BUSINESS HIGHLIGHTS

West Power
On August 31, 2001, West Power Origination closed the sale of 100% of the membership interests in Southwest Power to Black Hills Energy Corp.  The sale to Black Hills concluded a two year strategy associated with the acquisition and expansion of the 50MW Las Vegas Cogeneration facility.   The 230MW Las Vegas II expansion project initiated in January 2000 consists of two, 2x1 systems utilizing LM 6000 PC technology in combined cycle. In May of this year, West Power Origination secured a 15-year tolling agreement with Allegheny Energy Supply Company for the entire output of the expansion project.  The Las Vegas II expansion project is currently under construction and is scheduled to go commercial in September 2002.  This transaction utilized many of Enron's technical, financial and commodity capabilities.  Congratulations to everyone who made it a success.  

Enron Freight Markets
Enron Freight Markets closed its first firm sale of transportation with Penske Logistics. Penske is under contract for the operation and U.S. distribution of Whirlpool appliances.  EFM will provide truckload capacity for Penske to serve Whirlpool.  The first lane that EFM will begin handling is from the southern California distribution center in Ontario, California to various northern California destinations.   

Enron Global Markets
Art & Fundamentals
A recent graduate of Houston's Art Institute, Tramy Nguyen joined the EGM Fundamentals team as an intern last week. For the next six months, Tramy will be applying her layout and graphic arts to improve the fundy brand seen on our website, newsletters and ad hoc reports. She'll also help support the development of our website using her html and ASP skills. Tramy moved to Houston in 1993 from her native Saigon, Vietnam, where she studied art for two years. She is an accomplished painter and graphic artist whose award winning poster design was selected for use by the Butterfly Center at Houston's Museum of Natural Science. 

EES Business Center
Enron Energy Services has one single entry point for all customer leads and service issues - The EES Business Center.  Your assistance is requested in routing all retail customer calls to this center.  The Business Center can manage general customer service requests or provide information on EES product offerings. 

The number for the EES Business Center is 800-337-7827 (800-EES-SVCS) or internally, calls can be transferred to x59390.  E-Mail address is: EESBusinessCenter@enron.co.

Thank you for taking the time to route these calls appropriately.  Your assistance is critical to Enron's customer acquisition success and to ensure our customers' satisfaction.



IN THE NEWS
"Back in the Saddle"  INTERVIEW with KENNETH LAY, ENRON - The US energy group's chairman tells Sheila McNulty of the job facing him after the sudden departure of the company's CEO.   08/30/2001 Financial Times  (c) 2001 Financial Times Limited.   All Rights Reserved
Nonetheless, Mr. Lay has decided to take more time over the appointment. "There is no big rush," he says. He himself will remain chief executive for as long as it takes to find the right person for the job. 
"The board has made it very clear that we are going to take our time. I have extended my contract through 2005. I'll stay that long if needed. I'll stay longer if needed. But we're going to take our time. We're going to make sure that we make the right choice," Mr. Lay says. "We're going to make sure that the financial community agrees that that would be the right choice. We're going to make sure that, obviously, the employees and the organization believe that is going to be the right choice." 


WELCOME
New Hires
EA  - John Boomer, Robert Haines, Kathryn Jenkinson, Laura Prothro, Jason Kuepker, Susanne Hill 


NUGGETS & NOTES

Steve Van Hooser has joined the EIM Legal Group to handle Forest Products and Steel Trading.  We are delighted to have Steve as part of our team.

EnronOnline Figures
Below are the latest figures for EnronOnline as of September 4

?	Total Life to Date Transactions > 1,400,000
?	Life to Date Notional Value of Transactions > $800 billion


Enron Wholesale Services Best Practice Tips
United Parcel Service (UPS) is Enron's Preferred Vendor for Express Deliveries
To receive a UPS Online User Guide that includes instructions for Online Registration, Shipping, 
Supply Ordering and Drop-Off locations, contact Glenn Lewis (GSS) at 713-646-7512.

