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Required Training

INTERVIEW TRAINING On Wednesday, 11/7/01 at 2:00 PM interview training will be held to prepare you for our Super Saturday recruiting event. The training will be held in the Mt Hood Conference Room. Since all of you are participating in the interviews, your attendance will be required at the meeting. (If you are unable to attend, please talk to either Tim or Chris) CASE STUDY IDEAS NEEDED! During the interviews, each of you will have an Interview Profile. More information about the profiles will be outlined specifically in the meeting. However, we will need your help creating a Case Study Profile. The night before the interviews, each student will be given the case study which will be discussed during the interviews. If you would like your case to be considered, please submit it to me thru email no later than Friday, November 2. All of the cases will then be reviewed by Tim & Chris and the best one will be used for the Super Saturday Event. If you have any questions, give me a call. Thanks! Julie K x7404

Team 4 Congratulatory Lunch at Rock Bottom

The stars have aligned to designate Wednesday, October 24, as the day to have our lunch. Let's meet at Rock Bottom at 11:45 (or we could get all radical and actually leave together from the floor at 11:40) for the celebration. We could probably figure out how many Kcalories we all burned by riding during September and dedicate ourselves to replacing them at a single sitting! See you there. Great work, team--we took the "total number of trips" category for the Bike Commute Challenge.

California Update 9-14-2001

For questions or comments regarding this report please contact G. Britt Whitman at ex:5-4014 or Kristin Walsh at ex:3-9510. EXECUTIVE SUMMARY ? Senate May Seal SoCal's Fate ? SoCal Edison Eyeing Bankruptcy California Senate & SoCal's Fate With the California Assembly's passage of SB 78XX last week, Senator John Burton (President Pro Tem) is positioned as perhaps the most legislatively powerful man in California. Maintaining his hard line against the Assembly's amendments to SB78XX, Burton has completely rejected SB78 XX and has instead revived a previously introduced Assembly bill (AB 67XX), which had not faced a Senate floor vote. The majority of AB 67XX's original language has been gutted by Burton and discretely replaced with the following points: ? Financing of the dedicated rate component has been modified to incorporate a smaller rate base consisting of consumers using only 70 kv or more (formerly users as low as 20 kv were included). The 70 kv value is rumored closer to 120 kv. ? The state will have a 5-year option to purchase SoCal's transmission assets at twice book value and SoCal will be allowed to transfer profits from the sale to their parent company. ? A renewables portfolio equal to 20% of total generation must be in place by 2010. ? There is an 11.6% return on generation in the bill. ? The amount authorized for SoCal's bond issuance has been lowered from $2.9B to $2.5B. ? Direct access language has been included in the bailout bill. The exact language, which was developed by Senator Bowen's office, is not yet known, however, earlier versions suggest that all parties will be forced to pay exit fees, switch providers no earlier than 2003, and there will be no cost shifting away from the DWR. (Note: Senator Burton is reportedly listening carefully to Treasurer Angelides' arguments about the revenue bonds not selling if direct access is included.) It is doubtful that Burton will insist on the loyalty of fellow Democrats and will preferably discourage the bill's support. The arrival of AB67 XX on the Senate floor may be little more than Burton's civil compliance with Gov. Davis' request. All Republicans and at least 5 Democrats are expected to vote against the bill; an additional two dissenting Democrat votes would effectively block AB67 XX. Consumer advocates that adamantly oppose this bill (because it lacks the state's ownership of hard transmission assets and burdens residential consumers with excessive rates) are "optimistic" about the bill's defeat in the Senate. Despite these circumstances, it is highly conceivable that the Senate could pass along a virtually ineffective & inadequate bailout package for the Assembly's approval. Burton is reportedly avoiding discourse with Davis over AB67 XX and as the hours pass ever closer to the midnight deadline, Burton will likely introduce the bill for floor vote and then hurriedly adjourn the Senate. If the bill passes, the Assembly will bare the difficult task of either accepting the bill as is, or reject the bill and risk SoCal's bankruptcy. We believe that if the bill makes it into the Assembly, AB67 XX will pass despite strong opposition from both the CTMA and consumer advocates. There is no current vote count available in the Assembly, but we expect the Assembly to debate the bill into the early hours of Saturday morning. Inside Edison There are still strong indications that even if a bailout plan is passed, SoCal will voluntarily file for bankruptcy or a creditor, most likely a generator, will take them into bankruptcy. SoCal remains concerned due to the number of contingent claims on their cash (by the DWR, etc.) and appear likely to try to protect these cash flows. From the generators' perspective, if a plan is passed, the bank creditors will get paid but they will not. Also, the DWR and ISO have not resolved even what amount is owed to generators for power they have provided this year, let alone when they will be paid. The total amount owed through the ISO is approximately $2B. Nonetheless, the generators remain under a federal order to provide power to the state. Once a deal is passed leaving too little money for SoCal to pay the generators, this will leave them with little means of satisfaction other than filing against SoCal. SoCal has privately indicated to Senators that if the AB 67XX fails to include any consumer using 100 kv or more as the base for the dedicated rate component, SoCal will be forced to file for bankruptcy because of their inability to effectively securitize the bailout bonds. SoCal feels that this rate base is too small and the risk of these businesses fleeing the state is too high. The CTMA also has indicated that some of its members may leave the state to avoid having to pay the extra surcharge on power. SoCal has not communicated a position on whether the $400 million trim (from the original $2.9B) puts them into bankruptcy. We estimate that an additional $400 million hit is indeed too much to bear and would prompt a voluntary bankruptcy petition.

Grant valuation of Nonfirm hydro

Jeff - Here is a first cut at valuing the Grant's non firm power from Priest Rapid and Wanapum hydro projects. We assumed a term from 1/1/02 - 10/31/05. We assumed a price curve of Mid Columbia (thus we have included no transmission costs). Enron also assumed a payment to Grant due on 1/1/02. The last important assumption is how to value any "negative firm" power (defined as a situation in which Grant's non firm power in one month is lower than the critical year monthly figure). In this situation we carried over the negative water volume to the next month and net is against positive volumes. The total value to nonfirm power using the above assumptions is approximately $68 million. If Grant is interested in a $15 million lump sum then Enron would assume a 22% stake in the non firm hydro stream. Briefly I would like to explain our methodology for valuing the hydro. We took the hydro raw data from Grant on the two projects and also used the critical year assumption. In addition we created a curve to reflect the impact of water to power prices (ie the greater the water volume the lower the power prices). We then ran a number of simulations to create a distribution that describes the range of output values. Jeff I look forward to speaking with you about this in more detail. You can reach me at 503-464-3810. As I mentioned I will be out this week from Tuesday to Friday. Stewart Rosman

Lousiana Pacific Deal # 421598.1

All- Per an inquiry from Lousiana Pacific regarding deal # 421598.1 (LT NW): Structure: 7 MW around the clock, 100% load factor. Buy back at basis or remarket at a 70% / 30% split. February 23, 2001: Load was taken from 7 MW to 4 MW for HE 11 - 24. Deal # 421598.1 was reduced from a 7 MW to a 4 MW (D. Scholtes). We remarketed the 3 MW's real time to WWP deal # 530654.1 (source PGE). We did not enter a deal to keep LP whole. February 24, 2001: Load was taken from 7 MW to 4 MW for HE 1 - 24. Deal # 421598.1 was reduced from a 7 MW to a 4 MW (D. Scholtes). We remarketed the 3 MW's real time to Puget for HE 1-9 deal # 530689.1 and to WWP for HE 10-24 deal # 530716.1. We did not enter a deal to keep LP whole. August 29, 2001: Virginia set deal # 421598.1 back to 7 MW, keeping sale to LP whole, and entered deal # 754187.1 to buy back 3 MW of LP energy at 70 % of the price sold real time. (70% / 30% split according to agreement with LP). VT routed original purchase from PGE-deal 529161.1 (ST NW) back to Lousiana Pacific-deal # 421598.1 (LT NW) and routed the "buy-back" deal # 754187.1 (ST W HOURLY) to WWP and to Puget (ST W HOURLY). I think that this will properly take care of the dispute and make Lousiana Pacific happy. Please let me know if you have any questions or comments. Thanks, Virginia

