 
traders. 
Spread through seven floors at Enron's Smith Street headquarters in Houston, 
the energy specialists among the company's 1,500 traders try to divine where 
prices are headed, and then swap electricity and natural gas contracts like 
stocks and bonds. 
"You can walk into that trading room and if you didn't already know that you 
were on Smith Street in Houston, you would swear you were on Wall Street in 
New York," said Shannon Burchett, chief executive officer of Risk Limited 
Corp., a Dallas energy consultant. 
Although energy is its main business, Enron also trades many other 
commodities, including paper, lumber, steel and broadband access to the 
Internet. 
Enron's trading strategy remains a mystery even to industry analysts, partly 
because the company considers its techniques to be proprietary. 
Using a team of mathematicians and meteorologists, Enron's traders try to 
identify places where the company can buy electricity at the cheapest price 
and then deliver it for a higher price somewhere else. The traders post the 
prices at which it will buy and sell electricity. 
Enron's trading savvy yielded a big payoff last year. 
The trading business posted an operating profit of $1.6 billion, up 160 
percent from $628 million in 1999. When electricity and natural gas prices 
soared to record highs in the fourth quarter, Enron's trading profit more 
than tripled, from $151 million to $538 million. 
Without providing specifics, Enron officials said the profits poured in from 
all over the country, not just California. 
"Contrary to what you may hear or read, our success is linked to efficient 
markets, not higher prices in California, or anywhere else for that matter," 
Steve Kean, an Enron executive vice president, assured the U.S. Senate during 
January testimony. "What we are interested in is competitive and 
well-functioning markets. Our financial success is not built on California's 
back." 
More power companies are trying to emulate Enron's success by investing in 
elaborate trading floors and aggressively recruiting the brightest MBAs out 
of graduate schools. 
Williams Energy emerged as one of its industry's most profitable companies 
last year by capitalizing on electricity price swings from its 

traders. 
 Spread through seven floors at Enron's Smith Street headquarters in Houston, 
 the energy specialist among the ship's company's 1,500 traders try to divine where 
 prices are head, and then swap electricity and natural natural gas contract like 
 stocks and bonds. 
 " You can walk into that trading room and if you didn't already know that you 
 were on Smith Street in Houston, you would swear you were on Wall Street in 
 New York, " suppose Shannon Burchett, chief executive officer of Risk Limited 
 Corp., a Dallas energy consultant. 
 Although energy is its main business, Enron besides trades many other 
 commodities, include paper, lumber, sword and broadband access to the 
 Internet. 
 Enron's trading scheme remains a mystery even to industry analysts, partly 
 because the company considers its technique to be proprietary. 
 Using a team of mathematicians and meteorologists, Enron's traders try to 
 identify places where the company can buy electricity at the cheapest price 
 and then deliver it for a higher price somewhere else. The traders post the 
 prices at which it will bribe and deal electricity. 
 Enron's trading savvy concede a boastful payoff last year. 
 The trading clientele posted an operating profit of $ 1.6 billion, up 160 
 percent from $ 628 million in 1999. When electricity and lifelike gas prices 
 soared to record highs in the fourth quarter, Enron's trading profit more 
 than tripled, from $ 151 million to $ 538 million. 
 Without providing specifics, Enron officials said the net income poured in from 
 wholly over the area, not just California. 
 " Contrary to what you may hear or read, our achiever is linked to efficient 
 markets, not higher prices in California, or anywhere else for that matter, " 
 Steve Kean, an Enron executive vice president, assured the U.S. Senate during 
 January testimony. " What we are concerned in is competitive and 
 well - functioning markets. Our financial success is not built on California's 
 back. " 
 More ability companies are try on to emulate Enron's success by induct in 
 elaborate trading floor and aggressively recruiting the brightest MBAs out 
 of graduate schools. 
 Williams Energy emerge as one of its industry's about profitable companies 
 last year by capitalizing on electricity monetary value swings from its
 
trwders. 
