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Enron Mail |
'Seasoned Trader' Moving Up To Head Enron Broadband
Dow Jones Energy Service, 07/17/01 BANDWIDTH BEAT: Enron Readies For Life After Watermelon Dow Jones Energy Service, 07/17/10 USA: UPDATE 1-Waxman urges probe of White House aide Rove. Reuters English News Service, 07/17/01 US Rep: White House Obligated To Seek DOJ Review Of Rove Dow Jones International News, 07/17/01 PSC OKs permit for power plant plans in Lowndes County Associated Press Newswires, 07/17/01 USA: INTERVIEW-EnronOnline sees volume growth, CEO says. Reuters English News Service, 07/17/01 Texans Raise $500,000 for American Red Cross Relief Effort PR Newswire, 07/17/01 Terms of reference in Dabhol power inquiry may be difficult to frame THE TIMES OF INDIA, Tuesday, July 17, 2001 Maharashtra strives to avoid embarassment in Dabhol deal , Sanjay Jog THE FINANCIAL EXPRESS, Tuesday, July 17, 2001=20 'Seasoned Trader' Moving Up To Head Enron Broadband By Erwin Seba Of DOW JONES NEWSWIRES 07/17/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) HOUSTON -(Dow Jones)- An executive described as "a seasoned trader" will le= ad=20 Enron Corp.'s (ENE) telecommunications unit after its current chief executi= ve=20 takes a different position within corporation in the next two weeks.=20 James Fallon, president and chief operating officer, will lead Enron=20 Broadband Services after it becomes part of Enron's Wholesale Services Grou= p. Broadband Services Senior Vice President Kelly Kimberly told Dow Jones=20 Newswires Fallon will lead the organization after Kenneth Rice, chairman an= d=20 chief executive, moves to a corporate job at Enron.=20 Fallon was unavailable to talk to Dow Jones for this story.=20 One broker said Fallon's selection indicated Enron isn't backing away from= =20 developing the bandwidth market.=20 "Jim Fallon is a seasoned trader," the broker said. "He made a killing in t= he=20 power markets. He has a huge reputation for making money."=20 The broker speculated that Fallon may increase the number of traders Enron= =20 has in the bandwidth market. Broadband Services has announced plans to=20 reassign and possibly layoff non-trader employees in the coming two weeks.= =20 An analyst said Fallon's appointment indicates future growth for Enron's=20 bandwidth business.=20 "I think Fallon is someone who wouldn't be there if it isn't a good=20 opportunity," said Raymond Niles, director of power and merchant energy=20 research with Salomon Smith Barney.=20 In his new role, Fallon will report to Mark Frevert, chairman and chief=20 executive of Enron Wholesale Services, and Greg Whalley, president and chie= f=20 operating officer of Wholesale Services.=20 Rice previously reported to Kenneth Lay, corporate chairman and chief=20 executive.=20 Before becoming president of Broadband Services, Fallon was managing direct= or=20 of global trading and risk management for the unit.=20 From 1993 to 1999, he worked in Enron North America's wholesale energy=20 business rising from the position of associate to managing director, leadin= g=20 the power trading business.=20 Before coming to Enron, Fallon was a nuclear operations engineer for Genera= l=20 Electric, a systems engineer at W.R. Grace and a certified public accountan= t=20 for Price Waterhouse.=20 Fallon earned a bachelor's degree in marine engineering from the=20 Massachusetts Maritime Academy, a master's degree in accounting from=20 Northeastern University and a master's in business administration from=20 Columbia University.=20 Fallon takes over a unit that lost $102 million in the second quarter of th= is=20 year and is going through a restructuring to reduce losses at the same time= =20 bandwidth prices continue to plummet.=20 -By Erwin Seba, Dow Jones Newswires; 713-547-9214; erwin.seba@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.=20 BANDWIDTH BEAT: Enron Readies For Life After Watermelon By Michael Rieke 07/17/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) A Dow Jones Newswires Column=20 HOUSTON -(Dow Jones)- Listen. Do you hear that giant sucking sound? It's th= e=20 watermelon being sucked out of the bandwidth market. Two years ago this month, Jeff Skilling, now chief executive and president = of=20 Enron Corp. (ENE), told Dow Jones Newswires that the Internet high-bandwidt= h=20 area of the telecommunications market was growing faster than the wholesale= =20 energy market.