The Prometheus File - Energy Technology Weekly 1/18/02

We are currently upgrading out networks at this time. We apologize for any errors, delays, or inconveniences that may result from network problems. Thank You In this issue: Feature: Reconciling the Telecom Money Pit. News Highlights: Calpine cuts FY02 estimates and places US$2 billion worth of projects on hold. All the news, commentary, and earnings reports, plus price performance and valuation charts. Best regards,

Reed Wasden Research - Daily Update 1/10/02

Thursday's Contents: 1.10.02 Daily News Update and Stock Performance As stated in our November 16 issue of The Prometheus File, Reed Wasden Research will be sending our daily publication and morning notes for a 45-day trial period. Included is our daily update and notes on companies that RWR follows. For those who do not wish to receive the daily updates, please reply with WEEKLY ONLY as the subject. Please allow at least one day for your request to be processed. Best regards,

Reed Wasden Research - Daily Update 1/07/02

Monday's Contents: 1.07.02 Daily News Update and Stock Performance As stated in our November 16 issue of The Prometheus File, Reed Wasden Research will be sending our daily publication and morning notes for a 45-day trial period. Included is our daily update and notes on companies that RWR follows. For those who do not wish to receive the daily updates, please reply with WEEKLY ONLY as the subject. Please allow at least one day for your request to be processed. Best regards,

Reed Wasden Research - Daily Update 1/04/02

Friday's Contents: 1.04.02 Daily News Update and Stock Performance IXYS Achieves High Power through Cash Acquisition As stated in our November 16 issue of The Prometheus File, Reed Wasden Research will be sending our daily publication and morning notes for a 45-day trial period. Included is our daily update and notes on companies that RWR follows. For those who do not wish to receive the daily updates, please reply with WEEKLY ONLY as the subject. Please allow at least one day for your request to be processed. Best regards,

Your mailbox is over its size limit

Your mailbox has exceeded one or more size limits set by your administrator. Your mailbox size is 120879 KB. Mailbox size limits: You will receive a warning when your mailbox reaches 115000 KB.You may not be able to send or receive new mail until you reduce your mailbox size. To make more space available, delete any items that you are no longer using or move them to your personal folder file (.pst). Items in all of your mailbox folders including the Deleted Items and Sent Items folders count against your size limit. You must empty the Deleted Items folder after deleting items or the space will not be freed. See client Help for more information.

New Pub Code

Just a reminder - We have added a new pub code to EnPower. The code is for the Dow Jones COB Sunday Index. Please advise that the Portland West Desk has one deal in the system at this time against that index, and more may follow. Thanks for your help with entering these prices. Kate

New swap deal for EPMI LTSW

I've added the third leg to deal 566375 and changed comments in each leg to reflect that. We had a bit of confusion about who was actually adding the new pub code, but it's in the system now and the deal is ready to be confirmed. Just a note - I previously had all the Sunday and Holiday hours in the off-peak leg of this deal (so Risk could calc the value correctly), and now I've deleted those strips to account for leg 3 which contains only Sunday and Holiday hours. Please let me know if anything looks different, other than that, on your end. Thanks,

EPMI-EES Discrepancies (3/29)

Okay! Real Time has finally drilled down on the problem we were having with deal 564094 (STCA buys from EES/HE 9-22 @ $160) and corrected the Real Time sheet to reflect our price. I apologize for the delay in finding the source of the problem, and as it turns out it was just a matter of someone putting the wrong price in the sheet they sent you. Very frustrating, I know, but I've attached the correct sheet nonetheless. Please call or e-mail with questions, and I'm sure I'll hear from you soon! Thanks,

Time Management

For some reason, the time management function on eHRonline won't allow me to log in. It says the user is locked and to please notify the person responsible. I'm using the user ID and password you gave me, so I don't know what I'm doing wrong. This is not an urgent matter - just respond whenever you have time.

Interdesk swaps - 4/23 and 4/24

Following are the deal numbers for interdesk swaps between STCA and STWBom for Monday and Tuesday. I'm sorry again for forgetting on Friday. 587941 STCA sells 25 to STWBom 4/23/01 $231.23 PGE3 589743 STCA sells 25 to STWBom 4/24/01 $266.00 NP-15 Let me know if you have questions on these. I presume Phil talked to you about why he put the deal in at PGE3 for Monday and NP15 for Tuesday. Apparently it doesn't have any relevance until FSP is up and running, but it may affect you guys differently. Just let us know if it's a problem. Thanks,

Dow Jones Mid-Columbia Index

I just entered an index deal for one of our traders, and came across something I hadn't noticed before. In EnPower, we have several choices for the Dow Jones Mid-Columbia index, but none called specifically "Mid-C Firm Peak." We have non-firm peak, and something called "Mid-Columbia Index." I'm just wondering how to specify that I want the deal to settle against the Dow Jones Mid-C PEAK index. In this case, because I was entering a round-the-clock (all hours, all days) deal, I had to enter three different deals to specify the three different indices - Mid-C Peak, Mid-C Off Peak, and Mid-C Sundays and Holidays. But I don't see a Mid-C Peak choice, so I entered the first as Mid-C Index. Deal numbers are: 597244 - Peak 597245 - Off Peak 597246 - Sundays/Holidays I just wanted to ask because when you guys plug the index prices in here I want to make sure that "Mid-C Index" gets the peak price. Could you let me know if it doesn't? And if that's the case, then I'll need to have another pub code set up for peak price. Thanks for your help on this. Please let me know if you have any questions. Thanks,

EOL Summary - Still Under Construction

I'm continuing to work with IT in Houston in an attempt to restore the EOL Report to its former glory. They are making several changes to the report which seem to result exponentially in glitches. As of right now the application will not create any kind of file with any kind of data; hence the absence of any kind of report. I will keep you informed of our progress. Thanks for your patience,

Deal Blotter question

I've run across what seems to be a glitch in Deal Blotter; although it may be caused by the default settings in a specific trader's blotter. A few times over the last several weeks, our traders at the Short Term Southwest desk have entered off peak deals by choosing the "off" selection under the "Hours" heading. But the mask doesn't change to include Sundays and Holidays, and the traders then enter another deal to compensate for this. What we've found then is that the original deal did in fact include a strip for Sundays and Holidays, round-the-clock hours. My question is - when you enter an off-peak deal in Deal Blotter, does it automatically read that as Mon. through Sat. off-peak hours AND Sundays and Holidays round-the-clock? Even though the mask does not change to show Sundays and Holidays? I'm just wondering if there is an easier way to assure that we've entered off-peak deals correctly other than double-checking them in Deal Entry. Please call or e-mail when you get a chance. Again, this could be just a matter of incorrect settings in someone's blotter; but I'd like to make sure either way. Thanks for your time,

Los Angeles Department of Water and Power IS NOT LADWPPX

Just FYI - I believe you entered these deals on Jan. 16. What were you thinking? How long have you worked here? Can you say, "wrong counterparty name"? Also, why don't you have your own trader ID yet? Geez. Sincerely,

FYI: Changed Deals

Just to let you all know - the following deals have been changed per Mike Swerzbin - 516611 - from H01 to Q3-01 516618 - from 10 mw to 16 mw 516651 - from Mid-C to Palo Let me know if you have any questions about these changes. (Most were due to my inability to read his handwriting!) Thanks,

EPMI LTSW Futures Deals

Finally! After a slight uphill battle, we've successfully entered the first three futures deals under the Mid-Columbia NYMEX settlement price. Because all of you were involved in this process in one way or another, I thought I'd let you know that it was successful in the end, and forward the deal numbers along for reference. They are as follows: TAGG Futures Deals - QQ0362 (J-01) QQ3837 (K-01) QQ7050 (M-01) ENPOWER Swap Deals - 517925 (J-01) 517928 (K-01) 517929 (M-01) Thank you for all of your patience and cooperation. If you have any questions, please let me know.

