Message-ID: <6924670.1075851597421.JavaMail.evans@thyme> Date: Tue, 7 Aug 2001 06:26:07 -0700 (PDT) From: m..schmidt@enron.com Subject: Enron Mentions Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Schmidt, Ann M. X-To: X-cc: X-bcc: X-Folder: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst Exporting Fresh Water; Entrepreneurs press a reluctant Canada to let them s= ell; its abundant eau to a thirsty world Time Magazine, 08/13/01 Eco-Economists Back Bush on Kyoto Pact --- Obscure Group Says Accord Contai= ns Serious Flaws; Slower Course Favored The Wall Street Journal, 08/07/01 Business Brief -- Reliant Resources Inc.: Sale Is Under Consideration For T= elecommunications Unit The Wall Street Journal, 08/07/01 After Short, Volatile Tenure, U.S. Energy Regulator Quits The New York Times, 08/07/01 American Water to Buy Azurix The Wall Street Journal, 08/07/01 ASIA-PACIFIC - Enron wins Indian appeal - NEWS DIGEST. Financial Times, 08/07/01 World Business Briefing Asia: India: Dabhol Ruling The New York Times, 08/07/01 Shell Grp Seeking Partnership With Japanese Pwr, Gas Cos Dow Jones Energy Service, 08/07/01 American Water Works absorbs Enron unit, bulks up North American operations National Post, 08/07/01 Supreme court stays MERC Dabhol proceedings The Economic Times, 08/07/01 Shocking lack of buyers The Economic Times, 08/07/01 India: HC to decide on MERC authority in DPC case Business Line, 08/0701 Enron's DPC `extremely pleased' with SC ruling The Times of India, 08/07/01 SC transfers Enron issue to Bombay HC The Times of India, 08/07/01 SC restrains Dabhol from international arbitration Business Standard, 08/07/01 American Water to buy Azurix unit The Daily Deal, 08/07/01 Reliant unit goes on the sales block Houston Chronicle, 08/07/01 FERC chief to resign within weeks Houston Chronicle, 08/07/01 Enron has buyer for its water unit Houston Chronicle, 08/07/01 GAO May Issue Report on Cheney's Refusal to Name Company Chiefs Bloomberg, 08/06/01 Global Business/Hot Commodity Exporting Fresh Water; Entrepreneurs press a reluctant Canada to let them s= ell; its abundant eau to a thirsty world Stephen Handelman/New York 08/13/2001 Time Magazine Time Inc. B14 [Not Available In All Editions] (Copyright 2001) Water has been called the oil of the 21st century. It is in ever shorter su= pply, and its price is rising in thirsty cities and farming regions from th= e Middle East to the American West. And what Kuwait is to oilbal economic s= ummit, when he noted that "water will forever be an issue in the U.S., part= icularly the Western part," and added, "I look forward to discussing this w= ith Prime Minister Jean Chretien."=20 That raised the hackles of Canadian Environment Minister David Anderson, wh= o snapped that the Bush-Chretien discussion will be "brief." The Prime Mini= ster "will tell the President that we have a policy of not exporting water,= and that, I guess, will be it." Bush's casual comment, though, lent encour= agement to a handful of Canadian entrepreneurs who for years have been prom= oting schemes to export their country's plentiful water. "It's going to hap= pen for sure," says Gerry White, president of McCurdy Enterprises, a real e= state and construction firm in Gander, Newfoundland. "Trying to stop people= from selling water is like telling Saudi Arabia not to sell oil." White is preparing to invest $24 million in a plan to ship 132 million gal.= of pristine lake water every week via specially lined oil tankers to prosp= ective buyers (whom he declines to name) in the Southern U.S. and elsewhere= . Canada's provinces prohibit bulk water shipments, on environmental ground= s. Still, White's prospects have improved with official hints that Newfound= land's ban might be dropped- -and with court challenges arguing that such b= ans are illegal under terms of the North American Free Trade Agreement. Say= s Bill Turner, who runs WaterBank.com, an enterprise based in Albuquerque, = N.M., that locates new water supplies for cities and industries around the = world: "We're just at the beginning of the boom."=20 Even so, the dreams of an H2O bonanza can be maddeningly elusive. During th= e past half-century, there have been at least nine proposals for large-scal= e water diversions from Canada and Alaska, including a $100 billion megapro= ject to pipe water from James Bay in northern Quebec to the Western U.S. an= d a bizarre scheme for tugboats to tow icebergs to Mexico. Just three month= s ago, a Greek company, Aquarius Water Transportation, was in Houston tryin= g to interest clients in pumping North American water into rafts the size o= f football fields and towing them to parched locales around the world--a me= thod Aquarius uses to haul water around the Aegean.=20 Although bottled water is already a $30 billion global industry, the techno= logical challenge of shipping bulk quantities of freshwater between distant= points and distributing it to customers has so far stumped some major woul= d-be players. For example, Azurix, a water- retailing company and a subsidi= ary of the energy multinational Enron, is struggling. "Enron thought it cou= ld use its expertise as a commodity trader to market water like energy," sa= ys Debra Coy, a water analyst with Charles Schwab. "But water is more compl= ex politically."=20 Just ask President Bush. Or the municipal leaders of Webster, N.Y. In March= the tiny village (pop. 2,500) just south of Lake Ontario placed ads in the= Wall Street Journal and the New York Times offering to sell 2 million gal.= a day of "crystal clear well water." That bit of enterprise earned an icy = reprimand from Michigan Governor John Engler, former chairman of the Counci= l of Great Lakes Governors, who reminded village officials that the eight G= reat Lakes Governors were "required to approve all diversions and exports o= f water" from the U.S. section of the Great Lakes basin. "There are places = even in New York State that are crazy for water," steamed Mayor William Ruo= ff, who added that inquiries had come from as far away as Texas and Switzer= land. "Why shouldn't we help them when we have water to spare?" Not to ment= ion village coffers to line. At current bulk- water prices of $2 per 1,000 = gal. for shipping within the U.S., Webster stood to earn as much as $2 mill= ion a year from the scheme.=20 Opponents say it's not the profit they object to but the precedent Webster'= s plan would set. The Great Lakes basin contains 18% of the world's freshwa= ter, though that doesn't necessarily mean there is water to spare. In a 199= 9 report, the U.S.-Canada International Joint Commission warned that levels= in lakes Michigan and Huron had dropped 22 in. from the previous year--"th= e most precipitous drop in recorded history," says the IJC's Frank Bevacqua= --and last year the U.S. National Oceanic and Atmospheric Administration pr= edicted that levels would fall an additional 2 ft. by 2030. A prolonged dry= spell has hurt, but water consumption is also rising.=20 Until now, the most effective limits on the water trade have been economic.