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86–406 PDF 2003

S. Hrg. 107–854

ASLEEP AT THE SWITCH: FERC’S OVERSIGHT

OF ENRON CORPORATION—VOL. IV

HEARING

BEFORE THE

COMMITTEE ON 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE

ONE HUNDRED SEVENTH CONGRESS

SECOND SESSION

NOVEMBER 12, 2002

Printed for the use of the Committee on Governmental Affairs

(

(II)

COMMITTEE ON GOVERNMENTAL AFFAIRS 

JOSEPH I. LIEBERMAN, Connecticut, Chairman 

CARL LEVIN, Michigan 

DANIEL K. AKAKA, Hawaii 

RICHARD J. DURBIN, Illinois 

ROBERT G. TORRICELLI, New Jersey 

MAX CLELAND, Georgia 

THOMAS R. CARPER, Delaware 

JEAN CARNAHAN, Missouri 

MARK DAYTON, Minnesota 

FRED THOMPSON, Tennessee 

TED STEVENS, Alaska 

SUSAN M. COLLINS, Maine 

GEORGE V. VOINOVICH, Ohio 

THAD COCHRAN, Mississippi 

ROBERT F. BENNETT, Utah 

JIM BUNNING, Kentucky 

PETER G. FITZGERALD, Illinois 

JOYCE A. RECHTSCHAFFEN, Staff Director and Counsel 

BETH M. GROSSMAN, Counsel 

DAVID M. BERICK, Professional Staff Member 

PATRICK J. HART, Professional Staff Member 

JASON M. YANUSSI, Professional Staff Member 

RICHARD A. HERTLING, Minority Staff Director 

GARY M. BROWN, Special Counsel to the Minority 

DARLA D. CASSELL, Chief Clerk 

(III)

C O N T E N T S 

Opening statements: Page 

Senator Lieberman ........................................................................................... 1

Senator Thompson ............................................................................................ 5

Senator Levin .................................................................................................... 49

Senator Collins ................................................................................................. 54

Prepared statement: 

Senator Bunning ............................................................................................... 73

WITNESSES 

TUESDAY, NOVEMBER 12, 2002

David M. Berick, Professional Staff Member, Committee on Governmental 

Affairs, U.S. Senate ............................................................................................. 9

Hon. Patrick H. Wood, III, Chairman, Federal Energy Regulatory Commission ........................................................................................................................ 33

Hon. Linda K. Breathitt, Member, Federal Energy Regulatory Commission ..... 35

Hon. Nora M. Brownell, Member, Federal Energy Regulatory Commission ...... 36

Hon. William L. Massey, Member, Federal Energy Regulatory Commission ..... 37

Paul L. Joskow, Ph.D., Director, Center for Energy and Environmental Policy 

Research, Massachusetts Institute of Technology (MIT) .................................. 60

Frank A. Wolak, Ph.D., Department of Economics, Stanford University ........... 62

ALPHABETICAL LIST OF WITNESSES

Berick, David M.: 

Testimony .......................................................................................................... 9

Prepared statement .......................................................................................... 74

Supplemental statement .................................................................................. 93

Breathitt, Hon. Linda K.: 

Testimony .......................................................................................................... 35

Brownell, Hon. Nora M.: 

Testimony .......................................................................................................... 36

Joskow, Paul L., Ph.D.: 

Testimony .......................................................................................................... 60

Prepared statement .......................................................................................... 146

Massey, Hon. William L.: 

Testimony .......................................................................................................... 37

Wolak, Frank A., Ph.D.: 

Testimony .......................................................................................................... 62

Prepared statement .......................................................................................... 159

Wood, Hon. Patrick H., III: 

Testimony .......................................................................................................... 33

Prepared statement with an attachment ....................................................... 130

APPENDIX 

Responses to Post-Hearing Questions from: 

The Hon. Patrick H. Wood, III ........................................................................ 177

The Hon. Linda K. Breathitt ........................................................................... 202

The Hon. Nora M. Brownell ............................................................................ 209

The Hon. William L. Massey ........................................................................... 212

(IV)

APPENDIX 

Volume I 

Materials Submitted for the Record by Chairman Lieberman 

A. Majority Staff Memorandum on Committee Staff Investigation of the Federal Energy Regulatory Commission’s Oversight of Enron Corp., November 

12, 2002 ............................................................................................................... 220

Supporting Documents (footnote numbers indicate footnote in Majority 

Staff Memorandum where document was first referenced)

