BUSINESS HIGHLIGHTS

Weather Risk Management
The weather risk management group recently completed two deals. The first one was a four-year rainfall put that offered protection to an agricultural company from lower than normal rainfall levels. The second deal was a rainfall cap with Grubbs Construction Company. This option helps Grubbs shield their increased costs associated with above normal rainfall. Both deals were innovative and unique to these industries. Partho Ghosh was the originator for both transactions.

Enron Industrial Markets
EIM Steel closed 2 transactions with Duferco (an international steel producer having facilities in Belgium, Italy, South Africa and United States). The first transaction is a hedge against 201 with a 100,000 ton long position and 200,000 ton free calls for material already in Pennsylvania.  The second transaction provides a 20-year tolling right for 900,000 tons per year giving EIM Steel access to US Steel products in Western Pennsylvania.

This contract also puts us in the international scene as a slab buyer with a "home" for more than 600,000 tons/year allowing the book to take position of the cheapest commodity (smallest contango) having no shelf life.


IN THE NEWS
Charity gets a time at bat from Enron
By GREG HASSELL (Copyright 2001 Houston Chronicle/October 2, 2001)
When Houstonians gather at Enron Field this week, Barry Bonds' attempt to rack up 71 homers in a single season won't be the only unprecedented feat on display. 
Just above the scoreboard that will record any homers Bonds might send screaming out of the ballyard is a sign bearing the United Way logo. It looks ordinary enough, like the dozens of other ads that dot the stadium. 
But the last time the Astros played at home, the sign bore the Enron Corp. logo. Late last week Enron donated the sign to United Way, which will get the space through the 2002 season. It's the first time a naming rights sponsor of a modern U.S. stadium has donated a major sign to charity. 
According to advertisers familiar with rates at Enron Field, the sign is worth about $500,000 a year. Since Enron maintains a small logo on the sign, the actual value of the gift would be less. 
"This tells the world that, as powerful as Enron is, they put a lot of stock in what we do," said Jackie Martin, president of the United Way of the Texas Gulf Coast. "That's beyond the power of dollars. It's priceless." 


WELCOME
New Hires
EIM   - Brittany Lothe
ENA  - Carlos Braune, Tey Canacoo, James Monroe, Robert Morris, Lizzette Palmer, Syed Ahmed


NUGGETS & NOTES

CHAIRMAN'S AWARD 2001

Do you have a colleague that deserves to be recognized for their dedication and commitment to Enron's core values - Respect, Integrity, Communication, Excellence?  The 2001 Chairman's Award is your chance to put forward someone you know who really captures the spirit, philosophy and the day-to-day business practices of our company in their work, their attitude and in how they regard their colleagues. All Enron employees can nominate fellow employees at any level - from the top down or bottom up.

The nomination process is simple. Submit a completed nomination form, available on <http://home.enron.com> by Wednesday October 10, 2001. The award winner and finalists will be announced at the annual Enron Management Conference in San Antonio, Texas on November 16, 2001.


EnronOnline Figures
Below are the latest figures for EnronOnline as of October 1

?	Total Life to Date Transactions > 1,500,000
?	Life to Date Notional Value of Transactions > $841 billion


Enron Wholesale Services Best Practice Tips
United Parcel Service (UPS) to Offer In-bound Freight Services
The Enron/UPS agreement will be enhanced to include in-bound shipments into Houston and other destinations supporting Enron business activities. There will be significant additional savings by incorporating these additional volumes.  
For more information on this contract, contact Glenn Lewis (GSS) at 713-646-7512.
UPS is Enron's preferred vendor for express deliveries.


INFORMATION TOOLS YOU CAN USE

eBiz
For news you can really use, click on the eBiz link below to catch up on the latest stories from around the globe.  Latest edition:

New York & Washington , DC -- find out how our New York and DC colleagues coped during the recent attacks on their cities.
California Update  -- despite the terrorist tragedies, California continued to deal with its energy crisis - catch up on the latest in the CA energy debate.

http://home.enron.com/pubs/ebiz/issues/082401/

ETHINK - ETHINK.ENRON.COM
ethink@enron.com
eThink is a very cool online internal communication and business tool available to you and Enron employees worldwide. The three applications currently on the site include:
eSpeak - Scheduled interactive Q&A sessions hosted by Enron leaders and innovators (and sometimes external celebrities) who answer questions submitted by employees across the globe. The site crosses international boundaries by allowing pre-submission of questions for those on different time zones - or anyone who is unable to make the live event - and access to transcripts 24 hours a day after an event.
eMeet - Interactive bulletin-board like forum, open 24/7, where you can exchange information and build knowledge communities. If you submit a question, comment or new topic, you will be automatically emailed when people respond.
The ThinkBank - Creativity and collaboration clearinghouse that includes an idea vault where you can deposit your well-developed business ideas. There also is a resource library and a "Good Sense" tips and techniques section on creativity and teamwork.

