0 CD N 0 (%4 0 0 0 w Enron Energy Services All Employee Meeting March 27, 2001 ( During the meeting, submit your questions by e-mail to: taik2us~enron.com ) Confidential .~ Pro prietacy Agenda w Introduction ) Vision Expectations 2000 Review Customer Video 2001 Targets * Retail Market Overview Strategy/Themes Organization Awards Q&A Close '-)'Ouring the meeting, submit your questions by e-mail to: talk2us@enron.com (- Confidential & Propneta,y C, * 0 f'4 0 0 0 @3 I.- C-) Introduction Perceptions: * Market is "rjpe" for EES value proposition Basic retail value proposition is on solid footing * Earnings power of the organization is high despite recent market and organization turmoil * Deregulation and access is important * High-quality people * Not without our challenges that need to be addressed now if we are to reach our goals in the future * These challenges are consistent with the lifecycle growing pains of other successful Enron businesses * It is time to make the move from "concept stock" or start-up to a consistent and growing earnings performer in the Enron family ->During the meeting, submit your questions by e-mail to: talk2us@enron.com (- Confidential & Propriete,y '-.4 0 0 0 0 Agenda U' Introduction Vision Expectations 2000 Review Customer Video 2001 Targets * * * Retail Market Overview Strategy/Themes Organization Awards Q&A Close -~Ourlng the meeting, submit your questions by e-mail to: talk2us@enron.com E- Confidential & Proprietary + ( * * 0 'vi 0 a cv, V w Vision Enron's New Vision: From "The World's Leading Energy Company" to..."The World's Leading Company EES's Vision: "The World's Leading Energy Retailer and Enron's Leading Division" As Defined By: * The Talent of Our Employees * Our Work Ethic * Our Innovation * Our Growth and Profitability Our Customer Relationships Our Iruegrity In How We Work With Each Other Our Culture of Success, Hard Work and Fun This is the place to be in Enron! -> During the meeting, submit your questions by e-mail to: ta1k2us@enron.com *- Confidential & Propdefary 5 N Agenda U., Introduction Vision Expectations 2000 Review Customer Video 2001 Targets 4 4 4 4 4 4 Retail Market Overview Strategy/Themes Organization Awards Q&A Close 4 4 C. 4 4 4 6 -~' During the meeting, submit your questions by e-mail to: tatk2us@enron.com (- Confidential .~ Proprietary I- Expectations LU * Meet Our Financial and Non-Financial Targets * Build for the Future . Focused and Accountable * High Performance Culture * Nimble/Continual Reinvention * Open Communication, Respect and Integrity: "No separate agendas or games" * Work Hard/Play Hard * Tight Business Plans and Crisp Execution * Earnings Machine * Continual Personal and Corporate Growth: "Raising the Bar" * Understanding of Value and Continual Innovation * Individual and Corporate Integrity ->During the meeting, submit your questions by e-mail to: taV2usc~enron.com (- Confidential & Propre~ary 7 c~) a Agenda w Introduction Vision Expectations 2000 Review Customer Video 2001 Targets Retail Market Overview Strategy/Themes Organization Awards Q&A Close ->During the meeting, submit your questions by e-mail to: ta3k2us@enron.com 4- Confidential & Proprietary + C * * 0 I 0 Enron Energy Services I- EBIT Annual (Millions) $103 ($68) Original Target -~During the meeting, submit your questions by e-mail to: talk2us@enron.com *- Confidential & Proprie~ar,' 1999 U, 0 0 C., C4 0 0 Enron Energy 1- Revenues ->During the meeting, submit your questions by e-mail to: taII~2us@enron.com *- Con f.idenliai & Proprietaty to 0 Enron Energy Services TCV Growth (Billions) TCV = Total Contract Value ->Ouring the meeting, submit your questions by e-mail to: talk2us@enron.com <- Confidential ~ Proprietary $16.1 $1 T 11 1997 1998 1999 2000 I I.