Enron Mail

Subject:Newsletter: GlobalFlash!
Date:Wed, 29 Nov 2000 08:41:00 -0800 (PST)

Please see below the latest edition of GlobalFlash! Apologies for the dela=


---------------------- Forwarded by Tracy Ralston/EU/Enron on 29/11/2000=20
16:45 ---------------------------
=09From: Enron Europe General Announcement @ ECT =
24/11/2000 09:40

Please respond to Jackie Gentle/LON/ECT
To: ECT Asia Pacific, ECT Europe
cc: =20

Subject: Newsletter: GlobalFlash!


Nordic energy agreement with UPM-Kymmene
Enron Nordic Energy and UPM-Kymmene Corp. have signed a two-year portfolio=
management agreement covering UPM Kymmene's Nordic power portfolio. The=20
Mid-Market desk in the Oslo office will assist UPM in optimising its=20
portfolio of approximately 14 TWh. energydesk.com will provide UPM with the=
risk management system used in the process. In addition, the agreement open=
the door for Enron Energy Services to explore a variety of opportunities=20
within the company. The Nordic agreement is the first step towards a broade=
scope of co-operation with UPM on a European and Global basis. The total=20
contract value is estimated to be $375 million.

UPM-Kymmene's nominal electricity resources total about 3000 MW, of which=
2500 MW in Finland and about 500 MW in other countries. The group's power=
procurement totals approximately 18 TWh per year, of which about 14 TWh in=
Finland. Around 15 TWh/a is consumed by the group's own mills and the rest =
sold to the market.


The deal was led by Sami Tenngren - Nordic Mid-Market, and was supported by=
Magnus Groth - EES, Jukka Hormaluoma - energydesk.com, and Martin Rosell -=

Congratulations on a job well done to all those who worked so hard to put=
this transaction into place........Thor Lien.

Despite heavy flooding in NSW, the weather is looking up for Enron=20
Australia. Last week, the Sydney Office launched online Hong Kong weather=
derivatives and the Sydney weather node traded on EnronOnline in the US ti=
zone. With this precedent, we hope to support the takeoff of global weathe=
on EnronOnline. =20

The Coal Group in Sydney has suddenly become very popular. There is no doub=
that a recent sale to AES for the plant at Barbers Point, Hawaii is the rea=
reason. Coal purchases during year 2000 have been concluded with most majo=
producers in Indonesia and Australia. We will soon be loading our first=20
shipment from China. Deliveries to Nippon Steel in Japan are underway. Also=
a shipment to a large power utility in Japan will take place in early 2001.

Off-shore wind plans
Enron has entered into agreement to purchase the development assets of a 30=
MW offshore wind project in the UK. The Harwich project, situated in=20
Gunfleet Sands approximately eight kilometres offshore in the North Thames=
Estuary is believed to represent one of the first serious investments in th=
development of offshore wind energy in the UK.=20

Weekly EnronOnline Figures
Below are the latest figures for EnronOnline as of November 20, 2000.

* Total Life to Date Transactions < 450,000
* Life to Date Notional Value of Transactions < $253 billion


Recently we updated you on the SAP Synchronisation and Allocation project. =
The changes being made are designed to assist business units in tracking an=
controlling costs.=20

What's changing?=20

New Project Codes: =20

We will be moving from the current project tracking mechanism, Internal=20
Orders (I/O), to using WBS (Work Breakdown Structure) . These new codes=
facilitate better project reporting and are grouped hierarchically into=20
structures. These groupings are based on project organisation, phasing or=
activities and provides a project overview. The PS Module within SAP=20
provides for a common template offering some key advantages: =20

- provides consistency across projects and business units=20
- facilitates comparison between projects=20
- provides a logical grouping of code structures

This tracking mechanism will also be used for capital projects or expense=
projects that require cost tracking.=20

What about training?

To ensure your comfort with the changes listed above, training materials ar=
currently under development by the project team. Core training is schedule=
to be December 4 - December 22 and training notifications will be sent=20
shortly to those users who are affected by these changes. These=20
notifications will come via an email from European T&D and will enable you =
register for available classes.

"The name of Enron may be unfamiliar in Japan, but it should not stay that=
way for long.........Joseph Hirl, president of Enron Japan, says: "We don't=
go in and try to destroy markets - we go in and create them." Some of the=
company's potential customers and business partners may still need to be=20
persuaded of that, but Enron has a large stock of experience to reassure=20
them". Financial Times

We are pleased to report a great showing by Enron Europe people in the=20
various competitions organised as part of this year's Enron Management=20
Conference in San Antonio:

Golf: Brian Stanley was a member of the winning team=20
Tennis: Rob Saltiel won and Steve Elliott was runner up.
Road Rally: Jackie Gentle's team was third. [We beat Ken Rice in his Ferra=
and we stopped for ice-cream. Hee! Hee! ....Ed.]
Road Rally: Eric Shaw & Riccardo Bortolotti won the fastest rental=
car in the slalom section.

