please reply to this message with REMOVE in the subject line. ------------------------------------------------------------------

On Feb 7, we sold 10,000 to Duke Energy Field Services at Waha. However, I entered the deal (#603484) under Duke Energy Marketing (Can you believe I made a mistake?). To correct this, I created a new ticket (#700132) under DEFS. Mary - Please repath these deals and let Megan know when you're done. Sorry for the extra work. D

Richard, Can you please follow up with Gerald regarding the below, as I'm in a class until Friday pm. Thanks Ellen -----Original Message----- From: Nemec, Gerald Sent: Tuesday, October 30, 2001 2:58 PM To: Wallumrod, Ellen Subject: FW: Mexicana Ellen, Let's talk about the attached. -----Original Message----- From: Miller, Stephanie Sent: Tuesday, October 30, 2001 2:57 PM To: Nemec, Gerald Subject: Mexicana Can you please prepare amendments as follows: Term: Nov 1 - Jan 31 Agency fee: Greater of $9,000/month or our 22% as currently structured Confirmation: Puchase price at the border is NGI Socal - $.025 for November and NGI Socal - $.01 for Dec and Jan for up to 8,000 mmbtu/day. For quantities in excess of 8,000 mmbtu/day, GDA Socal Border less $.05

I had lunch yesterday with the Natural Resources Commodities Group from Standard Chartered Bank as I had indicated to you earlier. I addressed with them our desire to potentially use the facility that they give us as a bridge loan in the event we were to purchase assets in the range of $75-90,000,000. Even though this is not a committed facility, I ask that they give us their assurance that this facility was not in jeopardy and that they bank was pleased with the line and line of business. They were able to give me that assurance, and in fact had planned on asking for more business at the lunch. This group is the commodities arm of the bank and the natural resources group produces over 75% of the revenue stream for the entire group. They are currently at 60% in excess of their budget for year 2000. This is important because banks generally do not cut off strong revenue generating arms. There are global issues, as they calculate exposure to us into the total exposure that they give to Enron companies ( not supported by Enron, but they look at their internal exposure in the aggregate). Standard Chartered just bought the Grindlays bank in India and of course there well be added exposure there. They plan on revising their limits to accommodate that and did not feel that this hinder our line in anyway. They also stated that in the event that the market went contango in the interim, they would entertain a short term increase over the current limits if it was needed. as a reminder the limits are: $150,000,000 in inventory financing L+ .55 - .75 $100,000,000 in account receivable sales L + .85 bear in mind however the collateral must be available in order to access these lines.

do we know of anybody internally that can dissect this and give us a rebuttal? This guy is a favorite source of the New York Times and I've been hearing this crap from their reporters for the past few days. -----Original Message----- From: Thode, Eric Sent: Tuesday, October 30, 2001 1:34 PM To: Kean, Steven J.; Palmer, Mark A. (PR); Denne, Karen; Philipp, Meredith; Meyer, Vance Subject: FW: Verleger report FYI.... -----Original Message----- From: jim_norman@platts.com [mailto:jim_norman@platts.com] Sent: Tuesday, October 30, 2001 11:45 AM To: Thode, Eric Subject: Verleger report Eric: Here is that report by Phil Verleger I mentioned yesterday. Please let me know if Enron has any specific reaction. (See attached file: Verleger on Enron.PDF) Regards, Jim Norman senior writer Platts Oilgram News 212-438-3050

Dale --- In answer to you questions: a.) We have traded this directly before and have just looked at it as two individual deals....a baseload purchase at index, and a sale at index plus some number with daily nom flex of zero to whatever is negotiated as the daily max. Example: Sitara deals #246931 and #246926 b.) These would definitely be separate products priced separately. I would expect a 3-day, 5-day, and 10-day product with a different two-way for each. c.) Hopefully the other answers help here. d.) To the extent that the deals are like the ones I mentioned in a.), can they bridge to Sitara (at least the baseload piece)? e.) We'll have to decide at what time the customer would have to give notice (for now let's assume 9:30 am central). The customer can make the nomination daily and would only need to notify us if they/we are going to take the gas under the second part of the deal (the non-baseload). In other words, the default would be zero, unless the customer or Enron (whoever bought the service) nominates by 9:30 am. FYI, the expectation is that there would be 3 products (at this point). The 3-day would naturally be more expensive than the 10-day. If you have any questions, please let me know. I'm hoping, that if we view the product as two separate deals, that will make things much easier system-wise. Scott Dale Neuner 05/04/2000 01:21 PM To: Scott Hendrickson/HOU/ECT@ECT cc: Sarah Mulholland/HOU/ECT@ECT, Dick Jenkins/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, David Forster/Corp/Enron@Enron, Sheri Thomas/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Jennifer deBoisblanc Denny/HOU/ECT@ECT, Frank L Davis/HOU/ECT@ECT, Jefferson D Sorenson/HOU/ECT@ECT, Larry Joe Hunter/HOU/ECT@ECT Subject: Re: New EOL Products for TCO Scott - Thanks for the explanation. A few questions/comments for you all: a) Have we been trading this Product OTC in the past, or is this unprecedented? Naturally if we've done this in the past it will be a lot easier to develop the language for the Product Description. Joe; ever seen this? b) Are we creating a single Product where the customer has the ability to choose either 10-day, 5-day, or 3-day delivery, or are these three different Products one 10-day, one 5-day, and once 3-day. I worry about having one Product where the customer has the choice between the three because each 'trade' has a Sigma Factor that helps value the transaction. I think it would be very difficult for RAC to assign a Sigma Factor to a single Product Type which allows three possible scenarios, and that SigF ultimately assists Credit in determining headroom. Tom and Bjorn; any comments? c) For the same reason above, it may be difficult to create a pricing algorithm that will give you a good value in the Position Summary. I presume the level of difficulty for questions b and this issue will be determined by the answer to question a. d) Clearly these Products will not bridge into Sitara/TAGG, so we also have to think about how the risk folks will identify these trades so they know how to book them. Jennifer; any comments? e) Using your example below: How much notice does the customer have to give before noms take place? Is it a one time notice to designate all five days, or can the customer call five different times, each time one day prior to each nom? David; am I missing anything? Scott Hendrickson 05/04/2000 08:36 AM To: Dale Neuner/HOU/ECT@ECT cc: Sarah Mulholland/HOU/ECT@ECT, Dick Jenkins/HOU/ECT@ECT Subject: New EOL Products for TCO Dale - We would like to create the following products: TCO Pool Physical Flexibility (3-day, 5-day, and 10-day) Pipeline: Columbia Gas Transmission Trading Point: TCO Pool Term: 1 Month Volume: Monthly Quantity Description --- Buyer will deliver a fixed baseload quantity to Seller at Inside FERC TCO Pool Index. Seller will deliver to Buyer, on Buyer's choice of days, up to a maximum daily volume of 10% (10-day), or 20% (5-day), or 33% (3-day) of the monthly quantity, at Inside FERC TCO Pool Index plus the price of the product. Buyer is obligated to take all volumes back by the end of the month. (Net volume to each party should be zero.) Example: Company X lifts Enron's offer for TCO Physical Flexibility at $0.03 for 300,000 MMBtu in June with 5-day payback. Company X will deliver to Enron's TCO Pool 10,000 MMBtu everyday in June. On five days of Company X's choosing, Company X can take delivery at TCO Pool from Enron of up to 60,000 MMBtu/d. Company X may take anywhere from 0-60,000 MMBtu on any day, provided they can only take a maximum quantity of 300,000 MMBtu for the month. Company X must take all 300,000 MMBtu by the end of the month. Company X will charge Enron TCO Pool Index for volumes it delivers to Enron. Enron will charge Company X TCO Pool Index plus $0.03 for volumes it delivers to Company X. I'm sure you'll have questions, so please call me at x-36736 and I'll be happy to go over it with you. Thanks, Scott

-----Original Message----- From: Schoppe, Tammie On Behalf Of Kitchen, Louise Sent: Friday, January 11, 2002 6:11 PM To: Beck, Sally Subject: FW: 2002 Netco Plan Importance: High Pre cuts Tammie Schoppe Enron Americas-Office of the Chair Assistant to Louise Kitchen 713.853.4220 office 713.646.8562 fax 713.253.2131 mobile -----Original Message----- From: Kitchen, Louise Sent: Thursday, January 10, 2002 1:34 PM To: Belden, Tim Cc: Lavorato, John Subject: FYI: 2002 Netco Plan Importance: High Current costs. In these plans we have expensed software and hardware which we will probably amortize. Gets us around the $200mm mark.

We just haven't got time this week - I assume he will understand. -----Original Message----- From: Schoppe, Tammie Sent: Thursday, October 25, 2001 2:09 PM To: Kitchen, Louise Subject: Mtg. w/Ron Slimp He was on your calendar for yesterday morning but you were unable to meet with him. Should I reschedule this? He asked to see John as well but John does not want to meet with him. Tammie Schoppe Enron Americas-Office of the Chair Assistant to Louise Kitchen 713.853.4220 office 713.646.8562 fax 713.253.2131 mobile

Shelley, Following up on Sheila's message, my planned vacation for the first half of 2002 is as follows: March 11th - 15th, June 19th - 28th and a few other scattered days on a one-day only basis. Rick -----Original Message----- From: Nacey, Sheila Sent: Tuesday, January 22, 2002 10:55 AM To: Blair, Lynn; Bryant, Mike; Corman, Shelley; Dietz, Rick; Holmes, Bradley; January, Steve; Scott, Donna Subject: 2002 Vacation plans Shelley, the following details my vacation plans for the first half of 2002: Feb 1 thru 11, Apr 22 thru 29 and June 10 thru 17. Sheila

This past Wednesday, FERC approved the NYISO's virtual bidding program, subject to a modification that reduces the required collateral for program participants by 50%. (Enron, among others, had expressed concern about the high level of required collateral in its comments.) As noted in the ISO's attached announcement, Virtual Bidding will commence on November 1. -----Original Message----- From: market_relations@nyiso.com [mailto:market_relations@nyiso.com] Sent: Friday, October 26, 2001 2:46 PM To: market_relations@nyiso.com Subject: FERC Approval of the NYISO Virtual Bidding Proposal Dear NYISO Market Participants: Please review the attached message regarding FERC approval of the NYISO Virtual Bidding Proposal. For addtional information, please contact your NYISO Customer Relations Representative or Customer Relations HelpDesk. (See attached file: FERC APPROVES VIRTUAL BIDDING.doc) Regards, NYISO Customer Relations 518-356-6060

Scott, Thanks again for hosting lunch recently in Dallas. I appreciated the open discussion around your iPlanet business as well as your views on Microsoft. As it relates to Java and Enron, we will get you an e-mail soon that summarizes the issues we brought up. Greg Piper Chief Operating Officer Enron Net Works greg.piper@enron.com

Paul, Attached are the Greeley Docs. They include: Master Firm Enfolio Confirmation to Enfolio Letter Agreement governing the Transport and Storage Arrangements Please forward to the appropriate persons at Greeley.

Louise, I have just sent you the revised Inception Document including three additional items: Single deal entry revisions, Options reports, and Transport valuation in ERMS. After discussing with Geof, we decided not to include the EOL reporting tools this time. Hopefully, you are OK with that. Please let us know if the EOL reporting tools have to be discussed in the document. Regards. Zhiyong -----Original Message----- From: Kitchen, Louise Sent: Tuesday, April 17, 2001 1:50 PM To: Wei, Zhiyong; Storey, Geoff Cc: Bibi, Philippe A.; Perlman, Beth; Stock, Stephen Subject: Re: GTV weekly status update I'm a bit confused - I think that the current document distributed for circulation is too small. I would suggest this be abandonned and a next draft produced which includes the following. Single Deal entry revisions Options reports Transport Valuation in ERMS EOL reporting tools (possible) I would like to see Phase II include the items above and an Inception document re-issued this week. Thanks Louise From: Zhiyong Wei/ENRON@enronXgate on 04/16/2001 06:30 PM To: Louise Kitchen/HOU/ECT@ECT, Geoff Storey/HOU/ECT@ECT, Philippe A Bibi/ENRON@enronXgate, Beth Perlman/ENRON@enronXgate, Stephen Stock/ENRON@enronXgate, Colleen Sullivan/HOU/ECT@ECT cc: Subject: GTV weekly status update Please find below the GTV project status update for this week. Please see the attached file for the project timeline update in Microsoft Project. GTV status meeting attendees: Zhiyong Wei, Karima Husain, Francis Lim, Jeremy Wong, Bill Fortney, Nayan Dattani, Dave Nommensen, Russ Severson, Narasim Kasaru, Mike Swaim, George Grant, Chuck Ames, Geof Storey. Accomplishments: ? Incorporating physical deal positions in TDS: o Changes to CPR reader process and its unit testing have been completed. o Changes for the view aggregation and its unit testing have been completed. o A new task has been added due to the requirement of loading prior-day curves into Position Manager (Please see the attached project timeline.) o Changes for Position Manager are in progress (Please see the attached project timeline.) ? Single point of deal entry for term deals: o Single point of deal entry is now ready for user acceptance testing. ? Gas Daily deals: o Changes to ERMS PortCalc application for the Gas Daily deals are complete and ready for testing. o Changes to TDS deal valuation are in progress and on schedule (please see the attached project timeline.) o A new task has been added to flag fixed-price positions (please see the attached project timeline.) ? Live feeds for Gas Daily/intra-month curves: o Released to production Plans for the week ending 4/20/01: ? Continue IT development of Phase I items. ? Obtain sign-off for GTV-II, Phase 2 issues and timeline. ? Commence IT development of Phase 2 issues. Issues: Incompatibility of TIBCO version 5.x and 6.x. The single point of deal entry is done using TIBCO 6.x. Some users are still using TIBCO 5.x. Upgrading to either TIBCO 6.x or Windows 2000 is needed. << File: GTV2 4-16-01.mpp >> Thanks Zhiyong

One minor edit Karen Denne 05/01/2001 07:07 PM To: Kenneth Lay/Corp/Enron@ENRON, Jeff Skilling/Corp/Enron@ENRON, Cliff Baxter/Enron@EnronXGate, Steven J Kean/NA/Enron@Enron cc: Mark Palmer/Corp/Enron@ENRON Subject: Baxter Press Release Attached is a draft press release announcing Cliff's resignation. This is scheduled to be issued tomorrow, following the distribution of the internal memo. Please let me know if you have any comments or changes. Thank you. Karen

Please respond to The Motley Fool ======================== THE MOTLEY FOOL ======================== B R E A K F A S T N E W S Thursday, May 17, 2001 benjamin.rogers@enron.com ================================================================= IN THIS ISSUE --------------------- - TOP STORY: IS DELL'S PRICE CUTTING WORKING? http://www.fool.com/m.asp?i=411713 - NEWS TO GO: HEWLETT-PACKARD, CIENA, AND KMART http://www.fool.com/m.asp?i=411714 - HOT TOPICS: STARBUCKS, RETIREMENT, AND BUSH http://www.fool.com/m.asp?i=411715 ================================================================= SPONSORED BY: IndyMac Bank Refinance Now! Interest Rates have Dropped! IndyMac Bank is the #1 rated Mortgage website and guarantees to beat any mortgage by $300. Get your FREE quote now. Find out more. http://www.lnksrv.com/m.asp?i=411716 "What the customer demands is last year's model, cheaper. To find out what the customer needs, you have to understand what the customer is doing as well as he understands it. Then you build what he needs and you educate him to the fact that he needs it." -- Nicholas Dewolf ----------------------------------------------------------------- TOP STORY ----------------------------------------------------------------- IS DELL'S PRICE CUTTING WORKING? PC maker Dell (Nasdaq: DELL) yesterday lowered guidance and reported fiscal first-quarter (ended May 4) earnings in-line with Wall Street's expectations. The company's aggressive pricing continues to yield additional market share, but it's also hurting earnings growth. >>FULL STORY: http://www.fool.com/m.asp?i=411717 ----------------------------------------------------------------- NEWS TO GO ----------------------------------------------------------------- Handheld device maker Palm (Nasdaq: PALM) expects fourth-quarter sales of $140 million to $160 million, compared to earlier guidance of $300 million to $315 million. That lowered outlook means it will post a loss of $170 million to $190 million, versus earlier guidance for earnings of $80 million to $85 million. Palm is also taking a $300 million inventory charge and canceling its merger with Extended Systems (Nasdaq: XTND) due to market conditions. The Fool covered the handheld market this week in an article entitled "Game Over for Palm and Handspring?" http://www.fool.com/m.asp?i=411718 Test and measurement equipment maker Agilent Technologies (NYSE: A) posted lower-than-expected second-quarter profits yesterday, citing slowing customer demand and a number of large order cancellations. The company reported earnings of $0.26 per share, a penny below Wall Street's consensus expectation. Agilent's sales were $2.7 billion, compared to $2.5 billion in the year-ago period. Next quarter, it expects a loss of $0.20 to $0.30 per share, well below Wall Street's earlier estimate for earnings of $0.25 per share. Embedded software vendor Wind River Systems (Nasdaq: WIND) beat lowered first-quarter estimates yesterday, but said sales would fall 10% next quarter. The company posted earnings of $0.06 per share, compared to $0.11 per share in the year-ago quarter. Revenue came in at $110.2 million. Next quarter, the company expects sales of $96 million to $99 million and earnings of $0.01 to $0.03 per share. Wind River is also cutting its workforce by 12% to 15%. The Fool covered the company's warning earlier this month. http://www.fool.com/m.asp?i=411719 Clothing retailer Gap (NYSE: GPS) said its first-quarter earnings were in-line with Wall Street's expectations. Earnings fell 2% year-over-year to $0.13 per share. Revenues increased 16% year-over-year to $3.2 billion, but same-store sales, which measure sales growth at stores that have been open for more than a year, fell 7%. Gap failed to give any guidance, instead reiterating earlier comments that same-store sales will fall in the second quarter. Two Fools Dueled over the future of the retailer earlier this month. http://www.fool.com/m.asp?i=411720 ----------------------------------------------------------------- HOT TOPICS ----------------------------------------------------------------- FOLGERS VS. STARBUCKS Folgers is developing a chilled coffee drink. Does this mean trouble for Starbucks? http://www.fool.com/m.asp?i=411721 WHAT WILL IT TAKE TO RETIRE? A Fool on the Investing Beginners board asks what's reasonable to expect for a 20-year time frame... and receives some very helpful answers. http://www.fool.com/m.asp?i=411722 BUSH BOOSTS BALLARD The president injects some energy into the search for alternative sources of power. http://www.fool.com/m.asp?i=411723 >>MORE HOT TOPICS http://www.fool.com/m.asp?i=411724 ================================================================= SPONSORED BY: IndyMac Bank Refinance Now! Interest Rates have Dropped! IndyMac Bank is the #1 rated Mortgage website and guarantees to beat any mortgage by $300. Get your FREE quote now. Find out more. http://www.lnksrv.com/m.asp?i=411725 ================================================================= My Portfolio: http://www.fool.com/m.asp?i=411726 My Discussion Boards: http://www.fool.com/m.asp?i=411727 My Fool: http://www.fool.com/m.asp?i=411728 Fool.com Home: http://www.fool.com/m.asp?i=411729 My Email Settings: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers@enron.com FAST AND FREE Grab your new Member Benefits and check out what's new for you this week. http://www.fool.com/m.asp?i=411730 CHOOSE THE BEST STOCKS FOR YOUR PORTFOLIO Lean how to evaluate companies in our online seminar. http://www.fool.com/m.asp?i=411731 FOOL DIRECT EMAIL SERVICES Unsubscribe, change your settings, temporarily suspend mail delivery: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers@enron.com EMAIL DISCUSSION BOARD Let us know what you think of our email products: http://www.fool.com/m.asp?i=411732 _________________________________________________________________ (c) Copyright 2001, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. MsgId: msg-31713-2001-05-18_9-17-02-3342218_2_Plain_MessageAddress.msg-09:24:18(5-18-2001) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com

This request has been pending your approval for 2 days. Please click http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000010092&Page= Approval to review and act upon this request. Request ID : 000000000010092 Request Create Date : 12/12/00 3:00:54 PM Requested For : diane.goode@enron.com Resource Name : VPN Resource Type : Applications

Any update on the TIBCO contract/3rd Party hosted website? Please keep me informed.

Gerald, I am inquiring regardign the status of the following contracts: 1. Transcontinental Gas Pipe Line Corporation Contract No. 96016245 2. Texas Gas Transmission Transmission Corporation Contract 96006024 3. Texas Gas Trnasmission Contract No. 96006766 Discounted Rate Letters 4. Texas Gas Trnasmission Contract No. 96037991 Discounted Rate Letter Please forward to me as soon as possible after your review and initial. Thank you. Marlene Hilliard

Hi Jamie, Tried to call you today to keep in touch but the phone just rang. Hope you are enjoying Indosuez. I have announced that I am leaving Enron at the end of February when my contract runs out. With them getting out of international infrastructure it is time to move on. I am going to retire for a while and see how the life of leisure suits me. Give me a call when you have a minute (713-646-7582). Regards, Rob "Jamie MABILAT" <jamie.mabilat@indosuez.co.uk> on 08/02/2000 03:51:48 AM To: robert.gay@enron.com, joseph.galan@enron.com, stephen.gray@enron.com cc: Subject: Update Hi guys, To keep you au fait with my latest adventures, I decided to leave Dresdner Kleinwort Benson as a result of I what I perceived to be increasing uncertainty on the investment bank's future in the context of its' failed merger(s). So I have now joined Credit Agricole Indosuez's project finance group here in London. Not quite the outfit of a DrKB but a strong franchise in project finance and a very talented, motivated team...plus I missed project finance! My details are now: Tel. (44) 20 7971 4029 Mob. (44) 7712 76 4343 e-mail: jamie.mabilat@indosuez.co.uk Hope all is well with y'all. Keep in touch. Jamie. "This E-Mail is not intended to create a legal relationship between Credit Agricole Indosuez and the recipient. Credit Agricole Indosuez is regulated by the SFA for the conduct of investment business in the UK. The information contained in this E-mail is intended for the named recipient(s) only. It may contain certain privileged and confidential information or information which is otherwise protected from disclosure and further dissemination by you could have adverse legal consequences. If you are not the intended recipient, you must not copy, distribute or take action in reliance on this information"

OUTLOOK EMAIL NOTIFICATION Your Date of Migration is: TUESDAY, JUNE 12TH YOU WILL BE UNABLE TO SEND E-MAIL unless you take the following action: Please go through your Notes email and clean out as many old/un-needed email items as possible BEFORE your date of migration.? After you are migrated to Outlook you will only be allocated 100MB of total Mailbox space.?? If more than this amount of data is migrated to Outlook YOU WILL NOT BE ABLE TO SEND E-MAIL until it is below the 100MB limit.? Cleaning up your Notes email now will prevent this from happening to YOU. Enron
,s messaging platform is migrating from Lotus Notes to Microsoft Outlook 2000 worldwide. You will be accessing Outlook for all of your email functions. WHY IS ENRON MIGRATING TO OUTLOOK 2000? Many factors contributed to the decision to migrate from Lotus Notes to Microsoft Exchange/Outlook. The most prominent factors were: ? Significant advantages to moving to a product that is more integrated with current Enron apps (Windows 2000, Office and Internet Explorer) ? More efficient Shared PC and Roaming User features ? Improved support and integration for Palm/CE devices ? Instant Messaging capabilities WHAT IS BEING MIGRATED TO OUTLOOK 2000? ? Email Messages. From the date of your scheduled migration, the last (30) thirty days of your Email will be converted for use in Outlook. ? All your folders in Notes you use to store email messages in. ? To Do Items ? Journal Items ? Calendar Entries dating from (1) one year in the past to (10) ten years in the future will be converted. ? Address Books, but NOT your Distribution Lists that you created. You will need to re-create these in Outlook. Thank you, Outlook 2000 Migration Team

Donald: Our HR group will be contacting you shortly. I apologize for the delay but we are still in the process of considering candidates. Carol St. Clair EB 3892 713-853-3989 (Phone) 713-646-3393 (Fax)

Hi Dylan, Thanks for taking care of this. At 11:17 AM 9/10/00, Dylan Windham wrote: >Okay, > >I am sorry I couldn't get back to you, but I had to work all day >yesterday. Since, Kimberly and Jeff won't be in class this week. I will >put something together to turn in based on what Kimberly sent out and what >I have already done. If Jeff or Jimmy have any things to add just send >them to me and I will include them. If we get called on Jimmy and I will >do our best to hold it together. I will be out of town the entire week of >the 18th, so I will work on the next case and send you my files. I think >we should split that one up. I will email you this week to try and coordinate. > >Have a good week. > >Dylan > > > > > >At 11:36 AM 9/10/00 -0500, jdasovic@enron.com wrote: > >>Greetings. Kim's stuff looks pretty good to me. There's a pretty high >>likelihood though that I won't be in class Monday or Tuesday either. That >>means I can't turn in whatever it is we're turning in tomorrow (if I sound >>clueless, it might be because he ran out of handouts in the first class >>describing how the cases would work, and there's nothing posted on the >>site--apologies). I can do the write-up for next week. >> >> >> >> >>Kimberly Kupiecki <kkupiecki@arpartners.com> on 09/09/2000 09:02:50 PM >> >>To: dwindham@uclink4.berkeley.edu, jjackson@haas.berkeley.edu, >> jdasovic@enron.com >>cc: >>Subject: Re: E220 Case #1 >> >> >>Hello fellow E220 mates, >> >>Attached are my attempts at Q1 and Q3. I will not be in class Mon or Tues. >> >>Jeff, can you hand the case in? >> >>I am happy to take a crack at the other questions, let me know if you would >>like me to help out there. >> >>The xcel file is a little messy, it was really just a work sheet to play >>around with the numbers, but you are welcome to it. In terms of format, >>since there is no guidance, I say we do it however we want. We could >>answer the questions in prose style, for example. The write up should be >>no more than a page and a half - but that is just my humble opinion. >> >>Cheers, >> >>At 12:40 PM 9/9/00, jdasovic@enron.com wrote: >> >> >Greetings folks. We should decide how we want to handle. One thing I'm >> >not clear on and that I couldn't find in the syllabus is, what's the >>format >> >for the write up? If we're called on to discuss, do we simply discuss >> >orally, some sort of simplistic PP slides, spreadsheets, other? Anyway to >> >discuss between now and Monday, or do we want to just take Dylan up on his >> >offer? >> > >> >Best, >> >Jeff >> > >> > >> > >> > >> >Kimberly Kupiecki <kkupiecki@arpartners.com> on 09/07/2000 06:56:44 PM >> > >> >To: jdasovic@enron.com >> >cc: dwindham@uclink4.berkeley.edu, kupiecki@haas.berkeley.edu, >> > jjackson@haas.berkeley.edu >> >Subject: Re: E220 Case #1 >> > >> > >> >Hello all, >> > >> >I will take a look at the case tonight. >> > >> >Divvying is fine with me. >> > >> >At 03:22 PM 9/7/00, jdasovic@enron.com wrote: >> > >> > >would seem useful if we all contribute in some manner, but i'm open to >> > >suggestions. perhaps we could divvy up the questions. >> > > >> > > >> > > >> > > >> > >Dylan Windham <dwindham@uclink4.berkeley.edu> on 09/07/2000 04:50:31 PM >> > > >> > >To: dasovich@haas.berkeley.edu, kupiecki@haas.berkeley.edu, >> > > jjackson@haas.berkeley.edu >> > >cc: >> > >Subject: E220 Case #1 >> > > >> > > >> > > >> > >Hello, >> > > >> > >I have started to look at the case assignment for Monday. Since, I will >> >be >> > >out of town the following week I will volunteer to write this one up. I >> > >don't know how he want to divvy up the work (by Questions or everyone >>does >> > >it all), but let me know. I have already made a spreadsheet with the >> > >combined cash flow statement that I will send to you tomorrow. Let me >> >know >> > >how we want to handle this. >> > > >> > >--Dylan >> > > >> > > >> > >Ofc. Dylan H. Windham >> > >Threat Management/Domestic Violence Unit >> > >University of California Police - Berkeley >> > >Room 1 Sproul Hall >> > >Berkeley, CA 94720 >> > >(510) 642-1606 >> > >> > >> >Kimberly Kupiecki >> >Senior Account Executive >> >A&R Partners >> >kkupiecki@arpartners.com >> >(650) 762 2800 main >> >(650) 762 2825 direct >> >fax (650) 762 2801 >> >>(See attached file: E220 Case 5-1 Northrop.xls) >>(See attached file: E220 Case 5-1Northrop.doc) >> >>Kimberly Kupiecki >>Senior Account Executive >>A&R Partners >>kkupiecki@arpartners.com >>(650) 762 2800 main >>(650) 762 2825 direct >>fax (650) 762 2801 >> >> Kimberly Kupiecki Senior Account Executive A&R Partners kkupiecki@arpartners.com (650) 762 2800 main (650) 762 2825 direct fax (650) 762 2801

