Here's another tidbit about EES deals in CA.  I think the deal w/ the Helix 
Water District would be a good case study to feature on our CA website.  I'm 
having Jeannie Mandelker write these case studies -- Peoples, Roseville, 
etc.,  Any suggestions to add?
---------------------- Forwarded by Karen Denne/Corp/Enron on 04/03/2001 
04:43 PM ---------------------------



From: The Buzz@EES on 03/22/2001 09:27 PM
To: The Buzz Distribution
cc:  
Subject: The Buzz, 3-22-01


 the Buzz  Thursday, March 22, 2001

In the Buzz this week:

EES and Saks Sign Long-Term Commodity Agreement: Enron Energy Services and 
Saks Inc., one of the nation,s premier department store retailers, have 
entered into a long-term agreement to manage the supply of electricity to all 
Saks, store locations, distribution facilities and administrative offices, as 
well as natural gas at selected locations. The companies are also working 
together to identify energy efficiency projects that will provide additional 
economic value to Saks. Click on link to view flash recognition and deal team 
members: http://inet.ees.enron.com/vision/comm/buzz/saks.html

EES Forging Ahead in San Diego: Enron Energy Services has signed a long-term 
(6 years and eight months) fixed price contract with Helix Water District, 
which serves the San Diego suburbs of La Mesa, El Cajon, and Spring Valley. 
The agreement will protect Helix from San Diego price volatility and insures 
them budget certainty. Congratulations to the deal team. Click on link to 
view the names of deal team members: 
http://inet.ees.enron.com/vision/comm/eespeople/

EES Wins California Grant to Spur Energy-Efficient Buildings: Enron Energy 
Services received a grant for $1.5 million with target savings of 7.5 
megawatts for its California customers. The California Energy Commission has 
signed 12 grants totaling almost $9.2 million to install &energy smart8 
technology in commercial and industrial buildings throughout the state. The 
agreements signed by Governor Davis will account for about 93 megawatts of 
projected savings from buildings outfitted with demand responsive building 
systems, which work by using software that automatically dim lights, reduce 
air-conditioning use and cut other electrical loads. Under the agreements, 
commercial electricity customers will agree to shave peak loads by 10 to 30 
percent. They will be paid by the California Independent System Operator (Cal 
ISO) to curtail electricity load in their buildings in real time. The demand 
responsive program is part of a bill (AB970) passed last year, designed to 
reduce at least 220 megawatts of peak load by June 1, 2001.  

EES All Employee Meeting This Coming Tuesday, March 27: On Tuesday morning, 
March 27, at 10:00 a.m. CST, David Delainey, our new CEO, will introduce 
himself and talk to us about his vision for EES. The meeting will be held at 
the Hyatt Regency Imperial Ballroom in downtown Houston.  Please don't miss 
this important meeting. On Monday, non-Houston-based employees will receive 
an e-mail informing them how to participate in the meeting either via live 
video stream or a telephone conference bridge and a slide push. 

Last Issue of George Cites Ken Lay as One of the 50 Most Powerful People in 
Politics: The last issue of George magazine, which was founded by J.F. 
Kennedy Jr., features an article about the &50 Most Powerful People in 
Politics.8 Enron CEO Ken Lay was named No. 30 in George,s list. Click on link 
to read entire article: 
http://www.george.com/xp6/George/Features/Final/Power.xml 

Enron Energy Services and Quaker Agreement Cited in Business Week: A brief 
titled &Enron: Energizing Quaker,8 appeared as follows in a recent Business 
Week: &In another coup for its rapidly growing energy outsourcing business, 
Enron nabbed Quaker Oats as its latest customer. As part of the 10-year, 
multimillion-dollar pact announced on February 21, 2001, subsidiary Enron 
Energy Services will supply electricity and natural gas and manage the energy 
infrastructure for 17 Quaker facilities in the U.S. and Canada. Enron, the 
nation's largest wholesale marketer of gas and electricity, signed $16 
billion worth of similar outsourcing deals last year.8

EES Sponsoring Portion of GGP Conference: EES recently partnered with our 
customer General Growth Properties (GGP) in support of their annual employee 
conference and trade show. GGP, one of the largest retail REITS with shopping 
malls across the country, recently signed a long-term energy outsource 
agreement with EES. In support of this recent agreement, EES sponsored a 
portion of this year's conference. The Value Enhancement Group is currently 
working on opportunities to expand this agreement, and GGP CEO John Bucksbaum 
and GGP president and COO Bob Michaels were both very pleased to see EES 
support this conference and help introduce Enron to GGP employees.

EES "Information Is Power Sweepstakes 2001" Gives away Two Palm Pilots: Over  
1200 EES employees entered the sweepstakes by updating their profile 
information on eHRonline. Congratulations to Elisa Hollis and Preston 
Ochsner, who both won a VIIx Palm Pilot. You, too, can be a winner! There are 
3 more Palm Pilots to be won this month! Simply go to 
http://eHRonline.enron.com, type in your user identification, type in your 
password, click on profile information and supply as much information as 
possible in all fields. For example, give your exact location (i.e. EB1091c); 
or Click on Skills Profile, hit the add button and you will get a drop down 
field listing numerous skill sets that you can simply click on and add to 
your profile.

