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FYI - the issue of whether Europe are able to aggregate their positions, calculate VaR appropriately and report to Houston is aquiring heat since they committed to do it by May 10th and its now May 9th.
I understand the natural defensive reaction (I've been there myself) but I don't think citing policy gaps for not having it done is helpful at this stage.
Rgds
DP
-----Original Message-----
From: Port, David
Sent: Wednesday, May 09, 2001 8:02 AM
To: New, James; Fleming, Lloyd
Cc: Schultz, Cassandra; Murphy, Ted; Jordan, Mike; Jordan, Mike; Dyson, Fernley
Subject: RE: New product approvals
There is an established policy and process for approving new products when the word "product" refers to a new market (e.g. credit trading) - you can get permanent limits or temporary limits as required.
When the word "product" refers to another basis location in a power portfolio, for example, we assume (and the Board does also) that the original authority to trade will cover this too. Hence "Continental Power" means "continental power".
We also assume that the same operational guidelines in the policy concerning DPR content, format, reporting, aggregation, apply equally to the new basis location as to the existing ones, and that you as controllers will design your own processes (e.g. the CACS form) to ensure that you can comply.
I am not in favour of having detailed operational procedures in a Board approved risk policy.
-----Original Message-----
From: New, James
Sent: Wednesday, May 09, 2001 4:13 AM
To: Fleming, Lloyd
Cc: Port, David; Schultz, Cassandra; Murphy, Ted; Jordan, Mike; Jordan, Mike; Dyson, Fernley
Subject: Re: New product approvals
RAC control the corporate risk policy (please correct me if I am wrong here) so by definition RAC need to be concerned by the operational issues around new products as they relate to ensuring that the end goal of aggregation in the overall Corporate VAR. That is the issue which will continue to face us as the markets expand and deregulate and more and more basis locations get added (the problem we have right now).
All the investment banks have a new product / new business policy to stop just those issues we are facing and I strongly feel that we should more to adopt the same here. This would help to reduce the noise we are having around the process and close one more door.
Cassandra - your thoughts ?
James
From: Lloyd Fleming 09/05/2001 09:40
To: James New/LON/ECT@ECT
cc: David Port, Cassandra Schultz/Enron@EnronXGate, Ted Murphy, Mike Jordan/LON/ECT@ECT
Subject: New product approvals
James,
Further to your comments yesterday on the absence of a policy for New Product approvals, as far as I am aware there is no explicit policy by RAC for approval of new products, other than the extent to which a new product is covered under this paragraph in the Risk Policy manual:-
VI / A. Subject to the authorization of the Board of Directors, the Enron Corp. Chairman, the President of Enron Corp. and the Enron Corp. Chief Risk Officer, additional Portfolios may be created and additional Commodity Groups may be added within existing Portfolios, and the related limits will be created or revised accordingly. The President of Enron Corp. and the Enron Corp. Chief Risk Officer can authorize additional Positions within the existing Commodity Groups, provided that such Positions can be aggregated within the limits of a currently authorized Commodity Group.
RAC's concern is not with the operational issues around new products, but about whether or not those products are aggregated in the overall Corporate Risk reporting. I suggest we approach this from our respective ends: I will raise this with Ted Murphy and Cassandra Schulz to see what level of policy they deem appropriate from a corporate perspective. From your side, are you able to put together some operational guidelines, if none already exist?
regards
Lloyd
<Embedded Picture (Device Independent Bitmap)>
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Steve,
Following up on discussion with Jeff over the weekend and last night I would
like to get together today if possible. I am scheduled to travel back to
Brazil tonight. I attach the highlights of Jeff and my discussion.
I am at 66524, or on my cell at 713-822-1374.
Jim
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[IMAGE] [IMAGE]
[IMAGE]
To be removed from future mailings CLICK HERE
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{
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Start Date: 4/19/01; HourAhead hour: 9; No ancillary schedules awarded.
Variances detected.
Variances detected in Energy Import/Export schedule.
LOG MESSAGES:
PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041909.txt
---- Energy Import/Export Schedule ----
$$$ Variance found in table tblINTCHG_IMPEXP.
Details: (Hour: 9 / Preferred: 12.00 / Final: 11.98)
TRANS_TYPE: FINAL
SC_ID: ECTRT
MKT_TYPE: 2
TRANS_DATE: 4/19/01
TIE_POINT: FCORNR_5_PSUEDO
INTERCHG_ID: EPMI_CISO_DONKEY
ENGY_TYPE: WHEEL
|
{
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Anne, can we add the new pg&e topock curve to the basis transport tab? Also,
the LT transport section is showing the transport positions through 2002,
which is incorrect. Please review the transport deals in the model and
delete the positions.
Thanks,
Mike
|
{
"pile_set_name": "Enron Emails"
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Hi Jon;
Please price the attached file for me as the client wants to close today (with the usual disclaimer about our process).
Thanks, Mark.
|
{
"pile_set_name": "Enron Emails"
}
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Plz see email. Sent you info for u & Rick. Best, Jeff
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{
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pretty much all traders
Brian Hoskins@ENRON COMMUNICATIONS
10/23/2000 10:51 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: Re: Create a new NT group
John,
Here is the current list of traders we have for the chat program. Do you
want to include all traders or just desk heads and selected others?
Brian
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{
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I like that. It has a homey, Mister Rogers ring to it.
|
{
"pile_set_name": "Enron Emails"
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Sara,
Org chart attached.
Per conversation with Jeff Kinneman who was in London this week, London Credt
Trading will be trading in Bank default swaps . The name of the entity is
still to be determined. Jeff will be authorized to execute trades for the
entity and the trades will be in the name of the entity and not back-to-back
with our books.
Sheila
|
{
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Attached is the Enron Americas GasTrading violation memos for Maturity Gap
Risk and VaR for June 13, 2001. The Office of the Chairman for Enron
Americas is responsible for printing out a hard copy of this memo, signing it
and returning the hard copy to Chris Abel at 3155a, who will forward it to
RAC to obtain their signature.
Thank You
|
{
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Attached please find the slides on California for the CFTC.
Please contact me should you have any questions or require additional information.
Jennifer
5-3550
|
{
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They may hit you up $ 378.50 for the flight on United from Chicago -
Houston.....
Let's hope for lots of confusion at the Lufthansa office in Moscow and
perhaps they will not notice that your ticket is supposed to "Lufthansa"
only....
Best wishes - Claudia
TRAVEL ON AFTER HOURS: 800-366-2100 REFERENCE: 16XL
9000 VIRGINIA MANOR ROAD STE 201
BELTSVILLE MARYLAND 20705
FOR YOUR UNIQUE TRAVEL ON TELEPHONE NUMBER...SEE BELOW
-----------------------------------------------------------------
ERB/KIM*180558-CB-18
KIM ERB
14126 SCARBOROUGH FAIR
HOUSTON TX 77077
DATE OF ISSUE: JAN 03 2002 ITIN/INVOICE NBR: ITIN PAGE: 01
.........................................................................
FROM TO AIRLINE FLT DEP ARR STATUS
09 JAN 02 WEDNESDAY
MOSCOW/SHEREMT FRANKFURT LUFTHANSA 3221 700A 835A CONFIRMED
CLASS:B MEAL
ELAPSED TIME- 3:35 MILES- 1262
NONSTOP EQUIP-32S
FREQ FLYER LH M AND M
WEDNESDAY
FRANKFURT CHICAGO/OHARE LUFTHANSA 430 1040A 1250P CONFIRMED
SEAT-41C CLASS:B MEAL
ELAPSED TIME- 9:10 MILES- 4342
NONSTOP EQUIP-BOEING 747 JET
FREQ FLYER LH M AND M
CHICAGO/OHARE HOUSTON/INTCON UNITED 703 315P 558P CONFIRMED
SEAT-10B CLASS:M AUDIO
ELAPSED TIME- 2:43 MILES- 925
NONSTOP EQUIP-BOEING 737-
|
{
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}
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Details, forgot to send attachment.
Tom
-----Original Message-----
From: Martin, Thomas A.
Sent: Wednesday, January 02, 2002 1:04 PM
To: Vandor, David
Cc: East, Laynie
Subject: Texas Trading 2002 Expense Budget
David,
I made a few adjustments to your expense estimates based on a more detail look at actuals in 2001 and my previous 2002 budget. The total impact is to increase the budget by $68,000. I also was not sure what your Rent, Technology and Transportation amounts were supposed to represent. Based on our previous discussions I thought that rent and technology are covered elsewhere, but I used your numbers anyway. I am interested in what that is supposed to be since it is not very much and those are potentially very large dollar categories if everything gets rolled in.
Call me if you have any questions.
Tom
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{
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John,
Please find details for the distributor for the Coast chair manufactured by
MAGIS:
Leif Petersen Inc. 15 Woodland Avenue San Rafael CA 94901
T+1 415 45 355 00
F+1 415 48 507 76
Personally I like the Orgone chair very much but I don't know how to compare
it with his other pieces...It is to my mind quite unique and a beautiful
piece to look at standing alone in a space.
Regards,
Patsy Youngstein
For Marc Newson Ltd
+44 0207 287 9388 T
+44 0207 287 9347 F
> -----Original Message-----
> From: [email protected] [mailto:[email protected]]
> Sent: 26 February 2001 17:30
> To: [email protected]
> Subject:
>
>
> Hello,
>
> I am trying to find out about the Coast chair that Marc
> Newson designed. I
> saw it in a magazine article and I haven't seen it being
> produced or sold
> anywhere. Can you help me find a distributor in the US? I
> am located in
> Houston, Texas.
>
> I love Marc's designs. I am thinking of purchasing the
> Orgone chair from
> Totem. What is your opinion of this chair compared to other of Mr.
> Newson's designs?
>
> Thank you for you time and consideration.
>
> Sincerely,
>
> John Griffith
>
- Plas Orgone Chair01.jpg
|
{
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Dear Mike and Chris:
I received the message you called before Christmas. I apologize for the
extended delay. I wanted to follow up with you. Unfortunately, the
message-taker was not efficient, thus if you could specify again your question
I would be happy to research it out for you. Please let me know.
How was your Christmas and New Years holidays? I returned home for the
holidays to Pennsylvania. It was wonderful to visit again with family and
friends. But I will have admit it was quite shocking to arrive off the plane
to a high of 6 degrees. I guess I have become quite acclimated to the temp
orate climate here in San Francisco.
Looking forward to continue working with you.
Virginia Repasky
Christopher-Clark Fine Art
(415)397-7781
|
{
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Sweetheart, very sorry to hear. You're in my thoughts and prayers and I hope you're doing OK. Sometimes, things just aren't very fair.
Best,
Jeff
-----Original Message-----
From: Dernehl, Ginger
Sent: Friday, September 14, 2001 10:43 AM
To: Alamo, Joseph; Allegretti, Daniel; Allen, Joe; Alvarez, Ramon; Arefieva, Maria; Assaf, Lisa; Bellas, Kirsten; Benson, Eric; Binns, Darran; Bolton, Scott; Boston, Jerry; Boston, Roy; Briggs, Tom; Buerger, Rubena; Burns, Stephen; Canovas, Guillermo; Cantrell, Rebecca W.; Chan, Stella; Comnes, Alan; Connor, Joe; Cooney, Carolyn; Dadson, Aleck; Dasovich, Jeff; Decker, Larry; Dernehl, Ginger; Dressler, Jean; Floris, Vinio; Frank, Robert; Fromer, Howard; Fulton, Donna; Guerrero, Janel; Hamilton, Allison; Hardy Jr, John; Hawkins, Bernadette; Hemstock, Robert; Hetrick, Nancy; Hoatson, Tom; Huang, Karen; Hueter, Barbara A.; Hunter, Bevin; Huson, Margaret; Ibrahim, Amr; Ingersoll, Richard; Kaufman, Paul; Kean, Steven J.; Keene, Patrick; Kingerski, Harry; Kishigami, Kikumi; Knight, Laurie; Landwehr, Susan M.; Lassere, Donald; Lawner, Leslie; Leibman, Lara; Leonardo, Sam; Levy, Alberto; Linnell, Elizabeth; Mara, Susan; Maurer, Luiz; McVicker, Maureen; Migden, Janine; Miller, Terri; Montovano, Steve; Moore, Bill; Nersesian, Carin; Neustaedter, Robert; Nicolay, Christi L.; Nord, Sue; Noske, Linda J.; Novosel, Sarah; Ogenyi, Gloria; Palmer, Germain; Perez, Carmen; Perrino, Dave; Petrochko, Mona L.; Pharms, Melinda; Reblitz, Scott; Rishe, Frank; Rizzo, Helen; Roan, Michael; Robertson, Linda; Robinson, Marchris; Rodriquez, Andy; Ryall, Jean; Lindberg, Susan; Shapiro, Richard; Shelk, John; Shortridge, Pat; Staines, Dan; Steffes, James D.; Stransky, Joan; Stroup, Kerry; Sullivan, Kathleen; Sullivan, Lora; Thome, Jennifer; Tiberi, Fino; Tracy, Lysa; Twiggs, Thane; Walton, Steve; Warner, Geriann; Yeung, Charles; Yoho, Lisa
Subject: FW: Thank you
Dear Friends,
Today, a very delicate and beautiful bouquet of flowers was delivered to me from Enron Government Affairs. It is a bouquet of blooming orchids, purple hydrangia, pink roses and one yellow rose. It is a delicate and beautiful arrangement of flowers that remind me of my relationship with Jude Moussa.
Jude was an emissions broker for Cantor Fitzgerald and worked on the 104th floor of the North Tower at the World Trade Center. Jude and I met last April while I was working at Enron Global Markets. In addition to sharing some wonderful times together in Houston and New York City, we talked often. Last Friday morning, Jude called me to say hello - one last time.
My friend was a kind and considerate man with a gentle heart. The irony of his life is that he and his family fled Lebanon in the eighties to escape the war there.
Jude's world is now a world of eternal love and peace. And his spirit will be kept alive by the memories that his family and friends share with each other, and with those of you who didn't have the joy of knowing him personally.
Your flowers, your comforting words, and your friendship have eased my sadness these past few days. Since yesterday, I have been in contact with Jude's family and I have relayed to them the outpouring of prayers and sympathy that are directed at their son and the other victims of this terrible tragedy.
Setting aside my grief, I hope that your own sorrow and loss are eased in the presence of family and friends.
Love, Janel
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{
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fye this is not a typo
----- Forwarded by Barbara N Gray/HOU/ECT on 10/23/2000 07:34 PM -----
Scott Josey@ENRON
10/23/2000 06:14 PM
To: Barbara N Gray/HOU/ECT@ECT
cc:
Subject: Wildhorse/Crescendo
Barbara,
I wanted to thank you again for your assistance and insight in the Crescendo
matters. I particularly appreciate your effort to set up the meeting with
Stan Horton. The meeting was helpful and it was the right decision to go
forward with the meeting. By the way, I believe that Gerald is doing a great
job.
Thanks again,
Scott
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El Paso would answer questions two and three. What were they?
|
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Let's be sure to keep this in mind as we do future resolutions.
----- Forwarded by Mark Taylor/HOU/ECT on 10/20/2000 02:11 PM -----
Mark E Haedicke
10/20/2000 10:56 AM
To: Julia Murray/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Deb
Korkmas/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Alan Aronowitz/HOU/ECT@ECT,
Sheila Tweed/HOU/ECT@ECT
cc: David W Delainey/HOU/ECT@ECT
Subject: Appointments of Agents and Attorneys in Fact
I would like to do fewer resolutions authorizing non-vps to sign contracts,
and when we need such authorizations, let's make sure the resolutions are
appropriately limited. My thoughts are as follows:
1. We have a lot of vps that can sign contracts.
2. It is generally ok to have confirmations signed by certain carefully
selected directors since we are confirming a trade that already took place
and there is master agreement already signed.
3. There are certain very routine agreements like pipeline right-of-way
agreements that are ok for carefully selected directors to sign.
4. Confidentiality agreements should be signed by a vp.
5. Any authorization for a director to sign should expire within not more
than one year and revoke all prior authorizations.
Please give me your comments.
Mark
|
{
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Two weeks ago I toured the Depelchin Center, one of the organizations that
receives much of its funding from the United Way. I was surprised to find
out about the many programs that the center offers to neglected and abused
Houston children and the caring adults who will open their homes as foster
parents. I had already completed my electronic pledge card before going to
the center. Learning about the important programs offered through Depelchin
and meeting four year-old Jessica and ten year-old Steven who were
temporarily housed there before going to foster homes made me very glad to
have made that pledge.
Enron has a terrific matching program that allows all employees to receive
matching funds for dollars that you may choose to give to non-profit
organizations. Hopefully, many of you take advantage of this to stretch your
charitable giving during the year. The United Way campaign is the one time
each year that Enron invites employees to partner with the company to make a
difference in the lives of so many in Houston. Each dollar pledged by an
employee is matched by Enron.
If you have not yet completed your electronic pledge, please consider doing
so as soon as possible. Our United Way campaign draws to its conclusion next
Wednesday, August 23. I hope that each one of you will consider making a
pledge. There is no gift that is too small, because cumulatively all Enron
employees can make a significant positive impact for Houston. Log on to
http://unitedway.enron.com to complete your pledge card.
Thanks to the many of you who have already completed your electronic
pledge.
|
{
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[email protected]
dave would love to see cv from you
|
{
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We are turning into Corp today, (3CE), (34.9). This is a variance of (8.3) to what you have below.
NEPCO = (8.5) - due to project profit adjustments on LS Power/Kendall, IL, Cogentrix/Jenks, OK, and E.Coast Power/Linden, NJ.
EEOS = .2 - Puerto Rico 2.0, Bonus accrual (1.0), and misc. other (.8).
FYI, We are currently looking at the NEPCO projects to see if they require further writedowns.
Are we reporting the 4Q through EGS and not Wholesale? Please let me know.
Erin
-----Original Message-----
From: Geaccone, Tracy
Sent: Thursday, October 18, 2001 11:48 AM
To: Sommers, Jeffrey E.; Stevens, Kirk; Giles, Valerie; Lindholm, Tod A.; Anderson, Michael; Meers, Thomas; Copeland, Erin; Dodson, Keith
Cc: Hayslett, Rod
Subject: 4 Quarter Update
Importance: High
Rod and I are meeting with Stan Monday afternoon, October 22, to talk about the 4th Quarter. I have listed below the latest IBIT impact to Enron for the 4th Quarter that I have. Please let me know if there are any changes and provide any variance explanations if necessary.
PGG $28.0
EREC $53.2
Azurix ($24.2) including Marlin
Clean fuels ($21.1)
EGAS ($14.1)
EEOS ($26.6)
Thanks
Tracy
|
{
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Everyone,
I am beginning to receive phone calls and emails from some of the CA
businesses that Ken sent letters to on Monday. I will be tracking these
businesses through a database, but we need to start following up with phone
calls and additional information.
I will keep you posted on who is asking for more information, and all
materials that we send to these businesses going foward. However, I will
need your help in placing follow up phone calls.
To that end, I would like Mark and Rick to make the first two phone calls
today. Keep in mind we sent out two letters. Before you contact these
folks, you might want to check the list to see which letter we sent out.
(I'm attaching the final list. The highlighted companies - 15 - received
the letter from Ken that indicated he would follow up personally. Everyone
else - 100 - received the generic letter).
****Whomever you talk with, be sure and confirm the address and phone number
and names for where we should send future information (see list) thanks!!!
Mark Palmer
Ms. Kris Essell (check the spelling when you talk with her)
Public Affairs Rep to Chairman Sherry Lansing
Paramount Pictures
323-956-5202
Asked for additional materials
Rick Shapiro
Tamsin Randlett
Senior Director, Government Affairs
Gap Inc.
415-427-3516
Asked for additional materials
|
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---------------------- Forwarded by Kay Mann/Corp/Enron on 04/10/2001 09:08
AM ---------------------------
"DeBerry, Jeremiah A." <[email protected]> on 04/09/2001
10:56:45 PM
To: "'[email protected]'" <[email protected]>, "'[email protected]'"
<[email protected]>
cc: "'[email protected]'" <[email protected]>,
"Kahn, Marguerite R." <[email protected]>
Subject: Turbine Purchase Transaction Documents
"paulhastings.com" made the following annotations on 04/09/01 21:43:48
------------------------------------------------------------------------------
NEW E-MAIL ADDRESSES AT PAUL, HASTINGS, JANOFSKY & WALKER LLP
We have changed our e-mail address. Our new domain name is
paulhastings.com. In most cases, our address is composed of
conventional first name and last name plus @paulhastings.com. Here are
two examples: [email protected] and [email protected].
If you have any questions, please contact us at [email protected].
==============================================================================
"The information transmitted is intended only for the person or entity
to which it is addressed and may contain confidential and/or privileged
material. Any review, retransmission, dissemination or other use of, or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited. If you
received this in error, please contact the sender and delete the
material from all computers."
==============================================================================
Attached for your review are initial drafts of the following documents:
??????????? - Assignment and Assumption Agreement, with GE Acknowledgement;
??????????? - NorthWestern Guarantee issued to?GE (if necessary); and
??????????? - ENA Promissory Note (issued by Turbine LLC).
Also attached?are clean and blacklined copies of the revised?NorthWestern
Guaranty issued to ENA.?
Please contact me with any?questions or comments regarding the attached
documents.
************************************************
Jeremiah A. DeBerry, Esq.
Paul Hastings Janofsky & Walker LLP
399 Park Avenue
New York, New York 10022
Phone: (212) 318-6458
Fax:???? (212) 319-4090
?
?
- Assignment Agreement(v1).DOC
- Guarantee - Northwest GE(v2).WPD
- promissory note(v1).WPD
- NW Agreement Guaranty(v2).WPD
- NW Agreement Guaranty(vRED).WPD
|
{
"pile_set_name": "Enron Emails"
}
|
Bill, the language that we have used for discounting had a 200 basis point
amount attached to it. It should not be included based on our last
conversation.. If this is going to be attached as a schedule then it still
needs to go through some changes.
The calculation, summary page is almost complete.
BT .
|
{
"pile_set_name": "Enron Emails"
}
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Ken,
Attached is a correction to pages 10,11,and 12 that were presented by the
ISO staff at a recent QSE training session. I have attached pages 10,11,
and 12 for ease of reference.
This is the example that I told you about at out at the last CSC meeting.
Best Regards,
Lance
- Enron correction for congestion management example.pdf
- Page12.PDF
- Page11.PDF
- Page10.PDF
|
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Notice No. CMS-21
February 7, 2002
COMMODITY EXCHANGE, INC.
NOTICE OF INTENTION TO TRANSFER MEMBERSHIP
Notice of Intention to Transfer Membership has been posted on the bulletin
board of the Exchange by:
Eric Klein (EZE-6252)
In connection therewith, notification of any claims against the
aforementioned individual arising out of transactions executed on the
Exchange up to the close of business on February 7, 2002, must be submitted
to the Corporate Secretary's Office within ten (10) days.
Inquiries regarding the above should be directed to the Member Services
Department at (212) 299-2377.
|
{
"pile_set_name": "Enron Emails"
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|
http://www.consultrci.com
************************************************************************
Get a complimentary premiere SourceBook Weekly Issue at:
http://www.consultrci.com/web/rciweb.nsf/Web+Pages/SBEntrance.html
Not just news; analysis.
************************************************************************
New SCIENTECH PowerHitter interviews with David M. Stoner and Dr. Michael
J. Denton, CEO, President and Vice President of Caminus Corporation, are
now available. Find out more at:
http://www.consultrci.com
************************************************************************
===============================================================
SCIENTECH IssueAlert, December 12, 2000
Powergen and LG&E Complete Merger
By: Will McNamara, Director, Electric Industry Analysis
===============================================================
Powergen of the United Kingdom and LG&E Energy Corp. of Louisville, Ky.,
have completed their merger and have formally begun joint operations. LG&E
will maintain its headquarters in Louisville, which will serve as the
headquarters
for Powergen's North American operations. LG&E Energy's utility subsidiaries,
Louisville Gas & Electric and Kentucky Utilities Company, will continue
as separate subsidiary corporations with joint operations and with
headquarters
in Louisville and Lexington, Ky., respectively.
ANALYSIS: Although referred to as a "merger," Powergen actually has acquired
LG&E, a strong utility based in the Midwest that remains focused on all
three core sectors of the electric utility business (generation, transmission
and distribution). Powergen, which generates about 14 percent of the
electricity
used in England and Wales, is a company with clear intentions to expand
internationally. The company currently has electric and gas operations
in Europe, India, Asia and Australia. Together, the Powergen / LG&E
combination
reportedly will have assets of nearly $14 billion and total revenues of
$9 billion, serving four million customers worldwide.
The partnership marks the third acquisition of a U.S. electric utility
by a foreign company, following ScottishPower's purchase of PacifiCorp
and National Grid's purchase of the New England Electric System (NEES),
both in 1999. It appears that with each subsequent foreign acquisition
of a U.S. utility, the regulatory hurdles needed to complete the deal have
become easier to pass.
Powergen's reasons for wanting to acquire assets in the United States arise
from needs similar to its U.K. counterparts. In the last ten years that
have elapsed since the privatization and subsequent deregulation of
electricity
in the United Kingdom, the electric sector has become completely competitive
in all areas, including domestic customers. Just as in U.S. deregulation,
concerns about market power have restricted the domestic growth of U.K.
companies, which is compounded by the limited size of the U.K. energy market.
Consequently, companies like Powergen have developed unique skills both
in the United Kingdom and overseas so that they can expand scale through
opportunities abroad. Powergen had wanted for some time to penetrate the
U.S. market and evaluated potential partnerships with several energy companies
in this country, including Cinergy and Houston Industries (now Reliant),
which all fizzled.
LG&E is particularly appealing to Powergen because of the U.K. company's
desire to establish a strong presence in the Midwest market. LG&E should
be a good partner for Powergen, as the latter gains access to approximately
3.7 million customers. In addition, LG&E owns equity in and operates
non-utility
power plants in six states as well as in Spain; owns interest in three
natural-gas distribution companies in Argentina; and owns CRC-Evans Pipeline
International, a provider of specialty equipment to the natural-gas and
oil pipeline construction industry. Altogether, LG&E's two utilities and
numerous unregulated businesses total about $5 billion in assets, which
should support any further expansion that Powergen might have in mind.
Perhaps Powergen's primary rationale for the acquisition is that the company
values LG&E's comparatively low-cost power production and high standards
regarding reliability and customer service.
Yesterday (Dec. 11) marked LG&E Energy's last day of trading on the New
York Stock Exchange. Shareholders on record should receive letters of
transmittal
from Powergen's paying agent, Computershare Trust Company of New York,
containing instructions for submitting their stock certificate for the
agreed-upon cash payment of $24.85 per share. An additional payment of
25.276 per share will also be paid to LG&E Energy shareholders on record
as of Dec. 8.
Powergen reportedly paid about $3.2 billion for LG&E, and assumed an
additional
$2.2 billion in LG&E debt. During the merger process, there was a lot of
speculation about how Powergen had financed the acquisition of LG&E, despite
its disclosure of divesting key assets*such as overseas interests, its
metering business and two U.K. power stations*to generate liquid capital.
During the course of the regulatory approvals needed for the acquisition,
Standard & Poor's kept Powergen's debt position under scrutiny, although
its increased market potential and divestitures did help to offset any
significant downgrades in its ratings. Moving forward, it will be interesting
to see how the company's rating changes now that the acquisition has been
completed.
We have witnessed only three case of foreign acquisitions of U.S. utilities*
and
all are still fairly new*so consequently it is hard to say if this mixture
of two foreign corporate cultures will work. As an example of difficulties
that Powergen might face, ScottishPower encountered a multitude of
difficulties
assimilating into the culture of the Northwest regarding its purchase of
PacifiCorp. In addition, although PacifiCorp and National Grid both have
claimed that they intend to become major players in the U.S. markets through
their acquisitions of U.S. companies, that has yet to materialize.
Where the combined company goes from here is unknown. It is possible that
Powergen will continue to secure assets in the Midwest since it has claimed
that this will be a key area of expansion. Another possible strategy is
developing its telecom business. Powergen announced its move into the U.K.
telecommunications sector earlier this year. Powergen's joint venture with
Affinity Internet Holdings is supporting the development of Internet products
and the establishment of fixed and mobile telecommunications along with
multi-utility billing solutions. Thus, speculation has been raised that
the company may develop this area of its business in the United States
as well. It is certainly only a matter of time before another foreign company
attempts an acquisition of a U.S. utility. Consequently, many eyes will
remain on the Powergen / LGE combination as it should be a good indicator
of how successful or problematic such partnerships will be.
===============================================================
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|
{
"pile_set_name": "Enron Emails"
}
|
---------------------- Forwarded by Robin Rodrigue/HOU/ECT on 11/18/2000
04:58 PM ---------------------------
Enron North America Corp.
From: Frank Hayden @ ENRON 11/18/2000 04:53 PM
To: John J Lavorato/Corp/Enron@Enron, Robin Rodrigue/HOU/ECT@ECT, Bilal
Bajwa/NA/Enron@Enron
cc: Brian Gillis/CAL/ECT@ECT, Ganapathy Ramesh/HOU/ECT@ECT, Chris
Abel/HOU/ECT@ECT, Vladimir Gorny/HOU/ECT@ECT
Subject: Canadian VaR
I spoke with Bilal. It is our understanding that the morning VaR report
regarding Canada represents how we are capturing positions right now. We are
currently decomposing/reconstructing Disturnal's book to capture by region
code (overall positions would remain the same). This would impact Disturnal
positions which will be moved to either McKay or Lambie. From our side we
are waiting on the IT resolution.. We have set a deadline of the last week
in November to get this in motion. On Monday, Bilal will give you a detail
breakout of the deadline for Canada.
Regarding the the Canadian P&L report, I left a message for Gillis to get the
numbers out there.
Additionally, last week we resolved the Canadian derived curve problem
(derived curves were improperly mapped and position was not be captured....)
We re-ran VaR and the e-mail below summarizes the breakout. Overall, desk
VaR decreased because Canadian VaR increased (hedges out portfilio).
Hope this gives you an idea of our progress.
Frank
PS. We will be moving Enovate out of Hunter Shively's VaR and give it is own
place on the bench. This will probably impact the Central Desk VaR by approx.
200K
Bilal Bajwa@ECT
11/17/2000 06:43 PM
To: Frank Hayden/Corp/Enron@Enron, Vladimir Gorny/HOU/ECT@ECT, Susan D
Trevino/HOU/ECT@ECT, Chris Abel/HOU/ECT@ECT, Burton McIntyre/HOU/ECT@ECT,
Ganapathy Ramesh/HOU/ECT@ECT
cc:
Subject: VAR change!
Below is the new var after the derived curve/primary-secondary mapping issue
in RisktRac was resolved.
EFF_DT PORTFOLIO_ID DOWN95 NEW VAR
11/16/2000 CANADA 7,411,853. 10,723,189
11/16/2000 AGG-GASIV 36,777,800. 30,861,483
11/16/2000 AGG-GASIII 36,777,800. -30,861,483
11/16/2000 AGG-GAS 37,015,232. -31,053,419.
EFF_DT PORTFOLIO_ID NEW OLD
11/16/00 LAVORATO-FIN -36,060,600. -36,060,600.
11/16/00 LAVORATO-TEXAS -6,716,337. -6716337.
11/16/00 LAVORATO-CND -10,455,397. -7,411,853.
11/16/00 LAVORATO-CNT -7,823,233. -7,479,112.