=20 "Enron is positioned in the heart of that watermelon," he said.=20 Skilling's watermelon hype has been replaced by talk of burn rate. Last wee= k=20 during a conference call with analysts, he said Enron must reduce its=20 operating expenses, because losses at Enron Broadband Services exploded to= =20 $102 million in the second quarter from $8 million in the same period last= =20 year.=20 Skilling promised to cut expenses quickly. Enron is closing the broadband= =20 services office in Portland, Ore. It will redeploy some of those employees= =20 and lay off others.=20 An Enron spokeswoman said Monday that Ken Rice, chairman and chief executiv= e=20 of the broadband unit, would move to an as-yet undetermined corporate job i= n=20 two weeks.=20 In addition to trimming bandwidth losses, Enron's taking a step that could= =20 trim their visibility.=20 Enron reports results from Wholesale Services, Retail Energy Services,=20 Transportation and Distribution, and Broadband Services. No longer. As of t= he=20 third quarter of this year, Enron Broadband Services will become a business= =20 unit within Enron Wholesale Services. That move will "make it easier for=20 Enron to hide the losses," one analyst said.=20 For reporting purposes, Enron will treat broadband as it treats wholesale= =20 markets for weather, metals, lumber and steel. In second quarter results=20 released last week, Enron said it more than doubled delivered volumes in ea= ch=20 of those commodities, but it didn't give information on income from any of= =20 them.=20 If the company's broadband business had been lumped into Wholesale Services= =20 in the second quarter, the company could have said simply and accurately th= at=20 delivered volumes in broadband increased more than sevenfold during the=20 second quarter. The broadband losses of $102 million before interest and=20 taxes could have been rolled into the wholesale business income of $802=20 million, leaving still-impressive income of $700 million for the quarter.= =20 Cutbacks Par For The Course=20 Enron isn't alone in looking for ways to cut expenses in the broadband=20 sector. Telecom carriers and equipment makers have been laying off thousand= s=20 of employees this year in an effort to cut billions of dollars in losses.= =20 "It's not pretty out there," a consultant said.=20 Keith Shoemaker, a senior trader at Aquila Energy Corp. (ILA), has left the= =20 company's broadband unit for its energy business. There isn't enough real= =20 trading now in bandwidth to require the services of a senior trader, Sushil= =20 Nelson, general manager of Aquila's broadband unit, told Dow Jones Newswire= s.=20 "If you look at total sales of any network companies, the real sales - by= =20 carriers on down the chain - are a fraction of what they were a year ago,"= =20 said Harold Kamins, a managing director for Morgan Stanley Dean Witter. As = a=20 result, trading has diminished at least the same amount.=20 A liquid market for bandwidth trading is now expected to be six to 18 month= s=20 away, according to predictions by Enron's Skilling, Aquila's Nelson and=20 others.=20 There's still a future for commodity trading in telecom, because companies= =20 want to avoid big capital outlays for laying and lighting networks and want= =20 to preserve cash, said Ciara Ryan, leader of Arthur Andersen's bandwidth=20 trading team.=20 Rather than each company building a network to link all the cities in Europ= e,=20 in North America or throughout the globe, companies need to cooperate more,= =20 she said. If a company has unused capacity, it can raise revenue by selling= =20 it to a competitor. When it needs capacity not covered by its network, it c= an=20 buy it from a competitor.=20 That more efficient approach means carriers would be more interested in two= =20 requisites for trading - a more standardized contract and more widespread= =20 interconnectivity.=20 They want to preserve capital, manage cash flow and earn more from network= =20 assets, Ryan said. That means bandwidth trading will reflect less the hype= =20 drummed up by the energy players and more a solid business rationale.