Wrong CPs

Trades with TransAlta go through their energy marketing subsidiary, called TransAlta Energy Marketing (US) Inc. These deals were in under the parent company, TransAlta Energy Marketing Corp. I know this is petty, but it makes people like Rhonda cranky. For some reason she feels it is an offense punishable by reaming. I don't. This is just a reminder. Kate red = correct counterparty name blue = incorrect counterparty name

Rob McCrory

I have scheduled for each of you to meet with Rob McCrory on October 15, 2001 (except for Mark and Susan who are scheduled to meet with him on Thursday, Oct. 12). Rob will be visiting us next week during the Legal Conference. He is from our Sydney, Australia office. Rob is a lawyer by background who has been a Manager in the Regulatory Department there, but he has spent some time over the past year working with David Minns, our Senior Counsel there, on legal-related matters arising in the Australia market. Rob has been focusing his "legal" time on master ISDA's and other trading documents involving Enron Australia. While he is here Rob will also be meeting with Mark Haedicke and Jim Derrick. He is interviewing to become a Legal Counsel (Attorney) in the Sydney office so he can become an official member of the EWS Legal Department. Attached is Rob's CV for your information. Thanks for meeting with Rob. Regards, Alan

EOL Disclosure Consent

Kal/Susan - Attached is an updated version of the disclosure consent agreement for EOL information. Please take a look at the attached and let me know your thoughts. Mark

New Temp IDs

Since our department has grown, we have realized the need to add 3 new temporary IDs. Following the instructions below, please add calendar access rights for EWS Legal Temp IDs 9, 10, and 11 (as show in blue below). While doing this, would you mind checking the other IDs as well to be sure they are listed. When logging in temporaries we have discovered that some access rights work with some temp IDs, but not all. Thank you!

Contract Settlement - Required Approvals

Lance - It is my understanding that Enron Credit is currently closing down operations. In light of this, EC has a contractual obligation to a company called Risk Metrics Group. The obligation arises out of the development and hosting by RMG of a website devoted to the use of EC's credit risk data - the site being mainly focused toward subscribers to other RMG products. Since we are terminating the development and hosting agreement - in essence shutting down the site - we will owe RMG approximately $96,000. While I realize this is a small sum, I wanted to make sure (1) there are no approvals under the merger agreement that are required for a settlement of this nature and (2) if we are tracking this type of liability for merger purposes, that I provide the necessary information to the appropriate personnel. Please let me know if either of the above are necessary. Thanks.

Project Notre Dame - Change in Control

The merger agreement with Dynegy provides that subs of Dynegy merger with Enron with Enron being the surviving corporation. Enron and Dynegy then would be subs of a newly incorporated holding company. It might be more advantageous for a variety of reasons to do a structure in which Enron mergers with the ultimate publicly traded company (whether existing Dynegy or a new holding company) with that publicly traded company being the nominal survivor. Under Delaware, Oregon, and most other states' law, the surviving company automatically would assume all of Enron's obligations as a matter of law, and the merger agreement would so provide if this structure were used. Could you review the various change-of-control provisions that you've previoulsy identified to see if this structure--with Enron not being the technical survivor of the merger--makes any difference to your conclusions about whether those provisions would be triggered? Please respond to Rob Walls, Lance Schuler, Joe Henry, Peter del Vecchio and me. Thanks.

Settlement Agreement

Helaine - Attached is a first draft of the proposed settlement agreement for the CreditStream product. I have provided standard provisions in relation to liabilities, waiver and releases. Where there are blanks, I am waiting for additional information and hope to have that soon. As to Paragraph 7, I was unable to locate a copy of the Confidentiality Agreement between RMG and EnronCredit.com from Sept., 2000. Once located, I will probably incorporate the confidentiality terminology into the release/settlement. I hope to have a copy of this agreement a bit later today. Please look over the attached and provide any comments or questions you may have. Hope you had a safe holiday. Mark

Enron/Dynegy Merger; Antitrust Issues

As you know, Enron has signed a merger agreement by which Dynegy will acquire Enron. We expect the transaction to close following shareholder and regulatory approvals and various conditions to closing. Even though Enron has entered into this agreement, U.S. and foreign antitrust laws require that Enron and Dynegy continue to operate independently of each other. In particular, to the extent that Enron and Dynegy are competitors in various businesses or markets, their respective activities must be undertaken at arm's length until the transaction has closed. Therefore, for antitrust purposes you should treat Dynegy as you would any other unaffiliated company notwithstanding the merger agreement. In addition, all information, documents and communications related to the merger between Enron and Dynegy should be coordinated through and approved by Mark Muller, Lance Schuler, Robert Eickenroht, Mark Haedicke, Rob Walls or Greg Whalley of Enron. It is absolutely critical that this procedure be maintained. To the extent that information is required to be disclosed to Dynegy under the merger agreement, then such disclosure should be approved by one of the foregoing individuals. If you have any questions concerning this notice, please contact Lance Schuler (713/853-5419), Robert Eickenroht (713/853-3155), Mark Haedicke (713/853-6544) or Rob Walls (713/646-6017). Thank you for your help in this matter.

Please approve - US Recycled DLK Phy

Your review and approval of the following product types in the EOL Datamanager is needed (for directions on approval, please see steps for approval at the bottom of this e-mail). If you have any questions please call me at ext. 39555. ******** DO NOT APPROVE PRODUCT TYPES BETWEEN THE HOURS OF 6AM - 11AM*********** US Recycled DLK Phy (2165) STEPS FOR APPROVAL: click the START button select PROGRAMS select TEST APPLICATIONS select ENRONONLINE CLUSTER(PROD) PROCEED WITH USUAL LOGIN/PASSWORD click the Enron Online Production Cluster "START" button select EnronOnline (this is the EOL Datamanager) PROCEED WITH EOL LOGIN/PASSWORD click on the "+" for EnronOnline click on the "+" for Product Types click on the "+" for "Partially Approved" select the product requiring review as stated in e-mail above Right "mouse" click on "properties" to view product set-up TO APPROVE: Right mouse click on "Approved"

Voter Registration Reminder

As the November elections approach, I encourage everyone to exercise your right to be heard and to make a difference through your vote. To do so, you'll need to have a valid voter's registration. If you do need to register, please visit your county's website or call your county election officials to learn the procedures and timing.

SDR - 2001 ISDA Master Agreement Protocol

In response to my email of September 24 regarding the 2001 ISDA Master Agreement Protocol, I received responses from only seven (7) institutions. No clear indication resulted from those seven responses (four in favor of proceeding with the Protocol; three in favor of working on a new Master Agreement with no Protocol). Before ISDA proceeds in either direction, it would be helpful to have wider market input. I should point out that ISDA intends to work on a new 2002 or 2003 Master Agreement; timing is the only issue - whether the process begins imminently or nine months from now. The benefits of proceeding with the Protocol is that it takes advantage of the considerable time and effort that has been invested in the initiative to date. While the rate of adherence may be diminished somewhat given the continuing skepticism over certain annexes, the Protocol remains a convenient and effective way for institutions to amend their Master Agreements. It also provides ISDA with some indication of the level of market interest in going forward with drafting a new Master Agreement and what provisions may be problematic. On the other hand, dissension has been expressed with respect to some of the Protocol's annexes, namely, the expansion of the Default under Specified Transactions, the involuntary insolvency provisions and the Replacement Value concept. In addition, there has been skepticism regarding the appropriateness of proceeding with the Protocol when the rate of adherence may not necessarily generate a new, widely-accepted standard for market practice. To a lesser degree, those firms that amend their Master Agreements via the Protocol may encounter certain issues when the new Master Agreement is ultimately produced. If you have not already contacted me with your response, I would be grateful if you could let me know your institution's position as soon as possible. Thank you in advance.

Electronic Pay Stubs

Get ready. Beginning in November, electronic pay stubs will be available to all employees who have their paychecks direct deposited into their bank account. Electronic pay stubs are an easy, fast, and efficient way for you to get your payroll information. They will also help Enron to realize a considerable savings in time and dollars spent over traditional printed pay stubs. If you prefer to receive a hardcopy of your pay stub, click on the link below to complete a request form. This form must be submitted to Payroll by October 15, 2001. Unless you submit a form your pay stub information will default to electronic viewing. Please click on the link below.