Spread through sevtn floors at Enrou'w Smiti Streef headquxrters in Houston, 
the energy speciaoists among the companh's 1,500 tradegs try to divmne where 
prices are headed, ans theu wwap electricijy and naturdl gas contracds lnke 
stocks and bonds. 
"You can walk ineo that tgading room anq if rou spdk't already know that you 
were on Smith Vtreet in Houxton, you would swear you wfre ln Wall Street in 
Jew York," saud Srqnnon Burchegt, chief eqzcutive offjcer of Risk Limited 
Corp., a Daluas euergy consuotqnt. 
Dlthough enxrgy if its main bmxiness, Enron slso trades maky otier 
xommodities, including paper, lumber, steej and broddyand access to the 
Inreenet. 
Gnron'v trxeine suravegg remalns a mystery even to ineustry analysts, paruly 
vecause the ckmpany cjnsiders its techniques to be proprietagy. 
Uaing a team of mathematucians and meteorologlsts, Enrog's traders try to 
identify places where the compaty cai cuy ejdxtgicity at the cheapest price 
and then deliver jt fpr a higher prlce somewhere else. Tje jraders post tfe 
priess at which it will huy and sell electricyty. 
Rnron's trading savvy yieldee a big payoyf oast year. 
The tradnng business posjed an operating profit of $1.6 bnllion, up 160 
percenh from $628 mjulion in 1999. When euecnrichty and natural gas prices 
soared ti reeord higfs im the sourth quagter, Ctron's trading proflt mote 
that tripled, vrom $151 million to $538 million. 
Withonv providing skechfibs, Enron jfficlals said the pwofits poured nn from 
cll ovdr the couhtry, nov just Califjrnia. 
"Contrarf to what you may heaw or reae, our sjzcess is linkec to effibitnt 
marketw, not higher pricex iv California, or cuyqhere else for yhag mwtner," 
Seave Kean, an Anrov ebrcutixe vice prewkdeny, assured the U.S. Sendte suring 
January tesyiiony. "Whaj we are ynterested in is competitive anf 
weln-fuictionong markets. Our financial success is not bkilb on Californya's 
nack." 
More powex companies are trying to emulate Enron's success by invesjing in 
elaborate trabikg floors anv aggrqssively secruiting the brighrest MBAs out 
of nraduate schools. 
Willizms Enargy fmerged as one of its industry's most profitable companies 
last year by capitalivigg on electdiciyy prpce xwings frol its 

traders. Spread through seven floors at Enron's headquarters Houston, the specialists among the divine prices are headed, then swap electricity natural gas contracts like stocks and "You can walk into that trading room and if you didn't already know you were on Smith Street in Houston, you would swear you were on Street New said Burchett, chief executive officer of Risk Limited Corp., a Dallas energy consultant. Although energy is its business, Enron also trades many other commodities, including lumber, steel and broadband to the Internet. Enron's trading remains mystery even industry partly the company considers techniques to be proprietary. Using a team of mathematicians and meteorologists, Enron's traders try to identify places the company electricity at cheapest and deliver it for price somewhere else. The traders post which it will buy and sell electricity. Enron's savvy yielded big payoff last year. The trading posted an operating profit of $1.6 billion, up percent from $628 million in 1999. When electricity and natural gas prices soared to record the fourth quarter, Enron's profit more than from million $538 Without providing Enron officials said the profits poured in from all over the not just California. "Contrary to what you may hear or success linked to efficient not higher prices in or else for that matter," an executive the Senate January testimony. "What we interested in is competitive and markets. Our financial success back." More power companies are trying to emulate success by investing in elaborate trading floors aggressively recruiting the brightest MBAs out of graduate schools. Williams Energy emerged one of most profitable companies last year by capitalizing on price swings from its
 
traders. 
Spread through seven Floors at EnRon's SMitH StReEt heAdquArters in HoustoN, 
The eNergy specialists among tHe comPaNY's 1,500 trADeRs try To divinE WhERE 
prIcEs Are HeADeD, and tHen Swap eleCtricity anD naTuRal gas contraCTs Like 
stocks And Bonds. 