- 2000 Achievements UJ * Customer Satisfaction * Employee Satisfaction 4- Achieved 4.0 on overall and Development: account management - Significantly improved satisfaction which meets the ETC response rates on 5 referral threshold key communication Did not meet 4.2 goal on questions overall satisfaction due to average scores in billing. 4th quarter trend improving * E-commerce in billing - Piloted San Diego microsite Achieved 4.1 on likelihood to for customer acquisition recommend Enron ->During the meeting, submit your questions by e-mail to: talkZus@enron.com (- Con fiden(iaI & Propdetor, 2000 Achievements Our Customers C~IJ SIAt~ ttMvCm-~jt - TI.~ U.~IsA'rpLjr~ U SI1~{QNS [Springs] OttQuaker (~~) Geaerai Growth Properties, Inc. .5~ ..>9i~ ~IAR?~ 0TARGET~ CHASE ~Aener~t Cabiti LDC KhfNWD JwA~iT~I~~ SONY RIDc3ID S. SONOCO PARK PLACE. INTIRTA~NMU4T Lu~;7.d~ogie, 0 ~ Thflium ~PoIaroid AFFLEED MATERIALS Hiltc,n ~XC~LS~ 410Th. (~)SAFEWAY limited ~ Stiller ~ PACIFIC~4BELL Bankof America Gartner F~ni f4~ A1L'ar~sorts V$I~RDS*En VAi4* C REXAM Prudential Fidctd4' Iiwe5f*rlcfts 01 Fitestong 8..ib Is 11.4 h~sk~ (..) Qusbeco WufI.Z Ci:~a $vsuiii uAp~ STARWOOD TnQuint '~. Pt LKINGTON SEA4DL~TOR COMPAQ -~ During the meeting, submit your questions by e-mail to: talk2us@enron.com E- Confidential & Proprietary C',) C") t~4 2000 Achievements 0 Europe ->Duririg the meeting, submit your questions by e-mail to: talk2us@enron.com <- Confidential & Propdetary Gross Margin (Millions) EBIT I ftA;3II,-....~ 14 0 D 0 0 2000 Achievements: I- Europe/Enron Direct ->During the meeting, submit your questions by e-mail to: talk2us~enron.com E- Confidential & Proprietofy Customer Sites Electricity Volumes (Twh) C) Agenda * Introduction * Vision * Expectations * 2000 Review Customer Video 2001 Targets Retail Market Overview StrategyiThemes Organization Awards Q&A Close -> During the meeting, submit your questions by e-mail to: talk2us@enron.com E- Confidential & Proprietary C, 16 0 r~j C) Agenda LU Introduction Vision Expectations 2000 Review Customer Video * 2001 Targets Retail Market Overview Strategy/Themes Organization Awards Q&A Close ->During the meeting, submit your questions by e-mail to: talk2us@enron.com E- Confidential & Propaetary 4 4 * 4 4 17 C,.) 0 2001 Financial .ar~jt~i~ F- EBIT 2000 Actual (Millions) I- $103 2000 2001 Targets (Millions) ->During the meeting, submit your questtons by e-mail to: talk2us@enron.com *- Con fidential & ProprIetary 18 Q2 03 Q4 ~UU1k cY.~ N 2001 Financial Targets k V EBIT By Geography talk2us@enron.com <-. -~During the meeting, submit your questions by e-mail to: Confidential & Propdeiaty 2001 Financial Targets TCV 2001 Targets (Billions) $7 $6 [7F7 ~During the meeting, submit your questions $8 by e-mail to: ta1k2us@enron.com <- Confidential ~ Proprietaty CE) 0 0 C~) N I.- C) w $30 ~~ 1. t.~ I* I J. .,~ 2001E $9 (0 0 0 0 C) 2001 Non-Financial Goals w * Customer Satisfaction Increase number of customers above 4.0 referral target by 20%. Enhance the Customer Satisfaction program to accommodate growing customer base. * Employee Satisfaction & Management Development * Diversity increase MWBE procurement - Goal: 12% Implement integrated diversity program to improve AAP underutilized job groupings: within 80% of AAP goal in all classifications - Drive continued improvement on "Pulse" survey's 5 core communication questions - Substantially upgrade training and development across all EES ->Durlng the meeting, submit your questions by e-mail to: ta1k2us@enron.com *- Confidential 8 Pwprietaiy Agenda 0 uJ C, * Introduction * Vision * Expectations * 2000 Review * Customer Video * 2001 Targets + * Retail Market Overview Strategy/Themes Organization Awards Q&A Close ->During the meeting, submit your questions by e-mail to: talk2us@enron.com (- Confidential & Pivprietay Fundamental Improvement C.) In Market Environment * Despite turmoil in California, re-regulation for "our" target customers unlikely * Increasing backwardation and upward shift in energy prices