Message-ID: <20898819.1075862101680.JavaMail.evans@thyme> Date: Thu, 23 Aug 2001 23:10:45 -0700 (PDT) From: 40enron@enron.com Subject: EnTouch Newsletter Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: ENA Public Relations@ENRON X-To: En Touch Newsletter List@ENRON X-cc: X-bcc: X-Folder: \MTAYLOR5 (Non-Privileged)\Taylor, Michael E\Inbox\Entouch X-Origin: Taylor-M X-FileName: MTAYLOR5 (Non-Privileged).pst =20 United Way 2001 As of 11:00 am this morning, EWS had reached $1,257,644.44 in pledges, whic= h is 98.58% of our campaign goal of $1,276,000 and our participation rate i= s 75.12%. While yesterday was the official end of the campaign, EWS and En= ron, as a whole, remain short of our goals, so the online United Way pledgi= ng system will remain open through Friday, August 31. If you have made your contribution, THANK YOU! However, there are still ov= er 1,000 EWS employees who have yet to log on to https://hrglobal.enron.co= m =20 and indicate a decision. If you are one of these employees, please take a = few minutes to impact the Greater Houston area in a positive way through a = contribution to the United Way. Further, if you have problems accessing th= e system or don't have time, please call or e-mail Eric Thode (ext. 3-9053)= with your decision and he will log it in for you. The system will then se= nd you a confirmatory e-mail that you can check for accuracy and keep for y= our records. Below are the pledge totals and participation rates by business unit/functi= onal group: =09GROUP=09=09=09PLEDGES=09% Participation =09EA=09=09=09$214,106=0979.56%=09=09(121 employees unaccounted for) =09EBS=09=09=09$161,760=0945.20%=09=09(376 employees unaccounted for) =09EEOS=09=09=09$79,117=09=0993.60%=09=09(13 employees unaccounted for) =09EEL=09=09=09$37,377=09=0979.17%=09=09(5 employees unaccounted for) =09EGM=09=09=09$174,663=0982.53%=09=09(64 employees unaccounted for) =09EIM=09=09=09$95,246=09=0991.53%=09=09(16 employees unaccounted for) =09ENW=09=09=09$269,346=0975.28%=09=09(403 employees unaccounted for) =09EWS Bus. Analysis=09$39,743=09=09100.00%=09(COMPLETE) =09EWS Bus. Dev.=09=09$17,198=09=09100.00%=09(COMPLETE) =09EWS HR=09=09$20,869=09=0987.32%=09=09(9 employees unaccounted for) =09EWS Legal=09=09$68,928=09=0997.70%=09=09(2 employees unaccounted for) =09EWS Research=09=09$24,913=09=09100.00%=09(COMPLETE) =09EWS Treasury=09=09$17,981=09=09100.00%=09(COMPLETE) From a corporate perspective, EWS is in 2nd place in % of goal reached and = 3rd place in participation rate. Here are the other groups' totals: =09GROUP=09=09=09PLEDGES=09% Participation=09=09% of Goal =09ETS=09=09=09$301,386=0994.83%=09=09=0987.11% =09Corporate=09=09$775,390=0974.30%=09=09=0998.78% =09EES=09=09=09$463,697=0979.50%=09=09=0994.06% =09Enron-wide=09=09$2,796,721=0977.39%=09=09=0996.40% BUSINESS HIGHLIGHTS Enron Global Markets Enron's Emissions Group is a market leader in many regional and national em= ission cap and trade programs including the national SO2 market and the Hou= ston-Galveston Cap and Trade Program. The Emission group is developing int= o a business that entails Enron's core skill sets. The Emission group is d= eveloping origination, mid-marketing, and finance as well as continuing to = focus on the trading side of the business. =20 On January 1st, 2002, the Houston-Galveston Mass Emission Cap & Trade Progr= am begins in our backyard. This program is designed to reduce the emission= s in the Houston-Galveston area by 90% by the year 2007. The program incl= udes Harris county and the surrounding seven adjacent counties. Enron has = emerged early as the dominant player in this cap and trade program. Enron = has already become an active player by making the initial trades in NOx DER= Cs (Discrete Emission Reduction Credit) market. Enron has almost made nume= rous trades in the NOx ERC market. =20 Trevor Woods and Michael Taylor have recently joined the Emissions Trading = Group. The group, which includes trader John Massey, looks to become a pri= ncipal player in many regional and national emission cap and trade programs= , including San Joaquin County and NOx SIP CALL. =20 Enron Engineering and Operational Services (EEOS) ACCRO Phase III - IV =20 We are pleased to announce that final acceptance has been received by our c= lient Accroven SLR (50%Enron) from PDVSA-Gas (Venezuela's National Gas Comp= any) for the facilities built and performance tested by our Accro Project T= eam. Thus completing the final major milestone on what must be considered t= o be one of EEOS's most successful projects.