Message-ID: <541056.1075858876834.JavaMail.evans@thyme> Date: Fri, 26 Oct 2001 14:34:47 -0700 (PDT) From: peggy.mahoney@enron.com To: j..kean@enron.com Subject: Enron Corp.: Enron Unit,New England Market Downplay Report Of Default Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Mahoney, Peggy X-To: Kean, Steven J. X-cc: X-bcc: X-Folder: \SKEAN (Non-Privileged)\Kean, Steven J.\Deleted Items X-Origin: Kean-S X-FileName: SKEAN (Non-Privileged).pst Came back not sent - here it is again. Peggy ---------------------- Forwarded by Peggy Mahoney/HOU/EES on 10/26/2001 04:34 PM --------------------------- Peggy Mahoney 10/26/2001 04:34 PM To: David W Delainey/HOU/EES@EES, Dan Leff/HOU/EES@EES, Janet Dietrich/HOU/EES@EES, Jeremy Blachman/Enron@EnronXGate, Scott Gahn/HOU/EES@EES, etilney@enron.com, Richard Ring/Enron@EnronXGate, Rogers Herndon/Enron@EnronXGate, Daniel Allegretti/Enron@EnronXGate, Cheryl Lipshutz/HOU/EES@EES, Denise Furey/Enron@EnronXGate, Vicki Sharp/HOU/EES@EES, Karen Denne/Enron@EnronXGate, Steven J Kean/HOU/EES@EES, Richard Shapiro/Enron@EnronXGate, Angela Schwarz/HOU/EES@EES, Michael Mann/Enron@EnronXGate, David Cox/Enron@EnronXGate, Evan Hughes/HOU/EES@EES, Ron Bertasi/HOU/EES@EES, Alex Hidalgo/HOU/EES@EES, Dana Saucier/DUB/EES@EES, Ignacio Taveras/HOU/EES@EES cc: Subject: Enron Corp.: Enron Unit,New England Market Downplay Report Of Default FYI: follow-on wire story on EES NEPOOL issue. Great quote from secretary and general counsel from NEPOOL. Peggy ---------------------- Forwarded by Peggy Mahoney/HOU/EES on 10/26/2001 04:29 PM --------------------------- djcustomclips@djinteractive.com on 10/26/2001 05:19:23 PM Please respond to nobody@mail1.djnr.com To: 1529@WCTOPICS.djnr.com cc: Subject: Enron Corp.: Enron Unit,New England Market Downplay Report Of Default Enron Unit,New England Market Downplay Report Of Default By Kristen McNamara 10/26/2001 Dow Jones Energy Service (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Enron Corp.'s (ENE) retail sales unit defaulted on its credit requirement in New England's wholesale power market this month, but the event was neither unique nor newsworthy, the energy company and the organization that developed the market's rules said Friday. The operator of the region's wholesale power market informed Enron Energy Services last week that, for the third time in 12 months, it had traded a greater volume of electricity than allowed by the bond it had posted and was at risk for expulsion from New England's market. But it was administrative mixups, rather than financial problems, that triggered the warning, which a few other companies have also received in the past, the market's rulemaker said. "I can state with considerable confidence that there have been other participants" that have defaulted on their credit agreements, "and it's never been in the news," said David Doot, secretary and general counsel for the New England Power Pool, which developed the policies governing the region's electricity market. "My instinct is that this is blown way the hell out of proportion." News of the Enron unit's default appeared in a trade publication and a major metropolitan newspaper this week, as Enron's dealings with partnerships headed by its former chief financial officer contributed to a plunge in the company's stock and bond prices. Enron Energy Services never received word that it had defaulted on its bonding requirement twice before, because both times it corrected the problem within a day, spokeswoman Peggy Mahoney said. The letter sent by ISO New England, which operates the region's power market, to notify the Enron unit of its third violation was addressed to the wrong person, delaying the company's response, Mahoney said. "Clearly, it was an administrative error that we immediately took care of to ensure that we would never exceed the volume limit," Mahoney said. The company resolved the problem by Oct. 19, Mahoney said. ISO New England spokeswoman Ellen Foley confirmed Friday that the company had cured its default. It's rare for a company to default three times, but it has happened on occasion, Foley and Doot said. "I won't say it's commonplace, but I won't say it's unusual for a participant to find itself out of compliance," Doot said. "Those things have in fact happened from time to time." -By Kristen McNamara, Dow Jones Newswires; 201-938-2061; kristen.mcnamara@dowjones.com Folder Name: Enron Corp. Relevance Score on Scale of 100: 100 ______________________________________________________________________ To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.) ______________________________________________________________________ Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved