Mark- here is my response to your request. Call with questions.

Goal:
Total Foreign Exchange Exposure quantified and communicated to BOD.

Performance:
Project completed with final tranche of results reported to Finance Committee 
Dec 11. The notional exposure as well as impact on potential impact on 
earnings and CTA accounts have been quantified and reported to the BOD over 
the past year according to a schedule that has strictly adhered to. Also, a 
template and process has been established to be able to easily report changes 
in the future. Enron has never had a comprehensive review of FX exposure 
prior to this activity. As an aside, there has been a fair amount of hedging 
activity resulting from this effort.

Goal:
Establish risk and trading control processes for risks unique to EES.

Performance:
Systems have been established and monitoring controls are in place across 
EES. A thorough study of the DSM business has been completed and the results 
presented to the Finance Committee. A RAC task force has been put in place 
which has established a work plan consisting of 53 elements that EES has 
agreed to put in place to get the overall back office and trading and credit 
control systems where they need to be. Significant progress has been made 
against these recommendations. DSM projects have been spot tested with 
outside measurement firm and the results reported to EES. These tests have 
highlighted focus areas to determine where the capital dollars are best 
employed.

Goal:
Solidify the global risk management policy beyond Houston and London.

Performance:
Complete and Ongoing. During 2000, Project Doorstep was initiated by RAC 
which inspected every office within Enron to determine if trading was taking 
place and if so whether the Enron controls were being adhered to. A data base 
system was developed to routinely prompt surprise inspections of these 
offices and also monitor if the recommendations are being adhered to. 
Doorstep was a huge effort involving RAC, AA, and operations to really 
understand where we have risks. It also helps in defining where we don't have 
responsibility such as EOTT,  Azurix  and The New Power Company.