This has been a tough couple of weeks. I hope that these daily communications on new developments are helping you understand what's happening with our company.
Here's a rundown of events from last week:
We executed a commitment letter with JPMorgan and Salomon Smith Barney that will provide us with additional secured credit lines worth $1 billion. Our Northern Natural Gas Company and Transwestern Pipeline Company will support these assets. We now have received a total of $4 billion in credit lines, which we will use to pay off short-term commercial debt and maintain liquidity.
Our Board of Directors elected a new member to the Board - William Powers, Jr., the dean of The University of Texas School of Law in Austin, Texas.
- The Board also established a Special Committee, to be chaired by Dean Powers, that will conduct an in-depth review of the transactions between Enron and entities connected to related parties. The committee is authorized to take any actions it deems appropriate.
The Securities & Exchange Commission (SEC) opened up a formal investigation into related party transactions that have been the subject of media reports and the subject of the SEC's formal inquiry. As I've said before, we welcome this and look forward to working with the SEC to put this matter behind us.
Moody's lowered our credit rating one level, from Baa1 to Baa2. Standard & Poor's (S&P) lowered our credit rating one level, from BBB+ to BBB. Fitch lowered our rating from BBB+ to BBB-. All agency ratings are investment grade.
Even with what's happening with our company, we have kept running our business as usual, and here's few examples to show you that we are, indeed, doing just that:
EnronOnline did 5,866 transactions with 302 counterparties on Friday. Transaction counts remain higher than average.
EES signed a three-year fixed price agreement with Home Depot to supply power to 115 of its stores in California and 68 stores across Texas. EES also has exclusive rights to develop energy management proposals for all Home Depot facilities west of the Mississippi.
EES also signed a three-year energy management agreement with Memorial Sloan-Kettering Cancer Center's four New York City facilities.
Serious issues have been raised in the media and investment community that have put our credibility and reputation as a company in question. We're taking an introspective look at our business dealings, our core values and our organization as a whole. We're doing everything we can to deal with the issues that are affecting our company.
And that's where you come in. Look around you. Look at the excellence that you and your team represents. That's the reason we hired you - you're the best. Now, more than ever, work for Enron and especially for each other.
Thank you for your continuing support of our company and each other.