Joe, Thanks for the heads up. We need to get information from you and others regarding EES capacity so we can compile the list to assume and cure post-petition claims or reject and terminate/release. We have already initiated this effort for EES and need to move to completion this week. Chris, Maria, Kelli - Please gather the information we already have and plan on getting together at 11:00 AM today to discuss. If you have any questions, please ask. Ed -----Original Message----- From: Des Champs, Joseph Sent: Tuesday, January 08, 2002 8:53 AM To: Black, Don Cc: McMichael Jr., Ed Subject: MRT Transport Don, I was contacted by Mike Stoll with MRT Pipeline regarding our FirmTransport Agreements. We have 2 agreements of 3583/day ending 5/31/04 and 577/day ending 10/31/04 totaling 4160/day delivering to LeClede. This LDC is not on the Top ten list and we are incurring demand charges daily. They offered to take back the transport at max rate which is what we paid. I don't think it is something of value and we should go ahead and release it back to them. They will draft up the paperwork and send to me for review. What do you want to do? Thanks, Joe

TODAY'S HEADLINES The New York Times on the Web Thursday, November 22, 2001 ------------------------------------------------------------ For news updated throughout the day, visit www.nytimes.com /-------------------Also From NYTimes.com------------------\ Holiday Shopping Take advantage of special offers and discounts -- on gifts, travel and luxury items from NYTimes.com's premium advertisers -- with the Holiday Shopping E-Mail. http://www.nytimes.com/services/email/email.html#holiday \---------------------------------------------------------/ QUOTE OF THE DAY ========================= "I think there is going to be some heartburn on the part of police chiefs to take on this role because this is not how we usually do business." -KEN YARBROUGH, police chief of Richardson, Tex., on Attorney General John Ashcroft's request for help interviewing 5,000 Middle Eastern men. http://www.nytimes.com/2001/11/22/national/22POLI.html?todaysheadlines NATIONAL ========================= Police Are Split on Questioning of Mideast Men Police chiefs are concerned that Attorney General John Ashcroft's request that they help interview thousands of Middle Eastern men seems like racial profiling. http://www.nytimes.com/2001/11/22/national/22POLI.html?todaysheadlines ----- Connecticut Woman, 94, Is Fifth to Die From Inhalation Anthrax Medical investigators began searching for clues as to how a widow who rarely left her house had become the country's fifth recent anthrax fatality. http://www.nytimes.com/2001/11/22/nyregion/22ANTH.html?todaysheadlines ----- Hints of an Alzheimer's Aid in Anti-Inflammatory Drugs Middle-age and elderly people who took anti-inflammatory drugs like ibuprofen or naproxen for at least two years were apparently protected from Alzheimer's disease. http://www.nytimes.com/2001/11/22/health/22ALZH.html?todaysheadlines ----- MORE NATIONAL NEWS: http://www.nytimes.com/pages/national/index.html?todaysheadline /--------------------- ADVERTISEMENT ---------------------\ FREE annual reports-- Order Now! Get FREE annual reports from EuroLand.com. Featuring a wide range of information from world-class companies including Toyota, BMW, DaimlerChrysler, NTT, DoCoMo, UBS, Tomkins Solvay, Assa Abloy, Royal & Sun Alliance and many more. Click here to order now. http://ads.nyt.com/lx.ads/email.nytimes.com/todaysheadlines/text/24360/Position3/th-europeg/eurotext.html/ \---------------------------------------------------------/ INTERNATIONAL ========================= Foreign Militants Seek Safe Passage From Afghan City Foreign militants trapped inside Kunduz have asked to leave Afghanistan through a protected corridor and travel to Pakistan. http://www.nytimes.com/2001/11/22/international/asia/22KUND.html?todaysheadlines ----- How bin Laden and Taliban Forged Jihad Ties Osama bin Laden's relationship with the Taliban helped lead the Afghan religious movement into a more global jihad and, eventually, doom. http://www.nytimes.com/2001/11/22/international/asia/22TALI.html?todaysheadlines ----- Saudi Sees No bin Laden-Iraq Link Saudi Arabia's former intelligence chief said Wednesday that his government had seen no evidence that the Iraqi government had provided support to Al Qaeda. http://www.nytimes.com/2001/11/22/international/middleeast/22SAUD.html?todaysheadlines ----- MORE INTERNATIONAL NEWS: http://www.nytimes.com/pages/world/index.html?todaysheadline BUSINESS ========================= Employees' Retirement Plan Is a Victim as Enron Tumbles The rapid decline of the Enron Corporation has devastated its employees' retirement plan, which was heavy with company stock. http://www.nytimes.com/2001/11/22/business/22RETI.html?todaysheadlines ----- Circling the Wagons Around Enron Officials of Dynegy weighed whether to seek to renegotiate the terms of the company's agreement to acquire Enron, while Enron and its bankers sought to shore up the company's finances. http://www.nytimes.com/2001/11/22/business/22ENRO.html?todaysheadlines ----- Reports Suggest Recovery Soon, but Not Exactly a Robust One The economy remains weak but reports suggest it is no longer worsening, giving weight to the increasingly popular view that a recovery is only a few months away. http://www.nytimes.com/2001/11/22/business/22ECON.html?todaysheadlines ----- MORE BUSINESS NEWS: http://www.nytimes.com/pages/business/index.html?todaysheadline TECHNOLOGY ========================= What Did You Do Before the War? New fears and new data tools are yielding a boom in background checks -- even after your hired. http://www.nytimes.com/2001/11/22/technology/circuits/22CHEC.html?todaysheadlines ----- Microsoft's Top Lawyer Sets Retirement On the heels of two major settlements, William H. Neukom, the legal field general in Microsoft's antitrust conflicts, said that he would retire next year. http://www.nytimes.com/2001/11/22/technology/22SOFT.html?todaysheadlines ----- A Thermometer That Squawks When the Bird Is Done By providing remote readouts, digital meat thermometers are designed to take the worry and the guesswork out of cooking the holiday turkey. http://www.nytimes.com/2001/11/22/technology/circuits/22HOWW.html?todaysheadlines ----- MORE TECHNOLOGY NEWS: http://www.nytimes.com/pages/technology/index.html?todaysheadline POLITICS ========================= Bush Says War May Go Beyond Afghan Border President Bush said that the United States would take the war on terrorism to nations beyond Afghanistan that harbor terrorists. http://www.nytimes.com/2001/11/22/politics/22BUSH.html?todaysheadlines ----- Ridge to Seek Big Increases for Fight on Terror Tom Ridge, the director of homeland security, said that he will seek new spending for federal law enforcement agencies and public health facilities. http://www.nytimes.com/2001/11/22/politics/22RIDG.html?todaysheadlines ----- Some Wonder Where Pataki Has Been During Uphill Fight for Billions Gov. George E. Pataki remained curiously silent while New York politicians spoke up as the White House and Congress tried to clamp down on federal aid for New York. http://www.nytimes.com/2001/11/22/nyregion/22AID.html?todaysheadlines ----- MORE POLITICS NEWS: http://www.nytimes.com/pages/politics/index.html?todaysheadline SPORTS ========================= High-Flying Suns Pull Knicks Back to Earth With Stephon Marbury directing the action, the Suns put on a high-flying, dunk-laden display as they dominated and deflated the Knicks. http://www.nytimes.com/2001/11/22/sports/basketball/22KNIC.html?todaysheadlines ----- Gruden Is Brains Behind the Raiders The Oakland Raiders' Jon Gruden possesses a multilayered personality that has led many N.F.L. general managers to call him the best young coaching talent in years. http://www.nytimes.com/2001/11/22/sports/football/22GRUD.html?todaysheadlines ----- Giant Optimism Well Above .500 Level Despite losses in four of their last six games, the Giants still stress the positives about their season and expect to win most of their remaining games. http://www.nytimes.com/2001/11/22/sports/football/22GIAN.html?todaysheadlines ----- MORE SPORTS NEWS: http://www.nytimes.com/pages/sports/index.html?todaysheadline ARTS ========================= Where Old Pianos Go to Live Unlike most museums, this important collection of historic 19th-century pianos is meant to be used. http://www.nytimes.com/2001/11/22/arts/design/22PIAN.html?todaysheadlines ----- Ballet as Balm in a Tribute to a City on the Mend It was certainly not your usual opening of a winter season by the New York City Ballet. http://www.nytimes.com/2001/11/22/arts/dance/22GALA.html?todaysheadlines ----- Catching the World in the Act of Changing The man who recorded the events of Sept. 11, Evan Fairbanks, has made a Zapruder film for our time. http://www.nytimes.com/2001/11/22/arts/design/22MAGN.html?todaysheadlines ----- MORE ARTS NEWS: http://www.nytimes.com/pages/arts/index.html?todaysheadline NY REGION ========================= Connecticut Woman, 94, Is Fifth to Die From Inhalation Anthrax Medical investigators began searching for clues as to how a widow who rarely left her house had become the country's fifth recent anthrax fatality. http://www.nytimes.com/2001/11/22/nyregion/22ANTH.html?todaysheadlines ----- Some Wonder Where Pataki Has Been During Uphill Fight for Billions Gov. George E. Pataki remained curiously silent while New York politicians spoke up as the White House and Congress tried to clamp down on federal aid for New York. http://www.nytimes.com/2001/11/22/nyregion/22AID.html?todaysheadlines ----- Developer Briefs Bloomberg on Plans to Rebuild Towers Larry A. Silverstein, the developer who holds the lease on the World Trade Center, met with Mayor-elect Michael R. Bloomberg and said that he would go ahead with plans to rebuild at the site. http://www.nytimes.com/2001/11/22/nyregion/22MIKE.html?todaysheadlines ----- MORE NY REGION NEWS: http://www.nytimes.com/pages/nyregion/index.html?todaysheadline OP-ED ========================= Hunger in the City By BOB HERBERT There is something very wrong, in a society as affluent as ours, when families have to choose between food and rent. http://www.nytimes.com/2001/11/22/opinion/22HERB.html?todaysheadlines ----- Welcome Back, Politics! By WILLIAM SAFIRE Here is the trick in political prognostication: Take what you know to be true and then play fast and loose with the possible. http://www.nytimes.com/2001/11/22/opinion/22SAFI.html?todaysheadlines ----- Educating the World By GENE SPERLING The United States should commit to getting all the world's children in school. http://www.nytimes.com/2001/11/22/opinion/22SPER.html?todaysheadlines ----- MORE OP-ED NEWS: http://www.nytimes.com/pages/opinion/index.html?todaysheadline 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. Check or uncheck the headlines you would like to receive and remember to go to the bottom of the page and click on "Save Selections." 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Start Date: 4/27/01; HourAhead hour: 15; No ancillary schedules awarded. No variances detected. LOG MESSAGES: PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001042715.txt

