EOL visit

We had a good visit with the FERC staff yesterday. Their questions primarily
focused on the business aspects of EOL (for example, how the different
business units of trading and accounting/back office interface with the
software and engineering aspects of EOL). The attorney had two outstanding
questions:

1. What regulations govern EOL or the trades done on EOL?
2. What types of internal controls are in place with regard to risk
management of Enron's gas and power trading. For example, what is the
ability of Enron to take a position that could potentially affect the
industry as a whole?

We plan to coordinate a possible call to the FERC attorney by regarding the
regulation question. In addition, Steve Kean plans to coordinate a call to
the attorney with Rick Buy (or other appropriate risk management personnel.)