BUSINESS HIGHLIGHTS

Global Risk Management Operations
Operational Risk Management was the topic of an information session held last 
week for all managers and above in ENW who support trading operations for EA, 
EIM and EGM in Houston, Portland and Calgary.  Operations professionals, who 
manage risk book reporting and analysis, confirmations, physical product 
scheduling and cash management reaffirmed their roles in effectively 
accessing, managing and mitigating operational risk.  This focus on 
operational risk management will ensure the quality of EWS' earnings, and 
support a platform for continuing growth across all commodities in 2001.

Steel Origination 
Since its inception in September, the steel group has grown to over 40 
people.  They have contacted the majority of the key industry players and 
received positive feedback.  Additionally, the group has executed both 
physical and financial trades and has 10 products posted on EnronOnline.

Steel prices are at a 20-year low, several large producers have recently 
filed for bankruptcy protection, and capital is scarce. The industry needs 
both liquidity and price risk management. At this time, Enron is the only 
company offering these products. A middle-market group has recently been 
formed, which will allow the originators to focus on longer term deals with 
embedded capital. The biggest challenge is bringing the "old economy " 
incumbents up to speed on derivatives. There may also be some credit issues. 
Stay tuned for cash flow and earnings.


MANAGING DIRECTOR & VICE PRESIDENT APPOINTMENTS
Congratulations to the new Managing Directors and Vice Presidents in 
EA/EIM/EGM.

Managing Director ) Commercial
Phillip K. Allen, West Gas Trading   Timothy J. Detmering, Corporate 
Development Joseph M. Deffner, Treasury & Funding 
Timothy N. Belden, West Power Trading   William D. Duran, Generation 
Investments Phillip R. Milnthorp, Canada Origination 
Christopher F. Calger, West Power Origination   

Managing Director ) Commercial Support
Sally W. Beck, Energy Operations Management 

Vice President ) Commercial   
Albert E. McMichael, Jr., Gas Commodity Structuring Christopher Mahoney, 
Liquids Trading  Kevin J. McGowan, Coal
Niamh Clarke, Liquids Trading    Lloyd D. Miller, Portfolio Management  John 
A. Zufferli, Canada Power Trading
Derek J. Davies, Canada Origination   Per A. Sekse, Global Risk Markets  
Rogers Herndon, East Power Trading
Mark D. Davis, Jr., East Power Trading   Mark Tawney,  Weather Trading   
Michael D. Grigsby, West Gas Trading 
Paul Devries, Canada Origination              Barry L. Tycholiz, West Gas 
Origination  Mark Whitt, West Gas Origination
Christopher H. Foster, West Power Trading  Frank W. Vickers, East Gas 
Origination  

Vice President ) Commercial Support
Laura Scott, Canada Accounting    Richard C. Sherman, Transaction Support 
Georganne M. Hodges, Trading, Origination &  Power Plant Accounting 

Vice President ) Specialized Technical 
Peter C. Keohane, Canada Legal    Elizabeth A. Sager, Physical Trading  
Pinnamaneni V. Krishnarao, Research Group  Richard B. Sanders, Litigation
Travis McCullough, Finance Origination & Mergers/Acquisitions


Weekly EnronOnline Figures
Below are figures for EnronOnline as of January 12, 2001.

* Total Life to Date Transactions   >   560,000
* Life to Date Notional Value of Transactions   >   $340 million 


IN THE NEWS
The Energy Power & Risk Management/Risk 2000 Commodity Derivatives Rankings 
have been announced and once again Enron is at the top of the list.  Our 
rankings are:

Number 1 in the following categories:

 North American Natural Gas - Nymex Look-alike Swaps
 North American Natural Gas - Basis Swaps
 North American Natural Gas - Nymex Look-alike Options
 North American Natural Gas - Basis Options
 UK Natural Gas - Options
 UK and EU Electricity - Swaps (UK)
 UK and EU Electricity - Swaps (Europe)
 UK and EU Electricity - Options (UK)

Number 2 in the following categories:

 Gasoline - Swaps (Americas)
 North American Electricity - Swaps (North American - Eastern)
 North American Electricity - Options (North American - Eastern)
 Weather Derivatives - North American Swaps
 Weather Derivatives - North American Options

Congratulations to all of the commercial teams responsible for this great 
showing!


NUGGETS & NOTES

"There is always a way, if you're committed." - Mike McConnell/President & 
CEO-EGM

"We don't have any direct competitors.  It's more fun to sell when you're not 
being shopped.  Are you with me? " - Brad Dunn, Vice President - Steel 
Origination-EIM


WELCOME

New Hires
ENA - Bart Burk, Catalina Cardenas
EGM - Shereka Jefferson, Armando Lira

Transfers
EGM - Wayne Kimball
EIM - Kimberly Bergen, Jay Boudreaux, Cedric Burgher, Kristen Hanson, Laurie 
Lee, Douglas Parsons


GLOBAL FLASH

UK Gas Update
This week the Bacton- Zeebrugge Interconnector surprised the market by 
switching flow direction from UK Import to Export despite European spot 
prices being lower than UK prices.  The Interconnector's operating rules 
allow this to happen at present. Several shippers are lobbying to have these 
rules amended to be able to react more quickly to market forces.  This flow 
direction switch coincided with the recent cold snap increasing demand 
substantially to 430mcm which in turn has resulted in a surge in prompt UK 
prices.  

EOL activity during this period has been particularly active as we benefit 
from the increased volatility in the market. 

Enron has several fuel switching options at our Teesside installations which 
we use to protect our positions.

Fine weather in Japan
Over the New Year, Enron Japan completed a weather transaction with BTM, 
which acted as a broker to the deal.  The deal, whereby we bought the option, 
involved a Jan/Feb average temperature call with a maximum payout of 500 mill 
JPY.   The transaction acted as a trigger leading to further transactions.  
While not a major deal financially, this deal is significant as it offers an 
indication that the Japanese weather market is developing and is growing in 
size.  Takuro Shioda in our Tokyo office did a great job during the 
negotiations.  

TPS Gains ISO 14001 Accreditation
On 30th November Teesside Power Station gained accreditation to the 
internationally recognised Environmental Management System (EMS) ISO 14001 
standard.

ISO 14001 is an international standard that specifies the requirements for an 
environmental management system that TPS had to meet in order to achieve 
third-party certification. The accreditation will encourage cultural change 
by establishing disciplines that ensure policy objectives are met and a 
continual improvement in environmental performance is achieved.


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.