Enron Mail

From:cbone@wyattfirm.com
To:richard.shapiro@enron.com
Subject:Fwd:
Cc:
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Date:Tue, 22 May 2001 00:29:00 -0700 (PDT)

See attached article...Linda is going to NYC on Wed. and not
available....also a little nervous....let's see her again in June...planning
on May 31 @ your office with Johnny and Ben....I would really like to talk to
someone about some real legal work for my real lawyers that day...Can you
help?
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Reply-To: <crbone@theschoolcompany.com<
From: "Charles Robert Bone" <crbone@theschoolcompany.com<
To: "Johnny H Hayes" <sidevue@bellsouth.net<
Cc: "CHARLES BONE" <cbone@wyattfirm.com<, <cbone@home.com<
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Date: Tue, 22 May 2001 05:20:13 -0500
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FYI ... CRB

Enron hires ex-TVA head Hayes, Gore friend Bone
By Andy Sher
Washington Bureau

WASHINGTON -- A potential Tennessee Valley Authority competitor has hired
former TVA director Johnny Hayes and another close Tennessee friend of Al
Gore as lobbyists.

Congressional lobbyist records show that Mr. Hayes, who was the Gore 2000
presidential campaign's fund-raising director, registered with the House
clerk on May 1 to lobby for Houston-based Enron Corp.

Nashville attorney Charles W. Bone, another longtime Gore supporter,
registered to lobby for Enron the same day.

Enron is the nation's largest trader of natural gas and electricity. It is
headed by Kenneth Lay, a major financial supporter of President George W.
Bush, who defeated Democrat Gore last year.

Mr. Hayes served on the board of TVA, a federal utility, from 1993 until
January 1999, when he went to work for the Gore campaign.

In an interview, Mr. Hayes said his activities are between himself and his
clients.

"I haven't done anything wrong, won't do anything wrong and won't do
anything to hurt TVA," he said, also noting that it has been more than a
year since he left TVA.

Former TVA directors are subject to a one-year ban against seeking to
influence TVA on any matter, according to a summary of post-employment
activity laws supplied by the agency.

"I won't have any comment," Mr. Bone said in a phone message. "I never talk
about what I'm doing for clients."

Stephen Smith, executive director of Southern Alliance for Clean Energy, a
TVA watchdog and environmentalist group, said that while he knows Mr. Hayes
is an "honorable man," there are potential problems with a former TVA
insider going to work for Enron. Mr. Hayes "knows where the skeletons are
buried," Mr. Smith said.

"It's a classic. You got somebody who's a TVA board member who leaves to go
to work for someone who for all practical purposes is a competitor. I think
everybody in the valley should be a little concerned about it. ... I just
think folks need to come out on the record and say exactly what they're
doing. What they may be doing may be completely admirable."

Enron spokesman Eric Thode said Mr. Hayes was hired to lobby on "energy
issues, TVA-related, kind of a host of issues."

"TVA is one group he might work with," Mr. Thode said. He declined to say
how much Mr. Hayes is being paid. Enron spent $800,000 last year on its own
Washington lobby organization and hired other lobbyists as well -- one group
for $415,000.

TVA spokesman Gil Francis said he spoke to Mr. Hayes last Friday.

"And what he said was he has talked to some TVA staff on some TVA matters
and that is all he said," Mr. Francis said. He said the conversations were
with TVA power division staffers in Chattanooga.

In his lobbyist registration form for Enron, Mr. Hayes said he was lobbying
on "Power Plant Development/Utility deregulation."

The Wall Street Journal reported last week that Enron was using its
Democratic contacts to "strengthen ties" to Linda Breathitt, a Kentucky
Democrat who serves on the Federal Energy Regulatory Commission.

The Journal reported that Mr. Hayes, who knew Ms. Breathitt through national
Democratic politics, invited her to a dinner at a Washington restaurant to
meet Enron's managing director for government affairs, Richard Shapiro.

Enron's Mr. Thode confirmed the account but provided little additional
information. The Journal said Enron wants FERC to restructure the electric
utility industry so that utilities such as TVA, which controls transmission
on its lines, will open their lines to everyone.

Mr. Thode said Mr. Hayes was not involved in Enron's recent settlement of a
dispute with TVA. It involved allegations that Enron had not lived up to a
contract to supply TVA fixed amounts of power during period of heavy demand.

According to Mr. Smith of the Southern Alliance for Clean Energy, TVA
received $200 million under the settlement -- an amount Mr. Thode and TVA's
Francis both refused to confirm, saying it was confidential.

Mr. Hayes also is registered to lobby for Choctaw Gas Generation, a
subsidiary of Tractebel Power Inc. of Houston, which built a lignite
coal-fired plant in Mississippi for TVA. He also is registered to lobby with
Voith Siemens Hydro Power Generation Inc., which is based in York, Pa., and
has a Chattanooga office.

In all three cases, Mr. Hayes registered under the company name of Sideview
Partners Inc.

Mr. Bone also is registered to lobby for Voith Siemens. He registered under
Wyatt, Tarrant and Combs, a Nashville law firm.

Mr. Hayes remains involved in politics. He is Democratic gubernatorial
hopeful Phil Bredesen's lead fund-raiser -- a nonpaid post.

E-mail Andy Sher at asher@timesfreepress.com