1. ‘‘Enron Federal Government Affairs-Outlook & Goals for 1999’’ (Enron 

document) (footnote 11) .................................................................................... 271

2. ‘‘Overview of Key Energy Policy Issues,’’ (Enron document) (footnote 11) .. 277

3. ‘‘Government Affairs Directory’’ (Enron document) (footnote 12) ................. 285

4. ‘‘Government Affairs,’’ November 2001 (Enron document) (footnote 12) ..... 294

5. Complaint, SEC v. Kopper, August 21, 2002 (footnote 22) ........................... 303

6. Information, United States v. Kopper, August 20, 2002 (footnote 22) .......... 309

7. Complaint, SEC v. Fastow, October 2, 2002 (footnote 22) ............................ 326

8. Indictment, United States v. Fastow, October 31, 2002 (footnote 22) .......... 342

9. Minutes, Enron Finance Committee Meeting, May 5, 1997 (excerpted) 

(footnote 24) ....................................................................................................... 374

10. ‘‘Project Storm: Draft Report,’’ July 6, 2001 (prepared by PriceWaterhouseCoopers) (excerpted) (footnote 27) .......................................................... 387

11. Zond Windsystems Holding Company, FERC Docket No. QF87–365 .......... 529

a. Request for Recertification of Qualifying Facility Status for Small 

Power Production Facility, May 14, 1997 (footnote 29) ............................ 530

b. Order Granting Application for Recertification as a Qualifying Small 

Power Production Facility, June 30, 1997 (footnote 30) ........................... 549

c. Notice of Self-Recertification of Qualifying Facility Status for Small 

Power Production Facility, August 3, 2000 (footnote 32) ......................... 555

12. Sky River Partnership, FERC Docket No. QF91–59 ...................................... 564

a. Request for Recertification of Qualifying Facility Status for Small 

Power Production Facility, May 14, 1997 (footnote 29) ............................ 565

b. Order Granting Application for Recertification as a Qualifying Small 

Power Production Facility, June 30, 1997 (footnote 30) ........................... 588

c. Notice of Self-Recertification of Qualifying Facility Status for Small 

Power Production Facility, August 3, 2000 (footnote 32) ......................... 593

13. Victory Garden Phase IV Partnership, FERC Docket No. QF90–43 ............. 605

a. Request for Recertification of Qualifying Facility Status for Small 

Power Production Facility, May 14, 1997 (footnote 29) ............................ 605

b. Order Granting Application for Recertification as a Qualifying Small 

Power Production Facility, June 30, 1997 (footnote 30) ........................... 626

c. Notice of Self-Recertification of Qualifying Facility Status for Small 

Power Production Facility, August 3, 2000 (footnote 32) ......................... 631

Page

V

14. Cabazon Power Partners LLC (Zond Cabazon Development Corp.), FERC 

Docket No. QF95–186 ....................................................................................... 641

a. Notice of Self-Recertification of Qualifying Facility Status for Small 

Power Production Facility, November 30, 1998 (footnote 46) .................. 642

b. Notice of Self-Recertification of Qualifying Facility Status for Small 

Power Production Facility, January 7, 1999 (footnote 48) ....................... 649

c. Notice of Self-Recertification of Qualifying Facility Status for Small 

Power Production Facility, January 8, 1999 (footnote 47) ....................... 656

d. Notice of Self-Recertification of Qualifying Facility Status for Small 

Power Production Facility, January 24, 2001 (footnote 32) ..................... 664

15. Notice of Self-Recertification of Qualifying Facility Status for Small 

Power Production Facility, Victory Garden Power Partners I LLC, FERC 

Docket No. QF99–92–001, January 24, 2001 (footnote 32) ........................... 672

16. Enron Corporation Form U–1, Application under the Public Utility Holding Company Act of 1935, April 14, 2000 (footnote 35) ................................. 690

17. Letter from Joanne C. Rutkowski (LeBoeuf, Lamb, Greene & MacRae) 

to Catherine A. Fisher (SEC), April 13, 2000 (footnote 39) .......................... 699

18. ‘‘Alternative PUHCA Exemption for QF Relief, SEC Staff Presentation,’’ 

July 27, 2001 (Enron document) (footnote 39) ............................................... 702

19. Order Scheduling Hearing, Applications of Enron Corp. for Exemption 

Under the Public Utility Holding Company Act of 1935, SEC Administrative Proceeding File No. 3–10909. October 7, 2002 (footnote 40) ................. 715

