Datasets:

Dipe00

/

Urgency-tone-topic-on-enron_labeled_emails_with_subjects-llama2-7b_finetuning

like 0

Davis Energy Advisors Draw SEC Attention.htm

Scrutiny of Davis and crew is taking hold. The state controller Kathleen= Connell also has a well written op-ed critical of Davis in today's LA Ti= mes. =20 Kevin 213-926-2626 =20 [IMAGE]Los Angeles Times - latimes.com =09[IMAGE] [IMAGE]=09 [IMAGE] [IMAGE] =09Home | Subscribe | Register | Site Map | Ar= chives | Print Edition | Advertise | Feedback | Help [IMAGE]=09 Marketplace jobs * cars * homes * rentals [IMAGE] Arts and Enter= tainment Movies Music TV Dining print edition [IMAGE] Fro= nt Page Inside A California Business Sports So Cal Living Calendar = Editorials Op-Ed [IMAGE] [IMAGE] Weekly [IMAGE] Health Food Tech T= imes Highway 1 Workplace [IMAGE] [IMAGE] Sunday [IMAGE] Books Calen= dar Magazine Opinion Real Estate Travel TV Times [IMAGE] [IMAGE] [I= MAGE] [IMAGE] [IMAGE] The World [IMAGE] [IMAGE] [IMAGE] The Natio= n [IMAGE] [IMAGE] [IMAGE] California [IMAGE] [IMAGE] [IMAGE] Busi= ness [IMAGE] [IMAGE] [IMAGE] Politics [IMAGE] [IMAGE] [IMAGE] Spo= rts [IMAGE] [IMAGE] [IMAGE] Technology [IMAGE] [IMAGE] [IMAGE] Tr= avel [IMAGE] [IMAGE] [IMAGE] Editorials Op-Ed [IMAGE] Sections [I= MAGE] Books Columnists Education Food Health Highway 1 Obituaries = Real Estate Religion Science So. Cal. Living Sunday Opinion Tech Time= s Times Poll Workplace/Jobs [IMAGE] [IMAGE] Editions [IMAGE] Print E= dition National Wireless [IMAGE] Extras [IMAGE] Crossword Horoscop= e Lottery Traffic Weather Multimedia [IMAGE] [IMAGE] [IMAGE] Feat= ures [IMAGE] [IMAGE] [IMAGE] SITE MAP [IMAGE] [IMAGE] Subscripti= on Services Subscribe Change of Address Vacation Stops Suspend Delive= ry College Discount Gift Subscriptions Mail Subscriptions FAQ [IMAG= E] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Classifieds jobs homes cars re= ntals Print Ads Shopping Advertising Supplements [IMAGE] [IMAGE] LA= Times Initiatives [IMAGE] Times in Education Reading by 9 Times-Mirro= r Foundation Events [IMAGE] [IMAGE] =09[IMAGE]=09[IMAGE] July 31 2001= [IMAGE] Talk about it [IMAGE] E-mail story [IMAGE] Print THE STATE= Davis' Energy Advisors Draw SEC Attention *Probe: Under review is the pos= sible use of inside information to buy power company stocks. GOP rival of = governor requested the inquiry. [IMAGE] [IMAGE] Times Headline= s * Latinos Assured Water Is OK * Car Dealer Not Bound by Ad Error = Court Rules * Suspect in Simi Valley Serial Rapes Arrested * New LAPD= Radios Get Negative Reviews * 2 Shot to Death 1 at Home by Stray Bulle= t more > [IMAGE] [IMAGE] Subscribe By WALTER HAMILTON JEFFE= RY L. RABIN and DARYL KELLEY TIMES STAFF WRITERS The Securities and Exch= ange Commission has launched a preliminary inquiry into whether energy con= sultants advising Gov. Gray Davis used inside information to trade stocks = of power companies doing business with the state a source with knowledge = of the matter said Monday. The federal agency began its review late last = week the source said in response to a request from California Secretary = of State Bill Jones. A Republican rival of Davis Jones charged that stock= trading by consultants may have violated federal laws barring buying and = selling based on information not available to the public. On Friday top = aides to the governor disclosed that five consultants had been fired for = possible conflicts of interest between their official positions and their = personal finances. As news of the SEC inquiry spread through the capital M= onday Davis officials were confronted by a flurry of questions about who = in the administration owns energy stocks. Financial disclosure records fi= led by the governor's spokesman Steve Maviglio show that he owns between= $10000 and $100000 in a Texas company he and his boss have accused of m= aking obscene profits while California has been on its knees. Maviglio= said he bought the shares in Houston-based Enron Corp. in 1996. It's no= t a crime to own energy stock Maviglio said. He also owns 300 shares of= San Jose-based Calpine Corp. which has the largest share of the $43 bill= ion in long-term state power contracts. Maviglio placed the order for the= stock on May 31 one day after San Jose's mayor dropped his opposition to= a controversial Calpine plant favored by the governor and others. Under t= he terms of Maviglio's purchase the transaction was completed about three= weeks later when the stock reached $40 a share a value of $12000. It ha= s since fallen in value. I viewed it as a good long-term investment M= aviglio said adding that he purchased the shares for his retirement accou= nt based on publicly available information. The Davis administration has = spared Calpine the kind of fierce criticisms that it has leveled at other = electricity suppliers such as Enron. But California's grid operator has i= dentified the company as one of many energy merchants to overcharge the st= ate millions of dollars. The fired consultants also owned shares in Calpi= ne ranging in value from several thousand dollars to more than $100000 = records show. Another top Davis administration official legal affairs s= ecretary Barry Goode disclosed in his economic interest statement that he= recently held between $100000 and $1 million in another out-of-state com= pany accused of multimillion-dollar price gouging. In a statement Goode = said he sold his stock in Williams Co's. a month after he began working fo= r the governor in February. Goode said the shares were supposed to be sold= before he went on the state payroll but his broker failed to do so. In = light of the recent disclosures Secretary of State Jones said the governo= r must do more to ensure the public that its interest comes first. The g= overnor should direct all of his staff to immediately file updated conflic= t of interest statements that reflect current holdings and any activity si= nce their last statement of economic interest was filed said Jones who = is seeking the GOP nomination for governor. Word of the SEC's entry into = California's energy problems comes as the governor faces harsh criticism f= rom lawmakers and others for the quick and broad hiring of highly paid pri= vate consultants to guide him through the crisis. In his written request = to the SEC Jones said that recently filed disclosure documents showed tha= t at least one consultant bought and sold shares of two energy companies w= ithin the same month raising a red flag about the possibility of inside= r trading. State law prohibits officials from participating in decisions= involving their personal financial interests. The five consultants fired= last week were among 11 named in Jones' letter delivered to the San Fran= cisco office of the SEC last Wednesday. It was not clear which individuals= are the focus of the SEC's inquiry or whether the agency's review would = result in any charges. Two of the former traders said Monday that they ha= d not been contacted by federal investigators and knew nothing of an inqui= ry into possible insider trading. But William Mead fired Thursday said = it is no mystery why so many of his colleagues owned Calpine stock. Mead = said he bought it 2 1/2 years ago and made so much money he recommended it= to his colleagues last year while they all still worked for the now-defu= nct California Power Exchange in Alhambra. Calpine power was not traded on= that exchange so there was no conflict of interest he said. Mead and = three other energy traders--hired by the state in February and March--were= terminated by the Davis administration for allegedly buying power for the= state from Calpine while owning the company's stock. Fired traders Herman= Leung Peggy Cheng and Constantine Louie did not list the date of their C= alpine purchases on financial statements that the state required to be fil= ed only two weeks ago. But I'm sure they bought it while they were still= at the power exchange because that's when we discussed it Mead said. = It was kind of like a hobby. I'm sure it wasn't done with the intent to ma= nipulate. Former trader Elaine Griffin who also owned Calpine stock and= resigned two weeks ago to take another job said she didn't know she owne= d energy securities until she checked with her financial advisor July 13 = just before leaving her state job. Griffin said she and her husband own a= bout $10000 worth of Calpine stock in individual retirement accounts mana= ged by their advisor who bought the stock Feb. 1 without their knowledge= she said after research found it to be a good investment. I kind of fe= el like we've been used for political reasons Griffin said. We would ha= ve disclosed anything right at first but they never asked. As a trader= Griffin said she occasionally bought Calpine power for the state but on= ly at market prices. Meanwhile two Democratic political consultants who= helped Davis polish his image after the ongoing energy crisis caused his = poll numbers to plummet have agreed to accept no payment for their work a= s part of an out-of-court settlement of a taxpayer lawsuit. Tom Hiltachk= a lawyer for conservative anti-tax activist Lewis Uhler said the settlem= ent was reached last Friday after negotiations with lawyers for communicat= ions consultants Mark Fabiani and Chris Lehane. Now they will not receiv= e one red cent said Hiltachk. Very simply Mr. Fabiani and Mr. Lehane ha= ve agreed to cease all activities for the governor to accept no payments = for their services and to basically get out of the consulting business wit= h the governor. As his part of the agreement Hiltachk said Uhler with= drew his lawsuit Monday morning. Uhler had filed a lawsuit against the tw= o consultants and Controller Kathleen Connell in June contending that they= should not receive any payments because of a conflict of interest. The tw= o men also did consulting work for financially troubled Southern Californi= a Edison which was seeking help from Davis and the Legislature. Connell= a former Los Angeles mayoral candidate who has been at odds with Davis si= nce he endorsed an opponent had held up the payments pending the outcome = of the lawsuit. Under an agreement with Davis the men were to have been = paid $30000 a month for six months. Fabiani and Lehane could not be reac= hed for comment. * Times staff writers Nancy Vogel and Virginia Ellis i= n Sacramento and Robert J. Lopez in Los Angeles contributed to this story.= For information about reprinting this article go to http://www.lats.co= m/rights/register.htm =09[IMAGE]=09 a d v e r t i s i n g Subscribe NO= W and SAVE on your home delivery subscription! [IMAGE]Cool down rooms w= ithout touching the thermostat A floor lamp that spreads sunshine all = over a room Bring the power of the digital revolution to your fingert= ips Private DVD theater puts a floating 6-foot screen right before you= r eyes! It?s time to put all of your photos onto your computer NASA = research creates smart bed sleep surface [IMAGE] =09 =09[IMAGE] Copyright 2001 Los Angeles Times By visiting this site y= ou are agreeing to our Terms of Service . Powered by Genuity =09

government & politics

neutral

RE: ticket

Wincenty J Kaminski 10 Snowbird Place The Woodlands TX 77381 WT 472179 Wincenty Kaminski

other

neutral

RE: 1. London, June 28 - 29; 2. Houston, July 16 - 17

Ehud Sorry for the delay in replying to your message. I was on the road a lot. I am in London right now and plan to attend the conference. I am leaving on Saturday morning for Houston. I have asked Shirley to get tickets for one of the evening you mentioned. I should know by Thursday if the tickets are available. Vince

personal & social

casual

RE: London, New York, Houston, Financial Mathematics June/July 2001

Thanks The same to you. Vince

human resources

polite

RE: Sara Woody and Elena Chilkina

Anne For the time being it's fine. She will soon become an associate. Vince

human resources

casual

Enron Mentions

See last story attached. Congratulations it looks like you are shaking th= ings up in typical Enron fashion. -----------------