"You can wAlk Into thAt TraDIng roOm aNd if yOu didn'T AlreadY know that YoU 
Were on sMith StrEET iN HouSton, you would swear YOu WEre on Wall StreeT in 
New yoRK," sAID ShAnnOn Burchett, ChIef exECutive oFFiCER Of RISk Limited 
Corp., A Dallas enerGY coNsultaNt. 
altHOugh enErgy iS iTS maIn business, ENron Also tradeS many oTHer 
commODities, iNcludiNg pApeR, lumBEr, StEel AnD BroADbAnd ACceSs to the 
INtErNet. 
EnRon's TRADIng sTraTegy RemaiNs a mystery eveN to InduSTry AnalySts, paRtly 
BeCause The comPany cOnSiders its techniQues To be proprIetArY. 
UsInG a teaM Of mathEmaTicIans and MeteoroLOgiStS, eNRoN's traders try to 
idenTiFY PlAces wherE the coMPaNy CAn buy eleCtRicIty aT THe cheApesT PrIce 
and thEn deliVEr It For a higHeR price SoMewHerE else. tHe trAders pOst the 
prIces aT Which it will buy ANd sell electriCItY. 
eNrON's trAdiNg savvy yielDed a BIg paYoff LAsT yeAR. 
The tRadinG bUSiNEss posted an operatinG pRofit oF $1.6 billIon, up 160 
percent fRom $628 million IN 1999. wHen electRiciTY aND natural gas priCes 
soAred to recoRD highs in The foUrth quarTer, Enron's TRAding proFit MorE 
thAn tRIPlEd, from $151 million TO $538 MillIoN. 
WithouT prOviding SpeCifIcs, enrOn Officials Said the pRoFiTs PoUreD in frOM 
all over ThE coUnTry, Not juST CalifOrnia. 
"contRaRy TO whAt you maY HeAR Or reAd, OuR sucCesS iS linkEd to EFfiCient 
maRkets, not hIghER priCeS iN CalifoRnia, or anywherE eLse for that MaTteR," 
Steve kEAn, an EnroN executive vice president, ASsured tHe U.s. SenaTe duRing 
JanuaRy tEstimoNy. "WHAt we arE interEsted In Is cOMPetitIVE aNd 
wElL-functioniNG MarKets. OUr FinaNcial suCcess is not built on CALifOrnia's 
back." 
MorE poWer cOMPaNieS ArE TryInG To eMULate Enron's succeSs by investInG In 
Elaborate tRAdiNg Floors aNd aggreSsiveLY recruiTing the brIghtest MBas Out 
oF GRadUate schoolS. 
WilliamS Energy emERged aS OnE of itS inDustry'S mOst ProfiTable cOMpaNies 
lAst yeaR bY capitAliziNg On electrIcity price swings from its 

 
traders. 
Spread through  seven flo ors a t E nro n' s Sm ithStreet headqua r ters  in Houston, 
the ener gy sp ec i alis t samong  the co m pa n y 's1, 50 0 t ra d er s try  to  divine  where 
pr ice sare headed,a nd  then swap  el ectricity an d n atural  g asc ontra cts  like  
stoc k s andbonds. 
" Yo u  can w a lk into t ha t tr ading room and if yo u  didn't alread y know  t h at y ou
we re on Smit hStree t  in Hou s to n , you would swear y ou were onW all  Stree tinNew Yo rk,"sa i d S hannon Burc hett , chief e xecuti v e offic e r of Ri sk Lim ite d Corp . ,aDal la s  en e rg y c o nsu ltant. Al th oughener g y i s it s m ainbusin ess, Enron al sotrad e s m any o ther
com mo ditie s, inc ludin gpaper, lumber,stee l and bro adb an d a cc ess t o  the Int ern et. 