=20 Although contracted as one $320MM project, the work had to be managed as fo= ur distinct jobs. The prime site, at Jose, consists of a grassroots 50,000 = bpd NGL's Fractionation Plant plus Offsite Refrigerated Storage; the latter= facilities, being contained entirely within PDVSA's existing live plant, h= ad to be built entirely under PDVSA's Hot-work Permitting system. In addit= ion, the site was under constant threat of disruptive action by very vocal = and active Unionized workers. Thanks to the negotiating skills of our Site = Manager, Tony Burke, they were shut-down only 25% as much as three adjacent= major projects .The secondary sites, at Santa Barbara and San Joaquin, con= tained two grassroots 400MMSCFD Propane Extraction Plants. Not only did the= ir remoteness cause significant logistical problems for equipment delivery,= but also both had significant labour relations problems peculiar to their = own locations. San Joaquin suffered many days of Force Majeure delay caused= by the disruptive action by several local community groups protesting lack= of work. Despite all the impediments of the local labour, logistics, and the usual c= ustoms clearance issues, the construction was essentially finished on sched= ule. Commissioning and start-up brought new challenges with erratic feedstock qu= alities testing both the design and the expertise of our start-up crews. It= is a tribute to both, that all performance tests were passed within 48 hou= rs of receiving a reasonably stable supply and the design flow rates, and t= hat the plants have remained online since, or available, with minimal hiccu= ps, generating significant income for our client. Congratulations Accro Project Team! Bob Meckna, Tony Burke, Andy Trevino, Dennis Zitterkopf, Bill Johnson and t= he rest of the team at site, in Houston, and from Teesside for achieving a = remarkable success for which all participants can be proud; not only has th= e client gotten plants that exceed performance, the team was able to bring = home double the budgeted profit. IN THE NEWS Enron All-Employee Meeting: At the All-Employee Meeting on August 16, Ken L= ay, Enron president and CEO, provided employees with a general overview of = Enron's performance to date and his expectations for the remainder of the y= ear. Lay stated that Enron has faced a number of challenges including the C= alifornia situation and Dabhol, but the company is facing and overcoming th= em. According to Lay, the Enron business model and strategy are sound and t= he exceptional employees at Enron will accelerate the company to becoming t= he "world's leading company." The All-Employee Meeting video will be posted= on the Enron home page within the next few days.=20 WELCOME New Hires EGM - Royden Loucks, Brenda Foley, Darrell Dalton, Tim O'Neal, Dana Nelson EIM - Carisa Arthur ENA - Anne Eastwood NUGGETS & NOTES Congratulations to Tracie and Dave Hill, senior specialist in HR! They are= the proud and busy parents of twins born on Tuesday, August 14 at 10:00 PM= . They had a boy, Joseph Thomas, who weighed 5 lbs. 5 oz. and a girl, Ann= alise Francis, who weighed 4 lbs. 2 oz. =20 EnronOnline Figures Below are the latest figures for EnronOnline as of August 21. ?=09Total Life to Date Transactions > 1,350,000 ?=09Life to Date Notional Value of Transactions > $ 778 billion Enron Wholesale Services Best Practice Tips Use Contingent Staffing Solutions for Best Pricing on Temporary Labor Rates for temporary clerical and administrative support are up to 10% lower= through Enron Contingent Staffing Solutions (CSS). CSS is managed by Core= staff for all of Enron's temporary clerical and administrative support staf= fing needs. Negotiations are in progress to include accounting, engineerin= g, and legal services by year-end. Agencies included in the existing contr= act include: Adecco, BestStaff Services, Brooke Staffing, Burnett Staffing,= Corbett Personnel, King Staffing, and Talent Tree. Currently, pricing and= service is established in Houston and is being implemented in Omaha. Nego= tiations for service in Portland and Seattle are in progress. Requests for temporary staffing may be made by calling the Contingent Staff= ing Solutions team, located in the Three Allen Center, 12th floor, at 713-3= 45-6899. Requests may also be made online. A link to the Contingent Staff= ing Solutions site is located at the iBuyit portal (ibuyit.enron.com) NEWS FROM THE GLOBAL FLASH EES Europe Clinches Long-Term Outsourcing Deal With Guinness EES Europe has signed a 15-year agreement to own and operate energy assets = at the Park