other

sarcasm

Re: FW: fact sheet- latest draft

I think it's a good document and carves out some solid policy ground for Bush. I think the electricity section needs some additions though. There is not a lot that the current administration can do about siting new plants and power lines -- its largely a state and local decision. Further the problem has been less about government failing to provide adequate incentives to utilities than it has been about a failure of the current commission to opening the grid on a nondiscriminatory basis. Once utilities are in the open access transmission business they will look for ways to invest in the grid and stop getting in the way of independent power producers who want to connect to the grid. The answer is open access so power can get from where it is to where it is needed. This has been clear for a long time yet the current administration (and its appointees on FERC) have yet to use their authority to make this happen. The result: spiking prices and reliability problems. Hunt Hunter L <HLHunt@georgewbush.com> 09/27/2000 11:25 AM To: 'skean@enron.com' <skean@enron.com> cc: Subject: FW: fact sheet- latest draft -

other

formal

Call to Bob Glynn

Per our discussion this morning below is a summary of items to discuss with Glynn: Adding Enron's negative CTC claim to the list of claims: PGE's filing included a list of top twenty creditors. Our negative CTC claim was apparently not taken into account in compiling that list. The list is nonbinding however. PG&E will be required to file schedules of creditors on April 20. Our negative CTC claim should be on Schedule F (for unsecured claims). You may want to remind Glynn of your previous conversations and state our expectation that the negative CTC claim will appear (preferably as uncontested) in the April 20 filing. (Note: if PG&E does not include the claim we have an opportunity to file a proof of claim and ultimately the court determines the validity of the claim). Including Enron on the Creditors' Committee: PG&E may have the opportunity to influence representation on the creditors' committees. There are several reasons to suggest to Glynn that we be included: 1) we are a big creditor 2) we could be helpful in crafting a broader solution and 3) we are one of the real parties in interest behind the PX and ISO (who were listed as significant creditors but are really just passthroughs for the suppliers ... and PG&E likely would not want to have those political bodies serving on the creditors committee anyway).

finance

formal

Lay, Palmer and isakoff

Palmer

other

casual

PRIVILEGED AND CONFIDENTIAL - Scott Jones Draft

Attached is the draft testimony of Scott Jones. Comments should be received no later than 3:00 PM EST on Sunday August 26. All comments and suggestions need to be in writing and can be faxed (not E-mailed) to Dan Watkiss at 202-857-2131. Also if your suggestion is a proposed addition please write out the exact language you would propose we incorporate into the testimony and where you would place the addition. Donald A. Kaplan Esq. Preston Gates Ellis & Rouvelas Meeds LLP Suite 500 1735 New York Avenue N.W. Washington D.C. 20006 Ph: (202) 662-8466 Fax: (202) 331-1024 donk@prestongates.com (See attached file: TFG SJones Draft 8-25-01.doc)(See attached file: Exhibit STJ-6.xls)(See attached file: Exhibit STJ-3.xls)(See attached file: Exhibit STJ-4.xls)(See attached file: Exhibit STJ-5.xls)(See attached file: Exhibit STJ-2.doc) CONFIDENTIALITY NOTE: This email message is intended solely for the individual or individuals named above. It may contain confidential attorney-client privileged information and/or attorney work product. If the reader of this message is not the intended recipient you are requested not to read copy or distribute it or any of the information it contains. Please delete it immediately and notify the sender by return email or by telephone. Thank you. <<TFG SJones Draft 8-25-01.doc>> <<Exhibit STJ-6.xls>> <<Exhibit STJ-3.xls>> <<Exhibit STJ-4.xls>> <<Exhibit STJ-5.xls>> <<Exhibit STJ-2.doc>> - TFG SJones Draft 8-25-01.doc - Exhibit STJ-6.xls - Exhibit STJ-3.xls - Exhibit STJ-4.xls - Exhibit STJ-5.xls - Exhibit STJ-2.doc

legal affairs

formal

Request for Confidential Information by the CPUC

other

neutral

Declined: Mtg w/Vince Kaminski

Eydie I shall be out on Monday July 9. What about the following Tuesday? Vince

meetings & events

casual

Confidential re: McConville--Indemnity

David As we discussed Mark Haedicke and I discussed the possibility of providing Kevin McConville with some sort of indemnity in order to make sure that he remains available and cooperative during the pendency of the NSM case and other litigation matters. We could agree to enter into a Consulting Services Agreement with Kevin. The terms of that Agreement would include: 1. He agrees to be available and cooperative with Enron and its counsel regarding litigation matters. He will agree to meet with counsel prepare for testimony review documents testify and provide other assistance as needed. 2. Through February 1 2001 Kevin would not be directly compensated for this cooperation/testimony (because he is to be receiving his salary pursuant to the terms of his employment agreement). After Feb.1 2001 he will be paid a rate of $125 per hour for his services in this regard. 3. Enron would agree to indemnify Kevin for his conduct taken in the ordinary course and scope of his employment with Enron up to the last date of his employment with Enron. Excluded from this indemnity would be allegations or claims based upon the following: -- any conduct that is outside the course and scope of Kevin's employment -- any conduct violating policies of Enron or ENA -- Kevin's intentional acts -- Kevin's gross negligence -- Kevin's reckless conduct -- conduct that is in violation of any law statute regulation or other legal obligation or -- the commission of an unlawful or illegal act. 4. Kevin would invoice Enron for time spent in performing the services after 2/1/01. The invoice would be paid within 30 days of receipt. In addition all related expenses would be reimbursed throughout the term of the agreement. Let me know if you have any questions or require additional information. I am available to participate in your call with him if you would like me to attend. Michelle

legal affairs

formal

Re: new contract

My copy shows long term comp on the exhibit under Grant Award. And yes the date will be revised. Mark Schroeder@ECT 04/14/2000 03:31 AM To: Steven J Kean/HOU/EES@EES Mark Frevert/LON/ECT@ECT cc: Subject: new contract The contract Mark gave me to review yesterday only covers monthly salary. I had expected there to be some discussion/reference to long-term comp plan. Mark had mentioned that what he gave me did not deal with certain non-compete payments owed to me in 2000 so I am not looking for that but I did think he had said that there was something in the doucment re:long-term which I cannot find. Please advise if I am missing something. I will withhold other comments for now except to note that the draft was dated 13 March and had a 14 day period before expiry (now passed) and will assume that that is an irrelevancy. Look forward to hearing from one of you. mcs

contract management

formal

Flatscreens approval

I approve.

other

formal

Re: Ken Lay/ Jeff Skilling visits

I spoke with Jeff and he is not going to be available for the speech on the 26th. Do we pass or is there an alternative? Can we get done what we need to get done with Ken's visit the following week? Nicholas O'Day 08/31/2000 06:01 AM To: Steven J Kean/NA/Enron@Enron Rosalee Fleming/Corp/Enron@ENRON cc: John Mark Schroeder/LON/ECT@ECT Joseph P Hirl/AP/ENRON@ENRON Mika Watanabe/AP/Enron Takashi Kimura/AP/Enron@Enron Subject: Ken Lay/ Jeff Skilling visits Ken Lay Visit. Following discussions with the Prime Minister's office and a quick check with venues 31 October is firming up as the preferred date for a meeting with the Prime Minister and an office opening by the PM. Jeff Skilling Visit. The Nikkei and the Tokyo University have now made the decision to invite Mr Skilling to give the key note address at the symposium on 26 November in Tokyo. As mentioned the symposium is the most prestigious conference on IT in Japan. While the conference itself receives significant media attention the President of Nikkei has offered to interview Mr Skilling. This honour is usually reserved for Heads of State. The interview will be featured on the front page of the Nikkei and picked up by other major media services. kind regards Nicholas O'Day 08/29/2000 07:43 PM To: Steven J Kean/HOU/EES@EES Rosalee Fleming/Corp/Enron@ENRON cc: John Mark Schroeder/LON/ECT@ECT Joseph P Hirl/AP/ENRON@ENRON Mika Watanabe/AP/Enron Takashi Kimura/AP/Enron Subject: Re: Ken Lay meeting with Japanese Prime Minister Ken Lay Visit. Balancing the need to push out the arrangement of high level meetings as far as possible with the desire to have a meeting with Prime Minister Mori prior to the US Presidential election the week commencing 30 October would be the optimum time for a visit by Mr Lay. PM Mori is generally available in that week. We will get a preferred time from the PM's chief secretary first thing tomorrow morning Tokyo time. Jeff Skilling Visit. The boards of Nikkei and Tokyo University Institute of Advanced Studies have yet to make a decision on the key note speaker for the one day invitation only seminar to be held on 26 October. As mentioned the boards will choose between the chairman of Cisco and Jeff Skilling. The conference is focused on the IT revolution and an invitation only event for approximately 600 of Japan's corporate leaders. The speaking panel and topics for discussion will be developed around the key note speaker. If Mr Skilling were to give the key note speech it is likely that key senior Government Ministers would be asked to present at the seminar. Following the Prime Minister's commitment at the Okinawa summit of US$15billion expenditure in the region on IT infrastructure and education Japan's focus on e-commerce is almost reaching fever pitch. There will be significant interest in the conference from senior levels of Government and the business community. Further as you would expect with the involvement of the Nikkei there is typically significant media coverage associated with the key note speaker's presentation. kind regards

other

formal

Re:

Please send Pam Benson the information for Joe on where to send the check who to make it out to etc -----------------

finance

formal

Oklahoma legislators will be in Houston this afternoon.

You speak at 3:00

other

formal

attached is a copy of my california testimony. The proceeding was somewhat productive but turned into a witch hunt at a couple of points. Our view on this is: the problem is fairly straightforward (demand increases and new supplies are inhibited so prices go up and shortages ensue ... sound familiar?) and the solutions are straightforward (site the power plants suppliers are begging to build let the utilities hedge outside the exchange and finish the job of opening the interstate grid so power can get from where it is to where it is needed). What it comes down to at this point is FERC is the only entity with the authority to start fixing this problem now: Congress isn't going to get anything done this year and the California legislature is (thankfully) out of session now. Our political leaders need to give FERC the room they need to act. Good luck on your speech and give me a call sometime.

other

confident

RE: PRC reviewers

Steve No problem. I shall spend Friday working on reviews. Vince

other

casual

RE; Luntz Focus Groups

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

marketing & promotion

neutral

Re: Andrew Lundquist

Your assessment makes perfect sense to me. What do you think about having Nels make the call to Lundquist just to find out what his status is what he might look for when his current assignment is over etc. (obviously without identifying us -- presumably Nels would have reason to talk to him anyway in the normal course of business)? I am not wedded to the idea but am inclined toward at least getting the information unless you see a problem. Linda Robertson 03/13/2001 02:16 PM To: Steven J Kean/NA/Enron@Enron Richard Shapiro/NA/Enron@Enron cc: Subject: Andrew Lundquist I got your message about Andrew. He would be an excellent catch. However I see a couple of significant problems. My guess is that Andrew is too senior for this position particularly after having chaired the Cheney task force. Also I would not anticipate that he would be available for several months if then. We should fill this position immediately. We are already missing opportunities because this position is vacant. As for our search using Korn Ferry I have narrowed the field to two very good candidates. I am setting up time for Rick to interview these candidates next Monday. The first candidate is Drew Maloney with Rep. Tom Delay's office. Drew would give us enormous visibility in House Republican leadership circles seems trustworthy and capable of learning most of the substance of the energy portfolio. Drew has strong networking skills which I think would nicely fit with Tom's strategic and technical skills. The second candidate is John Shelk whom I have known for nearly 15 years. John was the lead Republican staff on the House Energy and Commerce Committee under Norm Lent. John left the Committee in 1992. Since then John has worked in the financial services and gaming industries where he has enhanced his political and Republican networking skills. John in very short order would have extremely strong technical skills atlhough he has been away from the industry for eight years. I believe both candidates bring different but very strong talents to the job. I have a second opening for an enviromental advocate. I am discussing with Rick the possibility of whether we could redirect one of these candidates (probably John) to that slot. That said please let me know if I should have Nels pursue Andrew.

