US Gas

Liquidity

EOL has allowed Enron to simultaneously provide internal and external 
customers with realtime  markets in many of the physical and financial 
products that we trade.  The ability of all customers to execute trades and 
receive instantaneous confimations has resulted in rapidly growing volumes 
and growing customer participation.  One of the benefits of this system is to 
allow all customers access to the market prices rather than being funnelled 
through third party brokers.  

Enron has committed to providing both depth of volume and tight bid/offer 
spreads. This committment has been main driver of the growth in volume since 
rollout last Nov.29.


Transparency

The existence of our two way market has removed all doubt about the firmness 
of bids and offers.  We will trade on the price and volume on our bid and 
offer.   The growing volumes over our system has lessened our dependance on 
the sometimes unreliable broker served market.  Many of our customers and 
competitors now use EOL as an information source as well as a trading 
vehicle.  EOL is the only service that provides free real time information on 
as many traded markets in the physical and financial worlds.  We have no 
competition in this regard.  This aspect of EOL has been helpful to the 
smaller customers that are not primarily trading operations.  

Deal Flow

As the market maker on this system we do derive some tangible trading 
benefits.  We are collecting the bid/offer spread on our transactions and 
over time this results in a direct bottom line benefit.    Enron's market 
share of financial tranactions will also increase overtime as we have become 
the easiest and most reliable way to transact in the market.