Royal Guinness Brewery in London. The deal means EES will sourc= e gas and electricity to provide steam, compressed air, chilled water and o= ther industrial commodities to one of the largest breweries in Europe. EES = will also have responsibility for managing a series of energy reduction mea= sures at the plant, designed to improve performance and reduce costs. These= measures will include investment in new boiler, refrigeration, compressed = air and effluent treatment plant. Stuart Rexrode, Vice President of EES Europe, said: "Closing this deal was = an outstanding effort by the entire team and is another example of the type= of innovative energy partnerships we are forming in the marketplace. This = transaction, coupled with the Sainsbury's deal, has caused the industry to = start taking notice of EES, and I am confident more customers will be knock= ing on our door looking for similar structures." Congratulations to everyone on the team for their dedication! Enron signs first long-term dry bulk shipping freight origination deal with= major Japanese player Enron's shipping freight team has signed a 10-year time charter deal for a = 178,000 tonne capesize vessel with Lepta Shipping (with a performance guara= ntee from Mitsui & Co Ltd, Tokyo, Japan). The agreement has a notional valu= e of USD60 million and a mark-to-market value of USD 5 million. The new ag= reement gives Enron the option to buy the vessel in Japanese yen after the = third year and the time charter period itself can be extended by us by up t= o an additional four years, if required. The agreement takes effect from t= he latter part of 2003 when the ship itself, currently being manufactured i= n the Imabari shipyard in Japan or any similar substitute vessel, becomes a= vailable. "We are already in the process of onselling the first three year= s of our time charter above the curve," announces Pierre Aury, who heads up= Enron's dry bulk freight team. "This deal gives us a strategic long "days= " position and we now expect to close further deals as a result of our driv= e to commoditise more time charter transactions." The team is already expl= oring new time charter deals in the scarcer cape-size and handy-size vessel= market. A combined effort between the legal, tax, credit, transport suppo= rt and structuring teams was instrumental in helping to book this deal just= in time for Q2. The shipping freight team is already working on a new str= uctured deal with a major UK bank, so watch this space for future announcem= ents... Enron Credit Closes Deal with Enron's Shipping Desk On 8 August, 2001 Enron's shipping desk bought a Digital Bankruptcy Swap (D= BS) from Enron Credit in order to buy protection against a Japanese industr= ial/trading counterparty. Under the terms of the deal the shipping desk wi= ll receive pay-out from Enron Credit when this counterparty becomes insolve= nt under Japanese laws and therefore hedges the counterparty risk that the = desk holds when transacting with this Japanese counterparty. When the leve= l of the shipping desk's mark to market profit rises above a certain amount= , the desk will also have the ability to buy additional DBS protection. Si= milarly, if the desk's contract with the Japanese counterparty terminates e= arlier, the desk can sell back any unused DBS cover to Enron Credit. "We needed to increase our credit capacity with this counterparty in order = to do more deals and then realised that Enron Credit could help us," said P= ierre Aury who heads up the freight team. "Another driver was that we felt = we needed to set a foot in the DBS market in order to go up the learning cu= rve and develop shipping specific DBSs for the near future." "The hedge bet= ween these two commercial groups is another milestone in Enron's internal r= isk management. With each commercial group having to optimise its capital = at risk, the services and tools Enron Credit has on offer are an excellent = complement to our already sophisticated RAC process," commented Ted Murphy,= Head of RAC in Europe. Congratulations go to Andrew Feachem who originated the deal for Enron Cred= it and Pierre Aury. Got a Great Idea for the EnTouch? Do you have great news you want everyon= e in EWS to know about? Something interesting going on in power and gas mar= kets? Or in industrial or global markets? Send your ideas to Kathie Grabst= ald via email or call x 3-9610. LEGAL STUFF The information contained in this newsletter is confidential and proprietar= y to Enron Corp. and its subsidiaries. It is intended for internal use onl= y and s