11/16/00 LAVORATO-WEST -29,332,789. -29,332,789.
11/16/00 LAVORATO-EAST -14,962,485. -14,962,485
Bilal
|
{
"pile_set_name": "Enron Emails"
}
|
The Late Day Rotation for Preschedule coverage is as follows:
Monday - Lisa
Tuesday - Stacy
Wednesday-Donald
Thursday - Diane
Friday - Susie
Please refer late calls for preschedulers who have left for the day to the
late day person.
|
{
"pile_set_name": "Enron Emails"
}
|
Let's schedule a time to talk. Sara
|
{
"pile_set_name": "Enron Emails"
}
|
When: Friday, January 11, 2002 10:00 AM-11:00 AM (GMT-06:00) Central Time (US & Canada).
Where: ECS -05990
*~*~*~*~*~*~*~*~*~*
|
{
"pile_set_name": "Enron Emails"
}
|
1. Phillips Production / Peoples:
Price: @ $2.95/Mcf
Term: 1/1/2000 - 11/30/2000
Est. Volume: 500/MCFD (Actual Volume will vary.)
I have no way of verifying the actual volume. Chris Germany and Angie
Zeman will try to get into CES's PNG pool via E-Script. This may be the
only way to verify actual volumes. I have a call into Phillips to see if
they might have a pipeline statement verifying volumes.
2. Braxton Oil & Gas / EQUITRANS (Sitara #220864):
Price: 100% TCo Appalachian Index, less gatthering and/or processing
Term: 4/1/00 forward
The $3.086 price was for the period 11/1/99 through 3/31/00 for 2,000
Dth/month with the balance @ 100% TCo Index, less gathering and/or
processing.
The original CES deal, done on 7/28/99 for the period 11/1/99 - 3/31/00, was
structured as follows:
18,000/month CNG @ $3.086, balance @ 100% CNG Index
10,000/month TCo @ $3.086, balance @ 100% TCo Index;
2,000/month EQUITRANS @ $3.086, balance @ 100% TCo Index.
Above prices less gathering and/or processing.
John
Wade R Price@ECT
08/22/2000 05:32 PM
To: John M Singer/Corp/Enron@ENRON
cc: Mary Theresa Franklin/HOU/ECT@ECT
Subject: Phillips Production PNG gas
For July, Phillips for PNG billed 12234 in volume (4391 at 3.02 and 7843 at
2.95) Sitara only has a deal for the 2.95 on 301/day=9331. Can you
clarify the pricing and volumes?
Also, I left you a voice mail about Braxton pricing for their Equitrans
production. Please reply.
Thanks
WRP
|
{
"pile_set_name": "Enron Emails"
}
|
For your files. I sent the executables to Lauri Allen.
---------------------- Forwarded by Gerald Nemec/HOU/ECT on 04/19/2000 03:20
PM ---------------------------
Rodney Rogers@ENRON
04/19/2000 02:39 PM
To: Gerald Nemec/HOU/ECT@ECT
cc: Ginger Causey/HOU/ECT@ECT, Kevin Kuehler/Corp/Enron@ENRON, Lauri A
Allen/HOU/ECT@ECT
Subject: Revised Cost Estimate w/o Income Tax Gross-up Charge for Temporary
Meter & Regulator Station for Midcon Carbon Black
Gerald,
As agreed, I think that we need to send Midcon first two pages of cost
estimate to cut down on questions. Attached is the file. Call with
questions.
Thanks,
Rodney
|
{
"pile_set_name": "Enron Emails"
}
|
Thanks Victor!
|
{
"pile_set_name": "Enron Emails"
}
|
Energy Committee:
Here are the minutes from last week's EC meeting, along with Mukesh's 'High
Reliability Option under RTP tariff filing with CPUC' memo, the 'proposed
outline for the SVMG / NRDC joint report', and the 'return on investment for
Dr. Barbara Barkovich'.
- NRDC-SVMG Rpt Outline for EC.doc
- Energy Committee Meeting Minutes 7.11.doc
- Memo to pge 071101.doc
- return on investment for Dr Barkovich 1st half of 2001.doc
- return on investment for Dr Barkovich 1st half of 2001.doc
|
{
"pile_set_name": "Enron Emails"
}
|
thanks for the update. has eric groves gotten with you regarding the
H.Galleon, and the oman gas?
Eric Gonzales
10/27/2000 11:01 AM
To: Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject: Re:
I am not sure what the fee is but yes there has already been a firm
commitment to speak at the meeting (Haug days). I tried to get out of it but
too late. We are turning our presentation into an EOL push for electronic
trading for LPG and LNG.
I will run down if we actually have to pay 200 grand as well. Brochures -
yes there is a draft floating around but I have told these guys that I do not
want anything put together specifically for the meeting. I thought we could
wait till we start making some cash and have a better handle on who we want
to focus on in terms of customers
Eric.
From: Jeffrey A Shankman 27/10/2000 15:28
To: Eric Gonzales/LON/ECT@ECT
cc:
Subject:
Are we sponsoring gas tech (in houston) Nov 15 ish for $200,000? What's up
with the brochures? Yes? No? Your call on all of this.
Jeff
|
{
"pile_set_name": "Enron Emails"
}
|
t: please print for me. thanks. mhc
---------------------- Forwarded by Michelle Cash/HOU/ECT on 07/14/2000 09:06
AM ---------------------------
Enron North America Corp.
From: Hector McLoughlin 06/20/2000 03:29 PM
To: Michelle Cash/HOU/ECT@ECT
cc:
Subject: Time Line
Michelle,
This is to the best of my recollection from my daytimer, scheduler, and phone
log.
Let me know if you need anything else. Please keep me in the loop.
I'd like to know when Sally is briefed.
Thanks, hgm
|
{
"pile_set_name": "Enron Emails"
}
|
498837 has been changed to Natsource.
499013 - Mike Swerzbin disputes this checkout - has 190.00 price in trade log
and checked out at that price with his broker at APB. Now they're having APB
look into it. I'll let you know when they resolve the price.
Kate
Kerri Thompson@ENRON
01/17/2001 02:23 PM
To: Kate Symes/PDX/ECT@ECT
cc:
Subject: apb checkout
498837 not apb
499013 should be 180.00
thanks
|
{
"pile_set_name": "Enron Emails"
}
|
Please see the following articles:
Sac Bee, Wed, 4/4: "Davis' solutions may be in trouble: New plants built
in California don't have to sell electricity here, state lawyers conclude"
Sac Bee, Wed, 4/4: "Davis' solutions may be in trouble: Skepticism is now
growing
among Democrats over a plan to purchase transmission lines"
Sac Bee, Wed, 4/4: "PUC to probe money transfers "
Sac Bee, Wed, 4/4: "Dan Walters: Politicians seek shelter as energy
Armageddon looms"
San Diego Union, Tues, 4/3: "Rate jump lurks for customers of SDG&E "
San Diego Union, Tues, 4/3: "PUC expected to approve new incentives to cut
power usage"
San Diego Union, Tues, 4/3: "Davis warns of spring problems, urges
conservation incentives"
LA Times, Wed, 4/4: "Energy Firms' Mixed Message Is Focus of Inquiry"
LA Times, Wed, 4/4: "Probe of Utility Money Transfers Ordered"
SF Chron, Wed, 4/4: "Worst Power Shortage Likely In May and June, Davis
Warns "
SF Chron, Wed, 4/4: "Vocal Citizens Berate PUC
Police remove several protesters"
SF Chron, Wed, 4/4: "PUC faces angry backlash to electricity rate increases
"
SF Chron, Wed, 4/4: "California regulators face angry backlash to
electricity rate increases"
SF Chron, Wed, 4/4: "Developments in California's power crisis"
Mercury News, Wed, 4/4: "Power gap greatest in May, June"
Mercury News, Wed, 4/4: "Already a power giant, state may build plants"
Orange County, Wed, 4/4: "Manager of AES' Huntington Beach plant becomes a
controversial
figure amid plans to expand capacity"
Orange County, Wed, 4/4: "PUC gives 'interruptibles' a way out"
Orange County, Wed, 4/4: "Davis to give TV address on energy crisis Thursday"
Individual.com, Wed, 4/4: "Power Supplier Files Lawsuit Against Pacific Gas
and
Electric Company; Dynamis, Inc. Seeks to Suspend Power Purchase Agreement
in Order to Provide Power to Grid"
Energy Insight, Wed, 4/4: "Resurrection of Residential Energy-Efficiency
Programs"
------------------------------------------------------------------------------
-----------------------------------------
Davis' solutions may be in trouble: New plants built in California don't have
to sell electricity here, state lawyers conclude
By Carrie Peyton
Bee Staff Writer
(Published April 4, 2001)
California can't require builders of new power plants to sell electricity
here, even as a trade-off for super-fast environmental review, lawyers at the
state Energy Commission have concluded.
Their position, reached despite Gov. Gray Davis' vow that new megawatts "will
stay in California," emerged as part of a fast-track approval for expanding a
south state power plant.
It comes as the agency that oversees plant licensing is whittling away at the
presumption that emergency "peaking" plants installed this summer will be
temporary. Some of the peaking plants - to be used only at times of highest
energy demand - are now proposed to stay in place 30 to 40 years.
Both issues have bubbled up quietly during California Energy Commission
reviews, sometimes addressed only indirectly in staff reports.
"This is a major public policy issue for all of California. If we're building
these plants on an expedited basis and we're not getting any electricity out
of it, why are we doing it?" asked William Workman, Huntington Beach
assistant city administrator.
The answer, according to the Governor's Office and the Energy Commission, is
twofold. First, the plants are needed no matter what, because the entire West
is power poor. And second, it looks like a California sales clause would
violate federal interstate commerce law.
"We're not supposed to take protectionist action against our fellow states,"
said Bill Chamberlain, chief counsel to the Energy Commission. He said
numerous Supreme Court decisions have held that a state can't use its
regulatory powers - such as permitting processes - to give its residents an
economic advantage.
Although there is no guarantee, the Governor's Office, power plant builders
and the state Environmental Protection Agency say most of the plants being
rushed to life will probably end up selling to the state Department of Water
Resources.
"The people who are building these power plants know very well that we expect
it to be used in California, and we're confident that it will be," Davis
spokesman Roger Salazar said.
Cal-EPA Secretary Winston Hickox said the "preponderance" of new peaking
plants will devote their electricity to California.
"We will do everything that we can to encourage that the energy produced as a
result of our bending over backward to be accommodating is sold to
California. We're not there yet, but I believe we'll get there," Hickox said.
He also said the three-week reviews of peaking plants have cut no corners in
terms of fundamental environmental standards.
Two of those plants scheduled for Energy Commission votes today were praised
by environmentalists as having relatively low emissions of smog-forming
compounds, but they still were concerned by the 21-day review.
"If you're having a quick review, a plant shouldn't be allowed to continue
for more than the summer," said Gail Ruderman Feuer of the Natural Resources
Defense Counsel.
The first peaking plant approved by the commission, the United Golden Gate
Project in San Mateo County, was given permission to run for three years.
But the next two, in San Diego and Palm Springs, are being recommended for
indefinite approval, and their builder, InterGen North America, said it
intends to keep them running for 30 to 40 years.
"There's no way affected communities can know what's going on with the
processes that are so short," said Sandra Spelliscy, general counsel of the
Planning and Conservation League. "I don't want to say negative things about
that particular peaker (but) ( I think we're going to wake up in six to 12
months and realize we did a lot of stuff that we regret."
In Huntington Beach, city officials say they are largely pleased with the
fast-track process that protected most of their major concerns over a
proposal by AES to quickly revive two mothballed steam turbines at its
seaside plant.
But a slower review process would have offered even more, Workman said. It
would have delayed the plant for results of studies on sea life injured or
killed by cooling water intakes and potential increases in ocean pollution.
He worries that his city's residents gave up those protections without any
certainty that California will benefit from the extra 450 megawatts AES will
be able to crank out.
Huntington Beach sought a California buyer clause in the AES permit, which is
scheduled for an Energy Commission vote next week, but it was rejected in a
cryptic report that only notes the commission staff has taken no stand on the
issue.
AES would have opposed such a provision, because it believes the Energy
Commission has no authority to tell it where to sell, said Aaron Thomas, a
manager at AES Pacific.
"In our case, there is no need to have a shotgun to our head," he said. AES
is negotiating to sell all 450 megawatts to the state.
Meanwhile, the governor acknowledged what an Energy Commission report
outlined last week - that his goal of 5,000 more megawatts online by July
will not be met.
"We have a real challenge in the early part of the summer," Davis said
Tuesday. "We do have more than 4,000 megawatts coming online by late summer.
Usually, the challenge is in August and September. This year, the challenge
may well be in May and June."
The Bee's Carrie Peyton can be reached at (916) 321-1086, [email protected].
Emily Bazar of The Bee Capitol Bureau contributed to this report.
------------------------------------------------------------------------------
---------------------------------------------
Davis' solutions may be in trouble: Skepticism is now growing among Democrats
over a plan to purchase transmission lines
By Emily Bazar
Bee Capitol Bureau
(Published April 4, 2001)
A deal that Gov. Gray Davis had touted as a potential solution to the state's
energy crisis is faltering, as talks with the utilities have yet to produce
concrete results and lawmakers grow increasingly skeptical.
For weeks, the administration has claimed progress in its negotiations with
Pacific Gas and Electric Co. and Southern California Edison to purchase about
32,000 miles of the transmission grid in exchange for helping the utilities
pay off billions of dollars in debt.
Though talks are moving forward with Edison, little headway has been made
with PG&E.
Now, a new contingent of naysayers is emerging from within the Capitol -
Democratic legislators who would be asked to approve the deal.
Convinced that a takeover of the transmission grid presents too many
obstacles, some top lawmakers are suggesting utility bankruptcy or other
alternatives might be better for the state.
"The governor feels very strongly that bankruptcy should be avoided at all
costs," said state Sen. Jackie Speier, D-Hillsborough, immediately after she
and other state Senate Democrats met with Davis on Tuesday.
"But there's growing sentiment in the caucus that bankruptcy is not the worst
thing in the world. ( We'd have more control, in many respects, over our
destiny."
It has been seven weeks since Davis first publicly indicated that he favored
a takeover of the power transmission grid.
Shortly thereafter, on Feb. 23, he announced an "agreement in principle" with
Edison, laying out a conceptual deal to buy the utility's transmission lines
for $2.76 billion.
On the same day, Davis acknowledged he needed to buy PG&E's share of the
transmission grid, as well as San Diego Gas & Electric Co.'s, to make his
rescue package viable.
But Davis still has not reached an "agreement in principle" with the two
remaining utilities and continues to negotiate with Edison over details.
Administration officials presented PG&E representatives with a proposed
agreement Tuesday, the first time in three weeks the two sides had met.
Republican legislators have long opposed buying transmission lines, and
Democrats increasingly are questioning the deal.
Democratic support began to dwindle two weeks ago, when the state was hit by
two days of unexpected rolling power blackouts. The blackouts were caused in
part by the unanticipated shutdown of some alternative energy providers,
which had not been paid by utilities for months.
Many legislators expected the Democratic governor to work out a deal with the
small generators before the blackouts hit, and they blame him for letting the
situation get out of hand.
Now, many are taking critical looks at the governor's bid to purchase the
transmission lines and believe the plan contains too many pitfalls.
For example, a state purchase of transmission lines would need federal
approval because they are part of an interstate system.
By some estimates, that approval process could take as long as two years. The
state would not be able to sell bonds to finance the purchase of the
transmission lines until the deal is blessed by the federal government.
Then there's the cost. Senate President Pro Tem John Burton, D-San Francisco,
long an advocate of the deal, said the administration - which has reportedly
offered as much as $7 billion for the utilities' shares of the grid - would
be paying "too much."
"This is not supposed to be a bailout," he said. "This is supposed to be a
purchase based on fair market value."
As a result of these and other sticking points, some legislators believe the
utilities can't be saved through state intervention.
"I think we're going to end up in a bankruptcy at this point," said Sen.
Debra Bowen, D-Marina Del Rey. "I just don't see any of it coming together."
Bowen said she wants the state to be prepared if utilities opt for, or are
forced into, bankruptcy.
Should the utilities enter bankruptcy proceedings, there is a 20-day interim
period during which the state, or any other creditor, can attempt to persuade
the court to forbid bankruptcy.
Bowen said some work has been done to prepare for that, but it "needs to be
updated."
In addition, senior legislative staff members met with the governor's
negotiators a week ago, urging them to prepare contingency plans in case of
bankruptcy.
PG&E spokesman John Nelson declined comment on a report that the utility's
board recently voted narrowly against entering Chapter 11 on a voluntary
basis.
The utility still believes that bankruptcy is not a solution, he said, "but
that conclusion is re-evaluated on a daily basis in light of actions by the
(Public Utilities Commission) and the state."
Nelson said bankruptcy represents a substantial risk because the proceeding
"would turn over the utilities to a federal bankruptcy judge whose powers are
not well defined."
Speier said she and other Democrats believe the governor should consider
seizing hydroelectric or other power plants or levying a "windfall profits
tax" against generators selling electricity at exorbitant prices.
Despite growing pessimism among legislators, Davis continues to insist that
the transmission deal will prevail.
"I believe we will purchase the transmission lines, and that will allow us to
make needed improvements," he said Saturday about the status of negotiations.
On Tuesday, Davis asked television stations for time to address state
residents on Thursday evening about "California's energy emergency." The
governor had previously promised to announce his position on state utility
rate increases.
Davis also indicated he has made plans should the federal government reject a
future deal.
If that happens, he said, the state will attempt to acquire the utilities'
hydroelectric plants.
"Plan B would be to take hydro assets in lieu of the transmission lines,"
Davis said. "They are not worth as much in book value, but they generate
revenue every year, which the transmission lines don't do, so they are very
valuable."
The Bee's Emily Bazar can be reached at (916) 326-5540 or [email protected].
------------------------------------------------------------------------------
----------------------------------------------------
PUC to probe money transfers
By Dale Kasler
Bee Staff Writer
(Published April 4, 2001)
SAN FRANCISCO - With protesters being ejected for storming the stage, state
regulators Tuesday launched an investigation into how California's two
near-bankrupt utilities shipped billions of dollars in profits to their
parent corporations.
The Public Utilities Commission voted 4-0 to determine whether the parent
companies should have to send any money back to the utilities, which have
been nearly bankrupted by soaring wholesale power costs.
The PUC also took steps to approve a formula for how much the utilities must
reimburse the state for its power purchases.
Utility executives said the formula could significantly worsen their
financial plight and vowed to fight the plan. Commissioners called the
utilities' warnings premature but said they had to act to protect the state
treasury.
The formula also sets a $13.4 billion ceiling on the bonds the state can sell
in order to finance the power purchases by the Department of Water Resources.
While the formula is a crucial if arcane element of the state's plan to fix
the energy crisis, the PUC was upstaged by several dozen activists seething
over the 30 percent rate increase the commission granted last week to Pacific
Gas and Electric Co. and Southern California Edison.
For 90 minutes, speaking one by one, the protesters from the Green Party and
other groups scolded the commissioners and urged the seizure of generating
plants. They led supporters in chanting, "Public power now!"
A Davis woman, Lellingby Boyce, led the crowd in chanting, "PG&E, stop
pimping off me." Several speakers challenged the commissioners to attend a
meeting they've organized on rate hikes. Only PUC Commissioner Geoffrey Brown
committed to attending.
Then protesters went beyond talking. Mary Bull declared, "This meeting's a
sham," and walked briskly toward the dais where commissioners sat. About a
half-dozen other protesters followed but were halted by California Highway
Patrol officers.
Officers escorted about dozen people from the building, including a man who
was dragged out. There were no arrests.
Brown called the disruption "the height of undemocratic behavior" but said
he'd still attend the activists' meeting.
Then the commissioners voted to initiate the probe into the relationship
between the utilities and their holding companies. Audits have shown that
Edison shipped $4.8 billion in profits to its parent, Edison International,
over five years, while PG&E sent $4.6 billion to parent PG&E Corp.
Edison called the probe "unnecessary and redundant," while PG&E said earlier
investigations "found nothing improper or illegal in the (parent) company's
relationship with the utility."
The two utilities said they'll be hurt by the PUC's calculation of the
California Procurement Adjustment - a measure of how much utility revenue is
available to send to the water department. The department has been buying
power on behalf of PG&E and Edison since mid-January.
Both utilities said there isn't nearly as much money available as the PUC
believes, and the calculation could cost them billions.
"Rates aren't high enough now for both (the department) and Edison," said Jim
Scilacci, the utility's chief financial officer.
Commissioners, who will determine in about two weeks just how much utility
money to send to the water department, are walking a fine line.
The two utilities are nearly bankrupt. Between them, they expect to take $6.8
billion in post-tax charges to earnings April 17, according to Securities and
Exchange Commission filings.
But with the state water department having spent more than $4 billion on
power purchases, the PUC wants to send as much money as possible to the
state.
"A lot of our focus at this point is in preserving the state Treasury,"
Commissioner Carl Wood said later.
With an eye toward summer, the PUC also approved new conservation incentives
for customers of the three big investor-owned utilities.
The Bee's Dale Kasler can be reached at (916) 321-1066 or [email protected].
Bee Staff Writer Carrie Peyton contributed to this report.
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Dan Walters: Politicians seek shelter as energy Armageddon looms
(Published April 4, 2001)
There's been a subtle but unmistakable shift in the political atmosphere that
envelops California's energy crisis.
Politicians have concluded that the crisis is largely beyond their control
and the die is more or less cast. Whatever fate decrees - massive summer
blackouts, soaring utility bills or even the bankruptcy of the state's
utilities - will happen, and politicians from Gov. Gray Davis downward are
scrambling to insulate themselves from voters' anger and single out rivals
for blame.
No one is saying that publicly, of course, but the fatalistic mood is very
apparent in the Capitol, whose denizens have dropped their preoccupation with
energy and moved to other matters. Legislative committees are working on the
hundreds of bills that had been stalled for three months while the special
committees that had been holding almost daily sessions on the energy crisis
have gone into semihibernation.
Last weekend's Democratic state convention in Anaheim was dominated by fears
that when the crisis hits home, the party's dominance of the Capitol will
backfire. "Just remember Jimmy Carter," state Controller Kathleen Connell
warned fellow Democrats, adding that they will have "no excuses" for
perceived failure to deal with the crisis forthrightly. "We will be
accountable on Election Day 2002," she said.
Next year's elections are very much on Davis' mind, since he'll be seeking a
second term and polls indicate that his approval ratings have declined
sharply in recent weeks. He devoted much of the weekend to defending his
actions, saying, "I believe we've moved at warp speed to address this
problem," and trying to pin blame on Republicans.
Republicans, meanwhile, sense that the crisis gives them an avenue of escape
from the dungeon of irrelevancy to which they had been exiled by heavy losses
in the last three elections. The only remaining statewide GOP officeholder,
Secretary of State Bill Jones, is running for governor by accusing Davis of
mismanagement, and Republican Assembly members dumped their leader, Bill
Campbell, on grounds that he had been insufficiently aggressive vis-a-vis
Davis.
The political positioning reflects the reality that the crisis shows every
sign of worsening. Although Davis' office is distributing a brochure entitled
"Meeting the Energy Challenge" to defend the governor's actions, it's
apparent that none of the steps the governor has taken is bearing much fruit.
The state is spending at least $50 million a day on emergency power
purchases, but what was supposed to be a short-term program has evolved into
a monthslong drain on the state's rapidly shrinking budget reserves. The
long-term supply contracts that were supposed to replace daily spot purchases
have bogged down, and without firm contracts and a revenue stream to pay for
them, Wall Street is reluctant to market the bonds the state wants to float.
Many authorities now believe Davis' decision to step into the power purchase
market in January was a strategic error because it gave power suppliers a
deep new pocket to tap just as the utilities themselves ran out of credit.
Davis, meanwhile, is refusing to embrace a rate increase approved by the
state Public Utilities Commission, which sends a mixed message to Wall
Street, and efforts to resolve problems with unpaid bills from power
generators and have the state acquire the utilities' intercity transmission
grid have stalled, perhaps permanently.
The crisis may careen totally out of control as summer arrives, raising the
specter of elderly and/or ill Californians dying from having their air
conditioners or medical equipment shut down. And the utilities are closer to
bankruptcy now than at any other point in the nearly yearlong crisis.
Plan A isn't working, and there is no Plan B - except for bankruptcy. With
Armageddon looming, politicians have retreated into the bunker, hoping to
protect themselves from what could be a firestorm of anger.
The Bee's Dan Walters can be reached at (916) 321-1195 or [email protected]
.
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Rate jump lurks for customers of SDG&E
By Ed Mendel
UNION-TRIBUNE STAFF WRITER
April 3, 2001
SACRAMENTO -- Last year, San Diego was on the front line of the electricity
crisis, but this year it's more like a rearguard action -- a lower priority
treated with less urgency.
State regulators last week imposed the biggest rate increase in California
history on the customers of the two biggest utilities, Pacific Gas and
Electric and Southern California Edison.
But for better or worse, as the Public Utilities Commission plans to meet
today in San Francisco, it's unknown when the commission will impose a rate
increase on San Diego Gas and Electric customers or how big that increase
will be.
PUC expected to approve new incentives to cut power usage
?
The Legislature enacted urgency legislation in September that capped SDG&E
rates after bills doubled and tripled for some customers, when the utility
became the first to be deregulated.
A bill that would extend the SDG&E cap to an estimated 4,500 businesses and
some residences, which stalled when Democrats tried to use it as leverage to
get Republican votes on other issues, passed an Assembly committee yesterday.
"They are the only customers in the state who are paying the day-to-day rates
and cost of electricity," said Sen. Dede Alpert, D-Coronado, the author of
the bill.
Gov. Gray Davis proposed a "20/20" conservation plan last month, a 20 percent
cut in utility bills for a 20 percent cut in energy use when compared with
the same summer month last year.
But some say the plan is unfair to SDG&E customers, who cut energy use last
summer because of soaring bills. Assemblyman Juan Vargas, D-San Diego, wants
the comparison for SDG&E customers to be with the same month in 1999.
"We are looking into it," said Roger Salazar, a Davis spokesman. "It's a
concern."
The rate increase proposed by SDG&E -- 2.3 cents per kilowatt hour -- is
significantly lower than the 3-cent increase imposed by the PUC on the
customers of PG&E and Edison last week.
An SDG&E spokesman said the PUC has asked the utility to participate in
discussions of a rate increase, effective June 1, that is expected to
encourage conservation by imposing the highest rates on the biggest users.
"As for specifics pertaining to us, I don't know," said Art Larson of SDG&E.
Commissioner Carl Wood said the PUC is looking at a number of issues,
including the fact that SDG&E rates were capped by legislation, unlike the
rates of the other two investor-owned utilities.
"We are looking at whether we have the authority to change rates, and if we
do, by how much -- and things like that," Wood said.
PUC President Loretta Lynch said yesterday that she plans to hold hearings
throughout the state as the regulatory agency designs the specifics of the
new rate increase.
"I think it's really key and critical that we have input not just from folks
who can hire lawyers to be at the PUC in San Francisco, but from all
Californians and all businesses," Lynch said.
Businesses may get some of the biggest rate increases. Legislation exempts
residences that use up to 130 percent of the "baseline," a minimum amount of
electricity that varies with climate zones.
Lynch said a question has arisen about whether the PG&E and Edison rate
increase was effective immediately. Bills will not increase until May or
later, and the plan was to add the amount owed since March 27 to ratepayer
bills in monthly installments.
"We have asked for additional briefing on that," said Lynch, offering little
explanation.
The governor, who called the rate increase premature, may make a proposal of
his own in two weeks. He has asked for information on various factors,
including state spending to buy power for utility customers.
The state has spent about $4 billion, which will be repaid by a bond that
will be paid off by ratepayers. The PUC is taking a series of steps that will
give the state money from the monthly bills paid by utility customers.
Lynch said yesterday that the state will receive $3 billion to $3.5 billion a
year, enough for a bond of $12 billion to $14 billion -- by far a record for
the biggest municipal bond issue in the nation.
State Treasurer Phil Angelides had hoped to obtain a bridge loan of $5
billion by the end of last month, easing the drain on the state general fund.
But a spokeswoman said "obstacles" have developed that Angelides plans to
discuss tomorrow at a news conference.
The PUC also is scheduled to consider a revised program today that will
encourage businesses to agree to have their power "interrupted" this summer,
in exchange for lower bills and protection from blackouts. Some guidelines
for blackouts also may be set.
"Facing rolling blackouts on an almost routine basis is a completely new
phenomenon," Wood said. "It's not something that I think we have experience
in in any developed country, until very recent times."
Lynch also will propose an investigation into whether the parent firms of
utilities should help pay off the debt of utilities, a move urged by consumer
groups.
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PUC expected to approve new incentives to cut power usage
ASSOCIATED PRESS
April 3, 2001
SAN FRANCISCO ) With summer and the threat of hours of rolling blackouts
drawing ever closer, California power regulators are expected Tuesday to
expand programs they hope will coerce businesses to cut electricity use in
trade for cheaper rates.
Under the Public Utilities Commission plan outlined Monday by Commissioner
Carl Wood, businesses can contribute to California's desperate cause by
volunteering to turn off their power for up to 120 hours during a three-month
period in exchange for a 15 percent discount on their electricity bills.
The power interruptions will be limited to a maximum of 6 hours per day and
24 hours per week. The caps are designed to avoid a repeat of what happened
in January when the businesses in a previous voluntary program were required
to suffer 120 hours of blackouts in a span of just a few weeks.
The frequency of the outages caught some businesses off guard and almost
caused a gasoline shortage by shutting off the power to key pipelines for
extended periods.
As the PUC work to stave off future troubles, managers of the state's power
grid continued a Stage 2 power alert early Tuesday morning. The Independent
System Operator called for energy conservation Monday after gusty winds
yanked down Southern California power lines, keeping 3,000 megawatts of
imported electricity from reaching California.
The ISO calls a Stage 2 alert when electricity reserves drop below 5 percent.
and Stage 3 when reserves drop below 1.5 percent.
It could take up to 10 days to repair all the state's downed lines, said
spokespeople for the ISO and the Los Angeles Department of Water and Power.
The downed lines crowded an already strained transmission bottleneck that
transfers electricity up the state, ISO spokesman Patrick Dorinson said
Tuesday morning.
Additionally, power plants that would have produced 12,900 megawatts were
down for repairs. Another 3,000 megawatts from alternative energy providers
who are owed more than $1 billion by two near-broke utilities were also
unavailable to grid operators.
One megawatt is roughly enough power for 750 homes.
In Sacramento, an Assembly energy committee approved six power-related bills,
including two that aim to increase electricity generation with incentives for
building power plants.
One bill would give cities and counties that approve large power plants
additional state aid equal to 25 percent of the property tax the plant brings
in.
The estimated $62.5 million in state incentives is designed to encourage
local governments to allow power plant construction within their boundaries,
said the author, Assemblywoman Rebecca Cohn, D-Sarasota.
Another bill would give $53.25 million in incentives primarily to small power
plants that can be built quickly to serve specific commercial customers. Both
bills now go to the Assembly Appropriations Committee for consideration.
There were no developments announced Monday in Gov. Gray Davis' efforts to
reach deals to buy 26,000 miles of transmission lines owned by the state's
three financially troubled investor-owned utilities.
PUC President Loretta Lynch said Monday she planned to end months of delay
and officially open an investigation into the conduct of the parent companies
of the nearly bankrupt utilities Pacific Gas and Electric Co. and Southern
California Edison Co.