=20 Energy companies will remain players in telecom despite what they expect wi= ll=20 be a lull in trading. Enron will concentrate on intermediation as well as= =20 network services and the content business, Skilling said last week during t= he=20 conference call.=20 He pointed to a deal Enron has done recently to provide MSN with bandwidth = on=20 demand. MSN will be able to provision and pay for bandwidth as it's needed.= =20 More details will be provided later, he said.=20 Aquila will take a different approach. It will look for assets while waitin= g=20 for liquidity in bandwidth trading. Prices for network properties are=20 collapsing, Aquila's Nelson said, so more and more assets are becoming=20 available to companies with money.=20 "Any assets that measure up well against the forward curve, we're going to= =20 buy," he said. "You need to buy low and sell high."=20 Nelson said Aquila will look primarily at metro assets and at some longhaul= =20 assets.=20 Energy companies have an advantage during the current depression in the=20 telecom sector, he said. They're used to the boom-and-bust cycle of the=20 energy commodity market.=20 -By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@wsj.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.=20 USA: UPDATE 1-Waxman urges probe of White House aide Rove. By Thomas Ferraro 07/17/2001 Reuters English News Service (C) Reuters Limited 2001. WASHINGTON, July 17 (Reuters) - A key congressional Democrat told the White= =20 House on Tuesday it has "a legal obligation" to request a Justice Departmen= t=20 review of senior aide Karl Rove's dealings with companies that Rove held=20 substantial stock in.=20 Rejecting the White House's contention there was no conflicts of interest.= =20 Rep. Henry Waxman of California argued that the law requires the Justice=20 Department to make the call. Earlier this year, Rove had contacts with energy companies as the=20 administration drafted a national energy policy, and with Intel Corp ., as= =20 the California-based computer chip maker sought approval of a proposed merg= er=20 it later won.=20 Waxman, in a letter to White House Counsel Alberto Gonzales, wrote:=20 "Regardless of whether you believe Mr. Rove violated any laws, the White=20 House is under a legal obligation to seek an independent review of Mr. Rove= 's=20 conduct by the Public Integrity Section of the Department of Justice."=20 "A consistent theme of federal conflict of interest laws is their emphasis = on=20 an impartial review of conduct by federal employees," wrote Waxman, ranking= =20 Democrat on the House Government Reform Committee.=20 White House spokesman Anne Womack replied in a statement, "We are confident= =20 that Karl Rove has followed all ethical guidelines and acted appropriately = in=20 his role as senior adviser to the president."=20 "The White House counsel's office stated those assertions (last month) in a= =20 response to Congressman Waxman's first request," Womack said in a statement= .=20 "Unfortunately, it appears that Congressman Waxman is continuing to put the= =20 politics of personal destruction before the business of the American people= ,"=20 she said.=20 Waxman said during the Clinton administration the White House counsel's=20 office referred to the Justice Department "matters involving conduct simila= r=20 to Mr. Rove's" and that Gonzales should now do the same.=20 Last month, shortly after Waxman first inquired about Rove's dealings, Sena= te=20 Majority Leader Tom Daschle, a South Dakota Democrat, said his chamber=20 planned to seek no examination of Rove's activities. "We're not going to=20 engage in payback," Daschle said.=20 Waxman, in his letter, complained that a June 29 correspondence he received= =20 from Gonzales about Rove's dealings "raises more questions than it answers.= "=20 ROVE'S MEETINGS=20 Waxman said he wanted to specifically know what transpired during Rove's=20 meetings in March and April with officials from Intel, General Electric and= =20 Enron , an energy company. According to a Waxman aide, Rove sold more than= =20 $250,000 in stock in the three companies in June.=20 Waxman wrote to Gonzales: "Unfortunately, your letter fails to respond to m= y=20 request for specific information about whom Mr. Rove met and talked with,= =20 what Mr. Rove said, and whether Mr. Rove participated in other meetings or= =20 discussion regarding these companies."