=============
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EXH061-00332

  t v

GOVERNMENT
EXHIBIT
  3987
  Crim. No. H-04-25 (S-2)


=============
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=============

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=============


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  EC3?349p0030692
EXH061-00334


=============
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=============


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EXH061-00335




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=============






	

	
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Page 6 of 203
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EC37349AO030095


EXH061-00337





=============
Page 7 of 203
=============

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EXH061-00338




=============
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=============











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Page 9 of 203
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Page 10 of 203
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EXH 061-00341




=============
Page 11 of 203
=============


  ...... ---- --

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=============
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=============

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EC37349AO030526

EXH061-00343


=============
Page 13 of 203
=============


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=============
Page 14 of 203
=============



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EXH061-00345


=============
Page 15 of 203
=============

a+~ Na1~

BOARD OF DIRECTORS' MEETING

October 9, 2001

EC37349AO030444

EXH 061-00346



=============
Page 16 of 203
=============

Non-Recurring Earnings
Third Quarter-2001

Recurring Earnings $ 521 $ 396
Non-Recurring Items:

Azurix Asset Sales a- , 310
Broadband (281)
Loss on investing Activities* (711)

Total Non-Recurring Items

($ in millions)

  Pre-tax After-tax

  (1,302)

  (310)
(183)
(462)
(955)

Anti-dilution

Total Earnings


  ($781)

  ($559)

* Pending New Power market movement

  E.P.S.

  $0.43

  (0.34)
(0.20)
(0.51)
(1.05)

  (U:11)
($0.73)

EC37349A0031614

CH061-00347


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/U.,			
Third Quarter - Recurring Earnings by	Segment
($ in millions)			
Third Quarter	!Vine	Months
2001	2000	2001	2000
Enron Transportation Services $83	$83	$293	$288
Portland Generals (~,Xo, (3)	74	122	241
Global Assets- 16	26	34	140
D ,
4'
Americas YJ4/ 646	
548	
2,567	
1,134
Retail Risk Management 43	-	(665)	-
			
Europe and Other Energy Mkts n r 67	40	265	216
Energy Service )Y _ ~ 71	27	171	79
Broadband Services (80)	(20)	(217)	(28)
Corporate & Other (67)	(111)	(206)	(170)
Interest, MI, & Income Tax (380)	(375)	(1,158)	(981)
Recurring Net Income $396 "	$ 292	$ 1,206	$919
			EC37349A0031615
XH061-00348			


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Enron Corp.
Reserves
($ millions)

Allowance for doubtful accounts	355	559	480	106	California AIR reserves at 60% 30; 80% 2Q
Credit	450	350	323	288	Reevaluated monthly
Valuation - gas and power	87	277	401	435	
EES Specific Deal Reserves	415	248	-	-	
PG&E Credit Claims	50	111	-	-	
Other specific transactions	87	98	143	58	
California and N. West political risk	21	47	47	47	
Bammel monetization reserve	-	35	35	35	
California tariff risk	-	-	319	-	Reserve used in second quarter
TVA settlement	-	-	-	253	Settled first quarter 2001 G

  9/30/01 6130/01 3131101 12/3`1100
PGE
  Sullivan plant reclamation reserve 20 20 20 20
Allowance for doubtful accounts 25 22 19 10
North America

Europe

  Credit
Global Exploration and Production
  Allowance for doubtful accounts
South America
  Credit
CALME
  Dom Rep hotel litigation & AIR reserve
Madosa sale - deferred revenue

EIM

  1,465 1,725 1748. 1,222. f~~ yy,~ ~~ J (lv~

  So e X a> G3o r Cr4rCa4 f /A-' . rri'2~ ts..
104 114 117 131 Reevaluated monthly ~jqz p1 Btu c
  t c7 . w -- 6 O
11 11 17 17

  33 Reevaluated monthly C ~xh ~ti~ l~ ~to

  Credit
Corporate
Tax reserve related to years under
  audit (a)

(a) Tax years under audit are 1996 forward.

  3 AIR written off following renegotiation of PPA
- 13 13 13 Amortization of call option

25 14 - -
  30 '17

285 285 285 285 o w"41 ,,, c~ 0Qa-

EC37349A0031616

XH061-00349


=============
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=============

Financial and Earnings Report

EC37349AO030142

:XH061-00350



=============
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=============


y'Pat,
  .

  Previous Organization

L-vu, u~ranuuuu 14%)

=XH061-00351



=============
Page 21 of 203
=============

Revised Organization
i
o C~I~b IJ~>>



EC37349AO030144

:XH 061-00352






=============
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=============

Additional disclosures

Earnings. Release

 Previously disclosed for Wholesale and Retail segments:

Revenues
Income Before Interest & Taxes (IBIT)

 New disclosures for every segment:
Revenues
Cost of sales V/
Operating Expenses
  Depreciation and Amortization
Equity in Earnings
  Other, net

Income Before Interest & Taxes (IBIT)

EC37349AO030145

:XH 061-00353


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=============

Additional Disclosures

10-Q

 Previously disclosed for every segment:

IBIT (including detailed components)
Total Assets

 New disclosures for every segment:

IBIT
Allocated Interest Cad
Allocated Taxes
Net Income




  CG

  c

Total Assets
Management's Estimate of Capital. Deployed
Return on Capital Deployed

EC37349AU030146

:XH 061-00354


=============
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=============

Recurring Earnings Per Share

  Plan

Third Quarter 2001

  Actual

EC37349A0030141

XH061-00355



=============
Page 25 of 203
=============

Recurring Earnings Per Share
Nine Months Ended September 30, 2001

  Plan

  Actual



EC37349AO030148

EXH061-00356



=============
Page 26 of 203
=============


  Third Quarter
  Estimated Recurring Net Income by Segment
  ($ in millions)
  Third Quarter Nine Months
Plan Actual Plan Actual Enron Transportation Services $31 $32 $120 $121 vI3

  Portland General (13) 48 43
  ly-,-
-
  Global Assets 10 (3) 153 (10) y S
S U((as sA 216 404 700 1,638 Americas -a); '~,
  ax ?1 . WV 0 . '

  21 (439).~Retail Risk Management (24 , and Other Energy Mkts 123 , sz 37 320 152
  Europe
  )(>tN 39 41 90 90
Energy Services

  Broadband Services (23) (50) (59) (137)
Corporate & Other 35 (73) (261) (252)
@- rj~ p,- Q_ Ca,Q ; OP ~w Recurring g Net Income l) $361 $ 396 $ 1,111 $ 1,206

  EC37349AO030149

EXH061-00357


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=============

Non-Recurring Earnings
Third Quarter X001

($ in millions)

	Pre-tax	After-tax	E.P.S.
Recurring Earnings	$ 521	$ 396	$0.43
Non-Recurring Items:			
Azurix Asset Sales	(310)	(310)	(0.34).
Broadband	(281)	(183)	(0.20)
Loss on Investing Activities*	(711)	(462)	(0.51)
Total Non-Recurring Items	(1,302)	(955)	(1.05)
Anti-dilution			(0.11)
Total Earnings	($781)	($559)	($0.73)

* Pending New Power market movement

EC37349AO030150

!XH 061-00358


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=============

Earnings Per Share
Third Quarter

  2000 2001

$(0.73)

El Recurring  Non-recurring Anti-dilution

EC37349AO030151

=XH061-00359



=============
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=============

Earnings Per share

Nine Months Ended September 30,

H 2000

  2001 11

$0.32

EC37349AO030152

:XH 061-00360


  D Recurring tNon-recurring


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=============

Third Quarter - Recurring Earnings by Segment
  ($ in millions)
  Third Quarter Nine Months
2001 2000 2001 2000
Enron Transportation Services $83 $83 $293 $288
Portland General (3) 74 122 241
Global Assets 16 26 34 140
Americas 646 548 2,567 1,134

  Retail Risk Management 43 - (665) -
Europe and Other Energy Mkts 67 40 265 216
Energy Services 71 27 171 79
Broadband Services (80) (20) (217) (28)
Corporate & Other -~ ~ ~ ~t(6) (111) (206) (170)
Interest, MI, & Income Tax (375) (1,158) (981)
Recurring Net Income 96 292 1 206 19 9
  G

  EC37349AO030153
!XH 061-00361


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=============

Balance Sheet Debt
  ($ in millions)

  2001 2000
3rd Qtr Estimated
  June YTD Activity Sept YTD Sept YTD
Opening Debt Balance $(109229) $(109229) $(89152)

  Funds Flow from Operations 1,804 461 65 288
Change in Working Capital * (800) (526) '`(1,326) 9(729)
Changes in Deposit / Margin Activity 2 342 (185) C~ X2,527) 1

Cash Flow from Operations $(13338) $(250) $(11588) $100


  ~) d
  y
40
  II~t~.Q~jZi ~~~ 14 l~nJ2 (- IC: w..


* Excluding Deposit/Margin Activity

EC37349A0030154

XH 061-00362


=============
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=============

Balance Sheet Debt
  ($ in millions)

Opening Debt Balance
  Cash Flow from Operations

Proceeds from Sales of Assets

Capital Expenditures

Equity Investments
Cash Used in Investing

June YTD

$(101229)
(1,338)

  2001
3rd Qtr
Activity

(250)

Estimated
Sept YTD
$(109229)
  (1,588)

  2000

Sept YTD
$(83152)
  100

		1j	


hW)
1 423	

224
`
~	

1, 647	

222
(1,200) 0
)	(414 0	(1,614)	(1,549)
1 383
,	82	1,465	2,275
$(19160)	$(272)	$(11432)	$(39602)

  I v

EC31349A0030155

:XH061-00363


=============
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=============

Balance Sheet Debt
  ($ in millions)

Opening Debt Balance
  Cash Flow from Operations

Cash Used in Investing

June YTD
$(109229)
  (1,338)
(1,160)

  2001
3rd Qtr
Activity

(250)
(272)

2000

Sept YTD
$(89152)
  100

(3,602)

Dividends
(increase)/Decrease in Cash on Hand
Other
  Period Activity

(256)
528

  (357)
(2,583)

$(129812)

(143)
495

  (399)
1,023
14811

.(396)
(409)

(1.3221

Period Ending Debt Balance

Funds Flow I Interest

  (124)
(294)

Estimated
Sept YTD
$(101229)
  (1,588)
(1,432)

  (2,877)

4.76 ~ 4.21

(f_67g1

1.40

EC37349AU030156

XH 061-00364


=============
Page 34 of 203
=============

Balance Sheet Debt
  ($ in millions)

2001

Sept YTD

Opening Debt Balance $(109229)

  Funds Flow from Operations 2,265
Change in Working Capital * (1,326)
Changes in Deposit I Margin Activity (2,527)

Cash Flow from Operations $(19588)

* Excluding Deposit/Margin Activity

  Full Year
Estimate
$(105229)

Revised
Plan
  $(101229)

  2,900 2,925
55 1,000)
  y 24" $1,875



U0 t".)

EC37349AO030157

=XH061-00365


=============
Page 35 of 203
=============

Balance Sheet Debt
  ($ in millions)

2001

Opening Debt Balance
Cash Flow from Operations

  Proceeds from Sales of Assets
Capital Expenditures

  Equity Investments
Cash Used in Investing

Sept YTD
$(105229)
  (1,588)

  Full Year
Estimate
$(109229)

241

Revised
Plan

$(105229)
1,875

1,647
(1,614)

(1.465)

$(19432)

  i e
  r'~ Ir!
  2,274 1,939

  (1,888) 1,310)
  J
  (1,841) ? 0,228)
$ (1,455) (1,599)

EC37349AO030158

EXH 061-00366


=============
Page 36 of 203
=============

Balance Sheet Debt
  ($ in millions)

		2001	
		Full Year	Revised
	Sept YTD	Estimate	Plan
Opening Debt Balance	$(105229)	$(109229)	$(109229)
Cash Flow from Operations	(1,588)	241	1,875
Cash Used in Investing	(1,432)	(1,455)	(1,599)
Dividends	(399)	(538)	(540)
(Increase)/Decrease in Cash on Hand	1,023	1,023	-
Other	(481)	(482)	(532)
Period Activity	(2,877)	(1,211)	(796)
			
Period Ending Debt Balance	$(139106)	(11,440	$ (11,025)
			
		0-	
Funds Flow I Interest	4.21	(4.02)	4.07
		LVI
			

EC37349AO030159

EXH 061-00367


=============
Page 37 of 203
=============

Capital Deployed
September 2001 Estimate

ETS

L Net Assets 2,677

  c t1.j s `'
Allocated Debt 2,141
Min Int., & Pref.

  Equity Capital 536


  Debt/ Total Capital



80%

  ($ in millions) ~~
Europe / Corp &
  PGE EGAS Americas Other EBS Retail; Other Total
2,550 5,738 12,399 2,144 698 1,103 (1,351) 25,958
.
t.A
1,108 1,454 6,195 308 - 439 4,759 16,404

1,442 4,284 6,204

42% 13% 50%

1,836 698 664 (6,110) 9,554

13% 0% 40% 50%

EC37349AO030160

:XH 061-00368


=============
Page 38 of 203
=============

Capital replayed
September 2001 Estimate
  ($ in millions)

Equity Capital

Net Income

Return on Equity

  Europe I Corp &
  ETS PGE EGAS Americas other _ 9-_ Retail _Other Total

536 1,442 4,284
121 43 (10)

  30%

4%

  t

6,204	1,836	698 664	(6,110)	9,554
1,199	152	(137) 90	(252)	1,206

  26% 11 % - 18% - 17%
r
  0>, L~ ~~ c`s to

  EC37349A0030161 I~ ,~/.-,~


EXH061-00369


=============
Page 39 of 203
=============

boodwill
Summary o
  (in millions)

  June 30, 2001
Reporting Units Goodwill

Portland General

Global Assets & Services

Elektro
Enron Global Power & Pipelines LLC
Ecoelectrica

Other

Industrial Markets - Pulp, Paper, & Steel

Europe (MG Metals)

Americas
Enron Energy Services

  Enron Broadband Services
Enron Wind
  Azurix-Wessex
Azurix-Other
Total

  fi-t- - o fD
  a
  Proposed
Amounts Write
Transferred Off



  583
~165 (165)
165 (a)
  846

372

  364
45
627
Q0 N
  !

  187

0 ,-97 (b)

213 (a)

1) $ 5,727

1,648

EC37349AO030162


$

(55)


  5' I-P-P
(144)-~


a Amount considered in sales occurring prior to adoption of the standard (61 2002)
(b) Evaluation ongoing
  At
-7 G) (11 -All

~dFSr~. C. At`
\n('i~i*t.'r{ l n. C~h.