Message to Robin Tompkins

Taffy - I've been having trouble getting this e-mail to go through to Robin Tompkins at Portland General. Would you please either find Robin's correct e-mail address and forward it to her or call and get her fax number and fax it to her. Thanks.

Office Construction/Moves

As the office construction process continues, your offices will be among the next to be demolished & reconstructed. While the current timetable is not firm, it looks like your moves will be scheduled sometime between the 5th to the 13th of October (this means the move may take place during the ENA offsite). I just wanted to give you as much warning as possible so you could begin the packing process. Joya Davis will have details of your new (in some cases temporary) office locations, can help with obtaining boxes and will schedule the actual move.

LNG hedging for China

Anita: I seem to remember that our traders in Singapore did a deal with a PRC company a while back and it was our conclusion at the time that it was a very dangerous (perhaps unenforceable) thing to do. My vague memory is that only financial institutions could enter into derivatives in the PRC and even then there was invariably a sovereign immunity risk. Do you remember this and can you refresh my recollection? Mark

WATERSHED FINANCING AMENDMENTS AND SYNDICATION - CLOSING

Let me add my thanks for your willingness to sign these things for us. The guys in London never think about lining up a signatory in Houston ahead of time who might actually know something about what they're signing and why they're signing it. Any chance you'll be in NY Monday night? I'm taking a few people to dinner & you might enjoy it. Mark

Credit Clause - online trading GTC's

This is the e-mail I mentioned yesterday. It is not exactly what had been described to me and I do have concerns with it. My preference would be to limit the clause to the providing of letters of credit whenever we ask (as opposed to any security in form and from a provider satisfactory to us). I understand that London legal was doing some tinkering with the language but I haven't seen anything from them yet. Let's discuss.

Brazilian Trading

I understand that you may be in the Houston office at some point this week. If so, I would like to get a few minutes on your schedule to talk about South American Legal staffing issues. Could you give me a call (713-853-7459) or drop me an e-mail with what might work for you? If you are not actually in the office but have some time to talk on the phone, that would work too. Thanks,

Dead Horses

It's been long enough since I spent any time in the city that I don't really know what the good places are now. Il Mulino and Union Square Cafe were always favorites. What do you think? Just something to keep in mind as you are evaluating your investments: The tribal wisdom of the Dakota Indians, passed on from one generation to the next, says that when you discover you are riding a dead horse, the best strategy is to dismount. However, in modern business, because of the heavy investment factors to be taken into consideration, often other strategies have to be tried with dead horses, including the following: 1. Buying a stronger whip. 2. Changing riders. 3. Threatening the horse with termination. 4. Appointing a committee to study the horse. 5. Arranging to visit other sites to see how they ride dead horses. 6. Lowering the standards so that dead horses can be included. 7. Appointing an intervention team to reanimate the dead horse. 8. Creating a training session to increase the riders load share. 9. Reclassifying the dead horse as living-impaired. 10. Change the form so that it reads: "This horse is not dead." 11. Hire outside contractors to ride the dead horse. 12. Harness several dead horses together for increased speed. 13. Donate the dead horse to a recognized charity, thereby deducting its full original cost. 14. Providing additional funding to increase the horse's performance. 15. Do a time management study to see if the lighter riders would improve productivity. 16. Purchase an after-market product to make dead horses run faster. 17. Declare that a dead horse has lower overhead and therefore performs better. 18. Form a quality focus group to find profitable uses for dead horses. 19. Rewrite the expected performance requirements for horses. 20. Promote the dead horse to a supervisory position.

EnronOnline Credit Derivatives

Louise - If you are back in Houston I'd like to get together and discuss the credit derivatives project. Otherwise, maybe we can chat by phone? Mark

Counterparty Matrix - Mapping Financial Master Agreements

We need to revise the Counterparty Matrix procedures. Counterparties with a North American financial master agreement should only map to North American financial products (including all weather and paper transactions). Therefore, please revise the counterparty matrix to reflect that those counterparties with a North American master map to GTC's for European derivative transactions. Please call me or Tana if you have any questions. Thanks!

Lugar Fundraiser

Here is the e-mail we received from ISDA. Since we only have $500 left and they are suggesting $1000 for the lunch, I'm not sure it makes sense to send someone. I've left a voice-mail for Stacey to ask where they stand and whether or not they still want us to send someone.

Market Response Report

This report lists all customers that are going to receive a rejection letter from credit regarding their EnronOnline application. If you want this process delayed so you can contact your customer or follow up with credit on behalf of your customer, please contact Claudia Clark at x39281 or Karen O'Day at x54135. If they are not contacted, the rejection letter will be sent directly to the customer. PA Company Name: 1. Chandler Engineering Company, LLC

FUNDIES MEETING EVERY DAY BEGINNING NEXT WEEK

For those of you that will be in the office after New Year's, we will begin an informal fundies meeting each day to cover what has happened in the market since we filed for bankruptcy. We will go over pipeline flows, storage balances, weather, monthly and daily prices, etc. With a few of the Banks showing interest in showing a bid, I thought it would be good for us to begin our preparation to trade the market. Chris Gaskill will be providing the daily packet and Patti Sullivan will provide the daily operations report. I was thinking that we should start around 9:30 each morning. Grigsby

Metro Bus Passes and Woodlands Express Passes Available Effective Friday, December 28, 2001

Enron employees not participating in contract parking are eligible to receive Metro Bus Passes or Woodlands Express Passes. You may pick up a bus pass from the Parking & Transportation Desk, on Level 3 of the Enron Building, from 8:30 AM to 4:30 PM. All Metro passes offered through the Enron Parking & Transportation desk will be the Metro 30 Day Zone Pass. When you use a 30-day zone pass, bus service is divided into four zones w/ unlimited rides. The zone pass is time activated, which means that it will not become active until the first time it is used and will not expire until 30 days after it was used for the first time. New passes will be available to Enron employees upon expiration of the 30 day time period. Each zone does have a different fare values based on the distance the bus travels. This is important to any buser who wants to transfer to or travel in a higher-cost zone than the zone pass they have, in this case the difference must be paid in cash. If they are traveling in a lower cost zone, then there is no extra cost. Parking & Transportation Desk 3-7060

London Flat Strategy

What do you think about this strategy? Maybe we should have Deb call Marion and review the list of hotels where Enron has a corporate rate and ask her opinion regarding which ones she would recommend. Maybe -at that point she

trips

RE: New York City Looks like we leave Houston at 1:15 and get to New York at 5:52. We leave New York at 3:00 and arrive Houston at 5:49. The phone number at the Barbizon Hotel is 212-838-5700. Enron has a corporate rate there. Suppose to be $222.00 Deb- if you want to try to get your own room-be sure to ask for the Enron Corp rate. RE: Europe. There are several hotels in London which are listed as giving Enron corporate rates -prices range from $69 to 215. The Ritz is $180. I

Meeting in L.A.

This date works for me so I will assume that Julie will be going. I will work on flight arrangements for Julie and I unless you think you might be going. I need your help in determing what equipment needs we need. Call me at 35539 or respond to this memo.

Misc

Forgot to tell you that Joe and I went to see the Jim Rome show when he was in Houston a couple of weeks ago . It was pretty good. Too bad you'll never see him in Omaha. Guess what else? We got a memo today that Enron is giving all of its employees a home computer and will subsidize their internet connection. Gift is part of their commitment to techonology. Does your company do this with your telephones?

visit

I'm comng to town on Sat urday night Feb 3 (Sat) and leaving Feb 5th (mon). I have to leave San Diego on Monday afternoon to meet with Socal that night. I have to come in on the week-end because air-fares are horrible without a Saturday night stay and I'd rather stay the week-end in San Diego. If you have any time on Sunday or can meet me on Monday for breakfast or lunch let me know. I haven't finalized anything with Larry yet but I plan on meeting him for breakfast or lunch on Monday but I want to check with you first.

