Energy marketers make the money, get the blame POWER CRUNCH: But probes 
likely to find it's all legal in deregulation era
The News Tribune, 02/13/2001

Enron Announces Dividends
PR Newswire, 02/13/2001

EOG Resources, Inc. Declares Increase of 14 Percent on Quarterly Dividend On 
Common Stock
PR Newswire, 02/13/2001

EOG Resources, Inc. Declares Dividends on Preferred Stock
PR Newswire, 02/13/2001

Azurix says to end dispute with Argentine province
Reuters, 02/13/2001

USA: US Stockpile awards 3,400 tonnes lead to 3 firms.
Reuters English News Service, 02/13/2001
 
Marathon Oil in race for Enron stake in oil fields 
The Financial Express, 02/13/2001

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Front Page
Energy marketers make the money, get the blame POWER CRUNCH: But probes 
likely to find it's all legal in deregulation era
Les Blumenthal
The News Tribune

02/13/2001
The News Tribune Tacoma, WA
South Sound
A1
(Copyright 2001)

WASHINGTON - Their names may not appear on your electric bill, but they are 
the largest energy marketers in the nation, and they're cashing in on the 
skyrocketing electric rates in the Northwest. 

As ratepayers throughout the West are socked with double-digit increases in 
their bills, regulators throughout the region are looking into suspicions 
that this new breed of energy companies has manipulated the overheated market 
to maximize profits. So far, there is no evidence they are doing anything 
illegal.

California Gov. Gray Davis has called them pirates and plunderers. The San 
Francisco city attorney has filed a $1 billion lawsuit against them, saying 
they are playing with "marked cards" and looking to make a "quick buck" at 
the expense of consumers. The Federal Energy Regulatory Commission is 
investigating, as are state regulators in Washington, Oregon and California. 

"Based on hints of manipulated energy supplies and allegations of price 
manipulation, I think we owe it to Washington utilities and consumers to make 
sure the soaring prices are not the result of illegal practices," Washington 
Attorney General Christine Gregoire said in announcing her office's antitrust 
division would investigate. 

The power marketers, though, say they've done nothing wrong. The real 
problem, they say, is there simply isn't enough power being generated to meet 
demand. 

The players include Enron Corp., Dynegy Inc., and Reliant Energy, all of 
Houston; Duke Energy of Charlotte, N.C.; Southern Energy of Atlanta; AES Inc. 
of Arlington, Va., and Calpine Corp. of San Jose, Calif. 

Enron's profits were up 34 percent in last year's fourth quarter. Duke's 
fourth-quarter revenues doubled; Dynegy's earnings more than doubled in the 
fourth quarter. 

"When we hear about these stunning profit increases, I think we need to 
investigate," Gregoire said. 

Corporate raider Charles Hurwitz also could profit handsomely. His Maxxam 
Inc. owns Kaiser Aluminum Corp., which has shut down its Washington mills 
and, under a special contract provision, is reselling power on the open 
market for much more than it paid the Bonneville Power Administration, the 
federal agency that sells hydropower generated at dams along the Columbia and 
Snake rivers. Hurwitz could make half a billion dollars before the contracts 
expire this fall. 

And the holding companies of two huge California utilities on the edge of 
bankruptcy have made billions of dollars off the West Coast electricity 
market through a financial juggling act. Audits by outside auditors hired by 
state regulators showed Southern California Edison and Pacific Gas & Electric 
turned over billions to their holding companies, money that could have been 
used to ease the cash crunch they now face. 

The utilities say they were engaged in accepted business practices when they 
transferred the money, which the parent companies used for such things as 
stockholder dividends and stock buybacks. 

"Is it capitalism or profiteering?" said Ed Mosey, a BPA spokesman. "The very 
complexity of these markets allows these companies to hide in the grass." 

A few years ago, the energy industry was tightly regulated and utilities and 
generators were allowed to recover their costs and make a decent return on 
their investment. 

But beginning with the deregulation of wholesale electricity markets in 1992, 
energy marketers, generators, independent power producers and others became 
major players. Regulated utilities opened computer-driven trading rooms as 
they scrambled to find the cheapest electricity available. 