= Compared with the costs of shipping freshwater by sea, "it's still cheaper= to get freshwater by other means, even by desalinization of seawater," adm= its Turner of WaterBank.com. But Turner, who is assembling a consortium of = Mexican municipalities to import water from the U.S., adds that aging infra= structure and mounting worries over contaminated groundwater are helping ma= ke larger ventures worthwhile. Schwab's Coy estimates that the world market= for private distribution of water, and the bill for wastewater treatment, = now amounts to $300 billion annually. The market has already attracted glob= al giants like Monsanto and Vivendi, and more are expected to enter. Johan = Bastin of the European Bank for Reconstruction and Development noted in 199= 9 that "water is the last infrastructure frontier for private investors."= =20 Experts say public-subsidy schemes often give water to farms and industries= for as little as $16 an acre-foot when it's worth as much as $400 to munic= ipal water systems. That encourages uneconomic uses of the precious resourc= e. Water consumption in the U.S. averages 100 gal. a day per person, nearly= three times the European average. Coy predicts that once private buyers an= d sellers are allowed to determine a market price for water, international = trade in the commodity will boom.=20 Gerry White of McCurdy Enterprises is preparing for that day and thinks it'= s not far off. He's planning to build a five-mile pipeline to carry water f= rom Gisborne Lake to Newfoundland's southern coast, then pump it into tanke= r ships. White estimates it will cost less than a penny a gallon to get wat= er from the lake to his potential buyers. Bulk water now sells for about 2[= cents] per gal. in the U.S. At 66 million gal. a shipload, twice a week, th= at's a lot of pennies.=20 For more information on the worldwide water trade, visit our website time.c= om/global COLOR ILLUSTRATION: ILLUSTRATION FOR TIME BY MARC ROSENTHAL HARVESTING H20 = Some aspiring traders want to export water in converted oil tankers that ca= n hold 66 million gal., or in rafts the size of football fields. A Greek fi= rm is already using the rafts in the Aegean COLOR ILLUSTRATION: ILLUSTRATIO= N FOR TIME BY MARC ROSENTHAL ICEBERG ROUNDUP An entrepreneur proposed towin= g small icebergs in from northern seas to parched areas such as northern Me= xico. A businessman in Canada, who already sells bottled meltwater from ice= bergs, would like to export much more of it--in bulk, on tanker ships COLOR= ILLUSTRATION: ILLUSTRATION FOR TIME BY MARC ROSENTHAL PIPE DREAMS Would-be= water sheiks would like to pipe the stuff from Canada and other wet countr= ies to the thirsty western U.S. and the Middle East. But they face environm= ental worries and competition from ever cheaper desalinization=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Eco-Economists Back Bush on Kyoto Pact --- Obscure Group Says Accord Contai= ns Serious Flaws; Slower Course Favored By Jon E. Hilsenrath Staff Reporter of The Wall Street Journal 08/07/2001 The Wall Street Journal A2 (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -- President Bush has had a hard time convincing skeptical Europea= n allies and environmentalists that he was right to withdraw from the Kyoto= Protocol, an international agreement on global warming. But one obscure gr= oup, environmental economists, says that the accord really is seriously fla= wed, lending some intellectual weight to Mr. Bush's position.=20 Environmental economists, most of whom work in academia, act like corporate= auditors sizing up a company's expenses. They try to weigh the costs and b= enefits of new environmental regulations for the global economy, using comp= lex computer models. With papers like "Requiem for Kyoto," these economists= have been picking apart the accord to reduce carbon dioxide and other so-c= alled greenhouse gases ever since it was unveiled in 1997 at a meeting of w= orld diplomats in the Japanese city of Kyoto. Many of these economists say that if Washington were to join the Kyoto Prot= ocol, it would force the U.S. to pay a sudden and hefty price to reduce gre= enhouse gases. Instead, they call for a go-slow approach to fight global wa= rming.=20 Mr. Bush declared the Kyoto agreement fatally flawed in March and pulled th= e U.S. out of it. But 178 nations decided in July to go ahead without the U= .S. in implementing the accord, which calls for industrialized countries to= cut their greenhouse-gas emissions by 5.2% from 1990 levels by 2008 to 201= 2. Those nations now must set themselves to the task of implementing the co= mplicated agreement, uncertain about what role, if any, will ultimately be = played by the U.S., the world's biggest producer of greenhouse gases.=20 "It may well be unworkable," says William Nordhaus, a Yale University profe= ssor who previously served as a member of the Council of Economic Advisors = under President Jimmy Carter.=20 Many environmental economists believe that a buildup of gases like carbon d= ioxide and methane in the atmosphere could become a serious problem in the = decades to come. But they argue that the U.S. could attack the problem by s= pending the next couple of decades developing better technologies for cutti= ng greenhouse-gas emissions.=20 Kyoto sets relatively short-term targets to reduce emissions, for 2008 to 2= 012, which could force coal-fired power plants and inefficient vehicles to = be shut down before they reach the end of their useful lives, at a potentia= lly huge cost to the economy, some economists predict.=20 "We might as well do it slowly and let the capital stock turn over during t= he next 30 years, so we're not throwing out equipment before its time," say= s Jay Shogren, a University of Wyoming economist and a former Clinton admin= istration official.=20 Richard Schmalensee, dean of the Sloan School of Management at the Massachu= setts Institute of Technology and economist in the former administration of= George H. W. Bush, predicts that the U.S. would have to close all of its c= oal-fired power plants by 2012 just to get halfway to Kyoto's targets. Alan= Manne, a retired Stanford University professor, says his model shows that = the accord, depending on how it is implemented, could amount to a $400 tax = annually on every U.S. individual.=20 Of course, plenty of environmentalists and some economists disagree with th= ese cost estimates, especially since the accord was revised in July. Negoti= ators in Bonn took two big steps to soften the blow to industry. First, the= y allowed countries to get credit for reducing greenhouse-gas emissions by = planting trees, which absorb carbon dioxide from the atmosphere. Second, th= ey allowed countries to trade credits for emissions reductions, so they cou= ld keep industrial plants running by purchasing other countries' rights to = pollute.=20 According to one MIT analysis, the cost to the U.S. of implementing Kyoto c= ould be cut to $140 per household, or less per individual, if regulators ca= n implement such a global trading system efficiently.=20 Jeff Frankel, an economics professor at Harvard University's Kennedy School= of Government, says the economic argument for a go-slow approach is flawed= . "If you wait 20 years and then try to do it, in the meantime [companies] = will build a whole lot more coal-fired plants," he says. Mr. Frankel, who w= as President Clinton's former chief economic adviser, says that it would ma= ke sense for the U.S. to get back on the Kyoto path and says that the costs= of implementing the accord aren't nearly as high as some critics have clai= med.=20 Indeed, some of President Bush's biggest corporate supporters, including ut= ility concern Enron Corp., have already signed on to efforts to push for gr= eenhouse-gas reductions.=20 Environmental economists have a second concern over Kyoto: It doesn't inclu= de developing countries like China and India, creating what economists call= "emissions leakage."=20 Robert Stavins, a Harvard University environmental economist, says much of = the increase in emissions in coming years will be from the developing world= , which is growing more quickly and uses energy less efficiently. If those = countries aren't included, polluting industries will just move offshore, he= says, rendering the cuts in the U.S. and the rest of the developed world f= ar less effective. "The impacts [of Kyoto] are trivial, but the cost was go= ing to be quite severe," says Mr. Stavins.=20 --- Costs of Kyoto A range of estimates for the costs to the U.S. if it were to implement the Kyoto Protocol. Cost per Scenario Household High-end estimate of the costs $1,000 to the U.S. of implementing Kyoto. Costs if regulators allow $600 international trading of rights to emit carbon dioxide. Costs if regulators also allow $220 trading in other pollutants, such as methane. Costs with international trading $140 of emissions permits and credits for planting trees. Source: Massachussetts Institute of Technology Joint Program on the Science and Policy of Global Change Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Business Brief -- Reliant Resources Inc.: Sale Is Under Consideration For T= elecommunications Unit 08/07/2001 The Wall Street Journal B7 (Copyright (c) 2001, Dow Jones & Company, Inc.) Reliant Resources Inc. of Houston said it is considering selling its teleco= mmunications unit, Reliant Energy Communications, which provides voice, dat= a and Internet services to business customers in Houston, Austin, San Anton= io and Dallas. The sector is suffering from rock-bottom prices and low util= ization rates due to massive overbuilding. This situation has been a drag o= n the earnings of other energy companies that branched into telecommunicati= ons services in recent years, including Dynegy Inc. and Enron Corp. Mark Sl= aughter, president of Reliant Energy Communications, said his unit has been= hindered by its limited geographic reach. As of 4 p.m. in composite tradin= g on the New York Stock Exchange, Reliant Resources was off $1.12 at $21.94= . Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 National Desk; Section A After Short, Volatile Tenure, U.S. Energy Regulator Quits By JOSEPH KAHN 08/07/2001 The New York Times Page 11, Column 5 c. 2001 New York Times Company WASHINGTON, Aug. 6 -- Curt L. Hebert Jr., the chairman of the Federal Energ= y Regulatory Commission, said today that he would resign this month after a= short, volatile tenure marked by repeated clashes with California politici= ans, Congressional Democrats and influential industry executives.=20 President Bush, who appointed Mr. Hebert in January, accepted the resignati= on, which White House officials said was voluntary. Analysts expect Mr. Bus= h to name Pat Wood III, a fellow Texan who is now a commissioner of the fed= eral agency, as its chairman. Mr. Hebert presided over a bitter debate -- inside his agency and with comp= anies and politicians nationwide -- over the role of the federal regulator = in policing newly deregulated electricity and natural gas markets.=20 A free-market Republican, Mr. Hebert for months resisted imposing price cap= s on California's electricity market. He said California should take respon= sibility for its high electricity prices because it did not build enough po= wer plants and botched electricity deregulation.=20 But he came under heavy pressure to enforce his agency's New Deal-era manda= te to guarantee ''just and reasonable'' electricity rates. And, in May, he = did an about-face and agreed to impose broad controls on electricity prices= in California and other Western states.=20 California officials say mild weather, increased supply and successful cons= ervation efforts helped them avoid what they once thought would be a summer= of frequent blackouts and soaring prices.=20 There was no sign of a rift between Mr. Hebert and the White House. His ste= adfast opposition to price controls and his eventual use of them coincided = with a similar shift in position by the Bush administration.=20 Mr. Hebert, a former Mississippi regulator and lawmaker, was also a close a= lly of Senator Trent Lott of Mississippi and other senior Republicans in Co= ngress.=20 But Vice President Dick Cheney said in an interview in April that Mr. Bush = intended to appoint Mr. Wood, whom he named an agency commissioner in the s= pring, as its chairman. Mr. Cheney did not say at the time why Mr. Hebert s= hould be replaced.=20 The Bush administration had no role in encouraging Mr. Hebert to resign, An= n Womack, a White House spokeswoman, said today. She said the president ''a= ppreciates his service as chairman.''=20 Mr. Bush and Mr. Wood worked closely together in Texas, where Mr. Wood over= saw the state's telecommunications and electricity industries.=20 Some leading energy companies, including the Enron Corporation of Houston, = also strongly supported Mr. Wood, arguing that he would move more assertive= ly than Mr. Hebert to open local electricity markets to national competitio= n. Enron is a national energy trading company and its chairman, Kenneth L. = Lay, was a leading financial backer of Mr. Bush.=20 One of Mr. Hebert's adversaries, Gov. Gray Davis of California, who tangled= with him over price caps, welcomed news of the resignation.=20 ''The governor is looking forward to the president appointing a new F.E.R.C= . commissioner who will be more responsive to the needs of California, whic= h has been overcharged by greedy out-of-state generators,'' said Hilary McL= ean, a spokeswoman for Mr. Davis.=20 Though the president can appoint a chairman from among the agency's commiss= ioners at any time, Mr. Hebert could choose to serve out his term as a comm= issioner, which ends in 2004. But he said in a statement that he would leav= e the agency. He announced no future plans. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 American Water to Buy Azurix 08/07/2001 The Wall Street Journal (Copyright (c) 2001, Dow Jones & Company, Inc.) VOORHEES, N.J. -- American Water Works Co. said it would buy Azurix North A= merica Corp., the North American water-services division of Houston's Enron= Corp.=20 The water-utility holding company said the acquisition not only broadens it= s customer base in the northwestern and southeastern U.S., but also expands= the kinds of services it can offer. American Water said Azurix North Ameri= ca had revenue last year of $157 million, has 1,050 employees and serves ab= out two million customers across North America. Last year, American Water W= orks had net income of $161.1 million, or $1.61 a share, on revenue of $1.3= 5 billion. It expects the acquisition to benefit its earnings within a year= . As of 4 p.m. in New York Stock Exchange composite trading, American Water= shares fell 39 cents to $32.41. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 ASIA-PACIFIC - Enron wins Indian appeal - NEWS DIGEST. By KHOZEM MERCHANT. 