BUSINESS HIGHLIGHTS

BA&R Merchant Finance
Not your typical "bean counters", the BA&R Merchant Finance group is 
responsible for maintaining and reporting the accounting valuations of the 
ENA merchant portfolio, coordinating the quarterly revaluation of the 
portfolio and directing the Arthur Andersen quarterly review (during earnings 
release) and year end audit.  Customers include ENA Office of the Chair, 
Corporate Reporting group during quarterly earnings release, commercial 
groups, RAC groups and other commercial support groups.  The group supports 
the accounting and reporting needs of the Principal Investments, Energy 
Capital Resources, Generation Investments, Special Assets and Portfolio 
commercial groups.  With the recent realignment of ENE lines of businesses, 
the group has recently been involved in the successful transition of merchant 
assets into newly formed Enron Global Markets.  The group has also been 
heavily involved in complex hedging structures allowing ENA to effectively 
hedge a significant portion of the portfolio.  What's next?  Bean counting is 
probably not on the list!

EnTelligence?
No, its not spelled wrong, it's the name of a prospecting website in ENA 
designed to deliver market information on existing and potential customers to 
commercial trading, mid-marketing, and origination teams.  It also delivers 
management reports to analyze Enron,s position within the key industries that 
we serve.  Presently, commercial groups have multiple methods for acquiring 
potential customer information.  This system will standardize their resource 
tools and add consistency to their prospecting processes.  EnTelligence 
combines information from internal databases such as Global Counterparty, 
Credit Aggregation System (CAS), Sitara, Enpower, and ERMS with information 
from external data sources such as Dun & Bradstreet and I.H.S Energy Reporter 
to identify customer prospects.  By providing the capability to filter and 
search by region, industry, company size, or energy consumption levels, the 
prospecting process is shortened and the identification of strong prospects 
improved. Available reports include Market Penetration, Industry Prospecting, 
Comparison Prospecting, Company Profiles, Family Tree, Top Customers, and 
Inactive Accounts.  Currently only Natural Gas and Power physical deals are 
loaded, but financial deals will be included in mid-January, and new products 
are soon to follow.  Check it out at http://entelligence.enron.com.

West Power Trading
Enron West Power Trading has two basic operations, Power Trading and 
Origination.  The Power Trading Group consists of real-time, day-ahead, term 
trading, and Middle Marketing.   Much of the hour-ahead and cash trading is 
centered on the California Power Exchange and the California ISO markets, 
along with bilateral trading both inside and outside of California.  The term 
traders and middle marketers often rely on EnronOnline, the world's largest 
e-commerce Web site, as a key component in futures transactions.

The Origination Group plays an instrumental role by developing and executing 
strategic transactions with wholesale customers.  Services offered by the 
Origination Group include asset and resource management, asset development 
and construction, structuring long-term physical and financial contracts, and 
the evaluation of asset acquisition and joint mergers.


ENRONONLINE STATISTICS
Below are the latest figures for EnronOnline as of December 6, 2000

* Total Life-to-Date Transactions > 503,940
* Life-to-Date Notional Value of Transactions > $301 billion

Worth noting, EOL did $6.7 billion worth of US business on December 4, 2000!


NEWS FROM THE GLOBALFLASH

Enron Direct
Enron Direct was recently cited by Ofgem for high complaint levels with 
regard to account complaints per total customers served.  Enron Direct views 
the Ofgem customer service measures very seriously and is committed to 
improving all aspects of its customer service - even while enjoying continued 
strong growth in its retail commodity business.   However, the account 
complaint level measure is particularly biased against fast-growing new 
entrants like Enron Direct.  Since all of Enron Direct's customers have 
recently switched suppliers - which is when most complaints occur - and our 
total customer base is far lower than that of the RECs, our account complaint 
levels per customer tend to appear inflated versus the REC peer group.   In 
fact, Enron Direct's complaint levels for both transfers (i.e., switchers) 
and mis-selling, as measured by Ofgem, were well below industry averages.  
While we are not yet best-in-class, Enron Direct's portrayal as an industry 
laggard in any aspect of customer service is misleading.  Stay tuned.

Relations with UPM-Kymmene
As previously announced, Enron Nordic Energy has entered into a two year 
energy portfolio management agreement with UPM-Kymmene, the forestry industry 
enterprise.  This deal creates huge potential for business opportunities 
across a wide range of areas for Enron.  

As part of the agreement, UPM-Kymmene has requested a dedicated account 
manager in Oslo.  In order to comply with this request, we have appointed 
Sami Tenngren on a full time basis to establish the operational framework and 
to coordinate all Enron relations with UPM-Kymmene regarding power related 
issues.

It is important that all Enron businesses take advantage of this unique 
opportunity to generate profitable business relations with UPM-Kymmene. If 
you would like to discuss new business opportunities related to worldwide 
power with UPM-Kymmene, please contact the Nordic Origination Team. Please 
also keep us informed about any other business development issues related to 
UPM-Kymmene within other parts of Enron.

Australia
The Sydney Metals Desk is now fully manned. Welcome to Owen Murphy,  Max 
Sobal and Robert Heynen to the Sydney Office.  The Metals Group is already 
reviewing the possibilities of utilizing the existing metals customer base in 
Australia to expand these relationships to include power supply/pricing, a 
large component of overall costs.  While in its early days, our preliminary 
discussions on the idea of pricing for power in relation to metal price is 
receiving a positive response.


IN THE NEWS

The company, which 10 years ago earned some 80 percent of its profits from 
its regulated gas-pipeline business, has become the nation,s largest buyer 
and seller of natural gas and electric power and has pioneered a powerful 
trading platform to make effective markets in both commodities.  But what has 
really electrified Wall Street during the past year are Enron,s new-economy 
initiatives. ) Jeff Schlegel, Broad Horizon

&It,s a challenge to value Enron,s stock, because it,s such a hybird.  It 
always seems expensive, but it continues to outperform expectations & ) Zach 
Wagner, Analyst, Edward D. Jones & Co.

Enron Corp was announced the Energy Company of the Year at the FT Energy 
Global Awards, sponsored by Deloitte Touche Tohmatsu!  EnronOnline was named 
the Boldest Successful Investment Decision and Ken Lay was nominated for CEO 
of the Year.


NUGGETS & NOTES
Congratulations to Ed Quinn, Director in Pulp and Paper, and wife Meghan; 
they are the proud parents of Lucie Andreas Quinn, born 11/10/00.

Congratulations to Chris Croom, Manager in Pulp and Paper, and wife Kathy; 
they are the proud parents of William Grayson Croom, born 12/01/00.


WELCOME

New Hires ENA/EIM/EGM
ENA ) Edmund Daniels, Nancy Hernandez, Ryan Staub, Julie Brewer, Mary Toward, 
Theresa Villegiante, Marlene Cameron, Isaac Rodriguez
EIM ) Clint Comeaux, Matthew Battarbee, Janine Kattner, Felecia Russell


ENSIDE NEWSLETTER
Check out the latest issue of the EnSide Newsletter featuring Jeff Donahue, 
Janet Dietrich, Principal Investments, and Upstream Origination.  Log-on to 
http://home.ena.enron.com/newsletters/enside/archive/ - November/December.  
If you would like a hard copy, contact newsletter editor Kathie Grabstald 
x39610.


HOLIDAY PARTY PHOTOS
If you had your picture taken at the Holiday Party, stop by EB 3645 to pick 
it up.


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.