Now electricity is sold on spot and longer-term markets, traded for 
electricity available in other parts of the country or even swapped for 
natural gas. 

"Power can pass through three or four hands before you even buy it," Tacoma 
Power Superintendent Steve Klein said. 

The latest jolts in the Northwest market began last summer when California 
experienced severe shortages and prices soared. 

Because the entire West Coast is connected by one power grid, the rate shocks 
were felt in the Northwest and grew even more as California's problems 
deepened and a winter drought prompted fears of a near-record low runoff in 
the Columbia and Snake rivers. 

Some called it a "perfect storm" scenario, and BPA saw the price it paid for 
power in January grow sixfold over the previous year. 

"We will buy from anyone who will sell to us at a reasonable prices, but the 
problem is finding a reasonable price," said BPA Administrator Steve Wright. 
"The marketers are recovering a substantial amount of money." 

The same companies making money in California are making money in the 
Northwest. "These are for-profit companies," said Mark Crisson, who heads 
Tacoma Power. "These folks don't answer to a (state regulatory) commission 
and they don't answer to ratepayers. They answer to their stockholders and 
I've seen no effort by them to minimize prices." 

Critics say the energy marketers have manipulated the market by shutting down 
generating facilities in California in an effort to restrict the supply and 
drive prices up. 

According to some utility executives, generating plants are usually off-line 
5 percent of the time because of unforeseen problems and that an off-line 
average of 10 percent to 15 percent would be considered high. During some 
months, certain California generating plants have been off-line 30 percent to 
50 percent of the time. 

"We are seeing abnormal rates," Crisson said. 

Asked whether he thought the companies were manipulating, or gaming, the 
market, Crisson said, "I would stop short of accusing them of that, but there 
is something funny going on." 

The California generators and marketers say the outages have been the result 
of running aging plants hard in an effort to supply power in a tight market. 

"We think these allegations are a little unfair," said Randy Wheeless, a 
spokesman for Duke Energy, which operates four power plants in California. 
Despite several investigations, Wheeless said, his and other companies have 
always been cleared. 

"We're trying to feed the market, not manipulate it," he said. "There isn't 
any one single person or company to blame. The remedy is to get more 
generation on line." 

Enron doesn't own any power plants in California but sells and trades energy 
throughout the West. Spokesman Mark Palmer agreed that the key to solving the 
current crisis is adding more generation and truly deregulating the 
California market so there is real competition. "Everyone is scrambling for 
power," he said. 
- - - 
* Staff writer Les Blumenthal covers Northwest issues in Congress. Reach him 
at 1-202-383-0008 or lblumenthal@mcclatchydc.com.


Enron Announces Dividends

02/13/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

HOUSTON, Feb. 13 /PRNewswire/ -- The Enron Corp. (NYSE: ENE) Board of 
Directors declared today a regular quarterly dividend of $0.125 per share on 
the corporation's common stock payable on March 20, 2001, to stockholders of 
record as of March 1, 2001. The indicated annual rate is $0.50 per share. The 
Board also declared a regular quarterly dividend of $3.413 on the Cumulative 
Second Preferred Convertible Stock payable April 2, 2001 to preferred 
stockholders of record as of March 16, 2001. The indicated annual rate is 
$13.652 per share. 

Enron Capital LLC, a wholly owned subsidiary of Enron Corp., declared its 
monthly dividend of $0.166667 on the Enron Capital LLC 8% Cumulative 
Guaranteed Monthly Income Preferred Shares for the month of February, payable 
Feb. 28, 2001 to stockholders of record as of Feb. 27, 2001. The annual 
dividend rate is $2.00.

Enron Capital Resources, L.P., a Delaware limited partnership in which Enron 
Corp. is the sole general partner, declared its monthly dividend of $0.1875 
on the Enron Capital Resources, L.P. 9% Cumulative Preferred Securities, 
Series A, for the month of February, payable Feb. 28, 2001 to holders of 
record as of Feb. 27, 2000. The annual dividend rate is $2.25. 