The inquiry will focus on allegations that the parent companies have hoarded
cash and assets that should have been used to ease the utilities' financial
crisis.
The commission is expected to approve a key accounting benchmark that will
authorize the state to issue anywhere from $12 billion to $14 billion to buy
electricity. The maximum amount, based on a formula created by state
lawmakers, is higher than the $10 billion envisioned just a few months ago.
Lynch said she hoped the new energy-curtailment program will help cut energy
demand. The old program curtailed demand by as much as 3,200 megawatt hours.
Companies that already contributed 120 hours of voluntary power outages this
year could sign up and receive additional discounts.
Businesses also can make money by agreeing to sell part of their usual energy
load for $350 per megawatt hour during crisis periods. Regulators might be
willing to pay businesses even more for the extra energy, depending how much
money power wholesalers demand on the spot market this summer.
The California economy already has been hit with the double whammy of rising
electricity bills and an energy shortage that has triggered rolling blackouts
in January and March.
Now, regulators find themselves paying businesses to curtail their operations
so the damage doesn't become even worse this summer.
Regulators aren't sure how much the new incentive program will cost the
state, but they believe California stands to lose even more if businesses
aren't paid to reduce their energy usage.
Blackouts are "threatening to almost become an everyday experience," Wood
said Monday as he made his case for the new business incentive plan.
Depending on how much the state can conserve, California is expected to
suffer anywhere from 20 hours to 200 hours of rolling blackouts this summer,
based on the estimates of industry experts.
Because the state won't substantially increase its energy supply by this
summer, cutting electricity demand represents the state's best chance of
minimizing the expected blackouts.
In another move expected to lower energy usage, the PUC last week approved a
rate increase of as high as 42 percent for customers of Edison and 46 percent
for customers of PG&E.
Lynch said regulators are still collecting information to create a tiered
rate structure that will impose the largest increases on the biggest
electricity users.
The higher rates might not show up in customer bills until May or June, but
Lynch said she wants the higher prices to be retroactive to March 27.
With the latest incentives offered by the state, it's conceivable that some
businesses might find it more profitable to simply close their plants for
days at a time and sell their energy to the state, Wood said.
But Wood believes it's more likely that companies will remain open and make a
little extra money by slightly reducing their power usage.
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Davis warns of spring problems, urges conservation incentives
By Steve Lawrence
ASSOCIATED PRESS
April 3, 2001
SACRAMENTO ) Gov. Gray Davis urged lawmakers Tuesday to quickly approve $1.12
billion in energy conservation incentives to ease a warm-weather power crunch
he said could hit as early as next month.
The Assembly Appropriations Committee approved one conservation bill after
changing it, over the author's objections, to limit how much agricultural
customers could have power shut off during rolling blackouts.
The chairwoman of the Senate Appropriations Committee put off a vote on
another conservation measure at least until Wednesday, saying senators needed
more time to study the legislation.
Davis met for about two hours with Senate Democrats and urged them to pass
the conservation bills this week so the programs start working as soon as
possible. The two bills have been moving slowly through the Legislature for
the last month.
The governor's office announced later in the day that Davis had requested
time from television stations for a five-minute statement Thursday evening on
the energy situation.
The governor said the state could face its biggest power shortage in May or
June because new power plants capable of producing 4,000 megawatts of
electricity won't be coming online until late in the summer.
"Usually, the challenge is in August and September," he said in a dimly lit
hallway outside the Senate lounge. "This year it may well come in May or
June."
He said he hoped to avoid more rolling blackouts, but he added, "We are
hoping for the best and planning for the worst."
One of the bills, by Assemblywoman Christine Kehoe, D-San Diego, would
allocate $408 million for energy efficiency and conservation programs,
including $50 million for rebates for consumers who buy new, more
energy-efficient refrigerators.
The bill also would includes:
) $60 million to distribute subcompact fluorescent lights and other
energy-saving devices through community organizations.
) $50 million for grants or loans to low-income residents or small businesses
to make buildings more energy efficient.
) $50 million for large businesses that install electricity meters that
charge the customer more for power during peak demand periods.
The Senate Appropriations Committee discussed the bill for more than an hour
Tuesday but put off a vote at least until Wednesday.
The other measure, by Sen. Byron Sher, D-Stanford, was sent to the Assembly
floor Tuesday by the Assembly Appropriations Committee.
It would allot $710 million for conservation and efficiency efforts,
including $240 million to help low-income Californians weatherize their homes
and pay their natural gas and electricity bills.
It also includes $50 million for incentives for agri-businesses to buy
energy-efficient equipment and $50 million to install energy-saving
technology in state buildings.
Sher objected to an amendment added by the committee to allow officials to
cut off power to agricultural customers no more than four hours a day and 20
hours a month during power emergencies.
Sher said the amendment had no place in a conservation bill.
The committee's chairwoman, Assemblywoman Carole Migden, D-San Francisco,
said the amendment was pushed by Assembly leaders and refused to change it.
The meeting with Senate Democrats was the second that Davis has talked behind
closed doors with lawmakers to discuss the state's energy crisis. He met with
Assembly Democrats last week and plans to sit down with Assembly Republicans
on Wednesday.
In a speech Saturday to the state Democratic Party convention, Davis said
Republicans caused the state's power problems by pushing for utility
deregulation. He also complained they had not offered a "constructive,
comprehensive solution to the problem."
Asked what he would tell GOP lawmakers Wednesday, the Democratic governor
said he would "explain the challenge and just tell them they can be part of
the solution or part of the problem."
Although there were some raised voices during Tuesday's meeting, Sen. Tom
Torlakson, D-Martinez, said the session with Davis was "very positive" and
that he was "much more confident" about how the state is dealing with its
power problems.
"We got some good information we had not had before," he said.
But Sen. Jackie Speier, D-Daly City, said Davis and his aides didn't know if
the state's two biggest utilities had followed a Public Utilities Commission
order to set aside money to repay the state for its power purchases.
She said if the utilities go bankrupt "that money could be sucked up" by
other creditors.
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Energy Firms' Mixed Message Is Focus of Inquiry
Deregulation: Senate panel will investigate whether suppliers were being
misleading when they promised lower rates for consumers while they were also
predicting bigger profits for investors.
By ROBERT J. LOPEZ and RICH CONNELL, Times Staff Writers
?????In the summer of 1999, a top official with a major player in
California's power market testified during a congressional committee hearing
in support of speeding up deregulation. Unleashing market forces, said the
Dynegy Inc. executive, would ensure "maximum customer savings" and "low-cost
power."
?????That same month, the Houston-based firm made a far different pitch to
Wall Street: Deregulation and major swings in electricity prices would boost
revenue and stock value. "We know how to take advantage of volatility spikes
across the gas and power market," Chief Executive Officer Charles Watson
declared in a publication targeting large investors. "The energy
marketplace," he predicted, "will simply get more volatile."
?????Dynegy was not alone, a review of federal filings, company documents and
public records shows. In the years since California's pioneering deregulation
plan was approved, other major out-of-state energy suppliers were sending
similar, seemingly contradictory signals to the public and stock buyers.
?????Now, those divergent messages--electricity prices will fall but
corporate revenue and profits will climb--will be a key focus of a special
state Senate committee charged with investigating the alleged manipulation in
the power market.
?????"How you can tell your investors you're about to make a whole ton of
money in the very short term, and tell the consumers of California you're
about to get lower rates?" said Sen. Joe Dunn (D-Santa Ana), a former
consumer attorney who is heading the legislative probe.
?????Investigations by the state attorney general and federal regulators are
continuing, but remain largely secret.
?????The Senate panel could offer the most open and wide-ranging examination
yet of alleged misconduct among power sellers. The bipartisan panel expects
to begin requesting documents from power producers as early as today and
begin hearings in a few weeks. Committee members stress that they are hoping
the power companies will cooperate but are ready to issue subpoenas if
necessary.
?????Suppliers Deny Misleading Public
?????The legislative probe comes as many state officials are moving
aggressively to expose alleged market manipulation and overcharges totaling
billions of dollars by the power suppliers.
?????"Somewhere along the line, there may be a skunk in the woodpile. And if
there is, we need to find out about it," said K. Maurice Johannessen
(R-Redding), the committee's ranking Republican.
?????Another panel member, Sen. Debra Bowen (D-Marina del Rey), noted that
all companies try to maximize profits. "But [we want] to understand how the
market was manipulated and how sellers took advantage of the market."
?????The power traders strongly deny acting improperly or sending misleading
signals to the public.
?????"Hogwash," said Tom Williams, spokesman for North Carolina-based Duke
Energy. Spokesmen for Dynegy said there was nothing inconsistent in the
statements of their executives.
?????The companies maintain that California's problems stem from soaring
electricity demand, lagging power plant construction and a faulty
deregulation plan adopted by the Legislature in 1996. "You have a flawed
structure there," said Dynegy spokesman John Sousa.
?????Sousa and executives of other power suppliers say their comments to the
general public and to Wall Street are not contradictory because unfettered
competition--not the California model--would have created opportunities to
both make money and cut rates.
?????Still, regulators, lawmakers and ratepayer groups note that only half
the promises made by the power dealers have been realized so far--their
earnings and stock prices have risen at record rates as electricity prices
have soared.
?????"The big lie was, while they were telling ratepayers to 'Trust us, we're
going to lower your rates,' they were planning the entire time to raise the
rates," said San Diego attorney Michael Aguirre, a former federal prosecutor
who specialized in fraud cases. Aguirre is representing state ratepayers in a
class-action lawsuit against the power companies.
?????Just last month, California's independent grid operator reported that
many power sellers "used well-planned strategies to ensure maximum possible
prices." Potential overcharges could total nearly $6.3 billion.
?????The Senate panel wants to track information that Dynegy and other
generators were providing to the investment community in the 1990s as a
possible way of determining whether they entered the California market with
plans to run up electricity costs. Among many other things, the committee
plans to seek internal projections of how the firms expected wholesale prices
and profits to rise under deregulation.
?????Members also want to know how the suppliers expected to recoup billions
in outlays for California power plants being unloaded by regulated utilities.
Some of the purchases were far above book value, stunning analysts.
?????"What did they know that the rest of us didn't at the time they were
purchasing those generations facilities?" asked Dunn. "They knew something."
?????One thing the power wholesalers say they did know was that tight power
supplies in California would probably boost prices, at least for a time.
?????"They were going anywhere where they thought energy [use] would spike
upward," recalled market analyst Joan Goodman, who was familiar with company
pitches. "California was one of those places because it didn't have
sufficient [power] plants."
?????Duke Energy projected that prices would rise after 2000, although the
company says it did not foresee the huge increases that occurred, according
to spokesman Williams.
?????However, when the company sealed one of the first packages of power
plant purchases in the state in 1997, Chief Executive Officer Richard Priory
said in a press release it would "deliver greater value" to California
customers.
?????The publicity spin was similar when Edison's sprawling beachfront power
plant in El Segundo changed hands the following year. "Consumers in
California will begin to benefit from more competitively priced electricity
and more vibrant economy," announced Craig Mataczynski, vice president of
Minneapolis-based NRG Corp., a partner in the purchase with Dynegy.
?????Big Growth Was Predicted
?????Utilities reaping profits from plant sales also trumpeted the consumer
windfall theme. Electricity rates would drop 20% by 2001, Pacific Gas &
Electric's top executive, Robert Glynn, said in early 1998. "There is no
product bought on a daily basis that has such a predictable downward price
trajectory into the future."
?????But to its Wall Street audience, the power suppliers emphasized climbing
revenues.
?????Atlanta-based Southern Co., now Mirant, told investors in 1999 that its
plan to buy plants and market power had brought the company to the "doorstep
of significant growth opportunities."
?????"We believe our strategies will result in the best shareholder return
available," Bill Dahlberg, then-chief executive officer, said shortly after
buying three California plants.
?????Mirant spokeswoman Jamie Stephenson said assurances given the public and
assumptions directed to Wall Street were "just a different way of delivering
the same message." The firm was saying it would be "reliable to shareholders
and reliable to consumers."
?????Now, with rolling blackouts and record electricity bill increases,
federal and state authorities are alleging that large energy suppliers played
the power market too hard.
?????Last month, the Federal Energy Regulatory Commission said it found
evidence of $124 million in "unjust and unreasonable" charges during the
severest periods of electricity shortage. The commission, often criticized
for being too lenient on private power companies, ordered the firms to refund
the money or further justify the charges.
?????Some firms are contesting the findings, saying the prices they charged
were justified.
?????Investigators and regulators have faced a vexing challenge trying to
unravel the complex financial workings of the large power traders. The
companies closely guard information, and some recently refused to comply with
subpoenas from the state Public Utilities Commission, which is also probing
the power market.
?????Whether the Senate investigating committee will have the resources and
tenacity to get much further remains to be seen. But Democrats and
Republicans alike insist they are serious about untangling how the power
market went haywire.
?????"I haven't seen that much smoke where there hasn't been a fire," Dunn
said.
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Probe of Utility Money Transfers Ordered
Finance: PUC wants to know whether payments to holding companies were proper,
and whether parent firms gave all the help they could to subsidiaries.
Companies deny any impropriety.
By TIM REITERMAN and NANCY RIVERA BROOKS, Times Staff Writers
?????SAN FRANCISCO--After dozens of protesters assailed them for a recent
electricity rate hike, state regulators Tuesday ordered an investigation into
the transfer of billions of dollars from utilities to parent companies and
whether the parents failed to help them during the energy crisis.
?????"This order is absolutely necessary to establish the credibility for any
rate hike," said California Public Utilities Commission member Geoffrey
Brown. "We should be assured no assets were transferred imprudently to the
parent companies and no assets in the parent were available" to help
financially troubled utilities.
?????The commission adopted the order on a 4-0 vote during an uproarious
meeting that started with 1
hours of public testimony and was disrupted
repeatedly by a few dozen protesters who chanted "public power now" and urged
state takeover of the utilities.
?????The PUC probe targets Pacific Gas & Electric Co., Southern California
Edison Co., San Diego Gas & Electric Co. and their respective holding
companies.
?????Spokesmen for the parent companies--PG&E Corp., Edison International and
Sempra Energy--denied any impropriety and said previous PUC audits have found
no wrongdoing.
?????"The commission, which is probably faced with one of the greatest
challenges since the state was formed in 1850, is wasting its time reviewing
old ground," said PG&E Corp. spokesman Greg Pruett.
?????Commissioners expressed concern that the utilities transferred billions
of dollars to their holding companies while experiencing financial
difficulties. They said the parents evidently did not help out the utilities,
which sought rate increases to cover their excess costs.
?????"We will examine whether this apparent failure violates [PUC
regulations] that the holding company give 'first priority' to the capital
needs of its utility subsidiary," the order said.
?????The PUC said the parent companies disbursed much of the money as
dividends, stock repurchases and other payments.
?????Sempra spokesman Art Larson dismissed any suggestion that the parent
neglected SDG&E, noting that it invested $324 million in the utility last
year. "It's the most in the past seven years," he said. "That speaks for
itself."
?????PG&E Corp.'s Pruett said millions of dollars in dividends and loan
repayments to shareholders would have been made whether there was a holding
company or not. "It's a specious argument [by the PUC]," he said. "It's a
smoke screen."
?????Since early February, the commission had repeatedly delayed ordering the
investigation, in part to avoid jeopardizing the state's recent negotiations
for the purchase of the power grid and other assets of Southern California
Edison and Pacific Gas & Electric Co., which say they are billions of dollars
in debt and in danger of bankruptcy.
?????Edison International Chief Financial Officer Ted Craver declined Tuesday
to say whether Edison is close to signing an agreement, noting, "Discussions
are at a critical point right now."
?????Under the proposed deal, the state would purchase Edison's massive
high-voltage transmission system for $2.76 billion and receive other assets.
The utility could use the cash to restructure debt.
?????"It is not a done deal; it is very close to final," said Joseph Fichera,
a consultant representing Gov. Gray Davis in negotiations with Edison.
?????However, a top utility executive, speaking on the condition of
anonymity, said, "There are serious disagreements on major issues."
?????The state's talks with PG&E, which had been dormant for weeks, resumed
Tuesday as that utility's negotiators met with the governor's staff,
according to a company official.
?????If a deal for transmission lines can be struck, it is subject to
approval by federal regulators.
?????Davis said Tuesday that if federal officials reject any deal, his "Plan
B" is to seek state ownership of private utilities' hydroelectric plants.
?????"We are then entitled to have assets of comparable value," Davis told
reporters. "We have told utilities by that we mean their hydro assets,
because those are moneymakers."
?????PG&E, which operates more hydroelectric plants than Edison, has
repeatedly made it clear that it does not intend to give up those operations.
?????Davis said he is buying five minutes of television time at 6:05 p.m.
Thursday to discuss California's energy situation.
?????The PUC, in other action to ease the energy crisis, on Tuesday adopted a
measure that allows the Department of Water Resources to sell $12 billion to
$14 billion in bonds to help pay for the state's power purchases for
cash-starved utilities and their customers.
?????That is a significant increase over the maximum $10 billion approved by
the Legislature.
?????The PUC next must devise a formula to divide customer electricity
revenue among the utilities, power providers and the Department of Water
Resources.
?????Edison executives said they fear that the PUC is underestimating
electricity costs--in particular those of the alternative, natural gas fired
generators that the commission recently ordered the utilities to resume
paying. Even with last week's rate increase of about 40%, Craver said
customer revenue could fall short, which may add to the utility's debt.
?????"At best, the utility is standing still: Its cash position has not
improved," said Craver. "At worst, it's going backward."
?????A controversial PUC program that pays companies to use less electricity
got an overhaul to make it more attractive to business and more useful in
helping to avoid blackouts.
?????Companies that no longer wish to participate in the so-called
interruptible power program will be allowed to leave without penalty, but
must repay any discounts received since Nov. 1.
?????Julie Puentes, executive vice president of the Orange County Business
Council, said the group is pleased that businesses will no longer be
penalized for past failures to interrupt power. But she said the decision
does nothing to help companies that did comply and lost business as a result.
?????"They were good corporate soldiers," Puentes said.
?????Companies receive discounted rates in exchange for agreeing to reduce
power use when supplies are tight, but in the last year companies have been
asked to cut power dozens of times or face big fines.
?????The new program limits power interruptions to no more than six hours a
day, four days a week and 40 hours a month. Other programs will allow
customers--even groups of residential customers--to be paid for reducing
power use, and expand a Southern California Edison operation that
automatically turns off some air-conditioners.
?????The commission heard more than three dozen speakers Tuesday during its
public comment period, and several protesters were ejected for disruptions.
?????Protesters challenged the commission to attend a community meeting at a
San Francisco school on April 18. Commissioner Brown agreed, saying, "I hope
you treat me as courteously as we tried to treat you."
---
?????Times staff writers Dan Morain and Carl Ingram in Sacramento contributed
to this story.
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Worst Power Shortage Likely In May and June, Davis Warns
Lynda Gledhill, Chronicle Sacramento Bureau
Wednesday, April 4, 2001
,2001 San Francisco Chronicle
URL:
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/04/04/M
N107852.DTL
Sacramento -- Gov. Gray Davis acknowledged yesterday that the state would
fall short of its goals for increased power generation this summer and warned
that the toughest phase of the energy crisis might be just weeks away.
Davis said May and June would be the most critical time for rolling blackouts
because several planned new power plants would not be on line. He said only
4,000 megawatts of new power would be flowing by summer's end, a sharp drop
from the 5,000 megawatts he had promised in February to have on line by the
start of summer.
"I hope we don't have major disruptions," the Democratic governor said. "But
we're hoping for the best and preparing for the worst."
Davis' frank admission came after a meeting with Senate Democrats to discuss
the energy crisis. Many lawmakers have expressed frustration with the lack of
information coming from Davis and his aides as the energy crisis drags on.
The governor plans to discuss the crisis during a five-minute statewide
television address at 6:05 p.m. tomorrow.
Despite the gloomy forecast, Davis said he thought California would be
generating more power than it needs in three years, but "we have to get
through the next two (years)."
Yesterday everyone agreed that only conservation and luck would prevent
summer blackouts.
"Everyone's concerned," said Sen. Debra Bowen, D-Marina del Rey, chairwoman
of the Senate's energy committee. "It's not possible for me to be more
concerned. We're hearing from businesses about the economic impact of the
interruptions of power supply. They are more concerned with the reliability
than the price."
The Public Utilities Commission approved last week a tiered electric rate
increase averaging 40 percent in the hope that higher prices would encourage
conservation.
Lawmakers might take even more drastic action. Some senators said there is
growing support for using the state's power of condemnation to seize private
power plants.
Under the state's 1996 deregulation plan, the major utilities were required
to sell many of their power plants to private firms. State Sen Jackie Speier,
D-Hillsborough, said senators now believe the state should take over those
generating plants.
CALL FOR BOLD ACTION
State Sen. Don Perata, D-Oakland, said he and several other lawmakers have
told the governor he must take bold action so people can be confident in
their leadership.
"I told him he needs to sell energy the same way he sold education," Perata
said, adding that he supports taking over the power plants.
"If in fact we're being taking advantage of by a school-yard bully, we need
to put a roll of pennies in our fist and cold-cock the guy," Perata said.
Speier said the governor did not dismiss the condemnation idea outright.
Other lawmakers believe that there is also support for a windfall-profits tax
on private generators that have made huge profits during the power crisis.
Money raised by the profits tax could be returned to consumers or to the
state for its power purchases, which have topped $3.7 billion so far this
year.
Meanwhile, Davis aides resumed talks with Pacific Gas and Electric Co.
yesterday to purchase the utility's power transmission system.
The administration wants to buy the transmission lines to help restore
financial solvency to the state's investor-owned utilities, including Pacific
Gas and Electric Co. The utilities would then be able to use the money to pay
off their $14 billion debt.
Southern California Edison already has tentatively agreed to sell the state
its transmission lines for almost $3 billion.
Negotiations for PG&E's transmission lines have bogged down. Davis said he
also is considering a backup plan to acquire PG&E's hydroelectric plants
should PG&E or Uncle Sam scuttle the transmission system deal.
PLANS THREATENED
"Part of the negotiations is that if the transmission lines purchase is not
approved by the federal government, we would still get an asset like the
hydro plants," Davis said.
As the crisis wears on, Davis has become a leading proponent of energy
conservation. Davis has promised a 20 percent rebate on power bills to all
Californians who reduce their electricity consumption by one-fifth beginning
June 1.
Davis continued his push yesterday, encouraging lawmakers at yesterday's
meeting to pass several conservation bills this week. But two key
conservation bills faced difficult hearings yesterday.
An Assembly bill that would spend $400 million on various conservation
efforts stalled in the Senate Appropriations Committee because the Davis
administration had not agreed to it.
The second bill, by Sen. Byron Sher, D-Palo Alto, which would allocate $700
million for conservation measures, has been languishing for weeks. It passed
the Assembly Appropriations Committee yesterday over the objections of the
author, after negotiations between Democrats and Republicans the night
before.
E-mail Lynda Gledhill at [email protected].
,2001 San Francisco Chronicle ? Page?A - 1
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Vocal Citizens Berate PUC
Police remove several protesters
David Lazarus, Chronicle Staff Writer
Wednesday, April 4, 2001
,2001 San Francisco Chronicle
URL:
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/04/04/M
N196936.DTL
The normally subdued San Francisco chambers of the state Public Utilities
Commission rang out with chanting, song and even poetry yesterday as Bay Area
consumers turned out in force to protest an average 40 percent rate increase.
About half a dozen protesters were escorted or dragged from the auditorium by
California Highway Patrol officers.
"You no longer represent the public," Oakland resident Joel Tena told the
commissioners. "You represent big business. You are cronies for the
corporations."
Most speakers called on the PUC to support seizure of power plants by the
state and a tax on energy companies' profits. They also criticized the
commissioners for what protesters termed "back-room deal-making."
"Every one of you people should wake up in a prison cell for robbery," said
San Francisco resident Judy Brady.
The commissioners remained expressionless throughout nearly two hours of
public testimony. At the end, though, after repeated interruptions and
chanting, PUC member Geoffrey Brown voiced his irritation.
"A disruption of this body represents the height of undemocratic behavior,"
he said. "The Green Party should be aware that if they want to be taken
seriously, they must abide by the legal processes."
A man in a Green Party T-shirt shouted back, "Civil disobedience is a
response of necessity." He was immediately escorted from the hall by a CHP
officer.
VOTES ON SEVERAL ISSUES
Protests aside, the PUC also found time for some important business. Among
yesterday's actions:
-- The commission approved a series of measures intended to promote
conservation and ease the threat of blackouts this summer. However, it
remained unclear who will pay the multibillion-dollar price to implement the
programs.
-- An investigation was begun into money transfers between California's
near-bankrupt utilities and their affluent parent companies. The PUC wants to
know if the transfers violated state law.
-- Pacific Gas and Electric Co. was blocked from selling off a Kern County
power plant and ordered to restore the mothballed facility to operational
status.
-- PG&E was ordered to study the environmental effect of upgrading power
lines running between the southern and northern halves of the state. A
midstate bottleneck now leaves Northern California more vulnerable to power
failures.
Consumers were equally displeased yesterday with the PUC, utilities, power
companies and Gov. Gray Davis, who has portrayed himself as having been out
of the loop when his appointees on the commission approved the largest rate
increase in state history last week.
SONG OF PROTEST
Lellingby Boyce, a retired Oakland schoolteacher, got the audience singing
along with her original song, "PG&E Stop A-Pimping Off Me."
Among the lyrics: "It's clear to us consumers we're the jokers getting
screwed. I'm reading now by candlelight, wrapped in blankets day and night."
Meanwhile, San Francisco poet David Alt offered a loftier critique of the
PUC's rate increase. "Your stench of unspoken arrogance disgusts us," he read
aloud.
A number of speakers took the commissioners to task for overlooking the
hardship of rate increases on low-income and elderly people.
"I thought you would look out for our best interests," said Marie Harrison, a
resident of San Francisco's Bayview-Hunters Point district. "But my faith is
gone. I can't believe you overlooked us."
"It makes me angry when the utilities tell us to cut back," agreed Berkeley
resident Jenna Woloshyn. "We're already using less electricity, and we can't
pay for it."
Eva Skoufis said she moved to the United States from Greece in 1968 to escape
the military dictatorship that had taken control of the country. She now owns
a coin laundry in San Francisco's Noe Valley and said her energy bills have
tripled in recent months.
'CAPITALISTIC DICTATORSHIP'
"I came from one dictatorship," Skoufis said. "Now I face a capitalistic
dictatorship. I want to believe that democracy in this country works."
Mary Bull, a San Francisco computer consultant, addressed the PUC with a
plastic handcuff attached to her $243 PG&E bill.
"Anyone who believes that you are anything more than Gov. Davis' political
lackeys are gravely mistaken," she said. "This hearing is a sham."
Bull then called on the crowd to join her in taking over the commissioners'
dais and declaring the meeting adjourned.
As protesters swarmed forward, CHP officers raced down the aisles and began
herding people outside.
One protester, San Francisco student David Russitano, had to be dragged from
the hall.
RULES OF BATTLE
Before yesterday's meeting, CHP Sgt. Ed Saenz had spoken quietly with
consumer activist Medea Benjamin. He politely told her that she would not be
able to return if he was forced to throw her out.
Benjamin said she understood but noted that her left shoulder was hurt. "You
can pull on this one," she told Saenz, "but not this one."
"OK," the officer replied.
After Bull brought the raucous hearing to a close, Saenz made sure he was the
one to escort Benjamin outside.
E-mail David Lazarus at [email protected].
,2001 San Francisco Chronicle ? Page?A - 6
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PUC faces angry backlash to electricity rate increases
MICHAEL LIEDTKE, AP Business Writer
Wednesday, April 4, 2001
,2001 Associated Press
URL:
http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/04/04/state0
345EDT0115.DTL
(04-04) 06:37 PDT SAN FRANCISCO (AP) -- While California Gov. Gray Davis
urged lawmakers to approve $1.12 billion in energy conservation measures,
state power regulators bore the brunt of the public's outrage over rising
electricity rates during an animated hearing Tuesday.
In strident remarks delivered in crowd-pleasing rap songs, indignant poetry
and pleas of poverty, utility customers blasted the Public Utilities
Commission for its March 27 decision approving electricity rates increases of
more than 40 percent on average for customers of Pacific Gas and Electric Co.
and Southern California Edison Co.
While the details differed during 90 minutes of venting, the gist of the
statements shared a common theme. Virtually everyone portrayed the state's
energy watchdogs as the lapdogs of both the utilities and the power
generators reaping huge profits at California's expense.
``You are cronies for big business,'' sneered Oakland resident Joel Tena.
``Your stench of unspoken arrogance disgusts us,'' said San Francisco
resident David Alt as he read from an acerbic poem.
The backlash aimed at the PUC came on the same day that the regulators ended
months of delay and agreed to investigate for signs of financial misconduct
at the parent companies of PG&E, SoCal Edison and San Diego Gas and Electric.
The inquiry will focus on whether the holding companies, PG&E Corp., Edison
International and Sempra Energy Corp., milked the nearly bankrupt utilities
for cash and hoarded profits from their unregulated businesses that should
have been used to help bail out the utilities.
Forced to pay more for electricity on the wholesale market than they could
charge their customers, the two utilities say they have run up combined debts
of about $14 billion in 10 months.
If the PUC probe finds evidence of wrongdoing, the holding companies could be
fined and forced to inject more cash into the ailing utilities, a move that
might reverse the recent rate increases.
Insisting that they have done nothing wrong, the utility holding companies
described the PUC investigation as a waste of time.
Meanwhile in Sacramento, the Assembly Appropriations Committee sent three
power-related bills to the full Assembly that would fund energy efficieny
programs and speed up the siting of power plants and cap the rates of large
business customers of San Diego Gas and Electric Co., the only customers in
the state currently paying the full market rates for power.
Independent power producers say Davis' hopes for 5,000 more megawatts of
power by summer will probably fail to emerge because existing plants that
produce thousands of megawatts are going off-line because they haven't been
paid in months.
A megawatt is enough electricity to power about 750 homes. The state was free
of power alerts Wednesday morning as reserves stayed above 7 percent.
In other actions, the PUC also approved measures meant to encourage more
businesses to volunteer for power outages of up to 40 hours per month in
exchange for year-round 15 percent discounts on their bills.
The new program also will expand the power customers exempted from future
energy-saving blackouts to include all hospitals. Previously, utilities were
allowed to cut power to hospitals with backup generators or fewer than 100
beds.
With the expanded ``voluntary interruption'' program, the PUC hopes to free
up more power and reduce the frequency of blackouts expected to bedevil
California during the heat of the summer.
But the program also threatens to worsen the financial condition of the
utilities because it doesn't include financing provisions to cover the 15
percent discounts.
The program will cost SDG&E about $1.5 billion annually, estimated PUC
Commissioner Henry Duque, who proposed adding a new surcharge to finance the
plan.
PG&E and SoCal Edison also said the voluntary program will hurt them
financially, but couldn't provide a specific breakdown on the additional
expense.
PUC Commissioner Geoffrey Brown said the surcharge was a good idea, but the
timing was bad. ``The psychology of (a surcharge) would be disastrous for the
commission right now,'' he said. ``I could just see the newspaper headlines''
if the surcharge were passed.
The PUC rejected the surcharge 3-1.
Retired school teacher Wellingby Boyce of Davis drew the biggest reaction
when she sang a song titled ``PG&E Stop Pimping Off Me.''
