Coal - Emissions: There is no trading activity & there are a few contract cancellations.

LNG, Freight Markets & Weather: No activity & Virtually all contracts have been canceled.

Global Markets:	Non bankrupt entities are closing positions and selling inventory. Bankrupt entities are doing nothing. Cancellations are being processed and booked.

Today is an important day for ERAC. If we get paid by our counter parties for November business, then we can pay our obligations. If not several companies will follow us into Bankruptsy.

Regards

Bj?rn Hagelmann
Director
Rac - Market Risk Management
E-Mail: bjorn.hagelmann@enron.com
Office:  + 1 713 345 7984
Trade Floor: +1 713 345 0338
Mobil:   + 1 281 451 4156


 -----Original Message-----
From: 	Hayden, Frank  
Sent:	Wednesday, December 19, 2001 17:46
To:	Buy, Rick; Port, David; Hagelmann, Bjorn
Subject:	Quick Summary

Activity on desks is dramatically scaled back.  Most of the time traders are focused on setting curves.  Mid office has the most work, booking cancellations out of commercial book into bankruptcy book. Currently it still appears as if the commercial book has more deals in it that the bankruptcy book.  Creditors with deals showing significant market-to-market gains in their favor a reluctant to book out of trades and question valuations, suggesting that going to settlement might be preferred.   Legal is deciding difference between "executable" contracts (able to negate deal) and "forward" contracts (collapse deal), with one interpretation being beneficial for EES and the other being beneficial for wholesale.   South America appears to have similar issues with Duke requesting collateral before willing to book out of transaction, suggesting high likelihood of physical settlement.

In summary, the positions being captured in value-at-risk are questionable, given slow and tedious process of cancellation/booking.  However, below is the VAR COB 12/18/01.

	Entity		VAR		Historical VAR
?	Corp		$68.9MM	$60.7MM
?	Americas	$46.5MM	$39.6MM
?	Gas		$17.6MM	$23.8MM
?	Power		$48.9MM	$49.5MM
?	So. Cone Pwr	$239K		$239K	
?	So. Cone Gas	$63K		$63K