IN: Spoke with Jeff Gollomp who is trying to obtain internal approval for financial trading with one of the operating utilities (as opposed to using the agent). He anticipates a corporate restructuring which may delay matters. He understands our allocation concerns. He inquired about AEP as a comparable type of counterparty but we did not attempt to discuss (and were not at liberty to discuss). Jeff asked that I wait to hear from him. By copy of this entry, I am advising Ed Sacks of the status. Click on this link to view the document in the Financial Trading Agreements database-->

Generate a subject line.

OUT: Cinergy Services, Inc. ISDA with ENA

IN: Jeff The attached "Rough & Tumble" is an electronic clipping service targeted at California politicos and policy wonks. It carried the LA Times version of the Lockyer comments a couple days ago. Today, it has the NY Times article on Ken Lay. It's pretty clear that in the near-term, Enron and it's leadership are at risk of being engulfed in a political firestorm which bounces from coast to coast, gaining strength each step of the way. However, it is the long-term challenge that draws my attention. From my research to date, I am left with the strong impression that the Enron's capacity for acquiring, distilling and assessing business information is much stronger than it's abilities with public policy information. Ken Lay, you and your team have shaped a innovative and entrepreneurial company rooted in agile arbitrage of business knowledge. Like Goldman Sachs, it is hard for the "man on the street" to understand precisely what Enron does. However, because of your presence in businesses that play out daily in homes, schools and small businesses, Enron will be scrutinized in a way the Goldman couldn't imagine in it's worst nightmares. From my perspective, the success of Enron's business model demands a sure footing in both business and public policy. Going forward, these two areas of expertise need become intertwined to assure the success of the highly sophisticated, ethical, innovative and insightful global corporation known as Enron. I would like to help you succeed with this challenge. I look forward to our discussions.

Generate a subject line.

OUT: I would like to help you succeed with this challenge.

IN: There will be a UBSWE Migration TONIGHT....please make sure that you LOG OFF before you leave today. Monday morning, (2/4/02), you will logon with your Enron NT Account and Password. You will immediately be forced to change your password (following Enron rules) and your NT ID will stay the same. Once you've changed your password, and logged off AGAIN, you will see the UBS Warburg Energy Screen....email will not be affected until day one. Starting Monday, you will receive emails from IT support to explain the HOW TO's for your data that YOU will need to begin transferring over to UBS. All material will need to be in compliance with UBS standards and NO documents or emails are to be deleted. In Outlook the following information will be transferred over by IT: Calendar, Contacts, Tasks, and Notes. Emails (Inbox, Sent Items and Deleted Items) and folder structure will NOT be migrated. ALL data MUST be migrated PRIOR to day one (estimated to be 02/08/02 ), as access to Enron data will be disabled Day 1. Thanks for your immediate help in this matter.

Generate a subject line.

OUT: ALERT!!

IN: Holli: We need to talk about status. I spoke yesterday with three EWEB lawyers and Dick Varner. I have to comment back on the Schedule to the master agreement. EWEB has not yet reviewed the Credit Support Annex and needs to submit their proposed legal opinion. EWEB is reserving discussion of the confirmations pending resolution of the master agreement. Most important, however, is the EWEB legal opinion which will be limited by the capacity of EWEB's traders to enter into financial trades at any given point in time. EWEB is insisting that we assume the obligation of knowing whether an EWEB trader is authorized to act and how that EWEB trader is authorized to act under EWEB's trading policy because, under Oregon law (and the law of all states), financial trades executed by unauthorized persons (employed by governmental entities) are completely void. Your two trades (which began as physical deals and were transformed into financial deals) were authorized by EWEB's recent board resolution. However, you cannot rely fully on this resolution for future trades. Before you ever trade with EWEB again, you will not be able to rely upon your past relationship with an EWEB trader. You will first have to conduct some due diligence with respect to the EWEB trader and the EWEB trading policy. ENA has never agreed to this type of arrangement. Let's schedule a time to discuss the agreement further. Thanks. Sara

Generate a subject line.

OUT:
EWEB