``I'm reading now by candlelight, wrapped in blankets day and night,'' Boyce
rapped to a cheering audience that included protesters from the Green Party
and a grass-roots group called ``Public Power Now.''
Both groups are pushing the state to seize control of the regulated utilities
and California's electricity plants.
Other speakers told more somber stories. San Francisco Laundromat owner Eva
Skoufis, who immigrated to California from Greece in 1968, said her
electricity bill is already 2 1/2 times higher then a few months ago and
wonders whether her business can survive another price shock.
``I came here because I wanted to escape a (Greek) dictatorship,'' she said
during an interview. ``But I think we are living in a capitalist dictatorship
here.''
PUC President Loretta Lynch said she believed the protesters conveyed
widespread frustration over the rapidly rising price of power.
``I'm glad people are upset because it means they are paying attention,''
Lynch said. ``Hopefully, we can all band together against the energy
wholesalers responsible for this mess.''
------------------------------------------------------------------------------
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California regulators face angry backlash to electricity rate increases
MICHAEL LIEDTKE, AP Business Writer
Wednesday, April 4, 2001
,2001 Associated Press
URL:
http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/04/04/nation
al0008EDT0402.DTL
(04-04) 07:23 PDT SAN FRANCISCO (AP) -- Some Californians have turned to song
and rhyme to vent their anger at the commission that approved electricity
rate increases for customers of the state's cash-strapped utilities.
``Your stench of unspoken arrogance disgusts us,'' said San Francisco
resident David Alt, reading an acerbic poem.
``I'm reading now by candlelight, wrapped in blankets day and night,'' rapped
retired teacher Wellingby Boyce of Davis, drawing applause Tuesday at a
meeting of the Public Utilities Commission.
The commission last week approved rate increases of more than 40 percent for
customers of Pacific Gas and Electric Co. and Southern California Edison Co.
On Wednesday morning, the state was free of power alerts as reserves stayed
above 7 percent. State power grid officials issued a Stage 2 alert -- meaning
reserves were below 5 percent -- on Monday after transmission lines were
downed by high wind, interfering with electricity imported from the
Northwest.
Commissioner Geoffrey Brown dismissed the protesters at Tuesday's meeting as
unruly ``self-appointed activists'' who were long on rhetoric and short on
solutions.
Commission President Loretta Lynch said she believed the protesters conveyed
widespread frustration over the rapidly rising price of power.
``I'm glad people are upset because it means they are paying attention,''
Lynch said. ``Hopefully, we can all band together against the energy
wholesalers responsible for this mess.''
The majority of protesters belonged to the Green Party and a group called
``Public Power Now,'' which are pushing the state to seize control of the
regulated utilities and California's electricity plants.
Also Monday, the commission agreed to investigate the parent companies of
PG&E and SoCal Edison, as well as Sempra Energy Corp., the holding company
for San Diego Gas and Electric, for possible financial misconduct.
The companies said they have done nothing wrong and described the PUC
investigation as a waste of time.
The inquiry will focus on whether PG&E Corp. and Edison International milked
the nearly bankrupt utilities for cash and hoarded profits from their
unregulated businesses that should have been used to help bail out the
utilities.
Forced to pay more for electricity on the wholesale market than they could
charge their customers under the state's 1996 energy deregulation law, the
two utilities say they have run up combined debts of about $14 billion over
the last 10 months.
------------------------------------------------------------------------------
----------------
Developments in California's power crisis
The Associated Press
Wednesday, April 4, 2001
,2001 Associated Press
URL:
http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/04/04/state0
907EDT0141.DTL
, , -- (04-04) 07:47 PDT Here is a look at developments in California's
electricity crisis:
WEDNESDAY:< ?-- An Assembly committee are expected to hear a bill by Assemblyman Dean ?Florez, D-Shafter, that he calls an alternate to Davis' plan to buy the ?utilities' transmission lines. ?Florez' bill would create special districts of each utilities' properties, ?including their land, transmission lines, power plants and even their ?corporate offices. Each district would issue bonds against the property, and ?the state would assess a tax on that property to repay the bonds. If a ?utility defaulted on the taxes, the state would be first in line to take the ?property after paying the balance of the bonds. ?-- The state remained free of power alerts early Wednesday morning as ?reserves stayed above 7 percent. ?-- The University of California, Los Angeles, is expected to release a report ?on how the state's energy problems have effected the state and national ?economies. ?-- Energy Commission lawyers have decided that California cannot require ?builders of new power plants to sell electricity to California, even in ?exchange for a rushed environmental review of their projects, The Sacramento ?Bee reports. ?TUESDAY:<
-- Gov. Gray Davis asks television stations statewide to cover a live 6:05
p.m. five-minute broadcast from his office Thursday for what a spokesman says
will be a statement on energy.
-- Davis launches a new public relations effort, sending national and
California media daily updates on his efforts to solve the state's energy
problems.
-- Davis says California's hot-weather power crunch could hit as early as May
or June because new power plants will not be up and running until July or
August. He's urging lawmakers to approve more than a billion dollars in
energy conservation incentives this week to reduce the likelihood of more
rolling blackouts.
Meanwhile, Sen. Jackie Speier, D-Daly City, says after Senate Democrats meet
privately with Davis that there is growing support among senators for seizing
power plants.
-- A committee sends three power-related bills to the full Assembly: one
funding energy efficiency programs; one speeding up the siting of power
plants; and one capping the rates of large business customers of San Diego
Gas and Electric Co., the only customers in the state currently paying the
full market rates for power.
-- Independent power producers say Davis' hopes for 5,000 more megawatts of
power by summer will probably fail to emerge because existing plants that
produce thousands of megawatts are going off-line because they haven't been
paid in months.
-- Power grid managers ease the state's Stage 2 alert as demand drops and
supplies increase. The alert was declared Monday when downed transmission
lines complicated the flow of electricity up the state and about 13,000
megawatts of electricity remained off-line for repairs or maintenance.
Some 3,000 megawatts of alternative energy remains unavailable because the
generators have not been paid by utility companies in months. One megawatt
can power about 750 homes.
-- Customers and consumer advocates lambast the Public Utilities Commission
for last week's huge electric rate hikes, delivering their criticism in
everything from rap songs to indignant poetry.
-- Ending months of delay, the PUC agrees to investigate for signs of
financial misconduct at the parent companies of PG&E and SoCal Edison. The
inquiry will focus on whether the holding companies, PG&E Corp., and Edison
International, milked the nearly bankrupt utilities for cash and hoarded
profits that should have been used to help bail out the utilities.
-- The PUC approves measures meant to encourage more businesses to volunteer
for power outages of up to 40 hours per month in exchange for year-round 15
percent discounts on their bills. With the expanded ``voluntary
interruption'' program, the PUC hopes to free up more power this summer and
reduce the frequency of expected blackouts.
--The PUC approves a biological study to determine whether a critical Central
Valley transmission line known as ``Path 15'' can be expanded to ferry more
power from Southern California to Northern California.
--The PUC orders PG&E and San Diego Gas and Electric to develop a program
that will enable the utilities to turn off household air conditioners during
periods of energy shortages. Households that participate in the program,
scheduled to be introduced in the summer of 2002, would receive rebates of
$25 to $100.
-- The PUC exempts all hospitals from rolling blackouts, after urging from
the California Healthcare Association calls on the PUC to exempt hospitals
from rolling blackouts. The association says more than a dozen hospitals lost
power during two days of blackouts last month.
-- Officials at Southern California Edison Co. announce two more lawsuits
from alternative energy suppliers, bringing the total to eight. The suppliers
are suing for payments owed since November.
-- Edison says it will file its annual earnings information with the
Securities and Exchange Commission on April 17. Edison said last week that
its filing would be late.
-- In a conference call with bondholders, Edison officials say the recent PUC
rate increase of 3 cents per kilowatt hour won't do anything to help Edison
pull out of its financial problems.
An Edison analysis of the increase indicates that all of that money will go
to the state to pay for power, not to the utilities, Edison's Ted Craver
said. ``I believe that is the practical conclusion,'' Craver said. ``The
phrase `Show me the money' comes to mind. We don't know whether they intend
to take additional action, but it appears that we are standing still.''
-- A group of 10 alternative power providers issues a statement increasing
the amount they are owed by $150 million to more than $700 million. The
suppliers said they are owed by Edison and PG&E for power supplied since
November. The companies, which include EnXco, Caithness and Coram, say they
supply 3 million homes' worth of power to the state grid.
-- Western States Petroleum Association calls on lawmakers to approve a bill
exempting fuel refineries from rolling blackouts. The association says it
takes days for refineries to reopen, endangering gasoline production.
-- State Sen. Jim Battin, R-Palm Desert, warns Gov. Davis in a letter that
people could die unless the state enacts his bill to bar rolling blackouts in
areas where the temperature exceeds 105 degrees.
-- California Poultry Federation and Pacific Egg and Poultry Association warn
that summer blackouts could kill millions of chickens within minutes if power
for ventilation and cooling is cut off.
-- Crews dismantling the Rancho Seco nuclear power plant near Sacramento
begin removing radioactive fuel rods from a pool where they were cooled for
more than 10 years.
-- The stock of PG&E's parent, PG&E Corp., drops 19 cents a share to close at
$11.56. Edison's parent, Edison International, sees its stock fall 9 cents a
share to close at $12.55.
<
WHAT'S NEXT:< ?-- The Davis administration continues negotiations with Edison, PG&E and San ?Diego Gas & Electric Co. over state acquisition of their transmission lines. ?-- FERC holds a conference April 10 in Boise, Idaho, on Western energy ?issues. ?-- The House Government Reform Committee plans energy hearings in three ?California cities, including April 10 in Sacramento, April 11 in San Jose and ?April 12 in San Diego. ?< ?THE PROBLEM:<
High demand, high wholesale energy costs, transmission glitches and a tight
supply worsened by scarce hydroelectric power in the Northwest and
maintenance at aging California power plants are all factors in California's
electricity crisis.
Edison and PG&E say they've lost nearly $14 billion since June to high
wholesale prices that the state's electricity deregulation law bars them from
passing onto ratepayers, and are close to bankruptcy.
Electricity and natural gas suppliers, scared off by the two companies' poor
credit ratings, are refusing to sell to them, leading the state in January to
start buying power for the utilities' nearly 9 million residential and
business customers.
------------------------------------------------------------------------------
----------------
Power gap greatest in May, June
Posted at 10:09 p.m. PDT Tuesday, April 3, 2001
BY JOHN WOOLFOLK AND DION NISSENBAUM
Mercury News
Californians bracing for acute power shortages and rolling blackouts this
summer may see the worst of the crisis as early as next month, Gov. Gray
Davis acknowledged Tuesday.
Urging lawmakers to pass power conservation measures, Davis noted what many
energy officials have been eyeing with growing concern: that state efforts to
secure more power won't bear much fruit until late summer or fall.
Plans to obtain power contracts and portable generators for the summer are
falling short. In addition, supplies from northwest dams and alternative
energy generators are drying up.
``Usually the challenge is in August or September,'' Davis said. ``This year,
the challenge may well be in May and June.''
Underscoring the severity of the crisis, Davis announced he has asked
television stations to grant him five minutes of airtime at 6:05 p.m.
Thursday to talk about energy. The last time a governor asked to address the
public in a special broadcast was nine years ago when Gov. Pete Wilson talked
about the state's budget problems.
The state's sense of urgency comes amid growing evidence that California's
gap between power demand and available supply may be greatest in late spring
and early summer.
Meanwhile, state regulators on Tuesday adopted a rash of proposals aimed at
easing the pain of coming shortages and blackouts at a raucous hearing packed
with protesters and others seeking exemptions.
When Davis announced a series of initiatives in February to pull California
out of the crisis, he expected to have 95 percent of the state's unmet power
needs secured in long-term contracts with energy suppliers.
He launched financial incentives and streamlined approval measures to bring
new power supplies online by early to mid-summer, hoping to alleviate peak
shortages and curb runaway power prices.
Two months later, much of that has failed to materialize. The state so far
has signed contracts for just half the amount needed, and most of that power
won't be available for a few years. This year, the state has signed up about
a third of what is needed.
In addition, initiatives to put a host of small, portable generators in place
to meet peak summer power demand are lagging. Plans by the California
Independent System Operator, which runs the main transmission grid, to get
3,000 megawatts of power from these ``peaker'' plants came up with less than
half that amount.
Likewise, Davis' initiative to get an additional 1,000 megawatts of peaker
power online by the end of August has netted just 362 megawatts, with the
first plants firing up in July. The Davis administration last month extended
the deadline to the end of September, a move expected to boost the amount of
peaker power to 960 megawatts.
Other major power sources coming this summer, two Calpine Corp. plants
totaling 1,060 megawatts in July and 360-megawatts in August, have long been
in the works. They remain on schedule, but won't do anything for May and
June.
Meanwhile, supplies once counted on are evaporating. A severe drought in the
Pacific Northwest has dried up the dams that are a major source of imported
hydroelectric power for California.
And small alternative-energy producers that provide a third of the major
utilities' power have been cutting off supply, pulling some 3,000 megawatts
off the grid and contributing to blackouts last month.
The generators say they can no longer supply power because the nearly
bankrupt utilities haven't paid them, and are not satisfied with efforts by
the governor and regulators to fix that problem.
``You could easily see another 1,000 megawatts off-line by the end of the
month,'' said Jan Smutny-Jones, executive director of the Independent Energy
Producers Association.
An updated forecast from the system operator last week predicts a loss of
1,000 megawatts of hydroelectric power and the most severe shortage occurring
in June rather than August. The state is expected to be short nearly 6,000
megawatts in June, a figure that will drop to 3,500 megawatts in August as
new power sources come online.
``Because of new generation coming online later in the summer, it is May,
June and July that are going to be the tougher months,'' said system operator
spokeswoman Lorie O'Donley.
The new report did not calculate shortages for May, but shortages during that
month are certainly possible. Last year's first acute power shortage was
recorded May 22, prompting a Stage 2 alert that forced businesses to trim
power usage.
Davis spokesman Steve Maviglio downplayed the significance of the governor's
warnings about May and June. He noted that the system has proven
unpredictable and that no one expected blackouts would hit in January and
March.
``I wouldn't read too much into that,'' Maviglio said. ``It's just going to
be tight in general, and people are just going to have to conserve, beginning
now.''
To stave off a spring crisis, Davis urged Senate Democrats to pass two bills
providing more than $1.1 billion to pump up programs that provide rebates and
other financial incentives to conserve energy in homes and small businesses.
``The only way to fight back against the generators is to use less of their
product,'' Davis said. ``The less we use, the less money they make.
``The hope is, we don't have major disruptions. We're hoping for the best and
planning for the worst.''
The California Public Utilities Commission agreed to exempt all hospitals
from rolling blackouts, in which utilities cut power for an hour or so from
one circuit to the next to prevent total system failure.
The move came after hospitals, once considered exempt, complained of being
shut off during two days of outages last month.
Commissioners also revamped a program that gives rate discounts to businesses
that reduce power use on demand during shortages. They also told utilities to
implement a program that gives customers a discount in exchange for having
their air conditioners remotely switched off.
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--------------------------------
Already a power giant, state may build plants
Published Wednesday, April 4, 2001, in the San Jose Mercury News
BY DION NISSENBAUM
Mercury News Sacramento Bureau
SACRAMENTO -- Step by step during the energy crisis, California has
transformed itself into a power baron, spending billions on electricity and
looking to buy 26,000 miles of transmission lines.
But the state is about to take a far more significant step in trying to gain
control of its energy destiny: adopting a sweeping plan to build its own
power plants and become one of the largest public power authorities in the
nation.
Under the proposal, a new group of seven state officials could spend $5
billion or more to build enough generators to supply about 15 percent of the
state's power. It would also have the extraordinary power to seize existing
plants around the state.
``This is the one place where we're actually crafting an energy policy in
response to a crisis,'' said Doug Heller, a consumer advocate with the
Foundation for Taxpayer and Consumer Rights.
Although the measure has drawn little attention in a capital focused on
preventing disruptive blackouts this summer, it has moved swiftly through the
Legislature and could reach Gov. Gray Davis as soon as today. Davis, who has
repeatedly promised that the state will take control of its energy future,
has endorsed the idea.
``It comes down to a choice,'' said state Treasurer Phil Angelides, who is
sponsoring the plan. ``Do we want to hope and pray that the private sector
builds enough, or do we exercise some prudence to build enough so that we can
control our own destiny?''
The goal for supporters like Angelides is to make sure the state builds and
owns enough energy capacity so that it no longer finds itself at the mercy of
a dysfunctional market that has forced the state to spend $50 million a day
to buy electricity.
Senate President Pro Tem John Burton, D-San Francisco, and other public power
advocates view this proposal as a hammer California can use to drive down the
prices charged by out-of-state power companies, which state and federal
officials have accused of gouging California.
How it worked elsewhere
But critics worry that the proposal may create an inefficient and expensive
bureaucracy that could end up as the kind of financial boondoggle that nearly
toppled public power agencies in New York and Washington.
``I am skeptical of the idea,'' said Severin Borenstein, director of the
Energy Institute at the University of California-Berkeley. ``I am far from
convinced that the state should own generation facilities.''
As a model, supporters of the public power authority idea point to New York,
where the state has spent 70 years building a power company that produces
about a quarter of the state's energy needs.
But even members of the New York Power Authority have a hard time seeing the
similarities.
``I can't say that it wouldn't work, but I have a hard time envisioning it,''
said Jack Murphy, a spokesman for the authority.
``It's like it's going to be a grown-up power authority from the start,'' he
said. ``We kind of grew one plant at a time and the purpose was not a
crisis.''
New York set out in the early 1900s to prevent private companies from
harnessing the famous waters that cascade over Niagara Falls. At the time,
former President and New York Gov. Theodore Roosevelt backed the plans to
combat ``waterpower barons'' from taking over state rivers.
But it took decades to get the project off the ground and the agency has been
criticized for offering poor service, making bad business decisions and
creating an inefficient bureaucracy.
Even now, the agency is drawing criticism for not building enough plants in
recent years and for scrambling to prevent blackouts this summer by setting
up emergency plants in places being challenged by environmental groups.
Ashok Gupta, senior energy economist with the Natural Resources Defense
Council in New York, said the state public power programs did a good job for
years in backing conservation. But he said the board appointed by the
governor isn't acting in the public interest. Consumer activists have sued
the state agency and accused it of ignoring environmental and health concerns
to set up emergency power plants to get through the summer.
``It doesn't work that well because there is little or no accountability,''
Gupta said. ``In New York state our public power authority basically ignores
public input and that says a lot.''
Critics also point to a debacle even closer to home: Washington state. In
1983, the state public power authority was forced into what was then the
largest bond default in the nation's history in a failed bid to build two
nuclear plants.
The financial disaster has left the Washington Public Power Supply System
tagged with an unwanted nickname: ``Whoops!''
Supporters say they understand the dangers. Whether it is a public authority
or a private business, anything run by human beings runs the risk of failing.
But Angelides and others contend that the benefits far outweigh the risks.
L.A. example of success
Some point to Los Angeles, where the head of the local power authority, S.
David Freeman, has emerged as a kind of folk hero in the energy crisis. In
1997, Freeman stepped in to head a beleaguered and nearly bankrupt Los
Angeles Department of Water and Power. He slashed jobs, cut debt and is
credited with keeping cheap electricity flowing to the city's 3 million
residents.
Freeman has become a close adviser to Davis on the energy crisis, led the
negotiations with power companies for long-term contracts and is mentioned as
a possible candidate to run the new state power authority.
The new California power authority aims to work with private companies, not
drive them out of the market, and follow in the footsteps of other public
power authorities that have a strong track record of providing the cheapest
power available.
Advocates of public power are not bothered by the contention that such
entities would deter the private power companies that have been making
millions in profits during the energy crisis from building more plants.
``I find it difficult to think of anybody shedding tears for these guys,''
Burton said during the Senate floor debate over his bill. ``There has been no
one since the days of the robber barons that has gotten away with what these
guys have gotten away with.''
Contact Dion Nissenbaum at [email protected] or (916) 441-4603.
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Power player
Manager of AES' Huntington Beach plant becomes a controversial figure amid
plans to expand capacity.
April 4, 2001
By KATE BERRY
The Orange County Register
Ed Blackford, who runs the AES Huntington Beach power plant, is facing local
outrage over the state's fast track for a plan to bring two dormant
generators online by this summer
Photo: Paul E. Rodriguez / The Register
?
?
HUNTINGTON BEACH It appears as if everyone is against Ed Blackford.
Surfers hate the sight of the Huntington Beach power plant that he operates,
saying it destroys the beauty of the coastal landscape. Environmentalists
worry about the plant's effect on air and water quality. And local residents
complain that his company is driven by corporate greed and refuses to "give
back" to the community.
"Let's face it, no one wants to live near a power plant," said Blackford, a
soft-spoken chemical engineer who is president of AES Huntington Beach. "On
the other hand, everyone wants the lights to go on when they walk into a
room."
As the local public face of Arlington, Va.-based AES Corp., Blackford, 53, is
at the center of a controversy provoked by California's electricity crisis.
Residents and city officials are outraged that the Huntington Beach plant won
approval from the California Energy Commission for speedy review of a plan to
revive two dormant generators. Obtaining the proper permits for the plant
would usually have taken more than a year. But state regulators cut the
process to just 60 days under an emergency order from Gov. Gray Davis to get
more megawatts online by this summer.
The energy commission will hold a daylong hearing Monday at Huntington Beach
City Hall. The capacity expansion could receive final approval as soon as
April 18.
The quick review has struck an emotional chord in Huntington Beach, where
homeowners and beach-goers would rather see the plant, which has anchored the
coastline since the early 1960s, shut down than expanded.
"I don't think the plant has been a very good neighbor. It's a big, ugly
thing in the community," said Connie Boardman, a Huntington Beach
councilwoman. "There's no way the CEC staff and our city staff can adequately
analyze bringing these units online by this summer."
The fast-tracking means the two generators are likely to be up and running
before any environmental studies are completed.
Scientists at the University of California, Irvine, have a theory that ties
the power plant to a rash of beach closures in recent years.
The plant sucks in ocean water as part of a cooling process, and heated water
is then discharged into the ocean. There is concern that the heated water may
set up currents that draw in plumes of bacteria-laden sewage from a
sanitation outflow pipe five miles offshore. With the capacity expansion, the
plant would suck in and discharge more ocean water, possibly exacerbating the
problem, experts fear.
"We've been trying to figure out what it is about the area that makes it
contaminated," said Stanley Grant, an environmental engineer at UCI who first
hypothesized in November a link between the AES plant and contamination. The
Orange County Sanitation District followed up with a field experiment, also
in November.
Nearly a dozen studies or surveys will be conducted this summer in the area,
Grant said.
The CEC has recommended requiring AES to pay to clean up any pollution
created by the planned expansion.
Blackford is the first to admit that relations with the city are strained.
"I think there are true issues in the water and the air," he said. "There's
going to have to be conditions to make sure it doesn't create anyone's
nightmare of beach closures."
AES is taking steps to mitigate air pollution. The plant's two existing
generators are scheduled to be shut down starting this month as it installs
catalytic converters - scrubbers that could reduce smog emissions by 90
percent.
Blackford blames Southern California Edison, the plant's previous owner, for
not taking steps earlier to reduce emissions.
"Not a lot has been done at this plant for a number of years," he said.
"Clearly, Edison didn't put much money into this facility other than
maintaining the electric generation."
HAD PLANNED TO RETIRE
Blackford moved to California three years ago with plans of early retirement.
He said the white sandy beaches remind him of his grandfather's cottage in
New Jersey. He has two grown children and lives in Huntington Harbour with
his wife, a retired schoolteacher.
"Ed basically came out west to do his last stint, and it turned out to be a
hotbed of politics," said Aaron Thomas, a lobbyist for AES Corp.
Blackford found himself in the spotlight when the city launched an
unsuccessful attempt two years ago to pass Measure Q, which would have
generated millions in revenue for the city by taxing the plant's sales.
Blackford has no experience in politics. He is more a product of an
industrial corporate culture, having worked at an AES coal-fired power plant
in Pennsylvania for more than 15 years.
"Suddenly there was all this interest in the plant," he said. "And I really
wasn't that comfortable with it in the beginning."
Bill Workman, an assistant city administrator, said the state's energy crisis
has given Blackford and AES "justification" to rebuild the plant's two
dormant boilers - rather than overhaul the entire plant, something the city
has advocated for years.
"More than anything, we want a commitment that we would see the plant
eventually torn down and replaced with a contemporary,
environmentally-friendly plant, like those in Redondo Beach and Morro Bay,"
Workman said. "It's difficult because of the weak relationship the plant has
had with the community in the past."
AES' plant in Huntington Beach is not reaping the enormous profits of other
power generators. Before electricity prices soared last year, AES signed a
20-year contract to sell all power produced at the Huntington Beach plant and
its two other Southern California plants to Williams Cos. AES gets only the
contractual price from Williams, which can sell the power at much higher
market-based rates.
AES has incentive to get its two dormant units up and running quickly.
Those units would not be subject to the Williams contract, and AES could sell
the power to the state at much higher prices.
"Ed has a love for the community," Workman said. "But he also is a senior
member of the corporate staff for AES, and he's certainly seeking what's best
for the corporation and trying to balance out as best he can what's good for
the community."
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PUC gives 'interruptibles' a way out
The agency's S.F. hearing is disrupted by consumers protesting last week's
rate increase.
April 4, 2001
By KATE BERRY
The Orange County Register
Consumer advocates and ratepayers denounced state energy regulators at a
raucous meeting in San Francisco on Tuesday at which the California Public
Utilities Commission approved an opt-out provision for companies and schools
in so-called interruptible contracts with Southern California Edison.
Scores of demonstrators tried to break up the meeting to protest a rate hike
of as much as 36 percent approved by the commission last week. Chanting "Heat
and light are a right,'' the protesters forced PUC President Loretta Lynch to
demand twice, over a chorus of voices: "We will have order in this
commission.''
After almost two hours of comments from 34 ratepayers and consumer activists,
the commission approved several measures, as expected.
Regulators dramatically revised a decade-old program in which businesses and
schools received discounted electricity rates in exchange for curtailing
power use when requested during periods of peak demand. Business groups,
including the Orange County Business Council, had lobbied heavily for the
changes in the interruptible contracts, which impose heavy penalties on users
that don't cut power when requested. Customers will now be allowed to opt out
of the program and avoid paying penalties accrued since November.
"It is mostly good news,'' said Julie Puentes, OCBC executive vice president
of public affairs.
But she said businesses are still upset that they will be notified only
minutes before a rolling blackout occurs, making interruptions difficult for
manufacturers with sensitive equipment.
In all, three new programs to encourage energy conservation by businesses
were adopted. The PUC also allowed Edison to expand a program in which
residential customers agree to have their air conditioning automatically shut
off in times of power shortages.
Among the business options, one proposal will pay customers $350 a
megawatt-hour to reduce usage by at least 100 kilowatts on a same-day or
day-ahead basis. Another exempts customers from rolling blackouts if they
agree to reduce usage during each Stage 3 power alert.
Customers currently in interruptible contracts with Edison can opt out of
their contracts, either retroactive to Nov. 1, 2000, or at the start of the
next billing cycle. Those dropping out can either pay penalties accrued since
November or reimburse their utility for a 15 percent discount on rates.
The commission also launched a formal investigation into the financial
relationships between the state's two cash-strapped utilities, Edison and
Pacific Gas & Electric, and their parent companies, which have received
billions of dollars from the subsidiaries in recent years. Both corporations
objected.
"The CPUC should be taking steps to restore the credit-worthiness for
California utilities so they can build, maintain and operate a reliable
electric system,'' said Thomas Higgins, an Edison senior vice president. The
companies have said that the cash transfers from the utilities, for
dividends, taxes and other payments, were normal business practice and were
in keeping with rules set by regulators.
The commission also approved the maximum size of a state bond issue, allowing
State Treasurer Phil Angelides to move forward on selling bonds to pay for
power purchases. The bond issue, set at $13.4 billion, will enable the
state's Department of Water Resources to pay for power purchases.
The commission also voted for all acute-care hospitals to be exempt from
rolling blackouts. Previously, only hospitals with 100 beds or more were
exempt. Residential customers on life-support equipment will be notified by
their utility prior to a blackout.
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------------------
Energy notebook
Davis to give TV address on energy crisis Thursday
April 4, 2001
SACRAMENTO Gov. Gray Davis plans to deliver a five-minute statewide
television address Thursday evening to discuss California's energy crisis and
make what his office described as a major announcement.
Davis will "speak in detail about California's energy emergency," his office
said. The address will originate in the governor's Capitol office.
Also Tuesday, Davis said late spring and early summer will be the most
difficult periods for power shortages.
"Usually, the challenge is in August or September; this year, the challenge
may be in May or June," Davis said after a two-hour private meeting with
Senate Democrats. He said new power plants that are scheduled to go into
operation by late summer, including "peaker" plants, could provide 4,000
megawatts to cushion against outages. A megawatt is enough to light from 750
to 1,000 homes.
The governor also said the state would seek to acquire the utilities'
power-generating dams if federal regulators do not approve California's plan
to purchase the companies' transmission lines.
"The hydro assets would be Plan B," the governor said.
The state has spent nearly $4.2 billion to buy power for the beleaguered
utilities. A bond sale to recover that money, as well as pay for cheaper
power under long-term contracts, is planned for next month.
Investors weigh petitioning for Edison's bankruptcy
Rosemead An investor holding defaulted debt sold by Southern California
Edison told utility executives on a conference call he and other investors
are closer to having a bankruptcy court decide how to reorganize the cash-
strapped utility.
The comment came after Ted Craver, the chief financial officer of the
utility's parent, Edison International, told investors that he agreed there
has been "frustration" in waiting for a solution.
Craver said he was "somewhat amazed at how disciplined" the investors have
been holding off seeking a remedy in the bankruptcy courts.
Any three unsecured investors holding more than $10,000 in defaulted debt can
file a petition with the court to put the company into involuntary
bankruptcy. The state's second-largest investor-owned utility holds
conference calls every Tuesday and Friday for holders of the more than $696
million of debt it has defaulted on since Jan. 16.
Register staff writer John Howard and Bloomberg News contributed to this
report.
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Power Supplier Files Lawsuit Against Pacific Gas and Electric Company;
Dynamis, Inc. Seeks to Suspend Power Purchase Agreement in Order to Provide
Power to Grid
SANGER, Calif.--(BUSINESS WIRE)--April 3, 2001 via NewsEdge Corporation -
In the continuing
saga of California's energy crisis, yet another power supplier remains
non-operational because of PG&E's failure to pay for past deliveries
of power.
Dynamis, Inc. filed a lawsuit today in Fresno Superior Court
seeking payment from Pacific Gas and Electric Company (PG&E) for over
$3 million for past deliveries of power and to suspend its electric
power purchase agreement in order to allow Dynamis to resume
delivering electric power to the California electrical grid. Dynamis,
a natural gas-fired cogeneration facility located in Sanger, Fresno
County, was forced to shut down operations in February of this year
after PG&E paid it only a small portion of the amounts due for the
deliveries that Dynamis had made in December 2000 and January 2001.
"Unless Dynamis is enabled to sell power in the open market, the
facility will be forced to remain idle," said Michel Gaucher, Director
and Owner, Dynamis, Inc. "Dynamis simply does not have the financial
resources to continue extending credit to PG&E, particularly given
PG&E's refusal to make any past due payments and with no assurance of
payment for any future deliveries."