=20 "Instead your letter states your conclusion that 'Mr. Rove ... took care to= =20 comply with applicable conflict of interest rules' that 'Mr. Rove took care= =20 to avoid any such impropriety,' and that 'Mr. Rove either had a passing,=20 inconsequential contacts or participated in broad policy discussions, neith= er=20 of which presents an ethical problem under applicable regulations," the=20 California Democrat wrote.=20 Waxman said: "I have closely reviewed the law governing conflict of interes= t,=20 investigated precedents from prior administrations and consulted with=20 experts."=20 "If the news reports of Mr. Rove's conduct are accurate, Mr. Rove discussed= =20 federal policies with senior executives of companies in which he held=20 substantial investments," Waxman wrote. "This is exactly the type of confli= ct=20 of interest that the ethics laws are designed to prevent." Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.=20 US Rep: White House Obligated To Seek DOJ Review Of Rove 07/17/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) WASHINGTON (AP)--A Democratic congressman pressed Tuesday for a Justice=20 Department investigation of Karl Rove, saying the White House has a legal= =20 obligation to find out if the president's political strategist had a confli= ct=20 of interest.=20 Rove met on energy policy and high-tech issues involving companies in which= =20 he owned stock and "under any objective interpretation...Mr. Rove's conduct= =20 would surely violate the federal conflict of interest laws," Rep. Henry=20 Waxman, D-Calif., wrote in a letter to White House Counsel Alberto Gonzales= . Waxman, the senior Democrat on the House Government Reform Committee, said = it=20 isn't possible to assess the seriousness of Rove's actions or his intent=20 "based on the little information that has been made public."=20 White House spokeswoman Anne Womack said that Rove has followed all ethical= =20 guidelines and acted appropriately.=20 "Unfortunately, it appears that Congressman Waxman is continuing to put the= =20 politics of personal destruction before the business of the American people= ,"=20 said Womack.=20 Gonzales acknowledged June 29 that Rove participated in meetings on the=20 administration's energy policy while he owned stock in energy companies suc= h=20 as Texas-based Enron Corp. (ENE). Gonzales said "general policy discussions= "=20 fall outside the scope of federal ethics rules that bar an official from=20 participating in a matter in which he has a financial interest.=20 Rove also met March 12 with the chairman of Intel Corp. (INTC) and two=20 lobbyists who spoke in favor of a proposed high-tech merger which the Bush= =20 administration approved less than two months later.=20 Gonzales said Rove was noncommittal to the Intel pitch and offered no=20 substantive response.=20 Waxman said Gonzales' explanation "raises many more questions than it=20 answers" because the White House counsel failed to specify the number of=20 Rove's meetings, when they were, what Rove said and whether he had other=20 contacts regarding policies affecting companies in which he owned stock.=20 "Regardless of whether you believe Mr. Rove's conduct violated any laws, th= e=20 White House is under a legal obligation to seek an independent review of Mr= .=20 Rove's conduct by the Public Integrity Section of the Justice Department,"= =20 Waxman wrote.=20 Waxman's letter came the same day the government revealed that White House= =20 lawyers are fighting attempts by The Associated Press to force the release = of=20 details about how and when Rove acquired stocks in Enron, Intel and 21 othe= r=20 companies, which he sold June 7 for $1.5 million.=20 In a letter to AP, the Office of Government Ethics said that "after=20 consulting with the White House Counsel's office," the government concludes= =20 that disclosing Rove's application for a tax break on the sale of his stock= s=20 would constitute "a clearly unwarranted invasion of personal privacy." Such= =20 applications list the dates stocks were purchased and the method of=20 acquisition - such as compensation for services rendered, a gift or highly= =20 profitable stock options.=20 Rove, a Texas political consultant before coming to Washington, got a=20 certificate of divestiture from the government which is enabling him to def= er=20 payment of capital-gains taxes on his stock sales.