U

EXH061-00370


=============
Page 40 of 203
=============

Balance Sheet Debt

Minority Interest

Preferred Stock of Subs

Shareholders Equity

Total Capital

Debt / Total Capital

r01

Total Capital
  ($ in millions)

  Dec
2000

$ 10,229

2,414

904

  11,470

Estimated
Sept
2001

$135106

2,395

903

  9,554

$25,017 $25,958


40.9% 50.5%


  ~3 J
1 '~ r

  roforma
Estimated Sale of
Dec PGE &
2001 Goodwill

$ 11,440 $8,645

2,395 2,395

903 873

  9,836 9,692

$24,573 $21,60:5


  6.6%a 40.0%

EC37349AO030163

XH061-00371


=============
Page 41 of 203
=============



Financial and Earnings Report

EC37349A0030164

=XH 061-00372



=============
Page 42 of 203
=============



Investor Relations Report

EG37349030165

EXH061-00373



=============
Page 43 of 203
=============

2001 YTD Total Return to Shareholder

(Through 1015101)

Enron

DJIA S&P 500 Energy Peers NASDAQ

EC37349AO030166

Broadband
C q~._.

  t

=XH 061-00374


  C~ -84%


=============
Page 44 of 203
=============


  Peers
Merchant Energy

2001 YTD Total Return

(Through 1015101)

Enron Kinder	Duke
Morgan	
	
	

Mirant Williams Dynegy El Paso

NRG Calpine

0

EC37349AO030167

AES



EXH061-00375



=============
Page 45 of 203
=============

rU ~

Relative Valuation
  (PIE Ratio*)

  December 31, 2000
;63 7-6
  @
50x

*Based on 2001 EPS Estimates

  October 5, 2001
24x
18x
  14x
Enron S&P 500 Peer Group

EC37349030168

XH 061-00376


  Enron S&P 500 Peer Group


=============
Page 46 of 203
=============

Largest Shareholders*

  Name
P'Uanus Capital Corporation , A - . ~,,_,~
i( Alliance Capital Management
  Putnam Investment Management
Smith Barney Asset Management
Northern Trust Global Investments
Fidelity Management & Research
Government of Singapore Investment Corp
AIM Management Group
  Goldman Sachs Asset Management
Rorer Asset Management
Rittenhouse Financial Services
Morgan Stanley Advisors
  Dresdner RCM Global Investors
American Express Financial Advisors
MFS Investment Management
Deutsche Asset Mgmt. Group Ltd.
  Credit Suisse First Boston Asset Management

Oppenheimer Funds

Shares Held

Banc of America Capital Management
*Excluding Index Funds \'t i1 s '?1-

44,000,000
35,000,000
24,500,000
16,000,000
  9,200,000
8,500,000
8,400,000
8,000,000
7,700,000
7,100,000
6,800,000
6,800,000
6,700,000
6,627,000
6,100,000
5,300,000
4,800,000
4,700,000
4,507,186



  Location
Denver

New York/Minneapolis
Boston
New York

Chicago
Boston
Singapore
Houston

New York
Philadelphia
Philadelphia
New York
San Francisco
Minneapolis
Boston
London
New York

New York

St. Louis/New York


1,900,000
700,000
277,000
300,000

240,000

EC37349AO030169

Change From
8/1101

  2,000,000
13,000,000
(4,000,000)
  1,400,000

(4,500,000)
(2,100,000)
(4,800,000)
  950,000

XH 061-00377


=============
Page 47 of 203
=============

Largest Potential Shareholders

Name


  a
  Total Equity Assets
Location (Millions)

Capital Research & Management Los Angeles $224,000
Nellington Management Boston 157,000
Dppenheimer Capital New York 24,000
J.P. Morgan Investment Management New York 106,000
Fayez Sarofim Houston 43,000
State Farm Insurance Chicago 45,000
T. Rowe Price Baltimore 85,000
Davis Funds New York 40,000
Barrow Hanley Dallas 30,000

  ~4)

Primary
Investment
  Style

Value
Value
Value
Growth
Growth
Growth
Growth
Growth
Value




EC37349AD030170

XH061-00378


=============
Page 48 of 203
=============

Analyst Recommendations

A.G. Edwards
Bank of America Montgomery Securities

Bear Stearns
Bernstein
CIBC Oppenheimer
Commerzbank Securities

CS First Boston
Dain .Rauscher Wessels

Edward Jones
First Albany
Goldman Sachs
Howard Weil
J.P. Morgan
Lehman Brothers
Merrill Lynch
Prudential Securities
Salomon Smith Barney

Sanders Morris
Simmons & Co.
U.B.S, Warburg

John Olson
Jeff Dietert
Ron Baron_e

Buy
Strong Buy
Attractive
Buy
Buy
Accumulate

Strong Buy
Strong Buy
Buy
Strong Buy
Buy
Buy
Buy
Strong Buy
Buy
Buy
Buy

Strong Buy
Attractive
Strong Buy



EC37349A0030171

Mike Heim
Will Maze
Robert Winters
Duane Grubert
Bill Hyler
Andre Meade

Curt Launer
Mark Easterbrook
Zach Wagner
Bob Christensen

  David Fleischer
Rebecca Followill
Anatol Feygin
Richard Gross
Donato Eassey
Carol Coale
  Ray Niles

XH061-00379


=============
Page 49 of 203
=============

Investor Relations
Planned Fourth Quarter Meetings*

0



Milwaukee

San Francisco
($725)

river

Los Angeles
($570)

San Diego
($85)

Kansas City

  Dallas
,ustin ($60)
($85)
  Houston

Amounts Indicates Total U.S. Equities Under Management (in Billions).

Atlanta

  A
10




  V5, A-
L A1

EC37349AO030172

urich
($60)

:XH061-00380



=============
Page 50 of 203
=============

Current Investor Concerns
0

  1A I
 Cash Flow From p

   Earnings Composition and Disclosure-1\0
 Balance sheet strength and Liquidity

  0  Progress on Asset sales --' 1_~_

   Effects of Lower Natural Gas and Power
Prices, and Lower Volatility

   Financing Vehicles and Potential Equity
Issuance Requirements

   California
 India

EC37349AO030173

EXH061-00381


=============
Page 51 of 203
=============

Enron common Stock Dividend

~  Currently $0.50 Per Common Share

 Dividend on Convertible Preferred Tied
to Common Share Dividend

5  Total Annual Cash Payment (Including
Convertible Preferred) is Approximately
$400 Million (i~o W

  No Increase Since October 1998

   Current Yield is 1.6% - Current Payout
is 23%

EC37349AO030174

XH061-00382


=============
Page 52 of 203
=============

Common Stock Dividend

Payout Ratio
3o%

  13%:
Enron S&P 500 Peer Group

EC37349AO030175

EXH061-00383



=============
Page 53 of 203
=============

Common Stock Dividend Yields

~~ ALL f
  -Le~,)0_ C~J.



  F
a

EC37349AO030176

(H061-00384

  Energy Peer Group


=============
Page 54 of 203
=============

Investor Relations Report

EC31349A0030111

=XH061-00385



=============
Page 55 of 203
=============

EXH061-00386



=============
Page 56 of 203
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gaihs an

V&E

Presentation to Truman

Goldman, Sachs & Co.
Vinson & Elkins L.L.P.

09-Oct-2001

  ~31349AD030350 -
E

EXH061-00387


=============
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=============

~aman Table of Contents
V&E
  I. Merger Market Overview

II. How Vulnerable is Truman?

Ill. Anti-Raid Preparation

Appendix A: Expanded Structural Defense Discussion

Goldman Sachs does not provide accounting, tax or legal advice. In addition, we
mutually agree that, subject to applicable law, you may disclose any aspects of any
potential transaction or structure described herein that are necessary to support any U. S.
federal income tax benefits with no limitations imposed by Goldman Sachs.

EC37349AO030359

XH061-00388


=============
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=============

EXH061-00389



=============
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=============

gaacns an

V&E

I. Merger Market Overview

EC37349A0030361

  Merger Market Overview 3

=XH061-00390


=============
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=============


  oldman Overview ~
Merger Market
  2001 YTD Highlights

V&E

  Global M&A Volume _
 Top 20 Deals  All Other Deals $3,461F?
  $3,280
a r,
d 2000 YTD
  E $2,491
0
  9
ar $1,632
  c $1,307
o $1,109
  c
c
rQ
0 21% 19% 25%


  . Interest Rate and Equity Market Performance

1750

  1500
> 1250
d
g 1000

rn
.y
  750
0

U 500

'As of

250
Sep-1991

9%
8%
7%
  a
6%

5%

  4%
Sep-1993 Sep-1995 Sep-1997 Sep-1999 Sep-2001
Monthly from Sep-1991 to Sep-2001

  X5;7

M&A Volume by Industry Sector

Health
Care
5%

Technology
11%

  13b/.
~~ Medial Entertainment
  9%
l

  S&P~500 Companies Compared to 52-Week Highs'
Trading at 100%
2%
  p at

EC37349AO030362



Merger Market Overview 4

EXH061-00391


  1996 1997 1998 1999 2000 2001 YTD





=============
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=============


9a 16, San Hostile / Unsolicited Initiatives G
V&E .
   There is a resurgence in hostile activity - not all hostile activity becomes public
 Structural and other defenses are not stopping raiders
  - Strong structural defenses do enable tactical responses

   Size and intellectual capital are no longer defenses in themselves~c C4, '&2
  r3/: .f, u .2zTr~% } (-C jr a y`7LP',
  rc t.
 Generally, only 1 out of 3 companies that are raided stay independent ( ~y
  r In y,~ r

  0 IN I C('
Global Hostile / Unsolicited Activity?

34%

Source: Thomson Financial Securities Data

Through 30-Sep-2001.
  Merger Market Overview 5

EC37349AO030363

EXH061-00392


  1988 1989 1990 1991 1992 1993 1994 1995 1996 1991 I yiD I"ZI LVVV ""''


=============
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=============

~pQa30364

EXH061-00393


=============
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=============


:XH061-00394


=============
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=============


  achs an

V&E

III. Anti-Raid Preparation

EC37349AD030370

  Anti-Raid Preparation 10

:XH 061-00395


=============
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=============

Saachs an

V&E



Potential Approaches of an Unsolicited Acquiror

  2
aJ



If y", ?1/_)~

EC37349AO030371

  Anti-Raid Preparation 11

EXH061-00396





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=============

e
  cman Review of Structural Defenses

V&E

Currently in Place

Other Possible Defenses

  Federal and tOregon Utility Regulatory Constraints - G.z
 Effective Elimination of Shareholder Ability to Act by 
Written Consent

   Advance Notice Requiremer I for Shareholder
  Proposals and Notifications yE r, f0 ~. 
r ~! 'Oregon Other Constituency Statute II-/ Q e 
C 0
   Fair Price Charter Provision

 Oregon Business Combination Statute (Comparable to
Delaware 203)

 Blank Check Preferred Stock

 Denial of Cumulative Voting

 Hostile Change of Control Provisions in Employee
Benefit Plans

  EC3734000303T2

Shareholder Rights Plan

Staggered Board

Prohibit Removal of Directors without Cause

Strengthen Cap On Size of the Board

Deny Shareholders the Right to Call Special Meetings
(only after reincorporation)

 Reincorporate

  c ,CG 7 av,~
d7, ~a









2-r.>

  Anti-Raid reparation 12
/T70FU (0'1, ,)1. 1 no,

XH061-00397


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=============

~as t Strengthening Structural Defenses =f~ -

V&E
   Shareholder Rights Plan 1, O661r;h (,c,C(




  y 14~,j.

- Can be adopted by Board on short notice
- Does not require shareholder approval
- Caesider having it "on the shelfs _>r:r;a
  (t oG', -,.ad % ' C
Limitleliminate ability for shareholders to call a special meeting
- Not possible to limit under Oregon law but can indirectly achieve goal by director removal and board size provisions
- Default provision under Delaware law

  ~u >Js 1 r'
Staggered Board - .kv
  Difficult to implement due to shareholer sensitivity
- Many peers don't have a staggered Board
- As a result of shareholders' ability to call a special meeting Truman is more vulnerable than peers - and effectively
vulnerable at all times during the year

  2
  Reincorporate in Delaware
In conjunction with PGE transaction

 Consider approving reincorporation at next annual
shareholders meeting subject to closing PGE or PUHCA
exemption

   No ability for shareholders to call special meeting under
'~ law unless specially provided for

Stay Incorporated in Oregon

 Consider two charter amendments
  - Eliminate ability of shareholders to remove directors
without cause or to increase board size
  - Staggered Board

  0 Consider staggered Board as part of reincorporation EC37349AO030373
Anti-Raid Preparation 13
  ? l ~72 4 ~ /Jai u..~ r r_
  c7rf
ot /I

XH061-00398


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=============

~ama0 Potential Acquirers of Truman

V&E l ~cIire
(US$ in millions, except per share amounts)



Company	

Equity Value'	

Enterprise Value'	Calendarized PIE
Multiples2
2002	

Debt to Cap.
Truman	$26,247	$42,510	15.6x	53.1%
Strategic Interest				
General Electric	$379,582	$577,231	23.7x	77.8%
Exxon Mobil	273,744	275,625	18.6	13.3
Royal Dutch/Shell	190,395	190,919	15.4	10.6
BP Amoco	182,641	237,914	16.0	42.4
AIG	183,466	228,998	22.9	53.3
El Paso	23,920	41,286	12.3	59.6

Possible, but Unlikely Strategic Interest				
Total	$99,706	$110,394	13.4x	32.7%
Tyco	90,502	144,555	13.7	64.1
Chevron/Texaco	91,275	104,896	16.2	30.3
ENI	50,047	60,605	10.3	31.4
E.ON	42,011	47,248	17.9	32.8

Suez 34,847 71,002 18.9 61.4

Duke	30,882	46,875	14.1	50.4
RWE	22,677	51,113	18.2	72.3
Repsol	17,382	39,753	8.9	52.8

EC37349AO030374

' Source: Latest publicly available financial statements. Equity value based on fully diluted shares outstanding and closing stock prices on October 3, 2001.
2 Source: IBES median estimates unless otherwise noted.
  Anti-Raid Preparation 14

XH061-00399


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=============


r aacns an

V&E

  o if Someone Makes an Approach
What to d


  F Board of
L Directors




No

  _37349AO030375
Anti-Raid Preparation 15

EXH061-00400




=============
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=============

an
baths

V&E

Are You Prepared?

 Most battles are won or lost before they are fought - Preparation is the key
- Identify your Team

- Know who your shareholders are
- Review your financial and strategic plan
- Continue to evaluate options that drive shareholder value
- Plan your response to an unexpected approach

 Strengthen structural defenses

- Ready Shareholders' Rights Plan viS ' v`
- Address ability to call special meeting/removal of directors
- Leave board configuration as is (no staggered board)

i

P1" s51 `9 37((

EC37349AOO3O377

  Anti-Raid Preparation 17

KH061-00401


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=============

EXH 061-00402



=============
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=============

9achs

V&E

Appendix A: Expanded Structural Defense Discussion

EC37349AO030379

Expanded Structural Defense Discussion 11

(H061-00403


=============
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=============

9a man Structural Defenses in Place
V&E
  Federal and Oregon Utility Regulatory Constraints

 Description Because of Truman's ownership of PGE, under the Public Utility Holding Company Act of
1935 (PUHCA), the Federal Power Act and Oregon law, an acquisition of Truman would
require prior approval by the Federal Energy Regulatory Commission and the Oregon Public
Utility Commission and, for many potential buyers, the Securities and Exchange
Commission. In addition, PUHCA would impose substantial restrictions on some potential
acquirers.

 Effect As long as Truman owns PGE, (1) an acquisition of Truman (more than 10% of Truman
voting stock) will be slowed considerably by the required regulatory approval process; (2)
potential acquirers already owning a U.S. gas or electric utility may have difficulty satisfying
PUHCA regulatory requirements; and (3) U.S. or foreign energy companies without a U.S.
gas or electric utility would be best situated to avoid PUHCA regulation. However, these
approval requirements would not necessarily prevent or delay a proxy fight to replace the
Truman Board as an initial step in a hostile acquisition attempt.

Effective Elimination of Shareholder Ability to Act by Action by Written Consent

 Description Prohibits actions by written consent other than by unanimous consent.

 Effect Prevents acquiror from bypassing stockholder meetings as a forum for shareholder action.

EC37349AO030380

  Expanded Structural Defense Discussion 19

XH 061-00404


=============
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=============

~e~s8 Structural Defenses in Place
(Continued)

vas

  Advance Notice for Director Nominations and Shareholder Proposals

   Description Requires advance notice before shareholder can present director nominations or proposals
at shareholder meetings. With respect to an annual meeting, shareholders notice must be
received not less than 120 days prior to an anniversary date of the proxy statement for the
previous year's annual meeting. With respect to a special meeting, shareholder's notice
must be receive not later than 10 days after the date on which the notice of the meeting was
mailed.

 Effect Prevents surprise nominations and solicitations for shareholder proposals at an annual
meeting.

Oregon "Other Constituency" Statute

 Description Statutory provision that authorizes the Board, in evaluating a potential acquisition, to
consider a range of social, legal and economic effects on employees and other
constituencies, as well as both the long-term and short-term interests of the corporation and
its shareholders, including that these interests may be best served by the continued
independence of the corporation.

 Effect May enhance the Board's ability to "just say no" to a potential acquisition or to choose among
competing bidders.

EC37349AO030381

  Expanded Structural Defense Discussion 2(

XH061-00405


=============
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=============

~ema Structural Defenses in Place
(Continued)

V&E

  Fair Price Charter Provision

   Description Any business combination with a 10% + shareholder must be approved by at least 80% of
Truman's voting stock unless (i) the transaction is approved by at least 80% of Continuing
Directors who constitute a majority of the Board (ii) certain fair price and procedural
requirements are met or (iii) the transaction occurs more than 5 years after last acquisition of
stock by the 10% + stockholder.

 Effect

Discourages two-tiered offers.

Oregon Business Combination Statute

 Description A corporation generally may riot engage in a business combination with an interested
stockholder (owner of 15% or more of Truman voting stock) unless (i) the Board approved
the transaction which resulted in the shareholder becoming an interested shareholder, (ii)
upon the consummation of such transaction, the interested shareholder owned at least 85%
of the outstanding voting stock (excluding certain insider holdings), (iii) the business
combination is subsequently approved by the Board and holders of 2/3 of disinterested
voting stock or (iv) business combination occurs more than 3 years following the date the
shareholder became an interested shareholder. (Substantially similar to Delaware General
Corporation Law 203).

