BUSINESS HIGHLIGHTS

Weather Trading
The weather desk closed a 3-year precipitation collar with payouts linked to 
natural gas prices.  The transaction hedges included Asian options from the 
gas market, precipitation floors from the weather market, and precipitation 
insurance from the insurance market.  Eight companies were involved in the 
transaction including the following Enron companies: EGM, ENA, Enron Re, and 
RMT.  Along with the hedges, the end result of the transaction is cheap 
3-year precipitation call options and precipitation dependent natural gas 
call options for the weather desk.

Houston Pipe Line Company
On Thursday, January 11, American Electric Power (NYSE: AEP) announced that 
they have executed a definitive agreement under which AEP Energy Services Gas 
Holding Co., a wholly owned subsidiary of AEP, will acquire the stock of 
Houston Pipe Line Co. from Enron Corp.  Included in this agreement are all of 
the pipeline assets of HPL, as well as a 30-year operating lease for the 
Bammel Storage Facility, the Houston Loop and the Texas City Loop.   

IN THE NEWS
"Enron is, in other words, the biggest, baddest B2B e-commerce company on the 
planet, and its experience belies the idea that innovation is impossible in 
large organizations." -- eCompany Now, January/February 2001.

BROWN BAG

Mark your lunch calendars now for the upcoming Brown Bag featuring Gary 
Taylor, manager in weather trading.  He will present an overview of the 
weather risk management market.  It,s next Thursday, January 18, 
11:30am-12:30pm, in 5C2. RSVP today to ext. 5-7352.


NUGGETS & NOTES

"What am I missing?!"  - Mike Bradley, Vice President/Equity Trading-EGM

"Do something!" - David Vitrella, Manager/Equity Trading-EGM

"We may not do the most EnronOnline trades, but we do the largest" - Larry 
Gagliardi, Director/Oil Products-EGM

&We have completed an efficient and successful transition from Energy 
Outsourcing to Steel.  Of course, as my dad used to say, +talk's cheap, takes 
money to buy whiskey., In 2001, we'll let our P&L performance do the bulk of 
the talking.8 - Tim Battaglia, Vice President/Steel Origination - EIM

Congratulations to William Stuart, manager in currency trading and Charla 
Stuart, manager in community relations.  They are the proud parents of Aaron 
Myles Stuart, who was born January 9 and weighed 7.11 lbs.

Sean Keenan, associate in EIM, and wife, Katherine, are the proud parents of 
William Patrick, who was born January 1 and weighed 6.4 lbs.

Carlos Ruiz, associate in EIM, and wife, Maria, are excited to announce the 
arrival of their new baby boy.  Cristobal Ruiz was born on January 8 and 
weighed 7 lbs.


WELCOME

New Hires
ENA - Thomas Barkley, Rakesh Bharati, Delmar Davis, Andrew Edison, Brendan 
Fitzsimmons, Patricia Goode, Michelle Huber, Ken Lewchuk, Wykena Lipscomb, 
Albert Meyers, Stacie Mouton, Victor Munoz, Wichai Narongwanich, Christopher 
Ordway, Brent Johnston, Michael Law, Michelle Wells, Peter Piorecki, 
EIM ) Jill Lafave


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.