To the great and powerful Research Group:

As you may know, Moody's has recently upgraded Enron from Baa2 to Baa1.
We had been on watch for an upgrade for a while and after their intitial 
credit meeting, they still had questions primarily related to our control of 
market and credit risk.  To that end, Jeff McMahon and Tim Despain had Rick 
Buy, Bill Bradford and I meet with eight members of the Moody's team.  The 
questions centered around policy and procedure in the Wholesale businesses.  
We discussed VAR, stress testing and potential credit exposure.  To make a 
long story short, subsequent to that meeting, they reconvened their committee 
and announced the upgrade.  

I want you to know how critical your contribution was to the discussion and 
will continue to be as the bar gets raised.  I am sure that next year they 
will continue to be concerned with our risk management capabilities as well 
as extensions of our current platform - tail risk, intra day risk, 
operational risk, and enterprise wide risk.

Thank you for your efforts in supporting RAC - it has tangible benefits.

Ted

p.s. - there is still lots of interesting opportunities to extend the 
paradigm