20. a. Motion to Intervene and Opposition of Southern California Edison 

Company, Enron Corp., SEC File No. 070–09661, March 26, 2002 

(footnote 42) .................................................................................................. 721

b. Motion to Intervene of Southern California Edison Company, In re 

Victory Garden Power Partners I, LLC (FERC Docket No. QF99–92, 

ZWHC LLC (FERC Docket No. QF87–365), Victory Garden Phase IV 

Partnership (FERC Docket No. QF90–43), Sky River Partnership 

(FERC Docket No. QF91–59), and Cabazon Power Partners LLC (Docket No. QF95–186), filed April 3, 2002 (footnote 42) .................................. 737

21. Letter from Magalie R. Salas (FERC) to James B. Woodruff (Southern 

California Edison Company), May 28, 2002 (footnote 43) ............................. 773

22. Order Initiating Investigation and Hearing, Investigation of Certain 

Enron-Affiliated QF’s, FERC Docket No. EL03–17–000, October 24, 2002 

(footnote 44) ....................................................................................................... 774

23. E-mail from Susan Kappelman (Southern California Edison Co.) to David 

Berick (Professional Staff Member, Committee on Governmental Affairs), 

September 6, 2002 (footnote 45) ...................................................................... 782

24. E-mail from Karen Berky (The Nature Conservancy) to David Berick 

(Professional Staff Member, Committee on Governmental Affairs), September 30, 2002 (footnote 49) .......................................................................... 784

25. Assignment Agreement between Zond Cabazon Development Corp. and 

The Nature Conservancy, November 18, 1998 (footnote 50) ......................... 785

26. Order Denying Applications for Recertification as Qualifying Facilities, 

Coso Energy Developers, et al., December 16, 1998 (footnote 52) ................. 790

27. Letter to Laurel Mayer (The Nature Conservancy) from John Lamb 

(Cabazon Power Partners LLC), January 11, 1999 (footnote 53) ................. 807

28. ‘‘Report on EnronOnline,’’ August 16, 2001 (FERC Staff Report) (footnote 

54) ...................................................................................................................... 808

29. Letter from Joseph I. Lieberman to the Honorable Pat Wood, III, May 

14, 2002 (footnote 55) ....................................................................................... 829

30. Letter from Pat Wood, III to the Honorable Joseph I. Lieberman, May 

28, 2002 (footnote 55) ....................................................................................... 836

31. ‘‘Credit Quality for U.S. Utilities Continues Negative Trend in Second 

Quarter,’’ Standard & Poor’s, July 12, 2002 (footnote 56) ............................. 844

Page

VI

Volume II 

32. ‘‘Initial Report on Company-Specific Separate Proceedings and Generic 

Reevaluations; Published Natural Gas Price Data; and Enron Trading 

Strategies: Fact-Finding Investigation of Potential Manipulation of Electric and Natural Gas Prices,’’ (FERC Staff Report), August 2002 (footnote 

58) ...................................................................................................................... 1

33. a. ‘‘Williams Traders Gave False Data,’’ Wall Street Journal, October 

28, 2002 (footnote 64) ................................................................................. 124

b. ‘‘AEP Dismisses Five for Providing Inaccurate Market Data for Indexes,’’ AEP Press Release, October 9, 2002 (footnote 64) ..................... 125

c. ‘‘Dynegy Dismisses Six Employees, Will Discipline Seven Others for 

Violations of Company Policies,’’ Dynegy Press Release, October 18, 

2002 (footnote 64) ....................................................................................... 126

d. ‘‘Williams Discloses Natural Gas Trade Reporting Inaccuracies,’’ Williams Press Release, October 25, 2002 (footnote 64) ............................... 127

34. Letter from Pat Wood, III to the Honorable Joseph I. Lieberman, March 

4, 2002 (footnote 66) ......................................................................................... 128

35. Letter from Pat Wood, III to the Honorable Joseph I. Lieberman, April 

12, 2002 (footnote 66) ....................................................................................... 132

36. Order Establishing Evidentiary Hearing Procedures, Granting Rehearing 

in Part, and Denying Rehearing in Part, San Diego Gas & Electric Co. 

v. Sellers of Energy and Ancillary Service, July 25, 2001 (footnote 67) ....... 137

37. Internal FERC memorandum on ‘‘Audit of the Component Costs of Generating Electric Power’’ (footnote 68) .................................................................. 185

38. ‘‘Electronic Platforms and Energy Trading, Talking Points addressing 

Common Misperceptions,’’ (Enron document) (footnote 72) .......................... 188

