INDIA: Enron chief says many want Dabhol row to end.
Reuters English News Service, 07/10/01

Transmission Line Delays Hit Scottish Generators
Dow Jones Energy Service, 07/10/01

Enron and Anschutz Invest in Tropic Networks; Leading Communications Provider 
and Investment Company Subscribe to Tropic Networks' Optical Packet 
Networking Vision
Business Wire, 07/10/01

Nigerian gas company signs accord to supply US power firm
Agence France-Presse, 07/10/01

Enron pushes for resolution of Dabhol power project deadlock
Agence France-Presse, 07/10/01

Judge tells deal critics to continue utility talks
The Star-Ledger Newark, NJ, 07/10/01

Tacoma Power wants millions Customer refund: Utility estimates it overpaid 
electricity generators about $72 million
The News Tribune Tacoma, WA, 07/10/01





INDIA: Enron chief says many want Dabhol row to end.

07/10/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW DELHI, July 10 (Reuters) - Enron Corp chairman Kenneth Lay said on 
Tuesday that governments of several countries and some of the world's biggest 
banks wanted an early end to the row over its troubled Indian unit. 
"I think it's in everybody's best interest - the government of India, the 
government of the U.S., the investors, the government of Japan - we have many 
government financial entities involved in this project," he told reporters.
"So you've a lot of interests here who would like to see this resolved and 
resolved very quickly," Lay said after a meeting with Finance Minister 
Yashwant Sinha. 
Lay said Monday's meeting with the finance minister did not yield any 
solution for the U.S. energy firm's $2.9-billion Dabhol power plant, which is 
locked in a bitter payments battle with Maharashtra State Electricity Board 
(MSEB), a state utility. 
"Obviously we didn't come to any conclusion today. We didn't expect to come 
to any conclusion today. It will take some more work...but certainly we're 
very hopeful," he said. 
Lay met federal Power Minister Suresh Prabhu for nearly two hours on Monday 
and was to meet the chief minister of the western state of Maharashtra, where 
Dabhol is located, later on Tuesday. 
In May, Enron issued a preliminary termination notice after MSEB defaulted on 
payments, and the utility, Dabhol's sole buyer, stopped taking power from the 
project. 
Enron holds a 65-percent stake in the Dabhol Power Co. Its first phase of 740 
MW was completed in 1998 while a second phase adding another 1,444 MW was 
almost complete when its contractor stopped work because of the dispute. 
Lay said the governments of Oman and Abu Dhabi were involved in contracts for 
liquefied natural gas for the second phase of the project. 
The project has been funded with a debt of $2 billion. Of this, offshore 
lenders have contributed about $600 million and the remaining $1.4 billion by 
local institutions and banks. 
Lay said the biggest banks from United States, Europe, Canada and Japan were 
involved in the project.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Transmission Line Delays Hit Scottish Generators

07/10/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LONDON -(Dow Jones)- Construction of a long-awaited transmission line that 
would boost access of Scottish generators to the English market remains on 
hold because of foot-and-mouth related restrictions, the National Grid Group 
PLC (NGG) told Dow Jones Newswires Monday. 
"The North Yorkshire Transmission Line Project, that went on hold with the 
onset of the foot-and-mouth epidemic late February, remains on hold because 
construction teams cannot access areas classified as infected," said the 
National Grid spokesman.
The 75-kilometer transmission line between Teeside and the Vale of York would 
reduce the present bottleneck in northern England, allowing more 
Scottish-generated electricity through to customers in England. 
"This is particularly difficult for National Grid because we have an 
obligation to facilitate competition," said the National Grid spokesman. 
"This problem reduces the ability of players to compete, plain and simple." 
The National Grid spokesman could not estimate when construction would 
resume, but said, "Once we start, it will be at least two to three years 
before the transmission line will be available for use." 
The Department for the Environment, Food and Rural Affairs could not comment 
on when access restrictions would be lifted in the North Yorkshire area, but 
a spokeswoman said, "We cannot even begin discussion of lifting restrictions 
on access to infected areas, until four weeks after the last diagnosed case 
has been killed, and the area cleaned and disinfected." 
Generators in Scotland are hit hardest by the delay because it interferes 
with their plans to compete more actively in electricity markets in England 
and Wales. 
A spokeswoman for Scottish and Southern Energy said, "We do have to improve 
access to markets in England and Wales," and added, "While we understand the 
circumstances, we still look forward to the increased flexibility that the 
North Yorkshire line will provide." 
A spokesman for Scottish Power said, "As a Scottish company, we want the 
Yorkshire line, to further open the U.K. market to competition." 
The National Grid spokesman said some newly built generation is waiting to 
come on line pending completion of the line. Companies would not comment on 
their involvement, citing commercial sensitivity. 
According to National Grid, a 1,875 megawatt plant at Teeside is subject to 
operational restrictions until the new transmission line is complete. 
This plant enhanced the necessity for the new transmission line when it came 
on line in 1993, because existing lines could not accommodate the total 
capacity of the Teeside plant. 
The plant is owned by a consortium, with Enron Europe owning half the shares. 
Midlands Electricity (19%), Northern Electricity (15%), SWEB (8%), and SWALEC 
(8%) make up the rest of the consortium. 
Enron said the Teeside plant isn't subject to any operational restrictions. 
National Grid first applied for governmental consent for the new 4,840 
megavolt amps transmission line in 1991. After two public inquiries, 
extensive planning, and conflicts with groups opposing the construction, they 
received consent to begin construction in July of 2000, and began in 
September of that year. 
-By Sarah Spikes, Dow Jones Newswires; +44-(0)20-7842-9345; 
sarah.spikes@dowjones.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Enron and Anschutz Invest in Tropic Networks; Leading Communications Provider 
and Investment Company Subscribe to Tropic Networks' Optical Packet 
Networking Vision