Enron Discusses Credit Line of $1 Billion to $2 Billion With Banks The Wall Street Journal, 10/29/01 Manager's Journal: How Enron Ran Out of Gas The Wall Street Journal, 10/29/01 Enron Seeks Additional Financing The New York Times, 10/29/01 GLOBAL INVESTING: Enron stock plunge deals a heavy blow to mutual funds Financial Times; Oct 29, 2001 COMMENT & ANALYSIS - Enron flickers. Financial Times, 10/29/01 FRONT PAGE - COMPANIES & MARKETS - Enron asks banks for additional credit. Financial Times, 10/29/01 Enron Seeks Further Credit to Reassure Investors, WSJ Says Bloomberg, 10/29/01 USA: REPEAT-Electric cowboys get roped in at the energy corral. Reuters English News Service, 10/29/01 Enron seeks new credit line; reportedly for 1-2 bln usd AFX (AP), 10/29/01 Enron Said Seeking New Credit Lines American Banker, 10/29/01 USA: Enron in talks for $1-2 bln credit line - WSJ. Reuters English News Service, 10/29/01 JAPAN: Japan's Teijin, Enron study coal-fired power plant. Reuters English News Service, 10/29/01 Enron, Teijin to Build Power Plant in Japan, Report Says Bloomberg, 10/29/01 Once-Mighty Enron Strains Under Scrutiny The New York Times, 10/28/01 Plumbing Mystery Of Deals By Enron The New York Times, 10/28/01 Investors Seem to Ignore Discouraging News The New York Times, 10/28/01 Enron Asks Banks for More Credit After Stock Slide, FT Reports Bloomberg, 10/28/2001 Enron Asks Banks For Additional Credit -FT Dow Jones Energy Service, 10/28/01 Week in Review TOP STORIES OCT. 22-26 Lockheed Edges Out Boeing for Contract Los Angeles Times, 10/28/01 Devon Energy makes building its own with major lease Houston Chronicle, 10/28/01 INDIA PRESS: Enron Plans To Exit LNG Shipping JV Dow Jones International News, 10/28/01 Enron Taps All Its Credit Lines To Buy Back $3.3 Billion of Debt The New York Times, 10/27/01 COMPANIES & FINANCE INTERNATIONAL - Enron's bond prices drop to warning levels. Financial Times, 10/27/01 SHORTS - Enron bond prices under pressure. Financial Times, 10/27/01 Enron taps credit line; stock slides Associated Press Newswires, 10/27/01 Enron Decline Continues Los Angeles Times, 10/27/01 Enron taps credit line; stock slides / Company says cash will boost confidence Houston Chronicle, 10/27/01 Enron says Microsoft breached contract Houston Chronicle, 10/27/01 How to Lose a War The New York Times, 10/27/01 City - Enron directors cash in shares. The Daily Telegraph, 10/27/01 INDIA: Lenders to meet over Enron's Dabhol on Nov 3. Reuters English News Service, 10/27/01 Enron sues Microsoft for breach of contract ; Move could block high-speed service The Seattle Times, 10/27/01 Enron Discusses Credit Line of $1 Billion to $2 Billion With Banks By Jathon Sapsford and John Emshwiller Staff Reporters of The Wall Street Journal 10/29/2001 The Wall Street Journal A10 (Copyright (c) 2001, Dow Jones & Company, Inc.) Enron Corp., scrambling to restore confidence in its finances, is negotiating with banks for a new credit line of between $1 billion and $2 billion, and is likely to close a deal within days, according to officials familiar with the matter. The new credit line is intended to bolster Enron's financial condition and head off a potentially devastating loss of investor and business confidence. The new credit would supplement existing lines, which are largely tapped out after Enron last week drew down about $3 billion to increase cash reserves and calm fears in the stock, bond and energy markets. An Enron spokesman confirmed that the company is negotiating a new credit line, but said he couldn't supply any further details. Houston-based Enron is the nation's biggest energy trader and a principal in nearly one-quarter of all electricity and natural-gas trades. Once a favorite of Wall Street, the company now is in the unfamiliar position of convincing a deeply concerned investment community that, despite difficulties, its finances remain sound. Confidence in Enron's financial situation was shaken after Enron earlier this month announced a $618 million third-quarter loss and disclosed a $1.2 billion erosion of shareholder equity related to controversial transactions it had done with entities connected to its then-chief financial officer, Andrew Fastow. Last week, Enron replaced Mr. Fastow and said that the Securities and Exchange Commission was looking into the transactions. The company has consistently said that the transactions were proper and legal. Enron's stock price fell again Friday. As of 4 p.m., in composite trading on the New York Stock Exchange, Enron shares were down 95 cents at $15.40. Enron shares have fallen 50% in the past two weeks and are down 83% from a Sept. 18, 2000, high of $89.63. Late last week, Enron tapped its existing credit lines, with part of that money being used to redeem nearly $2 billion of its outstanding commercial paper, or short-term corporate IOUs. Ron Barone of credit-rating agency Standard & Poor's said he believes that Enron was "getting a bit more resistance" recently in rolling over its commercial paper as it came due. Thus, Enron probably decided it would be easier simply to redeem the paper outstanding, he said. The Enron spokesman yesterday said that paying off the commercial paper and still leaving the company with an additional roughly $1 billion cash on hand would give it more financial flexibility. Also last week, credit-rating agencies warned investors they were reviewing Enron's debt and commercial-paper ratings for a possible downgrade. A lower rating could hamper Enron's core trading businesses. Behind the worries among these agencies, in part, is the loss of investor confidence, which one of the rating companies, Fitch, said in a report last week could impair "Enron's financial flexibility and access to capital markets, therefore impacting its ability to conduct its business." The Enron spokesman said yesterday that the company's trading partners are doing business with Enron on "essentially the same terms" as they have in the past. "There has been no significant change in the credit conditions," he said. Trading partners demanding significantly stricter terms from Enron would be a sign of further deteriorating confidence in the energy giant's finances. The banks involved in the current negotiations, including J.P. Morgan Chase & Co. and Citigroup Inc., are asking Enron for stricter covenants on the new credit line than they had asked for in the past, one official said. Bankers involved with the company say the goal of the new credit line is to show the investment community that Enron can meet its commitments. "Confidence in this company was lost," said one bank official involved in the negotiations for a new credit line. "But confidence will be restored." Corporations of Enron's size commonly establish credit lines only to demonstrate to the investment community that in case of an emergency, they have access to cash. In practice, few companies actually make use of these lines. Thus, drawing down credit lines, while providing immediate cash, also illustrates the pressure Enron is feeling. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Manager's Journal: How Enron Ran Out of Gas By Paul Kedrosky 10/29/2001 The Wall Street Journal A22 (Copyright (c) 2001, Dow Jones & Company, Inc.) Is troubled Enron Corp. the Long Term Capital Management of the energy markets, or merely yet another mismanaged company whose executives read too many of their own press releases? Or is poor Enron just misunderstood? Those are the questions after another week of Chinese water torture financial releases from the beleaguered Houston-based energy concern. A year ago Enron was the hottest of the hot. While tech stocks were tanking, Enron's shares gained 89% during 2000. Even die-hard Enron skeptics -- of which there are many -- had to concede that last year was a barnburner for the company. Earnings were up 25%, and revenues more than doubled. Not bad, considering where the company came from. A decade ago 80% of Enron's revenues came from the staid (and regulated) gas-pipeline business. No longer. Enron has been selling those assets steadily, partly fuelling revenues, but also expanding into new areas. By 2000, around 95% of its revenues and more than 80% of its profits came from trading energy, and buying and selling stakes in energy producers. The stock market applauded the move: At its peak, Enron was trading at around 55 times earnings. That's more like Cisco's once tropospheric valuation than the meager 2.5 times earnings the market affords Enron competitor Duke Energy. But Enron management wanted more. It was, after all, a "new economy" Web-based energy trader where aggressive performers were lucratively rewarded. According to Enron Chairman and CEO Ken Lay, the company deserved to be valued accordingly. At a conference early this year he told investors the company's stock should be trading much higher -- say $126, more than double its price then. Then the new economy motor stalled. The company's president left under strange circumstances. And rumors swirled about Enron's machinations in California's energy markets. Investors pored over Enron's weakening financial statements. But Enron analysts must have the energy and persistence of Talmudic scholars to penetrate the company's cryptic financials. In effect, Enron's troubles were hiding in plain sight. It should have been a warning. Because of the poor financial disclosure there was no way to assess the damage the economy was doing to the company, or how it was trying to make its numbers. Most analysts blithely concede that they really didn't know how Enron made money -- in good markets or bad. Not that Enron didn't make money, it did -- albeit with a worrisomely low return on equity given the capital required -- but sometimes revenues came from asset sales and complex off-balance sheet transactions, sometimes from energy-trading revenues. And it was very difficult to understand why or how -- or how likely it was Enron could do it again next quarter. Enron's financial inscrutability hid stranger stuff. Deep inside the company filings was mention of LJM Cayman, L.P., a private investment partnership. According to Enron's March 2000 10-K, a "senior officer of Enron is the managing member" of LJM. Well, that was a puzzler. LJM was helping Enron "manage price and value risk with regard to certain merchant and similar assets by entering into derivatives, including swaps, puts, and collars." It was, in a phrase, Enron's house hedge fund. There is nothing wrong with hedging positions in the volatile energy market -- it is crucial for a market-maker. But having an Enron executive managing and benefiting from the hedging is something else altogether, especially when the Enron executive was the company's CFO, Andrew Fastow. While he severed his connection with LJM (and related partnerships) in July of this year -- and left Enron in a whirl of confusion last week -- the damage had been done. As stories in this paper have since made clear, Mr. Fastow's LJM partnership allegedly made millions from the conflict-ridden, board-approved LJM-Enron relationship. And recently Enron ended the merry affair, taking a billion-dollar writedown against equity two weeks ago over some of LJM's wrong-footed hedging. Analysts, investors, and the Securities & Exchange Commission were left with many questions, and very few answers. To be fair, I suppose, Enron did disclose the LJM arrangement more than a year ago, saying it had erected a Chinese wall between Fastow/LJM and the company. And in a bull market, no one paid much attention to what a bad idea that horribly conflicted relationship was -- or questioned the strength of the wall. Now it matters, as do other Enron-hedged financings, a number of which look to have insufficient assets to cover debt repayments due in 2003. We didn't do anything wrong is Mr. Lay's refrain in the company's current round of entertainingly antagonistic conference calls. That remains to be seen, but at the very least the company has shown terrible judgment, and heroic arrogance in its dismissal of shareholders interests and financial transparency. Where has Enron's board of directors been through all of this? What kind of oversight has this motley collection of academics, government sorts, and retired executives exercised for Enron shareholders? Very little, it seems. It is time Enron's board did a proper investigation, and then cleaned house -- perhaps neatly finishing with themselves. --- Mr. Kedrosky is a professor of business at the University of British Colombia. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. National Desk; Section A Enron Seeks Additional Financing By RICHARD A. OPPEL Jr. 10/29/2001 The New York Times Page 9, Column 4 c. 2001 New York Times Company DALLAS, Oct. 28 -- The Enron Corporation, still struggling to reassure investors it can weather a financial crisis over complicated transactions involving its former chief financial officer, is seeking $1 billion to $2 billion in additional financing from banks, an industry official said today. Last week, Enron, the nation's largest energy-trading concern, used about $3 billion in available credit lines and spent about $2 billion to pay off commercial paper. Now, by obtaining even more financing, Enron is hoping to convince investors and other energy-trading firms that it will not face a cash squeeze that could lead trading partners to refuse to extend credit or do business with it. Enron's board, which has been holding meetings by telephone over the last two weeks to monitor the company's financial situation, held another meeting this afternoon. ''The board is meeting frequently and will announce any actions when appropriate,'' an Enron spokesman said. Two weeks ago, Enron disclosed that its shareholder equity had been reduced by $1.2 billion because of deals with investment partnerships involving its former chief financial officer, Andrew S. Fastow, who was ousted last week. The company also disclosed about $1 billion in separate write-offs, and it said last week that the Securities and Exchange Commission had made an inquiry into its financial accounting. Enron hopes to maintain its investment-grade credit rating, which is crucial to ensuring that other energy traders continue to do business with it. Lately, Enron's bonds have been trading at prices more like junk bonds, and two major credit-rating agencies are considering whether to downgrade the company's rating. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. GLOBAL INVESTING: Enron stock plunge deals a heavy blow to mutual funds Financial Times; Oct 29, 2001 By AGENCIES: AGENCY MATERIAL and ELIZABETH WINE Enron shares plunged 40 per cent in the last week,doing severe damage to mutual funds, the company's largest institutional ownership bloc, and the havoc may continue. More than 15 per cent of the 4,000 US equity funds held shares in the embattled company's shares as of the most recent reporting period, according to fund tracker Morningstar. Mutual funds held a fifth of Enron's shares, but that percentage is likely to be much lower now, say fund analysts, who suggest much of the stock's halving in October is due to large sales by institutional holders. Janus, the growth fund specialist, was the largest institutional shareholder according to the most recent filings, dated June 30, with more than 42m shares representing a stake worth Dollars 2.1bn. The stake - if still held in its entirety - would be worth Dollars 659m at Friday's closing price of Dollars 15.40. Enron shares dropped 95 cents, or 5.81 per cent on Friday, taking its total fall to nearly 41 per cent last week on concerns over accounting questions and some limited partnerships created by Andrew Fastow, former chief financial officer. On Friday, several leading rating agencies put the company's debt on credit watches, and Enron bond prices plunged. The company's stock is down 81 per cent since January. Most fund managers, including those at Janus, refuse to discuss a company in which they are actively trading. However, several mutual fund groups with large Enron stakes have said their listed positions are "dated", implying that the funds' positions in the company have changed. Morningstar analyst Christine Benz, who follows the Janus funds, said managers of the group's larger funds had been "lightening up" their Enron holdings this year. She said Blaine Rollins, who manages the Dollars 23bn flagship Janus fund, said that in September he had sold some of his stake - listed as 2.15 per cent of outstanding shares as of April 30 - but did not say when. Ken Zschappel, manager of the Dollars 11bn Aim Constellation fund, also declined to discuss his holdings, listed as 0.27 per cent of outstanding shares as of March 31. But Aim said the position had since been "trimmed substantially". Other top fund owners, as of the most recent filings, included the Alliance Premier Growth fund, the Janus Twenty, Janus Mercury and Janus Growth & Income funds, Fidelity Magellan, AXP New Dimensions Fund, Putnam Investors, Putnam Voyager and Putnam New Opportunities funds and Morgan Stanley Dividend Growth fund. Copyright: The Financial Times Limited COMMENT & ANALYSIS - Enron flickers. By SIMON LONDON and SHEILA MCNULTY. 10/29/2001 Financial Times (c) 2001 Financial Times Limited . All Rights Reserved COMMENT & ANALYSIS - Enron flickers - Once a paragon of the new economy, the US energy group is under scrutiny for its opaque accounting and free-wheeling management, write Simon London and Sheila McNulty. Enron has some explaining to do. For the past decade or more, the Texas-based company has basked in the admiration of investors and business school professors eager to understand its transformation from staid utility to fast-growing energy trader. Now it faces scrutiny of a more unwelcome kind. Its share price has been falling since the beginning of this year. The US Securities and Exchange Commission is investigating multi-million dollar deals with a private equity fund associated with its own chief financial officer, which resulted in a $1.2bn reduction in shareholders' equity. A hastily-convened conference call last week with analysts raised as many questions as it answered about these "related-party transactions". The departure of Andy Fastow, the aforementioned CFO, soon followed. With its credit rating under review by two leading ratings agencies, Enron has also been forced to draw down bank credit lines. Yesterday if confirmed it was trying to establish additional lines of liquidity. "This marks the end of Enron's walk on the wild side," observes Curt Launer, an analyst with Credit Suisse First Boston, the investment bank. On the surface, events at Enron can be explained by the combination of deteriorating trading conditions, a complex capital structure and poor investor relations. But the root causes go back further. The entrepreneurial culture and dynamic management that fuelled Enron's growth in the 1990s appear to have also sown some of the seeds of the present crisis. Therein may lie a cautionary tale for all executives trying to sprinkle "new economy" magic on to old economy companies. Enron's transformation began in earnest in 1990 with the arrival of Jeffrey Skilling, who was hired from McKinsey, the management consulting firm, to develop energy trading. For the previous decade Enron had been emerging as a force in the deregulating US energy markets under the guidance of Kenneth Lay, a former deputy under-secretary of energy. Mr Lay remains chairman. But it was Mr Skilling who spearheaded the move into trading energy as well as generating and supplying it. The two sides of the business - trading and generation/supply - have always been strange bedfellows. The former demands an entrepreneurial spirit more likely to be found on Wall Street than in a utility. Mr Skilling's answer in the early 1990s was to bring in talent from outside the company. One of his first recruits was Mr Fastow, an expert in securitisation, the repackaging of financial assets so they can be traded in financial markets. The energy trading division tried from the start to differentiate itself. A management structure was introduced with only four layers - vice-president, director, manager and associate/ analyst - much like a consulting firm. Employees were free to take as much holiday as they liked, so long as they delivered results. As one of Mr Skilling's early recruits recalled: "It was all about creating an atmosphere and deliberately breaking the rules." The seemingly free-wheeling style was based on a "loose-tight" management model expounded by Tom Peters and Bob Waterman, the management writers and McKinsey alumni. At Enron this meant that employees in the merchant energy business were encouraged by huge bonuses to pursue new ideas and innovate in existing markets. Up-and-coming employees moved freely between projects in pursuit of glory. Louise Kitchen, the 32-year-old British executive who was the creative force behind Enron Online, the group's internet-based trading platform, changed jobs or was promoted seven times in five years. Balancing these loose management practices were tight central control of risk, legal commitments, finance and performance evaluation/remuneration. Mr Skilling once described the approach in this way: "As long as you clear your deals or business ideas through those screens, you can do whatever you want around here." This approach did deliver growth and innovation. As well as making markets in its core energy products, Enron now trades everything from weather derivatives - which enable companies to insure themselves against unfavourable climatic conditions - to broadband telecommunications capacity and metals. The success of Enron Online allows the group to describe itself as the world's leading e-commerce company. It has also started marketing electricity to US consumers through a joint venture with International Business Machines and America Online, the internet service provider. In February this year Mr Skilling got his reward: he became chief executive of a group ranked seventh in Fortune magazine's list of the 500 most powerful US corporations - ahead of such corporate giants as IBM, AT&T, Bank of America and Boeing. In retrospect, however, this breakneck pace of growth and innovation was achieved at a price. First was the personal cost to Mr Skilling. In August he abruptly resigned after only six months in the top job. Personal, non-health related reasons were cited and investors have received no further explanation. A second cost was an enormous increase in financial complexity. In order to avoid a ballooning of assets and liabilities as the group expanded, Enron used a range of off-balance sheet vehicles to help finance expansion. LJM, the private equity fund in which Mr Fastow played a role, is just one of a cast of characters to be found in the footnotes to Enron's accounts. Other financing vehicles include Osprey, Marlin, Whitewing, Atlantic Water Trust and Azurix. "They went after too many things too quickly," says Stephen Moore of Moody's Investors Service, the credit ratings agency. A third cost, associated with the last, was a loss of financial transparency. The group's extensive use of swaps, options and other derivative financial instruments in its merchant energy business means that investors have little idea of how Enron actually makes its money - or the underlying risks to which it is exposed. David Fleischer, an analyst at Goldman Sachs, summed up the views of many investors during last week's conference call. He told the group's management: "The company's credibility is being severely questioned and there is a need for much more disclosure. There is an appearance that you are hiding something or that there is something going on beneath the surface that may be questionable." The fourth cost was a loss of strategic focus. "The problems, in our view, stem from Enron venturing too aggressively in areas outside of its core skills," argues Raymond Niles, analyst at Salomon Smith Barney. "Power plants in India, water companies, extension of their franchise to the mass retail market, and using a fibre-optic network to deliver content over the internet are all unrelated, or only tangentially related, to their core merchant energy business." Enron executives also appeared to get carried away with the prospects for some of these ventures. This time last year Mr Skilling was arguing that Enron Broadband was a business worth $35bn ( #24bn) in its own right. This helped push the share price to all-time highs - and storing up trouble when trading volumes failed to materialise. "They over-promised on the new business they created," says Chris Bartlett, a professor at Harvard Business School and long-time watcher of the company. "Enron was trying to ride the dotcom bubble with Enron Online and the broadband business. To some extent they are now paying the price." Will Enron weather the storm? Notwithstanding the risk of further out-of-the-blue financial shocks, most analysts believe that it will. The merchant energy business remains powerful and profitable. Mr Niles at Salomon Smith Barney points out that this side of the group drives more than 80 per cent of earnings and has shown consistent 30-40 per cent annual growth over the past three years. Assets totalling more than $4bn were also earmarked for disposal before the current crisis erupted, underlining that there is plenty of realisable value within the group's portfolio of physical energy assets. And yet the doubts remain. It is, ultimately, a question of confidence and credibility. Investors suspect that the balance between loose and tight management methods has tilted too far towards the former. Mr Lay and his team will have to tighten up. (c) Copyright Financial Times Ltd. All rights reserved. http://www.ft.com. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. FRONT PAGE - COMPANIES & MARKETS - Enron asks banks for additional credit. By SHEILA MCNULTY and GARY SILVERMAN. 10/29/2001 Financial Times (c) 2001 Financial Times Limited . All Rights Reserved Enron, the troubled US energy group, was attempting yesterday to persuade banks to provide additional credit to bolster its position after a sharp fall in its share price. The Houston-based company was also due last night to hold a special board meeting to consider confidence-building measures after surprise financial disclosures damaged its reputation among US investors. Last week the company raised $3.3bn (Euros 3.7bn) in cash to bolster its financial position but Enron admitted yesterday that it was still looking for additional finance. The company insisted, however, that it was in good financial health and that its core energy trading business remained strong. Mark Palmer, an Enron spokesman, said he hoped the company would have something to announce in coming days from its latest effort to "establish additional lines of liquidity". "Once we are able to get the liquidity position shored up, that will put a lot of fears of the unknown to rest," Mr Palmer said. The company's problems have become public since an announcement on October 16 that it would take a $1.01bn special charge and write down shareholders' equity by another $1.2bn. The moves followed losses arising from a private equity operation run by Andrew Fastow, its former chief financial officer, who was forced to take a leave of absence last week. Enron's share price has fallen more than 50 per cent since the October 16 announcement and its bonds have been trading at levels that are technically "junk" status, though its official ratings are still investment grade. "Our concern is that a reduction in the debt rating could impair their ability to operate their trading and marketing operations," said Raymond Niles of Salomon Smith Barney. "These activities require at least an investment grade credit rating, or Enron could be subject to an increase in margin requirements." The controversy over Enron's balance sheet adjustment has resulted in a request for information from the Securities and Exchange Commission. Enron flickers, Page 22. (c) Copyright Financial Times Ltd. All rights reserved. http://www.ft.com. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Seeks Further Credit to Reassure Investors, WSJ Says 2001-10-29 04:30 (New York) Houston, Oct. 29 (Bloomberg) -- Enron Corp., the largest energy trader, asked banks to provide a further credit line of as much as $2 billion in a bid to restore investor confidence in the company, the Wall Street Journal reported, citing unidentified officials close to negotiations. The new credit line is additional to the $3.3 billion credit line it tapped last week, the paper said, and should be completed within days. Investors have shunned the company since Oct. 16 when Enron reported a third quarter loss of $618 million and wrote down shareholders' equity by another $1.2 billion, the Journal said. The stock has fallen by 54 percent since the announcement. The company's shares were further dented after an investor sued Enron last month, saying dealings with two partnerships run by former Chief Financial Officer Andrew Fastow, cost the company $35 million. The suit also called Fastow's leadership of the partnerships, set up to cut Enron's debt, a conflict of interest. USA: REPEAT-Electric cowboys get roped in at the energy corral. By Janet McGurty 10/29/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Oct 26 (Reuters) - Last year, Enron Corp. was a darling of investors and analysts, but the freewheeling trader of electricity and natural gas now faces a credibility crisis due to a lack of transparency in its business dealings. Enron, trying to shake investor jitters over a possible downgrade of its credit worthiness and their unease over the company's complex financial transactions, has seen its shares shed more than half their market value in the past week. But the largest natural gas and electricity marketer in the United States is not alone in getting its wings clipped as energy prices come down and the market volatility that drove earnings last year eases. While Enron's problems differ from more traditional utilities, many other power producers are returning to their roots. They are scrapping plans for splitting operations and questioning whether more risky overseas operations can be supported by lower prices brought on by a slowing economy. Paul Patterson, an energy analyst with ABN Amro, said there are common themes affecting the industry. "One is lower power prices and the margins that are associated with them. And two is lower stock prices and the ability to finance more asset driven growth," Patterson said. As earnings fall and forward earnings guidance is revised downward, some power companies are seeking strategies to address the bleaker environment. And plans to spin off units have been postponed or called off. Shares of Enron slid $1.05, or 6.4 percent, to $15.30 in afternoon trade on the New York Stock Exchange on Friday. THE WORLD HAS CHANGED AES Corp. , a global power producer whose earnings fell for a second consecutive quarter on a poor showing from operations in Brazil and Britain, said Thursday it would revamp its organization and did not rule out selling off assets. "It's a different place," AES' chief executive officer Dennis Bakke said of the business climate facing utilities today compared with last year's powerful growth. On Friday, Constellation Energy Group , parent company of Baltimore Gas & Electric, scrapped plans to split its power generation and trading operations into two company because of economic changes. Constellation also hired a new chief executive and severed ties with Goldman Sachs, which planned to make an equity investment in the company. "The utility industry and energy markets, and indeed the entire U.S. economy, have changed considerably in the past year. As a combined company, we will be better positioned to seize opportunities to grow and deliver," said Christian Poindexter, Constellation's chairman. RETURN TO TRADITIONAL VALUES Bakke said one prong of AES's brave, new world scenario was a renewed emphasis on the traditionally profitable, long-term contract generation business. It makes sense for power generating companies to sign about 75 percent to 80 percent of their generating capacity into long-term contracts because it provides stability and a level of profitability in a period of flat growth, according to Gordon Howald, energy analyst with Credit Lyonnaise. "Calpine does it already," he said, referring to the California-based independent power producer that has the lion's share of the power it generates contracted out. "What drove the valuations in all these companies last year was that power markets were very inefficient. Physical reserve margins were low. But with flat to down demand in 2001 - as it appears to be the case - there is very little to lead us to believe that power prices will be anywhere near that level," he added. Howald said with all the new generation coming on, natural gas prices should remain high but power prices should come down further, squeezing spark spreads, or profit margins, for solely gas fired companies. SMALLER COMPANIES ALSO RETHINK STRATEGIES As lower power prices impact earnings, many power companies are turning back to U.S. markets to try to maximize their bottom line. "Earnings for the quarter is not the big deal. The big deal is that for 2002 they are not going to earn as much as people expected. It's a downward revision of earnings guidance." said Patterson. Michigan-based CMS Energy Corp. cut its earnings estimates for the second time to $2 to $2.05 for 2002, down from $2.79 and said it would sell off certain overseas assets and focus future growth primarily in North America. CMS, whose earnings were down for the third quarter, said it took a charge for planned divestitures, includingdiscontinued South American energy distribution units as well as other international investments. Allegheny Energy Inc. also changed its strategy after reporting a fall in third quarter earnings. The Maryland-based company said while it is continuing to work towards getting necessary regulatory approvals for a initial public offering to hold its unregulated assets, it will not proceed with the offering at this time. "The company will integrated until market conditions are such that demonstrated value can and will be created for shareholders," Allegheny said. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron seeks new credit line; reportedly for 1-2 bln usd 10/29/2001 AFX (AP) Copyright 2001 AFX News; Source: World Reporter (TM) NEW YORK (AFX) - Enron Corp is negotiating with banks for a new credit line, a spokesman told the Wall Street Journal. The company is in talks to raise between 1-2 bln usd and is likely to close a deal within days, it quoted officials familiar with the matter as saying. The deal, which is intended to head off a potential loss of investor and business confidence, would supplement existing lines. These are largely tapped out after Enron last week drew down about 3 bln usd to increase cash reserves and calm market fears. Enron earlier this month announced a heavy third quarter loss and erosion of shareholder equity related to controversial transactions it had done with entities connected to its then chief financial officer, Andrew Fastow. jms For more information and to contact AFX: www.afxnews.com and www.afxpress.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Markets Enron Said Seeking New Credit Lines BY LAURA MANDARO and ALISSA SCHMELKIN 10/29/2001 American Banker 31 Copyright (c) 2001 Thomson Financial, Inc. All Rights Reserved. The Texas energy and telecommunications giant Enron Corp. was reportedly negotiating with its lenders about new credit lines Friday, a day after it drew down billions on its existing lines. J.P. Morgan Chase & Co. and Citigroup Inc. are the two banking companies with the largest lending exposure to the $67 billion-asset Houston company, with an estimated $400 to $500 million in bank debt outstanding "in addition to derivatives and other structured product exposures," according to Goldman Sachs Group Inc. analyst Lori Applebaum. Morgan Chase and Citi were the book runners on a 364-day, $2.25 billion loan facility to Enron that closed in May, according to Thomson Financial Securities Data. Credit Suisse First Boston was the sole bookrunner on a $582 million loan to the company that closed in March and matures in March 2004, the data company said. Bank of America, Citigroup, and Deutsche Bank also participated, Securities Data said. On Thursday, Enron issued a statement that "in order to dispel uncertainty in the financial community," it had drawn on its committed lines of credit to provide over $1 billion of cash liquidity. The Wall Street Journal reported on Friday that Enron drew down about $3 billion from a credit line and was in talks about obtaining a new multibillion-dollar line. "We continue to have conversations new our creditors about new liquidity -- that's nothing out of the ordinary," said Enron spokesman Eric Thode. The developments followed a $638 million loss for the third quarter, the departure of Enron's chief financial officer, and a Securities and Exchange Commission inquiry. Enron, a natural gas company that has broadened its focus to include energy trading, transport, risk-management, and telecommunications products and services, has relationships with banks that extend beyond credit lines. "Citi, J.P. Morgan, and possibly Wachovia and Bank of America also invested along with Enron in some of its partnerships," said Ms. Applebaum. A spokesman for Morgan Chase confirmed that the bank was a lender but said he did not know the amount of its exposure. Many other regional banks have participated in credit facilities to Enron. Bank of America Corp. is estimated to have about $200 million to $300 million of exposure; Bank One Corp. about $100 million; and Wachovia Corp., SunTrust Banks Inc., and FleetBoston Financial Corp. about $50 million each, according to Goldman Sachs estimates. Bank of New York has between $50 to $100 million of exposure, and Northern Trust, U.S. Bancorp and KeyCorp also have some lending exposure, Ms. Applebaum said. Representatives of these banks would not comment on their relationships with Enron, or did not return phone calls by deadline. http://www.americanbanker.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: Enron in talks for $1-2 bln credit line - WSJ. 10/29/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. is negotiating with banks for a new credit line of between $1 billion and $2 billion and could close a deal within days, the Wall Street Journal reported in its online edition on Monday. According to officials close to the situation, the new credit would supplement existing credit lines, largely tapped out after the company drew down about $3 billion last week to increase cash reserves and calm jittery investors' fears, the Journal reported. The paper said that an Enron spokesman had confirmed that the company is negotiating a new credit line, but could not supply any further details. Confidence in Enron has been shattered following disclosures about its involvement in complex partnerships. Its stock has tumbled amid a U.S. Securities and Exchange Commission inquiry into the company's ousted Chief Financial Officer's links to some of the partnerships. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. JAPAN: Japan's Teijin, Enron study coal-fired power plant. 10/29/2001 Reuters English News Service (C) Reuters Limited 2001. TOKYO, Oct 29 (Reuters) - Japan's major polyester manufacturer, Teijin Ltd , said on Monday it would conduct a feasibility study with U.S. energy giant Enron Corp on building a coal-fired power plant. Teijin said in a statement that it and E Power Corp, a Japanese affiliate of Enron Corp, would look into building the 70,000 kilowatt coal-burning thermal power plant in Matsuyama, Ehime prefecture, on the southwestern island of Shikoku, where Teijin has a polyester plant. "We are beginning to consider selling surplus power to third parties other than our own plants, with eyes on further deregulation in Japan's power market," a Teijin spokesman said. Japan is in the process of deregulating its power market. Since March last year, large-lot consumers have been free to choose their suppliers. In its polyester business, Teijin has expanded overseas output while reducing domestic production, a trend which would leave it with surplus power. It is thus looking at how to make good use of any surplus. The two firms were also considering expanding the capacity of Teijin's existing power generator in Matsuyama, Teijin said. It hopes to reduce costs at the inefficient small plant with the help of Enron. Enron Corp said earlier this year it had presented plans to build a liquefied natural gas (LNG) fired power plant in northern Japan, aiming to become the first foreign company to build such a power plant in Japan. The Teijin spokesman said the two firms hoped to conclude the feasibility study by June 2002. Teijin's shares ended the day down 13 yen or 2.68 percent at 472 yen. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron, Teijin to Build Power Plant in Japan, Report Says 2001-10-28 23:39 (New York) Tokyo, Oct. 29 (Bloomberg) -- Enron Corp. and Teijin Ltd. will jointly build a coal-fired power plant in southwestern Japan as early as 2004, the Nihon Keizai newspaper said on its wire service, without citing sources. Enron, the world's biggest energy trader, and synthetic- fiber maker Teijin will together spend 1 billion yen ($8.16 million) to build the 70,000-kilowatt plant in Ehime, southwest of Tokyo, the report said. Enron wants to eventually build bigger plants and sell electricity directly to large commercial users without going through exiting utilities, the report said. Money and Business/Financial Desk; Section 3 Once-Mighty Enron Strains Under Scrutiny By ALEX BERENSON and RICHARD A. OPPEL Jr. 10/28/2001 The New York Times Page 1, Column 2 c. 2001 New York Times Company IS time running out for Enron? At the beginning of this year, the Enron Corporation, the world's dominant energy trader, appeared unstoppable. The company's decade-long effort to persuade lawmakers to deregulate electricity markets had succeeded from California to New York. Its ties to the Bush administration assured that its views would be heard in Washington. Its sales, profits and stock were soaring. And under the leadership of Jeffrey K. Skilling, its chief executive, Enron's arrogance had grown even more quickly. The company, based in Houston, dripped contempt for the regulators and consumer groups that stood between it and fully deregulated markets -- for electricity, water and everything else. Everyone would win under deregulation, Enron said -- especially its shareholders, whose stock would soar as the company profited from creating new markets. ''We are on the side of angels,'' Mr. Skilling said in March, dismissing those who saw the company as a profiteer in California's energy crisis. ''People want to have open, competitive markets. They want fair competition. It's the American way.'' But less than a year later, everybody seems to have lost, especially Enron's investors. Enron's stock is plunging, and questions about its finances are mounting. Some experts in the energy industry worry that if the crisis at the company worsens, trading in natural gas and electricity could be seriously disrupted and energy prices could grow more volatile. In a worst-case outlook, Enron could become the 2001 version of Long-Term Capital Management, the huge hedge fund whose collapse roiled financial markets during the fall of 1998. Enron's shares have fallen more than 80 percent this year, erasing $50 billion in shareholder value. Enron closed on Friday at $15.40, down 95 cents, after hitting a 52-week low of $15.04 earlier in the day. The future of electricity deregulation is in doubt, thanks to blackouts and soaring power prices in California earlier this year -- a crisis that ended only when that state contradicted deregulation's basic tenets by intervening deeply in the power market. Enron's efforts to become a profit-making water supplier and to create a new market in broadband communications capacity have been expensive failures. In August, Mr. Skilling quit, forcing Kenneth L. Lay, his predecessor as chief executive and still Enron's chairman, to resume day-to-day control of the company. The company declined to make senior executives, including Mr. Lay, available for comment, and asked that questions be submitted in writing. Mr. Skilling could not be reached. Enron's problems boiled over earlier this month, when it disclosed that its shareholders' equity, a measure of the company's value, dropped by $1.2 billion in the last quarter because of a deal disclosed only very hazily in Enron's regular financial statements. The Securities and Exchange Commission is looking into the company's financial reporting, and some investors question whether Enron has overstated profits at its primary business of trading electricity and natural gas. THE slump in the company's shares accelerated after Enron revealed the fall in its shareholders' equity. On Wednesday, the company forced out its chief financial officer, Andrew S. Fastow, who is at the center of the controversy over Enron's confusing finances. The company, which six months ago seemed to be reaping billions of dollars from California's energy crisis, today faces a potential cash crunch. The surprise about shareholder equity inflamed investors' smoldering concern about Enron's opaque financial statements. Now, with Wall Street analysts and bond-rating agencies demanding more information about the complex transactions that have fueled the company's profits, Enron has been reduced to issuing news releases assuring investors that it has adequate access to cash. Enron does not appear to be in immediate danger of running out of cash. On Thursday, the company drew down a $3.3 billion credit line it had previously arranged with a group of banks led by Citigroup and J. P. Morgan Chase, which have each extended at least $400 million. But because of Enron's importance in the natural gas and electricity markets, industry experts say that any problem at the company could disrupt energy trading nationwide. The supply of natural gas and electricity would probably not be affected even if the company failed, because Enron is mainly a trader, rather than a producer, of energy. But a crisis at the company might increase the volatility of energy prices, which have swung wildly in the last year. Philip K. Verleger Jr., an energy-markets economist, emphasized that he thought Enron would survive this crisis. But he said it was not clear what would happen if Enron ran out of cash or if traders that use the company's EnronOnline Internet trading marketplace defaulted on their obligations. ''You suddenly have all these positions they have taken on there -- are they good? Are the firm's hedges good? What's the situation?'' Mr. Verleger said. ''It's got everyone scared.'' In the short run, Enron's credit rating may be its biggest problem. If the company's rating falls below investment grade, Enron could be forced to issue tens of millions of shares of stock to cover loans that it has guaranteed. But creating new shares would make the shares that already exist less valuable, because those shares would no longer represent full ownership of the company. A drop in the company's credit rating could also prompt other energy traders and producers to back away from doing business with Enron, hurting the company's sales and profits. Enron's credit rating stands several notches above the critical point. But its bonds, which are publicly traded, have fallen so low that they are now offering interest rates of almost 10 percent, comparable with many junk bonds. Two of the three major credit-rating agencies, Moody's Investors Service and Fitch Investors Service, have put Enron's bonds on review for possible downgrades. ''The issue that's in the front of everybody's mind right now is credit,'' said Mark Gurley, senior vice president and general manager for trading at Aquila Inc., one of the nation's largest energy traders. Aquila is based in Kansas City, Mo. For now, Aquila and other major energy traders and producers, including Reliant Energy, the El Paso Corporation and Dynegy, are continuing to do business with Enron. And Mr. Gurley said that Enron's own trading in the electricity and natural gas markets did not suggest the sort of frenzied selling reminiscent of the collapse of Long-Term Capital Management in 1998. ''They haven't done anything trading-wise that gives me any indication they are closing their books down,'' he said. Still, some executives at other companies said they were looking more carefully at transactions with Enron, especially long-term contracts. They also said risk-management and credit officers were calling each other regularly to discuss the situation. Mark Palmer, an Enron spokesman, said on Friday that no energy-trading company had stopped doing business with Enron. He declined to say whether any of the company's trading partners had suspended or altered credit terms. He said the company was continuing to see normal volumes of business. But the crisis that Enron will face if its credit rating is downgraded is just a symptom of the bigger problem the company must confront. For years, the details of Enron's finances have been a mystery even to the Wall Street analysts whose job it is to follow the company, and to the investors who own its stock and bonds. When Enron's profits were soaring and it was creating lucrative new markets, shareholders did not seem to care about the impenetrability of its financial statements. Now they do. Yet the company seems incapable of offering straight answers to the questions investors ask. To others in the industry, the opaqueness of the company's financial statements parallels Enron's efforts to keep its energy-trading business lightly regulated and free of disclosure requirements. Though they do not expect Enron to crumble like Long-Term Capital Management, they say that, like the giant hedge fund, Enron uses a lot of debt, regulatory oversight is limited and outsiders have a difficult time figuring out its finances. The most pressing concerns are a series of partnerships and trusts Enron created to move some of its assets and debt off its balance sheet. With names like Marlin and Osprey, the partnerships have at least $3.3 billion in bonds outstanding, backed by assets like a stake in Azurix, Enron's water company subsidiary. Enron has promised that if the partnerships' debts exceed the value of their assets, Enron will issue enough new shares to make up the difference. DEALS with partnerships formed by Mr. Fastow, who was chief financial officer when they were organized, led to the $1.2 billion write-off in shareholders' equity that Enron announced last week. The company has offered only skimpy details of its transactions with those partnerships. Enron ended its relationships with those partnerships in the last quarter, after being criticized by shareholders. In the process, it wrote off a promissory note that it had carried on its books, reducing its shareholders' equity by $1.2 billion. But, because of complex accounting rules, the transaction was not apparent in Enron's quarterly earnings report. The transaction disturbs investors because it suggests that Enron may have found a way to hide losses, throwing the accuracy of its financial statements into question. When Enron released third-quarter earnings on Oct. 16, it reported a loss from $1 billion in write-offs on failed investments. The earnings statement did not mention the additional $1.2 billion equity write-down. But the company said its core business had been solidly profitable, and its shares rose. In a conference call with analysts after the announcement, Mr. Lay, Enron's chairman, also disclosed the reduction in shareholder equity. The reference was a brief one, however, and some listeners did not catch it. Those analysts were angered when they found out the next day what Enron had done, and many were confused by the accounting procedure. Enron's stock began to slide, and investors clamored for more information about the write-off. But so far, the company's efforts to clear up the situation have further unnerved investors. Mr. Lay has met with investors during the last two weeks to try to explain the deals, but some on Wall Street say they have come away with doubts about Mr. Lay's grasp of the situation. They say that the two people at Enron who appear to have been most knowledgeable about the deals -- Mr. Skilling and Mr. Fastow -- have both left the company. In an interview in late August, Mr. Lay said he did not know some details about the deals involving Mr. Fastow. In response to one question about them, he said, ''You're getting way over my head.'' Mr. Palmer of Enron disputed any suggestion that Mr. Lay did not have a grasp of the investments at issue, saying Mr. Lay was handicapped in talking about them because of the S.E.C. investigation. ''There is not a whole lot we can say, or should say, about them,'' Mr. Palmer said. He also said the company expected to generate about $3 billion in cash through asset sales by the end of next year. In a conference call on Tuesday, analysts pressed Mr. Lay and other top Enron executives to reveal more information about the LJM write-down and its other partnerships. Instead, they offered only vague explanations of the deal, leaving Wall Street worried that more write-offs might be coming. David Fleischer, a Goldman, Sachs analyst and a longtime supporter of the company, was among those who came away concerned. ''If Enron is unable to clarify its off-balance-sheet transactions and restore confidence in the very near term by assuring investors that no more surprises are forthcoming that would affect the balance sheet or liquidity position, then the company will likely lose access to the capital markets,'' he wrote in a research note after the call. To try to reassure investors, Enron said late Thursday that EnronOnline, its Internet-based trading exchange, executed more than 8,400 trades that day, a higher-than-normal volume. ''We know we have our work cut out for us if we are to rebuild our credibility with the investment community -- and we're working on that,'' Mr. Lay said in a statement. ''But in the meantime, the best evidence of our strength is the willingness of customers to bring their business to Enron.'' But those reassurances apparently are no longer enough for Wall Street. Enron's stock tumbled almost 6 percent Friday, to its lowest levels in six years. Now analysts are scrambling to figure out the extent of Enron's off-balance-sheet debt and to assess the risk that the company will have to issue new shares to make good on its partnership guarantees. Carol Coale, an analyst at Prudential Securities in Houston, calculates that Enron may have close to $9 billion in off-balance-sheet debt. She said that Enron had for two years been trying to sell about $6 billion in foreign assets -- including properties in Latin America and a power plant in India embroiled in a dispute with the state government -- and she worries about those prospects for sale in light of Enron's problems and the souring economy. ''As Enron is forced to sell assets to keep the ratings agencies off their backs, they may have to write those assets down,'' Ms. Coale said. On Wednesday, she downgraded her rating on Enron to ''sell'' from ''neutral.'' ''The bottom line is, it's really difficult to recommend an investment when management does not disclose the facts,'' Ms. Coale said. Short-sellers, who attacked Enron's accounting even before the company disclosed the write-off, say the company's problems may run even deeper than analysts fear. Enron may have used the partnerships not just to finance money-losing investments but to hide losses in its core trading business, they say. ''The company still isn't disclosing enough to know whether the core business, the trading business, is profitable,'' said Mark Roberts, director of research at Off Wall Street, which recommended shorting Enron's stock on May 7, when it stood at $59.43. ''The issue remains: why are they doing these transactions? Our theory has been that the core operations aren't that profitable.'' James Chanos, a leading short-seller who has bet that Enron's stock will fall, said, ''Is Enron booking gains when it has real profits, but hiding the losses when deals go against it?'' Mr. Palmer of Enron said the company stood by its reported energy-trading profits. Even traders at other energy companies say they do not have a clear picture of Enron's positions. Enron maintains that it is in no danger of being wiped out by a sharp move in electricity or gas prices because it keeps its trading book balanced -- meaning the energy it has agreed to sell is offset, in roughly equivalent amounts, by energy it has agreed to buy. ''With these guys, they tell us -- and all you've got is their word -- that they're hedged,'' said Mr. Verleger, the economist. IN fact, Enron has lobbied forcefully over the years to limit regulation and disclosure of its trading operations. Last year, the company successfully lobbied Congress to effectively ensure that its Internet-trading platform would be exempted from regulation by the Commodity Futures Trading Commission. Enron and other power traders do file limited information in reports to the Federal Energy Regulatory Commission, the agency that oversees wholesale electricity and natural gas markets. But the commission does not keep track of specific transactions and prices. Large-scale energy trading has existed for only about a half-dozen years. Enron pioneered the business, and now dominates it, accounting for about one-quarter of all trading in the United States. Before Congress and federal regulators opened up the market for wholesale electricity, a process that began in earnest a decade ago, the power business was a simpler affair. Utilities were given areas of monopoly service, and their rates -- and ability to deliver enough electricity -- were overseen by state regulators. But with the move to deregulate the business, independent and unregulated generators and traders have flourished, providing an ever-growing portion of the nation's power. Beginning in the 1980's, the sale and transportation of natural gas was also deregulated, spurring Enron, which used to be primarily a gas-pipeline company, to move into the trading business. The company's shift to trading gas and electricity accelerated in the mid-1990's, with the ascension of Mr. Skilling, who became chief executive in February, just six months before his unexpected resignation. Underscoring the change in direction, in securities filings this year Enron described its principal business as ''security brokers, dealers and flotation.'' Before, it had said it was in the business of ''wholesale-petroleum and petroleum products.'' For most of its ascent, Enron reported outstanding profit figures and Wall Street accepted them with pleasure. A year ago, when it disclosed the first transactions with partnerships led by Mr. Fastow, the company's former chief financial officer, analysts who asked questions were told that the deals were routine and were being disclosed only because of Mr. Fastow's involvement. Enron does not appear to face an immediate cash crunch. But the bank credit lines that it drew on last week to pay off its short-term debt will have to be renegotiated next spring. The controversial partnerships do not have to pay their debts until the following year -- unless Enron loses its investment-grade credit rating before that. ENRON will also need to maintain its large trading positions, which could suffer if participants in those markets grow more nervous about Enron's credit. When Long-Term Capital was stumbling in 1998, some Wall Street rivals sold the securities they thought Long-Term owned, trying to force Long-Term to sell its positions quickly and at a loss. Something similar in energy markets might be possible. If so, Enron might find, as Long-Term did, that positions that should offset each other do not. Enron's new chief financial officer may yet persuade investors that in fact the company's profits are real, and that its condition is better than the short-sellers believe. As questions are answered, confidence, and the share price, could rebound. But for now, investors are skittish, and some competitors are eager to take advantage of Enron's plight. Photos: Enron, which is building a new headquarters in Houston, grew with deregulation. But with deregulation in doubt, Enron stock has dropped. (Phillippe Diederich for The New York Times); Enron owns 65 percent of the power plant in Dabhol, India, but has had trouble collecting payments. (The New York Times)(pg. 13); 'We know we have our work cut out for us,' says Kenneth L. Lay, Enron's chief. (WGBH/''Frontline'')(pg. 1) Chart: ''Enron's Board'' Directors have not addressed the company's current difficulties, a spokesman said. KENNETH L. LAY: 58 Chairman JOHN H. DUNCAN: 73 Former chairman of the executive committee, Gulf and Western Industries ROBERT A. BELFER: 65 Chairman, Belco Oil & Gas CHARLES A. LEMAISTRE: 77 President emeritus, M. D. Anderson Cancer Center, University of Texas ROBERT K. JAEDICKE: 72 Professor emeritus, Graduate School of Business, Stanford RONNIE C. CHAN: 51 Chairman, Hang Lung Group WENDY L. GRAMM: 56 Director, Mercatus Center, George Mason University JOHN MENDELSOHN: 64 President, M. D. Anderson Cancer Center, University of Texas PAULO V. FERRAZ PEREIRA: 46 Executive vice president, Group Bozano JOHN WAKEHAM: 68 Former British Secretary of State for Energy NORMAN P. BLAKE JR.: 59 Chief executive, Comdisco KEN L. HARRISON: 58 Former chief executive, Portland General Electric (FORMER ENRON EMPLOYEE) JEROME J. MEYER: 63 Chairman, Tektronix FRANK SAVAGE: 62 Chairman, Alliance Capital Management International JOHN A. URQUHART: 72 Adviser to the chairman, Enron HERBERT S. WINOKUR JR.: 57 President of Winokur Holdings (FORMER ENRON EMPLOYEE) (pg. 13) Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Money and Business/Financial Desk; Section 3 Plumbing Mystery Of Deals By Enron By FLOYD NORRIS 10/28/2001 The New York Times Page 13, Column 6 c. 2001 New York Times Company AT the heart of the sudden collapse in investor confidence in the Enron Corporation are unusual trades it entered into with partnerships led by its chief financial officer, Andrew S. Fastow, beginning in the summer of 1999. Because they were transactions among related parties, the company was required to disclose them, but the disclosures raised as many questions as they answered. Following are some questions that investors are asking, and the currently available answers. Q. Why did Enron enter into the deals? A. Enron's first disclosures, in 1999, gave no reason. In later reports, it said it was seeking to ''hedge certain merchant investments and other assets,'' by which it apparently meant investments in technology and telecommunications companies. Q. How did those investments do? A. It looks as if they plunged in value, although there is no clear disclosure on that. Q. Why can't that be discerned? A. The company never said just what the investments were. And the transactions with the partnerships were complicated, involving a variety of derivative securities, Enron stock and various promissory notes. Enron's financial disclosures do not provide enough information to understand the arrangements completely. Q. Why were they so complicated? A. One reason may have been to use accounting rules to its advantage. One accounting rule dictates that companies may not record profits or losses on transactions in their own stock. If a company sells its shares at $10 each and then buys them back -- whether for $1 or $50 -- there is no gain or loss. But shareholder equity does go up or down on the balance sheet -- in that case reflecting how much extra cash the company took in, or paid out, on the transactions. Enron's transactions appear to have been structured to fall under that rule. Q. Who made money from these transactions? A. Enron reported some profits along the way from the deals, although not all of the profits were spelled out in its quarterly filings. And it appears that the partnerships distributed money to investors. Q. If the deals began in 1999, why all the uproar now? A. Many investors and analysts were not curious about them when everything seemed to be going well. As long as Enron was exceeding its forecasted profits each quarter, they were willing to assume that what was not being disclosed was not really important. Q. When were concerns raised with Enron? A. The complaints grew as Enron's share price fell earlier this year. By this summer, Enron decided that Mr. Fastow would sell his stake in the partnerships. Then, because the partnerships would no longer be considered related to Enron, the company would no longer have to disclose anything about the transactions. But investors were still worried, and Enron later closed out its deals with the partnerships. Q. How did Enron do? A. Badly. It took a $35 million loss, which, given the size of the transactions involved and the previous profits taken, was not very much. But it also reduced shareholder equity by $1.2 billion. Q. How did that happen? A. That, like so much else, is not clear. But it looks as if the partnership owed Enron that much money, could not pay and was let off the hook by Enron. In return, Enron terminated ''previously recorded contractual obligations to deliver Enron shares in future periods.'' Enron treated that like a share buyback, even though the shares in question had not been issued, and determined that there was no need to treat it as a loss that would reduce reported earnings. Q. Is that legal under the accounting rules? A. Presumably it is. But Enron's limited disclosures make it impossible to say for sure. Enron may have discovered ways to use the accounting rules to enable it to keep losses off income statements, while leaving profits on them. That may become clearer when the Securities and Exchange Commission, which has begun preliminary inquiries, completes its work. FLOYD NORRIS Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Money and Business/Financial Desk; Section 3 DataBank Investors Seem to Ignore Discouraging News By MICHAEL BRICK 10/28/2001 The New York Times Page 17, Column 3 c. 2001 New York Times Company Investors sent stocks markedly higher last week, despite reports on the economy and corporate profits that were resoundingly poor. The Dow Jones industrial average, strengthened by triple-digit rallies on Monday and Thursday, ended the week nearly back to its level of Sept. 10, one day before the attacks on the World Trade Center and the Pentagon. Broader indicators ended slightly higher than they were on Sept. 10. Investors overcame their initial discouragement about reports that orders for durable goods and sales of existing homes were deteriorating faster than expected. They also seemed unfazed by reports of corporate profits declining from a year ago, at some companies by more than 30 percent. All the bad news, investors seemed to surmise, meant that the government was more likely to act aggressively in stimulating the economy, with tax breaks, spending and lower interest rates. The Dow average gained 341.06, or 3.7 percent, to close at 9,545.17. The Nasdaq composite index rose 97.65 points, or 5.8 percent, to 1,768.96. The Standard & Poor's 500-stock index rose 31.13, or 2.9 percent, to 1,104.61. MICHAEL BRICK Charts: ''STOCKS IN THE NEWS'' Enron NYSE: ENE The energy trading company ousted its chief financial officer, Andrew S. Fastow, whose involvement in complicated transactions with Enron caught the attention of the S.E.C. Friday's Close: $15.40 Week's Change: -40.88% EST. '01 P/E: 8.52 SBC Communications NYSE: SBC The company posted a 30 percent decline in earnings and said it would cut thousands of jobs because of the weak economy and strong competition. Friday's Close: $39.20 Week's Change: -10.17% EST. '01 P/E: 16.82 Walt Disney NYSE: DIS After trimming $100 million from the price, Disney completed its purchase of the Fox Family Worldwide cable television operation. The deal included $2.9 billion in cash and $2.3 billion in assumed debt. Friday's Close: $18.71 Week's Change: +1.19% EST. '01 P/E: 25.28 Microsoft NNM: MSFT Microsoft introduced its computer operating system, Windows XP, the latest version of its flagship product. Friday's Close: $62.20 Week's Change: +7.43% EST. '01 P/E: 33.88 Vysis NNM: VYSI The drug maker Abbott Laboratories has agreed to acquire Vysis, a laboratory products maker, in a stock deal worth about $355 million. Friday's Close: $30.25 Week's Change: +47.13% EST. '01 P/E: -- WorldCom NNM: WCOM The long-distance telephone company posted a 44 percent drop in its third-quarter profit and warned that sales growth in its core data and Internet business would slow in the final quarter and in 2002. Friday's Close: $13.38 Week's Change: +1.59% EST. '01 P/E: 12.15 Affymetrix NNM: AFFX Affymetrix settled a patent lawsuit over DNA analysis technologies with a rival, Hyseq, and the companies plan to form a joint venture. Friday's Close: $31.70 Week's Change: +72.66% EST. '01 P/E: -- Overture Services NNM: OVER The Internet search service, formerly called GoTo.com, reported a profit in the third quarter and higher sales, as its pay-per-listing service remained popular with advertisers. Friday's Close: $25.50 Week's Change: +32.88% EST. '01 P/E: -- (Source: Bloomberg Financial Markets) Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Asks Banks for More Credit After Stock Slide, FT Reports 2001-10-28 20:20 (New York) Houston, Oct. 28 (Bloomberg) -- Enron Corp., the largest energy trader, asked banks to provide further credit after tapping a $3.3 billion credit line last week to bolster investor confidence, the Financial Times reported, citing company sources. Enron's stock has fallen more than 50 percent since Oct. 17 when an investor sued the company for conflict of interest over transactions with affiliates run by Enron's former Chief Financial Officer Andrew Fastow. The company has been shut out of the leading market for low- interest, short-term loans since announcing Oct. 16 it would take a $1.01 billion special charge and write down shareholders' equity by another $1.2 billion, the FT said. Enron spokesman Mark Palmer said he hoped the company would announce the new financing facility in coming days, the newspaper said. Enron Asks Banks For Additional Credit -FT 10/28/2001 Dow Jones Energy Service (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Enron Corp. (ENE) is attempting to persuade banks to provide additional credit, The Financial Times reported on its Web site Sunday. The company was also due to hold a special board meeting Sunday to consider confidence-building measures after surprise financial disclosures damaged its reputation among U.S. investors, The Financial Times reported. The Financial Times quoted Enron spokesman Mark Palmer as saying he hoped the company could have something to announce in coming days as a result of its latest effort to "establish additional lines of liquidity." "Once we are able to the liquidity position shored up, that will put a lot of fears of the unknown to rest," The Financial Times quoted Palmer as saying. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Business; Financial Desk Week in Review TOP STORIES OCT. 22-26 Lockheed Edges Out Boeing for Contract Abigail Goldman; Joseph Menn; Jesus Sanchez; Jeff Leeds; Chuck Philips; Meg James; Nancy Rivera Brooks; Evelyn Iritani; James F. Peltz; Myron Levin; Peter Pae 10/28/2001 Los Angeles Times Home Edition C-2 Copyright 2001 / The Times Mirror Company The vote is in. Lockheed Martin Corp. won the coveted right to build the nation's next-generation fighter aircraft, beating out Boeing Co. for what could be the biggest military contract ever. Culminating a five-year battle between two of the world's largest defense contractors, Pentagon officials picked Lockheed Martin to begin development of the Joint Strike Fighter, with plans to purchase 3,000 of the planes at a cost of more than $200 billion. With the potential for foreign sales topping another $200 billion, the contract is considered the most lucrative in U.S. history. "This really is the contract of the millennium," said Christopher Hellman, analyst with the Center for Defense Information. "Nothing has or will come close. " Peter Pae Ford Settles Lawsuit Over Faulty Part In the largest automotive class-action settlement in history, Ford Motor Co. will reimburse customers who paid hundreds of millions of dollars to replace a faulty part that caused their vehicles to stall. It was uncertain how many consumers would qualify for reimbursements in the range of $160 apiece. The settlement caps six years of litigation. Plaintiffs' lawyers said the cost to Ford would be as high as $2.7 billion. Myron Levin AMR Posts Record Loss in Quarter Even though more Americans are flying again, the airline industry continues to reel and its problems are expected to worsen this holiday season. AMR Corp., the parent of American Airlines, the world's largest airline, posted a record loss for the third quarter, even after getting $508 million in federal financial aid. Although the number of passengers has kept growing each week since the Sept. 11 attacks, about 20% fewer people are flying. Less than a month before the busy Thanksgiving weekend, American Airlines says advance bookings for November are down 6% from a year earlier. Meanwhile, the airlines are now reporting a little-noticed aspect of the government rescue package: They have to pay federal taxes on the cash grants. James F. Peltz ITC Says Imports Hurt Steel Industry The International Trade Commission ruled that foreign imports pose a serious threat to the domestic steel industry, paving the way for punitive sanctions that are likely to raise steel prices and intensify trade tensions with Europe and Asia. The independent U.S. agency has until mid-December to provide the White House with a list of proposed remedies, which could include import quotas or hefty tariffs on foreign steel. Beleaguered U.S. steelmakers applauded the decision. President Bush, who instigated the ITC investigation, is expected to approve the protective measures, though critics warn they could harm a weakened domestic economy and complicate efforts to launch a new round of global trade talks. Evelyn Iritani Shares of Enron Plummet Amid Losses Enron Corp.'s stock was pummeled by investors following disclosures of losses and shrinking shareholders' equity related to failed investments and a complicated hierarchy of limited partnerships used to shelter some Enron assets. The stock slide was compounded by disclosure of a Securities and Exchange Commission inquiry into two of the partnership arrangements and by Wall Street worries about future cash flow and credit problems that might be caused by the investment vehicles. Two conference calls with analysts and investors failed to calm nerves, and several analysts lowered their recommendations on Enron. Enron has reiterated that its finances are strong. And although analysts note that Enron's core businesses remain sound, some analysts doubt that the usually taciturn company has revealed all of its problems. To mollify investors, Enron replaced its chief financial officer, who until recently headed the two partnerships the SEC is eyeing. Nancy Rivera Brooks Pentagon OKs Northrop Bid for Newport News Northrop Grumman Corp. was all but assured of winning the bid to acquire Newport News Shipbuilding Inc. as the Pentagon endorsed the deal and the Justice Department, citing antitrust concerns, blocked a rival bid by General Dynamics Corp. It marked a stunning turn of events for Northrop, which got the nod to acquire the Virginia builder of nuclear submarines and aircraft carriers despite having been the underdog. The Los Angeles-based defense contractor made an unsolicited offer for Newport News after the shipbuilder had inked a $2.1-billion deal with General Dynamics. Separately, Northrop said third-quarter earnings fell 22% because of a large drop in pension fund investments. Peter Pae Hollywood Production Jobs Fall to 4-Year Low Skittishness following the Sept. 11 terrorist attacks has exacerbated an already slow season in Hollywood, pushing employment in the movie, television and film industry to a four-year low in September, state statistics show. Cutbacks and delayed projects by the major studios has trickled down through the industry, leading to a spate of layoffs at small companies that provide equipment and services for the industry. Meg James Grammy Officials Urge Greene Settlement High-ranking officials at the Grammy organization recommended a settlement of more than half a million dollars to resolve sexual assault and battery allegations against the nonprofit group's chief executive, C. Michael Greene, Grammy sources said. The proposed settlement, subject to approval by the group's board of directors, has ignited an internal revolt, with at least a dozen of the 41 trustees privately calling for Greene's firing, the sources said. Greene declined to comment. Attorneys for the Grammy nonprofit group previously denied that Greene assaulted or had any sexual contact with Jill Geimer, the Grammy executive who has threatened to sue over Greene's alleged misconduct. Chuck Philips EMI Ousts Record Label Executive Nancy Berry British music conglomerate EMI Group sacked Nancy Berry, the vice chairwoman of its worldwide Virgin Records division. Berry's exit came a week after the London-based record company ousted its global record chief, Ken Berry, who is Nancy Berry's former husband. The shake-up follows a dispiriting period for EMI, including a disastrous sales debut from pop icon Mariah Carey, who suffered a nervous breakdown months after signing an $80-million contract with the company this year. Nancy Berry spearheaded the elaborate marketing campaign for Carey's album, "Glitter," which has sold fewer than 400,000 copies since its Sept. 11 debut. Jeff Leeds Management Buyout of G&L Realty Approved Stockholders of G&L Realty Corp. approved a management-led buyout of the real estate investment trust despite a higher offer by a rival group and concerns that the deal unfairly favors top executives. The company's co-chairmen, Daniel Gottlieb and Steven Lebowitz, plan to take the small Beverly Hills-based company private after a majority of shareholders backed their $12-a-share offer. The management-led offer triggered a shareholder lawsuit this year that claimed G&L's board breached its fiduciary duty Jesus Sanchez Internet Archive Turns Back Web Pages of Time The nonprofit Internet Archive launched its so-called Wayback Machine, allowing Web surfers to check out most Internet sites that have vanished and older versions of sites that are still around. The San Francisco effort is the brainchild of Brewster Kahle, a millionaire technologist who wants to preserve the Internet's ephemera for generations to come. Like many Internet pioneers, however, Kahle faces unfamiliar risks along with the opportunities: the archive might be the most massive violation of copyright law since ownership rights over words came into being. More than 10 billion pages are available at http://web.archive.org. Joseph Menn Job Cuts, Make-Over in Store for Sears Sears, Roebuck & Co. is getting a new look, borrowing from competitors that have been biting into Sears bottom line. In a bid the company says will increase operating income by $1 billion during the next three years, Sears will look more like a mass merchant, with more self-serve areas and centralized checkouts. As part of its financial realignment, Sears will cut 4,900 jobs in the next 18 months. The company's challenge, analysts say, is to offer something unique within its niche of serving middle-income consumers--an ever difficult proposition against innovative rivals such as Kohl's and Target. Abigail Goldman PHOTO: Newport News builds nuclear submarines and aircraft carriers.; ; PHOTOGRAPHER: Associated Press; PHOTO: Sears is cutting nearly 5,000 jobs and launching a new strategy.; ; PHOTOGRAPHER: Associated Press; PHOTO: The reeling airline industry is expecting its problems to worsen.; ; PHOTOGRAPHER: Agence France-Presse; GRAPHIC: Dimming Power, Los Angeles Times; Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. BUSINESS Ralph Bivins Devon Energy makes building its own with major lease RALPH BIVIN Staff 10/28/2001 Houston Chronicle 2 STAR 10 (Copyright 2001) HOUSTON is known as the "Energy Capital of the World." And a glance around the downtown skyline proves the nickname is appropriate. Houston skyscrapers bearing the names of Enron, Chevron, Exxon and Shell make significant contributions to the view. Now another name is being added to the downtown mix, enhancing the energy capital image even further. The 36-story Two Allen Center has been renamed Devon Energy Tower. Devon Energy has just signed a lease for 193,000 square feet of space, more than doubling its presence in the building, and as part of the deal, Devon gets to put its name on the structure. The lease also gives Oklahoma City-based Devon the right to take more space in the 1 million-square-foot building, at 1212 Smith St. Devon recently announced its plans to acquire Mitchell Energy & Development, but it will maintain Mitchell's offices in The Woodlands, said Klay Kimker, manager of office administration for Devon. Kevin Snodgrass and Tim Relyea of Cushman & Wakefield represented Devon in the transaction. Paul Frazier and Margaret Sigur negotiated the deal on behalf of TrizecHahn Office Properties, the owner of the building. TrizecHahn owns both the Allen Center and Cullen Center office complexes, a total of 6 million square feet of space in downtown. The TrizecHahn office space is nearly full right now, but Enron will be vacating large amounts of space there next year when the nearby Enron building is complete. Teamsters to build facilities Teamsters Union officials are planning to build new headquarters facilities after the union sells its building on the Katy Freeway. To replace the Katy Freeway building, the union expects to build two smaller structures near Bush Intercontinental Airport to house different chapters, said A.W. Parker, secretary treasurer of Local 968. Parker's group is expecting to build a 13,000-square-foot building at Ella Boulevard at Beltway 8. Another Teamsters group has purchased 4.5 acres on Beltway 8 at Diplomatic Plaza Drive, in the World Houston Business Center. The land was purchased from the Licha Family Trust. Tony Patronella and Marc Drumwright, both of Southwest Realty Advisors, handled the sale. Chicago firm buying property A Chicago real estate investment firm is on a quest to acquire suburban office buildings in Houston. ML Capital Ventures has purchased two small office structures: the 71,736-square-foot building at 5500 Northwest Central Drive and the 66,338-square-foot building at 5301 Hollister. The building on Northwest Central Drive is the headquarters of BJ Services energy company. Mike Luecht, president of ML Capital, said his firm will acquire two additional Houston office buildings before the end of the year. ML Capital, which has been in business for eight months, will exceed Luecht's initial plan to buy more than $22 million worth of suburban office space in Houston in the company's start-up phase. Luecht said his firm was bullish on two types of real estate: buying warehouses in Chicago and buying office buildings in suburban Houston. Houston's economy has been adding jobs and it is a promising market that is overlooked by many investors, Luecht said. Many investors have been too slow to forget the devastating meltdown of Houston realty market in the 1980s, Luecht said. In its most recent deal, ML Ventures bought the 5500 Northwest Central building in partnership with Avgeris & Associates of Chicago. Tom Bousquet of CB Richard Ellis brokered the deal. Woodlands opens new section Several $1 million home sites go up for sale this weekend as The Woodlands opens a new section of its Carlton Woods gated community. The premium lots will be facing the new Jack Nicklaus Signature golf course. Custom lots will range in price from $150,000 to $1 million and range in size from one-fifth of an acre to two-and-three-fourths acres. The Carlton Woods community is the first gated community in The Woodlands and has been well received by upper-end home buyers, said Paul Lazzaro, vice president of marketing for The Woodlands. Thirty-two homes are under construction in Carlton Woods and all of them are priced at more than $1 million. A total of 208 lots have been sold in Carlton Woods, which opened about a year ago. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. INDIA PRESS: Enron Plans To Exit LNG Shipping JV 10/28/2001 Dow Jones International News (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW DELHI -(Dow Jones)- Enron Corp. (ENE) has decided to exit its Indian shipping joint venture, Greenfield Holding Co., the Financial Express reports, quoting the Press Trust of India news agency. Enron's affiliate, Atlantic Commercial Inc., holds a 20% stake in Greenfield. Mitsui OSK Lines Ltd. (J.OSM) holds 60%, while India's state-owned Shipping Corp. of India (P.SPG) holds the remaining 20%, the report said. "Atlantic Commercial has expressed a desire to its partners to exit...," the PTI quoted a shipping industry source as saying. Greenfield's liquefied natural gas carrier "Laxmi" would have brought gas for Enron's Indian unit, Dabhol Power Co., the Financial Express reports. Enron has a controlling 65% stake in the 2,184 megawatt Dabhol power project, located in the western Indian state of Maharashtra. Newspaper Web site: http//www.financialexpress.com -By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426; himendra.kumar@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Business/Financial Desk; Section C Enron Taps All Its Credit Lines To Buy Back $3.3 Billion of Debt By FLOYD NORRIS 10/27/2001 The New York Times Page 2, Column 5 c. 2001 New York Times Company The Enron Corporation, trying to reassure investors that it has ample liquidity, began to repurchase all its outstanding commercial paper yesterday, using $3.3 billion it borrowed from banks by depleting its lines of credit. An Enron spokesman said that when the commercial paper repurchases are completed the company will retain more than $1 billion in cash. The moves did not appear to reassure investors, as Enron's share price fell to another six-year low. Shares traded as low as $15.04 yesterday, before ending the day at $15.40, down 95 cents. The move will raise the interest expense for the company, because banks normally charge more than companies have to pay in the commercial paper market, and because its outstanding debt will rise by the additional $1 billion. Enron's debt is rated investment grade. But its bonds now trade below investment grade levels, although not so low that it appears investors fear an early default. But with the bonds trading so low, it is unlikely Enron will be able to sell more commercial paper. Enron's stock has been plunging since Oct. 17, shortly after it disclosed that its third-quarter balance sheet, which has yet to be released, will show a $1.2 billion reduction in shareholder equity as a result of complicated transactions involving partnerships formerly controlled by Andrew Fastow, who was the company's chief financial officer until he was replaced on Wednesday. The stock has lost more than half its value since the earnings announcement, and the company has disclosed that the Securities and Exchange Commission has asked questions about its accounting practices. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. COMPANIES & FINANCE INTERNATIONAL - Enron's bond prices drop to warning levels. By ROBERT CLOW, SHEILA MCNULTY and JENNY WIGGINS. 10/27/2001 Financial Times (c) 2001 Financial Times Limited . All Rights Reserved Enron, the Houston-based energy trading group, continued to pay a heavy price for its lack of financial transparency yesterday as its bond prices plummeted. Investor confidence in Enron has declined sharply since the company announced a $1.2bn reduction of shareholder equity stemming from a complex off-balance sheet structure. The Securities and Exchange Commission has also launched an informal investigation into the company's finances. Enron's five-year bonds were trading yesterday at 77 cents in the dollar with a yield of 11.13 per cent, down from 83 cents on Thursday. Bond prices at these levels normally suggest that investors expect a company to file for bankruptcy. Late on Thursday, Enron announced that it would draw on its bank lines to buy back its outstanding commercial paper after two ratings agencies put the company on negative watch. Commercial paper financing, which normally has to be rolled every 90 days, is one of the first forms of financing to disappear in a crisis. "What they want to do is assure their clients and other trading partners that they are creditworthy and continue with business," said Robin West, chairman of the Petroleum Finance Company, the industry consultants. "In a situation like this, cash is king." Enron's biggest immediate business risk is that its major trading counterparties, such as Duke Energy and Reliant Resources, start asking it for more collateral, increasing the cost of its everyday business. If Enron were downgraded to junk, the counterparties could do just that. So far, credit rating analysts say, Enron's core business is holding up well. But their actions over the past few days acknowledge that the company could still be severely damaged by the scandal. Enron has long faced criticism of its opaque financial reporting, but its most recent problems stem from the LJM private equity fund run by Andy Fastow, the company's former chief financial officer. Enron compensated its partners in this complex off-balance sheet structure by promising to give them Enron shares, if the value of private equity investments in The New Power Company, technology and other things fell below a certain level. Those investments fell $1.2bn in value from the threshold level, which should have triggered the issue of 62m shares if the deal had not been reversed. The complex deal was designed to make sure Enron did not experience the same balance sheet volatility that JP Morgan Chase and others have suffered from marking their private equity investments to market. (c) Copyright Financial Times Ltd. All rights reserved. http://www.ft.com. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. SHORTS - Enron bond prices under pressure. 10/27/2001 Financial Times (c) 2001 Financial Times Limited . All Rights Reserved Enron, the Houston-based energy trading giant, continued to pay the price for financial opacity as its stock slumped to its lowest level since 1995 and its five-year bonds traded at 77 cents in the dollar with a yield of 11.13 per cent, down from 83 cents on Thursday. Bond prices at these levels normally suggest that investors expect a company to file for bankruptcy. Page 10. (c) Copyright Financial Times Ltd. All rights reserved. http://www.ft.com. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron taps credit line; stock slides 10/27/2001 Associated Press Newswires Copyright 2001. The Associated Press. All Rights Reserved. HOUSTON (AP) - After Enron Corp. tapped into more than $3 billion in credit in an effort to boost confidence of investors and customers, stock prices dropped. Enron Corp.'s stock price hit its lowest point in more than five years Friday. Shares fell 95 cents on Friday to $15.40, a level not seen since 1995, as analysts continued to muddle through a complicated series of bookkeeping issues revealed after the company's earnings announcement earlier this month. The stock is down more than 50 percent in two weeks, and the company lost almost $14 billion in market value. Late this week the company decided to convert $3 billion in revolving credit it has through various banks into cash. The company put about $1.1 billion in the bank in an effort to reassure business partners and investors of its liquidity and is using the $2.2 billion balance to begin an orderly repurchase of a certain kind of short-term corporate IOU known as commercial paper. "Nothing spells confidence quite like cash, which is what we want investors to understand," said Enron spokesman Mark Palmer of the $1.1 billion banked this week. Palmer could neither confirm nor deny that the company is negotiating further lines of credit with banks but described such actions as "good management decisions." On Oct. 16 Enron's third-quarter earnings release drew renewed attention to an issue investors and analysts had previously been unhappy about: Then-Chief Financial Officer Andrew Fastow, with the Enron board's approval, had formed and run two investment partnerships that could have created a conflict of interest. The partnerships, LJM Cayman and LJM2 Co-Investment, did complex financing and hedging deals with Enron. Fastow had resigned from his roles in the partnerships months ago when Wall Street began to question whether he could watch out for the interests of Enron's shareholders and the investment partnership simultaneously. But last week when the company reported a $35 million loss related to ending its LJM ties as well as a $1.2 billion reduction in shareholder equity, new questions began to arise. The Securities and Exchange Commission's Division of Enforcement launched an informal inquiry into the partnerships, and earlier this week Fastow was put on a leave of absence. Reducing the company's debt exposure through commercial paper and putting it back into more traditional financial tools, like a revolving line of credit, could give great peace of mind to Enron's investors, said Anatol Feygin, an analyst with J.P. Morgan. "It helps them shore up their support behind their energy trading business, which is really the core of their operations," Feygin told the Houston Chronicle for Saturday's editions. Carol Coale, an analyst with Prudential Securities, still sees the move as somewhat confusing. "Just last week they were touting their unused lines of credit as a plus, but the fact that they tapped those now sends a strange, mixed message," she said. "Do they need the cash to keep the rating agencies off their back? Is it a gesture for customers? It first struck me as another one of these strangely timed actions on the part of management." Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Business; Financial Desk Enron Decline Continues Bloomberg News 10/27/2001 Los Angeles Times Home Edition C-2 Copyright 2001 / The Times Mirror Company HOUSTON -- Enron Corp. bonds and shares fell after the largest energy trader tapped a $3-billion credit line because it has been shut out of the leading market for low-interest, short-term loans. The company's stock has fallen 54% in the last 14 days after investors questioned its transactions with affiliates run by Enron's former chief financial officer. The shares fell 95 cents, or 5.8%, to $15.40 on the New York Stock Exchange. Investors said Chief Executive Kenneth Lay has failed to reassure them that the company's credit rating won't be cut. Enron can no longer borrow in commercial paper markets, where short-term loans carry lower rates than banks offer. "Do they have the financial flexibility they once had? No," said John Cassady, who helps manage $3 billion in bonds at Fifth Third Bancorp. "People are questioning the credibility of management." The company will use its credit line to pay off $2.2 billion in commercial paper it has outstanding, Enron spokesman Mark Palmer said. The price of Enron's 6.75% bonds, which mature in 2009, declined 11/2 points to a bid of 84 cents on the dollar and an offer of 86 cents. At that price, the bonds, which carry a rating of BBB+, yield 9.53%. Investors have grown concerned that the firm's credit rating will be cut after $1.01 billion in third-quarter losses from failed investments. Enron needs good credit to raise cash daily to keep trading partners from demanding collateral and to settle transactions. Enron's decision to tap its credit line was "a smart financial move," said Stephen Moore of Moody's Investors Service. "It took away the hassle and time-consuming nature of rolling commercial paper and insured access to capital." Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. BUSINESS Enron taps credit line; stock slides / Company says cash will boost confidence TOM FOWLER Staff 10/27/2001 Houston Chronicle 3 STAR 1 (Copyright 2001) Enron Corp.'s stock price hit its lowest point in more than five years Friday after it tapped into more than $3 billion in revolving credit in an effort to re-assure investors and customers. Shares fell 95 cents on Friday to $15.40, a level not seen since 1995, as analysts continued to muddle through a complicated series of bookkeeping issues revealed after the company's earnings announcement earlier this month. The stock is down more than 50 percent in two weeks, and the company lost almost $14 billion in market value. Late this week the company decided to convert $3 billion in revolving credit it has through various banks into cash. The company put about $1.1 billion in the bank in an effort to reassure business partners and investors of its liquidity and is using the $2.2 billion balance to begin an orderly repurchase of a certain kind of short- term corporate IOU known as commercial paper. "Nothing spells confidence quite like cash, which is what we want investors to understand," said Enron spokesman Mark Palmer of the $1.1 billion banked this week. Palmer could neither confirm nor deny that the company is negotiating further lines of credit with banks but described such actions as "good management decisions." Enron's most recent woes began Oct. 16 when its third-quarter earnings release drew renewed attention to an issue investors and analysts had previously been unhappy about: Then-Chief Financial Officer Andrew Fastow, with the Enron board's approval, had formed and run two investment partnerships that could have created a conflict of interest. The partnerships, LJM Cayman and LJM2 Co-Investment, did complex financing and hedging deals with Enron and were formed originally as a way to offset risks associated with some of the company's newer businesses such as broadband trading. Fastow had resigned from his roles in the partnerships months ago when Wall Street began to question whether he could watch out for the interests of Enron's shareholders and the investment partnership simultaneously. But last week when the company reported a $35 million loss related to ending its LJM ties as well as a $1.2 billion reduction in shareholder equity, new questions began to arise. The Securities and Exchange Commission's Division of Enforcement launched an informal inquiry into the partnerships, and earlier this week Fastow was put on a leave of absence. Now Enron will begin repurchasing its commercial paper. This is a way for companies to raise money over a short period at rates that are usually slightly better than what banks offer, and often with more flexible terms. "To some extent, redeeming the commercial paper is at the expense of the capital markets, which look at it negatively," said Anatol Feygin, an analyst with J.P. Morgan. But reducing the company's debt exposure through commercial paper and putting it back into more traditional financial tools, like a revolving line of credit, could give great peace of mind to Enron's investors, he said. "It helps them shore up their support behind their energy trading business, which is really the core of their operations," Feygin said. Carol Coale, an analyst with Prudential Securities, still sees the move as somewhat confusing. "Just last week they were touting their unused lines of credit as a plus, but the fact that they tapped those now sends a strange, mixed message," she said. "Do they need the cash to keep the rating agencies off their back? Is it a gesture for customers? It first struck me as another one of these strangely timed actions on the part of management." Jeff Dietert, an analyst at Simmons & Co., said Enron management needs to continue to make clear the issues that have investors confused and concerned. In a worst-case scenario, investor fears could create a vicious cycle that continues to drive the stock down, which would force bond rating agencies to consider downgrades of Enron. That could lead to lower credit ratings, which would force Enron's energy trading partners to limit their exposure to the company and cut back on business with it. "Thus, we see a big incentive for Enron to clarify the issues," Dietert wrote in a report Friday. "Our gut feel is that Enron can pull it off." Feygin said he also believes the company will continue to do better in revealing its financial dealings but thinks there may be more surprises in store. For example, a Wall Street Journal article Friday discussed for the first time another business entity with ties to Enron known as Chewco. It was formed in 1997 with about $400 million in financial backing to buy interests in unnamed Enron assets. Chewco was run by Michael Kopper, a managing director of Enron's Global Equity Markets Group. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. BUSINESS Enron says Microsoft breached contract Staff 10/27/2001 Houston Chronicle 3 STAR 2 (Copyright 2001) Enron Corp. filed suit against Microsoft Corp. in state district court in Houston this week, claiming the software giant breached a contract over a new high-speed Internet service. The companies entered into an agreement last June in which Enron would provide Internet bandwidth to Microsoft as it rolled out its MSN Broadband service. Enron's broadband network would link MSN customers in over two dozen states, including Texas. Qwest Communications is providing the Internet infrastructure in 14 other states for MSN. On Oct. 23, Microsoft said that Enron would have breached the contract if it didn't provide an operational bandwidth system by Oct. 25, according to Bloomberg News. In the lawsuit, Enron claims Microsoft failed to deliver the ordering and billing system it needed to deliver its end of the project's first phase. The lawsuit appears to be blocking the launch of the MSN service in all but the 14 states served by Qwest. Enron officials declined to comment. A Microsoft spokesman said the company had not reviewed the filing but was "confident that we have upheld our agreement with Enron." Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Editorial Desk; Section A Journal How to Lose a War By Frank Rich 10/27/2001 The New York Times Page 19, Column 2 c. 2001 New York Times Company Welcome back to Sept. 10. The ''America Strikes Back'' optimism that surged after Sept. 11 has now been stricken by the multitude of ways we're losing the war at home. The F.B.I. has proved more effective in waging turf battles against Rudy Giuliani than waging war on terrorism. Of the more than 900 suspects arrested, exactly zero have been criminally charged in the World Trade Center attack (though one has died of natural causes, we're told, in a New Jersey jail cell). The Bush team didn't fully recognize that a second attack on America had begun until more than a week after the first casualty. The most highly trumpeted breakthrough in the hunt for anthrax terrorists -- Tom Ridge's announcement that ''the site where the letters were mailed'' had been found in New Jersey -- proved a dead end. And now the president is posing with elementary-school children again. Given that this is the administration that was touted as being run with C.E.O. clockwork, perhaps it should be added to the growing list of Things That Have Changed Forever since Sept. 11. But let's not be so hasty. Not everything changes that fast -- least of all Washington. The White House's home-front failures are not sudden, unpredictable products of wartime confusion but direct products of an ethos that has been in place since Jan. 20. This is an administration that will let its special interests -- particularly its high-rolling campaign contributors and its noisiest theocrats of the right -- have veto power over public safety, public health and economic prudence in war, it turns out, no less than in peacetime. When anthrax struck, the administration's first impulse was not to secure as much Cipro as speedily as possible to protect Americans, but to protect the right of pharmaceutical companies to profiteer. The White House's faith in tax cuts as a panacea for all national ills has led to such absurdities as this week's House ''stimulus'' package showering $254 million on Enron, the reeling Houston energy company (now under S.E.C. investigation) that has served as a Bush campaign cash machine. Airport security, which has been enhanced by at best cosmetic tweaks since Sept. 11, is also held hostage by campaign cash: As Salon has reported, ServiceMaster, a supplier of the low-wage employees who ineptly man the gates, is another G.O.P. donor. Not that Republicans stand alone in putting fat cats first. In a display of bipartisanship, Democrats -- lobbied by Linda Hall Daschle, the Senate majority leader's wife -- joined the administration in handing the airlines a $15 billion bailout that enforces no reduction in the salaries of the industry's C.E.O.'s even as they lay off tens of thousands of their employees. To see how the religious right has exerted its own distortions on homeland security, you also have to consider an administration pattern that goes back to its creation -- and one that explains the recent trials of poor Tom Ridge. Mr. Ridge is by all accounts a capable leader -- a successful governor of a large state (Pennsylvania) who won the Bronze Star for heroism in Vietnam. A close friend of George W. Bush, he should have been in the administration from the get-go, and was widely rumored to be a candidate for various jobs, including the vice presidency. But after being pilloried by the right because he supports abortion rights, he got zilch. Instead of Mr. Ridge, the administration signed on the pro-life John Ashcroft and Tommy Thompson -- who have brought us where we are today. The farcical failures of these two cabinet secretaries are not merely those of public relations -- though Mr. Thompson often comes across as a Chamber of Commerce glad-hander who doesn't know his pants are on fire, and Mr. Ashcroft often shakes as if he's not just seen great Caesar's ghost but perhaps John Mitchell's as well. Both have a history of letting politics override public policy that dates to the start of the administration. They've seen no reason to reverse their partisan priorities even at a time when the patriotic duty of effectively fighting terror should be their No. 1 concern. Pre-Sept. 11, Mr. Thompson, in defiance of science, heartily lent his credibility to the Bush administration's stem cell ''compromise'' by going along with its overstatement of the viability and diversity of the stem cell lines it would deliver to researchers. Post-Sept. 11, he destroyed his credibility by understating the severity of the anthrax threat, also in defiance of science. Now he maintains that the $1.5 billion the administration is requesting to plug the many holes in our public health system -- almost all of it earmarked for stockpiling pharmaceuticals, not shoring up local hospitals -- is adequate for fighting bioterrorism. This, too, is in defiance of all expert estimates, including that of the one physician in the Senate, the Republican Bill Frist. It should also be on Mr. Thompson's conscience that for the first two weeks of the anthrax crisis he kept the federal government's house physician -- David Satcher, the surgeon general and a much-needed honest broker of public health -- locked away, presumably because Dr. Satcher, a Clinton appointee, became persona non grata in the Bush administration for issuing a June report on teenage sexuality that angered the religious right. Only after Mr. Ridge arrived on the scene was the surgeon general liberated from the gulag. As for Mr. Ashcroft, he has gone so far as to turn away firsthand information about domestic terrorism for political reasons. Planned Parenthood, which has been on the front lines of anthrax scares for years and has by grim necessity marshaled the medical and security expertise to combat them, has sought a meeting with the attorney general since he took office but has never been granted one. This was true not only before Sept. 11 but, says Ann Glazier, Planned Parenthood's director of security, remains true -- even though her organization, long targeted by such home-grown Talibans as the Army of God, has a decade's worth of leads on ''the convergence of international and domestic terrorism.'' Ms. Glazier found the sight of Mr. Ashcroft and other federal Keystone Kops offering a $1 million reward for anthrax terrorists a laughable indication of how little grasp they have of the enemy. ''Religious extremists don't respond to money,'' she points out. Such is the state of the F.B.I., she adds, that one agent told a clinic to hold onto a suspect letter for a couple of days ''because we have so many here we're afraid we're going to lose it'' (perhaps among the Timothy McVeigh documents). If either the attorney general or the secretary of health and human services inspired anything like the confidence that, say, Mayor Giuliani does, there wouldn't have been a need to draft Mr. Ridge. Even so, he's mainly a P.R. gimmick -- a man who should have been in the administration in the first place reduced to serving as a fig leaf for lightweights. As director of homeland security, he's allegedly charged with supervising nearly 50 government agencies -- so far with roughly a dozen staff members. When asked to define Mr. Ridge's responsibilities, Ari Fleischer said on Wednesday that it was ''a very busy coordination job,'' but so far Mr. Ridge is mainly sowing still more confusion. The one specific duty that he has claimed -- in an interview with Tom Brokaw -- was that he'd be the one ''making the phone call'' to the president to shoot down any commercial airliner turned into a flying bomb by hijackers. That presumably comes as news to Donald Rumsfeld, who made no provision for any homeland security czar in the Air Force chain of command he publicly codified days after Mr. Ridge's appointment. Since the administration tightly metes out the news from Afghanistan, we can only hope that the war there is being executed more effectively than the war here -- even as Mr. Rumsfeld and his generals now tell us that the Taliban, once expected to implode in days, are proving Viet-Cong-like in their intractability. The Wall Street Journal also reported this week that ''instead of a thankful Afghan population, popular support for the Taliban appears to be solidifying and anger with the U.S. growing.'' Maybe we're losing that battle for Afghan hearts and minds in part because the Bush State Department appointee in charge of the propaganda effort is a C.E.O. (from Madison Avenue) chosen not for her expertise in policy or politics but for her salesmanship on behalf of domestic products like Head & Shoulders shampoo. If we can't effectively fight anthrax, I guess it's reassuring to know we can always win the war on dandruff. Drawing Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. City - Enron directors cash in shares. By Simon English. 10/27/2001 The Daily Telegraph P31 (c) Telegraph Group Limited, London, 2001 LEADING executives at Enron, the troubled US energy giant, cashed in shares worth more than $100m ( #70m) this year in the run-up to a financial crunch that has left the company's credibility in ruins. Research by Thomson Financial shows that Kenneth Lay, chief executive, sold about 400,000 shares this year, netting him more than $25m. He still held 2.8m shares until July. Other executives made similar sales, a revelation likely to anger investors who have seen the shares fall from $83 at the start of the year to $45 by July. They halved again this week and fell to below $16 yesterday. Enron declined to comment on the share sales. Mr Lay said in a statement that he is seeking to "dispel uncertainty in the financial community" by drawing on lines of credit to restore faith in Enron's financial strength. Enron will pay off debts of $2.2 billion and keep another $800,000 in cash. He said: "We know we have our work cut out for us if we are to rebuild our credibility with the investment community." The company is facing an inquiry by the Securities & Exchange Commission into partnerships managed by Andrew Fastow, former chief financial officer. Mr Fastow was ousted on Wednesday night as part of the company's moves to restore confidence, though Enron insists he has done nothing wrong. Enron lost $1 billion in the third quarter on what it has called "failed investments". Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. INDIA: Lenders to meet over Enron's Dabhol on Nov 3. 10/27/2001 Reuters English News Service (C) Reuters Limited 2001. BOMBAY, Oct 27 (Reuters) - Lenders to power plant in India majority owned by Enron Corp have called a meeting next week in London to discuss ways of reviving the beleaguered project, a banking source said on Saturday. They will examine offers that two Indian companies have put forward for buying the U.S. energy giant's 65 percent stake, and those of two other U.S. firms, in Dabhol Power Company (DPC), which is building the controversial project, the source told Reuters. The meeting of lenders, who include multinational banks such as Citibank and Bank of America , will be held on November 3, the source added. At stake is not just the fate of the $2.9 billion, 2,184 MW project, which is India's largest foreign direct investment, but also the over $600 million investment of Enron, General Electric Co and Bechtel. All three companies are founders of DPC, which in 1995 got permission from India's Maharashtra state government to set up the plant on its coast. The plant's first phase of 740 MW was completed in 1999, but work on the second phase of 1,444 MW, which is 97 percent complete, was abruptly stopped in June this year following a blazing row with cash-strapped state utility MSEB. MSEB, which agreed in 1995 to take the plant's entire output, said it can no longer do so because Dabhol's power is too costly. Dabhol, in turn, accused MSEB of defaulting on its monthly payments and served a preliminary notice to terminate the power purchase contract. Under this notice, both companies are given six months time to settle the matter through negotiations. If talks fail, Dabhol has the right to issue a final termination notice and take the matter to arbitration in London. That six month period expires on November 19. Houston-based Enron, which owns 65 percent of Dabhol, further announced that it intends to exit the project and offered to sell its equity to the Indian government. TIME RUNNING OUT The Business Standard newspaper reported that next week's meeting would also discuss a request by Dabhol to finally terminate the contract after November 19. "It is one of the items on the agenda," the paper quoted a senior banker as saying. The paper said once Dabhol serves the final notice, the matter proceeds to arbitration, which would not help India. "The widespread view among the government and lenders is that in such a situation DPC will win hands down," the paper added. A Dabhol spokesman could not be contacted immediately. The source said the meeting would review the progress made in resolving the dispute so far. The Indian government has not responded to Enron's offer to buy its equity, but two Indian companies, BSES Ltd and Tata Power Ltd , have shown interest. They have agreed to take over the project if the cost is reduced, and if the founders agree to sell their stake at a discount. Local business daily, the Economic Times reported on Friday that Tata Power and BSES are willing to pay the founders $450-$600 million for the 85 percent stake held by Enron, GE and Bechtel. Enron has rejected the offer and is not ready to settle for anything less than $1 billion, the paper added. Officials of Tata Power and BSES were not immediately available for comment. ($1=48.00 Indian rupees). Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Business Enron sues Microsoft for breach of contract ; Move could block high-speed service The Associated Press,Bloomberg News 10/27/2001 The Seattle Times Fourth E4 (Copyright 2001) HOUSTON -- Enron has sued Microsoft, alleging it breached a contract for broadband services, in a move that could temporarily block the largest software company's MSN high-speed Internet service in some U.S. regions. Microsoft said the dispute temporarily blocks the company from providing the high-speed service in areas where Enron provides broadband access, leaving MSN fully operational only in the 14 states -- including Washington -- where Qwest Communications International operates, said Bob Visse, director of marketing for MSN. Enron's lawsuit was filed Thursday, the same day Microsoft had planned to offer fast Internet access in 45 cities to give it access to potential customers in 29 million homes. Microsoft, the No. 2 U.S. Internet provider, is making a push to win customers from AOL Time Warner. "We are trying to resolve the issues with Enron, as quickly as possible and at the same time we are evaluating other providers," Visse said. Enron spokeswoman Karen Denne declined to comment on the lawsuit, citing company policy on pending litigation. Enron, based in Houston, is the largest energy trader. Enron in June signed an agreement with Microsoft to provide bandwidth for MSN Internet service. Under the agreement, Enron isn't required to deliver operational broadband services if Microsoft hasn't first provided a billing and ordering system, Dow Jones news wire reported. Enron claims in its lawsuit that Microsoft failed to deliver the ordering and billing system required in the initial phase of the deal, Dow reported. Alternative browser-users denied Microsoft entry NEW YORK -- Microsoft's premier Web portal, MSN.com, denied entry to millions of people who use alternative browser software such as Opera and told them to get Microsoft's products instead. The decision led to complaints from the small but loyal Opera community that Microsoft was abusing its status as the Internet's browser leader. Microsoft later backed off and said yesterday that it would support the other browsers after all. Browser products affected by the shutout, which was triggered by a face-lift of the MSN.com Web site, included Opera, Mozilla and Amaya, said Kevin Reichard, editorial manager for Internet.com's BrowserWatch site. Mike Pettit, president of ProComp, an anti-Microsoft group, urged state and federal investigators to look into the matter as part of its lawsuit accusing Microsoft of anti-competitive practices. -- The Associated Press MicrosoftSF to shut down; Sony will run retail store SAN FRANCISCO -- Sony will take over a retail store it manages with Microsoft next month, when the biggest software maker's Xbox goes up against Sony's PlayStation 2 in a contest for control of the $20 billion video-game market, a Sony spokeswoman said. The two companies agreed to shut down MicrosoftSF, a retail outlet in Sony's San Francisco Metreon entertainment complex. It will be replaced with a Digital Solutions electronics store run by Sony on Thursday, Metreon spokeswoman Kirsten Maynard said. In April 1998, the companies said they would open the store that displays and sells Microsoft products alongside Sony electronics that run the software. In March 2000, Microsoft announced the Xbox, a game console with an advanced-graphics chip that goes on sale Nov. 15. "A lot has changed with both companies," Maynard said. "It sort of became not-a-fit anymore." Sony Metreon won't carry the Xbox or Game Cube, a new video console from Nintendo that goes on sale Nov. 19, she said. Officials at Microsoft couldn't be reached for comment on the shutdown. -- Bloomberg News Copyright [copyright] Seattle Times Company, All Rights Reserved. You must get permission before you reproduce any part of this material. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Start Date: 4/12/01; HourAhead hour: 2; No ancillary schedules awarded. Variances detected. Variances detected in Energy Import/Export schedule. Variances detected in Load schedule. LOG MESSAGES: PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001041202.txt ---- Energy Import/Export Schedule ---- $$$ Variance found in table tblINTCHG_IMPEXP. Details: (Hour: 2 / Preferred: 47.00 / Final: 46.99) TRANS_TYPE: FINAL SC_ID: ECTstSW MKT_TYPE: 2 TRANS_DATE: 4/12/01 TIE_POINT: MEAD_2_WALC INTERCHG_ID: EPMI_CISO_8000 ENGY_TYPE: WHEEL $$$ Variance found in table tblINTCHG_IMPEXP. Details: (Hour: 2 / Preferred: 12.00 / Final: 11.98) TRANS_TYPE: FINAL SC_ID: ECTRT MKT_TYPE: 2 TRANS_DATE: 4/12/01 TIE_POINT: PVERDE_5_DEVERS INTERCHG_ID: EPMI_CISO_DODGERS ENGY_TYPE: WHEEL ---- Load Schedule ---- $$$ Variance found in table tblLoads. Details: (Hour: 2 / Preferred: 42.88 / Final: 42.85) TRANS_TYPE: FINAL LOAD_ID: PGE3 MKT_TYPE: 2 TRANS_DATE: 4/12/01 SC_ID: EPMI