other

formal

Confidential & Proprietaty - Udated PanNat Value

Mark: Per my voice mail. Jeff

other

formal

Weekly Regulatory and Government Affairs Report

print first attachment only

energy infrastructure

formal

Re: Philippe

Yes Phillippe left to join a firm in New York -- I don't know who. Christopher Culberson <cmculbe@us.ibm.com> on 06/26/2001 02:42:53 PM To: skean@enron.com cc: Subject: Philippe Steven I hear Philippe is leaving for Putnam any truth to this? I've been unable to contact him directly. Thanks in advance. Best Regards Chris M. Culberson cmculbe@us.ibm.com (281) 556-8104

human resources

formal

Re: Western Governors update

Thanks for the update. The Western Governors remain the best avenue we have for preventing price caps and California's attempts to secede from the grid. We need to keep pushing information to them regarding these issues. Attached is some text I have been using for correspondence with policy makers regarding California issues. Feel free to use it. Susan M Landwehr 03/02/2001 05:09 PM To: Steven J Kean/NA/Enron@Enron John cc: Subject: Re: Western Governors update Gentlemen--FYI--here's an update on what we've been doing lately with the Governors. I'll include you guys on future e mails.

other

formal

Re: news/updates

I am attaching the FERC order and staff recommendations. The order provides for $69 million in potential refunds (either pay up or provide cost justification). Enron was not named as one of the 13 overcharging parties but PGE was ($3.18 million). It's not over yet though. The order deals only with Jan 01 and promises further orders regarding Dec 00 and benchmark prices through April 01. The prices used to determine refunds were fairly high ($273/mwh based on gas prices emissions costs and an assumed heat rate of over 16000). With respect to sales to California we have concluded at least one short term sale and have talked with Cal Dept of Water Resources about longer term deals but we were still struggling with credit issues last I heard. I'm copying Jeff Dasovich because I'm sure he has more up to date information. Mark Schroeder@ECT 03/11/2001 02:11 PM To: Richard Shapiro/NA/Enron@Enron Steven J Kean/NA/Enron@Enron cc: Subject: news/updates In the press I saw two news stories that I wondered if we (Enron) had any role/hand in and what was the offical spin in both cases. 1) The FERC Order requiring something like 55-65 million dollars in refunds by generators (or did it include traders) for overcharging in California in December if I recall my facts/news stories correctly and 2) the reports of 40 companies entering into 10-year contracts with California (touted by Davis). Was Enron a contracting party? Do we think this is a good solution (I think I know the answer but defer to your lead on this so we stay on your message)? thanks mcs

energy infrastructure

formal

Re: Security Assessment Report

I appreciate you pressing this issue. You should both be aware that Unocal(?) has been sued by the families of four employees who were shot in Pakistan a couple of years ago. Their claim is that the company did not provide adequate security and ignored official warnings of trouble in the region. To: Gabriel cc: David Frank Shawn Elaine Bill Donovan/EPSC/HOU/ECT@ECT Melinda Winkler@ECT Steven J Kean/HOU/EES@EES Subject: Re: Security Assessment Report Gabriel et al: Looks like the risks to Enron travelers to (and employees in) Colombia have increased. This is another indication that a 'travel policy' for travelers to Colombia should be in effect. What happened to the one we were discussing earlier? The steps outlined there would go a long way in improving the security of our travelers. Control Risks' report discusses responses to the media - be sure you have the approval of Enron's media people before making any response. The report also recommends suspending bidding on new projects - probably not viable advice but reinforces the importance that additional security measures be built into all new projects from day one. Now that our name is in front of the Colombian public we could see retaliation for various acts not all of which we have control over. Recent US Government actions such as extraditing criminals to the US for trial and training Colombian anti-drug troops have done little to endear American businesses to the Colombian public who see such actions as interfering with Colombia's right to govern themselves. These actions have significantly raised the risk of all American companies and their employees in Colombia. A meeting I had about two years ago with David Beddow of Control Risks in Bogota indicated that we could see some changes in the methods of attack in urban areas by FARC/ELN. With an elevated risk level we should begin thinking about these threats. FARC seldom uses the car bomb method of attack because it generates little interest among the domestic or international media. FARC plans on using letter bombs mailed to select targets i.e. head of an American-owned corporation who may have an office in Bogota. This method will generate headlines in the press and generate a fear of FARC among businessmen who may be targets. Control Risks' reported timetable for this change in FARC's tactics was to be three to five years but now that our risk is higher the timetable may well be moved up. On a related note - did you employ the security person we recommended? Please let me know how I can help you. Regards Mike Hicks Gabriel 12/05/99 08:15 PM To: David Frank Shawn cc: Michael Hicks@ECT Elaine Subject: Security Assessment Report FYI please find attached the Security Assessment Report carried out by Control Risk . Please let me have your feed back .GSS -----------------

energy infrastructure

concerned

Upcoming Advisory Council Meeting

I'm looking forward to your discussion regarding the reregulation threat at the next meeting. Below are some of my observations: While it's premature to say we have an energy crisis we are witnessing the triple threat of high summer gasoline prices spiking electricity prices and high natural gas prices for the upcoming heating season (I'll send along some of the data). There is at least the potential for this to become a prominent national political issue: Gore has focussed relentlessly on Bush's ties to big oil (which includes us by the way though we produce nary a drop) and Congressional republicans have blamed the current administration for failing to have a coherent energy policy (though at least so far the dominant characteristic of the administration's policy has been a republicanesque reliance on the market). Notwithstanding the issue's potential to become political fodder and its prominence in the popular press many Americans seem blissfully ignorant at least on the electricity issue. We did some focus group testing recently in Southern California -- a mere 15 minutes from the epicenter of the San Diego price quakes -- and most people knew nothing about it. So while the issue has the potential for political traction it may not have caught on yet (except in places like San Diego and New York city. The reaction in California has been to call for government intervention in electricity markets. Investigations of out of state price gougers and profiteers have been undertaken and wholesale and retail price caps have been put in place. They have not worked -- at least in wholesale markets. Suppliers are deciding to site plants elsewhere and when prices are high elsewhere in the West power flows out of California to those other markets. Ironically though I can't explain it in classical economic terms the setting of rate caps in wholesale markets has had the effect of pulling prices up to the capped levels in offpeak times when there is more than enough supply. For the most part though the caps and the other political reactions have been somewhat muted: policy makers have been reluctant to throw the deregulation plan out and start over and the retail price caps have been relatively narrow ... so far. Outside of California the authors of other states' deregulation plans have distinguished their proposals from California's. Regulators and legislators from such diverse places as Connecticut Texas and Alberta have gone out of their way to defend their plans and explain why California won't happen here. For the most part then the reaction to California has been positive from Enron's perspective in states that have already deregulated. There does remain some threat that aspects of the state plans (e.g. utility plant divestiture) may be postponed or cancelled. The story is a bit more grim in states that were considering deregulation but have not gone forward with their plans: I think it's off the agenda in most places. The fact that most of the major markets (about 70% of total electric revenue) are already deregulated/deregulating is a blessing in that regard. At the federal level there has been a combination of the burn the village in order to save it approach -- allow some price caps to remove the pressure to reverse the whole deregulation program -- and a more positive call for comprehensive reform. All in all I believe we're OK so far and we need to look at this as an opportunity: business is booming we sell protection from price volatility and the need for such protection is now plastered over the front pages of major newspapers. On the public policy front we need to convert the controversy into productive action. Our target has been FERC -- they are somewhat removed from the white hot rhetoric in California and they are a single commissioner's vote away from taking action to further open the market. Enron's response: Initially we hoped to feed information into industry groups and let them carry the message our concern was that Enron -- a company which was in and out of the residential market in Cal. -- would not make the most attractive champion for the open market message. We hoped that the new generators in Cal would take up the mantle. It's fair to say that they fumbled the ball: they are now locked in a pitched battle with the utilities over price caps and fall all to easily into the out of state profiteer label .... standing between Aunt Millie and rate relief. They were also extremely slow out of the blocks with a more productive message. We are now working the issue directly. We are working the issue on a number of levels: 1) PR - we have good contacts in the press and have talked to numerous reporters and editorial writers. As time goes on the information and reporting has gotten somewhat better. 2) Govt relations - we have been pushing for power plant siting legislation in California (the market wants to build capacity but the government won't let it). This may be the best environment we'll ever see for streamlining the permitting process. Also in typical Enron fashion we put a deal on the table. We offered to sell power to the local utility at a price which would enable them to lock in stable rates for their customers at below current rates. Our offer was followed by nine others and we tried to make something of the fact that the market was offering better solutions than California politicians. SDG&E dropped the ball unfortunately. Instead of seizing the opportunity they ended up going along with a government granted rate discount which will cause them to accrue a massive deferral account. At the federal level we are contacting members the DOE and FERC. Here we are making a push for FERC action to finish leveling the playing field in wholesale markets so power can get from where it is to where its needed. Additionally we are developing a prepackaged system (including software) for nondiscriminatory open access (to take away any lingering excuses or delays). 3) Overall messaging -- we have been working with a well known political pollster to check our messages for their resonance at the grassroots level. As we hone these messages we will be using them in the fora we are currently working. Overall we have more opportunity than risk in the current environment but capitalizing on those opportunities continues to be a long shot. An intersting rhetorical challenge for us is this: much of the problem in power markets is blamed on high upstream fuel prices particularly natural gas. The gas market is open and structured pretty much the way we are advocating for electricity so how can we maintain that the problem in power markets is an absence of open markets when the most open commodity market on the planet (natural gas) is producing such outsized prices? The answer is somewhat complicated and therefore a bit unsatisfactory in the current debate: gas prices are still lower in real terms than they were pre-deregulation long term prices are also lower than historical levels ( the curve is backwardated (sp?) meaning that prices in later years are lower than today so you can buy gas for 3 years at a price lower than current spot prices) and the economy is booming and driving up demand for basic inputs (this begs the question: why didn't the market react sooner and avoid the spike?). When all else fails a big part of the problem can be blamed on OPEC. We haven't had this thrown at us yet but we are trying to anticipate it and have answers at the ready. This is just the tip of the iceberg. The issue is a great example of the intersection of our business interests with public policy debates and should promote a lively discussion when we get together. Let me know if there is anything else you need.

other

formal

Tony Pryor (GPG legal) asked if we have any credentials/tickets left for die hard democrats in the company. I know Tony will understand if they are already spoken for but if we have some left that would go unused we have a volunteer. How's it going? Are you partied out yet?