 Effect Discourages hostile tender offers which bypass the Board, do not obtain a high stockholder
tender percentage and which are dependent upon quick access to the target's assets for
financing or other purposes.

EC37349AO030382

  Expanded Structural Defense Discussion 2-

H 061-00406


=============
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=============


Sa hs18 Structural Defenses in Place
(Continued)

V&E
  Blank Check Preferred Stock

   Description Authorization in Charter for Preferred Stock with terms set by Board without shareholder
action.

   Effect Gives the Board the flexibility to raise capital, issue stock to a white squire, effect a defensive
recapitalization or otherwise respond to a hostile bid.

Denial of Cumulative Voting

 Description Prohibits shareholders from cumulating their votes, which reduces the number of shares
required to obtain individual Board seats.

 Effect Prevents minority shareholders from obtaining Board seats.

Hostile Change of Control Provisions in Employee Benefit Plans

 Description Stock option plans generally provide for automatic acceleration of vesting and a cash-out in
the event of a change of control that is not approved by the Board.

 Effect May encourage a potential acquiror to negotiate with the Board rather than pursue a proxy
fight in order to preserve existing employee incentives and minimize acquisition costs.

EC37349R0030313


  Expanded Structural Defense Discussion 22

XH 061-00407


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=============

~a man Possible Additional Structural Defenses
V&E
  Shareholder Rights Plan

 Description Plan providing for a distribution of stock purchase rights to all holders of common stock,
which rights have nominal value and are not exercisable until triggered. Rights are triggered
if a potential raider acquires a significant percentage (10-20%) of the Company's voting
stock, unless the Board redeems or nullifies the rights. If triggered, the rights allow each
shareholder other than the acquiror to acquire a significant number of shares of common
stock at a substantial discount to the current market value, causing extreme dilution to the
acquiror.

 Effect Effectively prevents an acquisition of a significant block of stock without Board approval-

0 Process Can be adopted by the Board without shareholder approval.

Staggered Board

 Description Divides the Board into three classes elected for staggered three year terms, so that only one-
third of the Board is up for reelection at each annual meeting.

 Effect If coupled with director removal protection, effectively requires an acquiror to wait two years
before it can obtain a majority of the Board through proxy contests.

 Process Under Oregon law, the board could be classified without shareholder approval, but
shareholder approval of a charter amendment would be required to prohibit removal of
Board members without cause.

EC37349AO030384

  Expanded Structural Defense Discussion 2:

(H061-00408


=============
Page 78 of 203
=============

9ec"Ms8 Possible Additional Structural Defenses
(Continued)

V&E

  Prohibit Removal of Directors Without Cause

   Description Change the default provision in Oregon, which permits the shareholders to remove directors
without cause at any meeting called for that purpose (by a majority of votes cast if a quorum
is present).

 Effect Would eliminate right of shareholders to call special meeting and remove and replace the
Board and, if coupled with a staggered board, would effectively prevent an acquiror from
taking control of the Board in a single proxy contest.

   Process Would require shareholder approval of a charter amendment (by a majority of votes cast if a
quorum is present).

Strengthen Cap on Size of Board

 Description Charter amendment to limit the maximum size of the Board in a way that cannot be changed
without Board approval.

 Effect Prevents an acquiror from "packing" the Board to circumvent director removal protections.

 Process Would require shareholder approval of a charter amendment (by a majority of votes cast if a
quorum is present).

EC37349A0030385

Expanded Structural Defense Discussion 24

XH061-00409


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=============

Saacdhs an

vas

Possible Additional Structural Defenses
(Continued)

Deny Shareholders the Right to Call Special Meetings

 Description Change the current ability of 10% shareholders to force a special meeting.

 - Effect Limits any shareholder proxy activities to the annual meeting.

 Process Not possible under Oregon law, but would be the default provision under Delaware law.

Reincorporate

 Description

Merge Truman into another corporation domiciled in another jurisdiction such as Delaware.

 Effect Although Oregon may have certain advantages over Delaware from a structural defense
perspective (Oregon Other Constituency Provision), reincorporation into Delaware may
provide a better opportunity to eliminate shareholder right to call a special meeting and
possibly implement staggered board.

 Process Shareholder approval of a merger would be required (by a majority of outstanding voting
stock). If PGE then owned, would have to address PUHCA issues.

EC37349030386

Expanded Structural Defense Discussion 25

XH 061-00410


=============
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=============


I Sachs an

vas

harrys\Antiraid\07 Presentation to Truman.doc aitrueblood 6 Oct 2001 23:06 1/26

(~Jlcf Draft

Presentation to Truman

Goldman, Sachs & Co.
Vinson & Elkins L.L.P.
09-Oct-2001


  r

  C t.~ ,~ r P u~
~C7(\11nJ
r
  I r \D

` Lee..:





EC37349AO030549

EXH 061-00411


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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 2/26

Saman



  Draft

Table of Contents

I. Merger Market Overview

II. How Vulnerable is Truman?

III. Anti-Raid Preparation

- Appendix A: Expanded Structural Defense Discussion

Goldman Sachs does not provide accounting, tax or legal advice. In addition, we
mutually agree that, subject to applicable law, you may disclose any aspects of any
potential transaction or structure described herein that are necessary to support any U. S.
federal income tax benefits with no limitations imposed by Goldman Sachs. JC31349ROD30550

=XH 061-00412


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harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 1/26
  Draft

  oidman
[aths

U&

I. Merger Market Overview

EC37349A0030551

  Merger Market Overview 1

  ---
XH061-00413 -


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harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 2/26

baachs an

U&

  Draft
Merger Market Overview
2001 YTD Highlights

Global M&A Volume

   Top 20 Deals s All Other Deals
w
m
E
3 $2,49
0
.p
d
v
C
7
O
C
C
Q
t0
a
O

Interest Rate and Equity Market Performance

5%

	1750	-S&P 500		9%
m	
1500	
-110 Year US Treasur	
y	

8%
m				
y
`	1250			0
7/0
	1000			CL
rn				6% o
.	750			
y				
5%
U	500			
	250			4%

Sep-1991 Sep-1993 Sep-1995 Sep-1997 Sep-1999 Sep-2001
  Monthly from Sep-1991 to Sep-2001

  M&A.Volume by Industry Sector
_gg~111111h, Technology

Health
Care 5%

ledia/
tainment
9%

  S&P 500 Companies Compared to 52-Week Highs'
Trading at 100%
  2%

EC37349AO030552

' As of September 30.
  Merger Market Overview 2

$3,280 $3,461

:XH 061-00414



  1996 1997 1998 1999 2000 2001 YTD




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harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 3/26
  Draft
~oacman Hostile / Unsolicited Initiatives

V&E
   There is a resurgence in hostile activity - not all hostile activity becomes public

 Structural and other defenses are not stopping raiders

Strong structural defenses do enable tactical responses

 Size and Intellectual Capital are no longer defenses in themselves

 Generally, only I out of 3 companies that are raided stay independent

EC37349A0030553

  Merger Market Overview 3

KH061-00415


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harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 4/26

  Draft

Sacdhs 811

U&E

tl. How Vulnerable is Truman?

EC37349AO030554

  How Vulnerable is Truman? 4

:XH 061-00416


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harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 5/26
  Draft
lama" Is Truman Vulnerable?
  Factors Affecting Vulnerability

V&E

 Slowing M&A activity
 Larger/more hostile deals
 Use of stock in hostiles
 Large size

V

 Limited number of activists
 Attracted by undervaluation
  and underperformance
 Few real raiders


   Can support only limited
amounts of incremental debt



'3 Factors Indicating higher vulnerability

 Industry consolidation/pressure
to add Truman-type skills
 Truman has highly-attractive
asset base
 Regulatory approvals



 Recent Stock Price
underperformance relative to
Peers and S&P 500


   Concern over credibility of
earnings
Truman  Valuation in-line with Peers

12

 A few activist shareholders  No Classified Board
own stock  No rights plan
 High institutional ownership  Limited ability to call special
 Low insider ownership meeting
   Directors can be removed
without cause
  V
 Factors indicating moderate vulnerability

 Ability to unlock value quickly?
 Stock price and leverage may
limit opportunities

Factors indicating lower vulnerability

EC37349A0030555

  How Vulnerable is Truman? 5

XH 061-00417


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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 6126
  Draft
+ 'addman Truman's Relative Stock Price Performance
  Indexed Common Stock Price History Since January 1, 2000
V&E

  250%
  Truman

200

  150
a
v
X
v

100

50

0
31-Dec-1999 28-Mar-2000 22-Jun-2000 18-Sep-2000 13-Dec-2000 09-Mar-2001 05-Jun-2001 30-Aug-2001

Daily from 1-Jan-2000 to 4-Oct-2001

  41.
L1EI1

  (25.4)%
(27.0)%

EC37349AO030556

' Energy Convergence Composite includes: Aquila, Dominion, Duke, Dynegy, El Paso, Williams and Potomac Electric.
  How Vulnerable is Truman? 6

:XH 061-00418


  -Energy Convergence Index'
-S&P 500


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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 7/26

Sacks an

V&E

  Draft
Truman's PIE Multiple
Truman versus Energy Convergence Index versus S&P 500

280%

`m 250'
c
W
w
0
e 220'
fd
W O
O
4f
a 190'
:!
3

W 160'
C
s d

co ai
o > 130'
LL. C
  C
L
d
y 100'
c
O

c
0
70'
W

40'
1-Jan-2000

1 -Apr-2000 1-Jul-2000 1-Oct-2000 1-Jan-2001 1-Apr-2001 1-Jul-2001 1-Oct-2001
Daily From 11112000 to 101612001

  -Truman/Energy Convergence Index' -Truman/S&P 500
  EC37349A0030557

' Energy Convergence Composite includes: Aquila, Dominion, Duke, Dynegy, El Paso, Williams and Potomac Electric.
  How Vulnerable is Truman? 7

XH 061-00419



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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 8/26

Saehs an

vas

  Draft

Truman
Shareholder Overview

  Investor Base Profile

Momentum
3.5%

Specialty
5.5%

California Public 3,045,798 / 0.4 Activists
Employee Retirement
System

Other
0.3%

  Top Institutional Investors'
  Institution Shares Held % of Total

Janus Capital Corporation	42,817,526	5.7%
Putnam Investment Management	26,481,742	3.5%
AXA Financial, Inc.	25,204,587	3.4%
Barclays Bank	22,952,744	3.1%
Citigroup Inc.	18,519,153	2.5%
Fidelity Management & Research Co.	16,496,906	2.2%
State Street Corporation	15,560,486	2.1 %
AIM Management Group, try-	12,813,667	1.7 %
Taunus Corporation	12,303,790	1.6%
Vanguard Group	11,381,738	1.5%
Northern Trust Company	10,407,533	1.4%
MSDW & Company	10,286,390	1.4%
Goldman, Sachs & Co.	9,747,871	1.3 %
UBS Warburg Llc	7,664,912	1.0%
Rorer Asset Management	7,097,052	0.9%
Top Fifteen Total
Total Identified Institutions
Total Insiders
Total Unidentified Institutions and Reta7
Total Outstanding	249, 736,127
537,851,318
9,111,984
202,894,086
749,857,388	13.3%
71.7%
1.2%
271%
100.0%

' Source: Prism.

Shareholder Activism

  Type of
Share Holder Shares Held I % of Total Activist
Barclays 22,952,74413.1% New School
College Retirement 6,169,553/0.8 Activists
Equities Fund

  Activist Characteristics

 Activists offer shareholders resolutions; use other forms
of activism such as "no" votes. Unlikely to challenge
board control, but may endorse dissidents' slate or
agenda
 New School or passive-aggressive activists are likely to
support dissident initiatives - some may be vocal.
Unlikely to act as ring leader

EC37349AD030558

  How Vulnerable is Truman? 8

XH 061-00420





=============
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Saths an

V&

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 9/26

III. Anti-Raid Preparation

Draft

M1349A0W55%

  Anti-Raid Preparation 9

EXH 061-00421


=============
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=============

Goldman
achs

V&E

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 10126
  Draft
Potential Approaches of an Unsolicited Acquiror






  1
i

EC37349AO030560

  Anti-Raid Preparation 10

EXH 061-00422







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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 11/26
  Draft
Sachsan Review of Structural Defenses

V&E
  Currently in Place Other Possible Defenses

 Federal and Oregon Utility Regulatory Constraints

 Effective Elimination of Shareholder Ability to Act by
Written Consent

N Advance Notice Requirements for Shareholder
Proposals and Notifications

N Oregon Other Constituency Statute

e Fair Price Charter Provision

 Oregon Business Combination Statute (Comparable to
Delaware 203)

 Blank Check Preferred Stock
 Denial of Cumulative Voting

 Hostile Change of Control Provisions in Employee
Benefit Plans

 Shareholder Rights Plan
 Staggered Board

s Prohibit Removal of Directors without Cause
 Strengthen Cap On Size of the Board

 Deny Shareholders the Right to Call Special Meetings
(only after reincorporation)

 Reincorporate

EC37349A003
056r

  Anti-Raid Preparation 11

XH 061-00423


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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 12/26
  Draft
9acnsa Strengthening Structural Defenses

V&Ey_`
   Shareholder Rights Plan
  - Can be adopted by Board on short notice
  - Does not require shareholder approval ('
C) C
- Consider having it "on the shelf"

  Limit/eliminate ability for shareholders to call a special meeting f(foe
  - Not possible to limit under Oregon law but can indirectly achieve goal by direc Lremaval and board size provisions
- Default provision under Delaware law

 Staggered Board
  - Difficult to implement due to shareholder sensitivity
- [Most peers don't have a staggered Board]
  - As a result of shareholders' ability to call a special meeting Truman is more vulnerable than peers - and effectively
vulnerable at all times during the year

Reincorporate in Delaware
 In conjunction with PGE transaction

 Consider approving reincorporation at next annual
shareholders meeting subject to closing PGE or PUHCA
exemption

 No ability for shareholders to call special meeting under
law unless specially provided for

 Consider staggered Board as part of reincorporation

Stay Incorporated in Oregon

 Consider two charter amendments
  - Eliminate ability of shareholders to remove directors
without cause or to increase board size
  - Staggered Board

EC37349AO030562

Anti-Raid Preparation 12

:XH 061-00424


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=============


  harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 200123:06 13/26
  Draft
SaGisan Potential Acquirors of Truman

  Vex (US$ in millions, except per share amounts)
  Calendarized PIE
Multiples2
Company Equity Value' Enterprise Value' 2002 Debt to Cap.
  Truman $26,247 $42,510 15.6x 53.1%
Strategic Interest
  General Electric $379,582 $577,231 23.7x 77.8%
Exxon Mobil 273,744 275,625 18.6 13.3
Royal Dutch/Shell 190,395 190,919 15.4 10.6
BP Amoco 182,641 237,914 16.0 42.4
AIG 183,466 228,998 22.9 53.3
El Paso 23,920 41,286 12.3 59.6
Dynegy 13,621 18,591 15.7 45.5
Kinder Morgan 5,886 10,680 20.1 58.0
Possible, but Unlikely Strategic Interest
  Total $99,706 $110,394 13.4x 32.7%
Tyco 90,502 144,555 13.7 64.1
Chevron/Texaco 91,275 104,896 16.2 30.3
Vivendi 47,664 82,615 29.3 36.9
EN I 50,047 60,605 10.3 31.4
E.ON 42,011 47,248 17.9 32.8
Suez 34,847 71,002 18.9 61.4
Duke 30,882 46,875 14.1 50.4
RW E 22,677 51,113 18.2 72.3
Repsol 17,382 39,753 8.9 52.8
AES 6,973 28,695 8.1 75.6
' Source: Latest publicly available financial statements. Equity value based on fully diluted shares outstanding and closing stock prices on October 3, 2001. E C37349A0030563
  2 Source: IBES median estimates unless otherwise noted.
  Anti-Raid Preparation 13
=XH 061-00425


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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 14126
  Draft
~a~,man Responses to Unsolicited Offers

V&E
   Responses to Inquiries
  - Always respond that "Company policy is not to comment on rumors"

 Responses to Casual Offers

- No duty to discuss or negotiate
- Only one Company representative should be authorized to respond in any fashion
- General responses should be that the Company is very comfortable with its current structure
and strategies
- Specific response to any particular approach must be structured on a case-by-case basis;
team should confer to decide proper response

 Responses to Specific Offers

- No response other than "will call you back"

- No immediate response needed

- Call war list and assemble team

No press release or statement other than "stop-look-and-listen" and call of special Board
meeting to consider offer

- Determine response from Board after considering duties and issues for the Board

EC37349AO030564

  Anti-Raid Preparation 14

(H061-00426


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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 15126

  Draft
WPM'San Are You Prepared?

