Message-ID: <11927727.1075840200780.JavaMail.evans@thyme>
Date: Tue, 3 Aug 1999 04:49:00 -0700 (PDT)
From: maureen.mcvicker@enron.com
To: executive.committee@enron.com
Subject: =?ANSI_X3.4-1968?Q?Statements_concerning_last_week=01,s_price_spike?=
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 In Monday=01,s Executive Committee meeting we discussed the need for a com=
mon=20
statement to use in response to questions about last week=01,s power price=
=20
spikes and Enron=01,s performance.  That statement follows.  Media inquirie=
s, as=20
always, should be referred to Mark Palmer (ext. 3-4738).

=01&We are fully performing on all of our commitments. Many of the facts ar=
e=20
still being gathered.  This information will determine, in part, our=20
contractual commitments.*  Accordingly, discussion are ongoing with certain=
=20
of our counterparties to determine our obligations and the proper course of=
=20
action.  We are and will continue to be in regular contact with customers. =
=20
We have made various arrangements with our customers to address the recent=
=20
price spike including purchasing (or arranging to purchase) power for them=
=20
or, in some cases, purchasing our obligations back from them directly.

We do not publicly discuss daily or weekly financial performance of specifi=
c=20
businesses.  However, we operate our power business, as we do all other=20
commercial functions, within strict, Board-directed value at risk limits. =
=20
Our focus is on maintaining a balanced portfolio and not =01&swinging for t=
he=20
fences=018 during periods of volatility.=018



 *Many of the facts are still being gathered.  This information will=20
determine, in part, our contractual commitments.  Accordingly, discussion a=
re=20
ongoing with certain of our counterparties to determine our obligations and=
=20
the proper course of action.