=20 Rove sold his Intel stock for $110,000 and his Enron stock for $68,000.=20 Besides energy and high-tech, Rove's stocks were in defense, financial and= =20 pharmaceutical companies.=20 Before selling his Enron stock, Rove had at least two contacts by telephone= =20 with company chairman Ken Lay.=20 In one call to Rove, Lay touted Pennsylvania utilities regulator Nora=20 Brownell for the Federal Energy Regulatory Commission before the White Hous= e=20 public announcement that Bush would nominate her for the post. The White=20 House says Bush had already decided to pick Brownell at the time of Lay's= =20 call. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.=20 PSC OKs permit for power plant plans in Lowndes County 07/17/2001 Associated Press Newswires Copyright 2001. The Associated Press. All Rights Reserved. CALEDONIA, Miss. (AP) - Mississippi utility regulators have approved plans = by=20 San Jose, Calif.-based Calpine Corp. to build a power plant in Lowndes=20 County.=20 The state Department of Environmental Quality has not yet decided to issue= =20 the required permits for the electric-generating facility. Calpine has submitted plans to build its $450 million power plant - the Lon= e=20 Oak Energy Center - and have it operating in 2003.=20 Calpine needs permits from both the PSC and DEQ to build the facility, whic= h=20 will be located near Mississippi 12 and Lone Oak Road near Caledonia.=20 The Columbus Light and Water Department and the Caledonia Natural Gas=20 District have raised concerns about the potential harm the Calpine plant=20 could have on the area's water and gas supplies.=20 While Calpine has set out plans to use Yellow Creek as its main water sourc= e,=20 underground water would be used as a backup during dry periods when the cre= ek=20 is low.=20 DEQ officials had delayed their review of Calpine's plans pending the=20 resolution of issues the company has with the U.S. Army Corps of Engineers= =20 concerning the power plant's water-intake plans.=20 Enron already operates a power plant in the Caledonia area. Cogentrix has= =20 received PSC and DEQ permits to build a larger facility nearby. If built, t= he=20 Calpine and Cogentrix power plants would be on adjoining land.=20 Cogentrix will be using wastewater piped up from the Columbus water system. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.=20 USA: INTERVIEW-EnronOnline sees volume growth, CEO says. By Gelu Sulugiuc 07/17/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, July 17 (Reuters) - As most players in a shrinking pool of online= =20 energy trading platforms struggle to stay alive, leader EnronOnline has a= =20 simple philosophy: If it ain't broke, don't fix it.=20 The Internet arm of the energy marketing and trading giant Enron Corp. ,=20 EnronOnline predicts it will increase its volume and says it can coexist wi= th=20 the IntercontinentalExchange (ICE), the chief executive of Enron Networks= =20 told Reuters on Tuesday. The innovative company is always evaluating its business environment, ready= =20 to remold itself according to market demands, but it is not pursuing merger= s=20 or aquisitions for now, according to Greg Piper.=20 "I would never say never, but we're not proactively looking at aquiring an= =20 ownership position in any other exchange platform," Piper said.=20 With an average of $3.5 billion in trades every day, EnronOnline enjoys the= =20 highest volume of all energy electronic platforms. Most energy trading=20 platforms launched last year have failed to generate profits.=20 Its closest rival is ICE, which routinely exceeds $1 billion a day. But whi= le=20 ICE is a many-to-many exchange that matches bids and offers, on EnronOnline= =20 one can only trade with Enron.=20 "It's a tool that supercharges our market-making business," Piper said.=20 Enron is the No. 1 natural gas and electricity marketer in the United State= s.=20 About 60 percent of its transactions are captured through the electronic=20 platform.=20 "As long as we show good prices to our customers, our volumes will continue= =20 to grow," Piper said.=20 The company is looking to grow online volume in products such as metals,=20 steel, weather, petrochemicals and plastics.=20 "We're trying to remain the leader in energy and help our other markets get= =20 more traction," Piper said. "There is a huge amount of growth that we haven= 't=20 even tapped into yet."