U&

 Most battles are won or lost before they are fought - Preparation is the key

 Who is the Team?

 Do you know who your shareholders are?

 Have you reviewed the financial and strategic plan?

 What value are you creating for shareholders?

 What is your response to an unexpected approach?

EC37349AO030565

  Anti-Raid Preparation 15

(H061-00427


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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 16126
  Draft
~aedt~san Preparatory Activities


V&E  Assemble team

 Conduct comprehensive due diligence

 Valuation tools prepared and accessible

 Review and evaluate structural means

 Review and evaluate financial restructuring alternatives

 Review and evaluate asset restructuring alternatives

 Review and evaluate important relationships

 Market watch

s Recommendations to management

  h
  ~~  cry
s A-,

EC37349AO030566

Anti-Raid Preparation 16

<H061-00428


=============
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=============

aacnman

V&E

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 17/26
  Draft

Appendix A: Expanded Structural Defense Discussion

EC373494003
0567

  Expanded Structural Defense Discussion 17

=XH 061-00429


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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 18/26
  Draft
~aMs Structural Defenses in Place

V&E
  Federal and Oregon Utility Regulatory Constraints

   Description Because of Truman's ownership of PGE, under the Public Utility Holding Company Act of
1935 (PUHCA), the Federal Power Act and Oregon law, an acquisition of Truman would
require prior approval by the Federal Energy Regulatory Commission and the Oregon Public
Utility Commission and, for many potential buyers, the Securities and Exchange
Commission. In addition, PUHCA would impose substantial restrictions on some potential
acquirors.

 Effect As long as Truman owns PGE, (1) an acquisition of Truman (more than 10% of Truman
voting stock) will be slowed considerably by the required regulatory approval process; (2)
potential acquirors already owning a U.S. gas or electric utility may have difficulty satisfying
PUHCA regulatory requirements; and (3) U.S. or foreign energy companies without a U.S.
gas or electric utility would be best situated to avoid PUHCA regulation. However, these
approval requirements would not necessarily prevent or delay a proxy fight to replace the
Truman Board as an initial step in a hostile acquisition attempt.

Effective Elimination of Shareholder Ability to Act by Action by Written Consent

 Description Prohibits actions by written consent other than by unanimous consent.

 Effect Prevents acquiror from bypassing stockholder meetings as a forum for shareholder action.


E

  Expanded Structural Defense Discussion 18

XH061-00430


=============
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=============

hartys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:08 19/26
  Draft
~acnman Structural Defenses in Place
  (continued)
V&E
  Advance Notice for Director Nominations and Shareholder Proposals

 Description Requires advance notice before shareholder can present director nominations or proposals
at shareholder meetings. With respect to an annual meeting, shareholder's notice must be
received not less than 120 days prior to an anniversary date of the proxy statement for the
previous year's annual meeting. With respect to a special meeting, shareholder's notice
must be receive not later than 10 days after the date on which the notice of the meeting was
mailed.

 Effect Prevents surprise nominations and solicitations for shareholder proposals at an annual
meeting.

Oregon "Other Constituency" Statute

   Description Statutory provision that authorizes the Board, in evaluating a potential acquisition, to
consider a range of social, legal and economic effects on employees and other
constituencies, as well as both the long-term and short-term interests of the corporation and
its shareholders, including that these interests may be best served by the continued
independence of the corporation.

  Effect May enhance the Board's ability to "just say no" to a potential acquisition or to choose among
competing bidders.

EC37349AO030569

  Expanded Structural Defense Discussion 19

XH061-00431


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harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 20/26

Sa san

V&E

  Draft

Structural Defenses in Place
(continued)

Fair Price Charter Provision

   Description Any business combination with a 10% + shareholder must be approved by at least 80% of
Truman's voting stock unless (i) the transaction is approved by at least 80% of Continuing
Directors who constitute a majority of the Board (ii) certain fair price and procedural
  requirements are met or (iii) the transaction occurs more than 5 years after last acquisition of
stock by 10% + stockholder.

 Effect

Discourages two-tiered offers.

Oregon Business Combination Statute

  a Description A corporation generally may not engage in a business combination with an interested
stockholder (owner of 15% or more of Truman voting stock) unless (i) the Board approved
the transaction which resulted in the shareholder becoming an interested shareholder, (ii)
upon the consummation of such transaction, the interested shareholder owned at least 85%
of the outstanding voting stock (excluding certain insider holdings), (iii) the business
combination is subsequently approved by the Board and holders of 2/3 of disinterested
voting stock or (iv) business combination occurs more than 3 years following the date the
shareholder became an interested shareholder. (Substantially similar to Delaware General
Corporation Law 203)

   Effect Discourages hostile tender offers which bypass the Board, do not obtain a high stockholder
tender percentage and which are dependent upon quick access to the target's assets for
financing or other purposes.

EC313494034570

  Expanded Structural Defense Discussion 20

:XH 061-00432


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=============

harrysvlntiraid107 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 21/26
  Draft
alman Structural Defenses in Place
  (continued)
V&E
  Blank Check Preferred Stock

   Description Authorization in Charter for Preferred Stock with terms set by Board without shareholder
action.

   Effect Gives the Board the flexibility in raising capital, issue stock to a white squire, effect a
defensive recapitalization or otherwise respond to a hostile bid.

Denial of Cumulative Voting

 Description Prohibits shareholders from cumulating their votes, which reduces the number of shares
required to obtain individual Board seats.

 Effect Prevents minority shareholders from obtaining Board seats.

Hostile Change of Control Provisions in Employee Benefit Plans

 Description Stock option plans generally provide for automatic acceleration of vesting and a cash-out in
the event of a change of control that is not approved by the Board.

 Effect May encourage a potential acquiror to negotiate with the Board rather than pursue a proxy
fight in order to preserve existing employee incentives and minimize acquisition costs.

EC37349AO030571

  Expanded Structural Defense Discussion 21

KH061-00433


=============
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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 22/26
  Draft
Sacnsan Other Possible Additional Structural Defenses

V&E
  Shareholder Rights Plan

   Description Plan providing for a distribution of stock purchase rights to all holders of common stock,
which rights have nominal value and are not exercisable until triggered. Rights are triggered
if a potential raider acquires a significant percentage (10-20%) of the Company's voting
stock, unless the Board redeems or nullifies the rights. If triggered, the rights allow each
shareholder other than the acquiror to acquire a significant number of shares of common
stock at a substantial discount to the current market value, causing extreme dilution to the
acquiror.

 Effect Effectively prevents an acquisition of a significant block of stock without Board approval.

 Process Can be adopted by the Board without shareholder approval.

Staggered Board

 Description Divides the Board into three classes elected for staggered three year terms, so that only one-
third of the Board is up for reelection at each annual meeting.

 Effect If coupled with director removal protection, effectively requires an acquiror to wait two years
before it can obtain a majority of the Board through proxy contests.

s Process Under Oregon law, the board could be classified without shareholder approval, but
shareholder approval of a charter amendment would be required to prohibit removal of
Board members without cause.

EC37349AO030572

  Expanded Structural Defense Discussion 22

KH061-00434


=============
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=============

harrys\Antiraid\07 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 23/26
  Draft
~a aiman Other Possible Additional Structural Defenses
  (Continued)

vas

  Prohibit Removal of Directors Without Cause

   Description Change the default provision in Oregon, which permits the shareholders to remove directors
without cause at any meeting called for that purpose (by a majority of votes cast if a quorum
is present).

 Effect Would eliminate right of shareholders to call special meeting and remove and replace the
Board and, if coupled with a staggered board, would effectively prevent an acquiror from
taking control of the Board in a single proxy contest.

 Process Would require shareholder approval of a charter amendment (by a majority of votes cast if a
quorum is present).

Strengthen Cap on Size of Board

 Description Charter amendment to limit the maximum size of the Board in a way that cannot be changed
without Board approval.

 Effect Prevents an acquiror from "packing" the Board to circumvent director removal protections.

 Process Would require shareholder approval of a charter amendment (by a majority of votes cast if a
quorum is present).

EC37349AO030573

  Expanded Structural Defense Discussion 23

XH061-00435


=============
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=============

harrysWntiraid107 Presentation to Truman.doc altrueblood 6 Oct 2001 23:06 24126
  Draft
~o jInan Other Possible Additional Structural Defenses a Is
  (Continued)

V&E

Deny Shareholders the Right to Call Special Meetings

 Description Change the current ability of 10% shareholders to force a special meeting.

 Effect Limits any shareholder proxy activities to the annual meeting.

 Process Not possible under Oregon law, but would be the default provision under Delaware law.

Reincorporate

 Description

Merge Truman into another corporation domiciled in another jurisdiction such as Delaware.

 Effect Although Oregon may have certain advantages over Delaware from a structural defense
perspective (Oregon Other Constituency Provision), reincorporation into Delaware may
provide a better opportunity to eliminate shareholder right to call a special meeting and
possibly implement staggered board.

 Process Shareholder approval of a merger would be required (by a majority of outstanding voting
stock). If PGE then owned, would have to address PUHCA issues.

EC37349AO030574

  Expanded Structural Defense Discussion 24

XH 061-00436


=============
Page 106 of 203
=============


  10 G
  (,.t:


  f17 "

  :

Enron Energy Services

EC37349AO030445

EXH 061-00437



=============
Page 107 of 203
=============

~Vkzk

Financial Highlights

($ in Millions)

  Year to Date Total Year
Retail Segment Reported 2001E 2000 2001E 2000
Earnings Before Interest & Taxes 171 79 46 111
Net Income 90 7~ 127 85

  rr~ ro v~~ r4 ivhr e' (2
  D
Cash Flow from Operations (102) (257) x(39) (350)

Capital Deployed Q 1,103 734 1,097 871
Equity Deployed 664 440 658 523
Return on Equity 18% 11% 19% 16%


  ;
S d } i_ id
  ~GLJ
J ti '~ s ~ck: GCj/

  * Excludes Non-recurring EBIT of $62 MM


  1Lf en.



  t a Y / r^ C'l 1`
F F,.





EC37349AO030446

EXH061-00438


=============
Page 108 of 203
=============

Capital Deployed
  ($ in Millions)

Accounts Receivable
Accounts Payable

Other Working Capital, Net
Price Risk Management, Net
PP&E, Net

Investments
Other

  Total Capital Deployed

EC37349AO030447

Year to	Date	Total Year
2001E	2000	2001E	2000
301	272	301	304
(132)	(125)	(132)	(161)
44	111	44	83
399	185	461	229
158	127	167	152
100	3	92	104
233	161	164	160
1,103	734	1,097	871
	
1		fy
S
hY		
	

:XH061-00439


=============
Page 109 of 203
=============


  jlFl~ ; Qua rte rl
  Y

  Total Contract Value -
(Billions)
  , k'`. $30
j
  25.4
011,
  s~ J )

  tit '$18.6 $6.8
t
  $5.5
$13.1

$7.2

$5.9

1 Q01 2Q01 3QO1 E 4Q01 E


2001
Plan



Results

I Q01 2Q01 3QO1 E 4Q01 E

$225

2001
Plan


  
~' F o~ 1 17

EC37349AO030448

=XH 061-00440



=============
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=============



Deregulation Status - U.S. Power

4 Pace of Deregulation is
Uneven
   Planned Openings in 2001-
2003 Adequate to Meet Near-
Term Goals




  S jl

  Restructuring Legislation/Order Enacted
Restructuring Implementation Delayed
-Commission and/or Legislative Investigation

1 (~ No Significant Activity

  Restructuring Status as of 10/01
01,

 California Crisis Has
Increased. ency in
Marketplace and Reduced
  Acquisition Cost
   Continued Deregulation is
Important to Long-Term
Strategy

 $ Market Open = $56.1 Billion
 % Market Open = 26%
 Total Market Size = $219.0 Billion



  n1q.1

  "/4-11 "' 4`7
I~-L





EC37349AO030449

:XH 061-00441



=============
Page 111 of 203
=============

Deregulation Status - U.S. Gas

  Restructuring Varies Greatly
by Customer Class and by
MA Utility - Industrial Access
Universal

   Consumer Response has
Varied Greatly-
   Lack of Urgencyfin he
Market and With Regulators
 Gas Needs to Become a
  Much Larger Product for EES

  Restructuring Legislation/Order Enacted
Restructuring Implementation Delayed
Commission and/or Legislative Investigation

  ] No Significant Activity

Restructuring Status as of 10/01

 $ Market Open = $31.0 Billion
 %Market Open =51%
 Total Market Size = $61.0 Billion

  EC37349A0030450

:XH 061-00442



=============
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=============

Deregulation Status -Canada Power

   Alberta Retail Market Opened
January 2001
   Ontario Market Expected to Open
May 2002
   Ontario is the Majority of the
Value Proposition
  -Most Pop1ulous and Industrial
Province

-Comparable to Energy
Intensity of Northeast U.S.

-Peak Load of 26,000 MW
-$8 Billion in Annual Spend

 Restructuring Legislation/Order Enacted
Restructuring Implementation Delayed

Commission and/or Legislative Investigation

[_I No Significant Activity

Restructuring Status as of 10/01

 $ Market Open = $1.3 Billion
 % Market Open 7%

 Total Market Size = $19.0 Billion



-XH 061-00443





=============
Page 113 of 203
=============

Deregulation Status - Canada Gas



 Ontario - Open Access has
been Available Since 1985

 British Columbia Market
Expected to Open November
2002

 Actively Signing Gas
Contracts in Alberta and
Ontario

  Restructuring Legislation/Order Enacted
Restructuring Implementation Delayed
Commission and/or Legislative Investigation

  No Significant Activity

Restructuring Status as of 10/01

 $ Market Open = $7.0 Billion
 % Market Open = 70%

 Total Market Size = $10 Billion

EC37349AO030452

=XH 061-00444



=============
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=============

Deregulation Status - Europe Power

I ee_

   UK and Scandinavian Power
Markets Among the Most
Competitive in the World
Continental Governments Continue
'
  e to Thwart EU Electricity Directive ~ ,
Europe is Becoming a Series of
  . ~~.~ Small Regional Markets
 Few, if any, "Pan- -

  2
  Likely to L d with the nron Direct
Business Model as EES Enters New
3 Markets on the continent

  Fully Liberalised
Partially Liberalised
Significant Barriers
[~ ELI Directive Not Implemented

Restructuring Status as of 10/01

 $ Market Open = $55.2 Billion
 % Market Open = 33%
 Total Market Size = $167.0 Billion

EC37349AO030453

=XH 061-00445


=============
Page 115 of 203
=============



Deregulation Status - Europe Gas

  Fully Liberalised
Partially Liberalised
Significant Barriers
[] EU Directive Not Implemented

Restructuring Status as of 10/01

 UK Gas Market Best in Europe

 EU Will Not Adopt a New Gas
Directive Before 2002

 Continental Gas Incumbents
Strongly Defending their Positions

-'$ Market Open = $21.2 Billion
 % Market Open = 30%
 Total Market Size = $70.5 Billion

EC37349AD030454

=XH 061-00446



=============
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=============


Evolving Business Model

"WAS"

 Limited Market

 Very Long Sales Cycle I
High Acquisition Costs

 Not Acquiring the
"Bundle" Anyway

  Highly Customized / Not
Scalable

 Challenging Executions

  1 fief,.i- Llk~

  "is
i De



   Easily Transferable Across Market: Size
and Geography
   Component Assembly Provides the
"Illusion" of Customization
   Bundle or Unbundle Components: Driven
by Segment and Profitability
  'S
   Shorter 1~ ~aues Cycle'/ Lower Acquisition
Costs

 Standardized Contracts and Components
Ensure High Quality Execution and
Scalability
 Easily Tailor Product, Acquisition and
Maintenance Model to Channel I Customer


  ~' EC37349AO030455

=XH 061-00447


=============
Page 117 of 203
=============

Av" ('

  Product-Based Business Process

  c

 _Defines Components,
Service Levels and--
Pricing
 Manages-Risk,
Logistics and Cost
 Services Customers
 Ensures Quality
 Accountable for
Execution, Delivery
and Maintenance
Model


  Products
  Power
  Natural Gas
   Tariff Commodity
DSM
  Facility Services
   Construction Services

 Bundles Components Proactively into
Value-Added Products
 Designs Products to Ensure Suitability
for Customer and Sales Organization
 R&D Point
 Drives Scale: Ensures Sales Force is
Selling Deliverable Products

 Ensures Quality and Leverages Good
Ideas Across the Entire Sales
Organization Quickly

 Co-Owns with Sales: Acquisition Model

 Define Markets
 Target Customers
 Originate Business
Create and Manage
Sales Channels

 Co-Owns with
Products:
Acquisition Model

Goal: Increased Customer Satisfaction, High--Quality-Product,
Scalable Delver_y_Platform.and__Gr.-eater Profitability



EC37349AO030456

=XH 061-00448



=============
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=============

Large Consumer Business - U.S.