personal & social

casual

Re: CONFIDENTIAL - Residential in CA

I like the idea particularly if we can time any decision to turn the customers back so it falls after the failure to get some action out of Sacto (instead of after our earnings release). The only problem I see is that we would need a decision from the top that we're not going to turn the customers back if we get direct access (so we can end the debate). I don't think it helps us if we get lucky get direct access back then make a decision to return customers to the utility. Karen Denne@ENRON 04/13/2001 10:30 AM To: James D Steffes/NA/Enron@Enron cc: Jeff Dasovich/NA/Enron@Enron Paul Kaufman/PDX/ECT@ECT Sandra McCubbin/NA/Enron@Enron Richard Shapiro/NA/Enron@Enron Janel Guerrero/Corp/Enron@Enron Mark Palmer/Corp/Enron@ENRON Susan J Mara/NA/Enron@ENRON Peggy Mahoney/HOU/EES@EES Harry Kingerski/NA/Enron@Enron Dan Leff/HOU/EES@EES Subject: Re: CONFIDENTIAL - Residential in CA Before any decision is made I think we really need to weigh in with EES on the ramifications (both PR and legislative) of turning back 16000 residential customers. I strongly believe that the public hit we will take will be far greater than our actual out-of-pocket losses. We will be crucified by the public media consumer groups legislators governor attorney general etc. and this action will reaffirm our reputation of packing up and leaving when it's not in our interest. The impact of this action would be exacerbated since it is on the heels of UC/CSU. I would also argue that this hurts our national dereg efforts. If we're advocating that competition and choice benefits consumers and then we turn around and pull out of a market and abandon customers when we're not profiting we'll kill any chances we have of ever serving retail customers in California -- or in any other state. We look foolish advocating for direct access when we're not willing to serve our existing -- let alone future customers What about a preemptive strike that engages these 16000 customers to weigh in on direct access -- i.e. a letter that says Enron may be forced to cancel its contract -- call/write/send the enclosed postcard to your legislator and tell them you want to keep your right to choose your energy service provider. Our credibility is on the line. Before we take this action we need to be cognizant of all the long-range strategic implications and we need to seriously weigh the negative impact this will have on our corporate reputation on our legislative abilities and on our commercial success going forward. kd James D Steffes 04/12/2001 09:05 PM To: Jeff Dasovich/NA/Enron@Enron Paul Kaufman/PDX/ECT@ECT Sandra McCubbin/NA/Enron@Enron Richard Shapiro/NA/Enron@Enron Janel Guerrero/Corp/Enron@Enron Mark Palmer/Corp/Enron@ENRON Karen Denne/Corp/Enron@ENRON Susan J Mara/NA/Enron Peggy Mahoney/HOU/EES@EES Harry Kingerski/NA/Enron@Enron cc: Dan Leff/HOU/EES@EES Subject: CONFIDENTIAL - Residential in CA In the meeting today no decision was made about what to do with Enron's 16000 residential customers. Each of the contracts gives a basic 30 day out right to Enron. That being said I think that we have a short window to push for DA before any public action impacts us in Sacramento. I realize that the ultimate action (which I think is inevitable) makes it harder for our advocacy on DA but real $ are flowing out of the company. EES will give us notice when a decision is reached. Thanks Jim

other

formal

Re: Astros

Yes please. From: Elizabeth Linnell on 05/16/2001 12:02 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: Astros I noticed that several groups within your overall organization charged tickets or our suite to their cost centers this month. I know of the business purpose for a couple but not all. Let me know if you're interested in this info and I'll get more data from Greg.

finance

formal

Request from Bob Frank

other

neutral

Enron Mentions

How important is this fight to us now (see attached article on ExIm)?

other

inquisitive

Re: USG overtures on Dabhol

Thanks for the update. From: John Hardy@ENRON_DEVELOPMENT on 05/10/2001 09:48 AM To: Rebecca McDonald/Enron@EnronXGate cc: Ben Glisan@ECT Steven J Kean/NA/Enron@Enron Rob Walls/ENRON@enronXgate Subject: USG overtures on Dabhol Rebecca At a meeting yesterday at OPIC on Trakya another of our problem projects Dabhol was raised. A representative from the White House transition team joined the conversation. I was asked the terms under which we were prepared to negotiate and I told them at a minimum upon a commitment by the Indian authorities to serious negotiations which would include full compliance with the terms of the contracts and progress in the reform of the MSEB. I made clear that we do not see the Godbole Committee as the basis for such a discussion. I think the USG wants to be on record politically encouraging the Indian Govt. to engage in discussions all parties consider to be meaningful in hopes of working things out before it is too late even while through OPIC and EXIM it is supporting the move towards PNT. The administration may be concerned that without such a diplomatic overture on its part it could be concluded that the USG has politically taken a position on the project. In Trakya for example the USG has been quite proactive in pressing the Turkish govt on the payments issue and even in discussing the payment concerns with the IMF so that the payments issues for the BOTs (two of the four in Turkey are US sponsored) are taken into account as the IMF program moves forward. So I anticipate that the USG will shortly be meeting with the Indian ambassador here and the US Charge in Delhiwill likely be directed to make the rounds and meet with senior government officals on the project. I wanted you to be aware of this also any guidance you can provide would be helpful. Thanks John

government & politics

formal

Re: Job Titles and Job Banding

Thanks for your message. I do think we need to talk this through. In the meantime though let's not make anymore VPs until this is resolved. As I said in my original message I am not looking to undo what has been done but to make sure we don't do it again unless the process is followed. I understand that there are significant title differences across the regions we operate. In fact one of the people in my organization who did not make VP is Dennis Vegas who has done an extraordinary job in Latin America. Notwithstanding his regional focus (and the significance of a VP title in his region) he was put through the company wide process and he David Haug and I submit everyone else on the Exec Comm understood that every new VP would go through the same process regardless of regional assignment (with the exception of certain joint venture companies). But I maintain that we need some consistency in the VP title in particular -- i.e. that it remain an Enron-wide title granted only through the PRC process. Though I don't personally feel this way for many people in the organization the VP title means something separate from the compensation structure it implies something like making partner in a legal or consulting firm. Making that cut should not vary based on where you live or what region you support. I also understand the point about needing a certain title for external purposes. In my organization we are dealing with very title-conscious elected officials and media. I can make the case for every one of my directors and senior directors that they would be more effective externally if they carried a more senior title regardless of any change in compensation. As an executive committee we elected to make such an exception only for legacy title holders -- i.e. people who had previously made VP outside the process. Everyone in my organization To: Cindy Olson@ENRON Steven J Kean@EES cc: Sanjay Subject: Job Titles and Job Banding From reading the e-mails on the issue regarding Regional Vice President at Enron India it sounds like there will be more discussion on this issue. I know that issues like this generally come up at the Enron ExCom level. There are a few issues that need to be kept in mind and although Cindy and I have discussed these in the past I have not had an opportunity to pursue them further (but would be happy to help out on this). I have noticed these not only in India but also in the other international settings where I have worked for Enron during the past several years. 1. International job titles and domestic job titles do not correlate. For example in India the title Director implies a very senior person within the organization (well above VP) whereas in the Enron domestic world it is a position below VP. Managing Director within Enron is below the most senior levels but in India a MD is the Ken Lay equivalent. For this reason I cannot use Managing Director in my title or on my business card although this is my title for Enron Houston purposes. 2. Job titles are much more important in an international setting than in a domestic setting. For example in Houston we have people at the director (and probably manager) level who lead deal teams and bring deals to successful closing. In an international setting particularly India to get to the decision-makers in your counterpart organization an officer title of VP or above is very often required. To a certain degree this is form over substance but that's what works over here. 3. To solve some of these problems Enron should consider doing what some other international companies have done (and I think Cindy and her team may already be working on this). A job banding study should be done and based on responsibilities everyone globally should be placed in a band. It would not be a title band of VP or director or manager but rather a band with a non-title classification. I hate to suggest a band with numbers such as 1 through 15 because that sounds way too much like the government but something like that would work. Once this is done communication is made to employees that the band is what is key in determining their compensation and level within the organization. Then the business units can rely on their particular market dynamics or on what their competition is doing to determine job titles. Thus if the Global Origination group needs to have a title of Senior Trader and EECC needs a title of Project Leader and Enron India needs a Regional Vice President all can be accomplished while keeping these same people at a consistent level for global Enron purposes. I will be happy to discuss this further with any of you. Plus I will volunteer to participate in finding a solution that works for all of Enron while taking into account the specifc business unit and/or global function needs. Wade

employment

formal

Re: Opinion Elite Survey

Have we made this available to the Cheney team? From: Mark Palmer on 04/25/2001 04:02 PM To: Richard Shapiro/NA/Enron@Enron Steven J Kean/NA/Enron@Enron Linda Robertson/NA/Enron@ENRON Karen Denne/Corp/Enron@ENRON Joe Hartsoe/Corp/Enron@ENRON cc: Subject: Opinion Elite Survey Here's the Opinion Elite file. It looks very strong for our open access argument. Suggest we update the WH. Any other uses? I have the verbatims and cross tabs. We'll send a sanitized version (although there's not much I wouldn't want everybody to see) to some of the interviewees who requested it. Mark

other

formal

RE: the summary report, I am sorry.

Thanks Vince

business document

polite

Nick Lampson called and asked for a contribution. I committed to one without knowing about his vote on PNTR. I will keep my word by making an individual contribution but will also communicate to him that in my capacity as Enron PAC chair i cannot authorize the PAC to make a contribution as a result of that vote. Sorry I jumped the gun.

government & politics

polite

<<Concur Expense Document>> - JS5/8/2001

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

finance

formal

California Power Crisis Update (No. 10)

We have been pulling together these weekly(sometimes more often) summaries for internal purposes. Would you find it helpful to be on the distribution list? Hope you are doing well. Look forward to touching base soon.

other

friendly

Re: BLM/Forest Service Right-of-Way Update

Preliminary congratulations!. Looks like a good plan. Keep me posted. Stephen D Burns@ENRON 07/19/2000 01:47 AM To: Richard Shapiro/HOU/EES@EES James D Steffes/HOU/EES@EES cc: Scott Bolton/Enron Communications@Enron Communications Joe Hillings/Corp/Enron@ENRON Chris Long/Corp/Enron@ENRON (bcc: Steven J Kean/HOU/EES) Subject: BLM/Forest Service Right-of-Way Update The Senate voted on the Interior Appropriations Bill late yesterday. Our amendment passed which prevents either BLM or the Forest Service from enacting new fiber optic federal lands rights-of-way policies. The BLM made a last ditch effort to defeat this in the Senate but we had reached key Senators and staff and they got nowhere. Action now moves to Conference which for us means a focus on the House Conference members. Scott and I will spend the next 2 days meeting with the key Republicans in the House. We've already recruited the important Democrats. Interior Approps Subcommittee Chairman Regula remains opposed at least publicly but we think we can get other Members to swing him. We trust he'll come up with a sensible face saving compromise on his own eg formally beginning a review process with his Subcommittee having oversight -- at this point our language literally forbids BLM or Forest Service from even meeting to discuss the issue. We continue though on several other fronts: 1. We have the New Dems writing OMB on the issue and several Senators and Congressmen writing BLM and USFS 2. We've increased the pressure on the White House and are letting them know through very senior back door channels that in our opinion BLM/Forest Service have not gotten the message. Our position is that we'll be satisfied that they've changed their evil ways when the new assessment on the Mt. Hood EBS build is retracted. 3. We're preparing both Senate and House authorizing Committees for the longer-term issue next session. We have no trouble finding champtions eager to own the issue 4. We're engaging the Western Caucus for same 5. Our adhoc coalition continues to grow in numbers and clout with over 20 companies and associations now actively engaged. Enron chairs this initiative with a tangible side benefit being much increased visibility and stature as a serious communications player. 6. Scott is successfully engaging state and local officials to weigh in from the end-user perspective BLM is on the retreat and has asked for a meeting which we've refused. We don't think they've given up though and it's likely an issue of pride at this point. So until the Approps process concludes we're continuing with the full court press. Steve

government & politics

confident

Hold for EES budget meeting.

