weekly report

EcoElectrica Power Plant - Marc Phillips will be participating in the EPA
conference on August 1 in San Juan PR. Marc has also compiled the Quarterly
Excess emissions Report that will be submitted to EPA today.

EPA Proposed Acute Exposure Guideline Levels (AEGLs ) - Russ Tucker has
advised the managers and directors of Safety regarding the additional 14
chemicals proposed by EPA for inclusion on the AEGL list and has requested
information from them regarding current usage of these chemicals.

US Inter America Development Bank Meeting - Henry Van participated with EES
Bruce Stram in an energy outsourcing presentation to the IAD bank and other
energy agency management in Washington. Henry presented the environmental
outlook in South America and Enron's environmental program and strategy.

Cuiaba Pipeline Brazil HSE Audit - Greg Marino led the combined Enron/Shell
safety and environmental inspection of the "ridges" section of construction
in Carceres Brazil. Greg conducted a meeting with Enron , Shell, Gas Oriente
and Cunduto (construction contractor) regarding the nee to develop and
implement an emergency evacuation plan for seriously injured personnel for
the "ridges".

Tennessee proposed air SIP changes - Gus Eghneim and Mary Schoen met with the
Tennessee Department of Environment and Conservation to raise serious
concerns over the latest draft Tennessee SIP , which cuts Enrons allocation
for NOx allowances 75% from an earlier draft. This would require a major
capital expenditure for the plants at Brownsville and Gleason to maintain
compliance.

Pipeline Safety Legislation-Jeff Keeler brought GPG's VP Pipeline Safety,
Dave Johnson, to DC to participate in negotiations in the House and Senate.
Industry has finalized and presented alternative language that can improve
the McCain legislation and hopes that this can break the impasse preventing
the bill from moving to the Senate floor. they are working in the House to
get a bi-partisan bill that would be much less onerous than the McCain bill.

MTBE Legislation - we dodged a bullet this week when the Senate Environment
Committee canceled a markup of MTBE legislation. Senators were not able to
agree on a workable approach, mainly over provisions related to the mandate
of ethanol as a replacement for MTBE. It is likely that this issue will be
considered sometime in September when Congress returns.

Illinois SIP - Mary Schoen will continue to meet with other IPPs in Illinois
over the development of the Illinois SIP. Illinois EPA has recently raised
concerns about peaking plants, so we are working to make sure our facility is
not disadvantaged in any way.

EPA New Source Review Enforcement -Jeff Keeler provided information and
analysis to ENA Downstream origination about a recent "New Source Review"
enforcement settlement reached by EPA/DOJ and BP Amoco and Koch refining
facilities. The 2 refiners agreed to pay fines and reduce emissions at
several facilities. ENA is interested in this information as insight into
what other costs or risks current and potential customers may be facing.

Canadian Power Purchase- Mary Schoen and Susan Worthen continue to work with
Jim Steffes regarding environmental due diligence on ENA Canada's proposed
power purchase agreement from coal-fired power plants in Alberta, providing
analysis of environmental regulatory factors that could impact the deal.

EES California Reporting Error -- Stacey Bolton and the California
government affairs team will be meeting with the California Energy Commission
and Center for Resource Solutions (who run the Green-E certification program)
next week to discuss the errors made in 1999 reporting on "green" products
EES offered in California. Enron will present its plan to notify customers,
present an amended report, send out new labels, and correctly register the
product.

National Credit Trading Program: Stacey Bolton spoke at the "GlobeEx"
energy conference in Las Vegas this week, advocating the need for a national
credit trading program -- a uniform platform by which suppliers can comply
w/varying renewable portfolio standards as well as provide verification for
product offerings. She received positive feedback from several companies and
environmental groups in attendance, and will continue to lead efforts to gain
momentum behind this issue.

Enron Building South Safety- Mike Terraso will meet with Bill Donovan next
week to review contractor safety plan contingencies.