"In light of our state's recent rolling blackouts (on March 19 and
20), and given the predictions of further rolling blackouts as we
approach summer, Dynamis remains committed to finding a method to
operate its facility and sell much-needed power to the California
electrical grid," Gaucher said.
The Dynamis facility has provided power to PG&E and California
consumers since 1991 with a reliability approaching 100 percent. The
42 megawatt "qualifying facility" has the capacity to produce
electricity to supply over 40,000 homes. Dynamis is one of the largest
taxpayers in Fresno County, and provides significant financial and
community resources to the City of Sanger. Dynamis provides employment
to 25 people at the facility.
CONTACT: Dynamis, Inc. | Michel Gaucher, 514/866-2801 | or |
Steven Greenwald, 415/276-6528
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Wednesday, April 4, 2001
By Kathleen McFall
[email protected]
While much of the current dialogue about the national energy situation
focuses on supply-side solutions, interest is growing in energy-efficiency
actions and real-time pricing as a means of reducing demand.
"These efforts are far more than public relations," said Michael Reid,
consulting director at E Source, a unit of Financial Times Energy in Boulder,
Colo. "I view energy efficiency as a significant resource. It's not the
solution, but it's part of a solution that also includes new generation and
transmission."
"The cheapest megawatt you can buy this summer is the one you don't have to
purchase," California Gov. Gray Davis said recently when announcing new
conservation programs.
The California Energy Commission estimates that, without more conservation or
new plants this summer, California will be short up to 10% of expected demand
on peak use days. Farther north, the Northwest Power Planning Council in
Portland, Ore., said the hydropower-dependent region was experiencing "the
driest or second-driest (year) on record."
Buybacks and related financial incentives for large industrial customers,
such as for the aluminum industry in Washington and Oregon, were ramped up
this past summer (see "Interest in energy efficiency growing," Energy
Insight, Feb. 9, 2001). Now, in light of the continuing power crisis, the
efficiency focus is expanding to residential customers.
Resurrection of tradition
What some analysts dub "traditional" energy-efficiency programs, rebates for
appliances and windows, for example, were more common when utilities were
subject to the least-cost planning efforts of a structured regulatory
framework.
"These programs were not the result of a crisis situation. They were seen as
the right thing to do from an economic and environmental perspective. Within
the framework of least-cost planning, it made sense for the utility to pursue
energy-efficiency measures rather than develop new power," said Reid. "Over
the past few years, however, utilities pulled back from traditional
energy-efficiency programs as the industry restructured. Had the old-style
programs continued, they would have achieved a lot more by this time."
Instead, funds from traditional programs were funneled into more fashionable
"market transformation" approaches in California and elsewhere. For example,
in a 1997 decision, the California Public Utility Commission (CPUC) scaled
back rebate programs and, instead, offered incentives to manufacturers and
builders. Making energy efficiency profitable to businesses was assumed to be
a more permanent solution.
Market transformation approaches take a long-term view, but now, as
regulators and utilities need an immediate response, traditional approaches,
combined with rate hikes and innovative new real-time pricing schedules, are
once again on the table.
Using prices to encourage conservation
Some analysts believe transparent pricing is the only effective way to send
the right signals to consumers to decrease demand. In keeping with that
thinking, the CPUC raised electricity rates for millions of retail customers
by more than 40% recently, citing the need to get "electricity hogs" to
conserve power and stave off blackouts this summer. The CPUC established that
a "tiered" pricing structure, still undefined, will be put into place that
will reward customers who conserve energy and penalize those who do not.
In Seattle, the city is seeking a demand decrease of 10%. At the end of
February, Seattle City Light said weather-adjusted demand was down by 6.2%.
The utility attributes this to price-responsive conservation due to a 10%
rate increase effective in January. It expects even more savings given the
18% increase that took effect in March.
Not everyone agrees that rate increases are essential to achieving greater
energy efficiency. "Even without a price hike, there's a lot of untapped and
cost-effective efficiency measures in California and elsewhere," said Reid.
"I think the price hikes are more about keeping utilities solvent than about
encouraging conservation. The CPUC approved a huge increase because the
accountants said the utilities are in dire straits. Conservation will be a
byproduct of the higher rates; it's not the main reason for raising them."
The time-of-use pricing strategy, already common for large industrial and
commercial users, is an alternative cost-based approach that's fast gaining
converts. It encourages residential customers to decrease use while allowing
utilities to improve load management.
Last week, the Oregon Public Utility Commission (OPUC) ordered the state's
two largest private utilities, Portland General Electric and PacifiCorp, to
offer 1.2 million residential and small-business customers alternative
pricing plans, including a time-of-use approach. Customers who opt for this
plan will receive a new meter that allocates consumption into peak, mid-peak
and off-peak hours.
"These (pricing) options are important to our energy future," said Commission
Chairman Ron Eachus.
Rebates, mandates
Traditional energy-efficiency rebates also are gaining momentum as utilities
in the West resurrect programs or strengthen existing ones. In California,
PG&E recently announced new rebates for energy efficient light bulbs,
refrigerators, clothes washers and dishwashers.
"It is very likely that California will experience severe power shortages in
the coming months, and our customers' conservation efforts are going to be
critical in helping the state get through the crisis with as few blackouts as
possible," said Beverly Alexander, PG&E vice president of energy management
programs.
In keeping with California style, the state is adding twists to the
traditional approach by also offering rebates to residential users who
decrease their consumption this summer. Businesses and homeowners can earn a
20% rebate on their summer electric bills if they cut their use by 20%
compared to last year. The one-time discount will apply to bills for June
through September only.
According to the governor's press office, if only 10% of the utilities'
customers achieve the 20% reduction, it could result in approximately 3,500
GWh reduction in consumption and 2,200 MW reduction in peak consumption. This
would result in an avoided power purchase cost of $400 million to $1.3
billion.
"Instead of paying exorbitant rates to out-of-state generators, I'd rather
pay California consumers to conserve," Davis said in a statement.
While innovative, these programs present challenges. "Will the 20% reductions
be adjusted for weather, for example?" asked Reid. "How will consumers know
if they have achieved 20% before they get their bill? Consumers lack the
sophisticated meters that can give them feedback on their conservation
efforts in real time."
Gov. Davis also is invoking emergency authority to mandate even more power
savings from business and residential customers.
"All the malls, shopping centers, everything is lit up at night like it's the
middle of the day," he said to a group of investors. In response, the state
is requiring that retailers reduce their consumption of electricity on
outdoor lighting for estimated reductions of at least 40% to 60% after
business hours.
It's too soon to assess the outcome of the renewed push in the West for
energy efficiency and load management in terms of savings achieved. This
summer, obviously, will be the acid test. However, the crisis situation may
result in energy-efficiency measures and pricing innovations taking a
permanent seat at the policy discussion table. While some of the more
innovative, short-term programs may unravel as the price of power declines
with new supply, it's unlikely that demand management strategies will ever be
relegated to the sidelines again.
|
{
"pile_set_name": "Enron Emails"
}
|
Suzanne,
Please schedule this week's conference call for 930am on Wednesday, and
include the usual suspects: Sheila, Scott, Rose, Mike Barnas and Kent
Shoemaker.
Thanks,
Kay
|
{
"pile_set_name": "Enron Emails"
}
|
you're lightening up. good deal.
|
{
"pile_set_name": "Enron Emails"
}
|
------------------------------------------------------------------------------
------------------------
W E E K E N D S Y S T E M S A V A I L A B I L I T Y
F O R
May 11, 2001 5:00pm through May 14, 2001 12:00am
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------------------------
SCHEDULED SYSTEM OUTAGES:
ARDMORE DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.
AZURIX: No Scheduled Outages.
EB34 DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.
EDI SERVER: No Scheduled Outages.
ENRON CENTER SOUTH DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages
ENRON NORTH AMERICAN LANS:
Impact: EES
Time: Sat 5/12/2001 at 1:00:00 PM CT thru Sat 5/12/2001 at 5:00:00 PM CT
Sat 5/12/2001 at 11:00:00 AM PT thru Sat 5/12/2001 at 3:00:00 PM PT
Sat 5/12/2001 at 7:00:00 PM London thru Sat 5/12/2001 at 11:00:00 PM London
Outage: Move vlans for EES in Enron Building
Environments Impacted: EES in Enron Building
Purpose: Provide more capacity to the network
Backout: paste in old configs
Contact(s): Gail Kettenbrink 713-853-4524
Michael Huang 713-345-3201
FIELD SERVICES: No Scheduled Outages.
INTERNET: No Scheduled Outages.
MESSAGING: No Scheduled Outages.
MARKET DATA: No Scheduled Outages.
NT: No Scheduled Outages.
OS/2: No Scheduled Outages.
OTHER SYSTEMS:
Impact: Corp, OTS, ETS
DATE: MAY 15, 2001/2/2001 at 5:30:00 PM
Outage: Migrate DSS Server to GTHOU-APPSQ03P
Environments Impacted: DSS users will not be able to access the old server
(ENEDS01_ADAPT)after this date
Purpose: The existing server is outdated, migrating to SQL 2000 provides
increased
functionality and conforms to database platform requirements.
Backout:
Contact(s): Mary Vollmer 713-853-3381
Joe Hellsten 713-853-7346 713-545-4164
Impact: CORP
Time: Fri 5/11/2001 at 8:00:00 PM CT thru Sat 5/12/2001 at 10:00:00 PM CT
Fri 5/11/2001 at 6:00:00 PM PT thru Sat 5/12/2001 at 8:00:00 PM PT
Sat 5/12/2001 at 2:00:00 AM London thru Sun 5/13/2001 at 4:00:00 AM London
Outage: CPU replacement on server sennacca.
Environments Impacted: RMS
Purpose: Replace faulty CPU that is offline.
Backout: Restore server to old configuration.
Contact(s): Malcolm Wells 713-345-3716
Impact: CORP
Time: Fri 5/11/2001 at 5:00:00 PM CT thru Fri 5/11/2001 at 5:15:00 PM CT
Fri 5/11/2001 at 3:00:00 PM PT thru Fri 5/11/2001 at 3:15:00 PM PT
Fri 5/11/2001 at 11:00:00 PM London thru Fri 5/11/2001 at 11:15:00 PM
London
Outage: Decommission of the following servers: intra, intra-dev, conman1,
aserv1, ardent, dbadmin
Environments Impacted: Corp
Purpose: Server no longer used. The servers will be decommissioned or
redeployed where necessary.
Backout:
Contact(s): Malcolm Wells 713-345-3716
Impact: CORP
Time: Sat 5/12/2001 at 2:00:00 AM CT thru Sun 5/13/2001 at 5:00:00 PM CT
Sat 5/12/2001 at 12:00:00 AM PT thru Sun 5/13/2001 at 3:00:00 PM PT
Sat 5/12/2001 at 8:00:00 AM London thru Sun 5/13/2001 at 11:00:00 PM London
Outage: Resource and OS upgrade to server fracture.
Environments Impacted: Global company RMS ECM
Purpose: An OS upgrade is needed to provide the disk upgrade solution.
Additionanl memory is needed as well.
Backout: Attach the old disk solution and reboot to old configuration.
Contact(s): Malcolm Wells 713-345-3716
Impact: ENA
Time: Sat 5/12/2001 at 10:00:00 PM CT thru Sat 5/12/2001 at 10:15:00 PM CT
Sat 5/12/2001 at 8:00:00 PM PT thru Sat 5/12/2001 at 8:15:00 PM PT
Sun 5/13/2001 at 4:00:00 AM London thru Sun 5/13/2001 at 4:15:00 AM London
Outage: Bounce PWRPROD1 database
Environments Impacted: Enpower User
Purpose: Change some configuration to improve database performance
Backout: Use the old parameter file.
Contact(s): Tantra Invedy 713 853 4304
SITARA: No Scheduled Outages.
SUN/OSS SYSTEM: No Scheduled Outages.
TELEPHONY:
Impact:
Time: Sat 5/12/2001 at 10:00:00 PM CT thru Sun 5/13/2001 at 1:00:00 AM CT
Sat 5/12/2001 at 8:00:00 PM PT thru Sat 5/12/2001 at 11:00:00 PM PT
Sun 5/13/2001 at 4:00:00 AM London thru Sun 5/13/2001 at 7:00:00 AM London
Outage: Quarterly Maintenance - Telephone System
Environments Impacted: All
Purpose: Quarterly maintenance. While voicemail nodes are being serviced (one
box at a time), a slight disruption will be experienced.
Messages will continue to be stored but will not be delivered until each node
of voicemail is back up and operational.
CMS call center management reporting will not be availalble during this
time.
Backout:
Contact(s): Cynthia Siniard 713-853-0558
TERMINAL SERVER: No Scheduled Outages.
UNIFY:
Impact: CORP
Time: Fri 5/11/2001 at 6:00:00 PM CT thru Fri 5/11/2001 at 7:00:00 PM CT
Fri 5/11/2001 at 4:00:00 PM PT thru Fri 5/11/2001 at 5:00:00 PM PT
Sat 5/12/2001 at 12:00:00 AM London thru Sat 5/12/2001 at 1:00:00 AM London
Outage: Memory replacement for server electron.
Environments Impacted: Unify Users
Purpose: Replace faulty memory module.
Backout: Get new memory if necessary
Restart server with out memory as last resort
Contact(s): Malcolm Wells 713-345-3716
------------------------------------------------------------------------------
-----------------------------------------------
FOR ASSISTANCE
(713) 853-1411 Enron Resolution Center
Specific Help:
Information Risk Management (713) 853-5536
SAP/ISC
(713) 345-4727
Unify On-Call (713) 284-3757 [Pager]
Sitara On-Call (713) 288-0101 [Pager]
RUS/GOPS/GeoTools/APRS (713) 639-9726 [Pager]
OSS/UA4/TARP (713) 285-3165 [Pager]
CPR (713) 284-4175 [Pager]
EDI Support (713) 327-3893 [Pager]
EES Help Desk (713)853-9797 OR (888)853-9797
|
{
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|
Kay-attached is a summary of the enforceability of consequential damages
clauses under the laws of Mississippi. Greg Evans prepared the summary and
can answer any questions in my absence. Greg can be reached at
713-751-3279. I'll be on the road until Monday, but can retrieve e-mails
and voice mails.
<<2X0#01!_.doc>>
Confidentiality Notice
This message is being sent by or on behalf of a lawyer. It is intended
exclusively for the individual or entity to which it is addressed. This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure. If you are not the
named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it. If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.
- 2X0#01!_.doc
|
{
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|
The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete. Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein. Any
opinions expressed herein are solely those of the author. As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates. , 2001 Carr Futures
The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.
Crude http://www.carrfut.com/research/Energy1/crude86.pdf
Natural Gas http://www.carrfut.com/research/Energy1/ngas86.pdf
Distillate http://www.carrfut.com/research/Energy1/hoil86.pdf
Unleaded http://www.carrfut.com/research/Energy1/unlded86.pdf
Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG86.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG86.pdf
Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL86.pdf
Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606 USA
Tel: 312-368-6149
Fax: 312-368-2281
[email protected]
http://www.carrfut.com
|
{
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|
Toni: please make the offer to Josh Chapa asap. Thanks.
|
{
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}
|
This article came out today in this week's issue of Business Week. This story is one of three stories in a package that Business Week ran on Ene this week.
Steve Kean asked that I email this story to you ASAP
NOVEMBER 12, 2001
BUSINESS WEEK
FINANCE
By Mike McNamee
Commentary: Enron's Clout Won't Sway the SEC
For Securities & Exchange Commission Chairman Harvey L. Pitt, the SEC's
investigation into Enron Corp. (ENE ) could hardly have come at a worse
time. The future of Pitt's ambitious agenda of reforms in securities
regulation could depend on how well he handles this case.
Enron's political clout and close ties to President George W. Bush create
real risks for the SEC. Enron CEO Kenneth L. Lay is a longtime Bush backer,
and the company was the biggest corporate contributor to the President's
campaign. A Bush appointee, Pitt is attempting a delicate balancing act. He
has made it clear he wants to speed up the SEC's enforcement, in part by
rewarding companies that cooperate with probes. But he insists the SEC will
still come down hard on true corporate miscreants--and knows that any signs
of let-up could jeopardize the rest of his reform agenda.
Enter the Enron probe. The fine shadings of securities enforcement--where
most cases are settled by negotiated penalties, not court-imposed
fines--often make it hard for outsiders to tell whether the SEC is being
tough or lenient. But Pitt must go out of his way to make it clear that the
Enron case is handled by the book--getting the same strict scrutiny from the
SEC as any other, less connected company.
For now, top SEC aides say that's happening. The SEC Enforcement Div. in
Washington is looking into whether Enron adequately disclosed to
shareholders the risks of its complex deals with Andrew S. Fastow, the
company's former chief financial officer. Agency insiders say Pitt and his
fellow commissioners will be briefed on the case as it proceeds. But they
insist Pitt hasn't heard from the White House or Enron's other political
allies.
TOP LOBBYIST. Enron's connections are numerous. Besides Lay's links to Bush,
an Enron director, Wendy Lee Gramm, is the wife of Texas Senator Phil Gramm,
top Republican on the Senate Banking Committee. And Enron spreads its
lobbying budget--$2.13 million in 2000--across both parties. Just this year
it hired four lobbying firms with Democratic roots. Enron says it lobbies
heavily because it operates in regulated industries. It notes that electric
utilities outspend it 35 to 1.
On Oct. 31, a special committee of Enron's board hired William R. McLucas,
former SEC enforcement director, to represent it. McLucas should know that
any attempt to muscle the stock cops is likely to backfire. Pitt, who joined
the SEC out of law school in 1968, "remembers how the [Nixon-era] SEC
tainted itself by turning a blind eye to [fugitive financier] Robert Vesco,"
says an agency veteran. Pitt has too much riding on the Enron probe to let
its connections sway his judgment.
McNamee covers finance in Washington.
Copyright 2000-2001, by The McGraw-Hill Companies Inc. All rights reserved.
Terms of Use Privacy Policy
|
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|
Still talking to Sequent. We worked with them on Ford and U.S. Gypsum for the release of 7000 Dthd like last year. Trying to get Sequent to finish a 2000 Dthd peaking deal with Ford. Only working with Sequent on these two customers, especially in light of Ed's second suggestion.
-----Original Message-----
From: Breese, Mark
Sent: Tuesday, October 09, 2001 1:57 PM
To: Hodge, John
Subject: FW: VNG transportation capacity
status?
-----Original Message-----
From: McMichael Jr., Ed
Sent: Monday, October 08, 2001 12:19 PM
To: Hodge, John
Cc: Vickers, Frank W.; Jones, David; Hodge, Jeffrey T.; Breese, Mark
Subject: VNG transportation capacity
John,
I have reviewed the contracts (Asset Agreement and the GPA) and here are my thoughts regarding your request. In short, the agreements do not specifically address capacity being needed by third parties. ENA does have a right to all of their capacity free and clear of all encumbrances. Last year we did discuss this issue (the interruptible VNG customers wanting to take releases of VNG capacity), but at the time Jim Scabareti indicated that he was going to play hard ball with his interruptible shippers in year 2 (i.e. now), since VNG was really getting tight on assets due year-on-year load growth and no new capacity additions. He gave the assets up last year because he did not want to have any noise at the VSCC when the VSCC was considering the affiliate relationship between VNG and AGLES. However, as I reflect on it now, it seems to me that VNG (aka Sequent) really needs to weigh heavily the decision to release any assets to third parties through this winter (interruptible or otherwise). At a minimum, any releases should be done recallable based on weather forecasts based on some HDD amount. The profit sharing provision is the same for years 1 and 2.
My suggestion is that you do the following: (1) remind Sequent about the deliverability issue facing VNG and (2) develop a plan with Sequent for talking to Customers, so as to minimize any VSCC risk since the VSCC thinks Sequent is VNG's asset manager.
Mark Breese is back in the office tomorrow and I will confer with him as well. You might seek Jeff Hodge's thoughts as well. If you have any questions, please ask.
Regards,
Ed
|
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|
The Corporate Internal Communications team would like to thank each of the 5,142 employees who took the time to complete our survey. As promised, here are the numerical results. We will cover the survey in its entirety - including some of your individual comments and the steps we're taking to enhance our programs - in the August issue of Enron Business. Watch for it!
Survey respondent demographics:
Houston office 54.4%
U.S. Domestic, non-Houston 24.9%
International office 20.7%
Do you believe Enron's corporate internal communications programs (eBiz, eThink, Enron Business, ETV, floor meetings, etc.) are generally effective and useful?
Yes 83.3%
No 16.7%
Do you believe the information you receive in eBiz, Enron Business, eSpeak, ETV and at employee meetings is credible?
Yes 90.9%
No 9.1%
Have you ever used the following tools as an information or research resource? (Check all that apply.)
eBiz 43.2%
Enron Business 34.2%
eSpeak transcripts 23.5%
Do you read eBiz (Enron's corporate online informal news source)?
Yes 64.7%
No 35.3%
If yes, which of the following eBiz features do you read? (Check all that apply.)
Business articles 58.3%
In Layman's Terms 35.2%
Short Cuts 32.9%
The Last Word 31.2%
If no, I don't read eBiz because:
I don't have time 66.1%
I get my Enron information from other sources 30.9%
I don't find the content credible 3.1%
eBiz is posted fortnightly - every two weeks. How frequently would you like to get eBiz?
Monthly 26.9%
Every two weeks (as is) 58.0%
Weekly 11.5%
Daily (email format) 3.6%
How do you generally read Enron Business (Enron's all-employee print and online in-depth publication)?
Print 39.7%
Online 23.4%
Both 12.9%
If you read Enron Business, what do you think of the new design?
Like it 94.7%
Don't like it 5.3%
Do you ever share the print version of Enron Business with your spouse or family?
Yes 43.4%
No 56.6%
Which of the following Enron Business features do you read? (Check all that apply.)
Business articles 63.6%
The Insider 41.1%
Extreme Enron 38.5%
Community stories 38.2%
Generally Speaking? 36.3%
Back page (contests) 32.6%
Which of these eThink tools do you use?
eSpeak 31.2%
eMeet 4.2%
The ThinkBank 7.7%
What speakers would you like to see featured on eSpeak? (Check all that apply.)
Ken Lay/Jeff Skilling 52.8%
Business unit CEOs 52.2%
Subject matter experts 55.6%
External speakers 37.2%
How many all-employee meetings have you attended (or watched via IPTV or video teleconference) in the last year?
0 32.5%
1 36.6%
2 30.9%
If you have attended an all-employee meeting, did you find it to be informative and beneficial?
Yes 86.6%
No 13.4%
Do you think all-employee meetings should be held more than twice a year? (i.e., quarterly)?
Yes 44.6%
No 55.4%
What information do you want covered at an all-employee meeting? (Check all that apply.)
Business strategy 78.7%
Financial and operating results 69.1%
Human Resource issues 55.4%
Competitor information 49.6%
For Houston office only:
Irrespective of technical problems, what do you think of ETV (elevator television) as a communication medium?
Like it 90.9%
Don't like it 9.1%
Would you use ETV to advertise one of your Enron projects or campaigns?
Yes 69.6%
No 30.4%
If you have used ETV to advertise, did you find it effective?
Yes 9.1%
No 3.3%
Haven't used it 87.6%
Which ETV segments do you like? (Check all that apply.)
Enron announcements 39.4%
Streaming cable news 34.8%
Rebroadcast interviews with Ken and/or Jeff with CNN, CNBC, Bloomberg, etc. 32.5%
The Building Guy 29.8%
Vision & Values ads 13.8%
|
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---------------------- Forwarded by Jeff Dasovich/SFO/EES on 08/29/2000 10:32
AM ---------------------------
Gary Ackerman <[email protected]> on 08/26/2000 04:21:58 PM
Please respond to [email protected]
To: Bill Ross <[email protected]>, Bob Anderson <[email protected]>,
Carolyn Baker <[email protected]>, Corby Gardin
<[email protected]>, Curtis Kebler
<[email protected]>, Denice Cazalet <[email protected]>, Gene
Waas <[email protected]>, Greg Blue <[email protected]>, Jack Pigott
<[email protected]>, Ken Czarnecki <[email protected]>, Kent
Wheatland <[email protected]>, "Klemstine, Barbara A(F56661)"
<[email protected]>, Randy Hickok <[email protected]>, Rob
Lamkin <[email protected]>, Rob Nichol <[email protected]>,
robert berry <[email protected]>, Roger Pelote <[email protected]>, Sue Mara
<[email protected]>, curt hatton <[email protected]>, Jeff Dasovich
<[email protected]>, Dan Douglass <[email protected]>, Al Parsons
<[email protected]>, Bob Reilley <[email protected]>, Brian Jobson
<[email protected]>, Dave Nuttall <[email protected]>, Edmond Chang <[email protected]>,
Ken Lackey <[email protected]>, Linda Hamilton
<[email protected]>, Mark Tallman <[email protected]>,
"Richard H. Counihan" <[email protected]>, Sheryl Lambertson
<[email protected]>, Steve Fisher <[email protected]>, Steve
Ponder <[email protected]>, Tom Breckon <[email protected]>, "Wolfe, Don -
PGSO-5" <[email protected]>, Chuck Goligoski <[email protected]>,
Elaine Walsh <[email protected]>, Duane Nelsen <[email protected]>,
Reggie Howard <[email protected]>, Tim Belden
<[email protected]>, Dave Francis <[email protected]>
cc:
Subject: ISO To Participate in Super Peak Market
Folks,
Late Friday afternoon Ziad called me. The ISO Governing Board earlier
the same day turned down the ISO management's request to force SCs to
place 95% of their scheduled load in the DA market. That leaves the ISO
little choice but to venture into the energy markets to procure power to
cover their peak hours on hot days.
Terry gave Ziad the OK to proceed with placing both the APX and
California PX screens for this new product/matching-service. I am
working with the two vendors and the ISO to make this happen quickly.
We anticipate that the market will open on Tuesday, September 5, or
earlier.
Key people who you may need to contact:
ISO - Ziad Alaywan 916-351-2140 (Nancy Traweek and Jim McIntosh are
also in the loop)
PX - Ken Czarnecki 626-537-3123
PX - John Yurkanin 626-537-3124
APX - Denice Cazalet 408-517-2123
APX - Michael Heinrich 408-517-2159
Please feel free to contact me with your questions. Several of you have
not had the opportunity to attend the pre-design meetings we had at the
California PX and APX a few weeks ago, nor were you aware of the joint
WPTF/ISO meeting held last week. But in essence, what this
product/matching-service will allow you to do is post bids to sell, or
buy a 6-hour block of capacity at a firm energy price across the hours
of HE13 to HE18. You can bid at COB, Mead, PV, SP15 or NP15. You can
utilize either the CalPX or APX to post your bids, because the ISO will
be watching both screens. The block sizes are (supposed to be) 25MW.
The seller is responsible for arranging transmission to the delivery
point, and the buyer (e.g., ISO) is responsible for arranging
transmission service from the delivery point. The ISO will make its
purchase decisions for the day-of at or before 8:00 a.m. The ISO will
send out a general notice when it needs offers to sell on the super-peak
market. I expect that bids for either buy or sell will be able to be
posted at any time, 24 hours. The screens should allow parties to post
buy or sell bids at least 60 days forward of the trade day.
You are not limited to a price cap in these markets, but the ISO as a
buyer has the right to not purchase at prices above it's price cap.
I think WPTF members should be very proud that we were able to quickly
work together, and with the ISO to create this market. I have no doubt
the ISO will be offering bids to purchase starting Sept 5, and going
forward 60 days. However, who among you will be willing and able to
post bids to sell?
gba
|
{
"pile_set_name": "Enron Emails"
}
|
-----Original Message-----
From: Baughman, Edward
Sent: Friday, February 01, 2002 8:48 AM
To: Belden, Tim; Racicot, Paul; May, Tom; Semperger, Cara; Elafandi, Mo; Purcell, Mike
Subject: West Power transition of trading/sceduling activities
Please plan to attend a conference call at 11:30 AM Central (9:30 PST) to discuss logistics for transferring activities supporting non-terminated West Power contracts.
Houston: Meet in ECS 4712
Portland: MO- Please let me know what conference room phone # we should call.
Thanks
|
{
"pile_set_name": "Enron Emails"
}
|
Chris,
Below Wei explains what the option class cd column should contain. Please fix
this error before saving the file out tonight. If you have any questions let
me know.
Thanks,
Robin
---------------------- Forwarded by Robin Rodrigue/HOU/ECT on 01/17/2001
02:52 PM ---------------------------
Enron North America Corp.
From: Wei Hu 01/17/2001 02:35 PM
To: Robin Rodrigue/HOU/ECT@ECT
cc: Ganapathy Ramesh/HOU/ECT@ECT
Subject: Re: Second Try
Robin,
I have set it up for this spreadsheet and I already ran it in stage
database. The only error message I got was 'OPT_CLASS_CD INVALID'.
Option_class_cd should be one of the following: 'AMR', 'ASI', 'ASM', and
'EUR'. 'USD' in the spreadsheet is more like a currency_cd.
Wei
Robin Rodrigue
01/17/2001 01:55 PM
To: Wei Hu/HOU/ECT@ECT
cc:
Subject: Second Try
|
{
"pile_set_name": "Enron Emails"
}
|
All,
Deal Scheduling has been moved to stage and is available for testing.
Thanks,
Karen
713.345.7810
|
{
"pile_set_name": "Enron Emails"
}
|
Story on Enron's recent loss of market cap -- and explains that the pub is
NOT owned by Enron
Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 07/11/2001 08:47 AM -----
"US Publishing" <[email protected]>
07/11/2001 11:38 AM
Please respond to brice
To: "RT Reader" <[email protected]>
cc:
Subject: Restructuring Today Wednesday July 11 2001
(see attached file: rt010711.pdf)
Thank you,
Season Hawksley
US Publishing
800-486-8201
202-298-8201
- rt010711.pdf
|
{
"pile_set_name": "Enron Emails"
}
|
Please let me know if you have any changes.
Thanks,
Joannie
3-1769
|
{
"pile_set_name": "Enron Emails"
}
|
Gerald,
Per my discussions with John Grass, we have decided to allow the Force Majeure for the September 11 - 15th; however, we will not allow the September 10th Force Majeure. Please let me know if there is anything else that you need from us in order to bring this issue to closure.
Thanks,
Judy
|
{
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}
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You must be busy today.
|
{
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}
|
1. Not good. His mom was only 61 and they had just moved to a resort community outside San Antonio. His father is very bad. Russell broke up talking to me about him.
2. Inappropriate to cancel or proceed?
3. O.K.
4. O.K., I have to ensure we do not make a unilateral decision that effects Peoples choices.
5. O.K.
6. Hear you.
7. O.K., new item. Am I to be doing any type of ranking/review/PRC/appraisal/etc. of my employees? Seem to have time on my hands and desperately need to remain focused and productive.
And... please let me know if I can help you... Louise the person.
Laura
-----Original Message-----
From: Kitchen, Louise
Sent: Monday, November 26, 2001 11:14 AM
To: Luce, Laura
Subject: RE: New York, etc.
1. Poor guy - how is he?
2. Inappropriate.
3. No intercompany moves at the moment.
4. No interest.
5. See Jeanie Slone - she has it.
6. Get cash in.
Thanks
Louise
-----Original Message-----
From: Luce, Laura
Sent: Monday, November 26, 2001 11:04 AM
To: Kitchen, Louise
Subject: New York, etc.
Well... I am back and checking in with you.