 Annual Energy Spend >$'10MM
 High Packaging 0 A (o mm-
 National Footprint


  C




 EnronSales Force
 Dedicated Service Manager

YTD Results
Transactions Gross Margin
  (Millions)
  $172

Q

:XH 061-00449


  $83

  EC37349AO030457


  00 01
Manufacturing



=============
Page 119 of 203
=============

fiat

Portfolio Origination - U.S.

 Upsell Engine
 Mines the Existing Customer Portfolio for Value-Added Transactions
'Old -

  STAF
  HOTELS & SESO


[A.F, IINNC

  YTD Results
Transactions Gross Margin
  (Millions)
  $2--~ $72
17

  1 $5
00 01 00 01
Commercial / Manufacturing

  vie

EC37349AO030458

:XH061-00450







=============
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=============


  U.S.
Small Consumer Business .

 Annual Energy Spend -<$10MM J Commissioned Sales Force}~~?
 Highly Standardized - J  Call Center Support
  p~ r
 Regional YTD Results


  Transactions Gross Margin
  (Millions)
  12 031 ' $20 )
8,471' $149
1,803 $36
1,164 $30
  6
00 01 00 01


  ~~ East
~~ N West


  d

  a

3,009

$172

Channels


  ~.VlJ+1
$13 6,439,E $ 1'6

Telesales Agent

Direct

  -~
064,Y1

  n
4

  Transactions
Gross Margin
  (Millions)

EC37349AO030459



  t

	
	
	
	
	


EXH 061-00451


=============
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=============

Enron Direct - U.S.
Agent-Based Business Metrics

Agents at
Month End
  f `"1

460

  June July Aug Sept

=XH 061-00452



Number of Deals
Closed by Month

YTD = 6,439

  i
M1
  t

  1.587

290

  17
June July Aug Sept



Iti1 i 5 5 ~ ~-, l_-k~ t7e

  14 LC,

Gross Margin
by Month
  (Millions)

  $11.3
YTD=$16MM

  5~~1
EC37349AO030460

  $3.9

  Y a` g
$0.1
June July Aug Sept>~ '3



=============
Page 122 of 203
=============

Large Consumer Business - Europe

 Annual Energy Spend >$10MM
 High Packaging
 National Footprint


  N
G1JI1ESS


 Enron Sales Force-.~~ ~..)~
Dedicated Service Manager

  YTD Results
Transactions Gross Margin
  (Millions)
  4j $7
1

  $20.4 ,
2.5

  00 01 00 01
Commercial / Manufacturing

  EC37349AO030461


=XH 061-00453




=============
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=============

Small Consumer Business - Europe

Channels

   Annual Energy Spend <$10MM  Commissioned Sales Force
 Highly Standardized  Call Center Support
   Regional
  YTD Results


  Netherlands Spain S UK

  228,380

40

$2.2

$87.9

  Transactions
Gross Margin
  (Millions)

EC37349AO030462

=XH 061-00454



  Agent


  Direct


=============
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=============

Small Consumer
   Annual Energy Spend <$10MM
 Highly Standardized
   Regional

Business - Canada
   Commissioned Sales Force
 Call Center Support

YTD Results

Transactions

  161
17

Gross Margin
  (Millions)

  $2.85

Channels

144 $2.75

17


  Ontario ( oo c
/ Alberta

  Transactions
Gross Margin
  (Millions)
  EC37349AO030463

=XH061-00455


  00 01


  Direct


  00 01



=============
Page 125 of 203
=============

Global Product Mix
Percent of Gross Margin

  Third Quarter Fourth Quarter (E)
8% 8%

7%

5%

  7%


  J
r

7%

13%

5%

9'



62%

  1 ,1


  J  Power DSM qO 3 Natural Gas  Facility Services

  Tariff 3' e-  Construction Services
~f !r-

EC37349AO030464


EXH 061-00456




=============
Page 126 of 203
=============


O Services
Y "41

 Client Management  Billing
 Contract Compliance  Customer Enrollment and Set-up

 Customer Issues Management
 Call Center Management

Customers
(ODDS)

 Ensures Customer Satisfaction

 Manages Maintenance Costs

  Customer Satisfaction._.

194

170		
_		Sm2~1
3	1 66	
5
1		
		
		2 0
20	20	
		
Q101	Q201	Q301


   EES U.S. EFS EES Europe

4.30

i

4.19

4.05 4.14

  2000 Average
   Q2 2001 Average

EC37349AO030465

:XH 061-00457


  228,000

  Overall Identify Follow-up Executive
Solutions Support



=============
Page 127 of 203
=============

Jr/
Energy Asset Management
  rp"
 Products: DSM, Load  Pricing, Delivery, Execution and Verification
Curtailment, Distributed  Performance Measurement
  Generation, Facility Services  Syndication and Sourcing

227

164

EAM Project Status
($ in Millions) 305
264

  194 188

173
121


1-,-w
3/31/01
  NPV Capital
Savings

165

  124

  6/30/01
NPV Capital
Savings


269
189

  9130101
NPV Capital
Savings


  Complete In Progress

EAM, Facility Services and
Construction Services
  s
'.I
  Facilities I -Sq. Feet
(Billions)
In 1~ 1;
  40,000 4
30,000 3
20,000 2
10,000 1

  0 0
1999 2000 9130101


  Facilities 4 Square Feet
(Billions)

EC37349AO030466

=XH061-00458




=============
Page 128 of 203
=============


  Enron Facility Services

 Engineering and Construction  Facility Management - f`
  s  HVAC Operations and  HVAC Service Franchising
  fit...
Maintenance
  u

YTD Gross Margin
(Millions)
  $69.7
$64.1 E

  $18.3
$21.5

 Construction Service  EBSI LINC



EC37349AO030467

:XH061-00459


  2000 2001


=============
Page 129 of 203
=============

L
Risk Management , ,



 Commodity Risk Management Services

-- Power

-- Gas

-- Tariff

 Logistics
 Back-Office

 Risk Analysis

 Deal Capture and Validation

EC37349A0030468

XH061-00460


=============
Page 130 of 203
=============

Cost Structure

Operating Expenditures
  ($ in Millions) a
750 F-5

523

Operating Expenditures /
Gross Margin

128%

99%

81%



67%

291


  1999 2000 2001E 2002E

1999 2000 2001E 2002E

 U.S.  Europe Canada
EFS / TNPC

EC37349AO030469


EXH 061-00461




=============
Page 131 of 203
=============


  Closing Remarks
  Q
 Clean-up "Legacy" Issues

  - "Re-tooling Plane In Flight"

 Reducing Capital Intensity'
  10,- Qk"74,
- Lease for DSM - e.r

  - Clean-up Accounts Receivable

 Business Model Implemented: Working
 Reducing Costs

 Margin Recognition at the Offer and Eliminated the Sales
Incentive Program for the Large Consumer Business

 Customer Service and Commissions Removed from
Margin and Reserved

EC37349AO030470

:XH061-00462


=============
Page 132 of 203
=============

Closing Remarks

 Driving into New Markets: Geographic and Segment
 Driving New Products

- Increased Focus on Gas, Energy Services and Other New
Products Under Development

 Ensuring High Quality and Scalable Execution
 Mining the Portfolio


 Equals
  - Increased Customer Satisfaction

- Increased Growth

- Increased Profitability

EC37349AO030471

XH 061-00463


=============
Page 133 of 203
=============


  CT J kA~ d cji



Enron Energy Services

EC37349AO030472

EXH 061-00464



=============
Page 134 of 203
=============

Enron Americas

EC37349AO030473

=XH 061-00465



=============
Page 135 of 203
=============

Agenda ~ f

 Business Principles

 Financial Results

 Gas & Power Fundamentals

 North America Business Discussion

 Retail Risk Management Discussion

 South America Merchant Discussion

EC37349AO030474

XH 061-00466


=============
Page 136 of 203
=============

i
Business Principles
  (Merchant'Natural Gas and Power Business)

 Goals are to expand and enhance our capabilities in:

 RECRUIT AND RETAIN THE BEST TALENT

 CONSTANTLY EXPAND LIQUIDITY - PRODUCTS AND LOCATIONS

 BE THE LEADING MARKET MAKER

 COVER ALL THE WHOLESALE CUSTOMERS TO ENSURE
SIZEABLE DEAL FLOW

 CONTINUALLY EXPAND OUR OUTSOURCING RELATIONSHIPS

 CREATE A WORLD CLASS INTERNAL RESEARCH CAPABILITY

 ACCOMPLISHING THESE GOALS LEADS TO:

 THE ABILITY TO IDENTIFY AND EXECUTE HIGHLY STRUCTURED
TRANSACTIONS

   THE ABILITY TO SUCCESSFULLY TAKE POSITIONS ON MARKET
DIRECTION
  J

EC37349AO030475

:XH 061-00467


=============
Page 137 of 203
=============

Enron North America EBIT Without Reductions


  ($ in millions)

4,000
3,500
3,000
2,500
2,000
1,500
1,000

  500
0


~eservee
($958M)
'EES (~ t,'::r,,1e r~S
($665M)

EC37349AO030476



:XH 061-00468


  1995 1996 1997 1998 1999 2000 2001 YTD


=============
Page 138 of 203
=============

Enron North America EBIT
($ in millions)

2,500

2,000

1,500

1,000

  500

0

 EGM and EIM transferred out 3Q 2000

 Includes ($665M) of EES Wholesale 2001 YTD

EC37349AO030477

=XH 061-00469


  1995 1996 1997 1998 1999 2000 2001 YTD




=============
Page 139 of 203
=============

4,500
4,000
3,500
3,000
Z500
2,000
1,500
1,000

500
0

  Enron North America Net Assets
(excludes Retail Risk Management)
($ in millions)

O Property, Plant & Equipment l ''a" n ? t it `k
01
~-o
Merchant Assets

  Other Investments $4,279
  Y
4

  oirk

$3,014

$2,190


  2000

3Q 2001

Sithe

Legacy Assets

EC37349AO030478

  ~.
soo
$2,696
  ~~
$1,943
Bridgelin
  HPL
Marine

:XH061-00470





=============
Page 140 of 203
=============

Financial Highlights
  ($ in millions)

Earnings Before Interest & Taxes

Funds Flow

Cash Flow from Operations

Capital Deployed*

*Excludes Goodwill and HPL FV $3.013

  Total
Year 2000 9/30 YTD 2001

  EA EA EES W YTD
$19362 $23885 $(665) $29220
$ 937 $29101 $ 30 $29131
$29988 $ (36) $(538) $ (574)

  $39252 $35194 $ 750 $39944
  H~, h.die ~rret I (i=me ) f !"J;(
c

EC37349AO030479

=XH 061-00471


=============
Page 141 of 203
=============

Key Fundamental Events
Gas Market


 Gas rig count peaked at 1,058 in July 2001

  - Domestic production of gas increased by 2 Bcflday
 trial gas demand was lost from
2 Bcf day of industrial
  March 2000 to January 2001

 Injected 2,130 Bcf this season; 4.9 ay more than
last year



EC37349AO030480

EXH 061-00472


=============
Page 142 of 203
=============

NG Forward Curve Comparison

5.50 1

4.50


  3.50
1

2.50

1.50


  s
--- Forward curve on January 2, 2001y. r,

-- Forward curve on September 28, 2001 t,

	N	N	N	M	M	(	d.	' t	'd'	L()	IC)	I!)	O	CD	Cfl
O	O	O	O	O	O	O	O	O	O	O	O	O	p	O	O
U		~	U	~											
o	O	-	o		-	o		-	o		-	o		-	o
		)		U.	,		U.	)		~	)		~	)	

EC37300030481

XH061-00473 -


=============
Page 143 of 203
=============

Key Fundamental Events

East Power

 Supply Factors

-- Over 60,000 MW of gas-fired generation came on in the
last 21 months

- Nuclear generation up by 5.8% over 2000 - 4,364 MW

 Demand Factors

- Lower than expected load growth - 1-2% actual vs. 4-5%
forecast

- Slowing economy/ Industrial recession

 Stabilizing prices

EC37349AO030482

:XH 061-00474


=============
Page 144 of 203
=============

Eastern Interconnect Demand (Average MW/Hour)



  2000 - 2001

0 430,000
380,000

d
CD 330,000
a 280,000

  80,00
60,00

M
%40,00
m

E 20,00

0

Jan Feb

24,766
2000

Mar Apr May Jun Aug

Sep Oct Nov Dec

New Gas-Fired Capacity in the East


38,195
2001

6'9,817


  2002

EC3134WO30403

EXH 061-00475


=============
Page 145 of 203
=============

U.S. Power Price Volatility -East

140

120

100
80

60

40

20

  r
O

  Forward curve in Dec 2000
  Cinergy On Peak- 20 day rolling average

  rt/



EC37349A0030484

XH 061-00476


  r
T- 0 T~ V"
  O O O O O O
(1) m CL m
  LL 2 f< 2 -0)
  Q )


=============
Page 146 of 203
=============

Key Fundamental Events
West Power

 Supply factors,,: j fi
  - Added 9,000 MW of gas-fired generation over the last 21
months

  - Nuclear utilization up 2,300 MW vs. 2000 ,
- H dro down 8,500 MW vs. 2000 !bI 7 0%
rb .1
  e.C~r` .t G
Net + 3,000 MW more supply

   Demand
  MW due to residential/-commercial
- Lost 2,300
  conservation

- Lost 1,500 MW from load shedding in Pacific Northwest
- Lost 1,000-3,000 MW dupe to slowing economy
- Added 1 000 MW duIto hotter summer than 2000

);;o. Net 5,000 MW less demand

EC37349AO030485

EXH 061-00477


=============
Page 147 of 203
=============

EXH 061-00478

	100,000	
L		
=	90,000	
		
2	80,000	
0		.94
~-	70,000	
Q		
	60,000	
	Jan

  9,000-
8,000
7,000
6,000
3 5,000
a, 4,000
3,000
2,000
1,000
  0

WSCC Demand (Average MW/Hour)

  2000 - 2001


  a

Feb Mar Apr May Jun Aug Sep Oct Nov Dec
New Gas-Fired Capacity in the West


  7,874
1,254

  2000 2001



=============
Page 148 of 203
=============

500

400

m 300


  200

100

0
Apr-01

U.S. Power Price Volatility -West

- Forward curve in April 2001

May-01 Jun-01 Jul-01 Jul-01

Aug-01

EC Th49A0030481

Sep-01

:XH061-00479


  NPI5 on peak- 20 day rolling average ; , ~J)


=============
Page 149 of 203
=============


  Enron North America Commercial Headcount
Managing Director` ., Man
  - ------------------ -------------- ------ ------------------~ -----------

