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Date: Thu, 18 Jan 2001 15:17:00 -0800 (PST)
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BUSINESS HIGHLIGHTS

Global Risk Management Operations
Operational Risk Management was the topic of an information session held la=
st=20
week for all managers and above in ENW who support trading operations for E=
A,=20
EIM and EGM in Houston, Portland and Calgary.  Operations professionals, wh=
o=20
manage risk book reporting and analysis, confirmations, physical product=20
scheduling and cash management reaffirmed their roles in effectively=20
accessing, managing and mitigating operational risk.  This focus on=20
operational risk management will ensure the quality of EWS' earnings, and=
=20
support a platform for continuing growth across all commodities in 2001.

Steel Origination=20
Since its inception in September, the steel group has grown to over 40=20
people.  They have contacted the majority of the key industry players and=
=20
received positive feedback.  Additionally, the group has executed both=20
physical and financial trades and has 10 products posted on EnronOnline.

Steel prices are at a 20-year low, several large producers have recently=20
filed for bankruptcy protection, and capital is scarce. The industry needs=
=20
both liquidity and price risk management. At this time, Enron is the only=
=20
company offering these products. A middle-market group has recently been=20
formed, which will allow the originators to focus on longer term deals with=
=20
embedded capital. The biggest challenge is bringing the "old economy "=20
incumbents up to speed on derivatives. There may also be some credit issues=
.=20
Stay tuned for cash flow and earnings.


MANAGING DIRECTOR & VICE PRESIDENT APPOINTMENTS
Congratulations to the new Managing Directors and Vice Presidents in=20
EA/EIM/EGM.

Managing Director =01) Commercial
Phillip K. Allen, West Gas Trading   Timothy J. Detmering, Corporate=20
Development Joseph M. Deffner, Treasury & Funding=20
Timothy N. Belden, West Power Trading   William D. Duran, Generation=20
Investments Phillip R. Milnthorp, Canada Origination=20
Christopher F. Calger, West Power Origination  =20

Managing Director =01) Commercial Support
Sally W. Beck, Energy Operations Management=20

Vice President =01) Commercial  =20
Albert E. McMichael, Jr., Gas Commodity Structuring Christopher Mahoney,=20
Liquids Trading  Kevin J. McGowan, Coal
Niamh Clarke, Liquids Trading    Lloyd D. Miller, Portfolio Management  Joh=
n=20
A. Zufferli, Canada Power Trading
Derek J. Davies, Canada Origination   Per A. Sekse, Global Risk Markets =20
Rogers Herndon, East Power Trading
Mark D. Davis, Jr., East Power Trading   Mark Tawney,  Weather Trading  =20
Michael D. Grigsby, West Gas Trading=20
Paul Devries, Canada Origination              Barry L. Tycholiz, West Gas=
=20
Origination  Mark Whitt, West Gas Origination
Christopher H. Foster, West Power Trading  Frank W. Vickers, East Gas=20
Origination =20

Vice President =01) Commercial Support
Laura Scott, Canada Accounting    Richard C. Sherman, Transaction Support=
=20
Georganne M. Hodges, Trading, Origination &  Power Plant Accounting=20

Vice President =01) Specialized Technical=20
Peter C. Keohane, Canada Legal    Elizabeth A. Sager, Physical Trading =20
Pinnamaneni V. Krishnarao, Research Group  Richard B. Sanders, Litigation
Travis McCullough, Finance Origination & Mergers/Acquisitions


Weekly EnronOnline Figures
Below are figures for EnronOnline as of January 12, 2001.

* Total Life to Date Transactions   >   560,000
* Life to Date Notional Value of Transactions   >   $340 million=20


IN THE NEWS
The Energy Power & Risk Management/Risk 2000 Commodity Derivatives Rankings=
=20
have been announced and once again Enron is at the top of the list.  Our=20
rankings are:

Number 1 in the following categories:

 North American Natural Gas - Nymex Look-alike Swaps
 North American Natural Gas - Basis Swaps
 North American Natural Gas - Nymex Look-alike Options
 North American Natural Gas - Basis Options
 UK Natural Gas - Options
 UK and EU Electricity - Swaps (UK)
 UK and EU Electricity - Swaps (Europe)
 UK and EU Electricity - Options (UK)

Number 2 in the following categories:

 Gasoline - Swaps (Americas)
 North American Electricity - Swaps (North American - Eastern)
 North American Electricity - Options (North American - Eastern)
 Weather Derivatives - North American Swaps
 Weather Derivatives - North American Options

Congratulations to all of the commercial teams responsible for this great=
=20
showing!


NUGGETS & NOTES

"There is always a way, if you're committed." - Mike McConnell/President &=
=20
CEO-EGM

"We don't have any direct competitors.  It's more fun to sell when you're n=
ot=20
being shopped.  Are you with me? " - Brad Dunn, Vice President - Steel=20
Origination-EIM


WELCOME

New Hires
ENA - Bart Burk, Catalina Cardenas
EGM - Shereka Jefferson, Armando Lira

Transfers
EGM - Wayne Kimball
EIM - Kimberly Bergen, Jay Boudreaux, Cedric Burgher, Kristen Hanson, Lauri=
e=20
Lee, Douglas Parsons


GLOBAL FLASH

UK Gas Update
This week the Bacton- Zeebrugge Interconnector surprised the market by=20
switching flow direction from UK Import to Export despite European spot=20
prices being lower than UK prices.  The Interconnector's operating rules=20
allow this to happen at present. Several shippers are lobbying to have thes=
e=20
rules amended to be able to react more quickly to market forces.  This flow=
=20
direction switch coincided with the recent cold snap increasing demand=20
substantially to 430mcm which in turn has resulted in a surge in prompt UK=
=20
prices. =20

EOL activity during this period has been particularly active as we benefit=
=20
from the increased volatility in the market.=20

Enron has several fuel switching options at our Teesside installations whic=
h=20
we use to protect our positions.

Fine weather in Japan
Over the New Year, Enron Japan completed a weather transaction with BTM,=20
which acted as a broker to the deal.  The deal, whereby we bought the optio=
n,=20
involved a Jan/Feb average temperature call with a maximum payout of 500 mi=
ll=20
JPY.   The transaction acted as a trigger leading to further transactions. =
=20
While not a major deal financially, this deal is significant as it offers a=
n=20
indication that the Japanese weather market is developing and is growing in=
=20
size.  Takuro Shioda in our Tokyo office did a great job during the=20
negotiations. =20

TPS Gains ISO 14001 Accreditation
On 30th November Teesside Power Station gained accreditation to the=20
internationally recognised Environmental Management System (EMS) ISO 14001=
=20
standard.

ISO 14001 is an international standard that specifies the requirements for =
an=20
environmental management system that TPS had to meet in order to achieve=20
third-party certification. The accreditation will encourage cultural change=
=20
by establishing disciplines that ensure policy objectives are met and a=20
continual improvement in environmental performance is achieved.


LEGAL STUFF

The information contained in this newsletter is confidential and proprietar=
y=20
to Enron Corp. and its subsidiaries.  It is intended for internal use only=
=20
and should not be disclosed.