Q: Neither EWS/RAC/EGF employees nor family members or others living in their household or financially dependent on the EWS/RAC/EGF employee may purchase or sell securities of any entity (or derivatives thereof) listed on the Restricted List for your or their personal or related accounts or recommend the purchase or sale of such securities to any person, except with the prior approval of the Compliance Department in consultation with the ENA Legal Department. In addition to the trading restrictions above, should you at any time possess non-public material information about any public company, you, your family members and anybody that is financially dependent on you, are restricted from trading in that issue, and you may not disclose the non-public material information to anyone that does not have a business need to know. With respect to investments in privately held companies, you are responsible for complying in all respects with the policy entitled "Conflicts of Interest, Investments, and Outside Business Interests of Officers and Employees" in the July, 2000 Enron Corp. Code of Ethics. Please consult the Compliance Department with any questions you may have regarding a potential investment in a privately-held company. Company Name Stock Symbol 3 TEC Energy Corp. TTEN Active Power ACPW Adrian Resources ADRRF Applied Terravision Systems, Inc. TER CanFibre Group Ltd. CFGL Carrizo Oil & Gas Inc. CRZO Catalytica Energy Systems, Inc. CESI Crown Energy CROE CyNet, Inc. CYNE Enserco Energy Service Company, Inc. ERC eSpeed, Inc. ESPD FuelCell Energy, Inc. FCEL Hanover Compressor Co. HC ICE Drilling Enterprises Inc. IDF Impact Energy IEY Industrial Holdings, Inc. IHII Kafus Environmental Industries, Inc. KS KCS Energy KCS Nakornthai Strip Mill Public Co Ltd NSM SET Paladin Resources PLC PLR LD Southwest Royalties SWROY Syntroleum Corp. SYNM Tejon Ranch Corp. TRC TransCoastal Marine Services, Inc. TCMS Verado VRDO The Restricted List is solely for the internal use of EWS/RAC/EGF. No one may engage in discussions regarding whether a security is or is not on the Restricted List with persons outside EWS/RAC/EGF without specific clearance from the Compliance Department in consultation with the ENA Legal Department. No employee of any Enron Business Unit may engage in the trading of any Position for the benefit of any party other than an Enron Business Unit (whether for their own account or for the account of any third party) where such Position relates to (i) any financial instrument, security, financial asset or liability which falls within such employee's responsibility at an Enron Business Unit, or (ii) any other commodity not covered by (i) included in any Commodity Group. Position shall mean, collectively, the risk components (including, but not limited to, price risk, basis risk, index risk, credit risk and liquidity risk) of all products (commodities, financial instruments, securities, equities, financial assets or liabilities) which have been authorized for trading in the Enron Corp. Risk Management Policy, any of the Enron Corp. Policies or approved for trading through any amendments to this Policy. The prohibitions listed above do not replace or modify the policies set forth in EWS's Policies and Procedures Regarding Confidential Information and Securities Trading, Enron Corp.'s Risk Management Policy, or Enron Corp.'s Code of Ethics . Should you have any questions regarding the above, please contact me at ext. 31939
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A: Restricted List

Q: NGI's Daily Gas Price Index published : October 29, 2001 ALJ Clears Transwestern of Market Power Charges A FERC administrative law judge has found no improprieties, nor evidence of the exercise of market power in negotiated rate contracts between Transwestern Pipeline and two shippers on its system, which resulted in the shippers being charged as much as $27/MMBtu last February, far in excess of the pipeline's allowed transportation rate of 38 cents/MMBtu (RP97-288-009). ALJ Jacob Leventhal had only one fault to find, and that was with Transwestern's method of posting capacity. The judge said, and Transwestern agreed, to modify its tariff "so that all posting, bidding and award procedures are set forth in a separate provision with an appropriate caption" on its Internet bulletin board. Shippers had said that reviewing capacity on the Transwestern web site was "a tortuous process." Indicated Shippers claimed Transwestern's inadequate capacity posting and award procedures did not provide all interested parties with an opportunity to bid for the capacity that was available. While "both Indicated Shippers and (FERC) Staff find it curious that SET (Sempra Energy Trading) and Richardson (Products Co.) were the sole bidders on the contracts awarded to each of them...curiosity does not translate into proof," the judge said. Witnesses in the expedited hearing testified no bids were considered in advance of the capacity posting. The judge subsequently found the capacity was awarded in a manner consistent with Transwestern's tariff. Similarly, Levanthal could find no evidence that Transwestern exercised market power in negotiating the rates with shippers or withholding or threatening to withhold capacity. The capacity was available at recourse rates, and the shippers knew those rates were available. "Staff's arguments really are criticisms of the posting and award procedures, but do not demonstrate the exercise of market power." The two shippers said they made a business decision to propose the "index-to-index" formula that produced the higher rates, rather than take the recourse rate "to minimize any risk on transportation options." The index-to-index formula refers to taking the difference between the daily published commodity prices at two different points and subtracting to get the transportation rate between them. In this case the two points were the San Juan Basin and the SoCal Needles delivery point. The case was set for expedited hearing last summer by the commissioners acting on staff recommendations.
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A: NGI Article on TW Ruling

Q: Lucy: We thought that it would be a good idea to meet with the "weather" group to introduce ourselves and alos to go over some of the basics, such as procedures for getting confidentiality agreements processed etc. Could you send me a list of who you think we should include in this meeting and Sara and I will do the rest? Will a lunch work? Carol
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A: Weather Meeting

Q: Cathy, I want to recap our conversation yesterday because, after I thought about it, I still do not understand the issue with 20Q and its PRM: A credit reserve was set up for bad debts for $5,577,900 and credited to account 25100300 Prudency Reserve. It is my understanding that this was the only way to book this transaction. But I do not understand why this was booked in a PRM account and not booked to the Allowance for Bad Debts account. Also, when I reduce the 25100300 account balance by the $5,577,900 that was booked there, my difference doubles to $11,155,800 (see attached spreadsheet). So was account 25100300 originally credited or debited by the $5,577,900? If it was originally debited and I remove that debit, then the PRM will roll. Also, will there be anyway to move this transaction out of the PRM accounts in order to effectively roll these accounts every month? Thanks for your help.
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A:
20Q's PRM