39. ‘‘Update on Federal Government Affairs Energy Crisis Campaign,’’ July 

27, 2001 (Enron document) (footnote 74) ........................................................ 197

40. ‘‘Enron Secures Commitments for Additional $1 Billion in Financing,’’ 

Enron Corp. Press Release, November 1, 2001 (footnote 81) ........................ 198

41. In Re Investigation of Certain Financial Data, FERC Docket No. IN02–

6–000 .................................................................................................................. 199

a. Order to Respond, August 1, 2002 (footnote 84) ....................................... 199

b. Order Approving Stipulation and Consent Agreement, August 8, 2002 

(footnote 85) ................................................................................................. 204

c. Response of Transwestern Pipeline Company, September 3, 2002 (footnote 86) ......................................................................................................... 211

42. ‘‘Structuring Summary, Project Bluehorseshoe,’’ September 17, 2002 (prepared by JP Morgan Global Syndicated Finance) (footnote 87) .................... 240

43. ‘‘Regulation of Cash Management Practices,’’ Federal Register, August 

7, 2002 (Notice of Proposed Rulemaking) (footnote 88) ................................. 253

44. ‘‘Account-146 Balances of Enron Owned Companies,’’ (table prepared by 

FERC staff) (footnote 89) ................................................................................. 260

45. Response of Portland General Electric Company to the Commission’s 

May 8, 2002 Data Request and Request for Admissions, Fact-finding 

Investigation of Potential Manipulation of Electric and Natural Gas 

Prices, FERC Docket No. PA02–2–000, May 22, 2002 (footnote 94) ............ 264

46. Memorandum from John Mass (LeBoeuf, Lamb, Greene & MacRae, LLP), 

August 2, 1999 (footnote 96) ............................................................................ 287

47. Transcripts of Portland General Electric Scheduling Calls, April 15, 2000 

(footnote 97) ....................................................................................................... 291

48. Transcript of Scheduler Telephone Conversation, April 6, 2000 (footnote 

98) ...................................................................................................................... 333

Page

VII

49. Orders Initiating Investigation, and Establishing Hearing Procedures and 

Refund Effective Date, Portland General Electric Co., et al., FERC Docket 

No. EL02–114–000, and Avista Corporation, et al., FERC Docket No. 

EL02–115–000, August 13, 2002 (footnote 99) ............................................... 374

50. a. Letter from John M. Delaware (FERC) to Transwestern Pipeline Company, October 11, 2000 (footnote 100) ........................................................ 384

b. Letter from John M. Delaware (FERC) to Northern Natural Gas Company, October 11, 2000 (footnote 100) ....................................................... 386

51. ‘‘Preliminary Report on Operation of the Ancillary Services Markets of 

the California Independent System Operator (ISO),’’ August 19, 1998 

(prepared by the Market Surveillance Committee of California ISO) (footnote 101) ............................................................................................................ 390

52. ‘‘Report on Market Issues in the California Power Exchange Energy Markets,’’ August 17, 1998 (prepared by the Market Monitoring Committee 

of the California Power Exchange) (footnote 101) .......................................... 500

53. Market Order Proposing Remedies for California Wholesale Electric Markets, San Diego Gas & Electric Co. v. Sellers of Energy and Ancillary 

Services, November 1, 2000 (footnote 102) ..................................................... 530

54. ‘‘Staff Report to the Federal Energy Regulatory Commission on Western 

Markets and the Causes of the Summer 2000 Price Abnormalities,’’ November 1, 2000 (footnote 103) .......................................................................... 606

55. United States v. Timothy N. Belden ................................................................ 729

a. Plea Agreement, October 17, 2002 (footnote 106) ..................................... 729

b. Information, October 9, 2002 (footnote106) ............................................... 737

56. ‘‘Status of California Electricity Markets,’’ August 3, 2000 (presentation 

to FERC by Southern California Edison Co.) (footnote 108) ......................... 743

57. Memorandum from Christian Yoder and Stephen Hall (Stoel Rives LLP) 

to Richard Sanders, December 6, 2000 (footnote 109) ................................... 761

58. ‘‘Commission Addresses California Electricity Markets, Orders Investigation,’’ FERC Press Release, August 23, 2000 (footnote 113) ......................... 769

59. Order Initiating Hearing Proceedings to Investigate Justness and Reasonableness of Rates of Public Utility Sellers in California ISO and PX 

Markets and To Investigate ISO and PX Tariffs, Contracts, Institutional 

Structures and Bylaws; and Providing Further Guidance to California 

Entities,’’ San Diego Gas & Electric Co. v. Sellers of Energy and Ancillary 

Services, August 23, 2000 (footnote 113) ........................................................ 771