Pagers

If you have an Enron Company Pager please turn it in to Claudia or myself by the end of this week. We are going to close our account with Pagenet. Thanks for your help.

SKI TRIP

All right people, time to quit screwing around and to start planning a little weekend trip up here to Tahoe! I'm thinking either the 1st or 3rd weekend of March... I have a friend who's a travel agent and can most likely get everyone a good deal given enough advance notice. Let me know sometime this week if you're serious about going and what weekend you vote for and I'll get some prices together... Peace, Chris

Rotation Verification

The Analyst and Associate Program recently began utilizing one central system for our pool information. We are now in the process of verifying all pool members rotation information for reporting purposes. Please respond as soon as possible with: Your rotation end date (mm/dd/yy) Your cost center number Thank you,

Disaster Recovery Equipment

As a reminder...there are several pieces of equipment that are set up on the 30th Floor, as well as on our floor, for the Disaster Recovery Team. PLEASE DO NOT TAKE, BORROW OR USE this equipment. Should you need to use another computer system, other than yours, or make conference calls please work with your Assistant to help find or set up equipment for you to use.

10/24 FERC agenda -- NYISO

The following matters pertaining to NYISO are on the FERC agenda for the Oct. 24 meeting: ER01-3001: Request by NYISO to extend the currently effective $1000/MWh Bid Caps on certain NYISO adminstered markets, and to extend its Temporary Extraordinary Procedures for Correcting Market Design Flaws and Addressing Transitional Abnormalities, until 4/30/02. NYISO has requested a 11/1/01 effective date. ER01-3009: Proposed virtual bidding procedures (requested effective date 10/30/01). ER01-3153: Proposed market mitigation measures for virtual bidding (requested effective date 11/1/01). ER01-2967: Guidelines for cost responsibility for new interconnections. I will update you on any orders that are issued.

Home Contact Information

Please review the home addresss and phone number shown on this eMail. DO NOT RESPOND if the information is correct. However, if incorrect then reply to this eMail with the correct information so you HR records can be updated accordingly. Your home information is important in case the Company needs to forward critical materials to you or contact you regarding important Company information.

The Princeton Review Enron GMAT Classes

Dear Enron GMAT students, Due to the current circumstances, we will be moving all of our current Enron GMAT classes from the Enron building to our main office location. The schedules will remain the same, but your class will now be meeting at 701 North Post Oak Road, Suite #8. If you have any other questions, please give us a call. We hope the best for your future.

Startup Mining Company Hopes to Expand Only U.S. Fluorspar Mine, in an Advisory by Industrialinfo.com

Welcome to eMail News Delivery, a service from Business Wire. Here is your Industrial Information Resources Inc. news release. If you have received this in error please send a message to: eMailDelivery@businesswire.com with the following command in the body of the message: unsubscribe TX-INDUSTRIAL-INFO-RES If you have questions about this service, please contact your Business Wire Account Executive or service@businesswire.com BW2003 DEC 27,2001 2:00 PACIFIC 05:00 EASTERN ( BW)(TX-INDUSTRIAL-INFO-RES) Startup Mining Company Hopes to Expand Only U.S. Fluorspar Mine, in an Advisory by Industrialinfo.com Business Editors HOUSTON--(BUSINESS WIRE)--Dec. 27, 2001--The following is an

New Address, New Phone Number, New Orleans...

November 2001 Dear Friends & Family, Happy Thanksgiving! We hope that all of you are able to spend quality time with your loved ones over the long holiday weekend. Sophie and I would like to inform you that we have recently moved to New Orleans, Louisiana (NOLA), as of Labor Day weekend. As many of you know, our recent transition is a result of Sophie's admission into the Tulane School of Medicine. She is currently pursuing her life-long dream of becoming a doctor and we are both very excited for this opportunity. NOLA is a familiar environment for both of us; it's where we met nearly four years ago. We are still maintaining a partial residence in Houston and try to visit family & friends at least once a month. I am still based out of the Accenture Houston Office and currently work on a project in Atlanta during the week. Although we will be a little further away from all of you, we very much look forward to your visits. And we're especially happy to announce that we'll be able to entertain you in our new loft (unless, of course, Med School exams are going on). Please feel free to update the following contact information and take note of the upcoming events that will be taking place in New Orleans... UPDATED CONTACT INFORMATION -

Con Edison vs. PSEG (EL02-23-000)

On November 19, 2001, Consolidated Edison Company of New York, Inc. filed a Complaint against Public Service Electric and Gas Company (Public Service) and named PJM Interconnection, L.L.C. and NYISO as necessary parties to the complaint proceeding. Con Edison's complaint requests that the Commission investigate and remedy curtailments by Public Service of transmission service rendered pursuant to bilateral contracts between Con Edison and Public Service. Please contact me if you would like further information on this complaint.

hELLO

Hi Hoon, How is your day going? I hope you are having a good day, I miss you. Call me when you get a chance ok? Love

Fate of Enron's Forest Products Group Up in the Air, in an Advisory by Industrialinfo.com

Welcome to eMail News Delivery, a service from Business Wire. Here is your Industrial Information Resources Inc. news release. If you have received this in error please send a message to: eMailDelivery@businesswire.com with the following command in the body of the message: unsubscribe TX-INDUSTRIAL-INFO-RES If you have questions about this service, please contact your Business Wire Account Executive or service@businesswire.com BW2036 NOV 27,2001 2:00 PACIFIC 05:00 EASTERN ( BW)(TX-INDUSTRIAL-INFO-RES) Fate of Enron's Forest Products Group Up in the Air, in an Advisory by Industrialinfo.com Business Editors HOUSTON--(BUSINESS WIRE)--Nov. 27, 2001--The following is an

Credit Watch List--Week of 10/29/01

Attached is a revised Credit Watch listing for the week of 10/29/01. Please note that Co-Steel, Inc. was placed on "Call Credit" this week. If there are any personnel in your group that were not included in this distribution, please insure that they receive a copy of this report. To add additional people to this distribution, or if this report has been sent to you in error, please contact Veronica Espinoza at x6-6002. For other questions, please contact Jason R. Williams at x5-3923, Veronica Espinoza at x6-6002 or Darren Vanek at x3-1436.

Important Announcement Regarding Document Preservation

As you know, Enron, its directors, and certain current and former officers are defendants in litigation in Federal and State court involving the LJM partnerships. Enron has employed counsel and they will represent Enron and its interests in the litigation. Under the Private Securities Litigation Reform Act, we are required to preserve documents that might be used in the litigation. Accordingly, our normal document destruction policies are suspended immediately and shall remain suspended until further notice. Please retain all documents (which include handwritten notes, recordings, e-mails, and any other method of information recording) that in any way relate to the Company's related party transactions with LJM 1 and LJM 2, including, but not limited to, the formation of these partnerships, any transactions or discussions with the partnerships or its agents, and Enron's accounting for these transactions. You should know that this document preservation requirement is a requirement of Federal law and you could be individually liable for civil and criminal penalties if you fail to follow these instructions. You should know that Enron will defend these lawsuits vigorously. In the meantime, you should not discuss matters related to the lawsuits with anyone other than the appropriate persons at Enron and its counsel. If you have any questions, please contact Jim Derrick at 713-853-5550.