Linda - I haven't heard of these guys. Do you know them? ---------------------- Forwarded by Steven J Kean/NA/Enron on 05/15/2001 06:47 PM --------------------------- Enron Capital & Trade Resources Corp. From: Sherri Sera 05/15/2001 04:19 PM To: Steven J Kean/NA/Enron@Enron, Mark Palmer/Corp/Enron@ENRON cc: Subject: HELP!!! Steve and Mark, a good friend of mine works for Mr. Grimes at Stewart & Stevenson. They have been offered this opportunity by the China Assoc. for Social and Economic Development for a commitment of $74,000. Since Mr. Lay has been a past recipient (according to their attached letter), they are wondering if this is legit. Can you provide any insight? Thanks for your help. SRS ---------------------- Forwarded by Sherri Sera/Corp/Enron on 05/15/2001 04:12 PM --------------------------- Doyleene Harris <d.harris@ssss.com> on 05/15/2001 03:32:30 PM To: "'sherri.sera@enron.com'" <sherri.sera@enron.com> cc: Subject: HELP!!! Hi Sherri, We would be most appreciative if you can help us out on this one! Our President and CEO, Mike Grimes, received the letter (copy attached/please open) from the China Association for Social and Economic Development.? In this letter, Mr. Wu mentions that Dr. Kenneth Lay was a past recipient. Well, you just called - so I won't complete this email! Love you - Doyleene -----Original Message----- From: Judy Johnson Sent: Tuesday, May 15, 2001 2:58 PM To: Doyleene Harris Subject: ? <<~MAP0000.jpg>> - ~MAP0000.jpg