07/10/2001
Business Wire
(Copyright (c) 2001, Business Wire)

ANDOVER, Mass. & OTTAWA, Canada--(BUSINESS WIRE)--July 10, 2001-- Tropic 
Networks Inc., a ground-breaking company building optical packet network 
(OPN) systems for carriers who demand a greater ability to cost-effectively 
scale their metropolitan area networks, today announced that Enron Broadband 
Services, a subsidiary of Enron Corp. (NYSE: ENE) and Anschutz Investment 
Company were key investors in Tropic's previously announced $60 million 
second round of funding. Anschutz Investment Company is the financial arm of 
the Anschutz Company, which founded and incubated Qwest Communications. 
"The relationships we have been able to forge with Enron and Anschutz are 
votes of confidence for Tropic's optical packet networking vision, and 
enhance our credibility in the wide-open metro market," said Kevin Rankin, 
president and CEO for Tropic Networks. "The business insight that comes with 
the involvement of these blue chip investors is invaluable to Tropic's 
continued success."
Tropic's OPN systems bring new levels of dynamic control and scalability to 
networks by combining data services with intelligent optical transport in a 
single, carrier class package. The Company's vision of optical packet 
networking incorporates IP as the dominant services protocol, Ethernet as the 
preferred data interface and optical wavelengths as the ubiquitous 
transmission medium. This model enables carriers to enhance their revenue 
opportunity by extending the life of existing networks and services while 
adding compelling new IP, Ethernet and wavelength services. Tropic Networks 
is using the investment to help drive the development of its initial customer 
relationships and its OPN product line. 
"Tropic Networks' optical packet networking system has the potential to make 
a major impact on carriers' metropolitan area networks in terms of 
performance and scalability," said Scott Carpenter, vice president for 
Anschutz Investment Company. "Tropic clearly understands the importance of 
scalability not only at the node level, but also at the network, services and 
business levels." 
Tropic's optical packet networking system is the first to address the needs 
of scalability from the `box to the business'. In addition to providing 
unmatched levels of intelligence at the node level, this model allows 
carriers to deliver a wide range of services over a single infrastructure, 
and manage the balance between capital expenses, operational expenses and 
revenue. 
Anschutz and Enron are members of Tropic's investor partner team which 
includes Crescendo Ventures, Goldman Sachs (NYSE: GS), Altamira, Raza Venture 
Funds, Celtic House International, Kodiak Venture Partners and the Ontario 
Teachers' Pension Plan Board, all of whom invested in the $60 million second 
round. Tropic Networks has raised $67 million US through two rounds of 
financing. 

About Tropic Networks 

Tropic Networks is a privately held company focused on delivering optical 
packet networking (OPN) systems for carriers who demand a greater ability to 
cost-effectively scale their metropolitan networks to meet the current and 
future demands of IP traffic. Its unique solution enables carriers to enhance 
revenue opportunities by extending the life of existing networks and 
services, while adding compelling new IP, Ethernet and wavelength services. 
Tropic Networks revolutionizes the cost, availability and flexibility of the 
carrier's network by providing unmatched levels of scalability and control, 
and the ability to dynamically tune the network and business case as service 
portfolios evolve with customer demands. Based in Ottawa, ON, and Andover, 
MA, Tropic was formed in May 2000 by an experienced core team of optical and 
networking engineers and executives. For more information, visit 
www.tropicnetworks.com. 

About Anschutz Investment Company 

The Anschutz Company and its affiliated companies are principally engaged in 
telecommunications and media, natural resources, transportation, real estate, 
sports and entertainment. The Company, headquartered in Denver, Colorado 
since the late 1960s is one of the largest privately owned and operated 
companies in the United States. For more information, visit 
www.anschutzinvestments.com.