You speak at 1:10 Central time.

finance

formal

Re: Merger on FERCs Agenda

Wow! Was this expected? Sarah Novosel@ENRON 07/19/2000 03:52 PM To: Fullenweider Keith <KFullenweider@velaw.com> cc: J Mark Metts/HOU/ECT@ECT Mitchell Taylor/Corp/Enron@ENRON Ann Ballard/Corp/Enron@ENRON Steven J Kean/HOU/EES@EES 'rshapir@enron.com' <rshapir@enron.com> Joe Hartsoe/Corp/Enron@ENRON Tim Belden/HOU/ECT@ECT Mary Hain/HOU/ECT@ECT Paul Kaufman/PDX/ECT@ECT Adam <awenner@velaw.com> jrutkows@llgm.com 'mmelnyk@llgm.com' <mmelnyk@llgm.com> 'sbehrend@llgm.com' <sbehrend@llgm.com> 'mike@tonkon.com' <mike@tonkon.com> JAY DUDLEY/ENRON Pamela Lesh/ENRON Subject: Merger on FERC's Agenda The Sierra/PGE merger is on FERC's agenda for FERC's July 26 meeting. Please call me if you have any questions. We'll keep you posted. Sarah Fullenweider Keith <KFullenweider@velaw.com> on 11/29/99 06:12:51 PM To: J Mark Metts/HOU/ECT@ECT Mitchell Taylor/Corp/Enron@ENRON Ann Ballard/Corp/Enron@ENRON Steven J Kean/HOU/EES@EES 'rshapir@enron.com' <rshapir@enron.com> Sarah Novosel/Corp/Enron@ENRON Joe Hartsoe/Corp/Enron@ENRON Tim Belden/HOU/ECT@ECT cc: Paul Kaufman/PDX/ECT@ECT McWilliams Douglas E. <dmcwilliams@velaw.com> Wenner Adam <awenner@velaw.com> Bruner Becky <bbruner@velaw.com> Decker John <jdecker@velaw.com> 'jrutkows@llgm.com' <jrutkows@llgm.com> 'mmelnyk@llgm.com' <mmelnyk@llgm.com> 'jklauber@llgm.com' <jklauber@llgm.com> 'sbehrend@llgm.com' <sbehrend@llgm.com> 'mike@tonkon.com' <mike@tonkon.com> Subject: FW: Granite Update Attached is an update memo from Paul Kaufman on state issues.

finance

formal

RE: ENE Officer Elections

No. We have reallocated some of the responsibilities but Cindy has a significant part of the HR organization and continues to manage Community Relations so her title is accurate. Thanks From: Kelly Johnson/ENRON@enronXgate on 07/19/2001 01:06 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: RE: ENE Officer Elections Thanks Steve. Do we need to change Cindy Olson's title? Let me know.

human resources

formal

RE: Technical Corner for today

Sam We can use a piece written by Rakesh on liquidity. I shall ask him to send it to you. Vince

other

formal

RE: Luntz Focus Groups (1 of 4)

We don't have revised versions yet. when we do we will probably only want to put some (not all) of the documents on the intranet. Gavin Dillingham@ENRON_DEVELOPMENT 08/24/2000 02:06 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: RE: Luntz Focus Groups (1 of 4) Have we received the newly revised principles facts and statements for the Luntz Focus Groups? I was hoping to place these on the California power issue database. Thanks Gavin -----------------

other

formal

Re: FW: Draft of Organizational Announcement

I'm not sure yet. I think we are going to be sending two memos -- one that I am working on and on that Andy is working on. It looks to me like the message below fits better into Andy's memo. I don't think they will be combined into one but I'll know more tomorrow. From: Sherri Sera/ENRON@enronXgate on 06/11/2001 04:51 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: FW: Draft of Organizational Announcement Steve Kevin Garland sent this to me hoping to get Jeff's approval to send it out from the office of the chairman. Would it make sense to incorporate it into the memo you're working on? Please advise. Thanks SRS

business document

formal

thank you

fyi

other

casual

Re: AGA

What have they done for us? Terence H Thorn@ENRON_DEVELOPMENT 10/03/2000 08:30 AM To: Steven J Kean/NA/Enron@Enron cc: Subject: AGA Steve I need your help. Twice in the last three months I have run into the Chairman of AGA who has taken my head off for Enron not renewing its AGA dues. I understand that the dues had been paid by Stan Horton who had decided that the pipeline group with INGAA representing it had no need for and received no benefit from the membership. I guess a few years back when AGA kicked the pipelines out they renegotiated the dues into some type of sub membership for around 85K. AGA approached the gas marketing team and talked to Mike Roberts about renewing the membership and maintaining relations with his customers and later to Jeff Shankman who passed them off to some other person and never got back to them as promised. This is a heads up to tell you that Bob Catell of Brooklyn Union fame- one of Enron's oldest customers and friends will be calling Lay. It seems to me that pro rating the dues among ENA and EGM and maybe GPG might be a solution. Anyhow I promised to pass on the complaint. Thanks.

other

casual

Re: Our Will

no objection Robert Kean <rkean@starband.net> on 04/30/2001 10:00:52 AM Please respond to <rkean@starband.net> To: Phil Kean \(E-mail\) <kean.philip@mcleodusa.net> Doug & Karen Reiman \(E-mail\) <dkreiman@mcleodusa.net> Kathy Wedig \(E-mail\) <kat.wedig@netzero.net> Steve & Melissa Kean \(E-mail\) <skean@enron.com> cc: Diane Kean \(E-mail 3\) <dkean@starband.net> Subject: Our Will Phil Karen Kathy Steve Diane and I are finally getting a will written. I would like to ask all of you if you have any objections to being named in the will as executors OR executing an Advanced Health Care Directive. An AHCD is document inwhich Diane and I will state what our wishes are regarding life support. I have attached a sample copy for review. If anyone objects please reply to me in the next 10-14 days. We will be meeting with the lawyer sometime around the 15th or 16th. Rob - Advance Health Care Directive.pdf

legal affairs

casual

Sandy Fain

Randy Rich in town

personal & social

casual

Re: DRAFT - AA PRC MEMO

Looks fine to me. I have not cross checked the lists but I assume you have included everyone who was designated to serve on the PRCs per the original memo (in addition to the new bus unit additions) Billy Lemmons 04/30/2001 06:41 PM To: Steven J Kean/NA/Enron@Enron John Sherriff/LON/ECT@ECT cc: Ted C Bland/Enron@EnronXGate Teresa Bosien/Enron@EnronXGate Subject: DRAFT - AA PRC MEMO Attached is a draft memo (including attachments) outlining the modifications we discussed last week. We can communicate changes by email or I'll be happy to arrange a short conference call. If possible I would like to distribute this by Wednesday or Thursday of this week. After the four of us reach consensus I suggest we preview Cindy (and maybe the HR heads) prior to distributing. You will note that based on conversations I had with Skilling last week (where he emphasized his desire that we have one program rather than a fractured program by business unit) I have added a review of the business unit distributions to the final meeting where we discuss the top perfomers. I've also added Janet Dietrich (tent.) and another EES person (tbd) to the AA Committee since they have a large group of AAs and no representation on the committee. Please let me know if you have any questions or comments and thanks for your help. Ted and Terry did all the hard work. Regards Billy Click Print Preview or print a hard copy - it's easier to read. We do not have the Europe groups included. Should probably include or note in the memo itself that info is forthcoming.

other

formal

Digital Power Demand: JP Morgan Report

Please post the JP MOrgan doc. on our site

other

formal

Town Hall Los Angeles

mo - calendar Rob - fyi upcoming speech -----------------

other

casual

RESUME

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

other

neutral

AW: Houston-Frankfurt

Another bit of background re Frankfurt (see below). I would be a little bi= t=20 more insistent on German Consulate support than Herr Sturm suggests=20 (otherwise this could become a black hole for your time). -----------------

personal & social

formal

Rice Team Mtg.

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

project-specific

casual

Confidential Contact data and RFI

Kevin I just got the attached e-mail returned with your new address. Let me know if this one makes it thru Fred Confidential Kevin I know you are quite busy but I wonder if you could get your lead trader to look the following forecast for NEEPOOL. This may result in you getting the lead for a large block of the power so be conservative but have enough in there so it is a win win if you know what I mean. Have him fill in what he can. The client will be looking long 10 year with maybe a series of 2 and 5 year deals. Should be putting out around 500 to 700 Mwe. Do not disclose the plant eh ? Call me at 864-370-0217 or 864-235-5607 or mobile 864-275-3193 Thanks Fred

other

casual

Regulatory Roundtable, in 49C2

PFI -- Clement TVA 2024672778 Christa Donahue Cong BURR NC 202 383 2260 Maya Weber Mcgraw Hill Martin Wenzel

legal affairs

formal

RE: INVITATION

Molly Thanks. I shall join you. I assume it's Ninfa's on West Dallas. Vince

personal & social

casual

RE: CONFIDENTIAL - Disclosure Schedules

Attached please find a draft of the financial schedules prepared by Enron Corp. Please call or email me if you have questions. Mike McGown <<Draft Financial Reps and Warranties>> - Summer financials sent to V&E 8_2_00.doc

finance

formal

I have opened a new Lotus file California - working group where I am keeping the contact information but I am assuming you have picked everybody up already. If in doubt check out the file. thanks

other

casual

Confidential - Job Description

FYI...I'll keep you informed. dave -----------------

other

casual

UC/CSU press release

fyi -----------------

other

casual

Re: Enrons PaineWebber Service

Thanks for getting on top of this. Please get the word out to the HR team leaders as soon as you know more. From: Aaron Brown/ENRON@enronXgate on 07/13/2001 11:36 AM To: Steven J Kean/NA/Enron@Enron Mary Joyce/ENRON@enronXgate cc: Subject: Enron's PaineWebber Service Rocky Emery the Dowd family Kim Bowden and another 15 or so employees of UBSPaineWebber (our stock tracking provider...options restricted stock etc) left yesterday evening without any warning. They went to 1st Union. I've set up a meeting at 2pm today for us to go over to UBSPW and make sure they understand the special needs of Enron and to make sure our service will not be affected. I am reviewing the contract in place between PW and Enron to understand the affects of this move by Emery and his staff on the agreement. Also I'm going to see about getting 2 providers of the stock tracking service from the following list: (in case this happens again we'll have a solid back-up immediately) UBSPaineWEbber (our current provider) 1st Union (where Rocky Emery went) Solomon Smith Barney (way ahead of the competition from a technology standpoint...and has done the two provider thing before) Prudential (another option with internal connections) let me know if you think I should include any others or would like to discuss. Thanks Aaron

human resources

urgent

Enron Expatriates in India

John Brindle David Cromley and others in the Corporate Business Controls group (formerly part of EBS) have been working over the last several weeks to make sure that we can get our people out of Dabhol if there are threats to their safety. While no plan is perfectly reliable (particularly during monsoon season) we believe that we are as ready as we can be. -----------------

