 must avoid policies that, 
while politically attractive, do not fix the problem or even make matters 
worse.  Price caps have been proposed.  They don,t work; have never worked; 
and they will not work here.  Price caps succeed only in creating shortages, 
which then have to be allocated among competing users.  Imagine how 
ineffectively the government would be in determining, for example, whether it 
is better to make its limited power supplies available to the Imperial Valley 
or Silicon Valley.  Price caps are a surefire way to make the current 
shortage worse.

The state has also proposed to take over generation and transmission in 
California.  There is no reason to believe, and every reason to doubt, that 
the state will be more effective than free markets at investing in, 
constructing, operating and maintaining assets.  This will also result in 
California tax revenues being spent on power transmission and power 
generation -- which the private sector can do -- instead of education, roads 
and other public goods -- which the private sector cannot do.

As you are approached by people outside the company or are learning about the 
crisis from the media, it,s important for you to know this:  We at Enron will 
continue to serve our customers and we will continue to propose real 
solutions to the state. [IMAGE] 	Search  Delayed Quote RT Quote Charting Earnings Ratings Competition Key Ratios Financials Insiders 	
	 TOOLS  [IMAGE] MAPS  [IMAGE] STOCKS  [IMAGE] FUNDS  [IMAGE] PERSONALFINANCE  [IMAGE] ECONOMY& BONDS  	


[IMAGE]	     At the End of the Day Today's Market      DJIA 9713.80 DOWN -58.05 Nasdaq 1882.53 DOWN -47.81 S?500 1119.31 DOWN -8.27 Rus 2000 469.43 DOWN -4.94 10 Yr Bd 4.92 UP.02 DJTA 2659.70 DOWN -7.55 FTSE 100 5149.20 UP 10.70 H. Seng 10797.70 DOWN -202.60 Nik. 225 10050.90 DOWN -229.30 DAX 5045.72 DOWN -24.02 Today's Sectors
must avoid policies that, 
 while politically attractive, do not fix the problem or even seduce matter 
 worse.   Price caps have been project.   They don,t work; have never worked; 
 and they will not sour here.   monetary value caps succeed only in creating shortages, 
 which then have to be allocate among competing users.   Imagine how 
 ineffectively the politics would be in determining, for example, whether it 
 is good to make its limited ability supplies available to the Imperial Valley 
 or Silicon Valley.   Price caps are a surefire room to make the current 
 shortage worse. 

 The state has also propose to take over generation and transmission in 
 California.   There is no reason to think, and every reason to doubt, that 
 the state will be more effective than free markets at investing in, 
 constructing, operate on and maintaining assets.   This will also result in 
 California tax revenues being spent on power transmission and power 
 generation -- which the individual sector can do -- instead of department of education, road 
 and early public goods -- which the private sector cannot do. 

 As you are approached by people outside the company or are learning about the 
 crisis from the media, it,s authoritative for you to know this:   We at Enron will 
 continue to serve our customers and we will continue to propose substantial 
 solutions to the state. [ IMAGE ] 	 Search   Delayed Quote RT Quote Charting Earnings Ratings Competition Key Ratios Financials Insiders 	
	  TOOLS   [ IMAGE ] MAPS   [ IMAGE ] stock   [ IMAGE ] FUNDS   [ IMAGE ] PERSONALFINANCE   [ IMAGE ] ECONOMY & BONDS  	


 [ IMAGE ] 	      At the goal of the Day Today's Market       DJIA 9713.80 DOWN -58.05 Nasdaq 1882.53 DOWN -47.81 S?500 1119.31 DOWN -8.27 Rus 2000 469.43 DOWN -4.94 10 Yr Bd 4.92 UP.02 DJTA 2659.70 DOWN -7.55 FTSE 100 5149.20 UP 10.70 H. Seng 10797.70 DOWN -202.60 Nik. 225 10050.90 DOWN -229.30 DAX 5045.72 DOWN -24.02 Today's Sectors
 mudt avoid policies that, 
wmile politically attracvive, do not fix the problem or even make mavterw 
worwe.  Price caps have bedn proposvd.  They eon,t qork; have isver wovhed; 
zkd thzy will not work here.  Priwe caps succeeg unpy in creating shortages, 
which then have tp he allocated aiong sompsnikg users.  Imagine how 
ineffectivsly the government wpuld be in determining, for exalple, whether it 
is better to nake uts limited oower supplies availabme to the Imperial Valley 
or Siuicon Valley.  Ptnxe fdps are a snrefirv way to make the cursent 
shprtage worse.

Thc stave hqs also proposed to teke over generation wnd transkiasion in 
Californua.  Thete is no fwasun uo ueljeve, ajd xvery reasoh to doubt, rhat 
the state will bq more effectibe thag sree markets at investing in, 
constructitg, kperating and maintainibg assets.  This will wlso resujt in 
California tax revenues being spent on powes traisoiswijv ajd power 
generation -- which the private sector dam co -- instead of education, towdx 
and other puclic gooda -- which the privahe sectjr cabnot do.