CONTACT: Tropic Networks Sterling Hager Dan Poranski Tom Boucher 978-482-3301 
617-926-6665 x220 dporanski@tropicnetworks.com tom@sterlinghager.com 
08:00 EDT JULY 10, 2001 

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Nigerian gas company signs accord to supply US power firm

07/10/2001
Agence France-Presse
(Copyright 2001)

LAGOS, July 10 (AFP) - The Nigerian gas firm NLNG said Monday it had signed 
an accord to supply gas to the US power company Enron from 2005, when two new 
NLNG units come on stream. 
Nigerian Liquefied Natural Gas (NLNG) will deliver one billion cubic meters 
of gas per year to Enron, the group said in a statement.
NLNG Managing Director, Andrew Jamieson, said the agreement "represents 
confidence in the capability of the NLNG as a reliable supplier." 
The NLNG is a Nigerian joint venture company whose shareholders are the 
Nigerian National Petroleum Corporation with 49 percent, Shell with 25.6 
percent, TotalFinaElf with 15 percent, and Agip 10.4 percent. 
ade/pcj/da

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Enron pushes for resolution of Dabhol power project deadlock

07/10/2001
Agence France-Presse
(Copyright 2001)

NEW DELHI, July 10 (AFP) - The chairman of US energy giant Enron Corp. 
Kenneth Lay met Indian government officials Tuesday to push for a resolution 
of its dispute over a stalled power project near Bombay. 
The Enron-backed Dabhol Power Co's 2,184 megawatt power plant stopped 
generating electricity in May when its sole client, the Maharashtra State 
Electricity Board (MSEB) failed to clear its long- overdue power bills.
After the payement defaults, MSEB also refused to buy any more power 
following a dispute over tariffs. 
Lay flew in from Enron's US headquarters for a meeting with Indian Finance 
Minister Yashwant Sinha in New Delhi to try and break the deadlock over the 
power purchase agreement. 
"It is in the government and the country's interest to revive the project," 
Lay told reporters after meeting Sinha. 
Lay said he was optimistic about finding "an amicable solution" to the 
problem in due course. 
"We did not come to any conclusion and we did not expect to come to any 
conclusion. More work is required by us and the government to review the 
project," Lay was quoted as saying by the Press Trust of India (PTI). 
The first part of the power station began generating electricity in May 1999 
while the second part is close to completion. The 2.9- billion dollar Dabhol 
project comprises the single largest US investment in India. 
PTI said Lay also had a two-hour long meeting with Power Minister Suresh 
Prabhu. 
Indian state-owned financial institutions have lent 1.4 billion dollars to 
the Dabhol project, while foreign lenders have an exposure of 600 million 
dollars. 
Loans by foreign lenders are guaranteed by the federal government, but the 
Indian lenders do not have the same cover. 
Foreign lenders in May this year authorised the power company to issue a 
preliminary termination notice to MSEB after payment defaults. 
It issued the notice in June, setting the clock ticking on a six month 
deadline for the electricity supply contract to be cancelled. 
MSEB has also said it does not want power from the second phase of the 
project, introducing another element to the dispute. 
The Indian government has been trying to pursue other states to buy power 
from the project, but have found it a difficult proposition. 
uc/gh/am

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Business
Judge tells deal critics to continue utility talks
JOSEPH R. PERONE
STAR-LEDGER STAFF

07/10/2001
The Star-Ledger Newark, NJ
FINAL
026
(c) 2001. The Star-Ledger. All rights reserved.

An administrative law judge ruled yesterday that critics of the GPU 
Inc.-FirstEnergy Corp. merger should continue talking with the utilities for 
two more weeks to reach a settlement that will allow the transaction to go 
forward. 
Administrative Law Judge Louis McAfoos 3d gave the parties until July 20 to 
hammer out their differences over FirstEnergy's proposed $4.5 billion 
purchase of GPU.
The settlement talks involve the state Ratepayer Advocate's Office, GPU 
suppliers Enron and Shell and the state Board of Public Utilities, as well as 
the two power companies. 
GPU, based in Morristown, is the second-biggest utility in the state, with 1 
million customers. 
The BPU's staff is concerned the joining of GPU and the Ohio utility will 
lead to large rate hikes for consumers when electric rate caps come off in 
2003. Consumer advocates worry GPU might pull out of its Morristown 
headquarters and service levels would drop after the merger. 
"We'd like to see the headquarters stay in Morristown," Ratepayer Advocate 
Blossom Peretz said. "I don't want to have to call Ohio when I have a 
complaint." 
GPU, which declined to comment, has 2,100 employees in New Jersey from 
Hunterdon to Monmouth counties. 
Peretz also wants to ensure GPU shares savings with consumers and treats 
low-income customers fairly because they sometimes end up paying a 
disproportionate share of their income - as much as 25 percent - for energy 
bills. 
FirstEnergy, she said, also might force GPU to leave the PJM power grid that 
serves the Mid-Atlantic states, including New Jersey. FirstEnergy is part of 
the Alliance, a group of utilities that have formed a power grid to buy and 
sell electricity in the Midwest. GPU has said during previous testimony it 
has no plans to leave the PJM grid. 
Peretz also doesn't want consumers to end up paying any penalties resulting 
from a clean-air lawsuit filed by the federal government against 
FirstEnergy's coal-burning plants in Ohio. 
"We don't want New Jersey ratepayers to be responsible for the cleanup," she 
said. 