plus increasing volatility has significantly increased demand for Enron products and improved Enron value proposition in regulated and deregulated jurisdictions * Utilities will abandon regulated merchant services, expanding retail opportunities * Legislative deregulation most likely to slow... Need to find innovative new channels to achieve "access~ in short run - Private branding/ white labeling of our products - Muni "opt out" - Merchant acquisition of customers in large blocks * In the medium- and long-run continue to press for deregulation and choice -~During the meeting, submit your questions by e.mail to: talR2us@enron.com <- Con fkJendaI & Proprietay a 0 QI I- California w Continue to honor our customer commitments ItRe~sourcedu power to utilities given PG&E and SoCal Edison's failure to pay the negative CTC * Bail out of utilities through state acquisition of transmission increasingly likely * Probability of collection of negative CTC receivable very high * Neither EES nor Enron will be negatively financially affected by California * Fundamental problems in California are: - Short supply given high demand growth - No new construction in years and difficult permitting and construction environment - Dry Pacific Northwest - Fixed tariff eliminated price signals to consumers California authorities are not fixing the fundamental problems: This summer could be very difficult Choice for California's larger customers (C&l) is increasingly likely ->Durlng the meeting, submit your questions by e-mail to: ta~k2us@enron.com <- Confklenllal & ProprIetary 0 U*) 0 0 0 0 Why Re-Regulation Won't Happen 1±1 18 Mergers Pending -> During the meeting, submit your questions by e-mail to: talkZus@enron.com ~- Confidential ~ Proprietary ( * 38 Utilities Recovering Stranded Costs 26 Mergers Where * $40 Billion in Electric Utility Assets Generation Sold Changed Hands Energy Price Impact On Companies' Operating Expenses 2000 Commodity Prices Energy Cost as % of Total ~ ~'r~ruC~C (SIMWIi) Fast Food Restaurant With or Without Deregulation, Impact of Rising Energy Costs Will Increase Demand For Enron Products 1- C w N.tuml Gas. Hazamy Hub 1 -Pow 'a- C~Iir.naI~ Nw.v E~wbmngq Nat. ~ ($lmmbtu) sn.og SID.OD SLOD 56.00 s'-D0 sz.0b so-Qo Jan.00 Dec.00 Hotel Mall ->During the meeting, submit your questions by e-mail to: talkZus@enron.com <- Con fidentiai & Proprieten.v (N 0 tv~ N 0 6) V Agenda w Introduction Vision Expectations 2000 Review Customer Video 2001 Targets Retail Market Overview Strategy/Themes * * Organization Awards Q&A Close ->During the meeting, submit your questions by e-mail to: taIk2usc~enron.com (-. Con fideneisi & Propnetery * Strategy/Themes * Increased focus on value * Significant increase in accountability * Build a scalable business model: process, components and standardization * Employ the "right" business model for the chosen market * Greater understanding of risk and a more complete accounting for risk and costs in our contract pricing Respect for process, controls and approvals: the basics of business Better alignment & coordination: one strategy, one agenda and one company Knowledge-based organization: "packaging" not '~heavylifting" Crisper execution Need to start considering our balance sheet and funds flow (cash) in our business Need to enforce and protect our agreements: protect value and trade up Demand excellence: cultivate high performers - quickly manage performance issues ->During the meeting, submit your questions by e-mail to: talk2us@enron.com *- Confidential & Proprietary cv) r4 Strategy/Themes C, w Technology is core and strategic More market signals moving quicker from the back to the front Greater velocity and number of new products: must accelerate the innovation in our DSM product - focus on commodization and curtailment Eliminate distractions and none-core business Shorten deal closure cycles and increase