Note from Sally

To all Energy Operations employees:

ENA has experienced extraordinary growth thus far in 2000. I am especially
proud of the accomplishments of Energy Operations in supporting this growth.
I wanted to express my appreciation for all the hard work and dedication that
you have demonstrated. We have done great work and I want to recognize you
for that.

Although we have done much, we have additional goals to accomplish within ENA
and Energy Operations this year. Therefore, as we go forward, I want to make
sure that you have all the necessary tools to do the best possible job, and
that any barriers that may impede your work are removed.

To help in this effort, I have asked a consulting organization -- S.J. Bashen
Corporation -- to survey our organization; to "take its pulse" if you will;
to help us understand what in our environment fosters success and where we
could improve; in essence, to assist us in acquiring the "necessary tools"
and breaking down any "barriers." SJBC is comprised of seasoned consultants
who assist organizations like ours to help on issues like this. SJBC will
meet with members of our group in a private setting where we can highlight
our successes, discuss our concerns, ask our questions, make our comments,
and the like. This collective information then is studied by SJBC with the
goal of providing us an opinion regarding our strengths and weaknesses.
Specific input will not be identified by the individual who provided that
input.

Many of you will be receiving a phone call in the near future from a SJBC
consultant. Please schedule a time to participate at your earliest
opportunity, as this effort will be a success for our group only if we
cooperate to the fullest extent. Of course, given the size of our group, it
will not be possible to meet with each of you. Therefore, if you have not
received a call from SJBC by August 15 but would like to share your thoughts
with them, please feel free to contact Cheryl Brown at 713.780.8056 and
Cheryl will be glad to include you in our survey.

Communication is one of Enron's core values. I want to stress that only
through open communication will this survey be a success. Please be candid.
Thank you.

Sally