Enron's Azurix to rescind Buenos Aires province water/sewage contract
AFX News, 09/07/01
Prime minister says he expects quick resolution of dispute with Enron
Associated Press Newswires, 09/07/01

EOTT to Convert Enron, Koch Shares Into Common Units (Update2)
Bloomberg, 09/07/01

IDBI's Vohra on Buyers for Enron Indian Power Venture: Comment
Bloomberg, 09/07/01

USA: Enron must give documents to Calif. lawmakers-judge.
Reuters English News Service, 09/06/01

Enron Documents in California Electricity Probe Win Protection
Bloomberg, 09/06/01




Enron's Azurix to rescind Buenos Aires province water/sewage contract

09/07/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

BUENOS AIRES (AFX) - Enron Corp water and sewage unit Azurix Buenos Aires SA said it will rescind its concession to provide Buenos Aires province with water and sewage services. 
Azurix Latin America chief executive officer John Garrison met with Buenos Aires province Governor Carlos Ruckauf and provincial Public Works Minister Julian Dominguez yesterday to lay out the company's withdrawal.
Azurix sent a letter to the provincial government at the end of July claiming the concession was not economically feasible and calling on the provincial government to comply with a public works program outlined in the concession. 
Daily El Cronista reported the company paid 300 pct over the second bidder to win the license, due to "poor advice from a consulting firm." 
On not receiving a reply to its letter from the government, the company has by contract the right to unilaterally call off the concession. 
Daily El Dia reported that the company will sue the province of Buenos Aires for breach of contract for a sum of up to 400 mln usd. 
It said if the province is found at fault, it would have to repay Azurix its contract warranty, as well as an indemnity for damages and lost profits and on the unamortized value of its investment and property. 
If Azurix is found at fault, the province would still have to pay the for unamortized value of investment and property. 
aim/as For more information and to contact AFX: www.afxnews.com and www.afxpress.com

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


Prime minister says he expects quick resolution of dispute with Enron

09/07/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

NEW DELHI, India (AP) - India's prime minister said Friday there would be a quick settlement of U.S.-based Enron Corp.'s dispute with a state utility over payment of dlrs 21.7 million in electricity charges. 
Atal Bihari Vajpayee's assurance came after the Dabhol Power Corp., the Indian subsidiary of Houston-based Enron, served an arbitration notice on the Indian government for the recovery of money owed by the Maharashtra State Electricity Board.
The state utility hasn't paid for the electricity bought in December from Enron's 2,184 megawatt power plant in western India. 
"The central government, in cooperation with Maharashtra state government, financial institutions and other partners, will facilitate an early and amicable resolution of the vexatious problem surrounding the Dabhol power project," Press Trust of India news agency quoted Vajpayee as saying. 
U.S. officials have said American business leaders are wary of investing in India unless the Enron dispute is settled. 
Vajpayee had held a meeting Friday of the government's Advisory Council on Trade and Industry in New Delhi. 
The power plant stopped operations in May after the state electricity board, its sole customer, canceled a seven-year-old power purchase agreement. Enron says the board didn't have the right to cancel the agreement. 
The Vajpayee government had provided guarantees that it would meet the obligations of the state utility if it defaulted on payment. 
The state utility says the coal- and gas-fired plants could produce electricity at around 4 cents per kilowatt hour, while Enron's naphtha plant has been charging nearly 14 cents. 
Enron wants to sell its 65 percent stake in the dlrs 3 billion Dabhol Power Co. project for a minimum of dlrs 1 billion. The state utility holds a 15 percent stake, and General Electric Co. and Bechtel Corp. each have a 10 percent stake.

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


EOTT to Convert Enron, Koch Shares Into Common Units (Update2)
2001-09-07 16:59 (New York)

EOTT to Convert Enron, Koch Shares Into Common Units (Update2)

     (Adds analyst's comment in sixth paragraph and details on
debt refinancing in last paragraph.)

     Houston, Sept. 7 (Bloomberg) -- EOTT Energy Partners LP, a
crude oil-marketing and pipeline company, said it will convert
stakes in the partnership held by Enron Corp. and Koch Petroleum
Group LP into 4.3 million publicly traded units with a value of
about $86 million.

     After the conversion, EOTT's general partner, EOTT Energy
Corp., will increase annual payments to common unit holders to
$1.95 from $1.90, the company said in a statement. Two-thirds of
the holders must approve the conversion plan.

     Enron, the largest energy trader, will convert 7 million
subordinated units and all of its $9.3 million in partnership
interests into common units, EOTT spokeswoman Gina Taylor said.
Koch Petroleum, a unit of Koch Industries Inc., will convert
2 million subordinated units Enron then will own 3.4 million
common units, and Koch will own 900,000, Taylor said.

     Enron doesn't plan to sell the units ``at this time,'' Taylor
said.

     Enron and EOTT are based in Houston. Koch, the second-biggest
closely held U.S. company, is based in Wichita, Kansas.

     Enron might sell its stake in EOTT, though it's probably
waiting for a higher unit price, Dain Rauscher Wessels analyst
Mark Easterbrook said. EOTT has been selling some assets and
adding new ones to improve cash flow and increase payouts to
unitholders, he said.

     ``The timing of the . . . conversion really isn't related to
the timing of a potential sale,'' he said. ``I think it's more the
fact that they've got the partnership where they want it.''
     Units of EOTT rose $1.09 to $21.20, a 52-week high. On June
30, EOTT had 27.5 million common units.