safety & emergency

concerned

Re: Interview Request

Thanks for the referral. We definitely want to get our story out to these guys. Just for future reference Meredith Phillipp is handling New Media for us. Thanks Janel Guerrero@ENRON 07/19/2000 05:52 PM To: Steven J Kean/HOU/EES@EES Mark Palmer/Corp/Enron@ENRON cc: Subject: Interview Request Hi guys. My friend Polly Traylor is an editor at the Industry Standard in San Francisco. One of her colleagues -- Michelle Rafter -- sent me the email below requesting an interview for an Enron story she is working on. I have not spoken with this writer and am forwarding it to you for follow up. Hope all is well. Call me if you have any questions. -----------------

media & press

formal

Idea

If you think this is worth pursuing get in touch with Christie. -----------------

other

casual

PRIVILEGED & CONFIDENTIAL ATTORNEY-CLIENT COMMUNICATION

For you to add the wire instructions which are in my out box. Mark

legal affairs

formal

EFET paper on acceleration of energy liberalisation in the EU

Please forward to public affairs group. -----------------

other

formal

Re: Daily Update / Legislative Update - 8/23/00

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

other

formal

Expertfinder - The Power of Who

FYI - this email will go out to employees tonight. The Enron Corporate Policy Committee introduces Expertfinder. Expertfinder allows you to locate people within the Enron community by organization structure skills reporting relationships languages school attended and prior work experience. Expertfinder is a secured HR application that is available upon completion of your Certificate of Compliance. Expertfinder can be accessed on the Enron Intranet by typing the following URL at the Internet Explorer command line and Log In using the HRGIS Id provided below: https://hrglobal.enron.com Your HRGIS Id: Your Password: Date of Birth (Format YYYYMMDD) *Current users of the Global Launch Zone will maintain the same password. If you don't remember your password click on Forgot ID/Password below the Log In button. Should you have any questions regarding access or data issues in Expertfinder contact the HRGIM Line (HR Global Information Management) at 713-853-5666. Expertfinder is only as good as the data provided. Does your personal data need updating? Go to eHRonline.enron.com or (Eastern Hemisphere only) to update your data today. Or contact your HR Generalist for business unit related updates.

human resources

formal

Re: Job candidates for Enron

Thanks for the note. I am forwarding it on to our analyst and associate recruiting program leaders. We may have already filled the summer spots (we also cut down the number a bit this year to ensure a higher quality experience) but we will be out looking for a large number of permanent hires in the Fall. Severin Borenstein <borenste@Haas.Berkeley.EDU> 03/31/2001 06:00 PM To: Steve Kean <skean@enron.com> cc: James Bushnell <jimb@IEOR.Berkeley.EDU> Subject: Job candidates for Enron Dear Steve: Jim Bushnell and I are teaching a course called Energy Market Strategies and Policies this semester. The course is cross-listed between the Haas School of Business and the Energy & Resources Group at UC Berkeley. The syllabus for the course is attached. We have 43 graduate students in the course most pursuing a masters degree in business or energy & resources though there are also a few PhD students. These are very smart students -- many of whom already have experience in the energy industries -- and we believe the course puts them in a position to immediately contribute to any energy-related organization that they would join. Many of these students are interested in either summer or permanent employment starting as early as May. If Enron has openings that you would like to advertise to these students please send me the job description (or the URL for it)and I can forward it to the class list. Jim and I think this is a very strong class and many of the students are interested in making a career in either the business or the public policy side of the energy industry. We're hoping to provide the connections to help make sure they find the best job matches possible. Sincerely Severin Severin Borenstein E.T. Grether Professor of Business Administration and Public Policy Director Haas School of Business U.C. Energy Institute University of California 2539 Channing Way Berkeley CA 94720-1900 Berkeley CA 94720-5180 (p) 510-642-3689 (p) 510-642-5145 (f) 707-885-2508 http://www.ucei.org Email: borenste@haas.berkeley.edu WWW: - EnergyMarketsSyllabus.pdf

human resources

formal

Re: Proposed Ad for the Ontario Market

looks good. Rosie you may want to include this in ken's file for the toronto trip Eric Thode 03/16/2001 08:56 AM To: Steven J Kean/NA/Enron@Enron cc: Subject: Proposed Ad for the Ontario Market I sent this to Rick Shapiro and Mark Palmer as well. This is an ad created for use in the Ontario market and would include the logos of the signatory companies (rather than individual signatures).Aleck Dadson worked with GPC on its creation. It is part of the total plan which includes Ken Lay's visit to Toronto April 4 to meet with media and government leaders. Give me your thoughts. Eric -----------------

marketing & promotion

formal

BY MARK GOLDEN A DOW JONES NEWSWIRES COLUMN NEW YORK (DOW JONES)--THE CALIFORNIA SENATE IN SACRAMENTO PASSED A WINDFALL-PROFITS TAX ON SALES OF ELECTRICITY INTO THE STATE'S WHOLESALE ELECTRICITY MARKET MONDAY AFTERNOON AT 4:50 P.M. PDT. AT ALMOST EXACTLY THE SAME TIME CALIFORNIA INDEPENDENT SYSTEM OPERATOR INITIATED ROLLING BLACKOUTS FOR THE FIRST TIME SINCE MARCH. COINCIDENCE? PROBABLY BUT THE CONNECTION SHOULDN'T BE IGNORED. THE POLICY DECISIONS THAT HAVE BEEN ADOPTED IN CALIFORNIA TO DATE HAVE ACCELERATED AN ALREADY SERIOUS MARKET COLLAPSE SAID A HARVARD UNIVERSITY STUDY OF CALIFORNIA'S ENERGY CRISIS LATE LAST MONTH. THIS WEEK'S WINDFALL-PROFITS TAX BILL IS THE LATEST BLUNT INSTRUMENT WIELDED WITH POTENTIALLY DISASTROUS RESULTS. GOV. GRAY DAVIS WANTED IT AS A STICK WHEN (CONT) MEETING WITH EXECUTIVES FROM THE STATE'S MERCHANT POWER COMPANIES WEDNESDAY. THE MANEUVER WAS LESS THAN ADROIT AND THE GENERATORS WEREN'T IMPRESSED. AFTER THE MEETING WITH DAVIS RELIANT ENERGY'S (REI) JOHN STOUT SAID THAT IF THE TAX WERE IMPLEMENTED IN CALIFORNIA IT WOULD INSTANTLY BLACK OUT ALL THE GENERATION IN THE STATE. THE STATE'S LEADERS MIGHT KEEP IN MIND WHO WIELDS THE BIGGER STICK AT THIS POINT. CALIFORNIA SET UP A MARKET IN WHICH SELLERS HAVE BEEN ABLE TO CHARGE VERY HIGH PRICES FOR ELECTRICITY SINCE SUPPLIES STARTED GETTING TIGHT A YEAR AGO. SELLERS SAY THEY HAVE PLAYED BY THE RULES THEY WERE GIVEN AND NOBODY HAS PROVED OTHERWISE WITH THE ONE EXCEPTION OF A FINE PAID BY WILLIAMS COMPANIES (WMB) FOR ONE PARTICULAR INSTANCE OF VIOLATING A CONTRACT. IT'S LIKE SOMEBODY INVENTED A NEW GAME INVITED YOU OVER TO PLAY AND THEN CHANGED THE RULES A COUPLE OF TIMES IN THE MIDDLE OF THE GAME. THEN AFTER YOU BEAT THEM THEY INSIST YOU CHEATED SAID ONE WESTERN ENERGY TRADER. ALMOST EVERY ATTEMPT BY THE BUY SIDE - THE UTILITIES THE ISO AND NOW THE (CONT) STATE TREASURY - TO LOWER PRICES HAS RESULTED IN HIGHER PRICES OR BLACKOUTS OR BOTH. THE WINDFALL-PROFITS TAX IDEA IS THE MOST RECENT EXAMPLE BUT THOSE WHO INSIST ON PRICE CAPS SHOULD KEEP THIS IN MIND: THE ISO HAS HAD PRICE CAPS SINCE IT BEGAN OPERATION MORE THAN THREE YEARS AGO. OBVIOUSLY PRICE CAPS HAVEN'T WORKED JUST AS THEY HAVE NEVER WORKED EXCEPT DURING WARTIME. IN FACT PRICE CAPS HAVE BEEN A QUESTIONABLE MEDICINE PRESCRIBED FOR THE WRONG DISEASE. AT BEST PRICE CAPS MIGHT RESTRICT PRICE SPIKES. CALIFORNIA'S PROBLEM IS PERPETUAL HIGH PRICES. IT CAN'T AFFORD THE GOING RATE AT NIGHTTIME LET ALONE THE HIGHER MARKET PRICES DURING THE AFTERNOONS IN A HEATWAVE. CALIFORNIA MUST FIGURE OUT HOW TO PLAY BETTER THE GAME IT INVENTED. THE INSANELY COMPLICATED COMPUTER-BASED PURCHASING OF POWER ENDED A FEW MONTHS AGO AFTER THE CALIFORNIA POWER EXCHANGE WAS CLOSED DOWN BY FEDERAL REGULATORS AND THE ISO LOST ITS FINANCIAL ABILITY TO BUY POWER. THE MATCH BETWEEN THE PROGRAMS AND THE ENERGY TRADERS WASN'T EXACTLY IBM'S BIG BLUE VERSUS GARRY KASPAROV. ALMOST EVERYONE IN THE MARKET AGREES THAT THE UTILITIES' HUMAN TRADERS COULD (CONT) HAVE BOUGHT NEEDED POWER FOR BILLIONS OF DOLLARS LESS THAN THE PROGRAMS THAT THE UTILITIES WERE REQUIRED TO USE BY STATE LAW. SINCE THE DEMISE OF PROGRAMMED PURCHASING THE COMPUTERS HAVE BEEN REPLACED BY HUMANS BUT WITHOUT MUCH BETTER RESULTS. THE TEAM ASSEMBLED TO BUY TENS OF MILLIONS OF DOLLARS WORTH OF SPOT POWER EVERY DAY CONSISTS MOSTLY OF FORMER EMPLOYEES OF THE POWER EXCHANGE AND ISO AS WELL AS EXPENSIVE CONSULTANTS WITH NO ENERGY TRADING EXPERIENCE. ONE OF THE LEADERS OF THE TRADING TEAM FOR EXAMPLE IS A FORMER PUBLIC RELATIONS DIRECTOR FOR THE POWER EXCHANGE WITH NO TRADING EXPERIENCE PRIOR TO THE CURRENT JOB. AS ONE ISO EMPLOYEE WAS WONT TO SAY: IT'S LIKE WATCHING A FOOTBALL GAME BETWEEN NOTRE DAME AND ST. MARY'S SCHOOL FOR UNWED MOTHERS. AND THE SIGNING OF TENS OF BILLIONS OF DOLLARS OF FIVE- AND 10-YEAR CONTRACTS IS BEING EXECUTED MAINLY BY FORMER EXECUTIVES OF SOUTHERN CALIFORNIA EDISON - PEOPLE THAT LEFT THE UTILITY YEARS AGO TO BECOME CONSULTANTS AND ALSO DON'T HAVE TRADING EXPERIENCE. GOOD IDEAS MEANWHILE HAVE LANGUISHED. (CONT) WE ARE GOING TO INSTALL METERS IN EVERY MAJOR COMMERCIAL CONCERN IN THE STATE THIS SUMMER AND GO TO REAL-TIME PRICING DAVIS TOLD WALL STREET ANALYSTS ON FEB. 28. THAT PROPOSAL WAS GREETED BY MANY OBSERVERS AS THE MOST CONSTRUCTIVE IDEA FROM THE GOVERNOR'S OFFICE TO DATE. WHAT HAS HAPPENED TO REAL-TIME PRICING FOR CALIFORNIA'S BIG BUSINESSES SINCE THEN? NOTHING. THE PROBLEM IS THAT EVERYBODY IN CALIFORNIA IS 'SPECIAL' SAID STANFORD ECONOMIST AND CALIFORNIA ISO CONSULTANT FRANK WOLAK. EVERY INDUSTRY FROM OIL REFINERS TO INTERNET SERVER FARMS HAS HAD LOBBYISTS IN SACRAMENTO SUCCESSFULLY SECURING EXCEPTIONS TO THE RULE. MY POINT HAS BEEN THAT IF WHAT THEY DO IS SO VALUABLE THEN THEY SHOULD BE ABLE TO HANDLE THE HIGHER PRICES. BUSINESSES WITH ABOUT 10000 MEGAWATTS OF LOAD HAVE REAL-TIME METERS. EVERY ONE OF THEM SHOULD BE GETTING MARKET PRICES SAID WOLAK. (CONT) ONE OF THE GREATEST ADVANTAGES THAT SELLERS OF ELECTRICITY TO CALIFORNIA HAVE HAD IS THAT CONSUMERS HAVE FIXED PRICES SO DEMAND IS INFLEXIBLE. SELLERS KNOW EXACTLY HOW MUCH ELECTRICITY THE UTILITIES MUST BUY BASED ON TEMPERATURES AND THE TIME OF DAY WOLAK SAYS AND THEY SIMPLY SUPPLY THE MARKET JUST ENOUGH POWER AT HIGH MARGINAL PRICES. REDUCING OVERALL CONSUMPTION THROUGH HIGHER RATES WILL HELP THE STATE SOME BUT MAKING 25% OF DEMAND FLEXIBLE BASED ON PRICE WOULD GIVE THE STATE A FIGHTING CHANCE IN THE MARKET ACCORDING TO WOLAK. BUT THAT APPARENTLY IS TOO COMPLICATED OR POLITICALLY DIFFICULT. PRICE CAPS A WINDFALL-PROFITS TAX AND POLITICAL PATRONAGE JOBS FOR BUYING BILLIONS OF DOLLARS OF POWER MAY NOT SAVE THE STATE FROM BANKRUPTCY BUT THEY ARE EASIER TO SELL - OR SLIP THROUGH - IN SACRAMENTO. -BY MARK GOLDEN DOW JONES NEWSWIRES 201-938-4604 MARK.GOLDEN@DOWJONES.COM