Several things:
1) Russell's mom passed away on Friday. Funeral is tomorrow (Tuesday) at 4:00 p.m. in Lubbock, Texas. I am trying to make arrangements to attend, but it doesn't look probable due to flights.
2) I want your input on canceling the NY trip. I appreciate your support in letting me proceed to this point. The remaining benefit was to get everyone together with you to calm the nerves and set a course. I understand you will not be able to attend. It seems there is a general public belief (from PEC & Keyspan) that many Enron employees will not have a job after this week. If they believe that, it is entirely inappropriate to be doing anything celebratory or we will be deemed as ruthless. I want to make this call immediately. We have only spent an incremental $500.00 in the reviving of this event.
3) Per my e-mail on 11/16, I want to ensure that ENA retains Deirdre McCaffrey who is currently in the freight group. Can we please move her into my group?
4) A small investment firm has approached us with an inquiry into enovate. They want us to sign a confidentiality to discuss further. Your thoughts...
5) Per our conversation last week, I have not received any package at my home.
5) Is there anything productive I can do to help you?
Laura
|
{
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|
I just talked to Dad about it. That is fine. I should be able to get the $
to you this weekend.
Love,
E
"K. Bass" <[email protected]> on 11/17/2000 06:54:31 AM
Please respond to "K. Bass" <[email protected]>
To: Eric Bass <[email protected]>
cc:
Subject: Good Morning
Hi Eric,
?
I have a check for $630 but no local bank.? I would like to have cash.?
Would you please cash a personal check for this amount and I'll endorse the
other check over to you?? Sure would appreciate it.
?
Have a great day.? Love you, Mom
|
{
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|
yes -- just make sure the working group leaders know.
Maureen McVicker
12/30/99 02:56 PM
To: Steven J Kean/HOU/EES@EES
cc:
Subject: Additions to Working Groups
SK - STILL OK TO KEEP ADDING PEOPLE? mm
---------------------- Forwarded by Maureen McVicker/HOU/EES on 12/30/99
02:56 PM ---------------------------
Jeffrey Keeler@ENRON
12/30/99 02:26 PM
To: Elizabeth Linnell/HOU/EES@EES, Ginger Dernehl/HOU/EES@EES, Maureen
McVicker/HOU/EES@EES
cc: Steven J Kean/HOU/EES@EES, Joe Hillings/Corp/Enron@ENRON, Cynthia
Sandherr/Corp/Enron@ENRON, Chris Long/Corp/Enron@ENRON, Allison
Navin/Corp/Enron@ENRON, Amy Fabian/Corp/Enron@ENRON
Subject: Additions to Working Groups
Elizabeth, Ginger or Maureen (I apologize that I don't know which one of you
is handling this issue):
Could you please add the listed individuals from Federal Government Affairs
to the following working groups, as selected by Joe Hillings:
International Support for EES - Steve Burns
International Support for ECI - Chris Long
International Support for EWC - Chris Long
Information Resources - Jeff Keeler
Thank you.
Jeff
|
{
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|
Please notate on your calendar:
The room location for the Associate PRC at the Hyatt will Arboretum 4 and 5
rather than Arboretum 1 and 2.
Thank you for your participation.
|
{
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}
|
fee has been added
Stephanie Piwetz 03/29/2001 03:30 PM
To: Kate Symes/PDX/ECT@ECT
cc:
Subject: Deal 563728.01
Kate, can you check fee for above deal mark fischer
Enron sells constellation
mona
july-sept 01
610.00
we have zero fee, tfs shows .0075 Let me know and we probably need to set
mona delivery point in the system.
Thanks
sp
|
{
"pile_set_name": "Enron Emails"
}
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All,
Attached is the latest version of the captioned Schedule (revised 9/27/99).
|
{
"pile_set_name": "Enron Emails"
}
|
looks expenseive. We will go with B&W
|
{
"pile_set_name": "Enron Emails"
}
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http://web.mhhs.org/nursery/babyDetails.asp?hospitalID=7&search=list&babyID=17200
|
{
"pile_set_name": "Enron Emails"
}
|
When: Tuesday, May 29, 2001 3:00 PM-4:00 PM (GMT-06:00) Central Time (US & Canada).
Where: EB2537
*~*~*~*~*~*~*~*~*~*
|
{
"pile_set_name": "Enron Emails"
}
|
4.465 by 4.475
|
{
"pile_set_name": "Enron Emails"
}
|
Mr. Piazze,
I'm Liz Taylor, Greg Whalley's Admin. Assistant. We have spoken a few times
in the past. I have just a few questions concerning the event on December 13:
When in the evening will Greg give his speech?
Who long is he scheduled to speak?
Are you wanting him to have a slide presentation or just talk? He promises
to be entertaining (smile). He really is a greater speaker, if I may say so.
What is the dress code?
Many Thanks,
Liz Taylor
|
{
"pile_set_name": "Enron Emails"
}
|
Is this the old enron building or the new one?
Eric Bass
-----Original Message-----
From: Buckley, Karen
Sent: Monday, January 21, 2002 5:24 PM
Subject: Application Forms
Please come by 5C2 at your convenience tomorrow as UBS require you to complete missing information on your application form.
Kind regards,
Karen Buckley
Human Resources
Tel: 713 345 4667
|
{
"pile_set_name": "Enron Emails"
}
|
Could you fill me in on this when you get the chance?
----- Forwarded by David Portz/HOU/ECT on 05/17/2001 11:10 AM -----
Christi L Nicolay
05/17/2001 08:39 AM
To: David Portz/HOU/ECT@ECT
cc:
Subject: Re: Transmission Language for Std Contracts
We met, but did not do anything more. I'll send you an email from Oscar
about some proposed language. Ask Elizabeth how to proceed and we'll help as
needed. Thanks!
David Portz
05/15/2001 11:19 AM
To: Christi L Nicolay/HOU/ECT@ECT
cc:
Subject: Re: Transmission Language for Std Contracts
Could you let me know what happened with this? I was out of town when the
meeting was to occur. Is action needed? --David
Christi L Nicolay
04/02/2001 10:35 AM
To: Jeff Brown/NA/Enron@ENRON
cc: David Portz/HOU/ECT@ECT, Oscar Dalton/Enron@EnronXGate
Subject: Re: Transmission Language for Std Contracts
I just talked with Elizabeth Sager about this and we are scheduling a meeting
this week. I'll include Jeff and David too.
Jeff Brown@ENRON
04/02/2001 10:11 AM
To: Christi L Nicolay/HOU/ECT@ECT, David Portz/HOU/ECT@ECT
cc: Oscar Dalton/HOU/ECT@ECT
Subject: Transmission Language for Std Contracts
Christi,
We need to meet with David Portz to discuss the risk associated with
transmission changes as a result of new RTO's. This morning in Bauhgman's
meeting I volunteered to work with you and David to prepare draft contract
language on this issue.
Let me know when you can meet.
Thanks - Jeff
|
{
"pile_set_name": "Enron Emails"
}
|
We just opened the above counterparty to trade UK financial crude products
online. Since the Enron counterparty for these products is ECTRIC we will
need to get a master in place between ECTRIC and Counterparty. Justin Boyd
in London has graciously agreed to let us handle drafting and negotiation of
the master. Could you please provide us with credit for this master. I
don't know if we can just mirror the credit terms in the old master or not.
Since the old master is a Local Currency Master, we cannot do a simple dupe
and change it for UK issues. I would suggest unless we really have problems
with issues, we more or less try to sign the same paper whenever possible.
Of course, send the credit worksheet for the new master to the paralegals for
the rotation.
|
{
"pile_set_name": "Enron Emails"
}
|
Edmund,
Could you please confirm this wording is OK for Europe and amend the
w/collateral GTC's to incorporate the revision?
The primary purpose of this change is to create a default event in the event
that the credit support defaults.
Note: I have changed the last word in the clause from Transaction to GTC,
with Mark Taylor's approval.
Thanks,
Dave
---------------------- Forwarded by David Forster/LON/ECT on 11/10/99 16:36
---------------------------
Enron Capital & Trade Resources Corp.
From: Tana Jones 04/10/99 16:55
To: David Forster/LON/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT
cc: Mark E Taylor/HOU/ECT@ECT
Subject: Revised Online Collateral Arrangement Language
At Mark's request, I am transmitting proposed changes to the collateral
arrangement language in the Online GTC's. Please let me know if it meets
with your approval.
8. Collateral Arrangements. Counterparty shall (at Enron,s request) from
time to time and at Enron,s option either: (i) within one Business Day of
such request by Enron, provide to Enron a letter of credit in respect of
Counterparty's obligations under any Transaction, in such form and for such
amount and from such issuer, as is acceptable to Enron in its absolute
discretion; or (ii) within such period as is specified by Enron, provide for
the benefit of Enron a guaranty from a party, in such form and for such
amount as is acceptable to Enron in its absolute discretion. Failure so to
provide such letter of credit or guaranty or any default under such letter of
credit or guaranty shall constitute a default hereunder giving rise to the
immediate right of termination by Enron under this GTC.
|
{
"pile_set_name": "Enron Emails"
}
|
Hope he is ok.
Jim
-----Original Message-----
From: Barnes, Lynnette
Sent: Sunday, August 12, 2001 10:35 PM
To: Lawrence, Linda L.; Buster, Miyung; Hartfield, Rita; Reyna, Margo; Dernehl, Ginger; Perez, Gus; Linnell, Elizabeth; Sullivan, Kathleen
Cc: Kingerski, Harry; Steffes, James D.
Subject: Emergency
Importance: High
All,
I will be out of the office on Monday, August 13. My older son stepped on a piece of glass and cut a two inch wound in his right foot. The glass cut a main vain just under his big toe and required stitches to close the wound. Because of the area of the wound it bleeds with every turn of the foot and he MUST stay off of it for 24 to 48 hours to allow healing to begin. For this reason I am keeping him home for one day to make sure he stays off of it.
Never fear, however, I can be reached by pager and will be logged in most of the day. Please be mindful that I only have one phone line and when I am dialed in to the LAN I can not call out or receive calls.
Thank you for you patience,
Lynnette Barnes
888-703-0309
|
{
"pile_set_name": "Enron Emails"
}
|
Hey-
Looking at your list below tells me that you filed away Co. 0919 journal
voucher packet. Will you help me find it? I need to add a voucher to it.
Thanks.
Dana
Enron North America Corp.
From: Dana Davis 02/01/2001 12:08 PM
To: Brian Schwertner/NA/Enron@Enron, Rosalyn Lum/Corp/Enron@Enron, Lisa
Best/Corp/Enron@Enron, Lisa King/HOU/ECT@ECT, Kristi
Fredericks/NA/Enron@ENRON, Laynie East/HOU/ECT@ECT, Susan
Rance/NA/Enron@Enron, Stacy Hardy/Corp/Enron@ENRON, Brian K
Dawson/NA/Enron@ENRON, Dana Davis/HOU/ECT@ECT, Tammy Barta/HOU/ECT@ECT,
Rufino Doroteo/HOU/ECT@ECT, Brad Carey/NA/Enron@Enron, Stephen
Wolfe/HOU/ECT@ECT, Lisa Kang/NA/Enron@Enron
cc: Pam Becton/HOU/ECT@ECT, Marnie Lamb/NA/Enron@Enron
Subject: December 2000 Journal Entries
---------------------- Forwarded by Dana Davis/HOU/ECT on 02/01/2001 12:04 PM
---------------------------
Rufino Doroteo
02/01/2001 11:06 AM
To: Stacy Hardy/Corp/Enron@ENRON, Brian Schwertner/NA/Enron@Enron, Susan
Rance/NA/Enron@Enron, Rosalyn Lum/Corp/Enron@Enron, Laynie East/HOU/ECT@ECT,
Lisa Best/Corp/Enron@Enron, Kristi Fredericks/NA/Enron@ENRON, Lisa
King/HOU/ECT@ECT, Tammy Barta/HOU/ECT@ECT, Dana Davis/HOU/ECT@ECT
cc: Pam Becton/HOU/ECT@ECT, Marnie Lamb/NA/Enron@Enron
Subject: December 2000 Journal Entries
Here is a list of journal entries for December that I have. They will be
ready to be filed/signed. Pam will have the ones the will require a
signature.
To Be Filed Signature Required
Co. 0003 01N2
027L 0272
028C 0958
028P 0988
034M 1319
0364 0942 (just added)
037H 046K (just added)
040N
046k
052K
0914
0919
0957
1144
1297
1298
1314
1371
Any other entries that need to be filed can be dropped at my desk.
Thanks,
Rufino
|
{
"pile_set_name": "Enron Emails"
}
|
I will be out of the office from January 28 until February 4. If you have urgent needs, please contact my assistant, Iris Waser at 3-6059, or Staci Holtzman at 3-6633.
|
{
"pile_set_name": "Enron Emails"
}
|
I will be getting in town at 7pm on Friday the 22nd. I would love to go to
dinner, so if you make reservations for that night I can probably make it
around 8pm. If everyone else can't do it on the 22nd, then I hope to see
you all sometime before I head back to California.
Jen
>From: Laura Jahnke <[email protected]>
>Reply-To: [email protected]
>To: Susan Edwards <[email protected]> , Ash Mace
><[email protected]> , Katy Hester <[email protected]> , Emily
>Hillegeist <[email protected]> , "[email protected]"
><[email protected]> , "[email protected]"
><[email protected]> , Laura White <[email protected]> ,
>[email protected], [email protected], [email protected],
>[email protected], kaseywalker@mindspring, [email protected]
>Subject: Annual Christmas Dinner
>Date: Fri, 08 Dec 2000 13:45:25 -0500
>
>Hi Girls!
>It's that time again. We need to get everyone together for our annual
>Christmas Dinner. I have spoken to many of you and tried to come up
>with a good time for everyone. Unfortunately, there doesn't seem to be
>a "perfect day", but how about Friday-Dec. 22nd? Please respond and
>tell me what you think. I have had a few suggestions for a
>place-Churrasco's, America's, Ruggles, Benji's, Sullivans-please send a
>suggestion. Don't say it doesn't matter because majority vote will win
>and there will be no recount. The time will probably be around 8 p.m.
>I know the 22nd is close to Christmas, so the 19th has also been
>suggested-but I am afraid not everyone will be in town yet. Please send
>me your thoughts on the day, restauraunt, and if we should plan
>something after dinner. I can't wait to see everyone and hope all can
>make it!
>-Laura
>
______________________________________________________________________________
_______
Get more from the Web. FREE MSN Explorer download : http://explorer.msn.com
|
{
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|
FYI
John D. Suarez
Enron Broadband Services
(713) 853-5267 work
(713) 443-5267 mobile
(877) 597-0646 pager
email: [email protected]
-----Original Message-----
From: Daniel Yergin <[email protected]>
Sent: Thu Oct 11 15:31:25 2001
Subject: US Energy Secretary Conference Call
From: Daniel Yergin, Chairman, Cambridge Energy Research Associates
Re: US Energy Secretary -- CERA Client Briefing
I wanted to be sure you were aware that U.S. Energy Secretary Spencer
Abraham is delivering an exclusive telephone briefing to CERA's Global
Energy clients on Friday, October 12 at 11:00am eastern time on "US
Energy Policy: What's Ahead." I will be chairing this call.
This is a unique opportunity for you to hear directly the Secretary's
views on U.S. energy policy post the September 11 crisis.
I hope you will be able to join us.
Sincerely,
Daniel Yergin
To enroll, please contact Kathleen Doherty via e-mail at +617 498 9194
before 10am eastern time Friday, October 12.
To participate in the call, please call in on one of the following
numbers approximately 10-15 minutes before the call:
Within the United States: 1-888-695-0612
Outside the United States: (719) 457-2663
Confirmation code: 506303
Title of the call: CERA Call
Playback
Via CERA.com
A recording of this call will be posted in the Global Energy section on
CERA.com. Details will be made available following the call on Monday,
October 15.
Via Telephone
In addition, you will be able to access the replay via telephone by
calling 1-888-203-1112 (within the U.S.) or (719) 457-0820 outside the
U.S.). Please use confirmation number 506303 to access the playback.
This version of the call will be available until November 12, 2001.
|
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|
no comments this month
DENISE LAGESSE
12/20/99 02:35 PM
To: Louis Soldano/ET&S/Enron@ENRON, Colleen Raker/ET&S/Enron@ENRON, Philip
Crowley/ET&S/Enron@ENRON, Kim Wilkie/ET&S/Enron@ENRON, Bret
Reich/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON, Lee
Huber/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Dari
Dornan/ET&S/Enron@ENRON, Jim Talcott/ET&S/Enron@ENRON, Kathy
Ringblom/ET&S/Enron@ENRON, Eric Benson/ET&S/Enron@ENRON
cc:
Subject: Friendly Reminder: Monthly Significant Litigation Report
I have not yet received your comments to the Monthly Report, which is
attached below. Please send your comments to me (not Emily) as soon as
possible. If you do not have comments this month, please let me know so that
I can mark you off the list. Thanks very much! :)
---------------------- Forwarded by Denise LaGesse/ET&S/Enron on 12/20/99
02:27 PM ---------------------------
From: Emily Sellers 12/16/99 09:25 AM
To: Louis Soldano/ET&S/Enron, Colleen Raker/ET&S/Enron@ENRON, Candace
Kyle/ET&S/Enron@ENRON, Philip Crowley/ET&S/Enron@ENRON, Kim
Wilkie/ET&S/Enron@ENRON, Bret Reich/ET&S/Enron@ENRON, Susan
Scott/ET&S/Enron@ENRON, Lee Huber/ET&S/Enron@ENRON, Drew
Fossum/ET&S/Enron@ENRON, Dari Dornan/ET&S/Enron@ENRON, Jim
Talcott/ET&S/Enron@ENRON, Maria Pavlou/ET&S/Enron@ENRON, Kathy
Ringblom/ET&S/Enron@ENRON, Peggy Phillips/FGT/Enron@ENRON, Eric
Benson/ET&S/Enron@ENRON
cc: (bcc: Denise LaGesse/ET&S/Enron)
Subject: Monthly Significant Litigation Report
Attached is November's Monthly Report. I know I'm asking for your revisions
to it earlier than usual, but with everyone being out during the holidays
(myself included) we decided it would be easier to incorporate changes you
make to this report into the Weekly so you only have to update one report.
Denise Lagesse is going to do the updates next week for me while I'm on
vacation so send your changes and new items to her by Friday, December
17th.....Thanks....and Merry Christmas everybody......!!!!!
|
{
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}
|
----- Forwarded by Mark Taylor/HOU/ECT on 03/30/2001 10:34 AM -----
"Gillian N. Lash" <[email protected]>
03/30/2001 09:22 AM
To: [email protected], [email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected], [email protected],
[email protected], [email protected],
[email protected], [email protected],
[email protected], [email protected],
[email protected], [email protected],
[email protected], [email protected],
[email protected], [email protected],
[email protected], [email protected], [email protected],
[email protected], [email protected], [email protected],
[email protected], [email protected], [email protected],
[email protected], [email protected], [email protected], [email protected],
[email protected], [email protected], [email protected],
[email protected], [email protected], [email protected],
[email protected], [email protected],
[email protected], [email protected]
cc: "Mark Sisitsky" <[email protected]>, "Edward Nalbantian"
<[email protected]>, "Glenn S. Arden" <[email protected]>, "Kent L.
Killelea" <[email protected]>, "Anne Vrignaud" <[email protected]>
Subject: ISDA Annual Meeting -- Jones Day Cocktail Party
We understand that you will be attending the ISDA Annual Meeting next
week, as will be Mark Sisitsky, Ed Nalbantian, Glenn Arden and Kent
Killelea of Jones Day. On behalf of the entire firm, we would like to
invite you to stop by for a drink at our Washington office at 51 Louisiana
Avenue, N.W., on Wednesday, April 4 between 6:00-7:30 p.m.
We are located with a few blocks of the Library of Congress, so feel
free to stop by for a few minutes on your way to the reception there.
Weather permitting, the party will be held on our roofdeck. The
receptionists will be able to direct you.
For those of you staying at the OMNI Shoreham, we will also leave
invitations for you at the hotel. If you have any questions, please call
Kent Killelea at Jones Day's Washington office at (202) 879-3448.
We hope to see you all on April 4!
==========
The preceding e-mail message (including any attachments) contains
information that may be confidential, be protected by the attorney-client
or other applicable privileges, or constitute non-public information. It
is intended to be conveyed only to the designated recipient(s). If you are
not an intended recipient of this message, please notify the sender by
replying to this message and then delete it from your system. Use,
dissemination, distribution, or reproduction of this message by unintended
recipients is not authorized and may be unlawful.
==========
|
{
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}
|
YUMMY
---------------------- Forwarded by Kay Mann/Corp/Enron on 07/28/2000 08:49
AM ---------------------------
"Earl and Gaye Hudson" <[email protected]> on 07/28/2000 12:33:17 AM
To: <[email protected]>
cc:
Subject: Re: This weekend
----- Original Message -----
From: <[email protected]>
To: <[email protected]>
Sent: Thursday, July 27, 2000 3:33 PM
Subject: This weekend
> Hi Gaye,
>
> We are looking forward to seeing you and Earl this weekend. We will have
9
> for dinner, not counting the 6 year old who will have eaten (although he
> will eat a piece of bread, if offered). I just hate to pay for a real
> dinner for him when I know he won't be interested in grown up food.
>
> If it isn't too much trouble, could you email me the menu?
>
> We will be bringing beer and wine.
>
> See you soon (just not soon enough),
>
> Kay Mann
> 713 973 6325
Hi Kay,
The menu is as follows:
Hors douerves Crab Canapes
Appetizer Mocambo Shrimp
Salad Smoked Trout on Baby Spring Greens with
fresh lemon
vinegarette
Sorbet Mango
Entree Filet Mignon (will be cooked medium
unless
otherwise advised)
Duchess Potatoes
Honey-Glazed Carrots
Dessert Almond Apricot Tart
Creme Brulee Coffee
This is what I wrote down when you and I discussed the menu. We will put a
candle on your father's dessert and I will play "Happy Birthday" while the
family sings.
We are looking forward to having you back again. If there are any changes,
let me know.
Gaye Hudson
>
|
{
"pile_set_name": "Enron Emails"
}
|
Attached please find a Tax Review of California Assembly Bill No. 128 ("AB
128X"). The Tax Review sets out the practical implication (increased cost to
purchasers) and constitutional deficiencies of AB 128X.
The third paragraph of the Tax Review details the mathematical computation of
the tax and the resulting purchaser price increase. The computation sales
price, $300/MWh, reflects the SP15 (Southern California) weighted average
index price ($302.88), rounded to the nearest hundred, as reported in
Megawatt Daily's May 8th MarketReport. However, it may be more effective to
present the mathematical computation with a price closer to the proposed base
price of $60/MWh. We are available to assist in presenting the computation
utilizing whichever numbers you deem appropriate.
The California Senate has passed SB 1X, Windfall Profits Tax on Electric
Generators. We will forward a similar memorandum addressing SB 1X.
We are available to address questions and/or comments. Thanks.
Ed Coats - 713.853.6369
Steve Douglas - 713.853.0938
Gavin Russo - 713.853.6296
Matt Gockerman - 713.853.3979
|
{
"pile_set_name": "Enron Emails"
}
|
John:
As we discussed, here is a draft of a proposed amendment letter which covers
the issues that we talked about. Depending upon how Leslie handles the
affiliate issue, more may be added to this. Alos, as I ,mentioned to you,
this needs to be approved by the head of our Online group before I can sign
off on it. I am in the process o getting that approval.
Carol
|
{
"pile_set_name": "Enron Emails"
}
|
Please verify if Duke deal #387571 should be on HPL meter #1040. This
purchase normally occurs on Centana meter #77455. Last month, Duke deal
#351653 was changed due to the meter.
Please let me know if you have any questions.
Thanks,
Rebecca
|
{
"pile_set_name": "Enron Emails"
}
|
[email protected] on 01/29/2001 03:23:57 PM
Please respond to [email protected]
To: <[email protected]>
cc:
Subject: Direct your own XXX movie! 15956
NEW NEW SEX Thing!!!
Become Director of Your Own Movie!
For all those who love sex, crazy ideas, and games
we have thought up something new for you.
Every day you can pick from our range of over thirty models, which are
changed
every month, and become a screenwriter and director of your own film.
Like the idea? So why not take part?
All you have to do is write a two-minute film script, choose your cast
(combinations of up to six people, regardless of sex) and send it off to us.
Within 2 days we will send you the completed film. It sounds so promising
and easy, and it really is!
After paying a membership fee we will be ready at your beck and call
to act out your screenplay.
You can combine your models any way you want - they are all bisexual
and do anything, including extreme S&M.
Films are delivered electronically. You will recieve email with link to
download the movie. Sample of the scripts are in free section on our pages
www.xmoviedirector.com
You can see the movies and compare with the scripts. There are other free
videos (every week new five small videos) and galleries with S?pictures.
visit us at our website www.xmoviedirector.com
#######################################################################
To discontinue receipt of further notice and to be removed from our database,
please
reply with the word Remove in subject. Or call us at #954/340/1628 leave your
email
address for removal from the database and future mailings. Any attempts to
disrupt
the removal email address etc., will not allow us to be able to retrieve and
process
the remove requests.
#######################################################################
?
?
?
?
|
{
"pile_set_name": "Enron Emails"
}
|
Attached, please find a press release from Governor Davis announcing the
signing of SBX 6 which creates a PPA.
http://www.governor.ca.gov/state/govsite/gov_htmldisplay.jsp?BV_SessionID=@@@@
0298965258.0990051291@@@@&BV_EngineID=eallccemeikbemfcfkmchcng.0&sCatTitle=Pre
ss+Release&sFilePath=/govsite/press_release/2001_05/20010516_L01015_GGD_signs_
SB6X_Power_Authority_bill.html&sTitle=GOVERNOR+SIGNS+CALIFORNIA+%0aPOWER+AUTHO
RITY+BILL%0a&iOID=14801
|
{
"pile_set_name": "Enron Emails"
}
|
We need to discuss.
---------------------- Forwarded by Richard Shapiro/HOU/EES on 04/05/2000
09:32 PM ---------------------------
Carolyn Cooney@ENRON
04/05/2000 08:44 PM
To: Richard Shapiro/HOU/EES@EES
cc: Joe Hillings/Corp/Enron@ENRON, Cynthia Sandherr/Corp/Enron@ENRON
Subject: Electricity Budget
Rick,
As per your request -- please see the attached proposed electricity budget.
Thanks,
Carolyn
|
{
"pile_set_name": "Enron Emails"
}
|
-----Original Message-----
From: Jill Dunlop <[email protected]>@ENRON
Sent: Friday, January 25, 2002 11:54 AM
To: Richey, Cooper
Subject: Friday Festivities!
Hey Cooper,
I wanted to thank you again for asking Emily and I to the wine tasting last night. I had a great time (or as much fun as an uncultured Calgary hick can have) and think we should all do it again soon.
Also, I have been enlisted by Emmy to make sure you are coming to Ceili's tonight. She didn't get a chance to write this morning but wanted to extend the invitation to you one more time. She won't be done until 5 and so I think we'll head over around then.
Ah Ha! Lunch time! Hope to see you tonight and have a good rest of your day.
Jill
Jill Dunlop
Canadian Natural Resources Limited
Gas Operations Coordinator
Phone: 517-6803
Fax: 517-7365
|
{
"pile_set_name": "Enron Emails"
}
|
Wow! Was this expected?
Sarah Novosel@ENRON
07/19/2000 03:52 PM
To: "Fullenweider, Keith" <[email protected]>
cc: J Mark Metts/HOU/ECT@ECT, Mitchell Taylor/Corp/Enron@ENRON, Ann
Ballard/Corp/Enron@ENRON, Steven J Kean/HOU/EES@EES, "'[email protected]'"
<[email protected]>, Joe Hartsoe/Corp/Enron@ENRON, Tim Belden/HOU/ECT@ECT,
Mary Hain/HOU/ECT@ECT, Paul Kaufman/PDX/ECT@ECT, Adam" <[email protected]>,
[email protected], "'[email protected]'" <[email protected]>,
"'[email protected]'" <[email protected]>, "'[email protected]'"
<[email protected]>, 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" <[email protected]> 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, "'[email protected]'"
<[email protected]>, Sarah Novosel/Corp/Enron@ENRON, Joe
Hartsoe/Corp/Enron@ENRON, Tim Belden/HOU/ECT@ECT
cc: Paul Kaufman/PDX/ECT@ECT, "McWilliams, Douglas E."
<[email protected]>, "Wenner, Adam" <[email protected]>, "Bruner, Becky"
<[email protected]>, "Decker, John" <[email protected]>,
"'[email protected]'" <[email protected]>, "'[email protected]'"
<[email protected]>, "'[email protected]'" <[email protected]>,
"'[email protected]'" <[email protected]>, "'[email protected]'"
<[email protected]>
Subject: FW: Granite Update
Attached is an update memo from Paul Kaufman on state issues.
-----Original Message-----
From: Lysa Akin [mailto:[email protected]]
Sent: Monday, November 29, 1999 5:37 PM
To: Fullenweider, Keith
Subject: Granite Update
---------------------- Forwarded by Lysa Akin/PDX/ECT on 11/29/99 03:36 PM
---------------------------
(Embedded Paul Kaufman
image moved 11/24/99 10:35 AM
to file: (Embedded image moved to file: pic07276.pcx)
pic11800.pcx)
Sent by: Lysa Akin
To: [email protected]
cc: Richard Shapiro/HOU/EES@EES, Steven J Kean/HOU/EES@EES
Subject:
Keith - Please forward the attachment to our distribution list for the PGE
transaction. Also, please make sure that Steve Kean & Rick Shapiro are on
the
distribution list.
Please call me at (503) 464-7927 if you have any questions.
Lysa Akin
Ass't. to Paul Kaufman
(See attached file: Granite Update.doc)
- pic11800.pcx
- pic07276.pcx
- Granite Update.doc
|
{
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|
John, I would like to get together for lunch on the 6th of Sept. Take care.
Mark
"JOHN G KLAUBERG" <[email protected]>
08/24/2000 01:56 PM
To: <[email protected]>
cc:
Subject: Change in Plans
Mark:
It never fails. Ironically, within an hour after hitting the "Send" button
on my prior e-mail to you, I got a call from Stephanie, Jim's assistant,
informing me that Jim's travel schedule for the first week in September had
changed since I had set up the appointment and so we are going to have to
reschedule the meeting with him. Stephanie gave me a couple of possible
dates in late Sept. and the middle of October that I need to follow up with
Steve and Peter on. Once I circle back with them, I'll follow up with you to
see what may work for you.
Since I am scheduled to have a meeting in your offices on the morning of the
7th, I still plan to be in Houston. Is there a chance that you and I could
get together for lunch on the 6th or perhaps catch up for a few minutes that
afternoon or the afternoon of the 7th?
I'll touch base with you to see what your schedule looks like. Thanks. John
"This e-mail, including attachments, contains information that is
confidential and it may be protected by the attorney/client or other
privileges. This e-mail, including attachments, constitutes non-public
information intended to be conveyed only to the designated recipient(s). If
you are not an intended recipient, please delete this e-mail, including
attachments and notify me by return mail, e-mail or by phone at 212
424-8125. The unauthorized use, dissemination, distribution or reproduction
of the e-mail, including attachments, is prohibited and may be unlawful.
John Klauberg
LeBoeuf, Lamb, Greene & MacRae, L.L.P.
212 424-8125
[email protected]
|
{
"pile_set_name": "Enron Emails"
}
|
hope you will find this of interest. caf
_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.