As you are approached by people oytside the cjnpany or are learnnng about thz 
crisos frpm the media, it,s importcnt fod you to knlw this:  Sd at Enron will 
zonninua to serve our customers agd we wilo coutinue tu prppose weal 
solutlons bm the state. [IMAGE] 	Dearck  Denayed Quotf RT Quote Charting Earnings Ravmngs Competitoot Kvy Ratios Finakcials Insiders 	
	 TOOLS  [IMAGE] MAPS  [NMAGE] RTOCKS  [IMZGE] FUNVS  [IMAGE] PEWSONALFINANCE  [IMAGE] ECONOKY& BONDS  	


[IMQGE]	     At gfe End of the Cay Today's Market      DJIA 9713.80 DOWN -58.05 Naxdad 1882.53 DOWN -47.81 S?500 1119.31 DOWN -8.27 Row 2000 469.43 DOWN -4.94 10 Yr Nd 4.92 UP.02 DUTE 2659.70 DORT -7.55 FTSE 100 5149.20 UP 10.70 H. Rene 10797.70 DOWV -202.60 Nik. 225 10050.90 DOCN -229.30 DAC 5045.72 DOWN -24.02 Today's Sectmrs
must avoid policies that, while politically attractive, fix problem or make matters worse. They work; have never and they will work here. Price caps succeed only creating shortages, which then have to be allocated among competing users. Imagine how the government would be in determining, for example, whether it is better to its power available the Imperial Valley or Silicon Valley. Price caps are a surefire way to make the current worse. The state has also proposed to take generation and transmission in There is no reason to and reason to that state be more effective free markets at investing in, constructing, operating and maintaining assets. This will also result in California tax being spent transmission and generation which private sector can instead of education, roads and other which the private sector cannot do. As you approached by outside the company or are learning the crisis from the media, it,s important for to know this: We at Enron will continue to serve our customers and we will propose real solutions to state. [IMAGE] Search Quote Quote Earnings Competition Key Financials Insiders TOOLS [IMAGE] MAPS [IMAGE] STOCKS [IMAGE] FUNDS [IMAGE] PERSONALFINANCE ECONOMY& BONDS [IMAGE] At the End of the Day Today's 9713.80 -58.05 Nasdaq 1882.53 -47.81 S?500 1119.31 DOWN Rus 469.43 DOWN -4.94 10 4.92 DJTA FTSE 5149.20 10.70 H. Seng 10797.70 -202.60 Nik. 225 10050.90 DOWN DAX 5045.72 DOWN -24.02
 must avoid policies that, 
whilE politicalLy attRacTivE, dO not Fix tHe problem or eveN Make Matters 
worse.  Price caps hAve beEn PRopoSEd.  they dOn,t work; HAvE NEveR wOrKed; 
AnD ThEy wilL noT work heRe.  Price capS suCcEed only in creATiNg shortageS, 
whIch then have tO be AllocaTeD amONg comPetIng usErs.  ImaGIne how 
IneffectiVeLY the goVErnment WOUlD be iN determining, for exAMpLE, whether it 
is beTter to MaKE iTS LimIteD power suppLiEs avaILable to THe iMPEriAL Valley 
or SiliCon Valley.  PrICe cAps are A sUreFIre way To makE tHE cuRrent 
shortaGe woRse.

The staTe has aLSo propoSEd to takE over gEneRatIon aND tRaNsmIsSIon IN 
CAliFOrnIa.  There iS nO rEason To beLIEVE, and EveRy reAson tO doubt, that 
the StaTe wiLL be More eFfectIve tHaN free MarketS at inVeSting in, 
construcTing, Operating And MaIntAiNing aSSets.  ThIs wIll Also resUlt in 
CaLIfoRnIA TAx Revenues being spent On POWeR transmiSsion aND pOwER 
generatIoN -- whIch tHE PrivaTe seCToR can do -- inStead oF EdUcAtion, roAdS 
and otHeR puBliC goodS -- WhicH the prIvate secTor caNNot do.

As you are aPProached by peoPLe OUTsIDe thE coMpany or are lEarnINg abOut tHE 
cRisIS from The meDiA, It,S Important for you to knOw This:  We At EnrOn will 
continuE to serve ouR CUStomers aNd we WIlL Continue to propOse reAl 
solutionS To the staTe. [IMAgE] 	Search  delayed QuOTE RT Quote chaRtiNg EArnINGs ratings CompetITIon KEy ratios FInaNcials INsiDerS 	
	 TOoLS  [iMaGE] MAPS  [IMaGE] STOCKs  [ImAgE] fUnDS  [iMAGE] peRSONALFiNaNCe  [ImAGe] ECONomY& BONDs  	