Enron is one of the world's leading electricity, natural gas and 
communications companies. The company, with revenues of $101 billion in 2000, 
markets electricity and natural gas, delivers physical commodities and 
financial and risk management services to customers around the world, and has 
developed an intelligent network platform to facilitate online business. 
Fortune magazine has named Enron "America's Most Innovative Company" for six 
consecutive years. Enron's Internet address is www.enron.com. The stock is 
traded under the ticker symbol "ENE". 

/CONTACT: Karen Denne of Enron Corp., 713-853-9757/ 16:00 EST 


EOG Resources, Inc. Declares Increase of 14 Percent on Quarterly Dividend On 
Common Stock

02/13/2001
PR Newswire 
(Copyright (c) 2001, PR Newswire) 

HOUSTON, Feb. 13 /PRNewswire/ -- The Board of Directors of EOG Resources, 
Inc. (NYSE: EOG) (EOG) has declared an increase in the regular quarterly 
dividend to $.04 per share on the common stock of the company, payable April 
30, 2001, to shareholders of record as of April 16, 2001. The indicated 
annual rate is $.16. 

"By increasing the dividend, we are signaling to shareholders that EOG 
remains aligned with their interests," said Mark Papa, EOG Chairman and Chief 
Executive Officer. "Last year we generated over $300 million of cash flow 
beyond our capital program, and at current prices, we expect to generate 
significant cash flow beyond our capital program again this year."

EOG last increased its dividend from $.12 per share to $.14 per share during 
the first quarter 2000. 

EOG Resources, Inc., formerly Enron Oil & Gas Company, is among the largest 
independent (non-integrated) oil and gas companies in the United States, with 
operations and substantial reserves in the U.S., Canada and Trinidad. EOG 
common stock is listed on the New York Stock Exchange and is traded under the 
ticker symbol, "EOG". 

This press release includes forward looking statements within the meaning of 
Section 27A of the Securities Act of 1933 and Section 21E of the Securities 
Exchange Act of 1934. Although EOG believes that its expectations are based 
on reasonable assumptions, it can give no assurance that such expectations 
will be achieved. The forward looking statements are given as of the date of 
this document only and are based on current available information and 
expectations. EOG does not undertake any obligation to update these forward 
looking statements as conditions change or other information becomes 
available. Important factors that could cause actual results to differ 
materially from those in the forward looking statements herein include, but 
are not limited to, the timing and extent of changes in reserve quantities 
and commodity prices for crude oil, natural gas and related products and 
interest rates, the extent of EOG's success in discovering, developing, 
producing and marketing reserves and in acquiring oil and gas properties, 
uncertainties and changes associated with international projects and 
operations including reserve estimates, markets, contract terms, 
construction, financing availability, operating costs, and political 
developments around the world, and conditions of the capital and equity 
markets during the periods covered by the forward looking statements.

/CONTACT: Maire A. Baldwin of EOG Resources, Inc., 713-651-6EOG, or 
713-651-6364/ 15:40 EST 


EOG Resources, Inc. Declares Dividends on Preferred Stock

02/13/2001
PR Newswire 
(Copyright (c) 2001, PR Newswire) 

HOUSTON, Feb. 13 /PRNewswire/ -- The Board of Directors of EOG Resources, 
Inc. (NYSE: EOG) (EOG) has declared a dividend of $1,710.00 per share on the 
Series D Preferred Stock of the company, payable March 15, 2001 to 
shareholders of record as of March 14, 2001. 

The Board also declared a dividend of $17.9875 per share on the Series B 
Preferred Stock of the company, payable March 15, 2001 to shareholders of 
record as of March 8, 2001.

EOG Resources, Inc., formerly Enron Oil & Gas Company, is among the largest 
independent (non-integrated) oil and gas companies in the United States, with 
operations and substantial reserves in the U.S., Canada and Trinidad. EOG 
common stock is listed on the New York Stock Exchange and is traded under the 
ticker symbol, "EOG".