Share information about yourself, create your own public profile at
http://profiles.msn.com.
- Learning Curve--Op Risk.pdf
|
{
"pile_set_name": "Enron Emails"
}
|
There were two overlays done in GCP this afternoon. The summary is on top,
for details, see the bottom tab, Mar. 2001.
Shortname changes will be made Fri, 04/06/01.
Records will be inactivated on Mon, 04/02/01, in the afternoon.
Have a great weekend!
Cheryl x33103
|
{
"pile_set_name": "Enron Emails"
}
|
Dear Dr. Kaminski:
Thank you very much for the natural gas information. The electricity price
is also definitely of great help if it can be available.
Could you kindly please let me know the contact information for FT or
Megawatt Daily? I will contact them asap to get their permission for the
access of the price data.
Thank you very much and have a great day!
Mulong
On Mon, 16 Apr 2001 [email protected] wrote:
>
> Mulong,
>
> We shall send you natural gas Henry Hub prices right away.
> Please look at the last winter and the winter of
> 95/96.
>
> We shall prepare for you the electricity price
> information (Cinergy, Cobb and Palo Verde) but
> you have to approach FT (the publishers of
> Megawatts Daily, a newsletter that produces the price
> index we recommend using) and request the permision
> to use the data. We are not allowed to distribute
> this information.
>
> Please, explain that this is for academic research and that
> we can produce the time series for you,
> conditional on the permission from the publishers
> of Megawatts Daily.
>
> Vince Kaminski
>
>
>
>
> mulong wang <[email protected]> on 04/15/2001 03:43:26 AM
>
> To: [email protected]
> cc: Richard MacMinn <[email protected]>
> Subject: Weather and energy price Data
>
>
> Dear Dr. Kaminski:
>
> I am a PhD Candidate under the supervision of Drs. Richard MacMinn and
> Patrick Brockett. I am now working on my dissertation which is focused on
> the weather derivatives and credit derivatives.
>
> Could you kindly please offer me some real weather data information about
> the price peak or plummet because of the weather conditions?
>
> The past winter of 2000 was very cold nationwide, and there may be a
> significant price jump for natural gas or electricity. Could you
> please offer me some energy price data during that time period?
>
> Your kind assistance will be highly appreciated and have a great day!
>
> Mulong
>
>
>
>
>
>
>
>
>
>
|
{
"pile_set_name": "Enron Emails"
}
|
Thank you. I'm looking forward working with you too. Maybe we can get together some time today or Monday and you can help train me too? Is that okay with you?
Thanks,
Veronica
-----Original Message-----
From: Davis, Dana
Sent: Friday, September 14, 2001 9:35 AM
To: Medrano, Veronica
Subject: Testing
Welcome to the group. I'm looking forward to working with you. Have a good day. : )
|
{
"pile_set_name": "Enron Emails"
}
|
We need to start a new "bucket" file called Direct Testimony. Then please
watch the mail and do a folder for each prepared testimony as they come in.
Thank you!
|
{
"pile_set_name": "Enron Emails"
}
|
- 11_26_01GO.xls
- 11_26_01OH.xls
|
{
"pile_set_name": "Enron Emails"
}
|
Attached is the final red-line showing all the changes made to our existing
large commodity form based on the spot check item in the EES/EWS Coordination
Plan. We will drive these changes into all remaining forms (mid-market, CMA,
Fast-Track and industrial and commercial gas agreements) as well as all
transactions currently in the beginning or middle stages of negotiation.
On a go forward basis for new transactions, we will identify and explain all
material deviations from these revised forms.
Jim
|
{
"pile_set_name": "Enron Emails"
}
|
I am pleased to announce the following organizational changes within EGM Operations & Accounting effective immediately:
Todd Hall will be relocating to London and will assume responsibility for all EGM operational activities in London including Risk Management, Confirmations, Coordination & Settlements and Trade Accounting. Todd will be working closely with the EGM business unit heads in London to ensure their businesses are being supported in an effective and efficient manner.
Cindy Horn will assume the role of EGM IT & Remote Office Controller. She will be responsible for the oversight and coordination of all IT projects affecting the Operations group. Her duties will include monitoring and reporting project timelines and expenses and ensuring IT is being utilized in the most cost-effective manner within Operations. Cindy will also manage the operational activities of the Singapore and Tokyo offices and coordinate with the Sydney office in regards to EGM operations.
Michelle Bruce will assume responsibility for Risk Management in the Houston office for Crude & Products, Coal and Weather. She will also continue to manage the Confirmation, Coordination & Settlements and Trade Accounting functions in Houston.
Please join me in congratulating these individuals on their new assignments.
|
{
"pile_set_name": "Enron Emails"
}
|
Daily Agenda
Thursday, May 17, 2001
Today's events...
* 11:30 a.m., SACRAMENTO Gov. Gray Davis holds news conference to
respond to President Bush's energy plan, Capitol, room 1190. Contact:
916-445-4571.
* 2 p.m., SACRAMENTO Assemblyman Juan Vargas discusses legislation
that would prevent utilities from disconnecting power to many senior
citizens, Capitol, room 2188. Contact: Wendy Harmon, 916-319-2079.
In the news...
* SacBee, Hardy: UC reinstitutes affirmative action.
http://www.sacbee.com/news/news/local01_20010517.html
* SacBee, Weintraub:
http://www.sacbee.com/voices/news/voices05_20010517.html
* LA Times, Tamaki: Governor's budget may have shortfall.
http://www.latimes.com/news/state/20010517/t000041479.html
* SF Chronicle, Lucas: LAO - Budget shortfall predicted.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2001/05/17/MN82295.DTL
In committee...
* OPEN ISSUES. Budget Subcommittee No. 1 on Health and Human
Services. 8:00am or upon call of the Chair, room TBA.
* OPEN ISSUES. Budget Subcommittee No. 2 on Education Finance.
8:00am or upon call of the Chair, room TBA.
* OPEN ISSUES. Budget Subcommittee No. 3 on Resources. 8:00am or
upon call of the Chair, room TBA.
* OPEN ISSUES. Budget Subcommittee No. 4 on State Administration.
8:00am or upon call of the Chair, room TBA.
* OPEN ISSUES. Budget Subcommittee No. 5 on Information Technology
and Transportation. 8:00am or upon call of the Chair, room TBA.
Today on the floor...
* Assembly session at 8:30am. (Squawk Box 89.7, Assembly TV, CH. 7)
* Senate session at 8:30am. (Squawk Box 99.1, Senate TV, CH. 5)
Richard Costigan, III
Chief of Staff
Office of the Assembly Republican Leader
California State Assembly
Phone:(916) 319-2005
|
{
"pile_set_name": "Enron Emails"
}
|
Enron's Skilling Cites Stock-Price Plunge As Main Reason for Leaving CEO Post
The Wall Street Journal, 08/16/01
Enron's Lay to Name Two to Chairman's Office, Newspaper Reports
Bloomberg, 08/16/01
Veritas Software, Vitesse Decline Amid Tech Slump, Energy Surge
The Wall Street Journal, 08/16/01
Houston-Area Energy Giant Plans to Quickly Fill CEO Position
Houston Chronicle - Texas, 08/16/01
Enron's Skilling Cites Stock-Price Plunge as Main Reason for Leaving CEO Post
Dow Jones Business News, 08/16/01
Enron's Skilling says resigned due to plummeting share price
AFX News, 08/16/01
After a tumultuous six months as the energy company's president and CEO, Jeffrey Skilling says "No mas," tendering his resignation.
Redherring.com, 08/16/01
Enron shares decline after CEO resigns
National Post, 08/16/01
Shares Fall, With the Nasdaq Closing at a 4-Month Low
The New York Times, 08/16/01
Skilling quits, jolts Enron
The Times of India, 08/16/01
World Watch
The Wall Street Journal, 08/16/01
Markets / Your Money Enron Stock Hits 52-Week Low on Skilling's Exit Reaction: Some analysts, however, reaffirm their confidence in the energy trader's bold strategy.
Los Angeles Times, 08/16/01
USA: Enron reels as heir-apparent Skilling exits.
Reuters English News Service, 08/15/01
Bandwidth Market: Price For OC48 Package Shifts Downward
Dow Jones Energy Service, 08/15/01
Enron's CEO Skilling Departs, Testing Enron Again
Dow Jones News Service, 08/15/01
Historic status for pipelines resisted
Houston Chronicle, 08/15/01
Enron plans to quickly fill top positions
Houston Chronicle, 08/15/01
CHINA: ANALYSIS-India investors seen gaining from U.S. policy shift.
Reuters English News Service, 08/16/01
INDIA: Belgium's Tractabel pulls out of India - paper.
Reuters English News Service, 08/16/01
TERMS OF REFERENCE FOR INDIA'S ENRON PROBE TO BE FINALISED
Asia Pulse, 08/16/01
Enron's Former CEO Says He Failed in Some Businesses, CNBC Says
Bloomberg, 08/16/01
Enron's Skilling Cites Stock-Price Plunge As Main Reason for Leaving CEO Post
By John R. Emshwiller
Staff Reporter of The Wall Street Journal
08/16/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Jeffrey K. Skilling said that the pressure he felt from Enron Corp.'s plummeting stock price was the main reason he decided to resign Tuesday as the energy giant's chief executive officer after only about six months in the job.
In an interview yesterday, the 47-year-old Mr. Skilling elaborated on his decision to leave Houston-based Enron. On Tuesday, Mr. Skilling insisted he had resigned for "personal reasons" unrelated to Enron's business activities.
In the interview, he reiterated that he wasn't under any pressure to resign from the company's board or Chairman Kenneth Lay, who has resumed the CEO's duties at the nation's biggest energy trader.
However, yesterday Mr. Skilling said that his "personal reasons" were deeply enmeshed with feelings that he had failed in a crucial business area during his brief tenure as CEO. Calling the company's stock performance a "kind of ultimate score card," Mr. Skilling noted that Enron's share price had fallen by some 50% this year.
Mr. Skilling said he took that stock-price drop very personally. "I put a lot of pressure on myself" for that decline, he said. "I felt I must not be communicating well enough" with investors. He felt this particularly given Enron's strong financial results over the past several quarters, based largely on growing volumes in its trading business, which covers a range of items, including electricity, pulp and paper.
If the stock price had remained up "I don't think I would have felt the pressure to leave," he said.
In January, Enron topped $84 a share in New York Stock Exchange composite trading. It closed Tuesday, before the announcement of Mr. Skilling's resignation, at $42.93 a share. As of 4 p.m. yesterday, Enron traded at $40.25, after falling below $37 during the day.
Mr. Skilling, who had been at Enron 11 years, said the depressed stock price was particularly tough to explain to fellow Enron employees, many of whom are shareholders. "People would say `What is going on with the stock, Jeff?' I would have to say I didn't know. It has been frustrating," said Mr. Skilling.
The self-portrait offered by Mr. Skilling in the interview is rather different from the widely held image of him as an ambitious, bright and thick-skinned business strategist whose long-held goal had been becoming Enron CEO. Mr. Skilling said that the "final straw" in his decision to leave had come on a visit last week to England in connection with the deaths of three Enron workers in a power-plant accident there. That trip helped reinforce "how tenuous life is," said Mr. Skilling, who has three children from a previous marriage and recently became engaged.
While Mr. Skilling said Enron is in "great shape," his departure raised anxiety in the investment community. Merrill Lynch, for instance, lowered its rating on Enron to neutral from buy based on "uncertainty" created by the resignation.
Yesterday, an Enron spokesman confirmed that Mr. Lay plans to name two executives to the existing "office of the chairman" within the next few days or weeks. The spokesman said Mr. Lay hadn't yet revealed whom the two would be. The office of the chairman had consisted of Mr. Lay and Mr. Skilling.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron's Lay to Name Two to Chairman's Office, Newspaper Reports
2001-08-16 08:41 (New York)
Houston, Aug. 16 (Bloomberg) -- Enron Corp. Chairman Kenneth
Lay plans to name two company executives to the ``office of the
chairman'' as soon as the next few days, the Wall Street Journal
reported, citing an unnamed Enron spokesman.
The appointments follow the resignation Tuesday of Jeffrey
Skilling as chief executive. Lay took back his job as CEO of the
biggest energy trader.
Skilling had said he resigned for personal reasons. Pressure
from Enron's falling stock price also contributed to his decision,
he said in an interview with the Journal. Skilling joined Enron in
1990 and became chief executive in February.
``I felt I must not be communicating well enough'' with
investors, he said, according to the newspaper. Houston-based
Enron's shares had fallen 48 percent this year before Skilling
stepped down, though second-quarter profit rose 40 percent from a
year earlier, and revenue had almost tripled.
The ``final straw,'' showing ``how tenuous life is,''
happened last week on a trip to England related to the deaths of
three Enron workers in a power-plant explosion, Skilling said in
the newspaper interview.
Enron's stock fell $2.68, or 6.2 percent, to $40.25
yesterday.
Abreast of the Market
Veritas Software, Vitesse Decline Amid Tech Slump, Energy Surge
By Robert O'Brien
Dow Jones Newswires
08/16/2001
The Wall Street Journal
C2
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -- Energy stocks found reason to rally, but weakness in technology issues caused market averages to fade in another thinly traded summer session.
BEA Systems hit a 52-week low as investors reacted to the downbeat forecast that accompanied the San Jose, Calif., software maker's fiscal second-quarter results Tuesday. BEA Systems fell $1.56, or 8.4%, to $17.04 in Nasdaq Stock Market trading.
At best, reaction to the earnings results in the group drew an inconsequential response. Semiconductor-equipment maker Applied Materials finished nine cents higher at 43.74 on Nasdaq, while Nvidia, a maker of three-dimensional graphics processors, rose 10 cents, to 85.95 on Nasdaq, after its quarterly profit statement.
In a more accurate gauge of investor caution, companies about to record quarterly results faded. Brocade Communications, a maker of data-storage software products, eased 1.82, or 5.7%, to 30.34 on Nasdaq, before its release of quarterly results, which came out after trading closed; the results matched analysts' forecasts.
"I think so many investors are just reluctant to establish big positions," said Scott Curtis, head of U.S. equity trading at Credit Lyonnais Securities.
The Dow Jones Industrial Average finished with what, at least by recent standards, appeared to be a substantial move. After falling less than one point Monday, and four points Tuesday, the industrial average fell 66.22 points, shedding 0.6%, to finish at 10345.95.
That move came on slightly, though not substantially, improved volume, with one billion shares changing hands on the New York Stock Exchange, compared with 962 million shares Tuesday.
The Nasdaq Composite Index, stung by the weakness in technology, dropped 45.64, or 2.3%, to 1918.89.
Several natural-gas companies rallied after the release of weekly gas-storage data showed inventories, which had increased sharply during recent weeks to the dismay of the group, grew little during the latest period.
Energy companies such as Apache, which rose 2.79, or 5.4%, to 54.14, Devon Energy (Amex), which gained 1.90, to 52.66, and Burlington Resources, which rose 1.50, to 43.57, made big moves in the aftermath of the inventory data.
Oilfield-service providers made big moves. Halliburton gained 2.30, or 7.5%, to 32.84, while Schlumberger added 2.95, or 5.9%, to 53.20, and Transocean Sedco Forex gained 1.52, or 5%, to 31.99.
Power-generation and energy-marketing concern Enron fell to a 52-week low amid brisk trading, after President and Chief Executive Jeffrey K. Skilling resigned from the Houston company. Enron fell 2.68, or 6.2%, to 40.25, with 29.7 million shares changing hands, compared with a daily average of about four million.
Several companies identified as among the holdings of investor Warren Buffett's Berkshire Hathaway progressed. Honeywell International, gained 64 cents, to 37.32, as Office Depot, another new addition to the portfolio, fell 37 cents, to 12.92.
Among Berkshire's largest holdings, Coca-Cola rose 1.54, to 47.58, while Gillette tacked on 1.59, or 5.7%, to 29.50.
Berkshire Hathaway's Class A increased 500, to 69,600, while Class B gained eight to 2,313.
Veritas Software (Nasdaq) fell 3.04, or 8.1%, to 34.40. Morgan Stanley said its analysis of the Mountain View, Calif., storage-management software maker's recent securities filings led it to conclude that one of the company's new products has had an unexpected sales decline.
Vitesse Semiconductor eased 1.57, or 8.2%, to 17.67 on Nasdaq. The Camarillo, Calif., maker of communications-network chips warned in a securities filing that revenue for the current fourth quarter will be below third-quarter totals.
Network Appliance added 36 cents, to 13.12, in Nasdaq trading. The Santa Clara, Calif., maker of data-storage products reported fiscal first-quarter results that matched forecasts, and drew criticism from analysts. However, UBS Warburg issued relatively constructive comments, saying the company had begun to turn the corner on its recent problems.
CenturyTel rose 4.09, or 13%, to 34.71. Alltel made an unsolicited bid for the Monroe, La., company of $5.9 billion in stock and cash. Alltel fell 4.16, or 6.8%, to 56.90.
Maxim Integrated Products shed 3.66, or 7.3%, to 46.50 on Nasdaq, as investors turned cautious ahead of the Sunnyvale, Calif., chip maker's quarterly results, due today. Merrill Lynch reduced earnings estimates for the current quarter, but said any fundamental challenges will hit their nadir with the September-ending quarter.
Telium rose 1.67, or 18%, to 10.76 on Nasdaq. The Oceanport, N.J., optical-switches maker fell to a new low in Tuesday trading, as investors anticipated the expiration of the lockup on sales by insiders; the lockup expired yesterday. Thomas Weisel Partners reiterated a buy rating.
Advanced Micro Devices, which dropped 7% Tuesday, declined 75 cents, to 14.75. Salomon Smith Barney reduced its earnings forecast for the Sunnyvale, Calif., chip maker, citing increasing competitive pressure from Intel.
Dell Computer fell 1.07, to 25.50 on Nasdaq. Credit Suisse First Boston reduced its earnings forecast ahead of the Round Rock, Texas, computer maker's release of quarterly results, scheduled for today.
Deere gained 1.49, to 43.37. Goldman Sachs named the Moline, Ill., farm-equipment maker to its recommended list, citing a rationale for increased equipment sales. Goldman also upgraded Agco, a Duluth, Ga., farm-equipment maker. Agco rose 80 cents, or 7.8%, to 11.10.
Watson Pharmaceuticals fell 3.22, or 5.3%, to 57.28. The Corona, Calif., pharmaceuticals maker, which reported on-target earnings Tuesday, reacted to concerns from traders that the company's revenue from generic medicine could fall slightly for the second half of the year.
Dow Chemical, of Midland, Mich., gained 36 cents, to 35.50, helped by remarks from Credit Suisse First Boston, which suggested that investors overweight their exposure to the chemicals group.
Knight Trading fell 61 cents, or 5.2%, to 11.11 on Nasdaq. The Jersey City, N.J., securities-brokerage house has begun to charge some clients transaction fees for receipt of their stock orders, reversing its stance on the issue.
Abercrombie & Fitch gained 2.15, or 7.1%, to 32.24. The Reynoldsburg, Ohio, apparel retailer reported stronger-than-expected fiscal second-quarter earnings. In a research note, Credit Suisse First Boston said the company offered the best lineup of merchandise for fall in the industry.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Houston-Area Energy Giant Plans to Quickly Fill CEO Position
Laura Goldberg
08/16/2001
KRTBN Knight-Ridder Tribune Business News: Houston Chronicle - Texas
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World Reporter (TM)
Enron Corp. plans to move quickly to name potential successors to Jeffrey Skilling, who unexpectedly stepped down Tuesday as the energy giant's chief executive officer and president.
Chairman Ken Lay took over as CEO, a role he gave up to Skilling in February. Lay is also serving as president.
Within days or weeks, Lay plans to name two Enron executives to join him in the office of the chairman, Enron spokesman Mark Palmer said Wednesday.
The two would get responsibilities that could give them an opportunity to become president or chief executive officer "at the right time," Palmer said. He wouldn't speculate on who might be named.
Skilling surprised Wall Street with his announcement he was leaving for undisclosed "personal and family reasons." His decision, he said, wasn't related to Enron's business.
Lay stressed that Enron is in good shape, no strategic changes are planned and no problems are about to be disclosed.
But Skilling's resignation -- especially after just six months on a job he worked a long time to get -- raised questions among analysts, who were quick to note Enron's closing stock price had dropped from as high as $82 at the end of January to $42.93 Tuesday. Skilling's departure was made public after Tuesday's market close.
Problems have dogged Enron, including troubles with its new broadband venture, uncertainty over its potential exposure from California's energy woes, continued disputes over a power plant project in India, and questions about the company's long-term strategy to expand from energy trading into a variety of other commodities.
Skilling's departure simply added more questions, leaving investors wondering Wednesday who might fill the void and whether other problems are lurking.
At one point Wednesday, Enron's stock declined to $36.87, but it gained ground by the time the market closed, ending the regular trading day down $2.68 at $40.25.
Lay, when he spoke to analysts Tuesday during a conference call, stressed that Enron has plenty of experienced talent in its senior ranks. He said top executive roles would be filled internally.
Names bandied about on Wall Street Wednesday as possible successors included Mark Frevert, CEO of Enron Wholesale Services; Lawrence "Greg" Whalley, chief operating officer of Enron Wholesale Services; and Dave Delainey, CEO of Enron Energy Services.
In his call, Lay mentioned those three but also singled out other Enron executives including Stanley Horton, Kevin Hannon, Andrew Fastow, Richard Causey and Steven Kean.
Analysts view Enron's talent pool differently.
Carol Coale, with Prudential Securities in Houston, wrote in a research note that she "was concerned over the depth of management at Enron," while Raymond Niles at Salomon Smith Barney, also in a research note, talked about Enron's "deep bench."
Coale met separately with Skilling and Lay on Wednesday and said she walked away feeling "no new bad news" is on the way from Enron.
She expects Kenneth Rice, head of Enron's broadband unit, to announce his resignation soon but said it won't be a total surprise. Palmer declined comment.
Two other executives resigned from Enron earlier this year.
The biggest question hanging over Enron is whether its move into markets such as metals and pulp and paper will prove wise, said Andre Meade, an analyst with Commerzbank Securities.
The company's core business of wholesale trading and marketing of natural gas and power of remains strong, he said.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron's Skilling Cites Stock-Price Plunge as Main Reason for Leaving CEO Post
08/16/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Jeffrey K. Skilling said that the pressure he felt from Enron Corp.'s plummeting stock price was the main reason he decided to resign Tuesday as the energy giant's chief executive officer after only about six months in the job, Thursday's Wall Street Journal reported.
In an interview Wednesday, the 47-year-old Mr. Skilling elaborated on his decision to leave Houston-based Enron (ENE). Tuesday, Mr. Skilling insisted he had resigned for "personal reasons" unrelated to Enron's business activities.
In the interview, he reiterated that he wasn't under any pressure to resign from the company's board or Chairman Kenneth Lay, who has resumed the CEO's duties at the nation's biggest energy trader.
However, Mr. Skilling said that his "personal reasons" were deeply enmeshed with feelings that he had failed in a crucial business area during his brief tenure as CEO. Calling the company's stock performance a "kind of ultimate score card," Mr. Skilling noted that Enron's share price had fallen by some 50% this year.
Mr. Skilling said he took that stock-price drop very personally. "I put a lot of pressure on myself" for that decline, he said. "I felt I must not be communicating well enough" with investors. He felt this particularly given Enron's strong financial results over the past several quarters, based largely on growing volumes in its trading business, which covers a range of items, including electricity, pulp and paper.
If the stock price had remained up "I don't think I would have felt the pressure to leave," he said.
In January, Enron topped $84 a share in New York Stock Exchange composite trading. It closed Tuesday, before the announcement of Mr. Skilling's resignation, at $42.93 a share. As of 4 p.m. Wednesday, Enron traded at $40.25, after falling below $37 during the day.
Mr. Skilling, who had been at Enron 11 years, said the depressed stock price was particularly tough to explain to fellow Enron employees, many of whom are shareholders. "People would say `What is going on with the stock, Jeff?' I would have to say I didn't know. It has been frustrating," said Mr. Skilling.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron's Skilling says resigned due to plummeting share price
08/16/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX) - Enron Corp's outgoing chief executive Jeffrey Skilling said that the pressure he felt from the company's plummeting stock price was the main reason he decided to resign.
In an interview with the Wall Street Journal, Skilling said he was under no pressure from the company's board to resign.
But the "personal reasons" cited Turesday for his departure were deeply enmeshed with feelings that he had failed in a crucial business area during his brief tenure as CEO.
Calling the company's stock performance a "kind of ultimate score card," Skilling noted that Enron's share price has fallen by some 50 pct this year.
"I put a lot of pressure on myself" for that decline, he told the newspaper. "I felt I must not be communicating well enough" with investors.
He felt this particularly given Enron's strong financial results over the past several quarters, based largely on growing volumes in its trading business, which covers a range of items, including electricity, pulp and paper.
If the stock price had remained up "I don't think I would have felt the pressure to leave," he said.
jms
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Skilling bids farewell to Enron
After a tumultuous six months as the energy company's president and CEO, Jeffrey Skilling says "No mas," tendering his resignation.
Christopher Locke
08/16/2001
Redherring.com
(c)2001. Red Herring Communications. All rights reserved.
Enron (NYSE: ENE), the energy and gas wholesale giant that once could do no wrong, released some surprisingly bad news Tuesday.
In a 10-Q filing, the Houston, Texas-based company reported a substantial negative cash flow in the June quarter. At the same time, it announced that president and CEO Jeffrey Skilling had voluntarily resigned from his positions. Kenneth Lay, Enron's chairman of the board, has assumed the CEO and president duties on an interim basis. Mr. Skilling will continue to serve as a consultant to the company and its board of directors.
Mr. Skilling's resignation, which came only six months after he assumed the CEO post, could be a big blow for Enron, since he was the key architect in helping convert the company from a gas-pipeline business into the dominant online energy trader in the industry.
THE POWER'S STILL ON
During a conference call to announce the news, Mr. Skilling said his choice to leave was "purely a personal decision -- it has nothing to do with Enron." He also said that he "feels bad" that this move might be construed as a sign of some type of negative relationship between himself and the company. Though Mr. Skilling, 47, was president and CEO for less than a year, he had been with the company since 1990. By voluntarily resigning and voiding his contract, which was to end in 2003, he will not receive a severance package, and his "no compete" clause will be enacted through the end of that contract period. Mr. Skilling did not return a call placed to his office.
One source at Enron who asked not to be named said that the general mood at the company is relatively sad but that Mr. Lay is a "beloved figure" and people have confidence in his leadership skills. Mr. Lay was Enron's CEO from 1985 until Mr. Skilling's appointment earlier this year.
During the conference call, Mr. Lay said that although he regrets Mr. Skilling's decision, he has never felt better about the company. "We have the strongest and deepest talent we have ever had and our growth prospects have never been better," he stated. Mr. Lay added that he expects no changes in Enron's earnings outlook and that the talent in the company is so deep that any slot for CEO will be filled internally. After the announcement, Enron's stock dropped 6.2 percent to $40.25, a 52-week low.
UNDER PRESSURE?
The most intriguing aspect of this unexpected move is Mr. Skilling's assertion that the choice was made solely for personal reasons, though during the conference call he asked not to be pressed about what those reasons were. Some sources suggest that the recent spate of criticism Enron has endured over a variety of issues might simply have been too much for Mr. Skilling to handle during his brief tenure as president and CEO.
Recent allegations against Enron have ranged from charges of market manipulation and price gouging to wielding too much influence in Washington, D.C. The price of the company's stock has dropped by more than half since this time last year, and there are rumors of substantial layoffs.
In addition, Enron -- which has blazed a trail in energy and natural gas wholesaling -- has hit its first major snag: its broadband project has, up to now, been a complete failure. The Broadband Services division accounted for just 0.12 percent of the company's $50.1 billion in revenue for the second quarter of 2001; that division lost $137 million before interest and taxes in the second quarter. In its latest 10-Q filing, the company states: "Enron is significantly modifying the cost structure of Broadband Services to correspond to slower market development and the associated lower revenue outlook.... Enron expects losses to continue through at least 2001 in the Broadband Services segment. Future profitability is dependent on the recovery of the broadband and communications sectors."
For more on Enron, stay tuned for the September 1 issue of Red Herring magazine.
Write to [email protected].
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Financial Post: Briefing
Tracker
Enron shares decline after CEO resigns
National Post
08/16/2001
National Post
National
C02
(c) National Post 2001. All Rights Reserved.
HOUSTON - Enron Corp. shares fell as much as 13% after Jeffrey Skilling resigned on Tuesday, just six months after being promoted to chief executive of the biggest energy-trading company. Enron announced Mr. Skilling's departure after Tuesday's close of regular U.S. trading. Mr. Skilling, who said he left for personal reasons, is the third top executive to leave Enron in the past year.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Business/Financial Desk; Section C
THE MARKETS: STOCKS & BONDS
Shares Fall, With the Nasdaq Closing at a 4-Month Low
By Reuters
08/16/2001
The New York Times
Page 6, Column 5
c. 2001 New York Times Company
Stocks dropped yesterday, sending the technology-based Nasdaq composite index to its lowest level in nearly four months.
Sagging corporate profits again appeared to be a concern for investors. ''People are very cautious,'' said Rick Meckler, president of Liberty View Management in Jersey City, ''and don't have the same willingness to bottom-fish and look out another year.''
Those who thought that the sluggish economy might have started improving by now, with the help of interest rate cuts, are finding that the troubles are proving to be longer-lasting, with companies expected to post another sharp decline in profits. The stock market has made little progress in the last few weeks as investors avoid buying shares until evidence of an economic turnaround seems apparent. ''It's a wait-and-see mode,'' said Peter Coolidge of Brean Murray & Company in New York. ''There is just no catalyst to move stocks one way or another.''
The Nasdaq index fell 45.64 points, or 2.32 percent, to 1,918.89 -- its lowest close since April 16. The blue-chip Dow Jones industrial average declined less steeply, falling 66.22 points, or 0.64 percent, to 10,345.95. The broader Standard & Poor's 500-stock index fell 8.71 points, or 0.73 percent, to 1,178.02. Market breadth was slightly positive on the New York Stock Exchange; on the Nasdaq, declining issues outnumbered those advancing, 2,123 to 1,535. Volume was 1.07 million shares.
Hewlett-Packard was one stock leading the Dow lower. It declined 76 cents, to close at $24.10, ahead of an earnings report due after the end of trading today.
Dell Computer fell $1.07, to $25.50, also ahead of its earnings announcement today. Credit Suisse First Boston, citing tough industry conditions, trimmed its 2002 earnings projection for Dell by 2.8 percent and cut its 2003 estimates 10 percent.
Veritas Software fell $3.04, to $34.40, after Morgan Stanley analysts raised questions about the performance of some of the company's products. BEA Systems, the electronic commerce software maker, dropped $1.56, to $17.04. The company said that quarterly earnings met estimates, but it lowered its outlook for the rest of the year, noting the softness in the economy.
Applied Materials, the semiconductor-equipment maker, rose 9 cents, to $43.74. It reported quarterly net income down more than 90 percent, yet still surpassed its target of breaking even in the badly slumping chip industry. Applied Materials said orders would remain weak in the fourth quarter, but be in line with those in the third quarter. Sales are expected to be flat, but the company said it expected a profit.
Advanced Micro Devices fell 75 cents, to $14.75, after losing $1.11 on Tuesday. I.B.M. said it has stopped selling desktop PC's in the United States with the company's chips in favor of those made by Intel and might also drop them in Asia.
