Killed EOL Deals

Sally asked that I forward the detail of the "killed" EOL transactions to
both of you. We have emphasized the importance of stressing to our customers
that a deal transacted via EnronOnline is a binding/legal transaction, but we
have continued to see a few of these deals occur. In summary, we have had a
total of 33 killed transactions since inception, the majority of which have
been with Aquila (5), Koch (8), and internal trades (13). Obviously, the
ones that concern us the most are those transactions with third parties, and
most of these have been due to claimed web latency and transactions not
appearing on the customer's summary report. It is important to stress to the
Commercial team that the way to "get out of a trade" is to do an offsetting
trade or have our Legal Dept prepare a termination agreement. Please feel
free to pass my name on to your respective groups as a point of contact to
work with Legal in the case of a terminated deal.

Feel free to call me with any questions (x36557).

Sheri