60. ‘‘Report on California Energy Market Issues and Performance: May-June, 

2000,’’ August 10, 2000 (prepared by Department of Market Analysis, 

California Independent System Operator) (footnote 116) ............................. 791

61. Declaration of Eric W. Hildebrandt, San Diego Gas & Electric Co. v. 

All Sellers of Ancillary Services, October 20, 2000 (footnote 117) ................ 851

62. ‘‘California Electricity Markets: Issues for Examination,’’ August 17, 2000 

(presentation by Dr. Gary Stern, Southern California Edison Co.) (footnote 120) ............................................................................................................ 875

Volume III 

63. Order Directing Remedies for California Wholesale Electric Markets, San 

Diego Gas & Electric Co. v. Sellers of Energy and Ancillary Services,

December 15, 2000 (footnote 123) ................................................................... 1

64. Order Directing Staff Investigation, Fact-Finding Investigation of Potential Manipulation of Electric and Natural Gas Prices, February 13, 2002 

(footnote 124) ..................................................................................................... 100

65. Telephonic Deposition of Christian Good Yoder, Nevada Power Co. et 

al. v. Duke Energy Trading and Marketing et al., June 18, 2002 (footnote 

125) .................................................................................................................... 111

Page

VIII

66. Deposition of Stephen C. Hall, Nevada Power Co. et al. v. Duke Energy 

Trading and Marketing et al., July 11, 2002 (footnote 126) ......................... 197

67. Invoice from Stoel Rives LLP to Christian Yoder, Enron Capital & Trade 

Resources Corp., November 27, 2000 (footnote 126) ...................................... 305

68. E-mail from Mary Hain to James D. Steffes, et al., August 29, 2000 

(footnote 127) (Enron document) ..................................................................... 312

69. ‘‘Enron Hosts Annual Analyst Conference; Provides Business Overview 

and Goals for 2000,’’ Enron Corp. Press Release, January 20, 2000 (footnote 132) ............................................................................................................ 435

70. ‘‘Enron Announces Increased Earnings Target for 2001 to $1.70-$175 

per share,’’ Enron Corp. Press Release, January 25, 2001 (footnote 132) ... 437

71. Letter from Kevin F. Cadden (FERC) to David Berick (Professional Staff 

Member, Committee on Governmental Affairs), June 19, 2002 (footnote 

133) .................................................................................................................... 438

72. ‘‘What To Do About Western Wholesale Markets?’’ Enron Corp., August 

25, 2000 (presentation by Tim Belden, Enron North America) (footnote 

135) .................................................................................................................... 455

73. Letter from James J. Hoecker (Swidler Berlin Shereff Friedman, LLP) 

to Susan J. Court (FERC), March 12, 2002 (footnote 136) ............................ 507

74. ‘‘Progress Toward Deal to Cut Power Cost,’’ San Francisco Chronicle,

January 10, 2001 (footnote 136) ...................................................................... 510

75. ‘‘Advancing Electric Competition in the Wake of California,’’ February 

5, 2001 (Enron document) (footnote 138) ........................................................ 513

76. E-mail from Ed Gillespie to Andrew D. Lundquist, April 3, 2001, 3:47 

pm (footnote 139) .............................................................................................. 533

77. E-mail from Ed Gillespie to Andrew D. Lundquist, April 3, 2001, 9:48 

am (footnote 139) .............................................................................................. 534

78. ‘‘Advancing Electric Competition in the Wake of California: Enron’s Campaign to Affect Policy and Public Opinion,’’ May 4, 2001 (Enron document) 

(footnote 141) ..................................................................................................... 535

79. Letter from Alberto R. Gonzales, Counsel to the President, to the Honorable Joseph I. Lieberman, May 22, 2002 (footnote 142) ................................ 551

80. Letter from Kenneth L. Lay to Clay Johnson, January 8, 2001 (footnote 

142) .................................................................................................................... 561

81. Memorandum from Linda Robertson to Ken Lay, February 12, 2001 (footnote 144) ............................................................................................................ 564

82. Memoranda from Linda Robertson and Tom Briggs to Ken Lay re: Meeting with Vice President Cheney, April 13, 2001 (footnote 146) .................... 566

83. Letter from John Duncan (Department of the Treasury) to Senator Joseph I. Lieberman, April 22, 2002 (footnote 147) ........................................... 627