[IMAGe]	     At tHe enD Of tHe Day ToDAy'S mArkeT      DjIa 9713.80 DOWn -58.05 NaSdAq 1882.53 DOWn -47.81 S?500 1119.31 DOwn -8.27 RuS 2000 469.43 DOWN -4.94 10 Yr bd 4.92 UP.02 DJTA 2659.70 DoWN -7.55 ftSE 100 5149.20 Up 10.70 H. seNg 10797.70 DOWN -202.60 NIk. 225 10050.90 DOWN -229.30 DAX 5045.72 DOWN -24.02 toDay's SectorS
 must avoid policies that,  
while po litic all y a tt ract ive,  do not fix th e  pro blem or even make matt ers wo r se.Pr ice c aps hav e  b e e n p ro po sed .Th ey do n, t work;  have neve r w or ked; 
and th e ywill not w ork  here.  Pric e c aps su cc eed onlyincreat ing sh o rtages , 
whichth e n have to be a l l oc ated  among competingu se r s.  Imagine ho w 
ine ff e ct i v ely  th e governme nt  woul d  be ind et e r m ini n g, for exampl e, whetheri t is bet te r t o  makeits l im i ted  power supp lies  availabl e to t h e Imper i al Vall ey 
or  Si lic on V a ll ey . Pr i cec ap s a r e a  surefir ewa y tomake t h e  cur ren t 
s horta ge worse.

Th e s tate has  also  prop osed  t o tak e over  gene ra tion and transm issi on in 
Ca lif or nia . Ther e  is no  re aso n to be lieve,a ndev e r y  r eason to doubt, th at th e statewill b e  m or e  effecti ve  th an f r e e mar kets at  investi ng in, 
c on structi ng , oper at ing  an d mai n tain ing as sets.  T his w i ll also result in 
Californi a  t a x  r e venu esbeing spent  onp ower  tra n sm iss i on an d pow er 
g e neration -- which t he  priva te se ctor can do - - insteado f educatio n, r o ad s  
and other pu blicgoods -- w h ich thepriva te secto r cannotd o .

As yo u a reapp roa c h ed  by people ou t s ideth e compa nyor arelea rni ngabo ut  the 
cri sis from  t he  m ed ia,  it, s  importa nt  fo ryou  to k n ow thi s:  W e at  E nr o n w ill 
co n ti n u e to  s er ve o urcu stome rs a n d w e willcontinuetop ropo se  r eal 
so lutions to th estate. [IM AG E]	Searc h  Delayed  Quote RT Quote Chartin g  Earnin gsRatin gs C ompetitio n K ey Rat ios Financ ials I nside rs  	TOOLS [I MAG E]  MAPS  [IM A G E]STOCK S [IM AGE] FU NDS  [IMAGE] PERSO N ALF INANCE  [IMAG E]ECON O M Y&  BO N DS  	
[ IMA G E ]	     At the E nd of theDa y  T oday's Mar k et    DJIA  9713.8 0 DOW N  -58.05  Nasdaq 1 882.53 DO WN  -47 . 8 1 S ?500 1119. 31 DOWN-8.27 Rus 20004 69 .43 D OWN  -4.94  1 0 Y r Bd4.92 U P .02  DJTA  2659. 70  DOWN-7.55  F TSE 1005149.20 UP 10.70 H. Sen g 1079 7.70DOW N -202.60  Ni k . 2 25 10050. 90 D OWN -229.3 0 D AX5045. 72D OWN - 24.0 2  T oda y 's Se ctor s 
 must_avoid policies_that, 
while politically attractive,_do not_fix_the problem_or_even make matters_
worse.  Price_caps have been proposed._ They don,t_work;_have never worked; 
and they will not work here.  Price caps succeed only_in_creating shortages,_
which_then_have to be allocated among_competing users.  Imagine how_
ineffectively the_government would be in determining, for example, whether_it_
is better to_make its limited power supplies available to the Imperial_Valley 
or Silicon Valley.  Price_caps are a_surefire_way_to make the current_
shortage worse.

The state has also proposed_to take over generation and transmission_in 
California.  There is no reason_to believe, and every reason to_doubt, that 
the state will_be more_effective than free markets at_investing in, 
constructing,_operating and_maintaining assets. _This will also result in 
California_tax revenues being_spent on power transmission and power_
generation_-- which the_private_sector_can do_-- instead of_education,_roads 
and_other_public goods -- which the private_sector_cannot do.

As you are approached by people_outside the company or_are_learning about the 
crisis_from the media, it,s important_for you to know this: _We at_Enron will_
continue to serve our customers and we will continue to propose_real 
solutions to the state. [IMAGE]_	Search  Delayed Quote_RT Quote_Charting_Earnings Ratings Competition_Key_Ratios Financials_Insiders 	
	 TOOLS  [IMAGE] MAPS _[IMAGE] STOCKS_ [IMAGE] FUNDS  [IMAGE] PERSONALFINANCE_ [IMAGE] ECONOMY& BONDS__	


[IMAGE]	     At_the End of the Day Today's_Market    __DJIA_9713.80 DOWN -58.05 Nasdaq 1882.53_DOWN -47.81 S?500 1119.31 DOWN -8.27_Rus 2000 469.43_DOWN -4.94 10 Yr Bd 4.92 UP.02_DJTA_2659.70 DOWN -7.55 FTSE 100 5149.20_UP_10.70 H. Seng 10797.70 DOWN -202.60_Nik._225_10050.90 DOWN -229.30 DAX 5045.72_DOWN -24.02 Today's Sectors