Rick Buy informed us this morning that the BOD approved, effective today, a 
one week extension of the Temporary VaR allocation of $5MM to UK Power that 
was made last week in the e-mail referenced below.  So the limit changes as 
of 12/12/00 for Enron Europe:
  
   through 12/22/00 12/23/00 - 12/31/00 1/1/01
1) UK Power VaR $20.3MM  $15.3MM  $13.95MM
     UK Power NOP 68 Twh   68 Twh   59.5 Twh

If UK Power feels they need a VaR limit in excess of the schedule above, they 
will need to meet with Ted Murphy and Rick Buy to discuss it further.  
Currently, we have no Discretionary VaR available for allocation, but 
re-allocation from another commodity group may be technically possible at 
some point.  Although
several other commodity groups are vying for the same VaR capital.

2) European Gas - NOP and Maturity/Gap Limits revert to permanent limits on 
1/1/01 (as previously scheduled),  of 60 Bcf and 90 Bcf, respectively

3) Credit Trading - now includes the Debt Trading commodity group, and has 
one combined limit structure:
  NOP                  Maturity/Gap  VaR 
 $750,000 DV01/bp total        N/A   $5 MM
 $  50,000 DV01/bp individual


4) Commodity Group Loss Notification requirements were changed as follows 
(note: business units are encouraged to establish sub-limits):
      Effective 12/12/00  Previous
Daily Loss in any Commodity group or Portfolio:

? Report to Business Unit Office of the Chairman 100% of VaR   not 
specifically stated
? Report to Enron Corp. President   125% of VaR   50% of VaR
? Report to Enron Corp. Chairman   150% of VaR    75% of VaR
? Report to Audit Committee   no reporting at commodity  all are reported 
quarterly
group level   

Cumulative 5-day Loss in any Commodity Group or Portfolio:

? Report to Business Unit Office of the Chairman 125% of VaR   not 
specifically stated
? Report to Enron Corp. President   150% of VaR    75% of VaR
? Report to Enron Corp. Chairman   175% of VaR    100% of VaR
? Report to Audit Committee   no reporting at commodity  all are reported 
quarterly
group level

Please share with whoever else needs to know, the change in loss notification 
requirements as these are applicable to all commodity groups.


Regards,
Cassandra Schultz.
x30429.

---------------------- Forwarded by Cassandra Schultz/NA/Enron on 12/13/2000 
01:15 AM ---------------------------
   


From:  Cassandra Schultz                                                      
       12/07/2000 12:49 PM	
	
	
	                           
	

To: James New/LON/ECT@ECT, Michael Kass/EU/Enron@Enron, Mike 
Jordan/LON/ECT@ECT
cc: Fernley Dyson/LON/ECT@ECT, Oliver Gaylard/LON/ECT@ECT 

Subject: Limit Changes

Today, December 7th, the Executive Committee of the BOD met and approved the 
following temporary limit increase for Enron Europe:

Temporary $5MM increase in VaR:   12/7/00 - 12/15/00

UK Power VaR 12/7 - 12/15  $20.3 MM  


Please revise the DPR accordingly, as will Global Energy Operations here in 
Houston to incorporate this and other changes.  The BOD meeting is this 
coming Tuesday, and I will then let you know what the permanent or more 
extended temporary limit adjustments are. 


Regards,

Cassandra Schultz.