EnronOnline- Change to Autohedge

Effective Monday, October 22, 2001 the following changes will be made to the Autohedge functionality on EnronOnline. The volume on the hedge will now respect the minimum volume and volume increment settings on the parent product. See rules below: ? If the transaction volume on the child is less than half of the parent's minimum volume no hedge will occur. ? If the transaction volume on the child is more than half the parent's minimum volume but less than half the volume increment on the parent, the hedge will volume will be the parent's minimum volume. ? For all other volumes, the same rounding rules will apply based on the volume increment on the parent product. Please see example below: Parent's Settings: Minimum: 5000 Increment: 1000 Volume on Autohedge transaction Volume Hedged 1 - 2499 0 2500 - 5499 5000 5500 - 6499 6000

EWS Brown Bag

MARK YOUR LUNCH CALENDARS NOW ! You are invited to attend the EWS Brown Bag Lunch Series Featuring: THE MAP GUYS Keith Fraley and Peter Hoyt Topic: Visualizing your Data and Marketplace Enhance your market analysis and decision-making capabilities with our commodity-specific geographic information and customized applications. Thursday, October 18, 2001 11:30 a.m. - 12:30 p.m. EB 5C2 You bring your lunch, RSVP email to We provide drinks and dessert. Kathie Grabstald or call x 3-9610

Shanna's e-mail address

Hey Everyone.... As many of you know, I was laid off from Enron yesterday (along with 4,000 others.) I just wanted to forward ya'll my substitute e-mail address until I find a new job. I can't wait to see what new beginnings are in store for me. Talk to ya'll soon,

Trco ICTS contract

We have a discount on the ICTS contract #1.8793 from 11/1/2001 through 3/31/2002. The receipt points are Trco/Nful Leidy and Trco/Cgas Young Women's Creek. The delivery point is Trco/CNG Leidy. The rate is $.025.

Overview of Investor Conference Call

Today, Enron hosted a conference call to give investors a current overview = of the company. Here's an update of what we discussed during the call. We told investors that we're doing everything we can to protect their inter= ests and to regain their confidence. Our focus remains on our credit qualit= y, balance sheet and liquidity, which are essential for our continued succe= ss and expansion of our wholesale businesses. It took more than a few weeks to get where we are today. Here's a snapshot = of significant events that led to our current situation:

Enron Center South Technology Watch

Welcome to Enron Center South. As you have probably already noticed, things look a little different here. We wanted to orientate you to your new environment and inform you about the future technology coming on-line in the coming weeks. Occupancy Guidebook To Enron Center South You will find this handy guide on your desk; it contains information concerning the enhanced printer environment, the new easy access keyboards and telephony procedures. NEC Monitors The NEC monitors have an internal anti-glare screen to help reduce eye strain and eliminate the need to install an additional screen cover. Additionally, an integrated speaker has been installed on one monitor for each desk. Turret Users An "Alliance MX turret quick reference guide" has been placed on your desk; this includes important information about the new features such as "Caller ID" and "Voicemail Indication". Increased Information Access There are many NEC 50" Plasma screens installed on the 5th and 6th floors. While many of these will be displaying information designed for the specific unit, others will be displaying various television channels. The audio to these television channels can be accessed via any of your telephony equipment. Here's how: Ten audio channels have been set up for access from your either your Avaya telephone, Stentophon, or IPC Turret. The channels have been defined on Page 15 of your Turret. To access the audio from either your Avaya or Stentophon, simply dial the extensions shown in the table below: Channel Avaya Stentophon Weather Channel 12401 801 CNN Headlines News 12402 802 CNN Financial News 12403 803 CNBC 12404 804 MSNBC 12405 805 Bloomberg 12406 806 Financial News Network 12407 807 CNN 12408 808 Fox Sports 12409 809 ESPN1 12410 810 Wireless Telephony You may notice the cellular phone coverage is not consistent across the floor, and some areas have virtually no coverage at all. We are implementing a multi-network "in-building" system to provide consistent high quality service for the campus, keeping you in touch while you are on the move. Wireless LAN The infrastructure to support Wireless LAN technology is in place and is being tested. We will be implementing multi level encryption and security to keep our intellectual property safe from eavesdroppers or hackers. Amtel Replacement As a move to provide a more flexible "Plug n Play" environment and to help with the reduced desk footprint, we have replaced the Amtel message boxes with Microsoft Exchange Instant Messaging. The Global Messaging Team is testing additional software products to provide some of the features not available with Exchange Instant Messaging; these include one-touch response keys, external LED display, and printing. Updates will be provided as they become available. Keeping an Open forum We will keep you informed of the changes and developments as the migration to the building continues, please feel free to respond with any comments, queries or suggestions to mailto:Enron.Center.South.Technology@enron.com

Management Changes

With Ken Lay's resignation, you undoubtedly have questions about Enron's management structure and what lies ahead for the company. The purpose of this communication is to begin to answer those questions and lay out the direction we plan to follow as we regroup and rebuild. First, the Creditors Committee has proposed that the Board of Directors retain an interim CEO to focus on the restructuring process. This is a positive sign that the Committee believes Enron will provide greater value as a viable ongoing business. The Enron Board of Directors has approved Stephen Cooper as interim CEO and chief restructuring officer. Steve is the managing partner of Zolfo Cooper, a corporate recovery and crisis management firm with more than 30 years experience leading companies through operational and financial reorganizations. Steve and his firm will work with members of Enron's current management to develop and implement a comprehensive plan to restructure the company and emerge from bankruptcy. As you know, Enron has entered into an agreement with UBS Warburg for the sale of NetCo, Enron's wholesale gas and power trading organization. In preparation for the transition of NetCo to UBS, Greg Whalley has resigned as president and COO of Enron to assume a position with UBS Warburg. We want to thank Greg and the NetCo employees joining UBS for their contributions to Enron and wish them great success going forward. In addition to engaging Steve, Enron has formed an Office of the Chief Executive. I will join Steve in that office as president and chief operating officer, and Ray Bowen will join us as executive vice president and chief financial officer. We will provide additional information regarding the roles and responsibilities of Enron's entire management team once those become more fully defined. Thank you for continuing to support Enron by performing your job everyday. The ongoing uncertainty about our future, coupled with the constant media scrutiny, makes this situation difficult for all of us. While no one can control the media, we can and will define our leadership and devise our strategy for moving ahead. And in doing so, we will build a more certain future for our company and our employees.

Online Launch Plan Update

With the filing of the Hart-Scott-Rodino application last week, it looks like our updated launch timeline is as follows. Note that it is still possible that this timeline could shift: Week of Jan 28: We will distribute a packet to each of the Originators/Traders who have volounteered to call customers and assist in getting signed Password Applications. The packets will contain: Key Messages Frequently Asked Questions (FAQs) Top Counterparty Checklist External Customer Cover Letter Password Application (PA) Registration Form Fax Cover Sheet for PA/Registration Electronic Trading Agreement (ETA) Internal online Marketing Contact List Each person receiving a pack will contact the Master Users at the companies they have volounteered for and send them copies of the Password Application (PA) and Electronic Trading Agreement (ETA). During this week, we will be working hard to get as many of the PA's returned as possible. Once we have a signed PA, we can send the customer their new User ID, which will allow them to start trading on the day we launch the new site. A Splash page will be available at www.UBSWenergy.com or via an automatic redirect from www.enrononline.com. This page will tell customers about the pending launch of www.UBSWenergy.com and provide links to the PA and Registration screens and also to the User Admin screens, which will allow customer Master Users to start setting up their Sub Users. The Splash page will look something like the following: Week of Feb. 4: We will send out a mass mailing to approx. 3,000 individuals at 450 companies inviting them to sign up for the site. Included in the package will be a simple brochure, copies of the PA and ETA, key messages and a list of Frequently Asked Questions. Week of Feb. 11: The site will launch, with at least financial products (timing for gas physical and power physical to be determined according to regulatory issues). General Terms and Conditions (GTC's) will be available online and must be accepted online before a company can start to trade a particular commodity. Trading/Origination Coordination The Top 50 customers will have at least an initial contact within the first two days of starting the marketing effort and that all customers who previously traded either gas or power will receive a mailing within the first 10 days. An online marketer has been assigned as coordinator for each company and will assist each Trader/Originator in following up with Master Users as necessary to make sure PA's are signed and returned. UBSWenergy Marketing Contacts: For Marketing-specific questions, please use the following contacts. For other questions, please contact Bob Shults (30397) or Dave Forster (31861). Teresa Mandola (39807) - Power Jennifer McQuade (53614) - Power Dan Diamond (39673) - Gas

Supervisor Evaluation Forms

TYCHOLIZ, BARRY L: Attached below you will find the final Evaluation forms for your direct reports; these forms have been pre-populated with your employees' basic data. If you have already completed your employees' final Evaluations, you may disregard these forms. When completing the Evaluation, carefully consider employee input, consolidated feedback and your observations of their performance and contribution, and encourage employee participation in the evaluation discussion. For many employees, this will be the only formal opportunity to discuss their performance with their supervisor. Final Evaluations should be completed and returned to your HR representative by August 17 (July 31 for all those in Business Units reporting to Enron Europe) for employees in job groups below Vice President level. If you have any questions, please contact your HR representative or the PEP help desk at x34777, option 4. We recommend saving all the below attachment[s] at once in the following manner: Outlook Users: Go to File -> Save Attachments, click OK if prompted, then choose which directory to save the documents under. Lotus Notes Users: Go to Attachment -> Detach All, then choose which directory to save the documents under.