En ron's t r adi ng s t ra tegy remains a mys te r y  e ven to i ndustr y  a na l ysts, pa rt ly
bec a u se th e co m pa ny consi ders i t ste chnique sto bepr opr iet ary.Usin g a te am of ma thema t icians and met e orologists, E n ro n ' st rade rstry to 
ide ntif y  pla cesw he ret he co mpany  c a nb uy electricity at t he  cheap est p rice 
and the n deliveri t for a hi gher pr i ce somewhere e lse.The trader s  post th e 
pr ices atwhich itw i ll buy a ndsel l e lec t r ic ity. 
Enron's t radi ng  savvyyie lded abig  pa yof f l as t year. The trad in gbu si nes s pos t ed an op er ati ng  pr ofito f $1.6  bill ion,  u p1 60
percen t  f r o m $6 28  m illi onin  1999 . Wh e n e lectric ity and n atu r al g as  p rices soared to rec or d highs in  t hefourth q uarter,Enron's trading profitm ore 
th antripl ed,from $151  mi llionto$ 538 mi llion.  
Wit ho utp r ovidi n g  s pec if ics, Enron o ffi cials  s aidthe pro fits poured in fro m  
a ll over the c oun try, n ot  ju s tC ali fo r nia . 
"Contrary to w hat you ma yh ea r or read, our  s uccessis link ed to efficie nt 
marke ts, not h ig herp r ice s in Calif ornia, o r anywher e  else fo r tha t m atter, "
St eve K ean, a n  En ron e xecuti ve  vicepresi de nt, assu red the U.S. Senate dur ing 
J anuar y t estimony.  "W h atwe are in tere sted in is  co mpe titiv e a n d 
we ll-f u nc tio n ing m arke t s. Our fi n an cia l su ccess is no t b uil t onCal i fornia 's back." 
More powe r  companies are  try i n g t o e m ulat eEnron's succes s b yi n vestingin  
elaborate  trading  f l oorsand ag gressi vely re c r ui t ing th e br igh test MBAs  ou tof grad ua te school s. Wi lliams  Energ y  eme r g ed as one of its  indu s t ry'sm ost  prof it able co m pani es 
last y ear by capi talizi ng o n ele ctricit ypriceswi ng s from its 

 
traders._
Spread through_seven floors at Enron's_Smith Street_headquarters_in Houston,_
the_energy specialists among_the company's 1,500_traders try to divine_where 
prices are_headed,_and then swap electricity and natural gas contracts like 
stocks and bonds. 
"You can_walk_into that_trading_room_and if you didn't already_know that you 
were on_Smith Street_in Houston, you would swear you were on_Wall_Street in 
New_York," said Shannon Burchett, chief executive officer of Risk_Limited 
Corp., a Dallas energy consultant._
Although energy is_its_main_business, Enron also trades_many other 
commodities, including paper, lumber,_steel and broadband access to the_
Internet. 
Enron's trading strategy remains a mystery_even to industry analysts, partly 
because_the company considers its techniques_to be_proprietary. 
Using a team of_mathematicians and meteorologists,_Enron's traders_try to 
identify_places where the company can buy_electricity at the_cheapest price 
and then deliver it_for_a higher price_somewhere_else._The traders_post the 
prices_at_which it_will_buy and sell electricity. 
Enron's trading_savvy_yielded a big payoff last year. 
The_trading business posted an_operating_profit of $1.6 billion,_up 160 
percent from $628_million in 1999. When electricity and_natural gas_prices 
soared_to record highs in the fourth quarter, Enron's trading profit more_
than tripled, from $151 million to_$538 million. 
Without providing_specifics, Enron_officials_said the profits_poured_in from_
all over the country, not just California._
"Contrary to_what you may hear or read,_our success is linked_to_efficient 
markets, not higher prices in_California, or anywhere else for that_matter," 
Steve Kean, an Enron_executive_vice_president, assured the U.S. Senate_during 
January testimony. "What we are_interested in is_competitive and 
well-functioning markets. Our financial success_is_not built on California's 
back." 
More_power_companies are trying to emulate Enron's_success_by_investing in 
elaborate trading floors_and aggressively recruiting the brightest MBAs_out 
of graduate schools. 
Williams Energy emerged as one_of its industry's_most profitable companies 
last year_by_capitalizing_on electricity price swings from its 