Participate in the Information Is Power Sweepstakes 2001, TODAY! You will 
need your eHRonline ID and password. If you don't know your eHRonline ID or 
password, simply call the SAP hotline at 713 345 4727. Log in now: 
http://eHRonline.enron.com

Rising Power Prices May Hurt the State of Washington: Rising energy costs in 
Washington are expected to consume an additional $1.7 billion of residents 
disposable income and cut job growth by one third, according to a worst case 
scenario report prepared by the Washington state budget office. Aluminum 
manufacturers, whose facilities use massive amounts of energy, initially 
moved to the Northwest because of its cheap and plentiful power supply 
bringing additional jobs and making the region the second largest aluminum 
producer in the country. The leading trade group says the rising energy costs 
could hurt the aluminum industry in the Northwest. Electricity in Washington 
currently costs 20 percent more than it did less than a year ago and natural 
gas prices have risen by more than 60 percent.

New York Attempting To Avoid West Coast Energy Pitfalls: The New York 
Independent System Operator (NY-ISO) is warning state regulators that 
delaying approvals for new power generation may result in future power 
shortages and significant price increases. NY-ISO President and CEO William 
Museler stated, &New York is headed toward a very serious situation unless it 
acts immediately to get new supplies sited within its borders and embarks on 
substantial customer choice programs.8 Between 1995 and 2000 the demand for 
power in New York rose by 2,700 Mw while power generation only increased 
1,060 MW.

If that trend continues, the 15 percent reserve would dip to a "dangerously 
low" eight percent which could cause prices to rise as much as 14 percent by 
2005. However, if 8,600 MWs are added to New York's power supply, prices in 
New York City could decrease anywhere from 20-28 percent. New York State 
Electric & Gas Corporation spokesperson Clayton Ellis is not optimistic that 
additional generating capacity will be on the grid in the next four years. An 
application for the Athens 1,080 MW generating plant that was filed in 1998 
still has not been approved. 

Power Crisis Encourages Computer Makers to Focus on Energy Savings: With 
power prices continuing to rise, computer equipment makers are gearing their 
newest products towards energy conservation. Makers of computer mainframes, 
networking applications and PC monitors are emphasizing features that can 
achieve the same speed, or more while using less energy. IBM's newest 
mainframe, eServer Z900, can replace thousands of individual servers and 
requires only 13 kilowatts (5 percent of the energy otherwise needed). Sun 
Microsystems newest product, the Sun Ray, also slashes power consumption by 
95 percent by eliminating the need for local operating systems.  

Quaker Oats Company among the 100 Best Corporate Citizens: EES customer 
Quaker Oats was recognized this week as one of the &100 Best Corporate 
Citizens8 by Business Ethics magazine. Quaker distinguished itself through 
its charitable works in the community, while still being at the top of its 
peer group in earnings growth and total return. During 2000, $3.4 million in 
cash grants and $21.9 million in product donations were donated in support of 
education of children in low-income communities, nutrition education, and 
hunger relief. Quaker was 51 in a field of 650 corporations evaluated for 
this year,s awards.

Starwood Breaks Ground for Exciting new Project: A &monumental 
groundbreaking8 of the St. Regis Museum Tower, the latest project of Starwood 
Hotels & Resorts Worldwide (in partnership with Carpenter & Company), took 
place this past Tuesday in San Francisco. The St. Regis Museum Tower Project 
marks Starwood,s 11th St. Regis Hotel. It will include 100 residential 
condominium units, as well as an African American Cultural Center, which will 
open in 2003. This is the latest of several projects transforming San 
Francisco,s South Market district. 

Electricity Goes Nuts...Coconuts, That Is: The castaways on &Gilligan's 
Island8 would have loved this invention. Community Power Corp., based in 
Littleton, Colorado, has developed a machine that turns coconut shells into 
electricity. The company, which develops and operates energy services for 
rural communities around the world, recently shipped its first machine to a 
small village of 750 people in the Philippines. The machine is called the 
Small Modular Biopower System, and uses coconut shells to make clean 
combustible gas that is fed into a standard combustion engine where it forms 
heat, mechanical and electrical power. 

Robb Walt, owner of Community Power Corp., believes a market for their 
product is immense. Almost half of the world's population does not have 
access to electricity or sustainable cooking fuel. Instead, nearly $40 
billion is spent annually on products that many consider dangerous to the 
environment, including kerosene, batteries, candles and firewood. Community 
Power was able to turn the coconuts into clean combustible gas with the 
technical and financial support of the National Renewable Energy Laboratory 
(NREL), Shell Renewables and the California Energy Commission. In 1999, the 
company won a contract from the U.S. Department of Energy through NREL to 
make the coconut machine. Once the machine is operational, villagers should 
expect to pay a fraction of the $3 per kilowatt they currently pay using 
batteries.