08/07/2001 Financial Times (c) 2001 Financial Times Limited . All Rights Reserved India's highest court has upheld an appeal by Enron, the US energy group, a= gainst a ruling on arbitration proceedings in the US company's payments dis= pute with the Maharashtra State Electricity Board (MSEB). The judgment mean= s the Bombay High Court must rule on whether Maharashtra's power regulator = may act in the dispute between Enron and MSEB.=20 Earlier the Bombay court had deferred the decision to the regulator, prompt= ing Enron's appeal. MSEB insists the local regulator has jurisdiction to ar= bitrate. Enron only recognises the London-based arbitration stated in the contract g= overning India's biggest foreign investment.=20 Enron says it is owed $45m by MSEB and is poised to pull out of the project= if the dispute is unresolved by November. Khozem Merchant, Bombay.=20 (c) Copyright Financial Times Ltd. All rights reserved.=20 http://www.ft.com. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Business/Financial Desk; Section W World Business Briefing Asia: India: Dabhol Ruling By Saritha Rai (NYT) 08/07/2001 The New York Times Page 1, Column 1 c. 2001 New York Times Company The Supreme Court of India ruled in favor of Dabhol Power, the Indian unit = of the Enron Corporation, in a dispute with a western Indian state utility = over $64 million in overdue utility bills. The high court ordered a lower c= ourt, the Mumbai High Court, to rule on whether a regional energy regulator= in the western state of Maharashtra or an international court in London sh= ould have jurisdiction. The state utility of Maharashtra, the sole customer= of Dabhol's power plant, wants the case heard by the Maharashtra Electrici= ty Regulatory Commission, while Dabhol wants the case heard by the internat= ional court in London, as called for in its original power agreement with M= aharashtra. The lower court had earlier refused to accept jurisdiction in t= he dispute. Saritha Rai (NYT) Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Shell Grp Seeking Partnership With Japanese Pwr, Gas Cos By Maki Aoto Of DOW JONES NEWSWIRES 08/07/2001 Dow Jones Energy Service (Copyright (c) 2001, Dow Jones & Company, Inc.) TOKYO -(Dow Jones)- Royal Dutch/Shell Group (RD) aims to enter Japan's down= stream electric power and gas businesses in partnerships with local utility= companies, to take advantage of its strong presence in the liquefied natur= al gas market, a company official said.=20 In the face of ongoing industry deregulation, Shell aims to "do something n= ew together with power and gas companies," Goro Naito, manager of Shell Gas= & Power Japan Ltd.'s business department, told Dow Jones Newswires in a re= cent interview. Japan is the world's largest LNG importer, buying about 54 million metric t= ons a year, or more than half the world demand and Naito said Shell has bee= n in the LNG business with Japan for more than 30 years. Shell handles abou= t 45% of Japan's LNG imports, with stakes in projects in Brunei, Malaysia, = Australia and Oman.=20 Japan's gradual deregulation in the long-protected gas and power sectors be= gan in 1995 and has created new business opportunities for non-utilities in= cluding foreign companies. Although the number of newcomers has been limite= d, many are preparing to exploit opportunities as Japan moves to further de= regulate the industries.=20 Under current regulations, about 28% of the country's Y15 trillion retail p= ower market is open for free competition. Independent power providers, or I= PPs, can sell electricity to existing regional power companies in the whole= sale market.=20 In the gas sector, non-gas utilities are allowed to sell retail gas to larg= e-lot users like large factories, company headquarters and big hotels.=20 However, Shell doesn't intend to compete with traditional utility companies= - which themselves are Shell's LNG customers - in the deregulated market, = Naito said.=20 Japan will review in March 2003 the impact of partial deregulation on the p= ower industry. A Trade ministry panel is discussing aspects of the gas-indu= stry deregulation Japan should aim for in the future.=20 Shell Talking With Number Of LNG Customers=20 Shell is approaching existing gas and power companies about jointly overcom= ing the challenges posed by limited liberalization, rather than aiming to t= ake a lead in pressing for further deregulation, Naito said.=20 Shell is talking with a number of utilities, including Tokyo Electric Power= Co. (J.TER or 9501), Kansai Electric Power Co. (J.KEP or 9503), Chubu Elec= tric Power Co. (J.CEP or 9502). It is also seeking partnerships with three = major gas companies, Tokyo Gas Co. (J.TYG or 9531), Osaka Gas Co. (J.OSG or= 9532) and Toho Gas Co. (J.THG or 9533).=20 "Shell possesses a wide range of business expertise, from LNG shipping, ter= minal operations to power trading...We'll do whatever, depending on their n= eeds," Naito said. He added that Shell hasn't yet decided on a specific pro= ject for a possible tie-up.=20 "Unlike companies like Enron, we can't control the timeframe if we are to t= ie with power and gas (companies)," Naito said. He said Shell will be close= ly watching future courses of Japan's deregulation.=20 In what will be a direct challenge to traditional Japanese power companies,= Enron Corp.'s (ENE) New-York based power venture, EnCom Corp., plans to bu= ild a large-scale gas-fired power project in northern Japan. Construction i= s scheduled to begin in 2004 for commercial operation in 2007 or later.=20 "We won't dare compete with power and gas companies," Naito said. He ruled = out the possibility that Shell would build a power plant in Japan on its ow= n or sell LNG directly to IPPs in Japan.=20 -By Maki Aoto, Dow Jones Newswires; 813-5255-2929; maki.aoto@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Financial Post: Canada Field Notes American Water Works absorbs Enron unit, bulks up North American operations Bloomberg News 08/07/2001 National Post National C06 (c) National Post 2001. All Rights Reserved. American Water Works Co. Inc., the largest publicly traded U.S. water utili= ty, agreed to buy Azurix North America, a unit of leading energy trader Enr= on Corp., to expand in the United States and Canada. Terms of the acquisiti= on will not be released until certain filings are made with the Securities = & Exchange Commission, said Nancy Macenko, American Water spokeswoman. The = transaction will probably be completed within 90 days, she said. The purcha= se will help American Water expand its operations and services in the south= eastern and northwestern United States and in three Canadian provinces, Ms.= Macenko said. Azurix North America provides water and waste-water services= , including operations and maintenance, engineering and other services. The= unit has annual revenue of US$157-million. American Water Works has annual= revenue of US$1.4-billion. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Supreme court stays MERC Dabhol proceedings Our Bureau 08/07/2001 The Economic Times Copyright (C) 2001 The Economic Times; Source: World Reporter (TM) THE SUPREME Court on Monday stayed the proceedings before the Maharashtra E= lectricity Regulatory Commission on the Enron dispute, asking the Mumbai Hi= gh Court to take another look on the issue.=20 The apex court asked the high court to decide whether MERC had the jurisdic= tion to adjudicate the differences between the Maharashtra State Electricit= y Board and the Enron-sponsored Dabhol Power Company. In other words, the Supreme Court has asked the high court to decide whethe= r or not Dabhol can take the dispute to the International Court of Arbitrat= ion in London.