We are approaching February 29, 2000, which is generally regarded as the 
second most critical Year 2000 rollover date, second only to the millennium 
rollover.  A year divisible by 100 is not a leap year, unless it is divisible 
by 400.  As a consequence, some applications that were programmed incorrectly 
will believe the date is March 1, which may cause system errors.

During the millennium rollover Enron encountered Y2K related issues only with 
the bottom tier of applications and embedded systems that were ranked as 
"ordinary" or "low" in our triage processes.  The problems that did arise 
were few and were quickly fixed.  This is exactly what we were planning for 
and is a testament to a job done exceptionally well by all.  

In consideration of the few and minor problems Enron encountered on January 
1, 2000, our procedures for the 29th will be curtailed.  The goals for this 
period are to validate that all mission critical applications and embedded 
systems are functioning normally and to ensure that all problems are reported 
through the project office.  We are not planning to reopen the Millennium 
Management Center nor do we plan to operate outside of normal business hours.

Please ensure that each group that reported to you for the millennium 
rollover run through the same Y2K checklists for critical systems.  For this 
exercise, however, we anticipate them reporting back to you on an exception 
basis only.

If problems do occur, the nature, details and planned ready dates should be 
forwarded to Andrew Parsons (713 853-6665) or Bob Johansen (713 853-6842), 
who will report to management and monitor events.  Also, be sure to route any 
inquiries from the press through the same public relations contacts that were 
used on January 1st.  The key contact at Corp Public Relations is Karen Denne 
(713 853-9757).

Thank you for your cooperation,


Andrew
713 853-6665