Important Information from PricewaterhouseCoopers IAS-Barry LeslieTycholiz

Dear Barny PRIVACY POLICY NOTICE TO INDIVIDUAL CLIENTS ABOUT CONSUMER FINANCIAL INFORMATION Our Privacy Policy has been sent to you in accordance with the rules of the Federal Trade Commission as provided by the Gramm-Leach-Bliley Act. PricewaterhouseCoopers LLP respects your right to keep your personal information confidential and to avoid unwanted solicitations. We trust that our Privacy Policy will provide you with a better understanding of our commitment to keep your personal information confidential and secure while serving you. INFORMATION WE HAVE ABOUT YOU We receive information about you that is not available publicly. This information is received from a variety of sources, including: * Information you provide directly to us, such as: your name, address, social security number, assets, liabilities and income. * Information we receive with your authorization from third parties, such as: financial institutions, companies, and other individuals. * Information from consumer reporting agencies. PROTECTION AND USE OF INFORMATION We use the information acquired solely for the purpose of providing tax consulting, compliance and other professional advisory services to you. We take reasonable steps to keep confidential the information acquired. Our right to disclose the information is limited by our Code of Conduct, applicable law, the Code of Professional Conduct of the American Institute of Certified Public Accountants (AICPA) and accounting authorities of foreign countries. Where appropriate, information provided by us to employees, affiliates and nonaffiliated third parties who perform services for us, is subject to contractual agreements which prohibit these parties from disclosing or using the information other than for the purposes for which the information was disclosed. We also maintain reasonable physical, electronic, and procedural safeguards in compliance with applicable laws and regulations to protect your nonpublic personal information. GENERAL RESTRICTIONS ON DISCLOSURE OF NONPUBLIC PERSONAL INFORMATION TO AFFILIATES AND NONAFFILIATED THIRD PARTIES As tax preparers, we are prohibited by Internal Revenue Code Section 7216 from disclosing your income tax return information without your consent, other than for the specific purpose of preparing, assisting in preparing or obtaining and providing services in connection with the preparation of an income tax return for you. Furthermore, as members of the AICPA engaged in income tax preparation or financial planning, we are generally prohibited from disclosing confidential client information about you to affiliates and nonaffiliated third parties without your specific consent. PARTIES TO WHOM WE DISCLOSE INFORMATION We do not disclose any nonpublic personal information about our clients or former clients to our affiliates or to nonaffiliated third parties except as permitted by law and the AICPA Code of Professional Conduct. Nonpublic personal information about current and former clients may be disclosed to both our affiliates and nonaffiliated third parties as permitted by law and the AICPA Code of Professional Conduct, as follows: 1. Complying with a validly issued and enforceable summons or subpoena. 2. In the course of a review of our firm's practices under the peer review rules of the AICPA or a similar professional board. 3. Initiating a complaint or responding to an inquiry made by the professional ethics division or trial board of the AICPA or duly constituted investigative or disciplinary body of another State CPA Society or Board of Accountancy. 4. A review of a professional practice of our firm in conjunction with a prospective purchase, sale, or merger of all or part of our practice, provided that we take appropriate precautions (for example, through a written confidentiality agreement) so the prospective purchaser does not disclose information obtained in the course of the review. 5. Participating in actual or threatened legal proceedings or alternative dispute resolution proceedings either initiated by or against us, provided we disclose only the information necessary to file, pursue, or defend against the lawsuit, and take reasonable precautions to ensure that the information disclosed does not become a matter of public record. 6. Providing information to affiliates and nonaffiliated third parties who perform services or functions for us pursuant to a contractual agreement which prohibits the third party or affiliate from disclosing or using the information other than for the purposes for which the information was disclosed.

Enron Center Garage

The Enron Center Garage has opened. Employees who work for business units that are scheduled to move to the new building and are currently parking in an Enron Contract garage you are being offered a parking space in the new Enron Center garage. This is the only offer you will receive during the initial migration to the new garage. Spaces will be filled on a first come first served basis. The cost for the new garage will be the same as Allen Center garage which is currently $165.00 per month, less the company subsidy, leaving a monthly employee cost of $94.00. If you choose not to accept this offer at this time, you may add your name to the Enron Center garage waiting list at a later day and offers will be made as spaces become available. The Sky Ring that connects the garage and both buildings will not be opened until summer 2001. All initial parkers will have to use the street level entrance to Enron Center North until Sky Ring access is available. Garage stairways next to the elevator lobbies at each floor may be used as an exit in the event of elevator trouble. If you are interested in accepting this offer, please reply via email to Parking and Transportation as soon as you reach a decision. Following your email, arrangements will be made for you to turn in your old parking card and receive a parking transponder along with a an information packet for the new garage. The Parking and Transportation desk may be reached via email at Parking and Transportation/Corp/Enron or 713-853-7060 with any questions.

Amendment Letters

Tyrell, Attached are amendments for the letter agreements. Please distribute to the appropriate individuals. I have also included the Petro-Canada form. Barry, Who in Calgary should work the Petro document? Let me know if you have any questions. Thanks.

WBI Storage info

Is this what you think John wants to see, or should we go into more detail? I tried to get the storage guys a meeting with these guys earlier in the summer but I was not successful. I do not know if they were ever successful in getting that meeting. I do not think so.

Itinerary for Monday Night Football - Broncos vs Giants

Greetings Monday Night Football attendees, We will be providing transportation to and from the game on Monday night. For those of you who would like to ride over with us, we will be meeting in the Tabor Center lobby at 5:00pm. The group will depart for Invesco Field soon thereafter for a stadium tour and pre-game food and drinks. If you would prefer to meet us at the stadium later, please call Mark Whitt (303-575-6478) or Dan Bump (720-946-3632) or reply to this e-mail, and we will have your tickets delivered to you. We look forward to seeing all of you on Monday! Thanks,

PG&E Core - ECC Master Gas Purchase and Sales Agreement

At Peter's request, please find attached a copy of the most recent draft of the PG&E Master as compared to the modified version forwarded to us by PG&E in May. The document also has my comments as to the reasons for some of the key changes. Those comments are in red (so it might be easier to read the document on line). Sharon will be coordinating a meeting to discuss the document in advance of our anticipated meeting with PG&E (which I believe is expected to occur on next Tuesday). In the meantime, if you have any questions, please give me a call (6708). MP

Blend & Extend

For your reference, please find attached a short presentation that we have prepared for Xcel regarding blend & extend products (a.k.a. stack & roll). As prices continue to drop and these deals become more attractive, these slides might be useful in our customer presentations. Please note that, since this particular presentation is for Xcel, we have included some Rockies fundies information that may or may not be applicable to other customers. Let me know if you have any questions.