=20 Piper said he is not worried about ICE's recent success. The Atlanta-based= =20 exchange recently took over London's International Petroleum Exchange and= =20 plans to transfer its open-outcry business online, significantly boosting i= ts=20 trade volumes.=20 "Maybe six to 12 months from now, the story might be a lot different," Pipe= r=20 said. "But right now, there is room for the both of us."=20 He added that Enron traders do not shy away from trading on ICE. Many of th= e=20 energy giants that founded ICE and provide most of its liquidity are also= =20 Enron's biggest clients.=20 "Enron will seek out a good deal on ICE when there is one," Piper said.=20 INNOVATION KEY TO SUCCESS=20 Recognized as one of the most innovative companies in the United States,=20 Enron is constantly evaluating its position in the market and thinking of= =20 ways to become more successful.=20 "The right thing to do in November 1999 was to launch EnronOnline," Piper= =20 said. "But we look at it every day and if it made sense to do something=20 different, you can bet that Enron would do it and we wouldn't be emotional= =20 about it."=20 One of the company's advantages is the fact that its software is a flexible= =20 application that allows EnronOnline to easily go in an out of different=20 markets and regions. It constantly adds new products to its trading arsenal= .=20 But Piper said that EnronOnline has no plans to turn itself in a many-to-ma= ny=20 exchange.=20 "We want to focus in providing our markets to others," he said. "In the nea= r=20 term, we're not changing that."=20 The company is considering licensing the application itself, but would not= =20 elaborate on who wants it and how much Enron would ask for it.=20 EnronOnline has been so successful that even its competitors take their hat= s=20 off.=20 "I've been hearing for two years now that a one-to-many exchange wouldn't= =20 work, but Enron just keeps proving people wrong," said Frank Getman, chief= =20 executive of online energy exchange HoustonStreet.=20 "If you're willing to make tight two-way markets and be the best price in t= he=20 market, then people will continue to use your site."=20 Enron's stock rose 41 cents to $49.53 a share on Tuesday in trading on the= =20 New York Stock Exchange. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.=20 Texans Raise $500,000 for American Red Cross Relief Effort 07/17/2001 PR Newswire (Copyright © 2001, PR Newswire) July 18th Event Recognizes Individual Contributors to Local Disaster Fund= =20 HOUSTON, July 17 /PRNewswire/ -- On Monday, June 11, just two days after=20 Tropical Storm Allison devastated the Houston area, a special account was= =20 opened so concerned citizens could contribute to local flood relief efforts= =20 at Chase Texas branch offices. And contribute they did. To date Texans have= =20 given nearly $500,000 to the American Red Cross-Greater Houston Area Chapte= r=20 Local Disaster Fund through those branches. These dollars have been used to= =20 operate shelters, bring meals and water to communities, and provide direct= =20 assistance to flood victims through service centers and outreach programs. This is in addition to contributions of $100,000 or more made by=20 organizations such as Enron, American General/AIG, Dynegy Inc., BP Americas= =20 Westlake, ExxonMobil, Shell Oil Company, Reliant Energy, Houston Endowment= =20 Inc., Brown Foundation, Anadarko Petroleum, Ford Motor Company, El Paso=20 Corp., JPMorgan Chase, AT&T, Belo Corp./KHOU- TV, Astros in Action=20 Foundation, Bud Adams, Anheuser-Busch Companies, Williams, Calpine Corp.,= =20 Rockwell Fund, Southwesten Bell Foundation, Chevron USA, Duke Energy, Conoc= o=20 Inc., George Foundation, Major League Baseball, The Robert & Janice McNair= =20 Foundation, NFL Charities, Houston Chronicle/Hearst, Texaco Inc., AIM=20 Foundation, Schlumberger Technology Company.=20 "The American Red Cross has witnessed first-hand the generosity of the peop= le=20 of this city and this state," said John W. McDivitt, Chief Executive Office= r=20 for the Houston chapter. "It is significant that contributions made by=20 individuals represent the single largest source of relief dollars. On behal= f=20 of the American Red Cross, its volunteers, and the people who rely on our= =20 services, we extend our thanks to the community for this support."