Enron North America Corp. Back-office Systems

ENA STRENGTHS EPMI is the largest power marketer in the country, trading over 400,000,000 MWh in 1999 Enron rates “Most Innovative” by Fortune magazine four years in a row ENA’s trading and marketing expertise extends into gas, power, coal, liquids, emissions credits, pulp and paper, transportation and transmission, and numerous energy intensive products.

DEAL FLOW EnPower System Unify System Global Contract System/Legal Deal Confirmation/ Contracts 1 person* Trade Information EnPower System Electronic Trade Blotter Customer Trade Trader Credit System Credit Monitoring Trade Information Positions & P&L Reports Risk Management (Valuation/Daily P&L) 3 people* Invoicing/ Collections/ Payments Trade Information Market Data Weather Data Financial Data Scheduler 2 people* Portfolio Data Customer Data Unify System 2 people* OASIS/Tagging/Check-Out Control Area(s) Schedule Path Billing/Payments *Additional head counts

24 HOUR TRADING Hourly Trading of Commodity and Ancillary Services OASIS Transmission Scheduling, Tagging, Schedule Check-Out, and Schedule Monitoring Extensive Trading Network of Enron Affiliates in Portland, Calgary, and Houston Utilizes Extensive Network of Information with Weather, 24-Hour Monitoring of OASIS, and Active Participation in the NYPP and ECAR Regions 24-Hour Traders Managing Customer Portfolio Have Access to this Vast Network

SCHEDULING Seven-Day-a-Week Scheduling of Power Transactions Pathing, OASIS Transmission Scheduling, Tagging, Schedule Check-Out, and Schedule Optimization Experienced in Specialized ISO Scheduling Utilizes State-of-the-Art Information Technology and Telecommunications System Schedulers Currently Manage EPMI, the Largest Wholesaler of Power in North America

DEAL CLEARING Prepares Customer Confirmations, Customer Contracts, Performs Broker Check-Outs, Interfaces with Credit/Legal, and Reviews Deal Integrity EnPower System Allows for Automated Confirmation Preparation and Auto-Faxing to Expedite Customer Service Nightly Check-Out and Reconciliation of all Deals Executed Experienced in well over 150,000 Deals

RISK MANAGEMENT Calculates Daily Profit & Loss of Portfolio Reconciles New Deals and Portfolio Changes Independent Verification of Commodity, Volatility Curves Fully Automated, EnPower System System Provides Flexible Reporting Tools On-Line Reporting of Plant Supply and Generation Flows

SETTLEMENTS Daily Check-Out with Counterparties Fully Automated Unify System Reconciliation of Invoicing/Payment to General Ledger System Automated Aging of Accounts Cash Management

SUPPORT STRUCTURE SUMMARY Employee Estimate 1 6 2 3 Expense Estimate $ 125,085 $ 787,710 $ 250,170 $ 375,255 $8,086,525 $10,000,000 Function Commercial Trading 24 Hour Trading Scheduling Deal Clearing Portfolio Reporting Settlements Proprietary Systems Responsibilities Forward Trading Primary Contact for Maintenance Planning Hourly Trading; Control Area Check-Out Pathing; Scheduling; OASIS Scheduling; Tags; Reconciliation Contact Contract/Confirmation Preparation and Tracking; Point of Contact with Legal and Credit Nightly Portfolio Calculation; Positions Reporting and Ad Hoc Reporting Customer Check-Out; Invoice Preparation; Invoice Payment and Accounting; Cash Management EnPower Position and P&L System Unify Accounting and Reporting System Global Contract System

Power Volumes and % Growth