     Enron's shares rose $1.08 to $31.57.

     EOTT plans to issue equity and long-term debt to refinance
short-term debt from a $117 million acquisition of pipelines and
storage terminals in June. It also plans to replace a $1 billion
credit facility.



IDBI's Vohra on Buyers for Enron Indian Power Venture: Comment
2001-09-07 11:22 (New York)


     Mumbai, Sept. 7 (Bloomberg) -- P.P. Vohra, the new chairman
of the Industrial Development Bank of India, speaks on finding
buyers for Enron Corp.'s $3 billion power project in the country.
He was speaking to reporters after a meeting between officials of
financial institution and the government. IDBI is one of the
lenders to the project.

     ``Financial institutions have been asked (by the government)
to talk to stakeholders, including the primary stakeholder
(Enron), and look for various acceptable buyers. There are several
of them.

     ``The (potential) buyers are all Indian. We will meet to
decide who it will be. We will meet finance ministry officials in
three weeks'' time.

     Enron wants to exit Dabhol Power Co., as it is owed $64
million by the Maharashtra State Electricity Board, its only
customer, in unpaid bills. The board in May stopped buying power
from the Enron unit, saying it's too expensive.

     Enron has offered to sell to the government its stake in the
power project, India's biggest foreign investment, at cost. Enron,
the top energy trader, said it has invested $875 million in the
project.

     IDBI and other Indian banks have most at stake. They've lent
$1.4 billion to the project without government guarantees. The
$600 million lent by ABN Amro, Bank of America Corp., and other
overseas banks is covered by guarantees.

     Ajit Kumar, secretary in the ministry of finance, said he met
lenders to try and resolve the eight-month-old dispute.

     ``We had detailed discussions on a large number of aspects,
which need further examination between various ministries and the
government of Maharashtra,'' he said.



USA: Enron must give documents to Calif. lawmakers-judge.

09/06/2001
Reuters English News Service
(C) Reuters Limited 2001.

SAN FRANCISCO, Sept 6 (Reuters) - Enron Corp. must turn over sensitive financial documents to a state Senate committee probing charges of price gouging during the state's energy crisis, a California judge ruled on Thursday. 
But Sacramento Superior Court Judge Charles Kobayashi also ruled lawmakers must provide Enron with a confidentiality agreement, saying he was not convinced the committee would respect the firm's right to maintain proprietary secrets.
"If the committee could take the requested action in the name of the public interest, then the committee ostensibly could require newspapers to surrender their confidentiality rights, attorneys to surrender their attorney-client privilege, (and) psychiatrists to surrender their privileges," the judge wrote. 
The Senate Select Committee to Investigate Market Manipulation has subpoenaed documents from a number of energy firms to probe accusations California power agencies and utilities were overcharged some $8.9 billion for wholesale electricity during the state's energy crisis which saw power prices in the state soar tenfold. 
Independent energy merchants have blamed the price spike on the state's poorly designed electricity deregulation law and a failure to build enough power plants to meet the growing needs of its 34 million residents and its industries. 
An Enron spokeswoman said on Thursday the firm has already turned over tens of thousands of documents, but wanted assurances that certain sensitive documents containing proprietary trade secrets, for example, would be protected under a confidentiality agreement. 
The firm will now work with the committee to hammer out the specifics of such an agreement, said Enron spokeswoman Karen Denne. 
"We are pleased with the judge's order in that he agreed that our constitutional right would be protected," Denne said. "The issue has always been protecting the confidential documents." 
The committee has already asked the full Senate to cite Enron as well as Reliant Energy Inc. for contempt for failing to comply with a subpoena seeking confidential documents. It would be the first such citation imposed by the state Senate since 1929, but has not yet come up for a vote. 
Atlanta-based Mirant Corp. however, avoided the contempt threat by agreeing with legislators' demands to sign confidentiality agreements, open a document depository close to Sacramento, and begin placing documents there relating to the company's recent business in California.

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


Enron Documents in California Electricity Probe Win Protection
2001-09-06 18:00 (New York)

Enron Documents in California Electricity Probe Win Protection

     Sacramento, California, Sept. 6 (Bloomberg) -- Enron Corp.,
the world's largest energy trader, received a protective order for
documents subpoenaed by a California state Senate committee.

     Sacramento Superior Court Judge Charles Kobayashi ruled that
Enron can prevent the legislative panel from sharing information
in the thousands of documents relating to energy trading in
California. Legislators subpoenaed the information earlier this
year.

     ``Once the confidential information is disclosed, no amount
of sanctions will be able to rectify the damage that might be
caused,'' Kobayashi wrote in his order.

     The Senate committee requested documents including e-mails,
phone logs, financial records and records of any Enron ``trading
strategies.'' The panel is probing whether generators manipulated
the power market. Soaring wholesale prices last year left
utilities unable to buy power, and the state began purchasing
energy on their behalf.

     Houston-based Enron had argued that the Senate sought
confidential information, including trade secrets, that could be
shared with the state's own energy-buying agency. That would
create an unfair advantage for California power buyers, Enron
said.

     Enron and members of the Senate panel will now meet to craft
the protective order, then submit it to Kobayashi for approval,
said Enron spokeswoman Karen Denne.

     The committee has subpoenaed almost 20 companies and agencies
as part of its investigation.