TASK ASSIGNMENT Status: completed Task Priority: Task Due On: Task Start Date:

The material re the hedge proposal has gone to Milnthorp and will go from Rob to Lavorato presumably today. Our expectation is that there will be some discussion about the term sheet, prices, and letter early next week. I would suggest that we get the Lay letters out early next week, without the reference to the hedge, because I suspect that the resolution of the hedging issue by Lavorato , at al. etc. (particularly with respect to pricing) will take another week. I would rather not have that process further delay sending Lay's letters to Harris and Wilson. Richard Shapiro@ENRON 07/06/2001 11:32 AM To: Aleck Dadson/TOR/ECT@ECT cc: Subject: Re: Draft of Lay letters to Harris and Wilson Are you going to talk to Lavorato re: letter to Wilson ... before we proceed any further? From: Aleck Dadson@ECT on 07/06/2001 10:44 AM EDT To: Richard Shapiro/NA/Enron@Enron cc: Subject: Draft of Lay letters to Harris and Wilson Rick, I attach drafts of letters to Harris and Wilson. The revised letter to Harris refers to the letter that Lavorato may send re the hedge proposal. That added language will obviously have to come out if Lavo decides not to send his letter or if, by the time Lay's letter is to go, it is still uncertain whther Lavo will make his proposal. Address for copy of Wilson's letter to Purchase is Bryne Purchase, Deputy Minister, Ministry of Energy Science &Technology, Hearst Block, 4th Floor, 900 Bay Street, Toronto, Ontario, M7A 2E1; Address for copy of Wilson's letter to Judy Hubert is Judy Hubert, Assistant Deputy Minister, Energy Policy, Ministry of Energy Science &Technology, 3rd Floor, 880 Bay Street, Toronto, Ontario M7A 2C1.