Metromedia Fiber Network, of White Plains, fell 44 cents, to 70 cents. The company, which builds high-speed fiber optic communications networks in cities, said that its quarterly loss more than doubled from the period a year earlier and that it was still seeking financing.
Among energy providers, Enron fell $2.68, to $40.25, on the news of Jeffrey Skilling's surprise resignation as chief executive.
--------------------
Treasury Prices Lower
By Bloomberg News
Bond prices declined on a report that factory output in July leveled off, suggesting to some that the Federal Reserve might not lower interest rates next week. The central bank, which has cut rates six times this year in an effort to reinvigorate the economy, has been expected to lower the federal funds rate again when it meets on Tuesday.
The price of the benchmark 10-year Treasury note fell 8/32, to 100 2/32. Its yield, which moves in the opposite direction from the price, rose to 4.99 percent from 4.96 percent on Tuesday. The 30-year bond fell 4/32, to 98. Its yield rose to 5.51 percent from 5.50 percent.
Graph tracks the Dow Jones industrial average over the past year. (Sources: Associated Press; Bloomberg Financial Markets) Tables: ''Hot & Cold'' provides a look at stocks with large percentage gains and losses; ''The Favorites'' lists stocks held by largest number of accounts at Merrill Lynch. (Compiled from staff reports, The Associated Press, Bloomberg News, Bridge News, Dow Jones, Reuters) Graph: ''Freddie Mac Yields'' tracks average weekly yields on Federal Home Loan Mortgage Corporation 30-year and 15-year participation certificates since April 2001. Yields track changes in fixed-rate mortgages. (Source: Federal Home Loan Mortgage Corp.)
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Skilling quits, jolts Enron
Chidanand Rajghatta
08/16/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)
WASHINGTON: Enron Corporation, the American energy giant whose Dabhol power plant in India has been in the eye of a storm over the past decade, suffered a stunning corporate loss on Monday when its Chief Executive Jeff Skilling resigned after only six months in the job.
The news jolted the energy industry and Wall Street, sending the heavyweight stock, which has already fallen more than 50 per cent over the past year due to multiple setbacks, further down. Enron's paternalist chairman, the 59-year old Kenneth Lay, who had recruited Skilling, will return to the post he had held for 15 years.
The 47-year old Skilling, who was an energy consultant at McKinsey when Lay hired him, was considered something of whiz in the sector. He aggressively led Enron's transformation from an old-line natural gas pipeline company to a commodity trader in energy and bandwidth.
But the makeover was accompanied by a plethora of setbacks, including the controversy over the Dabhol plant and the energy crisis in California. The company also attracted widespread opprobrium from many other parts of the world over the way it operated. As a result, Enron's stock, which reached a high of $90 last August, trades at less than half of that today.
Skilling told the media that his reasons for leaving are "strictly personal and he'd just as soon keep it private," something CEO-return Lay confirmed. There are "absolutely no accounting issue, no trading issue, no reserve issue, no previously unknown problem issues" behind the departure, Lay said.
Lay, who is a Republican Party heavyweight and could just as well have been the Energy Secretary in the Bush administration had he wanted the job, said he would remain as CEO till 2005, "to make sure we have plenty of time to work out an orderly succession."
Skilling's exit comes on the heels of several other departures from the company over the past year, including that of Rebecca Mark, its high-profile executive who initiated the Dabhol plant and her successor Joseph Sutton. The company also recently lost Sanjay Bhatnagar, who was associated with the Dabhol plant since its inception and was its managing director.
Rebecca Mark was washed up after Azurix Corporation, Enron's global water business that she was put in charge of, floundered. Bhatnagar was shifted to Singapore to handle Enron's broadband business but resigned his job in January this year "to pursue other interests."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
International
World Watch
Compiled by David I. Oyama
08/16/2001
The Wall Street Journal
A10
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Nicaraguan Power Plants Draw No Bids
Nicaragua's attempt to sell six state-owned power plants faltered after the auction drew no bids, marking the latest failure in the country's privatization efforts. Nicaragua had prequalified three companies to bid for the six plants, including two hydroelectric generators, run by state electricity company Enel. The plants have a combined capacity of 350 megawatts. U.S. energy company Enron didn't present a bid before the deadline, while U.S. power company AES asked for an extension, a Nicaraguan official said. Canada's Hydro-Quebec didn't present a bid because it said Nicaragua's government couldn't provide a fiscally and legally stable contract. Enel is studying the possibility of launching a new sale either before or after Nicaraguan presidential elections Nov. 4.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Business; Financial Desk
Markets / Your Money Enron Stock Hits 52-Week Low on Skilling's Exit Reaction: Some analysts, however, reaffirm their confidence in the energy trader's bold strategy.
THOMAS S. MULLIGAN
TIMES STAFF WRITER
08/16/2001
Los Angeles Times
Home Edition
C-4
Copyright 2001 / The Times Mirror Company
NEW YORK -- Enron Corp. stock plunged to a 52-week low Wednesday as Wall Street reacted to Tuesday's surprise resignation of Jeffrey K. Skilling, chief executive of the energy-trading giant and one of the main architects of its bold business strategy.
That strategy--shedding physical assets to become a high-tech middleman for goods as diverse as crude oil and fiber-optic broadband--has increasingly come into question as Enron's stock value has been sliced in half since Skilling took over the helm in February.
Still, several analysts kept the faith Wednesday. Goldman, Sachs & Co., Banc of America Securities and Bear Stearns all reaffirmed their positive ratings on Enron stock.
Even an analyst who downgraded the shares said he was doing so more because of the uncertainty surrounding Skilling's exit than doubts about Enron's business direction.
Skilling, 47, called his reasons for resigning "purely personal" and family related. He will continue as a part-time consultant while his mentor and predecessor, Enron Chairman Kenneth L. Lay, takes back the CEO post he had held for 15 years.
After touching a 52-week low of $36.87 on the New York Stock Exchange early in Wednesday's session, Enron shares recovered to close at $40.25, down $2.68. Trading volume was huge, with more than 29 million shares changing hands--eight times the daily average for Enron.
Donato J. Eassey, a Merrill Lynch analyst based in Enron's home town of Houston, cut his short-term outlook on the stock from to "neutral" from "buy" and dropped his long-term rating to "accumulate" from "buy."
Enron tends to trade at more than 20 times per-share earnings, Eassey noted, while its competitors have price-to-earnings ratios of around 16. Enron's P/E premium could melt away "as this new uncertainty brings into question its sustainable growth outlook," Eassey said in a report issued Wednesday.
The analyst stuck by his earnings estimates for Enron, however, noting that its core energy-wholesaling business is healthy. "It is the noise surrounding its other investments that will once again test Mr. Lay's ability to right the ship," he said.
Part of the "noise" Eassey referred to is being made in California, where officials have accused Enron of profiteering during the state's electricity crisis by manipulating energy prices.
Skilling, in an interview last month with the Associated Press, rejected the accusation in typically combative fashion.
"If we were involved in creating the kind of price volatility that occurred in California, then we are the stupidest people in the world," Skilling said. "It has hammered our stock price and it has probably in some ways created a resistance to additional liberation of markets, which is what we built our entire business on."
Indeed, if Enron's aggressiveness in California contributed to a climate of caution toward electric-utility deregulation in other states, it could be a major blow to the company's business plan, analysts said.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: Enron reels as heir-apparent Skilling exits.
By C. Bryson Hull
08/15/2001
Reuters English News Service
(C) Reuters Limited 2001.
HOUSTON, Aug 15 (Reuters) - Jeff Skilling's bombshell resignation as president and chief executive of Enron Corp. just six months after taking the job sent the energy giant's stock tumbling on Wednesday and left Wall Street wondering who would replace him.
Skilling, 47, was long considered the heir apparent to Chairman Kenneth Lay, who will reassume the CEO duties he handed to Skilling in February. Lay, 59, said he had signed on through 2005 in order to have time to prepare a successor.
But the stock market immediately made it clear that Wall Street was not in favor of the departure. Enron dropped to a 19-month low, shedding 6.2 percent or $2.68 to close at $40.25 on the New York Stock Exchange in heavy trading.
Seeking to assuage concerns that Enron would have a clear executive succession plan, Lay told analysts Wednesday that he would search for his successor from a still-deep talent pool inside Enron.
Grooming and promoting from the inside is almost a necessity given the company's entrepreneurial culture which encourages employees to create new business ideas and rewards those who succeed with promotions and greater responsibilities.
"There is a lot of talent within Enron, and they have a deep bench of these people," Salomon Smith Barney analyst Ray Niles said.
Lay mentioned Mark Frevert, head of Enron's core wholesale energy trading and marketing segment, Chief Financial Officer Andrew Fastow and Chief Accounting Officer Richard Causey, and Executive Vice President Steve Kean as evidence of Enron's management strength.
With Skilling suddenly gone, Lay quickly acted to assuage investors that Enron would stay its course under his renewed watch. His return to full command was the logical choice, analysts said.
"I think it is very reassuring. He is the architect of the company, the one who took it from an intrastate pipeline company to a worldwide energy company. There is probably no one more qualified," UBS Warburg analyst Ron Barone said.
STEPPED OR PUSHED?
Skilling and Lay both maintain the resignation was a purely personal decision and not related to Enron's recent, persistent stock weakness and string of high-profile stumbles.
The Harvard Business School graduate suffered a bumpy ride during his short tenure in the No. 2 slot, where he was more often in the spotlight than the boss he took over from Feb. 12. And it was rarely pleasant.
Skilling took persistent battering over the poor performance of Enron's broadband business, a costly payment fight with the Indian government over the $3 billion Dabhol power plant and the breakup of a marquee video on-demand broadband Internet deal with Blockbuster Inc. .
California politicians also blamed Enron and others for causing their power crisis, and that culminated with a protester throwing a pie in Skilling's face while he gave a speech in San Francisco.
Analysts were mixed on whether they believed Skilling was leaving for personal reasons, and not because of the recent woes that marked his tenure. Some suggested that the problems created increasing pressure and incredibly long time demands on Skilling.
"I think the guy just said 'I've got more money than I can spend, I'm outta here,'" Barone said.
One analyst who asked not to be identified said Skilling's identification with the limping broadband business may have led the board to ask him to leave.
Niles said there was nothing good about Skilling's exit, because it leaves Enron without one of the key players in its emergence.
"I think Skilling is their principal visionary, so he will be missed," he said.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Bandwidth Market: Price For OC48 Package Shifts Downward
08/15/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -(Dow Jones)- The price for OC48 capacity on three routes shifted downward Wednesday in the bandwidth market, but no trades were done.
The OC48 contracts are for bandwidth between New York and Los Angeles, New York and Miami, and Seattle and Los Angeles for calendar year 2003.
The price on all three routes as a package now is $0.00015-$0.000165 a DS0 mile a month.
The previous quote for an OC48 for calendar year 2003 on the New York-Los Angeles route had been $0.00016-$0.00019/DS0 mile/month. But that contract is no longer being quoted, a trader said Wednesday.
A contract for OC48 for calendar year 2003 on the Seattle-Los Angeles route last traded Aug. 1 at $0.000175/DS0 mile/month as part of a similar three-route package.
A contract for OC48 capacity for 2003 on the New York-Miami route last traded Aug. 2 at $0.00016/DS0 mile/month. That represents a decline of $0.00001 on the offer price.
Traders and brokers also spent much of the day discussing the surprise departure of Jeffrey Skilling as president and chief executive of Enron Corp. (ENE). Skilling was an early proponent of bandwidth trading.
Although Skilling and the company said he was leaving for personal reasons, some wondered whether Enron's declining share price was the reason for the departure. In the last year, Enron shares had traded as high as $90.75 and as low as $42. But word of Skilling's departure sent the share price as low as $36.87 Wednesday, before it closed at $40.24 for the day.
"I kind of believe what (Skilling) said," one broker said. "The guy helped build the company, you'd think the board would stick with him if he wanted to stay."
-By Michael Rieke and Erwin Seba, Dow Jones Newswires; 713-547-9207; [email protected]
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron's CEO Skilling Departs, Testing Enron Again
By Christina Cheddar
Of DOW JONES NEWSWIRES
08/15/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- The sudden departure of Enron Corp. (ENE) President and Chief Executive Jeffrey Skilling after six months on the job has provided yet another blow to the company's ailing stock price.
Skilling is departing for undisclosed personal reasons, and his predecessor, Kenneth Lay, will replace him. Lay, who is currently chairman, has extended his employment contract by two years through 2005, and will look to mold the next level of succession.
Wall Street once marveled at Enron, the small Texas gas pipeline operator that seized the opportunities presented by deregulating energy markets to reinvent itself as the world's largest energy trading company.
But more recently, Enron has been under fire, and its stock price, which has been more than halved since the start of the year, reflects that.
"I think right now what you have is this panicked knee-jerked reaction," said UBS Warburg analyst Ronald Barone, commenting on the decline in Enron's stock price Wednesday. Enron shares set a 52-week low of $36.87 intraday, and closed at $40, down $2.93, or 6.8%.
Barone, who met earlier Wednesday with executives as part of a previously scheduled meeting between UBS Warburg clients and Enron management, said he expects Enron stock will recover once "the dust settles," and investors begin to see Enron continue to move its strategy forward.
"I don't think there is a need for any major tinkering," Barone said.
Analysts expect to see Enron continue to reduce its international exposure, look to stem losses at its broadband division and more clearly communicate how it plans to continue to achieve sustainable profit growth.
Departure Has Psychological Impact
Still, Skilling's departure has had a psychological impact because he was seen as a key architect of the company's transformation.
Skilling, a McKinsey & Co. consultant, started working with Lay and Enron in the late 1980s as the company was began its evolution to compete in the newly deregulated natural gas market.
He later joined Enron in 1990, and served as chairman and chief executive of Enron North America Corp. and its predecessor companies from 1991 to 1996, before being named president and chief operating officer.
J. Michael Walker, an Enron employee for 25 years, reported to Skilling in the mid-1990s. Walker, now a senior manager at CapGemini Ernst & Young, said investors have doubts about whether Enron can sustain its current earnings growth.
"Very few investors understand they are the company that makes markets," Walker said. "The market cannot function without Enron."
Walker expects investors will only be persuaded when they see the company continue to report strong earnings growth.
The timing of the resignation also factored into the market's reaction to the news because the announcement came as the news flow had begun to turn in Enron's favor, said Anatol Feygin, an analyst at J.P. Morgan Chase & Co.
Feygin cited the progress Enron is making in India as an example. Enron owns a controlling stake in the Dabhol Power Co., which operates a power plant that halted generating electricity in late May after the state-controlled power board, the plant's sole customer, stopped making payments for the power it purchased. After months of frustration and political wrangling, progress is being made. The Indian Supreme Court has handed down a favorable ruling, and federal ministers have agreed to a power bill that will reform the entire sector.
Enron also continues to divest itself of non-core assets. Recently, the company sold its 50% stake in a power plant in Puerto Rico and the North American water business of its Azurix unit.
However, some had been critical of the sales process because it was taking the company longer than expected to sell some of its non-core assets because of a weak global market.
Feygin said Skilling may have made the mistake trying to implement the divestiture plan too quickly.
Analysts see the sale of these assets as an essential part of Enron's strategy to focus more on its information-based and logistics businesses.
In addition, the pressure caused by the California power crisis has eased. Enron was one of the companies selling power to the state's financially troubled utilities when power prices skyrocketed to record heights. As a result, Enron shares often were pressured whenever political rhetoric turned against power generators and traders in the Western market.
Joseph Correnti, of Wayne Hummer Investments, said the news of Skilling's resignation gave some investors another reason to sell the company's shares.
"The factors are more perception than reality," he said.
Correnti was reassured by the decision of Enron's Lay to replace Skilling because he is a known factor.
Now, market watchers are focusing on getting to know others at the company who are considered to be among the company's rising stars.
Lay cited, among others, Mark Frevert, chairman of Enron's wholesale trading business; Andrew Fastow, Enron's chief financial officer; and Richard Causey, the company's chief accounting officer; as potential candidates for second-in-command.
CapGemini's Walker said Enron's talent runs deep. He cited Greg Whalley, president and chief operating officer of Enron Wholesale Services, as another example of an individual who can help Enron grow its market.
Still, the questions about Skilling's resignation will persist for near term. Those questions gained fuel from the departures several executive over the past year, including Clifford Baxter, Joe Sutton and Tom White, who all served as former vice chairmen at the company and Lou Pai, the former chief executive of Enron Energy Services.
In downgrading the near-term rating of Enron stock Wednesday to neutral, Merrill Lynch's Donato Eassey said it will take a while for the news of Skilling's resignation to "shake out, and for a new catalyst to take shape."
-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; [email protected]
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Aug. 15, 2001, 11:18PM
Houston Chronicle
Buried treasure?
Historic status for pipelines resisted
By JEFF BLISS
Bloomberg Business News
WASHINGTON -- Duke Energy Corp. set out to replace a 30-mile stretch of natural-gas pipeline in Pennsylvania and ended up underwriting a $350,000 history lesson.
State officials, using a federal preservation law, recommended that the pipeline, known as Big Inch, be considered a historic site, because it was used to supply oil to the U.S. military in World War II. To get approval, Duke agreed to produce a video and booklet that documented the building of the pipeline, whose 1,476-mile length snakes from Texas to New Jersey.
That was five years ago, and today what happened to Duke is becoming more commonplace. Pipelines owned by El Paso and Enron Corp. in states ranging from Arizona to Iowa to Pennsylvania have been recommended for historic status, adding costs and delays to attempts to replace or upgrade them.
"This is silly," said Martin Edwards, a lobbyist for the Interstate Natural Gas Association of America. "These are buried natural gas pipelines."
The companies' complaints have caught the ear of the Bush administration and members of Congress. When the House passed an energy bill this summer, it included a provision to exempt many pipelines from the historic-preservation process. The Senate is considering a similar measure.
Historians and state preservation officials say there is nothing silly about the debate over what they regard as buried treasure.
Large-diameter natural-gas pipelines began spreading across the American landscape in the 1930s through the 1950s. They brought a cleaner, more efficient alternative to the gas produced by coal that most pollution-choked cities and towns were using.
The pipelines "changed a lot of people's way of living," said Lowell Soike, the deputy state historic officer for Iowa.
Without the force of federal preservation laws, companies won't be compelled to document their pipelines, said Christopher Castaneda, an associate professor of history at California State University-Sacramento.
The House provision also may prompt exemptions for other structures, leading to a loss of a wealth of historical information, Castaneda said.
"This might be a dangerous precedent," he said.
When Duke set out to replace its Pennsylvania pipeline, it sent a routine notice of its plans to the Federal Energy Regulatory Commission, the agency that oversees interstate pipelines.
When Pennsylvania officials expressed interest in Big Inch, FERC launched a review to ensure Duke preserved the site's history to the state's satisfaction.
Duke executives say they didn't protest when told of their pipeline's new status. "We got used to doing what it takes" to get projects approved, said John Pepper, a Duke executive who oversees compliance with federal laws.
Duke began compiling research for a booklet and shot the video on the Big Inch and companion Little Inch. The pipelines got their names from the 24-inch and 20-inch diameter segments used in their construction.
In the video, designed for fifth-graders and sixth-graders, a fictional character named "Professor Bob" describes how German U-boats roamed the Atlantic seaboard early in World War II and sank U.S. oil tankers at will.
The federal government and a coalition of companies that included the former Standard Oil Company of New Jersey, Shell Oil Co. and Gulf Oil Co. conceived an overland route to avoid the submarine attacks. Big Inch would carry oil, and Little Inch would transport kerosene and other petroleum products.
Men like "Wedgehead" Madden and "Hard Times" Schwartz laid 1,476 miles of pipe over a route that cut through the mountains, rivers and marshlands in just 350 days to complete Big Inch in 1943. Workers finished the final weld on Little Inch the next year. The pipelines were the longest and heaviest constructed at the time.
Texas Eastern Transmission Corp., a unit of Duke, converted the Big Inch pipeline to natural gas after purchasing it from the government in 1947. The company turned over operation of Little Inch to the Texas Eastern Products Pipeline Co.
The Big Inch story illustrates why a buried pipeline's legacy should be documented, historians and preservation officials said. Communities often mark unseen history, placing plaques where houses stood and trails meandered.
"Just because it's not a physical manifestation we can see, I don't agree there's no history," Castaneda said.
For several years, pipeline companies went along with states' requests. That changed when Houston-based El Paso this year decided to resist attempts to classify as historic its pipelines through Arizona. The company said the designation has added seven to eight months to repairs.
Castaneda said that while he is against the historic-preservation exemption, he understands the pipeline industry's unwillingness to compromise.
"Should a company have to spend tens of thousands of dollars to document history?" he asked.
Aug. 15, 2001, 11:59PM
Houston Chronicle
Enron plans to quickly fill top positions
By LAURA GOLDBERG
Copyright 2001 Houston Chronicle
Enron Corp. plans to move quickly to name potential successors to Jeffrey Skilling, who unexpectedly stepped down Tuesday as the energy giant's chief executive officer and president.
Chairman Ken Lay took over as CEO, a role he gave up to Skilling in February. Lay is also serving as president.
Within days or weeks, Lay plans to name two Enron executives to join him in the office of the chairman, Enron spokesman Mark Palmer said Wednesday.
The two would get responsibilities that could give them an opportunity to become president or chief executive officer "at the right time," Palmer said. He wouldn't speculate on who might be named.
Skilling surprised Wall Street with his announcement he was leaving for undisclosed "personal and family reasons." His decision, he said, wasn't related to Enron's business.
Lay stressed that Enron is in good shape, no strategic changes are planned and no problems are about to be disclosed.
But Skilling's resignation -- especially after just six months on a job he worked a long time to get -- raised questions among analysts, who were quick to note Enron's closing stock price had dropped from as high as $82 at the end of January to $42.93 Tuesday. Skilling's departure was made public after Tuesday's market close.
Problems have dogged Enron, including troubles with its new broadband venture, uncertainty over its potential exposure from California's energy woes, continued disputes over a power plant project in India, and questions about the company's long-term strategy to expand from energy trading into a variety of other commodities.
Skilling's departure simply added more questions, leaving investors wondering Wednesday who might fill the void and whether other problems are lurking.
At one point Wednesday, Enron's stock declined to $36.87, but it gained ground by the time the market closed, ending the regular trading day down $2.68 at $40.25.
Lay, when he spoke to analysts Tuesday during a conference call, stressed that Enron has plenty of experienced talent in its senior ranks. He said top executive roles would be filled internally.
Names bandied about on Wall Street Wednesday as possible successors included Mark Frevert, CEO of Enron Wholesale Services; Lawrence "Greg" Whalley, chief operating officer of Enron Wholesale Services; and Dave Delainey, CEO of Enron Energy Services.
In his call, Lay mentioned those three but also singled out other Enron executives including Stanley Horton, Kevin Hannon, Andrew Fastow, Richard Causey and Steven Kean.
Analysts give differing views of Enron's talent pool.
Carol Coale, with Prudential Securities in Houston, wrote in a research note that she was "concerned over the depth of management at Enron," while Raymond Niles at Salomon Smith Barney, also in a research note, talked about Enron's "deep bench."
Coale met separately with Skilling and Lay on Wednesday and said she walked away feeling "no new bad news" is on the way from Enron.
She expects Kenneth Rice, head of Enron's broadband unit, to announce his resignation soon but said it won't be a total surprise. Palmer declined comment.
Two other executives left Enron earlier this year.
The biggest question hanging over Enron is whether its move into markets such as metals and pulp and paper will prove wise, said Andre Meade, an analyst with Commerzbank Securities.
The company's core business of wholesale trading and marketing of natural gas and power of remains strong, he said.
CHINA: ANALYSIS-India investors seen gaining from U.S. policy shift.
By Nick Edwards
08/16/2001
Reuters English News Service
(C) Reuters Limited 2001.
HONG KONG, Aug 16 (Reuters) - Investors in India are set to reap the benefits of a shift in U.S. foreign policy that will urge faster progress on economic reform to provide Washington with a strategic counterbalance to China in Asia.
Ratings agencies and the IMF have both broadsided India in the past week over a poor economic performance and its stumbling decade-long reform effort. But a $540 million trade concession from Washington, and reassurances that sanctions against New Dehli will be scrapped, are signs of better times ahead.
Investors hope keener U.S. interest in India could lead to a dynamic similar to that in China, which under constant prodding from Washington the past three decades has become a money magnet. China won 80 percent of Asia's foreign direct investment last year and has been a portfolio investor's haven in 2001.
"The Bush administration is pretty determined to improve relations with India and improve its economic performance," Andrew Ballingal, director of global asset allocation at TAL CEF Asset Management, told Reuters.
"It's always sensible when considering strategic partners to make sure their economy works," he said.
Fresh support from India's single biggest trading partner - analysts say Indian exports to the U.S. top $9 billion and two-way trade is around $14 billion - could not be better timed.
Export growth slumped to just 1.76 percent year on year in India's April-June first quarter, while imports fell 2.4 percent. Industrial growth recorded a dismal 1.9 percent year on year in May and overall GDP growth sank to 5.2 percent in 2000/01 from 6.4 and 6.6 percent in the previous two years.
POLARISED PERFORMANCE
Foreign fund investments in India's equity and debt had shrunk to $91 million in July from $900 million in January and the benchmark Bombay stock index has lost 16 percent, or $8.5 billion of its value this year.
This comes while China's hard currency B-share markets have roughly doubled in value this year and its economy has defied the global slowdown with exports up 27.8 percent year on year in 2000 and annual GDP growth seen at about eight percent to 2003.
The polarised performance is underscored by foreign direct investment (FDI). China snared $40.8 billion worth in 2000 compared to $2.6 billion spent in India, which has attracted just $23.6 billion over the course of 10 years of economic reform.
But analysts say India stands to win as President George W. Bush draws a firm line between political and economic relations to counter the strategic gains China will reap from a U.S. policy of engagement to bring Beijing into the global trade system.
"Trade between nations and commerce is good for the U.S. interest in general... if you trade you're less likely to fight," said Gene Galbraith, chief executive at analysts Asiawise.
"But the pressure is on Bush from certain factions in the Republican party to be more firm on China," he said. "Bush is playing the India card against China in part... and America's views of India are changing rather rapidly for the good."
Rather than being a passive pawn on the foreign policy board, investors say New Delhi should seek to capitalise on a shift in U.S. strategy to resolve reform fatigue.
LUMBERING ELEPHANT
"India has had the great misfortune to take British 1940s socialism and perfect it," Ballingal said.
"India really is more of a lumbering elephant to China's leaping tiger, but people are too pessimistic about India. Things have improved over the past five or six years," he said.
Advocates of India's potential say its burgeoning software industry - a global leader - large English-speaking middle class, huge one billion-strong population, accounting and legal infrastructure and its democracy underpin their faith.
"China has been incentivised to kick-start reforms because of the WTO and the Olympics. The reason I'd put China ahead of India at the moment is because reform is already happening," Robert Penaloza, a fund manager at Aberdeen Asset Management said.
"But just because things are not there it doesn't mean they can't be, so there is opportunity... the intention is there in the government, they just have to prove their intentions," said Penaloza whose firm manages about $300 million in India.
A catalogue of delays in the privatisation of aluminium maker Balco, the Air India airline and now telecoms giant VSNL are unlikely to persuade sceptics.
Bureaucracy does nothing to encourage doubters who see the woes of U.S. energy giant Enron - India's biggest foreign investor caught in a billion dollar dispute over a private power contract - as symptomatic of India's problems.
If India gets its act together, economists like BNP Paribas' Andrew Freris say India could grow at nine percent a year, rather than stacking up opportunity costs of economic underperformance.
With Washington wooing New Delhi in the Asia-Pacific power balance, investment capital may find itself serving the interests of foreign policy especially if China backslides on reform.
"We think that FDI will continue to flood into China for years to come," Nicholas Bibby, an economist with UBS Warburg in Hong Kong said. "But if China fails to deliver for a lot of these companies, they may well start looking towards India."
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
INDIA: Belgium's Tractabel pulls out of India - paper.
08/16/2001
Reuters English News Service
(C) Reuters Limited 2001.
BOMBAY, Aug 16 (Reuters) - Belgian utility Tractabel Power has exited an Indian joint venture becoming the fourth foreign company to pull out of the country's beleaguered power sector, a business daily said on Thursday.
Tractabel has sold its entire 50 percent stake in Jindal Tractabel Power Company (JTPC) for 2.35 billion rupees, the Economic Times said. The stake was sold to the Jindal group and financial institutions.
Jindal officials were not immediately available for comment.
India's power sector has been hit by a spate of pullouts by foreign companies and the continuing controversy over U.S. energy giant Enron Corp's power project.
Enron has been fighting with a local utility over payment defaults and high tariffs and has already announced its decision to pull out of the $2.9 billion, 2,184 MW project.
Foreign companies are upset over legal and bureaucratic hassles holding up their projects and the inability of cash-strapped state-run utilities to pay for power purchases.
Indian laws do not allow direct sale of electricity to consumers and all power generated has to be first sold to the state utilities for distribution.
Cogentrix of U.S., South Korea's Daewoo Corp, and Electricite de France have already pulled out of the country, while Britain's PowerGen Plc has made clear its desire to quit.
JTPC is a 50:50 joint venture between Tractabel and the Jindal group, who are one of India's steel producers. The company runs a 260 MW power plant in the southern state of Karnataka which supplies power to a 1.6 million tonne steel plant owned by a Jindal group company. ($1=47.11 Indian rupees).
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
TERMS OF REFERENCE FOR INDIA'S ENRON PROBE TO BE FINALISED
08/16/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.
MUMBAI, Aug 16 Asia Pulse - Maharashtra's Chief Minister, Vilasrao Deshmukh, said the terms of reference for a judicial probe into the Enron agreement would be finalised by August 21.
"We discussed various aspects of terms of references but pending legal opinion on certain issues have postponed the coordination committee meeting to August 21," Deshmukh said after a Democratic Front (DF) coordination committee meeting.
The Chief Minister said the government has broadly accepted the draft document of terms of references prepared by DF allies, barring Congress and Nationalist Congress Party.
"We have discussed certain issues at length, but we have to put the final terms of reference in a legal framework", Deshmukh said.
He added that the government was likely to file a fresh affidavit in the Supreme Court, and "We have ensure that our case is not prejudiced there."
On reports about winding up of Godbole renegotiation panel, Deshmukh said he will request the panel to carry on the renegotiation process, because even if Enron pulls out of the project, the panel's recommendations were required by the government.
(PTI) 16-08 1712
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron's Former CEO Says He Failed in Some Businesses, CNBC Says
2001-08-15 19:55 (New York)
Houston, Aug. 15 (Bloomberg) -- Enron Corp.'s former Chief
Executive Jeffrey Skilling, who resigned yesterday, said he
decided to leave the energy-trading company after feeling ``he had
failed in crucial business areas,'' financial news network CNBC
reported, citing the Wall Street Journal.
Skilling quit just six months after he took the job, CNBC
reported. Skilling, who said he left for personal and family
reasons, is the third top executive to leave Enron in the past
year.
Skilling, who joined Enron in 1990, said yesterday that the
company is sound, and that his reasons for quitting were strictly
personal and would be kept private.
Many investors give Skilling much of the credit for
transforming Houston-based Enron from a slow-growth operator of
natural-gas pipelines into the second-biggest U.S. energy company
after ExxonMobil Corp. Enron's shares fell $2.68 to $40.25 today.
|
{
"pile_set_name": "Enron Emails"
}
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