=20 McDivitt added that the Local Disaster Fund will remain open at Chase Texas= =20 branches, serving as a fund-raising vehicle for future emergency relief=20 efforts. Checks should be written to the American Red Cross, GHAC.=20 "We know that our own corporate gift and the money collected in our Texas= =20 branches goes toward an extremely efficient relief organization," said Alan= =20 Buckwalter, Chairman and CEO of JPMorgan Chase, Texas Region. "And, we take= =20 comfort in knowing that the funds raised here will provide local benefits. = We=20 are proud to open our doors to assist the relief effort."=20 MAKE YOUR OPINION COUNT - Click Here=20 http://tbutton.prnewswire.com/prn/11690X74145113=20 /EDITORS' ADVISORY: At 10:30 a.m. on Wednesday, July 18, join McDivitt,=20 Buckwalter, relief fund contributors and beneficiaries in JP Morgan Chase's= =20 Main Lobby, 712 Main. Persons representing the thousands of contributors wi= ll=20 gather to share the importance of giving, and families who recently benefit= ed=20 from Red Cross services will express their thoughts as well./ /CONTACT: Margaret O'Brien-Molina of American Red Cross-Greater Houston Are= a=20 Chapter, +1-713-313-1657, or fax, +1-713-313-1778, or momolina@ghac.org/=20 10:56 EDT=20 Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.=20 THE TIMES OF INDIA, Tuesday, July 17, 2001 Terms of reference in Dabhol power inquiry may be difficult to frame, Seema= =20 Kamdar The decision of the Democratic Front co-ordination committee to order a=20 judicial probe has cheered many an activist and some political parties. But= =20 framing the terms of reference of the inquiry may turn out to be a tall=20 order, given the fact that the supreme court has already made its comments= =20 clear on the subject of probing the validity of the Dabhol power project.= =20 The special leave petition filed in the supreme court by the Centre of Indi= an=20 Trade Unions and activist Abhaya Mehta had raised two questions dealing wit= h=20 the validity of the project and the accountability of the state government.= =20 Only the latter part survives, with the apex court having observed that the= =20 issue of validity of the project =01&is not in the public interest now to= =20 reopen=018. On July 2, 1997, the apex court held that the issue has been de= alt=20 with on several occasions in earlier public interest litigations in lower= =20 courts. Further, it said, that considering the stage =01&at which the proje= ct=20 now is , it is not in the public interestto permit re-opening of that matte= r=20 for re-examination of the validity of the same once again.=018 Coming as it does from the highest court of the land, this perception would= =20 make it uncomfortable for the proposed judicial inquiry to cover the=20 worthiness of the project in its entirety. Analysts point out that the term= s=20 of reference for a judicial inquiry should logically be consistent with the= =20 perception of the supreme court. In any case, the inquiry may not seem as= =20 much of a positive development as it appears, they warn. They point to the= =20 delay in framing the terms of reference for the inquiry. The government has= =20 decided to draft the terms of reference =01&within a month=018. The renegot= iation=20 of the project too, entrusted to a committee headed by former Union home=20 secretary Madhav Godbole, is moving at a snail=01,s pace. =01& We hold one = meeting=20 a month,=018 says a committee member. At this rate, it might take a long ti= me=20 for the committee to come up with a viable rate chart. These facts make man= y=20 wonder whether the second phase of the project will ever be commissioned. T= he=20 1444 MW phase is the larger of the two parts of the project and is 80 per= =20 cent complete, according to Enron officials. Many feel that arbitration would be more effective and at least quicker. = =01&=20 Most companies go in for arbitration in the event of disputes. Enron should= =20 be no different. Th very fact that there is no serious effort to put the= =20 controversy to rest casts doubts on the political will of the government,= =018=20 says a senior Mantralaya official. He sees the judicial probe as a=20 half-hearted attempt to keep the project at bay. =01& The inquiry could go = on=20 for ever,=018 he says. Then, there