Portland West Power & Origination Project Doorstep Portland West Power & Origination Office Visit October 2 - 4, 2000

Index Topic Page Number Executive Summary 3 Personnel Involved 4 General Office Information 5 - 6 Finding 7

Executive Summary Overall, effective controls are in place. Portland commercial personnel, as well as Portland and Houston commercial support personnel have an adequate understanding of Enron processes, controls, and required protocols. Proper segregation of duties between commercial and Energy Operations departments exist. The Portland office has not provided contracts for five other “non-standard” deals, which were on October 2.

Personnel involved Doorstep Personnel: Portland Personnel interviewed: Ken Horton, RAC Maribel Mata, RAC Rebecca Phillips, RAC Shona Wilson, ENA Tracy Ngo, RAC Portland Personnel interviewed: Tim Belden - VP West Power Trading Michael Swerzbin - Northwest Term Chris Calger - ENA West Origination Smith Day - Cash - California Cara Semperger - Logistics - NW Monica Lande - Transaction Support Carla Hoffman - Staff California Chris Foster - Middle Market Greg Wolfe - Services Desk Jeff Richter - Cash - California Phil Platter - Cash - California Murray O’Neil - Volume Management Chris Stokely - Volume Management Houston Personnel interviewed: Stacy White - Risk Management J. Hunter - Confirmations Kyle Gibson - Settlements Dan Houston - Settlements Tracy Greene - Accounting Rhonda Denton - Legal

General Office Information The Portland Power Group can be broken down into two groups: West Power Trading and West Origination. Tim Belden manages the West Power Trading group. West Power is broken down into Volume Management, Middle Market, Northwest, California, Southwest, Real Time, Fundamental Analysis, and the Services Desk. The NW, California, and SW desks are further broken down into Short-Term and Long-Term. Traders are free to trade a product from any desk, but each area is headed by one expert and market maker. Portland Power deals essentially in basic commodity physical and financial products, e.g. options, swaps, forward contracts, etc. Deals are entered into EnPower in Portland, and nominations, scheduling, and logistics are handled out of Portland. Confirmations, settlements, and reporting are handled out of Houston.

General Office Information Portland Power also undertakes “non-standard” deals, e.g. energy delivery and marketing to generation facilities under profit-sharing schemes. Chris Calger heads up the West Origination effort in Portland. The group is broken down into Generation Investments, Generation Development, IOU/LDC Origination, Public Utilities, Transaction, and Structuring. Efforts are concentrated on municipalities, utilities, asset development, and emissions credits in San Francisco.

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