other

informative

Re: FW: expertfinder - The Power of Who

I would'nt have it introduced by the corporate policy committee. I would say Enron is introducing or there is a new tool available to you. I am anxious to see how this goes over it's a great tool. From: Karen Moore/ENRON@enronXgate on 04/16/2001 05:34 PM To: Karen Denne/Corp/Enron@ENRON Steven J Kean/NA/Enron@Enron cc: Andrea Yowman/Corp/Enron@ENRON Subject: FW: expertfinder - The Power of Who Karen and Steve Could you take a quick peek at this and let me know if you have any thoughts or concerns? Thanks Karen

business document

casual

Re:

Palmisano left a couple of months ago to start his own business. Jeff Keeler (in our DC office) is covering John's issues. To: Steven J Kean/HOU/EES@EES cc: Subject: Thanks for the call this morning. The convention sounds interesting. On another note I was wondering is John Palmisano still works here? for you? I got a call from a conference organizer about an emissions meeting in Cologne Ger. and I think he has spoken at this gathering. I'll forward the email to you and to the emissions/coal group as well to determine our interest. Regards. Jeff

energy services

formal

Tax Review of California Assembly Bill No. 128

fyi -----------------

finance

casual

test

other

casual

EnronOnline Management Report for August 1, 2000

more detailed information -----------------

other

inquisitive

Camisea

fyi -----------------

other

casual

Re: EPMI protests AEPs continuation of MBRs

Isn't our primary problem with AEP's internal merchant function rather than with the marketing affiliate (I realize we have problems with the affiliate too)? Can we protest continued market based rate authority for AEP until they have surrendered native load priority? Christi L Nicolay@ECT 09/25/2000 09:16 AM To: David W Delainey/HOU/ECT@ECT Ben Jacoby/HOU/ECT@ECT Ozzie Pagan/HOU/ECT@ECT Janet R Dietrich/HOU/ECT@ECT Dennis Benevides/HOU/EES@EES Raymond Bowen/HOU/ECT@ECT cc: James D Steffes/HOU/EES@EES Richard Shapiro/HOU/EES@EES Joe Hartsoe/Corp/Enron@Enron Steven J Kean/NA/Enron@Enron Subject: EPMI protests AEP's continuation of MBRs On 9/21 EPMI filed a protest (Below) against AEP/CSW's 3 year update request to continue market based rates for power marketing. The filing includes examples of discriminatory behavior on OASIS (for ATCs etc.) that potentially benefitted AEP's marketing side. EPMI has already protested Entergy's request for continuation of MBRs earlier this year and plans to protest other large utility-based power marketer MBR filings this fall. Let me know if you would like the list. Thanks. -----------------

other

formal

Lous $50,000

Lou -- you may be maxed out on Franks now. Don't write a check for the August fundraiser until you have talked to Eliz Labanowski -----------------

finance

casual

Re: Interesting Idea for Enron?

Interesting idea but hard to see any near term benefit. I would decline. Amy Lee@ENRON 08/02/2000 09:30 PM To: Steven J Kean/HOU/EES@EES cc: Stacy Walker/Enron Communications@Enron Communications Subject: Interesting Idea for Enron? Steve - Cindy and I discussed this and we agree there is no interest to move forward from a Community Relations/HR standpoint. We wanted to pass this along to you to see if you had any interest. Thanks! amy -----------------

other

formal

Curve Validation

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

other

formal

Presidential Gala, May 22nd

Stay in touch with linda ro the recommendation. -----------------

personal & social

casual

Re:

Thanks. Look forward to seeing you. Sorry I left Jimmy off the note I know he must be doing a good job. John Ambler@ENRON_DEVELOPMENT 03/23/2001 10:11 AM To: Steven J Kean/NA/Enron@ENRON cc: Maureen McVicker/NA/Enron@Enron Subject: Re: Steve Thanks for sending this note to Wade. I'm certain that the NYT story is infinitely better because of Wade's involvement. It was a team effort but you should know that Jimmy Mogal also was very involved. Of course Wade wants to avoid damaging the company and your note helps to keep him up for these risky/must do requests. Along these line I'd like to be able to give you a brief update on activities and issues. I'll check with Maureen about scheduling 15-20 minutes. John From: Steven J Kean@ENRON on 03/20/2001 09:06 AM To: Wade cc: Johan John Subject: I just saw the NYT article. Nice job. It's nicely positioned as an issue about India's resolve to encourage foreign investment and live up to contracts.

business document

friendly

FYI. From today's Post. Davis seems to continue to put distance between himself and the contracts. Best Jeff Financial California Changes Stance on Refunds Two Sides Far Apart In Energy Talks Peter Behr 07/06/2001 The Washington Post FINAL Page E01 Copyright 2001 The Washington Post Co. All Rights Reserved California officials have abruptly shifted tactics in their attempt to recover billions of dollars in alleged overcharges for electricity saying they may reduce their demands for huge refunds if generators renegotiate $43 billion in long-term electricity contracts that the state signed this year. Gov. Gray Davis (D) said part of the $8.9 billion in refunds the state is seeking could be offset by reductions in energy prices in the long-term contracts whose costs have become a growing political embarrassment for Davis. We've made suggestions we've offered various ways in which people could get us $8.9 billion Davis told the San Jose Mercury News in a report yesterday. You can renegotiate our existing contracts and save us money. However you want to do it it's just got to net out close to $8.9 billion. The new offer was introduced this week into the closed negotiations over a California settlement being conducted in Washington by Federal Energy Regulatory Commission Judge Curtis L. Wagner Jr. according to sources close to the negotiations. Yesterday Wagner said he may issue his own preliminary finding today on the amount of overcharges if California officials and the generators cannot reach a compromise. What I'm trying to do is get people in a settlement mood Wagner told reporters. In the event we're unable to do that [Friday] at some point I may offer a preliminary assessment. The settlement conference is set to conclude on Monday. Wagner FERC's chief administrative judge has been trying to push both sides toward a compromise that would resolve the huge energy pricing controversy. Mountainous energy prices have bankrupted California 's largest utility drained billions of dollars out of the state treasury and put Davis at sword's point with generators that help keep the state's lights on. Last Friday Wagner rebuked Davis's chief representative Michael Kahn chairman of California Independent Grid Operator -- the state's power grid manager -- indicating that the state's demand for nearly $9 billion in refunds from power generators and marketers was too high sources said. Wagner's settlement conference which has involved more than 100 lawyers for all sides is closed to the public and media. Wagner complained last month that Kahn was following a political agenda and his lack of independence in the negotiations was such a joke that the parties might as well wear clown suits according to a Dow Jones report confirmed by sources close to the talks. But he has also criticized the generators and power marketers led by Reliant Energy Inc. Williams Energy Services Duke Energy and Southern Co. for failing to make serious settlement offers these sources said. The suppliers have offered to refund $600 million provided the state is able to call off various California lawsuits demanding far larger refunds sources said. Wagner's leverage is his ability to propose his own refund figure to FERC's commissioners. FERC has tentatively called for $124 million in refunds but now is taking a harder line on preventing a new escalation of California 's electricity prices this summer and is likely to be receptive to a higher refund figure some energy analysts believe. Davis's tactical change offering to make the long-term contracts part of an overall settlement comes amid growing criticism of what the state will have to pay for energy under those deals. California 's energy calamity stemmed in large part from its failed deregulation plan which relied heavily on short-term power purchases at volatile spot market prices. When energy costs shot upward last summer so did the state's electricity bills. In response Davis's aide S. David Freeman and his staff began negotiating long-term power contacts with suppliers. The $43 billion in deals signed so far would require the state to pay about $70 per hour for a megawatt of power for a large part of the electricity it will need over the next 10 years. That's well under the average of $250 per megawatt-hour that the state was paying at the beginning of this year but above current power prices -- and considerably higher than what electricity may cost in the next decade energy analysts say. A new agreement to lower those contract prices could relieve political pressure on Davis and focus settlement negotiations away from the state's controversial demand for the $8.9 billion refund. Davis will argue that reducing future power charges that his administration negotiated should count as a refund because the deals were reached under commercial duress according to sources close to Wagner's negotiations. Industry supporters say Davis's refund figure is impossible to justify. There's no benchmark for what a fair and reasonable price should be said Michael Zenger California director of Cambridge Energy Research Associates. The state's advocates counter that if FERC enforced a just and reasonable standard for power prices based on operating costs and a generous profit the overcharges by all sellers could easily reach the $9 billion figure. It's not rocket science but it does require the regulators to regulate said Frank Wolak a Stanford University economist who heads an oversight committee for the California grid. Those polar-opposite views have left both sides in Wagner's conference room billions of dollars apart as the talks approached their final weekend sources said.

