FYI, read the item below about the 25+ deals EES signed in CA.  There must be 
several customers who are willing to weigh in on the direct access issue.  
Jim, now that you've added EES to your plate, can you influence the 
discussions at EES about having customers participate?  I have the sense that 
the pushback is from us, not them. thx. kd
---------------------- Forwarded by Karen Denne/Corp/Enron on 04/03/2001 
04:40 PM ---------------------------



From: The Buzz@EES on 03/09/2001 02:46 PM
To: The Buzz Distribution
cc:  
Subject: the Buzz, 3-9-01


 the Buzz  Friday, March 9, 2001

In the Buzz this week:

EES and J.C. Penney Seal the Deal: Enron Energy Services has entered into a 
long-term energy management agreement with J.C. Penney. Check out the flash 
recognition piece: 


California Mid-Market Team Making Tracks: The California Mid-Market has 
closed over 25 deals during the first two months of 2001. Response to EES, 
product in the San Diego area has been favorable in the highly volatile and 
complicated regulatory environment of California. The teams, definitive 
message to customers has been Enron,s ability to provide price certainty in 
an uncertain market. 

Deal highlights include Senior Aerospace Ketema, Applied Micro Circuits 
Corporation, Neurocrine Biosciences, Hamilton Sundstrand, a United Technology 
Company, Chicago Pizza and Brewery, LA Fitness, Mission Valley Hilton Hotel, 
Marriott Residence Inn, Red Lion Hotel, Holiday Inn and Suites. In addition, 
team members have closed deals involving several San Diego television 
stations, grocery stores and auto dealerships. Click on link to view deal 
team members: http://inet.ees.enron.com/vision/comm/eespeople/

Commodity Markets Brown Bag Presentations Begin Next Week: During the month 
of March, the EES Commodity Markets teams will present two brown bag 
presentations to update us on their activities in U.S. markets. The first 
presentation, next Wednesday, March 14, will feature Jim Wood, Ed Hamb, Ryan 
Frasier and Nicole Schwartz. They will discuss their activities in 
California, Ohio and Illinois markets, as well as those markets' structures 
and regulatory situations, product offerings and value proposition. The 
presentation will be held in EB5C2 at 11:30. Lunch will be provided so get 
there early to get a seat!

Texas Electric Choice Launces Statewide Advertising Campaign: With 
deregulation in Texas scheduled to officially begin on January 1, 2002, the 
Public Utility Commission of Texas (PUC) has launched a statewide advertising 
blitz to get the word out. The PUC will begin with a pilot program this 
summer, where five percent of customers currently using investor-owned 
utilities choose their Retail Electric Provider (REP). The chosen customers 
will have their electricity services switched to their REP of choice on June 
1, 2001. The Pilot Program will expose customers to the Texas Electric Choice 
program and give them the opportunity to learn how the program works so they 
can make informed decisions about their REP. The PUC will continue to 
regulate the transmission and distribution of electricity to ensure the safe 
and reliable delivery of power to homes and businesses. Residential customers 
who would like to enroll in the Pilot Program can call 1-266-PWR-4-TEX 
(797-4830) or visit www.powertochoose.org for a list of certified REP,s. Don,
t forget to watch for a special Enron Employees Exclusive offer through the 
New Power Company on March 12.

Governor Davis announces first round of long-term power contracts: California 
has secured enough electricity to light almost 9 million homes over the next 
decade with 40 long-term power contracts.  For the first 5 years, the 
contracts provide power at an average of $79 per Mw hour, which is about 75% 
below recent costs. The price later drops to $61 per MW hour. The contracts 
will only cover 60% of the states energy needs, meaning that Northern 
Californians still face the prospect of daily blackouts when demand surges in 
the coming months. Some of the contract negotiations did result in 
accelerated power plant construction, adding an estimated 5,000 MW to the 
state grid within the next two years, some by this summer. Enron was one of 
the companies to sign a contract with California.

Californians still without enough Power: Though the weather in California is 
improving and consumers are using less energy to heat their homes, the 
California Independent System Cal ISO Operator still expects supplies to drop 
below 7 percent and issued several Stage 1 alerts this past week. Why? 
According to the ISO, about 10,278 megawatts was offline for both planned and 
unexpected repairs and the amount of energy presently imported to California 
from out-of-state sources fell from 4,917 MW to 1,855 MW (one megawatt is 
enough power for about 1,000 homes).