In Houston, UPS supplies are available in the 1400 Smith Street mailroom.
In remote locations, call the Enron Preferred Customer Associate at 800-432-2877
or go to ups.com and log in, select supply icon and then select from supply menu.


News from the Global Flash

EES Europe Celebrates Pirelli Deal
EES Europe is celebrating another deal with an attractive brand name after clinching a three-year contract with Pirelli Cables and Systems, the world's leading energy cable manufacturer. The deal gives EES the right to match bids to supply gas and electricity to 18 manufacturing sites in Italy and the UK. EES will also assess opportunities for energy management programmes designed to increase energy efficiency at Pirelli's facilities.

Bob Manasse, Vice President Origination of EES Europe, said: "Congratulations to all those involved for securing EES another great deal which will strengthen our position in Europe and give us a valuable point of entry into the Pirelli tire organization and the recently acquired Telecom Italia."

German Gas Deal - First Municipality Transaction Signed in BEB Territory 
Congratulations are due to the Frankfurt and London-based gas teams who, in the face of tough competition from the Northern German incumbent supplier, BEB Erdgas and Erdoel (a jointly held Shell and Exxon subsidiary), succeeded in securing two gas supply agreements with the cities of Peine and Uelzen on 24th August. Securing transmission will be challenging due to the fact that BEB has the most onerous grid access terms in Germany. However, the gas team is hopeful these transactions will bring about a turning point in gaining access to customers within BEB's territory, which until Enron closed on these deals was considered to be the "heart land" of Germany. 

Enron Names New UK Coal-Hauling Freight Locomotive
On Saturday, 1st September, a ten-strong delegation from Enron's coal team traveled up to British Energy's Eggborough coal-fired power station to take part in the naming ceremony for a newly-acquired Class 66 freight locomotive, recently put into service by Enron business partner and rail freight specialist, Freightliner Heavy Haul.   Enron and Freightliner Heavy Haul signed a contract for UK coal transport in June 2000, effectively breaking the local monopoly in the rail transport of coal held by an incumbent rail freight company.  True to form, the introduction of competition has reduced rates and dramatically improved service levels.

Stuart Staley, Enron's international coal group vice-president, praised the dedication of the Freightliner train drivers and staff who have contributed to the success of the service for Enron. While Eddie Fitzsimons, managing director of Freightliner Heavy Haul Ltd noted:  'We only started running coal trains in December 2000 and we have now run more than 17,000 individual wagon journeys containing more than one million tonnes of coal, almost all of that for Enron.'

The coal team selected the name Don Raider from numerous entries received from an earlier Globalflash competition:  "The new locomotive was named Don Raider, after the river Don, a major river in South Yorkshire where a number of our customers are located," explains Tom Kearney, a director in Enron's international coal group who executed the original deal with Freightliner.  "Other "Raider Class" Freightliner Heavy Haul locomotives will be named at a later date, each bearing the name of a river which flows near to coal-fired power stations and major coal-importing ports."  

While mischievous Enron employees may think the name sounds suspiciously like a covert activity carried out by the new market entrants, we can assure you that would simply be speculation!   Congratulations again to the Coal team on securing this landmark deal.

Enron Credit Statistics
Please find following the latest figures for Enron Credit as of September 5, 2001:

*	Total Year to Date Transactions >  550

*	Year to Date Notional Value of Transactions > $9.82 billion

*	Total Life to Date Registered Users >  over 7,000 non-Enron users and 790 Enron users

		- 9% of non-Enron registered users visit www.enroncredit.com more than once per week
		- over 2,500 registered users log in to the Enron Credit website each month

*	Enron Cost of Credit (ECC) > over 22,000 readers per week view the ECC in independent publications


We are looking for great ideas for the EnTouch and the Brown Bag Lunch Series.   
Do you have terrific news that you want everyone in EWS to know about? Something interesting going on in power and gas markets? Or in industrial or global markets?  We are also looking for speakers for the Brown Bag Lunch Series. If your group is working on a special project or you have just completed a newsworthy deal, let us know.  Send your ideas to Kathie Grabstald via email or call x 3-9610.

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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