FYI - see message below re: our potential trip to Mexico City on 5/21. We're pushing to get the meetings back to back but you know how politicians can be. Will keep you posted. If the meetings can NOT be back to back would you want to consider taking one of the smaller company jets? Your call, I can work either way. ---------------------- Forwarded by Randal Maffett/HOU/ECT on 05/11/2001 05:16 PM --------------------------- <Eric_Bradley@mckinsey.com> on 05/11/2001 02:24:08 PM To: <Randal.Maffett@enron.com> cc: Thomas_Seitz@mckinsey.com, Beth.A.Ryan@enron.com Subject: Update on PMI/Ministry of Finance Meeting Randy: I just spoke with Pedro regarding the Ministry of Finance Meeting in Mexico City. He is hopeful (but not certain) that we can schedule a meeting on the back end of the PMI session. I suggest you and Mike continue to keep the entire day open at this point. If it turns out that the Ministry of Finance meeting will be later in the day, Pedro can shuttle you and Mike to our Mexico City office where you may access phones, desks, etc. during the interim. You will most likely meet with the Director General of Credit who is responsible for managing fx, and financial credit with the international markets. He's in a very influential position within the Finance Ministry. Let me know if you need any additional info at this point. Otherwise, we'll review the Ministry of Finance document and Maya pricing concepts on Tuesday, 15th, at 9 am here in our office. Regards, Eric +-------------------------------------------------------------+ | This message may contain confidential and/or privileged | | information. If you are not the addressee or authorized to | | receive this for the addressee, you must not use, copy, | | disclose or take any action based on this message or any | | information herein. If you have received this message in | | error, please advise the sender immediately by reply e-mail | | and delete this message. Thank you for your cooperation. | +-------------------------------------------------------------+

Richard, Guido Tawil of M&M Bomchil called about the invoice referenced below. Apparently it has not been paid. Any news on its status? Thanks. Regards, Andrea ---------------------- Forwarded by Andrea Calo/SA/Enron on 12/18/2001 01:39 PM --------------------------- Andrea Calo 10/22/2001 10:15 AM To: Richard B Sanders/HOU/ECT cc: Subject: Invoice Richard, As per Michael's request, in order to preserve the confidential nature of the matter, I am sending you Guido Tawil's invoice for his work in reference to the recent Anti-Corruption Office request for information. Best Regards, Andrea

Hi Chris, Welcome back! The word is that we are trying to get a commitment from Dominion as to when they are going to provide the information we requested and we are asking them for a second extension of the hearing date. We have called their lawyer at least once a day for the last few days but have been unable to reach him. I will keep you both posted and talk with you this afternoon. Too bad you missed the waffles. -----Original Message----- From: Chris.Germany@enron.com [mailto:Chris.Germany@enron.com] Sent: Monday, April 08, 2002 9:43 AM To: Proctor, Shemin V.; Ruth.Concannon@enron.com Subject: RE: EES's Small Producer Gas Ruth, remember that moorning you "allegedly" called me from Shemin's office last week? You said you were meeting with Shemin and wouldn't be in for awhile. I told you to ask Shemin "What the hell is going on with Dominion? What's the latest?". Well that's what this is. Never got me an answer on that now did you? I'm betting you and Shemin were at the Waffle House smokin' cig's, drinking coffee, and eating hash browns that were "covered" with cheese and filled with "chunks" of ham Shemin, how about an update on Dominion? What's the word? -----Original Message----- From: "Proctor, Shemin V." <sproctor@akllp.com>@ENRON Sent: Friday, April 05, 2002 11:47 AM To: Concannon, Ruth; mark.ellenberg@cwt.com; Mann, Kay; Vanderhorst, Barry; Draper, David Cc: Sharp, Vicki; McMichael Jr., Ed; Germany, Chris; Garza, Maria Subject: Re: EES's Small Producer Gas Ruth, Have you spoken with Chris? He has been leading the Dominion team from a commercial perspective and has been coordinating with EES. Shemin Shemin V. Proctor ********************************************************************** This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. **********************************************************************

Dear Members: Can you please let me know if you are attending. I need this information for the hotel. Thank you, Francine Cox - OSS USERS GROUP -12-01.pdf

Pls send Mo Movahed at Softknot the NDA that was drafted. Thanks mmovahed@softknot.com pf

My objective is to continue working on this transaction today so that we can resolve all issues and finalzie documentation on Monday for funding on Tuesday. I believe we are very close on documentation so believe we can achieve this timetable. Greg Johnston 09/22/2000 11:47 AM To: Clement Abrams/Corp/Enron@ENRON, Sara Shackleton/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT cc: Cris Sherman/HOU/ECT@ECT, Brian Kerrigan/HOU/ECT@ECT Subject: Alberta PPA Prepay Transaction Clement, Sara and Tana, could each of you please e-mail to Cris Sherman as soon as possible the most recent versions of the documents each of you were preparing for the prepay transaction with RBC. I think that amendments were made yesterday to the documents to account for the bank's comments but those updated drafts were not distributed once we realized the deal wasn't going to happen for today. If you could also please copy Brian and myself with that e-mail so each of us have the most recent versions for when we revisit the structure next week. Thanks Greg

I would ask for a few things: First - I would like to see the relationship between the 3 factors they have chosen and the costs of the support system, i.e. a justification of the 3 factors. Second - I would like to know why we have chosen to change the methodology agreed to in the beginning. For those of you who are users, this methodology will drive to charge you with reducing your number of users, and to reduce the factors. This is why we didn't go this way to begin with. Third - I would like to see the detail for the last 12 months on the 3 factors chosen by company. -----Original Message----- From: Saunders, James Sent: Friday, August 17, 2001 6:15 PM To: Lewis, Greg; Geaccone, Tracy; Hayslett, Rod; Barnes, Caroline Cc: Sullivan, Michael; Schlaudraff, Christine Subject: RE: ISC 2002 Allocation Methodology as part of the '95 phase III settlement no increase in allocations from "corp" was permitted. enron should absorb 536 usage. -----Original Message----- From: Lewis, Greg Sent: Friday, August 17, 2001 5:01 PM To: Geaccone, Tracy; Hayslett, Rod; Saunders, James; Barnes, Caroline Cc: Sullivan, Michael; Schlaudraff, Christine Subject: RE: ISC 2002 Allocation Methodology I will follow up on this with the ISC....that is, having the costs billed direct to the pipleline companies within ETS as opposed to billing to a single ETS company and then having to turn around and redistribute. There is an agreed percent in practice for 2001. For 2002 do we need to stay with that approach? If the ISC can provide us with the details of usage percentages then this approach may be more supportable. Chris....can the ISC give us the detailed usage statistics to support the allocation? Also, is there a time before 9/14 that you can start giving us a sense of what our "number" and percent share of the cost would be under this methodology? Thanks.... Jim....concerning company 536....if we bill the individual companies for their usage, which company would bear the cost of the company 536 use? Thanks, Greg -----Original Message----- From: Geaccone, Tracy Sent: Friday, August 17, 2001 4:17 PM To: Lewis, Greg; Hayslett, Rod; Saunders, James; Barnes, Caroline Cc: Sullivan, Michael Subject: RE: ISC 2002 Allocation Methodology Is this to allocate costs within ETS? I thought there was an already agreed upon % to get the costs from Corp to the ETS level. -----Original Message----- From: Lewis, Greg Sent: Friday, August 17, 2001 3:35 PM To: Hayslett, Rod; Saunders, James; Geaccone, Tracy; Barnes, Caroline Cc: Sullivan, Michael Subject: ISC 2002 Allocation Methodology This week Mike and I met with the ISC to review the methodology they intend to use for allocating 2002 SAP support costs. ETS' allocation will be based on our usage of their resources as measured by a weighted average of 3 factors: Number of users - 28% weight Number of documents we have on the system (a measure of the number of transactions we process) - 54% weight Amount of master data we have on the system (as determined by counts of objects such as cost centers, projects, orders, etc.) - 18% weight Details on the amount we will be asked to plan for (and allocated to in 2002) will be available by 9/14. If you have any questions or concerns about this approach please call me. Greg Lewis, X35967

Mike: What are your thoughts on this? ----- Forwarded by Jeff Dasovich/NA/Enron on 09/27/2000 11:37 AM ----- Marianne Castano@EES 09/27/2000 09:01 AM To: Jeff Dasovich/NA/Enron@Enron cc: Subject: Re: SDG&E Credits ---------------------- Forwarded by Marianne Castano/HOU/EES on 09/27/2000 09:02 AM --------------------------- Enron Energy Services From: Marianne Castano 09/27/2000 09:00 AM To: Mona L Petrochko/SFO/EES@EES cc: Diann Huddleson/HOU/EES@EES Subject: Re: SDG&E Credits Jeff & Mona: We have confirmed that our contracts are silent on the issue. Question remains as to what the language of the original decision was...Can you suggest someone who can dig into this for us? Should I just phone Mike Day? Let me know...MLC From: Jeff Dasovich on 09/22/2000 10:22 AM To: Mona L Petrochko/SFO/EES@EES, Susan J Mara/SFO/EES@EES, Richard Shapiro/HOU/EES@EES, Marianne Castano/HOU/EES@EES, Harry Kingerski/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT cc: Subject: SDG&E Credits Likely needs to be a legal analysis based on the language of the original decision etablishing the credits. But seems to me that we have a deal with our customers to receive service according to price, terms and conditions stated in our contracts with those customers, and that the contract language would govern how the credit is treated. If the contracts don't speak to the issue of credits, seems that our contract agrees to provide rez customers with service for a a certain price, and as such, it would be up to us whether we flow it through. But a lawyer, I am not. Are our contracts silent on the issue? Best, Jeff ----- Forwarded by Jeff Dasovich/SFO/EES on 09/22/2000 10:16 AM ----- Marianne Castano 09/22/2000 08:41 AM To: Mona L Petrochko/SFO/EES@EES, Jeff Dasovich/SFO/EES@EES cc: Subject: SDG&E Credits Can either of you help me out with this question? MLC ---------------------- Forwarded by Marianne Castano/HOU/EES on 09/22/2000 08:41 AM --------------------------- Enron Energy Services From: Karen A Cordova 09/21/2000 05:00 PM Phone No: 713.853.3150 713.646.8860 - FAX No. To: Marianne Castano/HOU/EES@EES cc: Subject: SDG&E Credits Diane Huddelston called Lori Pinder about an issue; Here it is: Due to the merger btw SDG&G & Sempra Energy (about a year or less ago), a savings was realized. The CPUC said these savings must be passed on to customers 1 time per year, in September. They are called Annual Merger Credits. Pursuant to all commercial contracts, Enron is entitled to keep the savings (per Diane). What about the residential customer accounts? Enron keeps the savings or should the residential customer receive? Who could handle this issue for Diane? Thanks, KC

Schedule Recap: THURS.: sleep in DC - MOM to get reservations!!! FRIDAY: early start from DC to Four and Twenty Blackbirds. http://www.washingtonian.com/dining/Profiles/FourTwe.html Golf at 3pm http://www.golflink.com/columns/alannichols/keswickhall.shtml Dinner 8pm at Oxo http://food4.epicurious.com/HyperNews/get/archive_foodie1401-1500/1478.html http://www.cavalierdaily.com/.Archives/1999/April/30/lfreview.asp SATURDAY: 11:45 Lunch Boar's Head http://www.boarsheadinn.com/ 2:00 massages 3:00 manicure/pedicure - mom 4-6pm tacky law school buffet catered by Big Jim's 5-7 completely elegant cocktail party with original first year section and all known professors at Ing and Amanda's house. 8pm dinner reservations at Keswick Hall http://www.keswick.com/ SUNDAY: 9:30 whole school lawn graduation ceremony 1:30 Law school graduation ceremony 6:00 LLM cocktail party at Farmington country club (if we want to go) 6:30 dinner reservations at Keswick Hall http://www.keswick.com/ MONDAY: Drive back to DC with Bill in the am. On Fri, 27 Apr 2001 17:34:49 -0400 Linda Hayman <LHAYMAN@skadden.com> wrote: > does not include breakfast, but it does include afternoon tea. > > Dont forget Bill with all of these appointments. Also, lets do something cool Friday after dinner. > > Linda Hayman > Skadden, Arps,Slate, Meagher & Flom, LLP > 4 Times Square, 42nd Floor > New York, NY 10036 > T: 212-735-2637 > F: 917-777-2637 > > > ------------------------------------------------------ > This e-mail, and any attachments thereto, is intended only for use by the addressee(s) named herein and may contain legally privileged and/or confidential information. If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this e-mail, and any attachments thereto, is strictly prohibited. If you have received this e-mail in error, please immediately notify me at (212) 735-3000 and permanently delete the original and any copy of any e-mail and any printout thereof. > > Further information about the firm, a list of the Partners and their professional qualifications will be provided upon request.

Thanks to the ENA Portland office and the West Origination San Francisco office we raised $10,812 (w/Enron match) for disaster relief efforts. The funds will benefit the following charities: v American Red Cross Disaster Relief v Cantor-Fitzgerald Relief Fund v NY Police and Firefighters Widows and Children's Fund v United Way Sept. 11th Fund I will be mailing the checks tomorrow, this is your last chance to participate. Thanks again for your support! Mollie

Today we released additional information about our related party and off-balance sheet transactions. We have made this information available both on our website and in a Form 8-K filing with the Securities and Exchange Commission (SEC). The information provides further details about: -- the $1.2 billion charge to shareholders' equity announced in the third quarter and the transactions related to that charge; -- a restatement of prior years' financial statements to reflect this reduction in shareholders' equity, the consolidation of three entities and prior year proposed audit adjustments and reclassifications; -- the Special Committee appointed by the Enron Board of Directors to review transactions between Enron and related parties; -- the LJM limited partnerships, including a discussion of transactions between Enron and LJM entities; and -- transactions between Enron and other Enron employees. This information addresses a number of concerns that have been raised by our shareholders and the SEC. As our Board's new Special Committee continues its review of various matters, we will continue to cooperate fully with the SEC in its investigation, and we will continue to respond to investor requests so that they can evaluate, appreciate and appropriately value the strength of our core businesses. Restatement of Earnings Based on information that we have recently obtained, Enron and its auditors determined that certain off-balance sheet entities should have been included in Enron's consolidated financial statements pursuant to generally accepted accounting principles. As a result, Enron will restate its financial statements from 1997 to 2000 and for the first and second quarters of 2001. These restatements have no material effect on Enron's current financial position. Here are some details included in the filing: Net income for each period will be impacted by the retroactive consolidation of Joint Energy Development Investments (JEDI) and Chewco beginning in November 1997, the consolidation of an LJM1 subsidiary for 1999 and 2000 and prior year proposed audit adjustments. Enron's current assessment indicates that the restatement will include: -- a reduction of approximately $96 million in 1997 -- a reduction of approximately $113 million in 1998 -- a reduction of approximately $250 million in 1999 -- a reduction of approximately $132 million in 2000 -- an increase of approximately $17 million for the first quarter of 2001 -- an increase of approximately $5 million for the second quarter of 2001 -- a reduction of $17 million for the third quarter of 2001. The consolidation of JEDI and Chewco also will increase Enron's debt by approximately $711 million in 1997, $561 million in 1998, $685 million in 1999 and $628 million in 2000. The restatement will have no material impact on Enron's reported earnings for the nine-month period ending September 2001. You can obtain more detailed information on the items described above by accessing the Form 8-K filing at <http://www.enron.com/corp/sec/>. We will continue to review our strategic, operational and financial position, and we will continue to keep you updated on any developments.

It's getting harder and harder to root, root, root for the home team. Heather Robertson <hrobertson@hbk.com> on 09/25/2000 06:09:01 PM To: John.Arnold@enron.com cc: Subject: RE: Young John? I KNOW!!! I was even in San Francisco ...!! How humiliating... Apparently, you were not cheering hard enough. -----Original Message----- From: John.Arnold@enron.com [mailto:John.Arnold@enron.com] Sent: Monday, September 25, 2000 5:23 PM To: hrobertson@hbk.com Subject: RE: Young John? What'd you do to my Cowboys? Heather Robertson <hrobertson@hbk.com> on 09/01/2000 09:02:04 AM To: John.Arnold@enron.com cc: Subject: RE: Young John? Just read it...great article! Have fun in Costa Rica... I hear it is amazing. -----Original Message----- From: John.Arnold@enron.com [mailto:John.Arnold@enron.com] Sent: Thursday, August 31, 2000 4:10 PM To: hrobertson@hbk.com Subject: RE: Young John? The Fortune article is about grassroots change within a company. It is written about the lady who started EOL, but I'm in it a little. Chief of natural gas derivatives...I'm not really sure what that means. I run the Nymex book now but not the floor..just the derivatives desk of five people. I'm actually going to Costa Rica tomorrow morn thru Monday. Never been but heard it's beautiful. Next time you're in we'll go out. J Heather Robertson <hrobertson@hbk.com> on 08/31/2000 01:20:05 PM To: John.Arnold@enron.com cc: Subject: RE: Young John? What do you mean? I'm serious! So what Fortune article? I only saw you in Time... Pretty freaky to see someone you know like that! What the heck is a "chief" of natural gas derivatives?! Skilling's old job? Check out the Amazon (AMZN) chat on Yahoo... I was joking that all of my friends were in the press lately (i.e. YOU, as well as all my HBS buddies), so the guys on the trading floor thought this would be funny. The best part is that someone thought they were serious and started in on the conversation!! I do investor relations for a hedge fund in Dallas, so that's why they are talking about my IR/selling skills... but it's not exactly your typical corporate IR position considering our investor base. I'm going to be in your neck of the woods tomorrow. I'm visiting friends in Houston on Friday & Saturday, then going to my sister's house in Bay City on Sat. night. No firm plans, just getting out of Dallas. Are you going to be around? I thought about you the night after I saw the article because I was in Snuffers, drinking a strawberry daiquiri... =) do you remember why?? I think about that every time I go there.... Take care and make money! -----Original Message----- From: John.Arnold@enron.com [mailto:John.Arnold@enron.com] Sent: Thursday, August 31, 2000 11:48 AM To: hrobertson@hbk.com Subject: Re: Young John? Glad to see you're having so much fun with this. I've been here 5.5 years with nothing and then in one week I'm in Fortune and Time. Pretty funny. Things are going well here . The big E just chugging along, bringing the stock price with it. Wish I could tell you everything new in my life, but I think I just did. Your long lost buddy, John Heather Robertson <hrobertson@hbk.com> on 08/31/2000 10:10:09 AM To: john.arnold@enron.com cc: Subject: Young John? Is this "the 26-year-old chief of natural-gas derivatives"? If so, you should write me back after you complete your "nine hours and $1 billion in trades" today!! Does this mean I have to start calling you "Mr. John"?! It was great to see you're doing so well.... Your long lost buddy, Heather Heather Lockhart Robertson HBK Investments LP Personal: 214.758.6161 Phone 214.758.1261 Fax Investor Relations: 214.758.6108 Phone 214.758.1208 Fax

Neither have us have spoken to GE. I think Sheila spoke to Lee, but I don't know the substance of the conversation. We asked his permission on the Intergen deal, I believe. I told Jake last night that there are arguments which can be made on both sides as to whether GE needed too consent to having the contract distributed to a potential partner. He said he wanted to talk to you about it. My suggestion would be that someone on the commercial side discuss the general status, and ask if it is ok to send out a redacted contract. That is the most conservative approach. Kay Dale Rasmussen@ECT 03/07/2001 12:33 PM To: Carlos Sole/NA/Enron@ENRON cc: Kay Mann/Corp/Enron@Enron Subject: Re: Revised Documents Carlos: Jake is hoping to get a copy of the turbine contract out to Delta this afternoon. Do you know whether anyone has approached GE for consent to disclose the contracts to potential purchasers? It sounded yesterday as though the form of contract may be changing, anyway. Either way, GE's consent is probably required. Do you agree? Would you or Kay mind coordinating with Jake how and when the document can go out? From: Carlos Sole@ENRON on 03/07/2001 10:06 AM CST To: Jake Thomas/HOU/ECT@ECT, Stephen Thome/HOU/ECT@ECT, Dale Rasmussen/HOU/ECT@ECT, ccampbell@kslaw.com, jkeffer@kslaw.com cc: Subject: Revised Documents Please forward the attached documents below and not the prior ones in the other email. There was one reference each to Panda in the Delta documents. Delta Panda Sunlaw

http://www.baltimoresun.com/content/cover/story?section=cover&pagename=story&s toryid=1150540202173 Karen Arnold <klarnold@flash.net> on 01/08/2001 09:14:44 PM To: john.arnold@enron.com, Matthew.Arnold@enron.com cc: Subject: Remember, this is the year for family vacation. So, any ideas?????

The settle price is noted at 4.234

Can you access this website? (article re: Broadband) http://home.enron.com/pubs/enronbiz/2000/vol5/1_5_0.html

As the Global Technology group moves forward in accomplishing its goals of developing worldwide technology standards, eCommerce opportunities and global platforms, we continue to make changes in the organization to enhance communication and maximize our intellectual capital. With that in mind, we are pleased to announce the following organization changes within Global Technology: Jay Fitzgerald, MD eCommerce, will be moving to Enron North America and will have responsibility for all of ENA
,s eCommerce initiatives. Although this will be a big loss for Global Technology, Jay will provide immediate benefits to the explosion of eBusiness opportunities that are developing in the ENA lines of business. Jay will report to Greg Whalley. Steve Horn, VP Investments, will be moving into Global Technology to head the eCommerce Ventures group responsible for eCommerce merchant investing. The scope of this new group will include investing in the following areas: Strategic sourcing/procurement/demand aggregation/asset disposition businesses eCommerce enabling technologies Global eCommerce opportunities outside of EBS/ENA/EE. EBS, EE and ENA will be evaluating and making equity investments within their specific business units. Examining Houston technology business opportunities not directly related to Enron
,s business. Steve will report directly to me in his new role. Jenny Rub has accepted the newly formed position of VP of Infrastructure for Enron Corp. Her responsibilities include managing all IT infrastructure support activities. Jenny will report to Philippe Bibi. Jenny is currently VP and CIO for the Gas Pipeline Group and she will be transitioning out of that role as she completes several important initiatives. Beth Perlman has recently relocated to the United States as VP of ENA
,s application development, RAC and Treasury applications. She was previously heading up application development for Enron Europe. She will report to Philippe Bibi. Dan Bruce, VP, is responsible for IT support in the international regions, EE&CC and Asset Operations. He will report to Philippe Bibi. John Pavetto, VP, will be responsible for all eCommerce initiatives outside of EnronOnline. John will report to Philippe Bibi. Jay Webb, Sr. Director, will continue to lead the Enron Online Team reporting to Philippe Bibi. Arshak Sarkissian, Sr. Director, has accepted a position with EBS
,s strategic development group and will be transitioning his responsibilities over the course of the next few weeks. He will report to Scott Yeager. Please join me in congratulating everyone on their new positions.

I do now!! I'm a changed man, after this is all over, Jerry and I are going to buy motorcycles and take a bike trip. He has started shopping. Wanna buy 93 acres in East Texas??

ENRON OFFERS TO FINANCE AZURIX BUYOUT AT $7/SHR 10/27/0 13:44 (New York) (The following is a reformatted version of a press release issued by Azurix Corp.) AZURIX CORP. RECEIVES PROPOSAL FROM ENRON CORP. TO FINANCE AZURIX PUBLIC SHARE BUY-OUT HOUSTON - Azurix Corp. announced today that its Board of Directors has received a proposal from Enron Corp. to provide funding to take Azurix private at a buyout price of $7.00 per share. The specific structure of the proposal has yet to be determined. Azurix is filing today a copy of the proposal with the U.S. Securities and Exchange Commission as an exhibit to a Form 8-K. Azurix Corp. (www.azurix.com) is a global water company that owns, operates and manages water and wastewater assets, provides water and wastewater related services, and develops and manages water resources. Azurix offers e-business solutions in the areas of procurement, engineering and design, water supply and storage and billing and collections. Azurix is listed on the Russell 2000 U.S. equity index. Its stock is traded on the NYSE under the ticker symbol, "AZX." (bh) PN -0- (CRL) Oct/27/2000 17:44 GM Enron Offers to Lend $275 Mln to Take Azurix Unit Private 10/27/0 13:38 (New York) Enron Offers to Lend $275 Mln to Take Azurix Unit Private Houston, Oct. 27 (Bloomberg) -- Enron Corp., the world's largest energy trader, offered to provide $275 million in financing to take Azurix Corp., its struggling water affiliate, private. The proposal would let Azurix buy back shares from private investors at $7 apiece, a 96 percent premium to yesterday's closing prices for the Houston-based company, Enron said. Azurix would buy back one-third of company. Enron already owns a third of the water company it created two years ago, and controls another third through an investor group called Atlantic Water Trust. Azurix shares have fallen more than 80 percent since Enron took the company public last year as part of a plan to exploit an expected boom in water treatment projects worldwide. Rebecca Mark, once considered in line for the chief executive's post at Enron, resigned in August as Azurix's chairman and chief executive because of the company's poor performance. Shares of Azurix halted trading at $3.94 on the New York Stock Exchange today. They've fallen from a high of $23.88 in July 1999. The company now has a market capitalization of $462 million. Shares of Houston-based Enron rose 88 cents to $77.38 in early afternoon trading. --Margot Habiby in Dallas (214) 740-0873, or mhabiby@bloomberg.net, through the Princeton newsroom (609) 279- 4000/alp Story illustration: To see the breakdown of Enron's annual sales, see {ENE US <Equity> DES6 <GO>}.

There has been a change in plans, the dinner is now going to be held at Pastor Beth's. A list of who is coming, what they are preparing and directions to Pastor Beth's house are attached. Laura, is Steve getting the recipe from you or Pastor Beth? Pastor Beth, I've got you coordinating with Matthias & Karen. I've faxed the recipes to Karl & Ulf. July Weller is the only one I need to assign a recipe. I'm hoping she'll do one of the Gazpacho recipes since it's a little more complicated. Everyone else I having doing double recipes. I'll keep you posted...

Kim - Here are the credit requirements for additional HESCO deals, per your earlier call: 1. 300/day @ SOCAL border Price: $3.35 Dec '01 - May '02 Collateral Requirement: $100,000 2. 1900/day @ SOCAL border Price: $3.32 Oct '01 - Sept '02 Collateral Requirement: $900,000 3. 500/day @ SOCAL border Price: $3.24 Oct '01 - Mar '02 Collateral Requirement: $165,000 4. 750/day @ PG&E Citygate Price: $3.78 Aug '02 - Jul '03 Collateral Requirement: $375,000 5. 1000/day @ PG&E Citygate Price: $3.68 Jan '02 - Dec '02 Collateral Requirement: $500,000 Just FYI, I priced these collateral amounts to include the receivable exposure that we would wear as well as potential MTM exposure, priced at $0.75/MMBtu. Please give me a call with any questions. Thanks, JRW

Please note that Dec '01 from NF1164.B has been removed and rebooked to NF1164.I.