  Vice- Presidents_
---------------------Directors
-------------------------

Managers
\nalysts & Associat(

  TOTAL


  ~~~ ~ftr

EC37349AD030488

----- ON-

- - -.


=XH061-00480

  1999 2000 2001


  1998


=============
Page 150 of 203
=============

Employment Agreement Statistics

  t f { f ~~ (1 CO TY' S
r

  00), u

0



EC37349AO030489

EXH 061-00481



=============
Page 151 of 203
=============

Enron's Leading Market Position
Second Quarter 2000 vs Second Quarter 2001
(TBtue/d)

25.9
  Gas

23 n )nnm

  Power
23.3
  [~ 2Q01
 2Q00


  1 1

  I
1 1
r~ U
  1t'~.. r 1

EC37349AO030490

:XH061-00482


  Enron Mirant Duke Dynegy Sempra Aquila Reliant B Paso BP ABA


  Enron ABA Reliant PG&E Duke Mirant Dynegy Willams Aquila Cinergy


=============
Page 152 of 203
=============

30,000
25,000
20,000
15,000
10,000
5,000
0

  Enron North America Volumes

Physical Gas (Bbtue/d)


1995 1996 1997 1998 1999 Q1


Q2 Q3 Q4 Q1 Q2 Q3

  2000 2001
------------------------------------------------------------------------------------------------------------------------------------------------
300,000-

  250,000- 200,000-
150,000-
100,000-

  50,000- 0--

	1995 1996 1997	1998 1999 Q1 Q2 Q3	Q4 Q1	Q2	Q3

----------------	
----------------------------	2000
-------------------------------------------------	
-------------------	2001
----------	
---------------------
30,000	Physical				
25,000	Power			
3	
20,000-					
15,000-				
"-m		I	
10,000							
5,000						
						
					
	1995 1996 1997	1998 1999 Q1 Q2 Q3	Q4 Q1	Q2	Q3
		2000		2001	
					EC37349AO030491

XH061-00483



=============
Page 153 of 203
=============

Volumes
in `000s
300,000

250,000

200,000

  150,000
100,000

50,000

0


:XH 061-00484

  Enron North America Volumes
(Bbtueld)
 Financial Physical 0 Physical Power  Margin

2,500

2,000

1,500

1,000

500

0

1998 1999 2000 2001

  EC37349AO030492

  Margin
$ in MM

  3,000



=============
Page 154 of 203
=============

Enron North A

 Non EOL
0 EOL

4000
3500
3000
2500
2000
1500
1000

  500
0

merica Gas Transactions Per Day

IQ 2Q 3Q 4Q IQ	2Q 3Q 4Q	IQ 2Q 3Q 4Q	1Q 2Q 3Q 4Q	1Q 2Q 3Q
1997	1998	1999	2000	2001

  EC37349AO030493

EXH061-00485



=============
Page 155 of 203
=============

Enron North America Power Transactions Per Day
 Non EOL

  2000

  L 1800 A o1
  +r L
1600 9
  Vol
1400

  1200
1000
800
600
400
200

  0

1 Q 2Q 3Q 4Q	1 Q 2Q 3Q 4Q	1 Q 2Q 3Q	4Q 1 Q 2Q 3Q	4Q 1 Q 2Q 3Q
1997	1998	1999	2000	2001.

EC37349AO030494

EXH 061-00486


=============
Page 156 of 203
=============


Enron North America EOL Counterparties
Gas ` Power

300

250

200

150

100

50

  4Q 1Q 2Q 3Q 4Q IQ 2Q 3Q

1999 2000 2001

140
120
100
80
60
40
20
0
4Q IQ 2Q 3Q 4Q IQ 2Q 3Q

  1999 2000 2001

EC37349AO030495


=XH 061-00487




=============
Page 157 of 203
=============

1,000,000,000
900,000,000
800, 000, 000
700, 000, 000
F 600,000,000
500, 000, 000
400, 000, 000
300,000,000
200,000,000
100, 000, 000

  14,000,000
12, 000, 000
10, 000, 000
8,000,000
6,000,000
4,000,000
2,000,000

EOL vs OTHER PLATFORMS - NA GAS f(
Average Volume per Day

Apr-01 May-01 Jun-01 Jul-01 Aug-01
0 ICE  EOL NYMEX

  F

EOL vs ICE - TOTAL POWER
Average Volume per Day

Sep-01

Oct-01

EC37349AO030496

:XH061-00488


  Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01

  DICE EOL



=============
Page 158 of 203
=============




  Origination
'If /j

  I

  ..



  Jo~ 1

EXH061-00489


Power Development
  (oo1 YTD $700mm (excluding sold peakers)




=============
Page 159 of 203
=============

Structured Natural Gas Transactions


SunCor Service Agreement
Petro Canada Services Agreement
  -4 'P I-f-AAA

Sierra

Long term assig
of PGT capacity


  Michigan Gas Utilities
3 year Outsourcing
Transaction
  EPMI provides power for
MGU's supply needs
  MGU releases all upstream gas
supply assets to EPMI

  ~c.p~ trr?

CJ

Syndication to 7 shippers of Kern
River from emergency open season
  F" f1
  i

  f ~1
Financial Transactions in Mexico

`~X- 200 bcf Natural Gas ($4mm Origination)
Financial Zinc, Fuel Oil
  ~. 7i7 f :

EC37349AO030498

:XH061-00490



=============
Page 160 of 203
=============


  ~.

WAPA Edwards

WAPA Navy
5 year transactions
including `green' er

Agency

1't
t



Structured Power Trns~ci~ns
a
  '`
Purchase of output of 700MW plant for 20 as egas Con 11 '1J _
years QF expansion anale Turbine Book

City of San Antonio
25 year wind PPA

entral Maine Power
Load following transaction


1
"
  .E

Asset Management Transaction for-
MW of load and_90_MW.generating
capacity and outside supply contracts of
26 MW J



EC37349AO030499

=XH 061-00491


=============
Page 161 of 203
=============


  Summary of 2001 Asset Sales
  t;'.~}off,+~j ($ in millions, excludes items <$10million)
Book Sales
Basis Proceeds

  -listorical Assets
U 1 HPL
  ,I fl
  Development Projects
Peakers
  Pastoria
Fountain Valley PSCO
  j SW Power /Las Vegas_ Coven
Heywood Site
  Turbines - 2 x 7 EAs
Power Assets
Alamac / NCPH
Saguoro

$ 364.2

$ 352.5

  Forecast Q4 2001 disposals
-~ Vitro Sale
  Onondaga
Doyle

TOTALS

Gain

$ (11.7)

1,045.0	1,682.0	637.0
72.5	112.9	40.4
115.6	130.6	18.0
120.1	142.8	22.7
1.0	12.7	11.7
40.3	49.5	9.2
7.5	22.0	14.5
18.5	20.7	1.5
24.0	39.5	14.0
7.9	10.0	2.1
-	4.8	4.7
1 817
$	$ 2,580	$ 764
ffi		
		
	a r: J Jr	EC37349AO030500
		

=XH061-00492


=============
Page 162 of 203
=============


  r

  '
  T f_1
l: ~(AV

  all

  T
1. ! t
  'c 4

  Risk Management Discussion
Retail i1 0 =

  'v J6jj
CJ
  .-p"{
  T` , ~ EC37349AO030501
EXH061-00493


=============
Page 163 of 203
=============

South America Merchant Discussion

				
				
				
				
				
				
				

  pavl . pr t/
0, COO lqi~~' ~M)

  72

  f

EC37349AO030502

EXH 061-00494


=============
Page 164 of 203
=============

Enron Americas

EC37349AO030503

EXH061-00495



=============
Page 165 of 203
=============

Enron Industrial Markets

EC37349AO030505

EXH 061-00496



=============
Page 166 of 203
=============

Industrial Markets

  Global
New Markets Market Size Key Market Attributes
Forest Products $ 330 Billion  Certain base grade commodity
  products
Steel $ 250 Billion  Capital intensive industries that
desire Risk Management products
  $ 580 Billion  Legacy distribution channels with no
price transparency

0

   Receptive to Enron's eCommerce
model
   Slow moving incumbents

EC37349AO030506

  H061-00497 - - --





=============
Page 167 of 203
=============

Forest Products -Market Size

Global Revenue (Est.)
$330 Billion

Other Paper &
Board
  $5.3

Tissue
$2.9

Packaging &
Paperboard

$58.0

  V
Lumber
  $55.1


  Recycled-Paper
$6.6

Printing & Writing
$83.8

Source: Pulp & Paper N. American
Factbook; Int'l Fact & Price Book

EC31349A003050i

=XH061-00498


=============
Page 168 of 203
=============

Steel -Market Size*

Global Revenue (Est.)
$250 Billion

Asia

Other

*Flat and Long Products Only

-ope

EC3134%N%%3*5B

=XH 061-00499



=============
Page 169 of 203
=============



Notable Achievements



 Excellent deal piippe_I ne in both forest'-products and steel -
industry acceptance

 Moved 2.7 million tons of physical product through
9/30/01 oie i,

 Generated $104 million of gross margin through 9/30/01
C.'

I the way newsprint
r) p

  `as "The Market" for

is bought and
newsprint


 "Just-In-Time" steel delivery product now live in Chicago

 Fundamentally change(
sold in the U.S. rn`~

 EOL/Clickpaper viewed
prices

 "Enron Effect" cited by the ITC as a market catalyst

  EC37349AO030509

XH061-00500


=============
Page 170 of 203
=============

Volume Information

Thousand Metric Tons

11,031


s\(pf ~`

  D Physical Volumes
 Financial Volumes

EC37349AO030510

=XH061-00501


  1998 1999 2000 Sep 01 YTD


=============
Page 171 of 203
=============

Transaction Activity



7,413



EC37349AO030511

XH061-00502


  1998 1999 2000 S e p 01 YT D


=============
Page 172 of 203
=============

Financial Highlights		
$	Millions	V		
	Year to Date (9130) Total Year	
	2001	2000* 2001**	2000*	
Earnings Before Interest & Taxes	$45	$ 2 $ 69	$(18)	
Net Income	$24	$ 1 $ 4	$(5)	
Cash Flow from Operations	$(75)	N/A $ (41) N/A	
Capital Deployed				
On Balance Sheet	$386	$201 $386	$116	
Total	$761	$201 $761	$116	
Equity Deployed				
On Balance Sheet	$317	$95 $317	$95	
Total	$504	$95 $504	$95	
~
				
Return on Equity			,,	
On Balance Sheet	18%	2% 210		
Total	11%	2%
11%	
(19)%	
		('
1
)e ,Q'r L 1	2 lQvgl~	f
			
EIM formed 11112001, 2000 information based on restated ENA Downstream Industrial te	am results and
L	
excludes impact of Pulp and Paper Trading monetization in December 2000		
** Estimated		

0030512		
r 1..

!XH061-00503 - -


=============
Page 173 of 203
=============

(
~ ~ Oo-4 0
~YV e

  ~ 1
Earn in s Growth O ortu nit YC.111r I ~-t~k

  EBIT ($ millions)

I --0- Return on Equity -
On Balance Sheet

1'v`*i ($19)

1999 2000

  c r i;
I `c a ~j

  ~` 61%A

$252

2001 Plan 2002E 2003E

EC37349AO030513

=XH061-00504



=============
Page 174 of 203
=============

Forest Products -Asset Investments
Including Off-Balance Sheet Capital and
Assuming Leaf River Acquisition
  $ Millions

   Leaf River Pulp Mill

   Stadacona Newsprint Mill
Garden State Newsprint Mill
Merchant Investments



  $762



$487

$275


:XH061-00505

$46

1999

$90

2000


  913012001

1213112001

200212003

  EC37349A0030514


=============
Page 175 of 203
=============

S

Headcount

Senior Commercial

  140

  10 Transaction Development & Other
Steel
I
   Forest Products
Asset Operations

Total Headcount ~,

  f
293

  Support Depts.

   Analysts, Assoc. & Other
 Senior Commercial

EC37349g0030515

:XH061-00506


  1213112000 81112001 Plan 2001


  12/31/2000 8/1/2001 Plan 2001


=============
Page 176 of 203
=============



Enron Industrial Markets



EC37349030516

=XH061-00507



=============
Page 177 of 203
=============

y t 5si 'K ~ 5-17

Project Southwood

  Georgia Pacific - Leaf River

Enron Industrial Markets.

Presentation to

Enron Corp Finance Committee
For Recommendation to the Board

of Directors

October 8, 2001

"111494#830 518

EXH061-00508


=============
Page 178 of 203
=============


  Project Southwood
  Why EIM Needs a Pulp Mill?

 Market Pulp is a $20B Global Market ($90B including
integrated pulp) with significant volatility

 Asset ownership increases credibility with industry players

 Physical supply enhances marketability of financial
products

 EIM's ability to contract for tons has been limited to date
due to lack of physical presence

 EIM's purchase of newsprint assets (Garden State Paper -
3rd Quarter 2000, Stadacona - 1st Quarter 2001) have had a
positive effect on EIM's ability to transact business:

Trading Hubs

Total Notional Value of Trades

Counterparties

Jan 01 June 01
2 6

$2 MM $70 MM

11 150

EC37349A0030519

Proprietary and Confidential

:XH061-00509


=============
Page 179 of 203
=============


  Project Southwood

  Georgia Pacific's Leaf River Pulp Mill
High Quality Asset

 State of the art facility; one of the largest single-line pulp mills in the
world.

 Ranks 6th out of 50 North American softwood mills for lowest cash

costs.

 Extremely well maintained with a history of proactive maintenance.

 Greenfield construction in 1984 - clean environmental record.

 99% of energy produced on site with 87% of steam requirements
generated from mill byproducts.

 High quality, properly incented, non-union workforce.

Structure Mitigates Risk

 Fixed price, full requirements fiber supply contract for 7 years with
Geor ig a_Pacific. (Fiber represents 70% of variable costs and 40% of
total costs.)

 Mutually agreed upon capex budget with a 3-year risk sharing
provision with Georgia-Pacific.

 EIM pulp desk pays the mill a fixed price for 50% of the physical
output; floating price (based on RISI index) for the other 50%.

Separate Financial Pulp Swap Transaction

 EIM pulp desk enters into a financial pulp swap with Georgia-Pacific
for 277,250 MT/yr (roughly equivalent to 50% of the mill's annual
production). GP pays fixed; EIM pays floating.
  EC3734940030520
  1' Proprietary and Confidentiai
C

EXH061-00510


=============
Page 180 of 203
=============


  Project Southwood
Mill Purchase


Credit Support for
repayment of bullet
loan

Fixed $/ton

7 yr. Physical
Pulp 100%
  Offtake

  Cash Distribution to GP
Transaction Costs
  =~ Iii" Capital Injection

NPV @ 12.5% of Project Cashflows
NPV @ 12.5% of Net Terminal Value

NPV of Mill Purchase

P&l
Payments

$274.5 MM
0 7 r. Balloon
  Loan

  Millions
($265.0)
9.5 ~V
  ($274.5) (1)

$145.5 (2)
113.2 (2)

($15.8)

(1) A $30 MM liquidity line will be used to offset any periodic operational cash
(2) 12.5% = the RAC Pre-tax Hurdle Rate

EC37349AO030521


  fc G,;`"'L3 f ~-J

Proprietary and Confidential

EXH061-00511




=============
Page 181 of 203
=============


  Project Southwood
Financial Pulp Swap

Fixed
$5641 MT

 Term: 7 years

