Subject: "Partial variance to AAC R14-2-1606(b)".

Body: Leslie, I have just completed reviewing the APS filing. This paper explains much of the observed behavior of APS during the DSTAR (WestConnect) proceedings over the last several months. The paper is so full of market "scare" tactics it seems appropriate to be reading it during the Halloween season. The token effort of procuring 270MWs starting 2003 and ramping up to 1670 MWs in 2008 is ridiculous. The statements that APS generation is somehow more secure and reliable than any generation not owned by APS, using the same grid, and that non-APS generators have little if any responsibility to the "Full-Requirements" customers are all beyond belief. The mis-characterization of the problems experienced in CA, OR and WA and the contemptuous citing of "experts" seems typical of the APS distain for deregulation. The entire filing is more like a guaranteed plan to recover the "Billion" dollars invested by APS, with convenient adjustment clauses every three years. As you noted earlier today, the Commissioner of the ACC may be more concerned over the APS stock price than truly encouraging open markets and retail access and what better why to help the stock price than to award APS a 14 year contract...look at what the Defense Department did for Lockheed!!! I spoke with Chris Lackey who met earlier this month with Pinnacle West's (APS subsidiary) head of Trading who told him that PinWest is very conservative (as stated in the filing), their primary function is to support APS and they saw no real opportunities to conduct business with Enron. However that could change if their petition is denied. Please let me know how you'd like to proceed. If this is approved by the ACC I assume it must then go to FERC, do we have an opportunity to intervene with the ACC and/or FERC in regards to this filing? If we do, I'll be happy to help you with composition of the documents. Kind Regards,

Subject: "Open Enrollment for Benefits".

Body: Open Enrollment for your 2002 Health Benefits begins Monday, October 29, 2001! Q. WHAT DOES THIS MEAN? A. If you plan to make changes to your existing benefit coverage, you will need to make changes during Open Enrollment which begins Monday, October 29, 2001 at 8:00 AM (Central) and ends on November 12, 2001 at 5:00 PM (Central) To facilitate these changes, you received an Open Enrollment Benefit Packet at your home address. This packet contains a personalized worksheet and the Enron Instruction Guide to help you make your selections. (If you have not received your Info Packet, please let us know ASAP! ) Q. WHAT DO I NEED TO DO? 1. If you are satisfied with your current elections and do not need to make changes, do nothing. Your current choices will automatically roll over to 2002. 2. If you plan to make changes to your coverage, you will need to either access the Intranet website at work: benefits.enron.com or at home at www.Enron.BenefitsNow.com or call the Phone Enrollment Line at (800) 332-7979, Option 5. Q. I HAVE MORE QUESTIONS. I NEED MORE INFORMATION. A. If you have more questions or need more information, you may attend our Open Enrollment "Brown Bag" Info Session being held on Friday, October 26 @ 11:30 PM in the Mt Hood Conference Room. See you then! EWS Portland HR Office Julie Kearney x7404 Grace Rodriguez x8321

Subject: "Flexible Spending Accounts".

Body: Many of you have inquired about January reimbursements to 2002 flexible spending accounts. Aon Consulting, Enron's flexible spending account administrator, has experienced some processing delays. Aon has encountered difficulty in retrieving spending account deduction information, and some deductions are not appearing in Aon's records. Enron Benefits is working with our IT group to help Aon resolve this issue. Also, unprecedented activity at the end of 2001 flooded Aon with year-end claims. Aon has assured us that 2001 reimbursements are now up-to-date, and that they began processing 2002 reimbursements on Monday, February 4. Questions regarding flexible spending accounts can be directed to georgia.fogo@enron.com.

Subject: "OpRisk Lunch Cancelled for 3/5 and 3/12".

Body:
Since Sally is out of the office today, March 5 and will be out next Monday, March 12, the OpRisk Forum Luncheon has been cancelled for both dates. Please adjust your calendars accordingly. The 10:00 AM staff meeting, however, will be held as usual. Thanks,