---------------------- Forwarded by David Baumbach/HOU/ECT on 09/26/2000 02:01 PM --------------------------- Carla Nguyen 09/26/2000 01:40 PM To: Melissa K Ratnala/HOU/ECT@ECT, Jim Pond/Corp/Enron@Enron, Jim Little/HOU/ECT@ECT, David Baumbach/HOU/ECT@ECT, Eric Francis Calub/HOU/ECT@ECT, Troy Klussmann/HOU/ECT@ECT cc: Subject: Re: Cleburne PC# ENA - IM Cleburne 12782. ---------------------- Forwarded by Carla Nguyen/HOU/ECT on 09/26/2000 01:38 PM --------------------------- SAP Master Data@ENRON on 09/26/2000 11:14:16 AM Sent by: Nina Fortune@ENRON To: Carla Nguyen/HOU/ECT@ECT cc: Subject: Re: Profit center request form Carla, Profit Center 12782 has been created. Thank you, Nina RT# 227229 From: Scott Becken 09/25/2000 07:30 PM To: SAP Master Data@ENRON cc: Subject: Profit center request form Please process this request for Carla. The Remedy ticket number is 226611. Thanks. ---------------------- Forwarded by Scott Becken/Corp/Enron on 09/25/2000 07:28 PM --------------------------- Carla Nguyen @ ECT 09/25/2000 06:29 PM To: SAP COE/Corp/Enron@Enron cc: Melissa K Ratnala/HOU/ECT@ECT, Jim Pond/Corp/Enron@Enron, David Baumbach/HOU/ECT@ECT Subject: Profit center request form Please set up this new Profic center. If you have questions, please give me a call. Thks! ---------------------- Forwarded by Carla Nguyen/HOU/ECT on 09/25/2000 06:26 PM --------------------------- Enron North America Corp. From: Robert Hunter @ ENRON 09/25/2000 12:35 PM To: Carla Nguyen/HOU/ECT@ECT cc: Subject: Profit center request form

Here is the estimate for the monthly expenses. ---------------------- Forwarded by Brian Vass/HOU/ECT on 11/27/2000 03:10 PM --------------------------- Lisa King 11/22/2000 09:39 AM To: jlamb@gardere.com cc: Brandi Morris/HOU/ECT@ECT, Brian Vass/HOU/ECT@ECT Subject: Rig Expense Estimate Jim- Attached is a schedule detailing expenses encountered for the rig for the 3rd quarter. Please let me know if you need more information. Have a great Thanksgiving, Lisa King

Attached are a draft of the MSA and a Transaction Agreement under the existing Enfolio Master in place between ENA and the City of Palo Alto. Please review. There are a few questions and blanks to be completed after your review.

I'll be out of the office this afternoon and tomorrow. Tuesday and Wednesday of next week I'll be working in another Enron office, and will be traveling back to Houston on Thursday. I'll be checking my voicemails regularly and Joyce can reach me in an emergency. Joel will be covering for me on Raptor matters in my absence, although I haven't attempted to get him up to date on the hedging issues we've been discussing over the last week or so given the fact that I believe we've essentially finished working through how we do these and given the relative complexity of the issues here.

[IMAGE] Forums Discuss these points in the Forums: Forexnews Forum Technicals Live Charts Analysis available from: Cornelius Luca J.P. Chorek Technical Research Ltd. Charts & News featuring Standard & Poor's Interest Rates US: Japan: Eurozone: UK: Switzerland: 1.75% 0.15% 3.25% 4.0% 1.25-2.25% [IMAGE] [IMAGE] Japanese Forex Trading Preview February 20, 7:00 PM: EUR/$..0.8700 $/JPY..133.77 GBP/$..1.4271 $/CHF..1.6997 Japanese Forex Trading Preview by Darko Pavlovic At 6:50:00 PM Japan Dec Tertiary Index (exp -1.5%, prev 1.7%) Japan Dec All ind. index (exp -0.5%, prev 0.4%) The dollar is likely to test 134 yen on Tokyo's Thursday trading following the rise in US stocks and optimism about the world's biggest economy. In Asian trading, the Japanese currency had risen on reports that Bank of Japan Governor Hayami had asked Prime Minister Koizumi to consider injecting public funds into the ailing banking sector, although government spokesman Fukuda later denied. Markets will eye speech from former finance minister for international affairs Sakakibara alias Mr. Yen for his most of the times accurate predictions about the economic outlook. The speech is due at 1:00 AM EST. Japan Dec all industries activity index rose 1% from the previous month. The core component of tertiary sector index rose 0.7%. For the Oct-Dec quarter the all industries index fell 0.7% from the previous quarter. The tertiary index was up 0.1% In the immediate-term, the yen's losses are likely to be limited by repatriation before the Japanese fiscal year ends on March 31, after which point, the currency is seen to tumble further in the absence of crucial reform initiatives. The mid sized builder company Haseko's shares had been temporarily suspended in Tokyo trading after media reports that the company will ask creditors to covert 150 bln yen in debt to equity. The lower house Budget Committee will hold public hearings on the fiscal 2002 budget next week, clearing the way for the budget's passage in the full lower house as early as March 5. Subsequent to passage in the lower house, the government and the coalition parties expect to have the full upper house approve the fiscal 2002 budget on about March 20. The January consumer sentiment index rose 5.4 points from the previous month to -31.2, its first improvement in two months. Of respondents, 9.5% reported improved circumstances, up 2.4 pts from December, and 40.7% reported a worsening in their financial state, down 3.0 pts. The BoJ Hayami was reluctant on Feb. 15 meeting to increase its outright monthly govt. bond purchases due to negative side effects on long term rates. The Finance Minister Shiokawa has frequently said he would like the BOJ increase its JGB buys to Y1.0 trillion from the current Y800 billion. Resistance is eyed at 134.0, 134.45 and 134.85. Support holds at 133.20, 133.0 and 132.50. EUR/USD is trading just below 87 cents as the euro failed to profit on stronger than expected Italian ISAE Consumer Confidence Survey which gained 1.6 points to 126, showing that customers felt the most optimistic in 12 years since unemployment has been falling. Market participants believe that Euroarea consumption will have to replace weak business spending in order to avoid a recession in the Eurozone. The ISAE commented that consumers were "more positive about the near-term prospects for the economy", adding that they did not anticipate significant inflationary pressures. Support is viewed at 86.80, 86.45/50 and 86.10. Resistance is seen at 87.85, 88.10 and the 200-day moving average at 88.5 Cable fell after Bank of England's Monetary Policy Committee meeting minutes showed that two of the nine members voted in favor of a 25-bp rate cut. Markets wait for tomorrow's release of UK retail sales that are expected to edge up 0.6% m/m or 5.8% y/y in January. The pound could renew its climb should the data show strong levels of consumption that would induce the central bank to raise interest rates. Support stands at 1.4225, 1.420 and 1.4150. Upside capped at 1.4340, 1.4365 and 1.440. Markets will first assess tomorrow's US international trade balance, which is expected to widen to 28.3 billion in December from the previous deficit of 27.8 billion as sluggish global demand takes its toll on US exports.Then traders will look at tomorrow morning's release of the Index of Leading Indicators that is forecasted to post a more moderate gain to 0.5% in January from the previous increase of 1.2% due to improvements in jobless claims and in the ISM manufacturing survey. This week's other key US indicators consist of jobless claims, Philadelphia Fed survey and the Federal budget. Eurozone highlights include German CPI, Italian industrial orders, Euroarea balance of payments, Euroarea foreign trade, French GDP, Italian CPI and Spanish CPI. The last data release from the UK this week is the CBI Industrial Trends survey. The remaining economic indicator from Japan is the index of tertiary sector activity. [IMAGE] Audio Mkt. Analysis Yen Tumble Drives up EUR/USD Articles & Ideas Off Goes the Franc, On Comes Jospin JPY: Japan's Reform Dilemma Articles & Ideas Forex Glossary Economic Indicators Forex Guides Link Library [IMAGE] [IMAGE][IMAGE] [IMAGE][IMAGE] This e-mail is never sent unsolicited. If you wish to unsubscribe from this or any other Forexnews.com newsletters, please click here . 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This looks like too much trouble. From: Kathleen Carnahan 01/22/2001 12:03 PM To: Kay Mann/Corp/Enron@Enron cc: Subject: Re: Resignations of CAED I & II Man. Dir. & Officers Kay, The following are the officers of CAED I & II: David W. Delainey President Janet R. Dietrich Managing Director Mark E. Haedicke Managing Director and General Counsel Robert J. Hermann Managing Director and General Tax Counsel Julia Heintz Murray Managing Director, General Counsel, Finance and Secretary Ben F. Glisan Vice President, Finance and Treasurer Michael J. Miller Vice President Stephen H. Douglas Vice President and Tax Counsel Elaine V. Overturf Deputy Corporate Secretary Teresa R. Callahan Assistant Secretary Kate B. Cole Assistant Secretary Denise A. Ernest Assistant Secretary Kay Mann 01/22/2001 10:12 AM To: Kathleen Carnahan/NA/Enron@Enron cc: Subject: Resignations of CAED I & II Man. Dir. & Officers Could you let me know how many there are, so I'll know how we want to handle this. ---------------------- Forwarded by Kay Mann/Corp/Enron on 01/22/2001 10:10 AM --------------------------- "George Kutzschbach" <gkutzschbach@fulbright.com> on 01/19/2001 06:14:02 PM To: kay.mann@enron.com cc: DPedigo@INTERGEN.com, CCampbell@KSLAW.com Subject: Resignations of CAED I & II Man. Dir. & Officers Kay, Please have the appropriate managing directors and officers of CAED I and CAED II execute the attached resignations and return the executed resignations to Doug Pedigo. If any other persons were manging directors or officers of CAED I or CAED II prior to closing, please have them execute similar resignations and furnish them to Doug. Thanks. George - 5bx_j01_.DOC

I have a proposed restructuring transaction with City of Mesa, Arizona. It works like this: 1) Half their volume is currently priced at 3.74 (fixed, physical deal with us) 2) That deal runs through July 01 3) I want to reprice that deal at a higher price and use that equity to finance a discount to index for an extra six months. 4) They will do one of two transactions (shown below) one extends half the volume one extends the full volume. I need help with a couple of things: 1) Since they canceled their Enfolio Agmt. can I get a contract from legal that will allow us to transact without it. 2) How do we get this deal in Mike's book and the risk system Thanks, Dave Fuller 503-464-3732

> >A VW can do anything ... > >The stupidity of some people in this world never fails to amaze me. > >This picture is real - not doctored in anyway - and was taken last week > > in > >Waldorf by a Transportation Supervisor for a company that delivers > building > >materials for 84 Lumber. When he saw it there in the parking lot of > IHOP, > >he went and bought a camera to take pictures. > > > >The car is still running as can be witnessed by the exhaust. A woman is > > >either asleep or otherwisw out in the front seat passenger side. The > guy > >driving it was over jogging up and down on Rt. 925 in the background. > The > >witnesses said their physical state was OTHER than normal and the > police > >just shook their heads in amazement. The driver finaly came back after > > the > >police were there and was getting down at the back to cut the 'twine > around > >the load. They told him to get back until it was taken off. > >The materials were loaded at Home Depot. Their store manager said they > > had > >the customer sign a waiver! > >Both back tires are trashed. The back shocks were driven up through > the > >floorboard. In the back seat are are 10 bags, 80 lbs. each of > concrete. > >On the roof is many 2X4s, 4X4s and OSL sheets of lumber. They > estimated > the > >load weight at 3000 lbs. The car is a VW Jetta with FL plates and the > guy > >said he was headed for Annapolis. > >JUST UNBELIEVABLE!!!! > > > (See attached file: Stupid.jpg) > > > > > (See attached file: Stupid.jpg) > <<JPEG File Interchange>> ****************************************************************** 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. ****************************************************************** - Stupid.jpg

I will be emailing all of you with any capacity issues I find. CGLF k#64502 ; This is an offshore FTS2 contract that we use with the West Cam Devon production. The demand charge is $1.4381 on a volume of 29,000 dts and the commodity is $.0024. According to my notes; this is a volumetric demand contract and the volumetric demand charge in my sheet is $.0648 I am changing this to a regular demand charge contract in Sitara and the worksheet. Comments/Questions?

Certainly. You might also be interested to know that I spoke at length today with Lad Lorenz, and like most parties to this proceeding, SoCal Gas is awfully tired of this fight. Lad doesn't expect that SoCal will file any sort of substantive challenge to the CPUC's decision. Of course, SoCal, will ultimately have the lead in writing the tariff sheets which implement the features of the settlement. I told him that, most likely, TW will monitor the implementation phase of the proceeding but was probably not going to mount any serious challenge to the CPUC's decision. Susan Scott 11/29/2000 02:59 PM To: Jeffery Fawcett/ET&S/Enron@ENRON cc: Subject: Re: Proposed Decision Jeff -- good wrap-up. May I forward to MKM and Drew? Jeffery Fawcett 11/29/2000 10:58 AM To: Steven Harris/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron, TK Lohman/ET&S/Enron@ENRON, Christine Stokes/ET&S/Enron@ENRON, Michelle Lokay/ET&S/Enron@Enron, Lorraine Lindberg/ET&S/Enron@ENRON cc: Susan Scott/ET&S/Enron@ENRON Subject: Proposed Decision The GD article today regarding the proposed decision is a pretty good Readers Digest version of the order. Susan and I spoke with Jeff Dasovich and Mark Baldwin yesterday, and the consensus of those conversations was that Transwestern should remain involved in this proceeding only for purposes of implementation/documentation. Jeff offered that he might send a letter to Governor Gray's office expressing both dismay and indignation that the CPUC didn't complete their task and warning of the adverse outcome to California ratepayers if these more modest reforms are approved. He may ask the other Comprehensive Settlement parties to join in signing the letter. Susan, Mark and I spoke about this idea later, and we've got some reservations about TW's role in admonishing the CPUC. We should probably wait to see this letter first before committing to anything. Bilas draft cautious toward SoCal competition Mindful of the current chaos over energy markets in the state, California Public Utilities Commissioner Richard Bilas has recommended the adoption of a much more moderate approach to promoting competition on Southern California Gas
, (SoCal) system. In his draft decision, Bilas advised the commission to reject the unbundling of intrastate transmission and instead approve the first settlement filed in the case, the less far-reaching Interim Settlement (IS), submitted in December 1999. SoCal, San Diego Gas and Electric and other parties filed two more settlements after the IS, reaching a comprehensive agreement in April this year. But since then, gas and power prices skyrocketed in the state, prompting a consumer backlash and giving competition a bad name. The draft language notes that the first interim settlement was supported by more customer groups than the later agreements. Recent events
&lead us to conclude that the centerpiece of this investigation, the unbundling of intrastate transmission and the implementation of a system of firm, tradable intrastate transmission rights, should be delayed,
8 according to the draft order.
&This unbundling is the basis of the [comprehensive settlement] and we cannot approve it. We do not, however, wish to commit to paralysis until 2006, as the [post-interim settlement] would have us do. Accordingly, we believe Californians are better served at this juncture by the adoption, with modifications, of the IS.
8 The biggest change to the IS in the draft is the rejection of an automatic capacity expansion by SoCal at Wheeler Ridge, Calif., with rolled-in rates if certain criteria are met. El Paso Energy had objected to the provision in the IS that would have allowed SoCal to automatically expand capacity at Wheeler Ridge by 100 million cfd if a certain number of curtailments oc-curred. El Paso objected to forcing all shippers to pay for the expansion at Wheeler when only certain customers would benefit. The draft says SoCal can file a separate application for the Wheeler Ridge expansion, but approval would be conditioned on a traditional hearing process. The draft decision would also:
 End SoCal
,s current
&windowing
8 process, which limits shippers
, ability to change nominations for deliveries between receipt points on the system. It is replaced with an announced daily calculation of capacity available at each receipt point;
 Establish Hector Road as a formal receipt point for nominations;
 Institute an operational flow order (OFO) procedure. Provides a forum for more changes in OFO procedures if excessive OFOs are made;
 Set up
&pools
8 of gas on the SoCal transmission system that are intended to increase the liquidity of gas trading;
 Make changes to balancing rules, while retaining the current 10% monthly imbalance tolerance;
 Make SoCal
,s own gas acquisition unit subject to the same balancing rules and penalties as all other shippers;
 Allow some limited imbalances trading, as well as the right to assign and reassign unbundled storage contract in a secondary market, with a SoCal electronic bulletin board set up for it;
 Unbundle from core transportation rates the storage capacity cost exceeding that required for core minimum reliability; and
 Provide for rate recovery of up to $3.5 million in implementation costs. In addition, the draft would unbundle core interstate transportation from rates, eliminate core contribution to noncore interstate transition cost surcharges, eliminate the core subscription option as well as the caps for core aggregation programs. The threshold for participating in core aggregation is reduced, and billing options are offered to core aggregators. Bilas
, draft also warned that the commission may come back in two years to open another investigation into gas competition, taking into account any changes in market conditions. Bilas gave a little more insight into his decision in the text of the draft.
&The cost of gas as a commodity has vastly increased at the border, showing a differential between the basin and border prices that is more than the cost of transport and related services; we question whether there will be an opportunity for discounting by marketers if more competition is allowed,
8 Bilas wrote in the draft decision.
&With half the state already committed to a restructured competitive natural gas industry, it suddenly seems as if the benefits of such re- structuring to enhance competition are speculative, particularly at this time. With one leg in the water, the current has switched direction and it will be difficult, if not foolhardy, to reach our goals by forging ahead.
&We choose to take a cautious approach again,
8 the draft continues.
&Rather than proceeding to unbundle transmission in Southern California now, we approve, with modifications, the settle- ment suggesting smaller steps towards a competitive market. Additionally, we unbundle core interstate transmission and once again urge the Legislature to pass consumer protection legisla- tion aimed at unregulated marketers while we facilitate growth in core aggregation programs.
8 The CPUC would not rule out the unbundling of intrastate transmission and other restruc- turing in the future
&but believe that at this point in time the certain benefits do not outweigh the costs to most ratepayers.
8 All drafts must be filed 30 days before the meetings at which they will be discussed. The draft decision is currently on the agenda for the CPUC
,s Dec. 21 meeting.

We understood, at the time, that the test was going well. This is Frontera's test to continue to bid in replacement and non-spin. JMF -----Original Message----- From: "Jewett, Jennifer" <JJewett@ercot.com>@ENRON Sent: Wednesday, December 05, 2001 9:45 AM To: jforney@ect.enron.com Cc: Patterson, Mark; Adams, John Subject: Enron Balancint Test Documentation Attached are the results of the Balancing Test evaluation performed on October 25, 2001. According to may paperwork, I should send the results back to Steve Olin but I cannot contact him therefore, I am contacting you with the results. I regret to inform you that Enron has unsuccessfully completed Balancing Test evaluation. Results are attached. <<ENRON_ bal_10_25_01_evaluation_v2_fail.xls>> - ENRON_ bal_10_25_01_evaluation_v2_fail.xls

Sounds like fun man. Do you ever do any bay fishing? If you want to, let me know and I would love to go. I like to wade fish so that I can use my fly rod. I need to get my licensed renewed. How much did you catch? PL

I assume you guys received this...SRS ---------------------- Forwarded by Sherri Reinartz/Corp/Enron on 10/06/99 01:46 PM --------------------------- Julie Featherston <julie@nerc.com> on 10/06/99 10:35:29 AM To: julie@nerc.com cc: (bcc: Sherri Reinartz/Corp/Enron) Subject: TVA Ltr. to Gent TO: Board of Trustees Ladies and Gentlemen: Mr. Boston requested the attached letter be distributed to the same group that Mr. Skilling's August 31st letter to Mr. Gent was distributed. I believe the entire Board was copied on the August 31 letter; however, if you didn't receive it or would like a hard copy, please let me know. Sincerely, Julie M. Featherston cc: Board Observers Technical Steering Committee Regional Managers - TVA ltr to Gent.doc

Is this note to Brian below incremental gas???????? Meaning... Joann has a number about 250,000/day given to her by the LDC Schedulers. This includes daily volume: Who Volume Sitara Deal Ticket CES Endusers 93689 143336 Choice 107489 148416 South Jersey 36900 142776 Penn Fuel 5000 151759 Hopewell 4500 139679 Texaco 255 136502 Engage 1966 142656 Florida Power and Light 152 151788 Total 249,951 Is there a way to put all incremental gas on one deal ticket??? It would make our pathing life a lot easier too!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Chris Germany@ECT 01/31/2000 03:41 PM To: bperron@columbiaenergy.com cc: Joann Collins/Corp/Enron@ENRON, Joan Veselack/Corp/Enron@ENRON, Robert Allwein/HOU/ECT@ECT, Victor Lamadrid/HOU/ECT@ECT Subject: Fixed price deal I believe you did a fixed priced deal with Craig Taylor. The price is $3.06. Could you get me the meter numbers? This is what I have so far COH Mrkt Area Monthly Vol Meter 7 5 700 7 1 1141 7 1 682 7 5 1993 7 5 2881 8 5 5534 9 5 12309 5 2 1577

No this is definitely not the final document.. Issues 1-3 are correct and complete, but 4 & 5 are not. I imagine 6-10 pages in reporting requirements for Gas Daily Options and Pipe Options alone. While we are still working on these requirements we can move forward on 1-3 and the deal entry and new deal type for basis options. Louise Kitchen 04/08/2001 06:57 PM To: Geoff Storey/HOU/ECT@ECT cc: Subject: Inception Document for GTV II phase II I take it this is not your final document? ---------------------- Forwarded by Louise Kitchen/HOU/ECT on 04/08/2001 06:57 PM --------------------------- From: Zhiyong Wei/ENRON@enronXgate on 04/06/2001 06:55 PM To: Louise Kitchen/HOU/ECT@ECT, Geoff Storey/HOU/ECT@ECT, Colleen Sullivan/HOU/ECT@ECT, Philippe A Bibi/ENRON@enronXgate, Beth Perlman/ENRON@enronXgate, Stephen Stock/ENRON@enronXgate cc: Subject: Inception Document for GTV II phase II Attached please find the Inception Document for Gas Trading Vision II Phase II. I would appreciate your comments. I will be circulating the document for signatures on Wednesday. Please provide your inputs by then. Thanks Zhiyong

Per our conversation, I am attaching a proposed form of Unanimous Consent of the Board of Directors of Brant-Allen Industries, Inc. ("Company") that would expand the Consent of Directors given to us when we executed the ISDA Master Agreement in 1998 to do more than just the single trade referenced in that resolution. If the enclosed meets with your approval, please have it executed by the directors of the Company and return a copy to me for our files. If you have any questions, please do not hesitate to call me at (713) 853-3399. In addition, can you confirm one thing for me. There is a note in our file that says documents for the Company require two signatures. I looked at the Articles of Incorporation and Bylaws you provided us and find no such signatory requirement. Is this note an error?

Craig, In an effort to make sure that I am adequately prepared for my interview, I wanted to touch base with you and confirm that I possess all the necessary information and forms. Last week I received the packet you had mailed containing the application form and company information. Also, I have confirmed my flights, hotel arrangements and the directions to your facilities with Sharon Roberts. I assume all the information needed prior to my arrival is already in my possession, if you know of any additional information I may need please let me know. The last area of interest I am hoping to address is the actual interview schedule. If it is possible at this point in time, I would appreciate the chance to preview the individuals with whom I will be meeting. If the interviews have not been completely arranged as of yet then simply disregard the last request. I look forward to meeting and speaking with you tomorrow. Thank you, Susan Scott

12/29/00 Time Location Call In # Pass Code 10:00 Central Standard Time EB 2868 1-800-713-8600 80435 This is a recurring daily meeting until further notice (this invitation will schedule your calendar through 1/31/01). Time, Call In #, and Pass Code are the same for all meetings. Conference room location will be changed as soon as possible to better accommodate the participants. Note: Optional Invitees FYI Only Please call me if you have any questions Leticia x-58752

Mike in the back office reminded me to tell everyone that ISO numbers need to be put into the Oasis line in Enpower. Since he does the losses manually after the fact this will help him a lot. Also, the link to the Ercot intranet is attached below. If you trade Ercot, please add it to your favorites. ISO messages, real time load display info, and a new real-time ATC calculator matrix are all there. You guys are doing a great job backfilling KCPL and moving power across the tie when we have the transmission. Sorry about the P&L and Enpower being hairy when we do it. As you've seen, however, when the spreads are there we are printing money. Be careful also when putting in deals with regards to what book they go in. This morning there was a Cinergy wheel in the Ercot book. It's easy to mess up even for the veterns. Richard "somehow" had a PJM financial deal in the Ercot book this morning that just coincidentally lost over $2000. I'm not sure what comment to make on that one. Thanks again guys, the Ercot book is up over $160K for the month due in part to the job you guys are doing. If you work the phones hard in Ercot, there are always people to get between for solid spreads. Late, LJ

Scott is your main man - I guess. I don't know if he is going to keep doing it or if he's going to hire an analyst. I think Susan will be doing Texas Eastern. Mr. Goodell will be going to the CGAS/TCO meeting on Tuesday. I may be going Tues afternoon. When do you leave Houston? "Veselack, Joni" <joni.veselack@neg.pge.com> on 05/08/2001 08:16:56 AM To: "'Chris Germany'" <chris.germany@enron.com> cc: Subject: Who is doing Tenn 500/800?? Vickey told me yesterday was her last day. I see Scott Neal is on Tenn Z0. There are no quotes out there... just for Enron's info. I'll be in town this weekend.. going to TCO/Gulf meeting Monday and Tuesday. Hope to see you. Hope your back and other aches are okay. PG&E National Energy Group and any other company referenced herein that uses the PG&E name or logo are not the same company as Pacific Gas and Electric Company, the regulated California utility. Neither PG&E National Energy Group nor these other referenced companies are regulated by the California Public Utilities Commission. Customers of Pacific Gas and Electric Company do not have to buy products from these companies in order to continue to receive quality regulated services from the utility.

Attached are the revised drafts. Please note the following: 1. I revised the FERC language but haven't yet talked to Drew about this concept. He is in Houston somewhere and I have a call in to him. 2. The Equivalent HP concept was removed. Thus a Force Majeure or Utility interruption event will interuppt the Compression Services Charge. 3. Please review the unwind language carefully in the Conversion Agreement. 4. I added an arbitration provision. This is standard in ENA or affiliate contracts. The O&M form will follow shortly.

---------------------- Forwarded by Jeffrey C Gossett/HOU/ECT on 12/27/2000 02:30 PM --------------------------- Dawn C Kenne 12/27/2000 02:25 PM To: Dat Truong/Corp/Enron@Enron, George Grant/HOU/ECT@ECT cc: Torrey Moorer/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT Subject: Hedges not linking to sitara deals Dat and George, risk informed me of 2 additional sitara deals that are not "linking" the hedges to the primary sitara deal. Dat, can you please look into this and let me know if this is a quick fix or not. Risk is inquiring. EOL #719279 and #713548 are the one's on question. Tara and Torrey, what is happening is risk is not seeing a hedge attaching to the sitara deal and manually booking the hedge. But, the hedge is being created, just not linked to the primary physical deal. Jeff, I will let you know when this is corrected. Please advise your group not to manually hedge the deals in sitara. If in doubt if it is hedged, have them type in the next number after the sitara number which should be the hedge. For example, the physical deal is 547092, the hedge will be 547093. Let me know if you have any further questions. Thanks, Dawn 3-9353

FYI. ----- Forwarded by James D Steffes/NA/Enron on 03/22/2001 10:16 AM ----- Kristin Walsh/ENRON@enronXgate 03/22/2001 08:20 AM To: John J Lavorato/ENRON@enronXgate, Louise Kitchen/HOU/ECT@ECT cc: Phillip K Allen/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, Mike Grigsby/HOU/ECT@ECT, Tim Heizenrader/PDX/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT, Rob Milnthorp/CAL/ECT@ECT, Kevin M Presto/HOU/ECT@ECT, Claudio Ribeiro/ENRON@enronXgate, Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Mark Tawney/ENRON@enronXgate, Scott Tholan/ENRON@enronXgate, Britt Whitman/ENRON@enronXgate Subject: California Update 3/22/01 ? The legislature will meet and vote to repeal Section 390 of AB 1890. This will reverse what the QFs get paid from natural gas costs and replace it with the formula in the governor's current plan - 7.9 cents/kwh for 5-year contracts and 6.9 cents/kwh for 10-year contracts. According to sources, this is "locked in to pass." It will be implemented by a PUC order on Monday. ? The QFs met on this plan all day yesterday and have calculated what they would get paid. This plan would not generate enough money for many QFs to operate profitably. At least 2,000 MW of the total 5,407 MW of gas-fired QFs would be unable to generate a positive cash flow and would have to either operate unprofitably or shut down. ? The QF community is responding with an increased militancy for an involuntary filing, according to sources. The most aggressive QF after Coram Energy is David Sokol and Walter Scott of Mid-America Energy (based in Nebraska). Sokol is described by sources as "extremely aggressive." ? An involuntary bankruptcy filing appears imminent. Sources believes the trigger event will either be the legislative passage of the plan tomorrow or the PUC order implementing the plan on Monday.