 Notional Volume: 277,250 MT/Yr.





  NPV @ 8.38% of Financial Swap $75.8 MM (')

(1) 8.38% = LIBOR + GP Credit Risk of 3.6%

  EC37349AO030522

Proprietary and Confidential

EXH061-00512



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Page 182 of 203
=============


  Project Southwood
Summary Financial Results





	2001	2002	2003	2004	2005	2006	2007	2008
EBIT								
Mill	$1,976	$23,707	$23,918	$23,231	$22,403	$21,101	$20,307	$20,841
Swap	7$ 5,755	$0	~-O	$00	$00	LO	1-0	$0
					1	1	$20,307	
Net Income								
Mill	$57	$3,142	$3,276	$2,841	$2,317	$1,494	$991	$1,329
Swap	$49,241	$0	$00	$0	$00	L0	$0	$0


i

  Free Cashflow in?

I Mill $1,376 $2,995 $4,397 $3,333 $4,450 $3,955 $3,039 $3,496
Swap L0 1$ 4.252 $8,877 $8,631 $8,383 $8,135 $7,887 $7,638


  L


  V
J

  EC37349A0030523
/

~ Proprietary and Confidential

=XH061-00513


=============
Page 183 of 203
=============


  Project Southwood
Effect on Enron Corp. Ratios

2001 Enron Corp Ratios

Earnings Per Share

Funds Flow Interest Coverage

Pre-tax Interest Coverage
B/S Debt to B/S Capital

2002 Enron Corp Ratios

Earnings Per Share

Funds Flow Interest Coverage

Pre-tax Interest Coverage
B/S Debt to B/S Capital

Enron Corp
2001
  Base Case
$1.80
4.02
3.31
43.4%

Enron Corp
2002
  Base Case

  $2.15
4.02
3.66
43.4%

Enron Ratios Including Leaf River Transaction

Off B/S	Enron B/S	Enron B/S
100% Debt	100% Debt	60% Debt/ 40% Equity
		
$1.86	$1.86	$1.85
4.02	4.02	4.02
3.39	3.39	3.39
43.3%	43.9%	43.5%

Enron Ratios Including Leaf River Transaction

Off B/S	Enron B/S	Enron B/S
100% Debt	100% Debt	60% Debt /40% Equity
		
$2.15	$2.15	$2.15
4.04	3.99	4.02
3.68	3.62	3.65
43.4%	44.0%	43.5%

EC31349NO030524

Proprietary and Confidential

EXH061-00514


=============
Page 184 of 203
=============


  Project Southwood
Valuation Context

  .a(( - ;.

  Pulp Prices
  e  RISI 10-year Historical Average is $546/MT 7 !
? RISI 7-year Average Forecast is $556/MT

   EIM Valuation uses $516/MT over the 7-year term

  A
Acquisition Price o~P ~n O r

 Mill was built in 1984 for $560 MM

 Mill replacement cost today is approximately $1.0 Billion
 GP asking price was $350 MM

 EIM is paying $274 MM

Terminal Value

 Current Transaction Multiples are 3.3X Peak EBITDA

   Enron Purchases Leaf River Mill at 2.13X Peak EBITDA
 Terminal Value assumes 2.OOX Peak EBITDA

  ~;.~~GJ~r_c~~,=~, EC37349A4434525

  A~/iil ~UCC ; .u f l )f
  Proprietary and Confidential

EXH061-00515


=============
Page 185 of 203
=============

Financial and Earnings Report



Additional Disclosures
Earnings Release

Previously disclosed for Wholesale and Retail segments:.

  Revenues
Income Before Interest & Taxes (IBM

New disclosures for every segment:
Revenues 1 K,
  '
Cost of Sales
  Operating Expenses
Depreciationand Amortization
Equity in Earnings
  Other, net
  Income Before Interest & Taxes (IBM

Recurring Earnings Per Share
Nine Months Ended September 30, 2001
  Plan Actual
$1.25 / $1.35
  8% Increase

EC37349AO030531



:H061-00516






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Third Quarter		
Estimated Recurri	ng Net Income by	Segment
	(5 6. ,nlll01n)		
	Third Quarter	Nine Months
	Pies	Actual	Plan Actual
Enron Transportation Services	$33	$34	$ $ 130
Portland General		(2)	58
Global Assets	7	(9)	(85)
Americas	186	338	1,543
Retail Risk Management	(8)	120	(365)
Europe and Other Energy Mitts	133	16	118
Energy Services	36	40	90
Broadband Services	(24)	(51)	(142)
Corporate & Other	12	(90)	(141)
Recurring Net Income	S 361	S 396	$ 1,111 $ 1,206

Earnings Per Share
Third Quarter

  2000 2001


  ,. !.r. r. '41

		
Third Quarter- Rec	urring (E	arnings 'by Segment
	is b.0a )			
	Third 313ffer	Nine Months
	2001	2000	2001	2000
Enron Transportation Services	$83	$83	$7293	72a8
Portland General	(3)	74	122	241
Global Assets	16	26	34	140
Americas	553	533	2,485	1,090
Retail Risk Management	199	-	(528)	-
Europe and Other Energy Mitts	39	50	257	233
Energy Services	71	27	171	79
Broadband Services	(801	(20)	(217)	(28)
Corporate & Other	(102)	(106)	(233)	(143)
Interest, MI, & Income Tax	(380)	(375)	(1,158)	.(901)
Recurring Net Income	$ 396	$ 292	$1206	$ 919

  Ir



	Third Quarter 2001
		(S in mill ns)	
		Pre-ta	After-tax E.P.S.
	Recurring Earnings	$ 5 1	$ 396 $0.
43-j
	Non-Recurring Items:		~
	ibxurix Asset Sales	(31	(310)
f (0.34)
	B adban
d
everance	
(69)	~
/
5) (0.05)
	Ir1~on
t~o ~.~	(52)	(34) (0.04)
	_
_-C~fTltent V&I	(160)	(104) (0.11)
	`l:aV9 on Investing Activities	(7	(462) (0.51)
	Total Non-Recurring Items	(1,302)	(955) (1.05)
	Anti-dilution		(0.11)
	Total Earnings	($781)	($559) ($0.73)

New Accounting Standard for Goodwill	
Summary of Consolidated Goodwill	
(1o,okW6 0.quay .0.6644 4v.664.r1.)	
		Pr6pw.d
	h.0. 30, 2001 AT-d.	W.M.
R.p0.IYq 0n1.	G-WHI 1-1-d	Off
001601 a.rvb..		
P6d4.40..,.rd	61,409 a(99q	
0klw A..N. & 9.0..		
E160,	15, 1593)	
Emon (bb61 Pboo, s PIp.46.. LLC	165 (166)	
T05	240	
E--4 b.	165	
9K 60,	117	
001rr	306	(s9)
ou.	96	
j wln4.w		
Ind.M.l M.r6..-Pulp. P.p.r, & 91..1	372	
&ren E6rop. IM0 /MU4)	364	
0040.	45 1,667	
E- E-,y 6-k..	677	
Em,n sr40db.nd S.rv01..	55	lxx)
E-n Wool	157	
murk-W.00..	697	
A-4-M.,	213	(2131
T.0.)	51.727 5 $)3571

  kd

  0 ( r
J

EC27349AD930532

<H061-00517



  $(0.73)
O Recurring  Non-recurring  Ant4dllutlon


=============
Page 187 of 203
=============

	Total Capital		
	(S In millions)		
	
Eelanered Earknered	Prof
AdltO	ertn.
tm.as
	D.. Bepl its.		Bale of
	250$ 2061 2001	Ooodwgl	POE
Oak... Sheet Debt	$10,229 $13,106 $11,440	$11,440	$8,645
Minority Interest	2,414 2,395 2,396	2,395	2,395
Preferred Stock of Subs	904 903 903	903	673
Shareholders Equity	11,470 9,554 9.036	6,936	6.936
Total Capital	$25,017 017 $25,658 $24,573	$23.673	$20,949

Debt I Total capital 40.9% 60.5% 46.6% 46.3% 41.6%

Balance Sheet Debt
  ($ in millions)

Opening Debt B.ianna
  Funds Flow from Operations
Chang. In Working Capital'
Changes in Deposit I Margin Activity
Proceeds from Sales of Assets
Capital Expenditure
  Equity Investments
Dividends
(Increse)ID.cre.e in Cash on Hand
Other
  Period Activity
  Period Ending Debt Balance
Funds Flow I Interest
 E.oudln9 O.no400 qn AaMn

	2001		2000

.A.w Y7D	3e Ob
AotlVm	E.tknal.d
Beef Yr0	
$,ot Y2D
$110.229)		$(10,229)	S (B.152)
1,804	(39)	1,765	208
(800)	(26)	(826)	(729)
(2,342)	(186)	(2,527)	541
1,423	224	1,647	222
(1300)	(414)	(1,614)	(1,549)
(1,383)	(62)	(1,465)	(2.275)
(256)	(143)	(399)	(396)
528	496	1,023	(409)
(3571	(124	(481}	(1,322
12,543	1294)	(2,11TT	(5,629)
$(12.212)		$(13,106)	$ (13,701)
4.76		3.50	1.40

Capital Deployed by Segment
June 2001
  ($ in millions)

			s'-' 60,I
	ALL.. 0L A Am.dv..	a._. _EeLL aa.a_ .m W' JAW-
last me-	3,635 4,691	6.141 26.741	16,523 1,453 1.353 2.377 63.392
U.bllkt.. (6031 Debt)	790 1,706	1.130 17,922	12,396 692 309 3.9011 37.936
Ahlncsted Debt	1,729 1,929	566 5,516	W 15 416 1,796 12.612
EWky	1.016 1.256	4,155 3.277	3.299 746 626 (3,324) 11,740

DebtEquny 63137 60140 10190 63137 20150 01100 4060 52146


  l

Balance Sheet Debt	
(f in mtlliens)		
		2001	
	
Sept YM	Fully-
E.Urnat.	R-W.d
plan
Opening Debt Balance	$(10.229)	4(10.229)	S (10,229)
Funds Flow from Operations	1,765	2,900	2,925
Change in Working Capital'	(826)	(97)	(50)
Changes in Deposit I Margin Activity	(2,527)	(2,562)	
Proceeds from Sales of Assets	1,047	2,274	1,939
Capital Expenditures	(1,614)	(1,888)	(1.310)
Equity Investments	(1,465)	(1,641)	(2,226)
Dividends	(399)	(538)	(540)
pncre.u)lDecr.ae In Cash on Hand	1,023	1,023	
Other	(481)	(482j	1.512)
Period Activity	28	_ (1,211 )	(796)
Period Ending Debt Balence	S(131106)	S (11,440)	S (11.025)
Funds Flow I Interest	1.40	3.50	4.02
 E t-, a A.peelwrAe AaINty			

Funds Flow from Operations
  ($s In millions)

	Estimated	
	3. CRT	Sept
	AOtlvl	YTD
Recurring Net Income	$ 396	S 1.206
Deterred Texas	116	306
Depreciation & Amoritratlon	143	596
Net Change n PRM Asset	(691)	103
Net Clung. in Merchant Assets	15	275
Net (Gain)/Loss on Sat. of Assets	31	(19)
Equity Earning, net of distributions	14	(110)
Minority Interest	(4)	66
Dividends on Preferred Stock of Subs	(12)	24
Other	(59)	(662)
Funds Flow	S (39)	S 1,765

Financial and Earnings Report



EC37349AO030533

'H061-00518



=============
Page 188 of 203
=============

2001 YTD Total Return to Shareholder
  (Through 1013101)


y9o

Investor Relations Report

Merchant Energy Peers
2001 YTD Total Return
(Through 1013101)

Relative Valuation
  (PIE Ratios)

October 3, 2001

  23[
qs
  16[
Neon S&P 000 Pear Gr0UWP

Largest Shareholders*

  N.-
J-. Cap" 0arp0MOn
MW4a Cap" Mwparnerd
Prdern MYar Baked Man0FaneM
amlm Bony Ake*Mamp.n+nt
801000 r Truce 4008x1 nMWnsMO
FMaWy Marr.4000M a R.awah
G0Ywm.M or Gkre.pa. Ima.Nra l Gap
AIM M00Go00.M Goop
Goklrre.n 0.eh. 4441 MN.gar4N
Rorer Aosal Mr.per.M
RW.nhoux Fk.., l 0Mlcn
Morgan Sholey Adoepn
Dr..dr*r RCM 0)0.1 k,a.rar
An001e0r aspen Fkrandal AdVeora
MFG Irwntmnlt 008000,000
0.ul.0M 0010004. Group Ltd.
00.do 0dw Fa0 B.A. A.. 1 M.n0900et
Opp..Mk. O Funds
Bane of 4..rW CR" Man"~

		Change From
Shares Held	Location	811101
11.40,04	Denver	2,000,000
20JNNI, 40	flaw YnWJMkxwpoas	1040.000
20.84.000	8000n	4,04,0001
18J14JM0	NawYork	1,400,40
8,24,04	CNOSgo	
11609 AGO	5000,	(4,00.40)
0,400.40	Gkgapae	12.14,40)
B." me	0008100	14,40100)
7.700.40	Nave Yak	04,04
7,100,04	PIdMd.Iphl.	
8.84,000	Phaad.IptG.	1.40,04
8,000,000	flaw Yak	700000
6.74.000	eon Fnnel.w	
8.827.40	MR-W-1,.	2,40
8.100.40	80.100	700.40
1.200,000	Ladon	
4.84.40	New Yon	
4.74.04	8.01Ork	740.04
4,007.186	GL 10010M.w Yak	-

Largest Potential Shareholders

			Primary
		Total Equity Assets	Investment
Name	Location	(Millions)	style
Capital Research & M...ge-W	Loa Angeles	8224,000	V.We
Wellington ManaplamM	Boston	157,OD0	V.14
Oppenheinner Copilot	Now York	24,000	Value
J.P. Megan rove orent Man.gement	Now York	108,000	Growth
Fryez 5.,002	Houston	43,000	Growth
State Forminsur.4e	Chl0ago	45.000	Growth
T. Row. Place	B.Kirrlae	85,000	Growth
Davis Fund.	New York	40.000	Growth
Barrow Homey	0811.0	30,000	Val4

5MAmBOV534

<H061-00519


  82%
Emon DJIA SOP 600 Eneryy Poor, NASDAQ Broadband


  78%
Enron Kinder Duke Mhant Weams Dyn.Gy El Paso NRG C.Ipln. AES
Morg.n



=============
Page 189 of 203
=============

Analyst Recommendations
0.0. eawnd.	MB. N.kn	Buy
Book W A-0- MOnl9w'w'y BaMbo.	Wd M...	81.0.8 Buy
B-81. me	Rob." W...we	Alr..lbo.
B.mw.ln	D".n. 0.1b.	Buy
CIBC0ppw*wkmr	am Ny1M	Buy
CO0MfW.b A-...	And'. Mode	AOGU'.dM.
C8 FkM 6..1-	Cwl L00o.'	811009 Buy
0Mn Rwutl'w W.-W.	Mk BNlwb'O0k	811009 Buy
edwwd Jonoo	Z00h W.p'w	Buy
FkM ARwny	Bob C--	5"..U BW
Goad.. a.Cka	DWM FMLMM	Buy
Nowwd W.9	R.b00n FokewlM	Buy
JY. Mw9.n	A'WM F.yOM	Buy
L.hmn B'Olhs	Rkhe d 0,000	811.00 Buy
MwA Ly.01,	DeMo R....y	Buy
P"WWW 8.-MM.	CwMCO.k	auy
am- Bndlk Bony	Ry Nile.	Buy
S~. MM'M	Job00100-	a11009 Buy
ak'.'M00 B Co.	Jeff blooM	AM.CMre
1L&S. Ww1.w%	Ran Bww'e	811wg Buy

Current Investor Concerns

 Cash Flow From Operations
 Earnings Composition and Disclosure
 Balance Sheet Strength and Liquidity
 Progress on Asset Sales
 Effects of Lower Natural Gas and Power
Prices, and Lower Volatility
 Financing Vehicles and Potential Equity
Issuance Requirements
 California
 India

Investor Relations
Planned Fourth Quarter Meetings'

  1 Yw.
nnk
  m.nn
Nu P...
  Peal P'M~ ~PPnj M~ ~ /Pn
P.01 .Mr. 0.2
  A...1'i PPP pw
nun

  O..M
Ar'N PM
PPI

  M.W.*. VAN Carer AN Myer 00 AlO Hhr.heFMrs. La'g W POMnI W Bad.... and AB S.BSNM Ao.lyM.

Enron Common Stock Dividend

 Currently $0.50 Per Common Share
 Dividend on Convertible Preferred Tied
to Common Share Dividend
 Total Annual Cash Payment (Including
Convertible Preferred) Is Approximately
$400 Million
 No Increase Since October 1998
 Current Yield is 1.8% - Current Payout
is 23%

Common Stock Dividend Yields
Energy Peer Group

ux
  v%
3 a.ya
  22%
  13%

  0% 0% 8%
o'` ~~FP a`~ ~~nc ?po y.~'a sae Qc' ~~c
  a: o'F v

EC37349AD030535 2

XH061-00520



=============
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=============

Investor Relations Report

EC37349AD030536

XH061-00521



=============
Page 191 of 203
=============

Enron Americas


  kll~ F j
Agenda
  ,
7
? Business Principles
) Financial Results
) Gas & Power Fundamentals
 Worth America Business Discussion
1
 Retail Risk Management Discussion
 South America Merchant Discussion

Business Principles		
(Enron Americas Merchant Natural Gas and Power Business)		
 Goals are to expand and enhance our capabilities in:-		
- Recruiting and retaining the best talent		2,500
- Expansion of Liquidity		
 Predusn.nd Leoecns		2,000
- Lead Market Maker		
- Information capture		1,500
 Customer coverage		
 Deal flow		1,000
 Outsourcing deals (key locations)		
 Raa.arch (weather etc)		sot
 To enable, based on the information and skill advantage:-		0
- Position taking		
- Highly structured transactions		

  ) "

Enron'North Americ 'Assets
(excludes Retail Risk Management)
  i
o Properly, Plant & Esu Pm.nt /=
 Moh.nl Assns ~
W olhv lnvntm.nb


  I r

Enron\ 4orth America EBIT