Houston's ETV
Are you interested in running a segment?  Contact Courtney Votaw, Internal Communications 
X 3-9390, Questions about ETV?  Send them a note at etv@enron.com.


NEWS FROM THE GLOBAL FLASH

Enron's Cross-Selling Initiative Starts to Pay Off
A major cross-selling initiative within Enron Europe is becoming increasingly successful, as more and more customers are encouraged to broaden their relationship with the company to increase the number of commercial opportunities. 

The initiative is being co-ordinated by Bob Manasse, Vice President Origination, EES Europe, and aims to maximise business relationships, develop multiple transactions and increase revenue with a single customer.

"The co-operation of the various Enron teams involved so far has been very positive and the work we've done with Pirelli (Ed. - see our second last edition of GlobalFlash!) is a good example of what we're able to achieve with cross-selling, " said Bob. "Pirelli had an existing relationship with Enron through the metals group and as that relationship has flourished, we've been able to secure plastics trades and a three-year EES deal for energy efficiency projects, with a right-to-match supply contract in Italy and the UK."

Pirelli is now discussing further opportunities with EnronOnline and Enron Credit. Similarly, Abbey National has agreed a deal with Enron Credit and is now discussing  potential deals with EES and the weather desk. 

Other big names Enron is targeting include: Siemens (discussions with EBS, EES, Enron Credit, EnronOnline, Enron Petrochemicals and Plastics, Enron Pulp and Paper), British Airways (discussions with EBS, EES, Enron Credit, renewables team, weather desk), Ford (discussions with EES, renewables team) and Safeway (discussions with EES and weather desk).

Work is also being done with the Global Sourcing Group to improve cross-selling by leveraging the existing relationships Enron has with its suppliers. For further information on cross-selling opportunities or ideas, please contact Bob Manasse (ext 34963) or Stephanie Hess (ext 34237).

Enron closes 6 year coal management deal in the UK with British Energy Plc. 
The innovative six-year deal provides total outsourcing of Eggborough's coal supply requirements. As part of this agreement, Enron will manage all of British Energy's existing contracts with UK coal mines (6 million tonnes) as well as provide an additional 3 million tonnes of international coal supplies. The virtual assignment of British Energy's contracts to Enron gives the UK coal team total operational flexibility in the form of weekly call and put options on all UK tonnes for the duration of the agreement.  In addition to taking advantage of quality and geographical basis spreads made possible by this arrangement, it will also add significant volumes to  Enron's growing rail transportation business. Stuart Staley captured the feeling of the coal team with the words "this is a business transformer". 

Congratulations to Riaz Rizvi, John Moran, Tiffany Cochran, Paddy Thuraisingham, Robert Quick, Paul Maley, Hector Godoy, Anastasia Karabatsos and the whole coal and freight team.

Enron's Shipping Freight desk supports Enron Metals with first freight deal
In a pioneering example of cooperation between two Enron groups, Enron's Freight trading desk in London has chartered a Handysize vessel for Enron Metals in Sydney to move 25,000 tonnes of alumina from Bunbury, Australia to China over a 30 day period.  "The advantage to the Metals group is that we can move an important cargo for one of our clients without letting the competition know we're doing it," explains Max Sobol, the Enron Metals trader, based in the Sydney office.   Michael Schoenig, based on the Freight desk in London, managed the port-to-port logistics for the cargo and adds:  "We were very pleased to be able to demonstrate our expertise in this fast-growing area of Enron's business.  We'd also be glad to speak to other groups within Enron who need to move freight around the world too."

Greece Power Licence Awarded
Congratulations to our South Eastern European team! The Greek Regulatory Authority for Energy (RAE) has announced that it will grant an electricity power trading licence to Enron's Greek subsidiary Enron Power MEPE. The five-year licence, which takes effect from October 1, 2001, allows Enron to approach customers consuming more than 100GWh of electricity up to a combined total peak capacity of 350MW. 

ATEL, CINERGY and ENEL were the only other successful recipients in this first-ever round of licences to be granted to external parties. Electricity will be imported through Greece's northern borders and via the new submarine Italy/Greece interconnector when it comes online at the end of 2001.

Cefn Croes Windfarm Project Clears Local Planning Hurdles
Enron Wind has cleared the final local planning hurdle with Ceredigion County Council in relation to its plans for a ?35 million windfarm at Cefn Croes in Wales. The council's planning committee had voted in favour of the windfarm itself but had reservations about the separate application for overhead power lines to connect the development to the National Grid. Joint developers Enron Wind and the Renewable Development Company revised and resubmitted their plans, winning the approval of councillors who voted 14 - 5 in favour of the new scheme.

The final decision on both applications will be made by the Department of Trade and Industry. The Cefn Croes windfarm, 16 miles outside Aberystwyth, would have an output of 58.5 megawatts from 39 turbines, and supply around one per cent of Wales's electricity. 


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.

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