Becky: can you please make an addition: After the the termination value brackets, put a period and add: "A valuation sheet is attahced." Thanks. Sara -----Original Message----- From: Spencer, Becky Sent: Thursday, December 13, 2001 4:37 PM To: Aronowitz, Alan; Shackleton, Sara Cc: Hendry, Brent Subject: Form: Termination Agreement Signoff Sheet Attached you will find the above referenced form. << File: Termination Agreement Signoff Sheet.doc >> Becky Spencer Enron Wholesale Services 1400 Smith Street - ECN 3851A Houston TX 77002 713 853 7599 office 713 646 4842 fax

Sue/Janelle: Steve Kean's pitch to the Florida PSC looks like it opened a "small crack" in the FL IOUs door. I am trying to get Enron a slot on the agenda. I will advise tomorrow. Marchris ----- Forwarded by Marchris Robinson/NA/Enron on 05/07/2001 04:50 PM ----- "Natalie FUTCH" <natalief@katzlaw.com> 05/07/2001 04:39 PM To: <Marchris.Robinson@enron.com> cc: Subject: FPSC workshop on hedging and portfolio management next Monday Marchris: We'll give you more information as we learn it. On Friday, May 4, the FPSC issued a notice of a workshop on hedging and portfolio management (procurement of fuel for electric generation and end-use applications); to be held next Monday, 5/14/01, at 1:30 p.m. at the FPSC. F ind the notice at this link: http://www.psc.state.fl.us/dockets/documents/01/05688-01.html Find the agenda at this link (open with wordperfect viewer - let me know if you need me to cut and paste it into an e-mail). http://webserv1.electro-net.com/psc/Framer.Cfm?Link=rtowkshp.wpd The purpose of this meeting is to have presentations on this issue. Natalie Natalie B. Futch, associate Katz, Kutter, Haigler, Alderman, Bryant & Yon, P.A. 106 E. College Avenue, Suite 1200 Tallahassee, FL 32312 (850) 224-9634 (phone) (850) 681-3218 (facsimile) www.katzlaw.com _______________________________________ This transmission is intended to be delivered only to the named addressee(s) and may contain information that is confidential, proprietary, attorney work-product or attorney-client privileged. If this information is received by anyone other than the named addressee(s), the recipient should immediately notify the sender by E-MAIL and by telephone (850) 224-9634 and obtain instructions as to the disposal of the transmitted material. In no event shall this material be read, used, copied, reproduced, stored or retained by anyone other than the named addressee(s), except with the express consent of the sender or the named addressee(s). Thank you.

Conference Room TBD. This meeting will be to discuss opportunity for EBS to provide the network for BBI's well-site reporting systems to send their data across. Maybe VBN/IPNetConnect application?

greatest email ever -----Original Message----- From: Luis Mena <luis.mena.2003@anderson.ucla.edu>@ENRON Sent: Tuesday, November 27, 2001 4:33 PM To: Lenhart, Matthew; Hull, Bryan; Bass, Eric; JOHN HARRINGTON; RYAN JONES; FRANKLIN LOBO; JENNIFER BAUER; ijzarate@hotmail.com; elias@teledynamics.com; colombiano88@hotmail.com; SACHIN SASTE; GLENN LYDAY Subject: [Fwd: a day in the life] this is an old one but a great one. If you dont like this email, then you just don't understand. A chronology of events for Saturday, December 4, 1999, and the early morning hours of Sunday, December 5, 1999: 6:00 Arise, play the Eyes of Texas and Texas Fight at full-freaking blast 6:20 Get in car, drive to New Braunfels 7:30 Tee off (me and a buddy were the FIRST tee-time of the morning) 8:50 Turn 9 (crack open first beer) 8:53 Crack open second beer 8:58 Crack open...(you get the idea) 10:30 Finish 18 (holes, as well as beers), sign scorecard for smoooooth 95 10:35 Headed for San Antonio 10:50 Buy three 18-packs for pre- and post-game festivities 11:10 We decide we don't have enough booze, so we double-back to a liquor store and buy the good ol' 750 ml plastic bottle "Traveler" Jim Beam 11:50 Arrive at the tailgate spot. Awesome day. Not a single cloud in the sky. About 70 degrees. 11:55 I decide that we're going to kick the shit out of Nebraska. 11:56 I tell my first Nebraska fan to go fuck himself. 12:15 The UT band walks by on the way to the Alamodome. We're on the second floor of a two-story parking garage on the corner (a couple hundred of us). We're hooting and hollering like wildmen. The band doubles back to the street right below us and serenades us with Texas Fight and The Eyes of Texas. AWESOME MOMENT. 12:25 In the post-serenade serendipity, 50-100 grown men are bumping chests with one another, each and every one of them now secure and certain of the fact that we are going to kick the shit out of Nebraska. 1:00 The Nebraska band walks by on the way to the Alamodome. Again, we hoot and holler like wildmen. Again, the band doubles back and stops right below us to serenade us, this time, however, with the Nebraska fight songs. Although somewhat impressed by their spirit and verve, we remain convinced that we are going to kick the shit out of Nebraska. 1:30 I begin the walk to the Alamodome, somehow managing to stuff the "Traveler" and 11 cans of beer into my pants. 1:47 I am in line surrounded by Nebraska fans. They are taunting me. I am taunting back, still certain that we are going to kick the shit out of Nebraska. I decide to challenge a particularly vocal Nebraska fan to play what I now call and will forever be remembered as "Cell-Phone Flop Out." Remember flop out for a dollar? The rules are similar. I tell this Nebraska jackass that if he's so confident in his team, he should "flop out" his cell phone RIGHT NOW and make plane reservations to Phoenix for the Fiesta Bowl. And then I spoke these memorable words: "And not those damn refundable tickets, either! You request those non-refundable, non-transferrable sons-of-bitches!" He backs down. He is unworthy. I call Southwest Airlines and buy two tickets to Phoenix, non-refundable and non-transferrable. Price: $712. He is humbled. He lowers his head in shame. I raise my cell phone in triumph to the cheers of hundreds of Texas fans. I am KING and these are my subjects. I distribute the 11 beers in my pants to the cheering masses. I RULE the pre-game kingdom. 2:34 Kickoff. Brimming with confidence, I open the Traveler and pour my first stiffy. 2:45 I notice something troubling: Nebraska is big. Nebraska is fast. Nebraska is very pissed off at Texas. 3:01 The first quarter mercifully ends. 9 yards total offense for Texas. Zero first downs for Texas. I'm still talking shit. I pour another stiffy from the Traveler. 3:36 Four minutes to go in the first half: the Traveler is a dead soldier. I buy my first $5 beer from the Alamodome merchants. While I am standing in line, a center snap nearly decapitates Major Applewhite and rolls out of the end zone. Safety. 3:56 Halftime score: Nebraska 15, Texas 0. I wish I had another Traveler. 4:11 While urinating next to a Nebraska fan in the bathroom at halftime, I attempt to revive the classic Brice-ism from the South Bend bathroom: "Hey, buddy, niiiiiiiiice cock." He is unamused. 4:21 I buy my 2nd and 3rd $5 beer from the Alamodome merchants. I share my beer with two high school girls sitting behind me. Surprisingly, they are equipped with a flask full of vodka. I send them off to purchase $5 Sprites, so that we may consume their vodka. I have not lost faith. Nebraska is a bunch of pussies. 4:51 No more vodka. The girls sitting behind me have fled for their lives. I purchase two more $5 beers from the Alamodome merchants. 5:18 Score is Nebraska 22, Texas 0. I am beginning to lose faith. This normally would trouble me, but I am too drunk to see the football field. 5:27 I call Southwest Airlines: "I'm sorry, sir. Those tickets have been confirmed and are non-refundable and non-transferrable." 5:37 I try to start a fight with every person behind the concession counter. As it turns out, the Alamodome has a policy that no beer can be sold when there is less than 10 minutes on the game clock. I am enraged by this policy. I ask loudly: "Why the fuck didn't you announce last call over the fucking PA system??!!" 5:49 Back in my seats, I am slumped in my chair in defeat. All of a sudden, the Texas crowd goes absolutely nuts. "Whazzis?," I mutter, awaking from my coma, "Iz we winnig? Did wez scort?" Alas, the answer is no, we were not winning and we did not score. The largest (by far) cheer of the day from the Texas faithful occurred when the handlers were walking back to the tunnel and Bevo stopped to take a gargantuan shit all over the letters "S", "K", and "A" in the "Nebraska" spelled out in their end zone. I cheer wildly. I pick up the empty Traveler bottle and stick my tongue in it. I am thirsty. 6:16 Nebraska fans are going berserk as I walk back to the truck. I would taunt them with some off-color remarks about their parentage, but I am too drunk to form complete sentences. With my last cognitive thought of the evening, I take solace in the fact that if we had not beaten them in October, they would be playing Florida State for the national championship. 6:30 Back in the car. On the way back to Austin for the 8:00 Texas-Arizona tip off. We can still salvage the day! I crack open a beer. It is warm. I don't care. 7:12 We have stopped for gas. I am hungry. I go inside the store. I walk past the beer frig. I notice a Zima. I've never had a Zima. I wonder if it's any good. I pull a Zima from the frig. I twist the top off and drink the Zima in three swallows. Zima sucks. I replace the empty bottle in the frig. 7:17 There is a Blimpie Subs in the store. I walk to where the ingredients are, where the person usually makes the sub. There is no one there. I lean over the counter and scoop out half a bucket of black olives. I eat them. I am still hungry. I lean further over the counter and grab approximately two pounds of Pastrami. I walk out of the store grunting and eating Pastrami. The patrons in the store fear me. I don't care. 8:01 We are in South Austin. I have been drinking warm beer and singing Brooks and Dunn tunes for over an hour. My truck-mate is tired of my singing. He suggests that perhaps Brooks and Dunn have written other good songs besides "You're Going to Miss Me When I'm Gone" and "Neon Moon" and that maybe listening to only those two songs, ten times each was a bit excessive. Perhaps, he suggests, I could just let the CD play on its own. I tell him to fuck off and restart "Neon Moon." 8:30 We arrive at the Erwin Center. My truckmate, against my loud and profane protestations, parks on the top floor of a nearby parking garage. I tell him he's an idiot. I tell him we will never get out. I tell him we may as well pitch a fucking tent here. He ignores me. I think he's still pissed about the Brooks and Dunn tunes. I whistle "Neon Moon" loudly. 8:47 I am rallying. I have 4 warm beers stuffed in my pants. We're going to kick the shit out of Arizona. 9:11 Halftime score: Texas 31, Arizona 29. I am pleased. I go to the bathroom to pee for the 67th time today. I giggle to myself because of the new opportunity to do "the bathroom Brice." There are no Arizona fans in the bathroom. I am disappointed. I tell myself (out loud) that I have a "Niiiiiice cock." No one is amused but me. 9:41 I walk to the bathroom while drinking Bud Light out of a can. Needless to say, they do not sell beer at the Erwin Center, much less Bud Light out of a can. I am stopped by an usher: "Where did you get that, sir?" I tell him (no shit): "Oh, the cheerleaders were throwing them up with those little plastic footballs. Would you mind throwing this away for me?" I take the last swig and hand it to him. He is confused. I pretend I'm going to the bathroom, but I run away giggling instead. I duck into some entrance to avoid the usher, who is now pursuing me. I sneak into a large group of people and sit down. The usher walks by harmlessly. I am giggling like a little girl. I crack open another can of Bud Light. 9:52 I am lost. In my haste to avoid the usher, I have lost my bearings. I have no ticket stub. I cannot find my seats. Texas is losing. 10:09 Texas is being screwed by the refs. I am enraged. I have cleared out the seats around me because I keep removing my hat and beating the surrounding chairs with it. A concerned fan asks if I'm OK and perhaps I shouldn't take it so seriously. I tell him to fuck off. 10:15 After the fourth consecutive "worst fucking call I have EVER seen," I attempt to remove my hat again to begin beating inanimate objects. However, on this occasion I miscalculate and I thumbnail myself in my left eyelid, leaving a one-quarter inch gash over my eye. I am now bleeding into my left eye and all over my shirt. "Perhaps," I think to myself, "I'm taking this a bit seriously." 10:22 I am standing in the bathroom peeing. I'm so drunk I am swaying and grunting. I have a bloody napkin pressed on my left eye. My pants are bloody. I have my (formerly) white shirt wrapped around my waist. I look like I should be in an episode of Cops. 10:43 Texas has lost. I put my bloody white shirt back on my body and make my way for the exits. I am stopped every 20 seconds by a good samaritan/cop/security guard to ask me why I am covered in blood, but I merely grunt incoherently and keep moving. 10:59 With my one good eye, I have located the parking garage. I walk up six flights of stairs, promise that when I see my friend I will punch him in the face for making me walk up six flights of stairs, find the truck, and collapse in a heap in the bed of the truck. I look around and notice that traffic is lined up all the way around the garage, six whole flights, and no one is moving. I take a nap. 11:17 I awake from my nap. I see my friend in the driver's seat. I lift my head to look out the bed of the truck and notice that traffic is lined up all the way around the garage, six whole flights, and no one is moving. I am too tired to punch my friend. I call my friend a "Stupid fuck." 11:31 I lift my head to look out the bed of the truck and notice that traffic is lined up all the way around the garage, six whole flights, and no one is moving. I call my friend a "Stupid fuck." 11:38 I lift my head to look out the bed of the truck and notice that traffic is lined up all the way around the garage, six whole flights, and no one is moving. I call my friend a "Stupid fuck." 11:47 I lift my head to look out the bed of the truck and notice that traffic is lined up all the way around the garage, six whole flights, and no one is moving. I call my friend a "Stupid fuck." 11:58 I am jostled. The truck is moving. I lift my head to look out the bed of the truck and notice that traffic is beginning to move on the second floor. I jump out of the truck, walk to the edge of the parking facility, and pee off the sixth floor onto the street below. My friend looks at me like I just anally violated his minor sister. I turn around and pee on the front of his truck while singing the lyrics to "Neon Moon." 12:11 We are moving. We are out of beer. I jump from the truck and go from vehicle to vehicle until someone gives me two beers. I am happy. I return to my vehicle. 12:26 We have emerged from the parking facility. We make our way to my apartment and find Ed sitting on the couch with a freshly opened bottle of Glenlivet on the coffee table in front of him. We are all going to die tonight. 12:59 We have finished three-quarters of the bottle of Glenlivet. We decide it would be a wonderful idea to go dancing at PollyEsther's. Ed has to pee. He walks down the hall to our apartment and directly into the full length mirror at the end of the hall, smashing it into hundreds of pieces. We giggle uncontrollably and leave for PollyEsther's. 1:17 The PollyEsther's doorman laughs uncontrollably at our efforts to enter his club. "Fellas," he says in between his fits of spastic laughter, "I've been working this door for almost a year. I've been working doors in this town for almost 5 years. And I can honestly say that I ain't never seen three drunker mother fuckers than you three. Sorry, can't let you in." We attempt to reason with him. He laughs harder. 1:44 We find a bar that lets us in. We take two steps in the door and hear "Last call for alcohol!" I turn to the group and mutter: "See, dat wasn't that fuckin' hard. Day don't fuckin' do that at the Awamo...the awaom...the alab...fuck it, that stadium we was at today..." We order 6 shots of tequila and three beers. 2:15 Back on the street. We need food. We hail a cab to take us the two and one half blocks to Katz's. The cab fare is $1.60. We give him $10 and tell him to keep it. 2:17 There is a 20 minute wait. We give the hostess $50. We are seated immediately. 2:25 We order two orders of fried pickles, a Cobb salad, a bowl of soup, two orders of Blueberry blintzes, two Reuben sandwiches, a hamburger, two cheese stuffed potatoes, an order of fries, and an order of onion rings. 2:39 The food arrives. We are all asleep with our heads on the table. The waiter wakes us up. We eat every fucking bit of our food. Most of the restaurant patrons around us are disgusted. We don't give a shit. The tab is $112 with tip. 2:46 I'm sleepy. 9:12 I wake up next to a strange woman. She is the bartender at Katz's. She is not pretty.

Has anyone done/negotiated an ISDA with a Trust? Carol St. Clair EB 3889 713-853-3989 (Phone) 713-646-3393 (Fax) carol.st.clair@enron.com

Fred Lagrasta (Middle Market NYMEX) will begin getting a daily report begining today with all of his groups daily origination. As such, it is essential that all information is accurate on the origination schedule. Meaning : All entries must have: Book Deal # Date originated Customer Origination Group Origination Value Originator New information needed in this order: B/S Term Price Pub code Thanks for your help

Wanted to make sure that you knew that today FERC declared the cap that the ISO Board voted out last week "null and void," which means that we're back to the old $250 cap. FERC proposed a "soft" $150 cap that would take effect in 60 days, however. Call if you have questions. Best, Jeff

No problem. Kenneth Seaman 01/21/2000 10:02 AM To: Daren J Farmer/HOU/ECT@ECT cc: Subject: Off Duty My mother is going to pay us a visit 2/2 and 2/3. I would like to take those days off so I can protect my wife................. Thanks

Hi Darron, We could meet tomorrow - 9am; 10am or 1pm? Happy Thanksgiving week, Birgit. -----Original Message----- From: Darron.C.Giron@enron.com [mailto:Darron.C.Giron@enron.com] Sent: Monday, November 19, 2001 9:06 AM To: birgit@hiresynergy.com Subject: RE: Birgit's Contact Info: 713-222-7667 Birgit, Rather than respond to your questions, I would rather meet face to face. When are you available? Let me know. Thanks DG -----Original Message----- From: "Birgit D.Kamps" <birgit@hiresynergy.com>@ENRON Sent: Wednesday, November 14, 2001 9:37 AM To: Giron, Darron C. Subject: Birgit's Contact Info: 713-222-7667 Hi Daron, You sure have a big fan in Scott Crowell! I look forward to meeting you and being your "eyes and ears" in the market-place! Some of the positions I'm currently conducting searches for include a Risk Managers (85-100K+B); power-plant accountants (50-60K+B); Gas Schedulers (55-70K. To help me better understand your interests, please take a few minutes to answer the following questions, and/or email me a copy of your resume (which I will help you up-date) so I can match you to opportunities. 1) Key requirements in your next position. 2) Main areas of expertise/ years experience (n/a if resume attached) 3) Current and desired compensation 4) Key reasons you would consider leaving your current employer & your level of urgency in making a move: 5) Companies you want to avoid working for and/or already have your resume: 6) Companies you're interested in: 7) Main achievements in your career (or we can cover this if we meet; our offices are located downtown on 723 Main Street, suite 511 at the corner of Main/Rusk, in the Houston Bar Center Bldg): Please note that our team of 8 recruiters are Big 5 Alumni and CPAs specializing in Accounting (including Tax), Finance and Risk Management. I look forward to working with you in the near future and answering any questions you might have. You may reach me anytime at 713-222-7667, or we could schedule a time to talk in the evening. All our conversations will be completely confidential. Best wishes, Birgit D. Kamps HireSynergy, Inc. Partner/ Houston (713) 222-7667 phone (713) 222-7660 fax 723 Main Street, Suite 511 Houston, TX 77002 birgit@hiresynergy.com www.hiresynergy.com This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law. If you are not the intended recipient, you should delete this message and are hereby notified that any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited. ********************************************************************** This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. **********************************************************************

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

FYI ---------------------- Forwarded by Stella L Morris/HOU/ECT on 02/10/2000 02:25 PM --------------------------- From: Sherlyn Schumack 02/10/2000 02:21 PM To: Joanie H Ngo/HOU/ECT@ECT, Katherine Herrera/Corp/Enron@ENRON cc: Stella L Morris/HOU/ECT@ECT Subject: Sale to Shoreline Joanie, Logistics is waiting to hear from Daren on this issue. He will either need to extend the deal or maybe there should be another deal in place. This deal 155118 is valid on 1/26/00 only, but the rest of the volume you are looking for is scheduled on days 1/27 - 1/31. I am sure there is no pricing on those days. I will let you know as soon as I hear from them.

Everybody, Tanya suggested I ask all of you if you know anything related to a hotline call I took yesterday afternoon. I got a call from John Arnold who wanted to know who was working on getting an ISDA in place with a subsidiary of Citibank. He thought it was a hedge fund, he wasn't sure. He said that they were getting very impatient to start dealing with us. He left a contact for Citibank: Jerry Peskuchi (212) 723-7065, who wants to be updated on the status of the master. Sorry I didn't bring this up in the morning meeting, but please let me know if any of you know anything about this, because I had no idea who to direct his call to and could only promise to try and find the right person handling this and pass the info on.

Apparently this came yesterday but I didn't see it since it didn't come directly from David. Sorry about that. ----- Forwarded by Mark Taylor/HOU/ECT on 02/15/2001 11:05 AM ----- Mcintyrk@sullcrom.com 02/14/2001 01:12 PM To: Mark.taylor@enron.com cc: GILBERGD@sullcrom.com, KuzmikA@sullcrom.com, RAISLERK@sullcrom.com Subject: Enron - License and Services Agreement. Mark, I have attached our draft version of the Enron License and Services Agreement. As we discussed on our call, there are a number of issues which require clarification and which we have highlighted in the Agreement. There are a number of areas, in particular Service Support, were we have proposed possible approaches but we obviously do not know whether these suggestions will work for Enron or are consistent with the intention to run the service ( e.g., Service Levels in Schedule B.) If you have any comments or questions please email or call either myself at (212) 558-3491, David at (212) 558-4680 or Anna at (202) 956-7575. Regards, Kieran McIntyre ---------------------------------- This e-mail is sent by a law firm and contains information that may be privileged and confidential. If you are not the intended recipient, please delete the e-mail and notify us immediately. ---------------------------------- This e-mail is sent by a law firm and contains information that may be privileged and confidential. If you are not the intended recipient, please delete the e-mail and notify us immediately. - Enron - License and Services Agreement.doc

Sally, Attached below is a list of my accomplishments for the first half of 2000. I also printed a copy and left it on your chair in a confidential envelope. Let me know if you need anything more. Todd

fyi ds -----Original Message----- From: "David Bowers" <dbowers@duke-energy.com>@ENRON [mailto:IMCEANOTES-+22David+20Bowers+22+20+3Cdbowers+40duke-energy+2Ecom+3E+40ENRON@ENRON.com] Sent: Saturday, July 07, 2001 1:16 PM To: Schoolcraft, Darrell Subject: Re: Griffith Griffith Energy will be off line until approx. 18 July. Please share this with your staff. David A. Bowers Primesouth, Inc. www.griffithenergyproject.com

Lesli, Both deals have been rebooked. Susan To: Susan M Scott/HOU/ECT@ECT cc: Subject: Deal # nw8011 Please book to Cementos Apasco SA de CV. Thanks Lesli From: Lesli Campbell on 08/30/2000 01:20 PM To: Susan M Scott/HOU/ECT@ECT cc: Subject: Deal # nw8010 Please book to Arancia Corn Products. Thanks Lesli

Jean: I think the location i talked about before is actually better for you. The area towards the edge of the building borders the northeast gas group, long-term originators, and mid-market orig group. not exactly who you need to be around. the location in the center is much closer to the east gulf group, specifically sandra, and the same distance to the central and texas trading groups. most importantly, it provides room for both your group and the trading group to expand. call me if you want to talk further.... thanks for the article. john

Congrats!. Will get you involved. Jeff Cheryl Lipshutz 01/24/2001 05:44 PM To: Jeffrey A Shankman/HOU/ECT@ECT cc: Subject: My son's acceptance into Penn Jeff, I met with you in the fall & mentioned that my son had applied early acceptance to Penn for undergraduate. In the craze of year end closings, I neglected to let you know that he got accepted this past December. He is very excited & I am excited that the stress level in our house over college apps is over!!! In any event, I would like to take as active a role as possible on the Penn/Wharton recruiting team. Please let me know how I can help. Thanks!

why? -----Original Message----- From: Hennessy, Rita Sent: Friday, May 04, 2001 12:34 PM To: Rollins, Don; Schlemmer, Jack; Jolly, Kevin; Sullo, Sharon E.; Mata, Maribel; Barbour, Karen L.; Savala, Lea; Ospina, Felipe; Duran, Arleen; Bonney, Mark; Koskas, Ethel; Thordardottir, Steinunn; Brown, Kortney; Horton, Kenneth; Bellinghausen, Lynn; Gasdia, Sonya M.; Stafford, Clayton; Ledlow, James; Clifford, Marlene L.; Petersen, Randy; Gorte, David; Benke, Shelia; Reyes, Pauline; Lauer, Richard; Mcginnis, Stephanie; Landry, Shemeika S.; Larson, Bradford; Buy, Rick; Lowry, Donna; Smith, Shelli; Tribolet, Michael; Lewis, Barry; Lee, Kyu-Bong; Kose, Ahmet; Ibarra, Felipe; Schultz, Cassandra; Kilchrist, Shawn; Griffin, Sherri; Knightstep, Melissa C.; Shankle, Monique; Cangucu, Andre; Atwood, Mechelle Cc: Port, David; Naiser, Denise; Geraldo, Emy; Metoyer, Pam; Romero, Araceli; Heathman, Karen K.; Wackerle, Donna; Schultz, Cassandra Subject: Market Risk Training - Cancelled Importance: High This week's Market Risk Training has been cancelled. Thanks, Rita

Fine with me Andy Zipper@ENRON 08/29/2000 06:55 PM To: John Arnold/HOU/ECT@ECT cc: Subject: Re: commissions saved Fair enough, though for basis swaps and other non NYMEX stuff I thought the numbers were a little higher. We are going to use $7.50 per 10,000 unless you have objection.

WK # 713-853-6203 HOME#713-807-7507 PAGER#877-306-6979 <--- BEST way to get me!!!! CELL#281-381-7332 get Druuuuuuuunnnnkkkkkkkk! mc

Jim, No changes in the schedule. The meeting will take place, as scheduled, on the 6th of December at 9:00 a.m. We may have to cancel lunch with the professors as they have other commitments. The meeting will last about 2 hours. Vince

Sara, I just wanted to remind you that you had my comments to the above-referenced agreement and that I was not going to send comments out until you had reviewed them. Thanks, Jason

EOL Deals From: 10/1/2001 To: 10/08/2001 EnPower From: 10/1/2001 To: 10/08/2001 Desk Total Deals Total MWH Desk Total Deals Total MWH EPMI Long Term California 189 3,441,600 EPMI Long Term California 24 1,251,775 EPMI Long Term Northwest 104 1,426,400 EPMI Long Term Northwest 114 4,518,175 EPMI Long Term Southwest 148 2,635,300 EPMI Long Term Southwest 118 8,382,640 EPMI Short Term California 935 1,368,087 EPMI Short Term California 352 1,197,717 EPMI Short Term Northwest 508 488,900 EPMI Short Term Northwest 232 442,396 EPMI Short Term Southwest 645 1,034,149 EPMI Short Term Southwest 304 1,568,181 Real Time 462 11,975 Real Time 237 22,733 EES 32 7,600 Grand Total 3,023 10,414,011 Grand Total 1,381 17,383,617 EOL Deals From: 10/08/2001 To: 10/08/2001 EnPower From: 10/08/2001 To: 10/08/2001 Desk Total Deals Total MWH Desk Total Deals Total MWH EPMI Long Term California 19 230,800 EPMI Long Term California 0 0 EPMI Long Term Northwest 2 20,000 EPMI Long Term Northwest 3 872 EPMI Long Term Southwest 7 84,400 EPMI Long Term Southwest 5 46,207 EPMI Short Term California 127 170,642 EPMI Short Term California 36 46,941 EPMI Short Term Northwest 69 82,800 EPMI Short Term Northwest 29 74,929 EPMI Short Term Southwest 81 117,050 EPMI Short Term Southwest 52 132,987 Real Time 29 725 Real Time 23 3,618 EES 12 2,400 Grand Total 346 708,817 Grand Total 148 305,554 ICE Volumes From: 10/08/2001 To: 10/08/2001 Delivery Point Total MWH EPMI MWH Price Mid C (OP, Next Day) 600 200 $ 17.58 Mid C (P, Next Day) 2,000 800 $ 22.07 Mid C (P, Bal Month) 7,600 0 $ 22.75 Mid C (P, Nov-01) 10,000 0 $ 26.75 NP-15 (P, Bal Month) 22,800 7,600 $ 23.67 NP-15 (OP, Next Day) 600 0 $ 16.67 NP-15 (P, Next Day) 800 400 $ 22.85 NP-15 (OP, Nov-01) 600 0 $ 16.67 Palo (OP, Next Day) 400 0 $ 13.95 Palo (OP, Q1 02) 23,600 23,600 $ 21.50 SP-15 (OP, Next Day) 600 0 $ 14.57 Grand Total 69,600 32,600 $ 219.03