84. Order on Rehearing of Monitoring and Mitigation Plan for the California 

Wholesale Electric Markets, Establishing West-Wide Mitigation, and Establishing Settlement Conference, San Diego Gas & Electric Co. v. Sellers 

of Energy and Ancillary Service, June 19, 2001 (footnote 150) .................... 630

85. ‘‘Enron Reiterates Confidence In Operations and Earnings Outlook,’’ 

Enron Corp. Press Release, June 19, 2001 (footnote 151) ............................. 688

86. ‘‘Energy Markets: Concerted Actions Needed by FERC to Confront Challenges That Impede Effective Oversight,’’ General Accounting Office Report, (GAO–02–656) June 2002 (footnote 152) ............................................... 689

87. ‘‘Subject: Tip on Enron Corp’s crude oil price fixing,’’ April 26, 2002 

(unsigned memorandum received by FERC) (footnote 155) .......................... 790

88. Letter from Pat Wood, III, to the Honorable Joseph Lieberman, August 

28, 2002 (footnote 156) ..................................................................................... 791

89. FY 2003 Congressional Budget Request and Annual Performance Plan, 

Federal Energy Regulatory Commission, February 2002 (excerpted) (footnote 157) ............................................................................................................ 819

Page

IX

90. Letter from Pat Wood, III, to the Honorable Joseph Lieberman (footnote 

157) .................................................................................................................... 833

91. E-mail from Don Chamblee (FERC) to David Berick (Professional Staff 

Member, Committee on Governmental Affairs), February 25, 2002 (footnote 158) ............................................................................................................ 862

92. ‘‘Enforcement Activities at Selected Federal Agencies,’’ September 6, 2002 

(Congressional Research Service Memorandum) (footnote 160) ................... 865

Volume IV 

B. Reported Contacts Between Current and Former FERC Employees and 

Enron Corp. ........................................................................................................ 1

1. Letter from Chairman Joseph I. Lieberman and Ranking Minority Member Fred Thompson, U.S. Senate Committee on Governmental Affairs 

to Patrick H. Wood III, Chairman, FERC, February 15, 2002 ..................... 1

2. FERC’s Response to Question 3 of the Committee’s February 15, 2002 

letter, March 4, 2002 (as revised April 8, 2002) ............................................. 6

3. FERC’s First Supplemental Response to Question 3 of the Committee’s 

February 15, 2002 letter, March 21, 2002 (information as to current 

employees revised April 8, 2002) ..................................................................... 557

4. FERC’s Second Supplemental Response to Question 3 of the Committee’s 

February 15, 2002 letter, April 24, 2002 ........................................................ 640

5. FERC’s Third Supplemental Response to Question 3 of the Committee’s 

February 15, 2002 letter, May 8, 2002 ........................................................... 677

Materials Submitted for the Record by Ranking Member Thompson

C. Minority Views: FERC and its Oversight of Enron Corp. (with attachment) ................................................................................................................... 682

D. Documents:

1. Correspondence between Chairman Wood and Senators Lieberman and 

Feinstein concerning ethics violations of FERC Commissions (with GAO 

report attached) ................................................................................................ 690

2. Commissioner Breathitt’s response to invitation by the Minority staff 

of the Committee to supplement her reported contacts with Enron ............ 698

3. Chart of contacts between Commissioner Breathitt and Charles Bone ....... 699

4. Timeline of contacts between Commissioner Breathitt and Charles Bone .. 702

5. Typed up notes of Charles Bone regarding an August 23, 2000 meeting 

in Nashville with Commissioner Breathitt ..................................................... 708

6. Handwritten note by Charles Bone regarding conversation with Commissioner Breathitt ................................................................................................. 709

7. Charles Bone billing records from Wyatt, Tarrant & Combs, LLP (WTC) .. 710

8. Bone memo, dated February 6, 2002, detailing money transactions between the WTC and Enron .............................................................................. 734

9. WTC’s response, dated February 15, 2002, to Bone memo ........................... 777

10. Facsimile communication from Commissioner Breathitt to Charles Bone 

concerning transcript of Senator Peace’s comment about Governor 

Breathitt ............................................................................................................ 779

11. Facsimile communication from Commissioner Breathitt to Charles Bone 

regarding Governor Patton’s recommendation letter, dated August 23, 

2000, to President Clinton for Commissioner Breathitt to become Chairman of FERC ..................................................................................................... 781

12. Facsimile communication from Commissioner Breathitt to Charles Bone, 

dated August 29, 2000, regarding a news article predicting who will 

be the next Chairman of FERC ....................................................................... 783

(1)

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Æ


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