Presentation1.ppt

Here is a new copy of the El Paso capacity sheets that we went over today in the meeting. Please fill in anything that you can and send it back to me. Thanks,

El Paso's Proposal to Address the Allocation of Receipt Point Capacity

El Paso recently filed their proposal to reallocate receipt point capacity. Comments are due on Thursday, May 17, 2001. We would like to meet with you to make sure our comments address the commercial concerns regarding the reallocation plan. In that regard, please plan to attend a meeting on Thursday, May 3 at 3:45 in 3269. Becky will provide for your review a summary of El Paso's proposal. Please let me know if you have any questions. Thanks

Origination Track Update

The Origination Track manual is being drafted by Tom Wilbeck and Ted Bland in HR. We should have a copy to circulate for your comments shortly. 1) Attached is a list of potential Origination Track candidates. These are analysts and associates ranked 1, 2 or 3 who have had at least one rotation in a relevant area. These are people who could be interviewed by us to determine if they would be a good fit for the track. Please have a look at the list. If you spot any errors or omissions, please let me know. 2) There are an additional 30 analysts and associates who have relevant rotations, but who have not yet been ranked. Any who rank 1-3 could be additional candidates for us to interview. 3) In addition, any analyst - 2 or associate - 1's who rank 1-3 could be candidates for the track. I will forward this list when received from HR. I will forward lists #2 and #3 once I have the info. Dave

Out of Office AutoReply: Kern Shippers Documents (Part I & Part II)

I will be out of the office and unable to check my e-mail until Monday, October 22. If you require immediate assistance, please call Heidi DuBose at (303) 575-6478. Tyrell Harrison

Lexis-Nexis Training: Houston & Worldwide / Dow Jones Training

eSource Presents Lexis-Nexis Training Basic Lexis-Nexis Basic is geared to the novice or prospective user. You will learn the basics of getting around Nexis.com. We will talk about news and company information available on Lexis-Nexis. Attend our Lexis-Nexis Basics Clinic: November 6 1:00 - 2:00 PM EB572 Due Diligence This session will focus on the specific company, public records, and other sources available on Lexis-Nexis that help you find all possible aspects of a company's business and strengths or liabilities. Attend our Lexis-Nexis Due Diligence Clinic: November 6 2:30 - 4:00 PM EB572 Seats fill up fast! To reserve a seat, please call Stephanie E. Taylor at 5-7928. The cost is $100.00 per person. No-shows will be charged $200.00. * Please bring your Lexis-Nexis login ID and password. If you don't have one, a guest ID will be provided. * * * eSource presents free Lexis-Nexis Online Training Using Placeware, an interactive web learning tool, you can participate in this training session from anywhere in the world. Basics Lexis-Nexis Basic is geared to the novice or prospective user. You will learn the basics of getting around Nexis.com and of the news and company information available on Lexis-Nexis. Attend our Lexis-Nexis Basics Online Clinic: November 14 10:00 AM Central Standard Time

Release of Letter of Credit.

Barry, Harlan, Attached is a letter authorizing City National Bank to cancel the Letter of Credit issued to Enron Power Marketing, Inc on behalf of Southern California Edison Company. Please review and have the authorized person sign the letter releasing the LoC. (See attached file: Enron LOC Cancellation.doc) Thanks...

authorized marketer cancellation

Mary, Attached is a letter providing notification of our cancellation as authorized market for the city of Pasadena. Please let me know if you have any quesitons. Thanks,

FUNDIES MEETING EVERY DAY BEGINNING NEXT WEEK

For those of you that will be in the office after New Year's, we will begin an informal fundies meeting each day to cover what has happened in the market since we filed for bankruptcy. We will go over pipeline flows, storage balances, weather, monthly and daily prices, etc. With a few of the Banks showing interest in showing a bid, I thought it would be good for us to begin our preparation to trade the market. Chris Gaskill will be providing the daily packet and Patti Sullivan will provide the daily operations report. I was thinking that we should start around 9:30 each morning. Grigsby

Citizens/PPL Griffith accrual income

Anne, Please book the following accrual origination from grigsby's book to myself and Chris Foster ( 50% each): June 2001 $9,566.58 July 2001 $5,706.52 Aug 2001 $7,736.97 Also, are you the one that I need to inform of what to pay John Cogan? And if so, what months and amounts have we paid him? I will have september ready today or tomarrow and October ready by the 10th which will be our standard procedure. Let me know if you have any questions. thanks,

I See Opportunity

Barry, In spite of the news in the media about Enron, I see opportunity. Since we've communicated last I've been real busy selling my services to major energy traders. Actually Enron is one of the traders that have my company listed as one of three or four minority businesses that will be involved with supplying the power for contracts. These contracts start at $100,000,000 and go up. Barry, I'm going to forge ahead, but I'd still rather have the opportunity to work and learn from the biggest and best.

LADWP

FYI, attached is our response to Los Angeles Department of Water and Power's request that we execute their new Spot Gas Contract. Please let me know if you have any questions. Thanks,

L1 - Visa and BridgeLoan

Fran... I have received the L1 visa package and will use documents to Enter the US on Friday morning. I have also received the bridge loan documents and have signed these forms and sent them back to as of right now via inter office mail..... you should have by tommorrow ( Weds). Can you please sign as required. I think that is about it other than I need to make arrangements for a cheque to be in my hands for friday morning. At this time, I still do not know where to have this sent. Thanks. BT

November PPL Deal Spreadsheet

Good Morning, Could you find our November PPL/Griffith cost spreadsheet and send a copy to me. I asked Mara for a copy but she wrote back saying she was no longer with Enron and to contact you. I'm trying to get a jump on the Holiday craziness. Thanks for your help.

Electronic Pay Stubs

Get ready. Beginning in November, electronic pay stubs will be available to all employees who have their paychecks direct deposited into their bank account. Electronic pay stubs are an easy, fast, and efficient way for you to get your payroll information. They will also help Enron to realize a considerable savings in time and dollars spent over traditional printed pay stubs. If you prefer to receive a hardcopy of your pay stub, click on the link below to complete a request form. This form must be submitted to Payroll by October 15, 2001. Unless you submit a form your pay stub information will default to electronic viewing. Please click on the link below.

Gas Supply

Kim: Following up on some information that you requested, United Cogen, Inc. is a wholly-owned subsidiary of United Air Lines, Incorporated. The name of United Cogen's credit person in San Francisco is Ron Pisa at 650-634-4334. If you have any questions, please give me a call.

TW-Blanco Hub and Questar interconnect 80-120 mmcf/d

Kim The level "A" (30% ?) to construct a new interconnect between TW and Questar at suction side of San Juan are as follows: Facility requirements: Tap/ Side-valve ( $75,000) 12" Ultra-Sonic meter Flow control-valve with positive shut-in Install fence-site Meter Building Chromatograph EFM& SCADA Costs: Material costs: $240,000 Contact, inspection $135,000 Eng and project management Contingency $50,000 OH and AFUDC $20,000 Total $520,000 If you have any questions please call. Mansoor

Data Room Information

Hello Kim. I have attached the index listing all documents that are available in the Data Room. The only specific items that we would prefer not to copy are the drawings, however, we do have some maps available for you to take. I spoke to Ned about the dates you had mentioned and unfortunately, next week several key people will be out of town. At this time November 12 is available - but I need to make sure that our engineers and legal counsel will also be available. I will let you know as soon as possible. Please call if you have any further questions. Thanks.

USGT K# 27161

=09Here's what I've found out from Dennis Lee. USGT requested a realignmen= t of delivery capacity back in June (it was also sent to them in June). Th= ey held onto the request until a few weeks ago when they signed and returne= d the amendment. Dennis found where the capacity was disapproved by Perry = Frazier but, for an as yet unknown reason, Michelle Cormier tendered this a= mendment to them. The changes have been activated in the TW contract syste= m; however, we have not signed/returned the amendment and they have not nom= inated these changes. Dennis says they switch these DP's frequently and wo= uld "probably" be agreeable to switch 6,000/d of their capacity (which was = suggested by Perry in his denial of capacity) upon our request. As you're = aware, Michelle has changed jobs since this incident and this amendment was= tendered prior to our re-implemention of the routing process. I'll get yo= u the file and associated papers as soon as Dennis has completed his examin= ation. Our Tariff does stipulate that an amendment, not returned within 30 = days, is null and void. Since we did not sign and return the amendment, we= could just say it "timed out"... just a thought. Craig

TW 3rd qtr top ten

Attached is the top ten shippers by revenues for TW. If you have questions, please leave a phone message for me, I will be back in the office next Tuesday at 2:00. I will be checking phone messages. thanks