Once the Arcos plant in Spain is financially closed (expected in Q2 of this 
year) Eric Gonzales will be moving back to Houston to work exclusively on 
co-managing Enron's LNG markets.   We are very appreciative of Eric's efforts 
in Europe since early 1998 and look forward to continuing to work very 
closely with his LNG team in the coming years.  From this point forward Eric 
will focus his remaining time in Europe exclusively on financially closing 
Arcos.

We are therefore making the following changes immediately.   The origination 
responsibility for Italy will be moved under  Eric Shaw.  Ricardo Bortolloti 
will continue in the role as Italian Country Manager and will report to Eric 
Shaw.   Mariano Gentilini will become our Country Manager for Spain and 
Portugal and will report directly to the Enron Europe Office of the Chairman.

The Arcos Power Project is likely to create a large gas to power spread 
position and so we have asked Paul Mead to assume the added responsibility 
for our natural gas risk positions in Spain.  This position is much more 
likely to be supplied and influenced by LNG rather than Continental Gas 
markets and Paul will  work quite closely with both Enron Global Markets and 
the Continental Gas team.

Ross Sankey who has been managing our marketing efforts in Holland will also 
head a new organization that will focus on subsea interconnector and power 
transmission opportunities across Europe.   Among the prospects his team will 
pursue include projects  from Norway to the UK,  Sweden to the Continent,  
and bidding on existing French interconnector capacity.   He will report  to 
Eric Shaw for the Holland markets and to Richard Lewis for the Transmission 
responsibilities.

Finally the Continental Gas team is interacting far more with our UK gas team 
than our power teams on the Continent.  Therefore David Galagher who manages 
our Continental Gas team  will now report directly to Richard Lewis.

We have aggressive income targets for this year and anticipate that  these 
changes will create the right links to optimize our performance.  Please help 
make these changes as smooth as possible.

John Sherriff
Michael Brown