 EGM and ~El"' ster,ed out 30 2000
 lnnWda 1~ 5503M1M FFC tna,nl..ate 2n01 VTn

Key Fundamental Events
Gas Market



1

   Gas rig count peaked at 1058 in July'01
  - Domestic production of gas increased by 2 BcflDay
   2.5 BcflDay of Industrial gas demand was lost from March
2000 to January 2001
   Injected 2130 Bcf this season; 4.9 BcflDay more than last
year

EC37349A0030537



,,H061-00522


  ta, se 1. ae wan Lpwy A. O


  1995 1996 1997 1998 1999 2000 2001
YTD



=============
Page 192 of 203
=============



  1 rr i. +

NG Forward Curve Comparison


  q,en
uacc >e,us

Key Fundamental Events
West Power

 Supply factors
  - Added 9,000 MW of gas-fired generation over the last 21
months
  - Nuclear utilization up 2,300 MW vs. 2000
- Hydro down B,500 MW vs. 2000
  Y Net+ 3,000 MW more supply
Demand
  - Lost 2,300 MW due to residentlalicommercial
conservation
  - Lost 1,500 MW from load shedding in Pacific Northwest
- Lost 1,000-3,000 MW due to slowing economy
  - Added 1,000 MW due to hotter summer than 2000
- Net 5,000 MW less demand

Key Fundamental Events
East Power

  Supply Factors
  -0v er 60,000 MW of gas-Fired generation carne on in the
last 21 months
  -Nuc lear generation up by 5.8% over 2000 - 4,364 MW
Demand Factors
  -L ower than expected load growth - 1-2% actual vs. 4-
5% forecast
  -Slo wing economy/ Industrial recession
Stabilizing prices

U.S. Power Price Volatility - East


  +s,

EC37349A003Q538

KH061-00523


=============
Page 193 of 203
=============

U.S. Power Price Volatility - West

  Enron North America Commercial Headcount
i

  .y
.......Ilwl!0!! ... ~tl
  y 5 ? (, r
TOTAL
  1988 1499 2000 2001

Enron's Leading Market Position
Second Quarter 2000 vs Second Quarter 2001
(TBtueld) .
  Gas Power
0 2001 0 2001
 2000 j  20m




~~Ql1CJ~~~

  Enron North America Volumes
(Bbtueld)
Phy.kal O11

1114 Int 1... 1... m 02 m 0I m m m

=I ew*6 G-

1114 1111 11.1	111. 1111	m mY
"	m 01 \-2i ----- !m m
!"
"
........	..........................
Physical Poe.r	. ..............	................. .	.............
.................. ........
				
				
1114 1114 1111	111. 1.11	W m	m m A QI m m
			

  i

  i

Enron North Am
   Non EOL
0 EOL

Per Day I

  1000
L11
2000
2000
211
1500
1000
  500
s
110 M 3Q 40 10 20 30 /Q 10 20 m 40 10 m 30 40 10 2Q 3Q
1997 1990 1999 2000 2001

EC37300030539

KH061-00524



  Employment Agreement Statistics




=============
Page 194 of 203
=============

Enron North America Pom ransactions Per Day
0 Non E0l
  0 Em
7004

  ,004
1200
,044
  12
M 1
1
IQ 2Q 90 w 10 m to 60 70 2Q 3Q Q 10 M 30 J tn0
199 1999 7000 7001

O r






Enron North America EOL Counterparties
Gas Power
  u
~IIIII

  q q 70 q 10 10 q 0
~qJ p q p q q q q `J
  T ~ T ~ y
1899 Y-
7000 2001 1999 2000 2001






  veq.ro...go~
  2001 rro S700mm ,,,~.......q.....:.~


Structured Natural Gas Transactions
  . p. C.. 1..N......M

  a -- - 1p Lq.n O.
  - F

  I(1/'r

  tr

  1J ct~~

EC37349AO030540

EXH061-00525





=============
Page 195 of 203
=============





	Summary of 2001 Asset Sales
	(..nlutln ll.m. <610-)	
	6000	9.1..	
N/11ak1/Ana	6..1.	P--ft	Gin
HPL	926/2	8352.6	(611.7)
P.M-	$1,Wb	61,42	6627
P.~.	6726	6112.6	610.4
Foom0ln V.11.y PaCO	$115.6	$120.6	616.0
BW Pem.. ILO. V".. Cogm 6120.1	6142.1	222.7
N.yw.od aN.	91.0	012.T	211.7
Turbinn-2 2 7 EA.	$40.3	246.6	$6.2
P..wAna
A1.111.. I NCPH	
67.6	
622.0	
$14.6
BM0aO	616.6	620.7	613
Fofw..f $4 2601N.O
($00 5.1.	$
$24.0	
$66.6	
214.0
On0Od.0.	$73	910	bit
peyb	0	64.6	$4.7
TOTALS	61,517	6 2,600	6764

South America Merchant Discussion



Retail Risk Management Discussion

Enron Americas

EC37349A00305~1

XH061-00526



=============
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=============

Enron Energy Services

Retail Segment		
Capital Deployed		
Year to Date	Total Yea
2001E 2000	2001E	2000
Accounts Receivable 14020 926.7	1,402.0	1,157.2
FIX Receivables 513.0 109.5	513.0	272.4
Accounts Payable (303.0) (260.0)	(303.0)	(356.9)
Other Working Capital, Net 93.6 87.9	93.6	102.7.
Price Risk Management, Net 671.9 596.3	8426	698.4
PP&E, Net 15&3 126.9	167.0	152.4
Investments 99.6 120.1	91.6	103.6
Other 105.5 117.9	9.6	(12.9)
Total Capital Deployed 2,740.9 1,715.3	2,616.4	2,116.9

Deregulation Status - U.S. Power

 MS0000 9 L 0501a00rar en MM
tit to.uatWMe1nantd. CNy Nq.0.400
Connbnwd'a 1.W1Yp en WeaIOn
p No pprWleM AINNyOat,uduee O.,a

   Pace of Deregulation is
Choppy
  Continued Deregulation
is Important to long-
Term strategy
  Planned Openings in
2001.2003 Adequate to
Meet Near-Tens 0oals
California Crisis Nas
Reduced Acquisition
Cost and Increased
Urgency in Marketplace
 Total Mxeet Open  $76.5 Blab,,
 Total Muket open  35%
 M.rtN Sloe  $212.0 111111o.

Financial Highlights		
($ in Milions)			
Year to Date	Total Yea
Retail Segment Reported 2001E	2000	ZOOtE	2000
Earnings Before Interest & Taxes 172.0	78.5	247.0	110.8
Net income 89.4	14.4	127.3	68.9
Cash Flow tram Operations (101.6)	(255.2)	(44.9)	(344.2)
Capital Deployed 1,102.7	682.5	1,097.1	871.2
Retum on Equity 16.4%	5.4%	23.4%	1 &7%
Capital Deployed including			
6
Retail Risk Management 2,740.9	1,715.3	2,816.4	2,116:'

Nooeating ESn.15610MM ` \
  1t 14.; \~ ~1'\y ~'~
Quarterly Resdilts

Total Contract Value
(dawn.)
  $30

  $211
$15.1---. 55.0
$5.0
  $111
$7.2
1$.5
1001 2001 3001E 4001E 2001
Plot,

EBrT
1MMw.ui
  $247

$225

  1001 2001 7001E 4001E 2001
Pbn


/r rl

  l

  Deregulation Status - U.S. Gas

   Consumerresponse
has been mixed with
` participationvarying
drastically
   Choicevaries greatly
by customer class
Lack of urgency in the
market

   v e aM tapele.,M M w COnpMnN
  Puc oar /e..e rm wcaganw.: nwwn,  Total Mertet Open  $31.0 aabn
ae,.. wtn sa.na mau,nartl., eunsmw. Teen Mattel Opon 51,
  Mertet Sire-551.091111o.
 u-p.560.IMagla MOrn,
  Q 600145y

  l
EC37349A0030542

1

XH 061-00527





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Deregulation Status - Europe Power

 Diferantkl market opening and
regulatory regimes facilitate
market distortions
 b.cumbema wi h market power
joined by consolidated
groupings threaten competition
in generation and supply
Proposed EU Acceleration
Diractine would provide
signiflunt boost to market
opening
Proposed EU Regulation in
cross-0onler trade it electricity
would enhance integrated
Mwrork access

 0 e,yltwoeawaaetrWAe.bl.l
 M.Whol
  Statistics7TT
R a.ry
~' at-

Deregulation Status - Europe Gas
a "P	
	
	
	
I	
	
`	statistics

Deregulation Status - Canada Gas

e.atrvuoeq usumts.a ee e.....e
a.wwo+ao ee.n...D.MVMM. r
cs.e+.aw eW.r se.e. M.MItWbn
o e. sw.aae+A.a.raw,wtwee pea..

EC37349AO030543

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  yv_~j' C14) / r

i/arge Consumer Business
f,.
 Annual Energy Spend>$10MM  Enron Sales Force
HighlyPackaged Dedicated ClienfManage
	34// f172
", /
Nwrrrvwe. N	$84
/~
S.AK5 1 YL III

Y~	$85
+s
s _;1a
. 1 J b^
'
Quaker ( F irit';	r
PARE ,.	
	7rattaaalbaa I tugm
Raytheon WAL*MART'	
	




Small Consumer Business - U.S.
 Annual Energy Spend <$10M	M  Enron/Agent Sales Force
 Standard Products	 Supported by Call Center
^AlhertsunS Tricon.,	110,727 $205
	
v
V@71j$fl 1	
ndtll~s
TYaYeOaae~	,_
J
1 htTC O$tDII~LDbt eaiN0.fF	F
	$371
1803
HST r~JCUU;rr"^	
W 13oslonProprrlics	
	

Small Consumer Business - U.S.
Regional and Enron Direct
 Annual Energy Spend <$IOMM  EnrordAgent Sales Force
 Standard Products  Supported by Call Center


11

Portfolio Origination -U.S.
 Upsells andlor Restructures within Existing Contract
 Drives Future Investment in New Products

-= PACIFICBELL.
Ovo.WM	22

.	$70.8
 REXAM		
	1
Y	$4.6
STARWOOD	so
s1	at
`Margin
	



  Enron Direct - U.S.
  Agent-Based Business Metrics

Agents at	Deals Closed	Cumulative	Cumulative
Month End
t,	
sstr	Deals Closed
:sr	Margin
p,T
			
			
			es.r
~:		tsw	
		I	


as	

'	
f
,,	tms
-
1o	m		
wxw Aay
A" W	aw

w Jur -w sin	

M/. Tx xT	

W TR t/Y

E~3-~349A04 `'44 3

KH061-00529




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  ^U

	Large Consumer Business - Europe
	 Annual Energy Spend>S10MM	
	 Highly Packaged	
	 Enron Sales Force	
	
logos	xx	x

Sxx
		xx
IN I	
		vv~-or----vv~ v
.. nnuenons ~ Merp
\1		



Small Consumer Business - Europe
Channels

No Soak U%

  $xx
sxx
  xx i f' c
Eli,
xx
  5 ~ 'S
Mw.
  o%eet /"et

& a of xresseevos 10 M.9w


lJ
i

Small Consumer Business - Europe
 Annual Energy Spend <S10MM	
 Standard Products	
 Enron/Agent Sales Force	
	xx	Sxx
		
		I
	xx	Sxx t,
Sainssbudrvs;	
A	~
		
		
	



Small Consumer Business - Canada
 Annual Energy Spend <$10MM
 Standard Products
 Enron/Agent Sales Force
	xx	Sxx
		
		
		
logos		
	xx	$td)
	vv vt^
Trwueet/onc	as  vr~
Meryin
	


it Product Mix

  g, -c3a

  a% 4%
Ty 1J%
A

  sr~
sr% rc's

   Power 0 DSM I
Naturol Ges Facility Services
  7araf 0 Construction services

EC37349AO030545 4

XH061-00530




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=============



  Services
 Client Management  Business Center Managemant
 Contract compliance  Billing
 Customerlssues Management  CustomerEnrollment andSet-up

  Energy Asset Management
   Delivery, Execution andVertfication

Risk Management

Risk Management Sevices
Risk Analysis
Deal Capture and Validation
Global Data Management

 East Power al, cps
West Power
  1M Europe
 Natural Oat

  Customers

  ,
au au ua
  ~r 11
0100 0200 0200 000 0101 x201 0201

Closing Remarks

   Performance Measurement
 Syndicatlonand Solrcing
  11.7 FaeNW. sy.f1
xaxe5 i:o
6.6

  n R, r
6.7 ~ 2A
~rn+t 9.~f. ..!. .aoo 1s
os
"A
..a s.a s.a
]a/a1 eaafi M0/01 YRt eY YR aofo
~tYwpaM-rNV 1snaRalteN
NGeaa.ecar beawnw.-s:.PSa '.~~ .



  Cost Structure

Aerating Expenditures

a MItlions)
I$
750	


S22	670
ra
	66
	
291
F	f
	
1665 2000 2001E	2002E

Operating Expenditures i
Gross Margin
100%

  fi6x
  01%
  66%
1H5 2000 21101E 2002E

 US. tt Europe or CaOee
EFt  TNPC

Enron Energy Services

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  y9o

Enron Industrial Markets

Industrial Markets
Global	
Now Markets Market Size	Key Market Attributes
Forest Products S 330 Billion	Certain base grade commodity
	products
Steal S 250 BiUion	Capital intensive industries that
	desire Risk Management products
S 590 Billion	Legacy distribution channels with no
	price transparency
	 Receptive to Enron'a eCommerce
	model
	 Slow moving incumbents

  Steel - Market Size*
Global Revenue (Est.)
$250 Billion

  slwa
om.r

  tu
  Earope
us

  TW wM 10.0 v.wua, a.y

  Notable Achievements

  -Excellent deal pipeline in both forest products and steel -
Industry acre lance - "'
-Moved ~m Illion ton . of physical product through
Generated $104 milli on of gross margin through 9130/01
Fundamentally changed the way newsprint is bought and
sold in the 11S.
  EOLICI ickpaper viewed as "The Market" for newsprint
prices
  Just-In-Time" steel delvery product nom live in Chicago
Enron Effect" cited by the ITC as a market catalyst


  I

teen 1909 2000 Sep 01 Yin
O Physical Volumes.
   Financial Volumes'_

  v) c-

  49A443Q541
EC373

  A
F

<H061-00532

Volume l
  Thousand MetricTons

  11.01 1_\






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  ,~ I r

  ht ~/ t

Transaction Activity

7412


  Earnings Growth Opportunity

  Eel? (0 miNfony 01
^4. 0080.2 00 EgUly -On
  9Wn0..N.1
  0262
26%
  21% 1
0120
  ax
  sn "+`
411-

  (i2) BU) .w
  1001 2000 2001 P000 2002E 2002E

  Headcount
60110 Cem 0rda T0te1 X..Ee01D$
010 02

1821000 92f0001 P001001
010.001.0 .0000, 0.12 S o0r/
0P1* Mr.1b
  o2r12....wn2

11n1a000 V4aD1 P2.0000
~)''''O''001N010.9a
.w

1	V ,)
Financial Highlights	
S Millions	
Year to D!!=) Total Year
2001  2001'	
Earnings BMoro Interest & Taxes $46 $ 2 $69	$ (Is)
Not it- $24 $1 $43	$(6)
Cash Flowtrom Opori imo $(76) NIA S (41)	NIA

\\
Capital Deployed ,	
On Balance Sheet 51266	-~ $20, $386	$ 116
Total T.79	$20, $761	$116
	r;	
Return on Equity -'	
On Batanca Sheet 10% 2% 21%	(19)%
Total 10% 2% 1r/.	(19)%
 QM/0w21401001.7100 MrMl000.000 r 100020091a 0.wrew:0 YMIWle100.00
000 00000000tl..0 0200 0 POP.02 P. 0211.0n000M120bn01 O.wM.1 ONO
^ E.Il1n00tl

  Asset Investments
  $ Millions

   LNI Ft- Pep WE f701
 500.020100 90-pal un
D O0Nfn 9208 010.09121000
00001 921t 10202000192
  00017

  0276
1001 2000 0/012001 1L2140001 200212002

Enron Industrial Markets

2

EC37349A0030548

XH061-00533


  1998 1999 2000 Sep 01 YTD





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COMPENSATION COMMITTEE MEETING HIGHLIGHTS
SEPTEMBER 14 & SEPTEMBER 27, 2001

September 14, 2001

  Discussed employment contract terms for Mark Frevert, Rick Buy, Rick Causey,

Steve Kean and Mark Koenig. Approved market driven equity grants. As of October

8, 2001, all executives (except Steve Kean) have executed the proposed agreements.

   Approval of Andy Fastow's contract terms was deferred until September 27, 2001.

 Insurance swap arrangement for Mr. Lay was approved.

September 27, 2001

 Approved contract terms for Andy Fastow. Employment contract has been executed.

EC37349A0030443

XH061-00534