Support for key TN lawmakers

Guys, it will be very difficult to get money out of the power group - is the
expectation that I come up with the dollars - just curious. Are we not
circumventing the spirit of the political contribution rules?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 10/06/2000
08:24 AM ---------------------------

Barbara A Hueter@EES
09/29/2000 02:32 PM
To: ddelain2@enron.com
cc:
Subject: Support for key TN lawmakers

---------------------- Forwarded by Barbara A Hueter/DUB/EES on 09/29/2000
03:32 PM ---------------------------

Barbara A Hueter
09/29/2000 03:27 PM
To: Dave Delainey, John J Lavorato/Corp/Enron
cc:
Subject: Support for key TN lawmakers

---------------------- Forwarded by Barbara A Hueter/DUB/EES on 09/29/2000
03:27 PM ---------------------------

Barbara A Hueter
09/29/2000 03:24 PM
To: Dave Delaney, John Lavorado, Mitch Robinson/Corp/Enron, Ben Jacoby/HOU/ECT
cc: Richard Shapiro/HOU/EES@EES
Subject: Support for key TN lawmakers

Gentelmen,

Following is an email detailing requests for personal contributions to
legislators who have been instrumental to Enron regarding our power plants in
Tennessee. I produced this list based on recommendations from our lobbying
firm, Stokes Bartholomew, in Nashville.

In 1999, Stokes Bartholomew, working with Jordan Mintz in Enron's tax
department, convinced the state legislature to pass legislation clarifying
that Enron's power plants would be exempt from the gross receipts tax. Had
we not succeeded in the effort, we would have had to pay gross receipts taxes
of approximately $1.5 million per year.

In 2000, Tennessee is one of the only states in the union that has been
running a deficit in the general revenue fund. Rather than going home for
the summer, the legislature stayed in session and debated among themselves
and with the Governor on how to solve the revenue shortfall issue.
Eventually, they adopted unreasonably optimistic revenue projections to
produce a balanced budget (on paper). This has not solved the problem
because the state is already $100 million below revenue projections in the
first quarter of the fiscal year. The legislature will look for a long term
solution when it returns in January. Stokes Bartholomew informs me that all
sources of revenue will be considered - this means our exemption from the
gross receipts tax could possibly be repealed. At this time, no one is
singling this exemption out, but Stokes Bartholomew is cautious and is
monitoring the issue closely.

Numerous legislators supported the gross receipts legislation for Enron. If
our gross receipts tax exemption is threatened next legislative session, we
would have to return to these same legislators (if they are reelected) for
support. As long as Enron pays taxes in Tennessee, it behooves us to take an
active interest in supporting those legislators who will defend our interests
in the capitol.

Since you are the key contacts at Enron for Tennessee, I ask you to assess
this matter and decide whether ongoing legislative support is important to
Enron's interests in TN and make contributions accordingly.

I have recommended $9,500 in contributions. While this seems like a large
amount, it is miniscule in comparison to the taxes we are not paying.
Moreover, it will go a long way to helping us protect our interests against
those who would fight to have "big corporations", particularly out-of-state
corporations, get stuck with additional tax burdens to solve the state's
fiscal woes.

You are probably asking why we are not using Enron PAC funds or coroporate
funds to make these donations. Tennessee law prohibits us from using
corporate funds and limits the use of PAC funds to those PACs that do not
receive any source of support from the corporation. Because Enron Corp. pays
the expenses for the Enron PAC, we are not permitted to contribute Enron PAC
funds to candidates in Tennessee. This is one of the most onerous political
contribution laws in the country.

If you have any questions I can be reached for the next week at
614.306.4359. Or you can leave a message for me at 614.760.7472.
---------------------- Forwarded by Barbara A Hueter/DUB/EES on 09/29/2000
12:56 PM ---------------------------

Barbara A Hueter
09/14/2000 03:28 PM
To: Ben Jacoby
cc: Rick Shapiro, Janine Migden/DUB/EES@EES
Subject: Support for key TN lawmakers

Per our phone conversation, following is a list of key legislative leaders
deserving of Enron's support. This list has been developed by our
counsel/legislative agents in Nashville: Bill Bruce, Gif Thornton and Robert
Gowan.

Please feel free to call me to discuss further. You can reach me on my cell
phone this afternoon and all day tomorrow. I will be in the office on Monday.

Lieutenant Governor: Senator John Wilder (Democrat)
$2,500
Represents Brownsville in the Senate.
Sponsor of 1999 gross receipts tax exemption legislation for Brownsville.
Has a serious opponent this November.
The Senate elects the Lieutenant Governor who also serves as the head of the
Senate. It is in Enron's best interst that John Wilder win the election and
be re-elected Lieutenant Governor.

Rep. Jimmy Naifey
$1,000
Speaker of the House
Represents Brownsvile.

Senate Candidate Larry Trail (Democrat)
$2,000
John Wilder's personal mission, besides his own election, is to get Larry
elected to the Senate (it is an open seat that is being vacated by a
Democrat).
If the Democrats lose this seat there is a very good chance that Senator
Wilder will not be re-elected Lieutenant Governor because the Democrats will
have lost the majority in the Senate.

Rep. Matt Kisber (Democrat)
$1,500
Represents the Jackson area.
Very pro-business Democrat.
Is in a very tough race because the district was redrawn and it now majority
Republican.
Matt is the chair of the House Finance, Ways and Means Committee - which
hears all gross receipts tax matters.
Was very helpful to Enron on the gross receipts legislation.

Senator Jerry Cooper
$1,000
Chair of the Senate Commerce Committee
His committee hears all legislation relating to energy and power plants.

Rep. Shelby Rinehart
$500
Chair of Commerce Committe (all energy and power plant issues) and powerful
member of the House Finance and Ways and Means Committee.
He is extremely powerful. Bill, Gif and Robert have a very good relationship
and rely on him for assistance for their clients regularly.

Unless otherwise noted, checks should be make payable to "Friends of
_______________".

Please forward to Bill Bruce fo personal delivery. (or if you want to get
them to me I can pass them along)
Bill Bruce
Stokes, Bartholomew, Evans and Petree P.A.
Sun Trust Financial Center
424 Church Street, Suite 2800
Nashville, TN 37219-2386