Other States Beckon California Businesses with Energy Promises: States from 
Alaska to Virginia are putting out the red carpet in an effort to entice 
California companies frustrated with escalating power prices and rolling 
blackouts to move to their state. State marketing campaigns are specifically 
geared towards promoting the availability of constant and affordable power 
offered by their state. Even with the additional tangible economic 
incentives, such as tax breaks, few California companies have actually picked 
up and left according to officials. &We,ve always met the challenge. We,re 
not leading the world in exports for no reason.8 boasted Lon Hatamiya, 
California Secretary of Technology, Trade and Commerce. 

Energy-Efficient Home Improvements Study Completed by Owens Corning: EES 
customer Owens Corning, a world leader in building materials systems and 
composite systems, has just concluded its second annual &Energy-Efficient 
Home Improvements8 study to determine how homeowners were dealing with their 
rising heating bills.  Results:
? 60% say energy bills are higher
? 26% say increase is over $50 (10% of total say that payment is difficult)
? 90% say energy-saving improvements would be made if tax credit available 
(65% for financial reasons, 47% for resale value)
? 40% say increase in heating bills has caused them to cut back on eating 
out, entertaining or making other personal expenditures (ages 18-34 note that 
55%  are cutting back) therefore impacting retailers, restaurants, other 
businesses

Rich Products Making Room Temperature Smoothies: High-tech and room temp 
describe the new products coming out of EES customer Rich Products, recently 
completed Niagra Street plant. With the completion of the $10 million 
expansion, the company is set to produce an array of aseptic (free from 
putrefying microorganisms) beverage products that do not require 
refrigeration. While not currently available on a retail basis, Rich 
strawberry, banana, and wild berry smoothies are being produced for a key 
wholesale client.

Starwood and Cisco to Offer Internet Access to Hotel Customers: Hotel giant 
and EES Customer Starwood Hotels & Resorts Worldwide announced a strategic 
relationship with Cisco Systems to deliver secure, high-speed Internet access 
and next-generation services to hotel guests beginning in 2001. These 
advanced services will be available throughout its Westin, Sheraton, Four 
Points, St. Regis/Luxury Collection and W hotel brands.

EES Foosball Tournament a Great Way to Meet Other EES Employees: In the 3rd 
EES Foosball Championship, 26 teams (52 people) participated from across many 
departments in EES. The tournaments are helping employees from different 
department meet each other and thus when they get back to their desks to do 
their work, they now know people they may have never known before in 
different business units. This kind of interaction helps people in EES 
communicate across business units more effectively, which improves 
efficiency. Call Gallin Fortunov (x58706) to get in on the fun. Click on link 
to view tournament results:
 

Desert Storm and the Tennessee Valley Authority: The same infrared cameras 
and heat seeking missile technology used to bomb hidden Iraqi tanks during 
Operation Desert Storm is used by the Tennessee Valley Authority (TVA) to 
help prevent power outages. The TVA is one of the nation,s first utilities to 
employ military technology to improve power reliability. Infrared scanning, 
or thermography, has been used by TVA since 1998 to help identify &hot spots8 
along transmission lines and substations across the utilities 7-state region. 
Abnormal heat can be a predictor of equipment failure and the infrared 
cameras allow technicians to read variances in temperatures as small as 
one-tenth of a degree centigrade. The TVA estimates that the cameras have 
already saved at least $10.6 million in equipment costs and improved 
reliability. The goal is to reduce transmission interruptions below their 
already low levels by at least 8 percent every year.

Whew! It,s Hot. . .Or It,s Going to Be: And we,re not just talking about 
Houston. Two new United Nations sponsored reports show growing evidence that 
human activities are indeed creating global warming and predict that the 21st 
century will have more droughts, floods, storms, insect-borne diseases and 
other side effects due to global warming. Climate change is scheduled on the 
agenda at many of Bush,s upcoming sessions. Key climate policies supported by 
Bush include international trading in pollution credits, more use of natural 
gas and a permanent tax credit to encourage U.S. businesses to develop 
cleaner energy technologies.