/CONTACT: Maire A. Baldwin of EOG Resources, Inc., 713-651-6EOG, or 
713-651-6364/ 15:40 EST 


Azurix says to end dispute with Argentine province
BUENOS AIRES, Feb 13 (Reuters) - U.S. water company Azurix Corp. (NYSE:AZX - 
news) said Tuesday it would formally agree this week to improve its Argentine 
water services after it was accused of providing poor service to Buenos Aires 
province. 

Azurix, an affiliate of energy supplier Enron Corp. (NYSE:ENE - news) which 
said in January it would take a fourth-quarter charge of $470 million on its 
Argentine operations, had previously fended off the criticism by blaming 
Buenos Aires province's poor infrastructure. 

``This week an agreement will be signed,'' an Azurix spokesman told Reuters. 
``The cost of the projects during 2001 will be less than $30 million.'' 

The dispute climaxed in January, when Buenos Aires province said it would 
review Azurix's 30-year, $439 million water and wastewater service contract. 
It said there were widespread customer complaints, such as low water pressure 
and algae contamination in the city's reservoir. 

Azurix argued that the province did not provide the necessary infrastructure 
or allow the company to charge fair market rates for services. 

Shares of Azurix added 1 cent at $8.32 Tuesday on the New York Stock 
Exchange. 



USA: US Stockpile awards 3,400 tonnes lead to 3 firms.

02/13/2001
Reuters English News Service 
(C) Reuters Limited 2001. 

NEW YORK, Feb 13 (Reuters) - The U.S. Defense National Stockpile Center said 
Tuesday it awarded approximately 3,400 metric tonnes of lead to three firms 
in its latest solicitation of offers. 

Ney Smelting & Refining Co. Inc., Lead Products Co. Inc. and Enron Metals & 
Commodity Corp. received the material for an estimated market value of $1.6 
million.



Marathon Oil in race for Enron stake in oil fields 
The Financial Express, 02/13/2001 

Anupama Airy & Kavita Bhaskaran 

New Delhi, Feb 13: The US-based energy major, Marathon Oil and Gas Company 
has emerged as one of the strong contenders for picking up Enron's 30 per 
cent stake in the Mukta, Panna and Tapti oil and gas fields. 

Top industry sources disclosed that Marathon has also been shortlisted in the 
first round of bidding along with Reliance and ONGC for buying Enron's stake 
in these fields. 

Whereas, both Reliance and ONGC are part of the consortia already developing 
these fields, Marathon is the only company which has been shortlisted outside 
the consortia. 

"Currently, Marathon is doing the due diligence of Enron's assets following 
which it will submit the financial bids along with other shortlisted 
parties," the sources said. 

Sources informed that Marathon possesses some of the best oil and gas 
exploration technologies in the world, and, at one point of time, even ONGC 
was in talks with Marathon for acquiring its technology. 

Asked if there was any possibility of ONGC and Marathon joining hands for 
submission of financial bids, industry sources said both the companies have 
decided to bid independently. 

Moreover, for all these discovered fields, ONGC does not require any 
financial or technical support from others. Reliance, however, is not 
qualified to be the operator of oil and gas fields as it does not have 
sufficient experience in the area. 

On the other hand, Marathon possess strong technical skills in this area and, 
if selected, can easily qualify as an operator.ONGC is the biggest partner in 
the consortium in terms of its equity stake. 

It has 40 per cent with the remaining 60 per cent, shared equally between 
Reliance Industries and Enron Oil and Gas India. 

However, Enron is the operator of this $900 million joint venture between 
Reliance and ONGC. Both ONGC and Reliance have the pre-emption rights by 
virtue of being partners in the joint ventures operating these companies. 

But this does not mean that they will get it any cheaper. They will have to 
match the highest bidder, sources said. 

It may be recalled here that Enron has recently decided to sell its entire 
oil and gas assets in India. The buyer for these assets is to be selected 
through a two-stage bidding process. 

Credit Suisse First Boston has been appointed as the investment banker to 
derive current value of its stake in the joint venture. These oil and gas 
fields in Gujarat and Mumbai offshore are reportedly producing around 300 
million cubic metre of gas and 29,000 barrels of oil per day. 

Copyright , 2001 Indian Express Newspapers (Bombay) Ltd.