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Front Page
Tacoma Power wants millions Customer refund: Utility estimates it overpaid 
electricity generators about $72 million
Les Blumenthal
The News Tribune

07/10/2001
The News Tribune Tacoma, WA
South Sound
A1
(Copyright 2001)

Tacoma Power estimates West Coast power generators and marketers owe it $72 
million in refunds for power bought on the open market between October 2000 
and May, when wholesale prices surged more than 10 times over previous 
levels. 
The estimates, filed in affidavits with Federal Energy Regulatory Commission 
Judge Curtis Wagner Jr., are the first from the utilities since electricity 
prices began their sharp run-up last summer.
Wagner said Monday he would recommend negotiations continue over an effort by 
Northwest utilities to recover what they now estimate was more than $680 
million in alleged overcharges to the region's electricity ratepayers. 
Other estimates included Seattle City Light, $222 million, and Snohomish 
Public Utility District, $229 million. The Bonneville Power Administration 
estimated it should receive up to $140 million in refunds from purchases it 
had to make as a result of the second worst drought in the region's history. 
But Bonneville also sold electricity at various times in the California 
market. And while some utilities in California believe Bonneville owes them 
money, BPA said in its affidavit it has "no liability" for refunds. 
Wagner has spent the past 15 days trying to negotiate a settlement both for 
Northwest utilities and California, where the state has estimated consumers 
are owed $8.9 billion. 
The Federal Energy Regulatory Commission had given Wagner and those involved 
in the negotiations until Monday to reach an agreement. With the unsuccessful 
end to those talks, Wagner now has a week to make a recommendation to the 
commission, which would then decide on the refunds. 
But Wagner, in outlining what his recommendation might include, indicated he 
wasn't convinced the Northwest had been treated fairly in the negotiations 
because so much of the focus was on California. 
"With regard to the Northwest, I may very well recommend further negotiations 
with a settlement judge because they have not really had their day in court," 
he said. 
Philip Chabot, a Washington, D.C., lawyer who represented Tacoma Power in the 
negotiations, said he thought the judge's suggestion for additional 
negotiations was a good one. 
"California is the 500-pound gorilla, they drive the market and they have 
driven the negotiations," Chabot said. "Obviously, we weren't successful in 
getting a settlement. But we moved the process forward. It would be all to 
the good if we got negotiations focusing on the Northwest." 
Simon ffitch, a Washington assistant attorney general who represented the 
state in the talks, said he too thought Wagner's interest in additional 
Northwest talks was a positive development. 
"We support that," ffitch said. "I am disappointed we couldn't reach a 
broader agreement, but we gave it a good try. We are at the beginning of the 
process." 
The attorneys general of Washington, Oregon and California are investigating 
whether they have grounds for an antitrust or criminal case against West 
Coast power generators and marketers. Regardless of the talks, ffitch said 
that investigation would continue. 
But Sen. Maria Cantwell (D-Edmonds) said she wasn't convinced negotiations 
for the Northwest should follow a separate track because the Californians 
were providing much of the pressure for a settlement. 
"If at some point we have to peel off, fine. But maybe we should stick with 
California," said Cantwell, who had pushed federal regulators into allowing 
the Northwest into the talks in the first place, then had to convince 
skeptical utilities in the state to send representatives. 
Cantwell said she wasn't surprised at the estimates Tacoma, Seattle and 
Snohomish submitted in their affidavits to the judge. All three utilities 
have had to raise their retail rates by up to 50 percent. 
Of the power generators and marketers Tacoma said had overcharged, many were 
actually Northwest-based, including Avista Energy of Spokane, PPL Montana, 
the Chelan County Public Utility District, Grant County Public Utility 
District, Idaho Power and Puget Sound Energy. But others included some of the 
nation's major energy suppliers, including TransAlta and Enron. 
In determining the refunds, Tacoma and the other utilities calculated that 
any electricity bought above $150 per megawatt was subject to a refund. By 
comparison, prior to the current West Coast energy crisis, utilities paid 
between $30 and $40 a megawatt. At the height of the crisis, electricity cost 
more than $300 per megawatt. 
- - - 
* Les Blumenthal covers matters of interest to Washington state and the 
Northwest in Washington, D.C. His e-mail address is 
blumenthal@mcclatchydc.com.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.