=20 Earlier, MSEB had sought that the dispute over arbitration be addressed by = MERC and the same was upheld by the Mumbai High Court, following which DPC = and later 11 of its international lenders filed a special leave petition wi= th the Supreme Court, questioning the jurisdiction of MERC and pleaded that= the sanctity of the arbitration agreement be upheld.=20 The Supreme Court on Monday directed that the proceedings before the MERC b= e stayed and no further order be passed by MERC. It has also directed that = the interim orders be continued pending a decision by the high court over j= urisdiction.=20 This means that the arbitration proceedings would be kept in abeyance till = that time. It has also directed the Mumbai High Court to hear the matter ex= peditiously.=20 When contacted, an Enron spokesman said the company was "very pleased" with= the ruling. "The favourable ruling gives further support to DPCs faith in = the Indian legal system as it is widely known that the Dabhol project has p= reviously been upheld in over 25 cases before courts in India including the= Supreme Court," a company statement said here on Monday.=20 Representatives of 11 different international lenders, including the US gov= ernments Overseas Private Investment Corp, to DPC, also argued before the c= ourt claiming that they had relied on arbitration provisions of the PPA whi= le lending over $444 million to the project for swift and impartial resolut= ion of disputes between the two estranged partners.=20 The current round of litigation started when the MERC said that DPCs disput= e with MSEB fell within its ambit and Dabhol could not proceed with the arb= itration. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Shocking lack of buyers 08/07/2001 The Economic Times Copyright (C) 2001 The Economic Times; Source: World Reporter (TM) THE EDITORIAL 'Shock therapy' (ET, August 1) suggests that Enron's boss Ken= neth Lay applied such therapy to Maharashtra's government by stating that h= is company has given up on India and is willing to pull out of Dabhol Power= Company. The million dollar question is whether Enron can really do so. The answer: = the probability of Enron being able to sellout its equity stake in DPC is n= egligible.=20 There will be no takers. Four states have expressed unwillingness to buy DP= C's high-cost power. MSEB is left as the sole 'unwilling-to-reform and bank= rupt customer'.=20 N K Suryanarayanan, Bangalore=20 THE heaviest element known was recently discovered by physicists at Yale's = Research Center. Tentatively named 'administratium', it has no protons or e= lectrons and thus an atomic number of 0.=20 But it does have one neutron, 125 assistant-neutrons, 75 vice-neutrons and = 11 assistant vice-neutrons. These add up to an atomic mass of 312; particle= s cohere in the nucleus through a force that involves a continuous exchange= of meson-like particles, 'morons'.=20 Lacking electrons, administratium is inert, but it does have a chemical sig= nature: detection is straightforward as it impedes every reaction it comes = in contact with.=20 The discoverers say a minute amount of administratium caused a reaction to = take over four days to end finally although, normally, less than a second w= ould have sufficed.=20 Nor does administratium decay over its normal life of about three years; it= undergoes a reorganisation in which assistant-neutrons, vice-neutrons and = assistant vice-neutrons exchange places and the atomic weight usually incre= ases thereafter.=20 Research also indicates that administratium occurs quite naturally in the a= tmosphere. Typically, concentration occurs at nodal points like government = agencies, large corporations, universities and hospitals.=20 Scientists caution that administratium is toxic at any level of concentrati= on and will easily destroy other, productive, reactions in its vicinity. At= tempts are on to see how to rein in administratium and prevent irreversible= damage, but till date the results are not promising.=20 Vijay Kapre, By e-mail=20 I AM writing to you regarding the feature that appeared in The Economic Tim= es on April 16, 2001. The feature addressed the subject of slashing ad-spen= ds by corporates and it has been mentioned that "New Holland Tractors has c= ut down ad spends by 40 per cent".=20 This is factually incorrect. Contrary to what has been suggested, New Holla= nd Tractors has done extremely well in the Indian tractor industry in a sho= rt span of five years, and has achieved a growth of over 125 per cent on th= e previous year's sales.=20 Given this performance in a year when industry demand declined by nearly 10= per cent, and the forthcoming launch of our new tractor in the lower HP ca= tegory, the question of cutting our ad budgets does not arise.=20 Amardeep Singh, Sr Manager, Communications, New Holland=20 We received the information from extremely reliable sources in the ad indus= try whom we have no reason to doubt. However, as New Holland maintains ther= e has been no cut in its adspend, we let matters rest there. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 India: HC to decide on MERC authority in DPC case 08/07/2001 Business Line (The Hindu) Fin. Times Info Ltd-Asia Africa Intel Wire. Business Line (The Hindu) Copyr= ight (C) 2001 Kasturi & Sons Ltd. All Rights Res'd NEW DELHI, Aug. 6. THE Supreme Court today stayed the arbitration proceedin= gs initiated by Enron and asked the Bombay High Court to decide whether the= Maharashtra Electricity Regulatory Commission (MERC) had the jurisdiction = to adjudicate the dispute with Dabhol Power Company (DPC).=20 "We are of the view that... it is appropriate that the High Court should de= cide the issue of jurisdiction...," observed a Bench comprising Mr Justice = S.P. Bharucha and Mr Justice Y.K. Sabharwal while allowing an appeal by DPC= . The appeal was directed against the June 26 order of the High Court dismiss= ing DPC's writ petition challenging the invocation of the jurisdiction of M= ERC by MSEB and an interim order by MERC made on May 29.=20 DPC has argued that MSEB did not have the right to cancel the power purchas= e contract. It said that the regulator was created in 1999, after the power= purchase contract was signed. The board had referred the dispute to the ME= RC.=20 The apex court said that MERC should not pass any order on the application = made before it by MSEB until such time the High Court hears the parties and= decides upon the issue of jurisdiction as sought by DPC in its writ petiti= on.=20 "Equally, the arbitration proceedings initiated at the instance of DPC shal= l not go on till the High Court decides the question of jurisdiction.=20 The interim order passed by MERC, however, shall continue to operate," the = judges added. Earlier, the court dismissed as withdrawn an interlocutory ap= plication by DPC, seeking permission to raise additional grounds before it = and permitted raising of the same before an appropriate forum.=20 Dabhol pleased: DPC said it was "extremely pleased" with the decision of th= e apex court.=20 "The favourable ruling gives further support to DPC's faith in the Indian l= egal system as it is widely known that the Dabhol project has previously be= en upheld in over 25 cases before courts in India including the Supreme Cou= rt," DPC said in a statement in Mumbai.