other

informative

<<Concur Expense Document>> - RS050901

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

finance

formal

Confidential Information and Securities Trading

I couldn't open link. I s this something new for me to sign or have I already complied? -----------------

other

casual

Re: Gray Davis meeting

I think the meeting is on Wednesday but if you can be there (Sacremento I expect) you should. As I mentioned in my voicemail I think the meeting will not be particularly substantive more likely it is a photo op for the governor to show how tough he is on the pirate generators. Based on your message below should we still plan to send somebody? I still think we should if we can manage the legal risk. Mike: would you be able to attend as well? From: Richard B Sanders@ECT on 05/06/2001 10:45 AM To: Steven J Kean/NA/Enron@Enron cc: Subject: Gray Davis meeting As I indicated in my VM I will be in LA early Tues morning. Would you like to talk about the isuues before your meeting--or would you like me to go?

meetings & events

formal

Report On EPSA Legislative Affairs Committee Meeting

The EPSA leg. affairs cmt. met today during the fall meeting. The speakers were Howard Useem Republican counsel to the Senate Energy Committee and Jimmy Glotfelty senior policy advisory to the Secretary of Energy. Useem said Senate Energy Committee Republicans were meeting later this morning to finalize their energy proposal. (We later learned that they opted against including any electricity provisions not even the PURPA PUHCA and reliability issues that Howard thought might be included when he spoke before the senators met this is good news since it makes it less likely that anti-FERC provisions will be added.) (Howard said now is the best time to legislative on electricity because the Supreme Court has not yet acted on the bundling/unbundling issue.) On RTOs in some what of a surprise Useem said that there is general support among Senate Republicans for RTOs including consolidating them into a few RTOs of large scope (surprising since this is not what we have heard in meetings with individual Senate offices). While he said that he also said that support is stronger in the abstract than in specifics. He said the biggest opposition was coming from very vocal state regulators (EPSA staff did a good job of pointing to state regulators mainly in the Midwest who support larger RTOs). Most importantly Howard said none of the senators on his committee take a not over my dead body approach to RTOs. Jimmy Glotfelty explained to several EPSA members who asked questions just why it is that the Administration wants Congress to be silent on RTOs. He said while they would prefer a sentence or two affirming FERC's authority they do not believe this is what would come out of the legislative process. They are not willing to run that risk. He stressed that the president wants to include other electricity issues. He said they were very close to an agreement with Western governors on regional transmission siting. Jimmy further said that the Administration also wants silence on incentive rates another issue where FERC can act now. They continue to talk to Barton and his staff in an attempt to get them to back away from the restrictive approach to RTOs in the Barton discussion draft. (He said Pat Wood spent several hours with Barton and other House committee staff yesterday.) Of concern Jimmy said something like could be 4 RTOs could be 8 RTOs what is important is getting standard design. He also said DOE will make sure that PMAs are included in RTOs.

other

informative

Jim Noles Named CEO of Enron Wind

Congratulations! -----------------

other

celebratory

Enron Expatriates in India

John Brindle David Cromley and others in the Corporate Business Controls group (formerly part of EBS) have been working over the last several weeks to make sure that we can get our people out of Dabhol if there are threats to their safety. While no plan is perfectly reliable (particularly during monsoon season) we believe that we are as ready as we can be. -----------------

safety & emergency

concerned

Re: FW: Follow up -- Council of Energy Advisors

I doubt that this is worth the trouble (i.e. running it through a conflict of interest check ensuring no liability for actions taken on the advice etc). From: Sherri Sera/ENRON@enronXgate on 06/21/2001 10:13 AM To: Steven J Kean/NA/Enron@Enron cc: Joannie Williamson/ENRON@enronXgate Subject: FW: Follow up -- Council of Energy Advisors Steve we have no record of receiving the original invitation but is this anything you would recommend? Please advise. Thanks SRS

business document

critical

LEAK

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

other

urgent

AG letter - privileged and confidential: request for legal advice.

The letter looks good. A couple of comments for your consideration: On page three we describe the change to the definition of Public Utility an= d then argue that we don't fit into it. Would it be worth explaining why t= hat makes sense? Specifically the New Jersey restructuring law like most= efforts of its kind in other markets is designed to separate the competit= ive from monopoly elements of the power (and gas) businesses. Economic reg= ulation would then be restricted to the remaining monopoly elements of the = business (eg distribution). The competitive market can not be solely relie= d upon to regulate the behavior of monopoly asset owners such as distrib= ution utilities. Therefore regulators continue to be called upon to set p= ricing and other terms of service. What those regulators decide matters a = great deal to those monopoly utilities and it consequently makes sense for = lawmakers to be concerned about attempts by such entities to use campaign c= ontributions to tacitly influence decision makers. The same public policie= s simply do not apply to that portion of the market which is competitive. = The generation and sales business has a competitive structure (i.e. relativ= ely low barriers to entry multiple competitors etc.). These components of= the power and gas business can be regulated by the market with respect t= o rates and terms of service. They do not require economic regulation any = more than grocery stores department stores appliance sellers or other re= tailers (who presumably are not prohibited from making contributions. Com= petition and markets discipline behavior and establish competitive prices a= nd terms of service. Because regulators don't set the prices and terms of = service for such sellers there is no reason to be concerned about campaign= contribuitions from such organizations. Indeed the legislation and the = legislative history clearly conform to this underlying policy rationale. As a former practicing lawyer I certainly understand the value of pleading= in the alternative. But I question how certain of our arguments woud be = perceived by the public if they ever came to light (which these documents h= ave a habit of doing).. . I can just see the press seizing on Enron's clai= m of ignorance or mistake or the fact that we pled for the favorable exer= cise of prosecutorial discretion. I suggest that we add whatever we feel= is necessary to the very solid looking intent argument not make specific = reference to ignorance or mistake and not plead for the favorable esxerc= ise of PD. If we feel we need to write about this last item perhaps we co= uld suggest that it would be a waste of the public's resources to pursue a = claim under such circumstances.

legal affairs

formal

Re: pipeline aftermath

In case you had not heard Lou Pai has done some fundraising for Franks and both he and his(Lou's) sister know him fairly well. Keep it in mind if at some point we need to get in to see him. From: Jeffrey Keeler 08/23/2000 03:44 PM To: Clayton Seigle/HOU/ECT@ECT cc: Steven J Kean/NA/Enron@Enron Richard Shapiro/HOU/EES@EES Michael Terraso/OTS/Enron@ENRON David L Johnson/OTS/Enron@ENRON Shelley Corman/ET&S/Enron@ENRON Joe Hillings/Corp/Enron@ENRON Cynthia Sandherr/Corp/Enron@ENRON Allison Navin/Corp/Enron@ENRON Subject: Re: pipeline aftermath Clayton: Here are some preliminary answers to your questions (and I have copied GPG and Government Affairs folks as well to share this information): 1) I am currently assessing the situation regarding pipeline safety legislation. This week has been very quiet on Capitol Hill as all of the members are back in the states on August recess running for re-election and it is a big vacation week for staff...but here's what I am hearing: As you may or may not know we have been been very active this year trying to temper pipeline safety legislation that was fairly reactionary in the wake of last summer's liquid pipeline accident in Bellingham WA. SENATE: In June Senators John McCain (R-AZ) and Slade Gorton (R-WA) led the charge to pass a pipeline safety bill (S. 2438) out of the Senate Commerce Committee and that bill is awaiting floor action in the Senate. Because of the hasty way in which S. 2438 was drafted and passed there was a realization by both Republicans and Democrats in the Senate that the bill could not make it to the floor for a vote until some serious changes were made -- mostly things that were deal breakers for industry. Enron and El Paso were leading the charge and we had a number of Senators backing our efforts to negotiate changes including Majority Leader Trent Lott (R-MS) Kay Bailey Hutchison (R-TX) John Breaux (D-LA) and Sam Brownback (R-KS). From what I've learned since the accident these Senators are not changing their strategy and are still asking for the same improvements. Fortunately most of the changes we were looking to make were fairly technical and not the types of things that would be seriously compromised by the accident. Industy was already in the position of having to accept a number of things they never would have if not for he Bellingham incident...the El Paso incident just reinforces those. The biggest potential effect I see from the El Paso accident is an increased effort to pass something before the Congress adjourns in early October. The New Mexico Senators are already calling for a floor vote on the McCain/Gorton legislation and I there will certainly be greater pressure on leaders to wrap up negotiations get agreement from all sides on a bill and move it unanimously through a vote on the Senate floor. HOUSE: The House is moving a bit more slowly but again I'd expect the El Paso situation to expedite things somewhat. There were several bills introduced in the House that were not moving anywhere including an identical copy of the McCain legislation introduced by Rep. Bob Franks (R-NJ). Franks is now anxious to move legislation as he is running for Senate and would love to take credit for helping out on an issue of national visibility. Before the accident House Tranportation Committee leaders on both the Democrat and Republican side were working on a consensus bill that they could introduce in early September and move quickly through the Committee and to the House floor. I'm told that negotiations on that legislation are moving forward and a draft bill will be produced shortly. Unlike our experience in the Senate we have had significant input into the bill in advance and expect something that we can live with -- and something more reasonable than the McCain bill. With that said there may be an effort to expand the bill in a few areas because of the El Paso accident so we'll have to see what kind of hand we're dealt in the next few weeks. Overall I'd expect pipeline safety legislation to be given higher priority when Congress returns after Labor Day. In the absence of this accident I would have given it slim odds of passing in the few short weeks until adjournment with appropriations bills taking up most of Congress' precious time. Now there will be greater pressure to come to consensus and move bills through by an expedited process so that everyone running for election in November can show that they've done something about this terrible tragedy. With that said there's still not that much time to get legislation through so I'd say that there's still a chance it may not get done this year. If I had to attach a number to it I'd say that the El Paso accident improves the chances of legislation going all the way to probably 50-60%. 2) Gas supply to California: I'll have to do some more checking in this area and get back to you. All I've heard so far is that the safety questions that remain may slow the speed of restarting flow on the line notwithstanding that El Paso thinks it can have things running again fairly quickly. I'm sure the power crunch in California will put some counter-pressure on but I just don't have good intelligence on this yet. With all this said I'm on vacation this week and parts of next week finishing up some leave I've taken for the birth of our new baby daughter so I may not have an additional report for you until early to mid next week. If you have questions please respond by e-mail or leave a message on my voice mail at 202-466-9157. Regards Jeff Keeler From: Cynthia Sandherr 08/23/2000 09:48 AM Sent by: Allison Navin To: Clayton Seigle/HOU/ECT@ECT cc: Jeffrey Keeler/Corp/Enron@ENRON Cynthia Sandherr/Corp/Enron@ENRON Subject: Re: pipeline aftermath Jeff Keeler in our office handles pipeline safety issues and I am copying him on this e-mail so that he may reply to you directly. Also Cynthia is out of the office through the end of the week but will be reachable tomorrow and Friday. Thanks. Allison Clayton Seigle@ECT 08/22/2000 06:29 PM To: Cynthia Sandherr/Corp/Enron@ENRON cc: Subject: pipeline aftermath Hi Cynthia: The commercial officers here are very concerned with the El Paso pipeline explosion in New Mexico. We would love to get some input from your group on the following questions if possible: 1. What is the status of pipeline safety legislation on the Hill and what is the outlook for action between now and the end of the year? 2. What are people from California saying about the added pressure on gas supplies and what are people from New Mexico saying about restarting the flow of gas while safety questions remain? These questions come straight from the top and any information you could provide would be very helpful. Please write me back or call and let me know if/when you think we might be able to get some initial answers. Thanks very much! Clay

other

formal

I love you. Call me.

personal & social

casual