is the question of whether its report wi= ll be=20 accepted by the state government. Excluding cases dealing with land=20 acquisition and minor disputes, the Enron project, as a private power plant= ,=20 has gone through more than 25 cases which have questioned various aspects o= f=20 the project, including the tariff, the power purchase agreement, technical= =20 clearances, the guarantee and counter-guarantee provided by the state and= =20 central governments respectively. At the moment, there are two pending cour= t=20 cases concerning the project, one in the Bombay high court and the other in= =20 the supreme court. THE FINANCIAL EXPRESS, Tuesday, July 17, 2001=20 Maharashtra strives to avoid embarassment in Dabhol deal , Sanjay Jog The Maharashtra Government, which has decided to institute a judicial probe= =20 into the Dabhol deal, is striving hard to avoid an embarrassment from its= =20 constituents in view of its affidavit before the Supreme Court way back in= =20 1997 defending the need for the Dabhol Phase-II (1,444 mw) in the State.The= =20 Government in its affidavit during the hearing on a petition by the CITU ha= d=20 said that various studies carried out by the Maharashtra State Electricity= =20 Board (MSEB) have established that even after absorbing the power generated= =20 from Dabhol Phase-II, the shortage in base load for certain periods and=20 peaking shortage will prevail in the MSEB grid. MSEB had sent confirmation = to=20 the Central Electricity Authority that conditions laid down by CEA will be= =20 fulfilled and MSEB will be able to absorb power from Dabhol Phase-II.=20 According to the State Government, MSEB has therefore little or no reasons = to=20 believe that the conditions laid down by CEA will not be met with. The=20 Government said that however, on the experience of Dabhol Phase-I, it has= =20 noted that it takes some time for actual materialisation of the demand as i= t=20 requires fresh addition of the consumers as well as laying of Infrastructur= e=20 from the MSEB side. Thus, increase in demand will be gradual and full=20 absorption to the extent of 90 per cent which is the guaranteed dispatch ma= y=20 take some time to be realised. The Government had admitted that the presumption that MSEB will suffer a lo= ss=20 of Rs 72 crore a month in case of Dabhol Phase-I power and Rs 420 crore a= =20 month after commissioning of Dabhol Phase-II seems to be founded on incorre= ct=20 premises. As per the present rates, the tariff after Dabhol Phase-II is=20 commissioned, would be around Rs 400-425 crore per month, considering=20 exchange rate of Rs 42 per dollar and fuel price of $4 per Million Metric= =20 British Thermal Unit (MMBTU).=01&MSEB is in a position to absorb the Dabhol= =20 power without any abnormal backing down and there is no likely-hood of MSEB= =01,s=20 cheaper coal based power station to be closed down as alleged by CITU,=018 = the=20 Government said. In a related development, a section of the ruling Democrat= ic=20 Front in Maharashtra is of the view that its ally, the Communist Party of= =20 India (Marxist) be convinced and their intervention should be sought for th= e=20 withdrawal of a petition by CITU in the Supreme Court. However, Sources sai= d=20 that this won=01,t be possible, as the CITU has been sticking to its guns s= ince=20 beginning, against the Dabhol project. =01(.. Clears rs.350 crore overdraft The Maharashtra government has cleared he overdraft of Rs 350 crore on Mond= ay=20 following a disbursement of Rs 750 crore from the centre. Mantralaya source= s=20 told The Financial Express that the government could clear its overdraft on= =20 the 12 working day today as it has received Rs 750 crore from the centre. T= he=20 amount of Rs 750 crore was towards devolution of taxes, timely releases,=20 small savings and plan advances. Sources said that the state had to draw an= =20 overdraft in view of drastic fall in the sales tax collection and other=20 revenues mainly due to slump in the economy. The amount of Rs 750 crore was= =20 towards devolution of taxes, timely releases, small savings and plan=20 advances. Sources said that the state had to draw an overdraft in view of= =20 drastic fall in the sales tax collection and other revenues mainly due to= =20 slump in the economy.
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