=20 The Supreme Court took note of DPC's argument that the regulator's members = had previously published articles and position papers against the Dabhol pr= oject, the company claimed.=20 Our Legal Correspondent Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron's DPC `extremely pleased' with SC ruling 08/07/2001 The Times of India Copyright (C) 2001 The Times of India; Source: World Reporter (TM) MUMBAI: Enron's Dabhol Power Company (DPC) said on Monday that it was "extr= emely pleased" with the Supreme Court's ruling asking the Mumbai High Court= to decide on the state electricity regulatory commis sion's (MERC) jurisdi= ction to adjudi cate the US energy major's $ 48-million payment dispute wit= h the Maharashtra State Electricity Board (MSEB).=20 "The favourable ruling gives fur ther support to DPC's faith in the In dian= legal system as it is widely known that the Dabhol project has previously = been upheld in over 25 cases before courts in India, including the SC," DPC= said in a statement here. The SC took note of DPC's argu ment that the regulator's members had previo= usly published articles and posi tion papers against the Dabhol project, th= e company claimed.=20 However, the apex court did not rule on the question of MERC's bias. It rec= ognised the seriousness of politi cal bias and agreed that the matter could= be heard before the HC and not MERC, the company further claimed.=20 Representatives of 11 different in ternational lenders, including US gov er= nment's Overseas Private Invest ment Corp, to DPC also argued before the co= urt claiming that they had relied on arbitration provisions of the PPA whil= e lending over $ 444 million to the project for swift and impartial resolu = tion of disputes between the two es tranged partners, the statement said.= =20 "These same lenders agreed with DPC and argued that they will suffer irrepa= rable harm if the agreement to arbitrate was not enforced," DPC added. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 SC transfers Enron issue to Bombay HC 08/07/2001 The Times of India Copyright (C) 2001 The Times of India; Source: World Reporter (TM) NEW DELHI: The Supreme Court on Monday stayed the arbitration pro ceedings = initiated by multinational Enron-promoted Dabhol Power Com pany for settlem= ent of Rs 500-crore dispute with the Maharashtra State Electricity Board an= d referred the mat ter to the Bombay High Court. The DPC said it was ``extr= emely pleased'' with the apex court's order.=20 The court urged the high court to decide on the Maharashtra Electricity Reg= ulatory Commission's (MERC) jurisdiction to adjudicate the US energy major'= s $ 48 million payment dis pute with the MSEB. Reacting to the order, Dabhol Power Company director Jimmy Mogal said in a = statement: ``The favourable ruling gives further support to DPC's faith in = the Indian legal system as it is widely known that Dabhol project has previ= ously been upheld in over 25 cases before courts in India, including the SC= ''.=20 A Bench comprising Justice SP Bharucha and Justice YK Sabharwal allowed the= DPC's petition challen ging the June 26 order of the Bombay high court tha= t the MERC, being an expert body, had jurisdiction to hear the dispute.=20 However, the Bench said, ``Until such time the high court finally hears and= decides the writ petition filed by the DPC challenging the jurisdiction of= the MERC, the MERC will not pass further orders on the application that ha= s been made before it by the MSEB.''=20 The Bench also ruled that during that time, arbitration proceedings commenc= ed by the DPC will not be proceeded with. But it added till the high court = decides the writ petition, the interim orders passed by the MERC will conti= nue.=20 By its June 29 interim order, the MERC had restrained the DPC from resortin= g to international arbitration and invoking of Escrow account from the bank= s. While the DPC, a company formed by Enron, General Electric, Bechtel Ente= rprises Inc and Mahrash tra Power Development Corporation with an investmen= t of Rs 13,610 crore at present, had alleged that the MSEB was not making p= unctual and full pay ment for electricity drawn by it, the MSEB had alleged= that the DPC owed it over Rs 500 crore as rebates under the PPA.=20 The DPC and the MSEB entered into the litigation after the state board clai= med a rebate of over Rs 540 crore under PPA, alleging that there was shortf= all in delivery of energy. By its February 28, 2001, letter the MSEB claime= d rebates of Rs 401,23,74,935, and later made another claim of Rs 142,68,67= ,696.=20 The DPC disputed the interpretation of the rebate provisions under PPA as a= lso the rebate claimed by the MSEB. The matter was then referred to dis put= e resolution panel under the agree ment on December 8, 1993. The panel fail= ed to resolve the dispute, leading the DPC to give arbitration notice on Ap= ril 12. The MSEB had by then ap proached the MERC. It restrained the DPC fr= om proceeding further with the arbitration notice while holding that it had= jurisdiction to adjudicate the dis pute between parties in view of the lar= ger public interest.=20 The DPC then approached the high court, seeking a declaration that the MERC= had no jurisdiction to entertain or adjudicate any dispute or differen ces= between the parties from the PPA. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 SC restrains Dabhol from international arbitration Our Bureaux New Delhi/Mumbai 08/07/2001 Business Standard 3 Copyright (c) Business Standard The Supreme Court today ruled that the Bombay High Court is the appropriate= authority to rule on the jurisdiction of various disputes between the Enro= n-promoted Dabhol Power Company (DPC) and the Maharashtra State Electricity= Board (MSEB).=20 DPC had brought the issue before the Supreme Court in a special leave petit= ion, wherein it contested the jurisdiction of the Maharashtra Electricity R= egulatory Commission (MERC) over various disputes it had with MSEB. A Division Bench, comprising Justices S P Bharucha and Y K Sabharwal, refus= ed to allow DPC to initiate international arbitration proceedings in London= and also restrained it from operationalising the escrow account for the se= cond phase of the project.=20 Earlier, the Bombay High Court in its June 26 order had directed DPC to go = back to MERC. It had ruled that DPC's moving of the High Court was prematur= e when the commission itself was yet to decide on its jurisdiction.=20 The apex court said: "It is appropriate that the Bombay High Court should d= ecide all disputes relating to the jurisdiction of MERC as raised in the pe= tition filed by DPC." It also directed the High Court to hear the matter ex= peditiously.=20 "Until such time the High Court finally hears and decides the writ petition= filed by DPC challenging MERC jurisdiction, the commission will not pass f= urther orders on the application that has been made before it by MSEB," the= court said.=20 "Equally during that time, arbitration proceedings commenced by DPC will no= t be proceeded with," the Bench said, adding "till the High Court decides t= he writ petition, the interim orders passed by the commission will continue= ." The commission in its interim order on June 29 had ruled that DPC should= neither operationalise the escrow account nor go in for arbitration.=20 The order also said that it would decide on the issue of its jurisdiction s= oon.=20 While DPC has welcomed the Supreme Court ruling, a state government officia= l contended that this was not a defeat for MSEB. "Since, the apex court has= not allowed operationalising of the escrow account or allowing DPC to go i= n for arbitration," it should not be construed as a defeat for MSEB, the of= ficial remarked.=20 DPC in a statement stated that it is extremely pleased with the Supreme Cou= rt ruling. "The favourable ruling gives further support to DPC's historical= faith in the Indian legal system. It is widely known that the Dabhol proje= ct has previously been upheld in over 25 cases before courts in India inclu= ding the Supreme Court," the company has said.=20 The Supreme Court took note of DPC's argument that the regulator's members = had previously published articles and position papers against the Dabhol pr= oject.=20 Although the court has not ruled on the question of MERC's bias, it has rec= ognised the seriousness of potential bias, the company claimed.=20 Reacting to the order, convenor of the Enron Virodhi Andolan P Kaul said: "= The court had refused to admit the writ petition by DPC challenging the rig= ht of MERC member Jayant Deo to hear on the matter, as he had earlier publi= shed articles against the project." Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 New & NoteWorthy American Water to buy Azurix unit 08/07/2001 The Daily Deal Copyright (c) 2001 The Deal LLC Goldman Sachs & Co. - Citizen Communications Co. - Enron Corp. - Azurix Cor= p. - Azurix North America Corp. - American Water Works Co.=20 Voorhees, N.J., water firm American Water Works Co. said Monday it had agre= ed to acquire Azurix North America Corp., a unit of Azurix Corp. of Houston= , for an undisclosed amount. The transaction expands American Water strateg= ically into a full range of water and wastewater management services and ge= ographically into the southeastern and northwestern U.S. and three Canadian= provinces. The unit has annual revenue of $157 million, 1,050 employees an= d 2 million customers. American Water expects the deal to be accretive to e= arnings and cash flow in its first full year after initial transition costs= . Investor Enron Corp. acquired the 30% of Azurix Corp. in public hands Mar= ch 16 for $330 million after a string of operating disappointments. America= n Water's acquisition does not include Azurix's assets in the U.K. and Arge= ntina. American Water has been on a buying spree recently, including the wa= ter and wastewater assets of Stamford, Conn., telecom firm Citizen Communic= ations Co. for $835 million. Goldman Sachs & Co. advised American Water on = Azurix. -Claire Poole www.TheDeal.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Aug. 7, 2001, 12:43AM Houston Chronicle Reliant unit goes on the sales block=20 70 lose jobs in Internet, telecommunications unit=20 By MICHAEL DAVIS=20 Copyright 2001 Houston Chronicle=20 Reliant Resources put its Internet and telecommunications business up for s= ale Monday and laid off half of the struggling unit's employees.=20 Some 70 workers in Houston and Austin, mostly in Houston, were let go. Abou= t the same number remain working for the Internet/communications business, = said Mark Slaughter, president of Reliant Energy Communications.=20 Reliant Resources entered the telecommunications business as a competitive = local exchange carrier in late 1999. The company later added Internet servi= ces in April 2000 when it bought Insync Internet Services, an Internet serv= ice provider, for about $10 million.=20 Since that time the telecommunications business has slowed, and energy comp= anies have generally had disappointing results from their forays into such = services. Earlier this year Enron scaled back its broadband business becaus= e it was not growing as quickly as the company first expected.=20 In announcing the move, Reliant Resources said it is "exploring strategic o= ptions" for its Reliant Energy Communications, which provides business cust= omers in Houston, Austin, San Antonio and Dallas with Internet, data and vo= ice transport services.=20 These options would include partnerships with similar players and/or the sa= le of certain lines of business, the company said.=20 Reliant Resources shares closed Monday at $21.94, down $1.12 per share. The= y have fallen 27 percent since they were first offered on April 30.=20 Reliant Energy Communications just never took off.=20 "Two things happened: our revenues were not growing at the rate that we had= anticipated, and the market environment was such that we concluded our rel= atively small size put us at a disadvantage to our competitors," Slaughter = said.=20 The company said it was hindered as well by its limited geographic scope.= =20 It was not clear Monday whether Reliant Resources' Internet/communications = business was profitable, because the company does not separate the business= from its three main divisions in its quarterly and annual reports. Slaught= er would not disclose whether the business was profitable or how much the c= ompany has invested in it, other than to say it is a "start-up" business fo= r Reliant Resources.=20 It is not a substantial contributor to the company's bottom line, a company= spokeswoman said. The Houston company last month reported second quarter n= et income of $143 million, the majority of which came from the company's wh= olesale energy business including power sales and trading.=20 Slaughter said the company was in the very early stages of talking to poten= tial purchasers or partners for the business.=20 The company owns a telecommunications network and has constructed fiber opt= ic connections to several Houston-area office towers. It has more than 130 = miles of fiber connecting campuses in two major public school districts. Th= e company owns Internet data centers in Houston and Austin.=20 Reliant Resources was spun off from Reliant Energy earlier this year. It to= ok all of the unregulated businesses which Reliant Energy had been operatin= g, such as wholesale power sales and generation as well as the company's Eu= ropean power business. Reliant Energy retained the company's regulated util= ities of HL&P and Entex.=20 Aug. 6, 2001, 9:05PM Houston Chronicle FERC chief to resign within weeks=20 Ex-PUC head Wood whispered to be successor=20 By DAVID IVANOVICH=20 Copyright 2001 Houston Chronicle Washington Bureau=20 WASHINGTON -- Curt Hebert Jr., head of the Federal Energy Regulatory Commis= sion during some of the most turbulent months in the agency's history, plan= s to resign his post at the end of the month.=20 Pat Wood III, the former chairman of the Texas Public Utility Commission, i= s widely expected to be named to succeed Hebert, although no announcement h= as been made.=20 Past FERC leaders had been all but invisible to the general public.=20 Then blackouts started rolling across California this year. Both gas and el= ectricity prices in the state skyrocketed. And California Gov. Gray Davis a= nd other Democrats accused the commission, which regulates the natural gas = and electric power industries, of failing to act.=20 Hebert, 38, a Republican and close associate of Senate GOP leader Trent Lot= t of Mississippi, took the helm of the commission in the midst of the Calif= ornia crisis and quickly became a target for much of the criticism.