  An XMM-Newton observation of the bright QSO PG1211+143 in 2001 revealed a
blue-shifted absorption line spectrum indicative of a high velocity radial
outflow of highly ionised gas. Unless highly collimated, the outflow mass rate
was shown to be comparable to the accretion rate, with mechanical energy a
significant fraction of the bolometric luminosity. Analysis of the full
XMM-Newton data set now allows the wider effects of that energetic outflow to
be explored. We find that absorption and re-emission of the primary continuum
flux in the ionised outflow, together with a second, less strongly absorbed,
continuum component can explain the strong `soft excess' in PG1211+143 without
the extreme velocity `smearing' in conflict with observed absorption line
widths. Previously unpublished data from a second XMM-Newton observation of
PG1211+143 is shown to be consistent with the new spectral model, finding that
the additional continuum component dominates the spectral variability. We
speculate that this variable continuum component is powered by the high
velocity outflow.
