BUSINESS HIGHLIGHTS

East Power Group
The East Power Group is off to another strong start in 2001.  The realignment 
of the group into regional business units with joint trading, mid-marketing, 
and origination operations has proven to be a catalyst for deal flow, 
producing both a high volume of transactions and high value.  More 
transactions were executed in January than any month last year, including one 
deal that will bring tremendous strategic value to Enron as well.

Executed in January, was the purchase of two 35 MW coal-fired cogeneration 
facilities located in southeastern North Carolina.  ENA will supply steam to 
the industrial host, Alamac Knit Fabrics, and will sell power into the 
merchant market.  The plants are inside Carolina Power & Light's service 
territory, which is connected to AEP, Virginia Power, Duke, SCEG and SCPSA.  
These plants are the first purely merchant facilities in North Carolina.  
This deal exemplifies how Enron leverages its talent in that originators from 
the East Power Group and Industrial Markets Group joined forces to bring this 
deal to execution.  They also leveraged the Global Markets group to manage 
the coal supply and emissions issues.

Prospects going forward look promising as a number of high value transactions 
are in the pipeline.  Of particular note is The Sandhill Power Project, a 180 
MW peaking facility currently under construction in Austin.  The facility is 
scheduled to come online in June, in time for the advent of deregulation in 
Texas. The joint venture, between EPMI and Austin Energy, will provide both 
trading groups with a highly flexible asset, enabling them to access 
real-time volatility while hedging existing obligations.

Additionally, the Fort Pierce (Florida) City Council voted 5 to 0 in favor of 
Enron's proposal to repower the Ft. Pierce Utilities Authority's (FPUA) 
existing power plant in that city.  Our proposed 180 MW facility will be used 
to produce steam to power the H.D. King facility at approximately 20 percent 
less cost than FPUA can produce it.  According to FPUA officials, this 
reduction in cost may lead to reduced rates for their ratepayers.  The 
planned in-service date is summer of 2002.

Industrial Markets
EIM Fundamental Analysis Group grows again!  The Fundamental Analysis Group 
continues to expand its staff and capabilities.  They will be introducing you 
to specific activities in the weeks to come, but would like to introduce you 
to the new staff members who have joined in the past month.  

On the paper/pulp/lumber side, Bin Wang is responsible for supporting the 
lumber group; Adnan Patel will be assisting with newsprint and structured 
transactions.  

For the steel group, Doug Parsons and Yana Kristal are providing market 
analysis and econometric/price forecasting support.  Our latest recruit, 
David Maxwell, is assisting with the evaluation of a customer management 
system and developing analytical databases for all product lines. A visible 
enhancement to the group,s operations has been the Intranet web site, which 
has been in development for the past three months.  The site will be 
transferred to a production server by the end of February.  The site contains 
all types of industry, market, regulatory, analytical, and financial 
information for deal analysis.  

Another major development is the adoption of a customer information 
management system.  EIM is currently evaluating Siebel Systems, a software 
provider that has developed this type of information tool for EES.


IN THE NEWS

Enron has been named the "Most Innovative Company in America" for the sixth 
consecutive year by Fortune.  That's right -- six years in a row.   We 
continue to be recognized by our industry peers and other corporate 
executives and securities analysts as the company that sets the standard for 
doing business in the new economy.  Congratulations to all of you for making 
it happen.

Enron placed No. 18 overall on Fortune's list of the nation's 535 "Most 
Admired Companies," up from No. 36 last year.  We also were ranked among the 
top five in "Quality of Management," "Quality of Products/Services" and 
"Employee Talent."  

This issue of Fortune is now available in airports and will be on newsstands 
Monday, Feb. 12.  For more information, go to www.fortune.com.


NUGGETS & NOTES

"The revolution has begun......"  - Ted Bland, Director/HR Recruiting 
Operations

"We trade propane and propane accessories" - Adam Gross, Director/Global LPG 
Trading-EGM


WELCOME
New Hires
EGM - Robert Beyer, Jacqueline Darrah, Herbert Goodwin, Vera Ilyina, Tracy 
James, Christopher Mulcahy, LaBricia Seyrus
ENA - Tonya Dennis, Kathryn Sheppard, Bin Wang


LEGAL STUFF

The information contained in this newsletter is confidential and proprietary 
to Enron Corp. and its subsidiaries.  It is intended for internal use only 
and should not be disclosed.