=20 Hebert was reluctant to intervene aggressively in California's troubles. Ra= ther than imposing rigid price caps on wholesale electricity sold in the st= ate, he supported more modest "soft" price caps, which have been credited f= or helping to rein in power prices there.=20 "I came to this job a strong advocate of free markets and, if anything, my = time on the commission has only strengthened this belief," Hebert said. "We= need to get the rules right, but it is free enterprise that will put more = and more consumers in the winner's circle."=20 President Bush made Wood his point man on the California crisis. He sent Wo= od and his other newly appointed commissioner, Nora Mead Brownell of Pennsy= lvania, to discuss the crisis with California's leaders.=20 Responding to Hebert's resignation Monday, Davis spokeswoman Hilary McLean = said: "Governor Davis is looking forward to President Bush appointing a new= FERC commissioner who, like his previous appointees, will be responsive to= the people of California."=20 Hebert was not available for an interview Monday. The former Mississippi la= wmaker and state regulator was appointed to the commission in 1997 by Presi= dent Clinton. Bush elevated him to the chairman's slot in January.=20 "It has been a pleasure and honor ... to have had the opportunity to serve = at the altar of freedom for this country," Hebert wrote in a letter sent to= Bush on Friday and made public Monday.=20 Intelligent, articulate but often prickly, Hebert saw his brief tenure as c= hairman marked by persistent rumors he was to be supplanted by Wood.=20 At a commission meeting in June, Hebert stunned the audience by announcing = the five-member commission would appear quite different at the next meeting= . He then explained how the commissioners' desks would be rearranged.=20 In May, Hebert got in a public row with Houston-based Enron when he accused= Enron Chairman Ken Lay of prodding him to support retail competition in th= e electricity market in exchange for Lay's political support at the White H= ouse.=20 "I was offended," Hebert was quoted as saying in a story in the New York Ti= mes. Enron disputes Hebert's characterization of the conversation, noting t= hat Hebert -- not Lay -- initiated the calls alluded to in the story.=20 Enron officials declined to comment on Hebert's resignation Monday.=20 Wood is relocating his family from Austin to the Washington area and could = not be reached Monday for comment about speculation he'll be named successo= r.=20 Aug. 6, 2001, 8:48PM Houston Chronicle Enron has buyer for its water unit=20 American Water Works, the largest publicly traded U.S. water utility, has a= greed to buy Azurix North America, a unit of No. 1 energy trader Enron Corp= ., to expand in the United States and Canada.=20 Neither Houston-based Enron nor American Water Works officials would disclo= se details of the deal Monday.=20 John Ambler, Enron's vice president of international public relations, said= that because Azurix North America is headquartered in Hamilton, Ontario, t= he agreement would not significantly affect employment in Houston.=20 Terms of the acquisition won't be released until certain filings are made w= ith the Securities and Exchange Commission, American Water spokeswoman Nanc= y Macenko said. The transaction will probably be completed within 90 days, = she said.=20 Enron, which controls two-thirds of Azurix Corp., of which Azurix North Ame= rica is a unit, took Azurix private in March for $327.5 million. The decisi= on came when it became clear Azurix was having trouble with its strategy of= buying up water companies and winning large water projects.=20 Azurix provides water and wastewater services, including operations and mai= ntenance, engineering and other services. The North American unit has annua= l revenue of about $157 million and serves about 2 million people.=20 The transaction will help Enron, the world's largest energy trader, shed so= me of a company that did not live up to expectations. Enron bought back the= troubled affiliate for $8.38 a share, infuriating investors who paid $19 a= share when Azurix went public in June 1999.=20 American Water Works, based in Voorhees, N.J., serves about 10 million peop= le in the United States.=20 GAO May Issue Report on Cheney's Refusal to Name Company Chiefs 2001-08-06 18:11 (New York) GAO May Issue Report on Cheney's Refusal to Name Company Chiefs Washington, August 6 (Bloomberg) -- The General Accounting Office may issue a report as a prelude to a lawsuit over Vice President Dick Cheney's refusal to name the corporate executives who met with his energy task force, the head of the agency said. The report to Congress and the President would be issued if the GAO, the investigative arm of Congress, can't resolve the standoff with Cheney over releasing the names. The next step might be a suit against the Bush administration, David Walker, the agency's comptroller general, said. ``GAO firmly believes we have statutory authority to perform this review, and to obtain the information we are seeking,'' Walker said in a statement sent to the White House. The GAO warning follows refusals by Cheney to turn over task force documents. Cheney said in a letter to Congress last week that Walker's demands ``exceed his lawful authority'' and could ``unconstitutionally interfere'' with White House duties. Conoco Inc. Chief Executive Archie Dunham, Enron Corp. Chairman Kenneth Lay and Exxon Mobil Corp. CEO Lee Raymond were among the energy company officials who told Bloomberg News they met with Cheney while the energy strategy was being formulated. Leaders of environmental groups have said they were relegated to making their case to members of Cheney's staff. The GAO has demanded that Cheney disclose the identities of all the industry leaders who met with his task force. Democrats in Congress have questioned whether the administration was influenced by the energy industry when it issued a report in May calling for more oil exploration in the U.S., the construction of more pipelines and power plants, as well as conservation measures. Costs and Activities Walker said that Cheney's criticism overstated the agency's requests. He is seeking details on costs of the energy policy task force's activities, and about Cheney's role as chairman. Walker said he was unsuccessful in trying to speak with Cheney last week. ``We are not interested in obtaining his daily schedule or in reviewing communications involving the President, Vice President,'' or their top aides, Walker said. ``The information we are requesting is purely factual in nature and relates solely to the process used by the group.'' The White House has said decisions about the energy plan weren't influenced by corporate interests, and that GAO's demands are part of an effort to stall progress on the president's proposals. ``The investigation is bogus harassment by those Democrats who clearly do not or cannot engage in the issue,'' Mary Matalin, Cheney's chief political adviser, has said. Last week, the House of Representatives passed legislation that would enact parts of the Bush administration's energy strategy, including plans to let oil companies drill in a portion of Alaska's Arctic National Wildlife Refuge. The Senate plans to take up the legislation in September, though Democrats Joe Lieberman of Connecticut and John Kerry of Massachusetts have promised to kill the drilling proposal.