As you may be aware, SAP system response time has been slow during the last three business days. SAP financials, iBuyit, and iPayit applications are experiencing longer than normal response times on most transactions. We recognize that system response is below expectations, and it has affected the Financial Close and other critical business processes. 

We are taking action to correct the problem. At this point we have identified a number of potential causes and have prepared a comprehensive plan to return the system to expected performance levels. 

Based on a preliminary review we have found a large number of poor performing jobs, programs and reports that were major contributors to the response problem. We are exploring ways to improve the response of these programs. In addition, we have tuned system parameters and database indexes, and we expect to see some improvement in overall system response starting today.

The heavy workload the last few days did cause a bottleneck on the database server. We are working with Enron Net Works to accelerate the acquisition of higher-speed processors for the SAP database server.  We have started development of an archiving project and database reorganization and tuning program, which will help improve database performance in the long term.

Our operations group will take a more active role in managing the peak system workload. This will involve identification of critical jobs, improved system monitoring and the development of a more balanced system workload schedule. 

We are working on a more comprehensive communication plan to keep users and executive management aware of system performance and Financial Close scheduling. 

We understand how important system performance is to Enron's business and we will keep you informed every step of the way until this situation is resolved.