Everyone is strangely silent on who won (or lost) the after dinner poker ga=

Please join us in extending a warm welcome to this week's new members of=20

Andrew Davison (Global Finance), Nick Arnold (Power Trading UK), Steven Los=
(Transaction Support), Melanie Shuckard (Coal Trading), Mark Sheey (Fin Ops=
Fin Rptg), Toni Duff (Enron Broadband Trading), Marc Hammerson (Legal), Jos=
Leitao (EES Middle Market), Mustafa Hussein (Govt & Regulatory Affairs),=20
Brenda Van de Peer (Global Operations), Lorna Hyde (HR A&A), Jacob Meins=20
(European Gas Trading), Mark Leahy (EnronCredit.com)

The European Telephony Group have added a new facility to the Enron House=
Telephone System, which will give staff using mobile phones the ability to=
have their conversations recorded. This is primarily aimed at Traders who=
may need confirmation of a conversation for a transaction, which is not mad=
from an Enron House phone. To use the facility out users should dial 37373=
from their Enron Mobile, at the sound of the dialtone they should dial as i=
they would for any call from inside Enron House -- i.e. dial '9' and the=20
relevant number to talk to the client. The Telephony Group can retrieve th=
conversation on demand and replay to the trader.

Please be advised, should you miss one leg of your journey and have onward=
flight connections there is a strong possibility the airline will cancel th=
reservations, if they have not been advised accordingly. Airlines are=20
constantly monitoring for passengers who fail to make their reservation or=
who hold multiple bookings on similar routings. In order to increase their=
passenger revenue they will delete duplicate or onward bookings and sell th=
seats at a higher fare. Please advise the Implant Office of any amendments=
to your travel arrangements as soon as they are available. This is imperati=
if your changes arise during your business trip. Ayscough Travel thanks yo=
in advance for your assistance!

We would like to make an apology to all the employees who were incorrectly=
listed as London based staff in last week's GlobalFlash. Please see below=
for the correct listings:

Paul Bates - Teesside=20
Paula Bowman - Teesside
John Brodie - Teesside
Peter Burke - Teesside
Terry Bye - Teesside
Sue Caswell - Teesside
Eric Chamberlain - Teesside
Graham Taylor - Teesside
Caroline Cunliffe - Teesside=09Sarah Grimes - Teesside
=09Tim Roy - Teesside
=09Terry Waldron - Teesside
=09Trevor High - Teesside
=09Christine Hill - Teesside
=09Mike Mason - Teesside
=09Geoff Milward - Teesside
=09Richard Murray - Teesside
=09Mike Mussett - Teesside=09Colin Telfer - Teesside
=09=09Dave Shaw - Teesside
=09=09Kevin Westwood - Teesside
=09=09Judith Wong - Teesside
=09=09Gary Douthwaite - Teesside
=09=09Paul Frankland - Teesside
=09=09Hans-Mart Groen - Amsterdam
=09=09Jose Luis Novo - Madrid


Coal Trading
The liquidity in trading of the Standard European Coal Agreement has=20
increased significantly over the last 6 weeks. Many counterparties that=20
previously opted to stay on the sidelines finally chose to join the game.=
Since the contract's inception at the beginning of the year, Enron has trad=
a total of 5.3 million tons against the SECA contract, of which 3.8 million=
tons has been traded via EnronOnline since July 2000. We are 5.3 million=
tons of a total traded market of 5.8 million tons.

Principal Investments
Tridium Inc., the leading provider of Internet-based automation=20
infrastructure solutions, announced the close of a $20 million round of=20
capital funding. The funds will be used to increase Tridium=01,s sales and=
technical support offices in North America, expand its operations into Euro=
and Asia, and enhance its technology and products. kRoad Ventures, L.P. and=
Enron North America each contributed $10 million in venture capital.

Corporate Development
Allegheny Energy Supply Company, LLC, a wholly owned subsidiary of Alleghen=
Energy, Inc., announced the signing of a definitive agreement under which=
Allegheny Energy Supply will purchase three Enron natural gas-fired merchan=
generating facilities. The acquisition is expected to close in the 2nd=20
quarter of 2001.