deal velocity Restructure our pricing, delivery and execution infrastructure Low cost provider: best-in-class customer acquisition and maintenance costs Explore new templates appropriate for our markets that make us more responsive: legal, credit, finance, regulatory and risk * Manage, price and compartmentalize risk more comprehensively * Eliminate hierarchies, flatten the organization - promote a partnership * Laser focus on growth, innovation and earnings -~ During the meeting. submit your questions by e-mail to: talk2us@enron.com (- Con fidentiei & Proprietaty In I I- 0 Agenda * Introduction * Vision * Expectations * 2000 Review * Customer Video * 2001 Targets 4 4 4 4 4 Retail Market Overview Strategy/Themes Organization Awards Q&A Close -~ During the meeting, submit your questions by e-mail to: talk2us@enron.com E- Confidential & Proprietor, I C-) Organization uj General: * Need to address these plus other issues - NOW! * Re-organization promotes and solves many of our issues * May take a quarter or two to fully reach the benefits * In the meantime, stay focused - particularly Q2 * Change is positive and healthy -~During the meeting. submit your questions by e-mail to: ta1k2us@enron.com (- Confidential 8 Proprieta~ry 0 2- Organization U.) Partnership Model: * In the interest of reducing hierarchies, flattening the organization and enfranchising our leaders, we are creating the EES Executive Committee and EES Operating Committee * Groups will meet periodically to discuss and implement broad strategy, tactical objectives and organizational issues ->During the meeting, submit your questions by e-mail to: taIlZus@enron.com E- Confidential & Proprietary I C.) Organization -~During the meeting, submit your questions by e-mail to: talk2us@enron.com E- Con fidential & Pro pnetary 33 II) 0 Support Services 0 UJ ->During the meeting, submit your questions by e-mail to: talk2us@enron.com E- Confidential & Propneteiy 0 Segments U w ->During the meeting, submit your questions by e-mail to: ta1k2us@enron.com & Confidential & Proprietary CD 0 Segments w Gen oral: * Separate marketing strategy and products from target market and business model * May be very different business models, cultures, cost structures, etc. employed across these segments but share common scale services * Bright line customer ownership across these segments: in progress * Each business team responsible for: - Marketing strategy: "outsourcing, "regional commodity", "Enron Direct", "certified energy planner", etc. (may be more than one) - Further segmentation/channels - Product definition and sales - Acquisition and maintenance model - EBIT targets * Value focus * Agreement on customer split between wholesale and retail in progress - memo to follow -~. During the meeting, submit your questions by e-mail to: talk2us@enron.com <- Confidential & Proprietay Segments Energy Outsourcirig Energy Portfolio Enron Direct USA Management Greater than 530MM per annum Any size if greater than 100 sites Less than $3OMM per annum and greuter than $1 0MM ner annum Less than $1 0MM per annum Less than 100 Greater than 100 Any number "Enron sales force": Enron sates force" to Channels1 campaigns, High cost/high touch/ "New moder/low costflow Enron Direct push, internet fixed cost touciWariable cost pull High touch/dedicated Lower touch to call center Lowest touch to call center Upsell/relationship group High Low: packaging Lowest to none High Low: component-based Lowest: component-based National National or regional Regional and opportunistic High: corp buyers High or low: corp or Low/none regional_buyer Less than 300 1000's 10,OOCYs * Low It/high margin per High It/low margin per deal High #ilow margin per deal * deal -~During the meeting, submit your questions by e-mail to: talk2us@enron.com <- Confiden~iaI & Propnetu,y I 0 0 C, I..- () w C") CD 0 Segments (cont'~) 0 w Energy Outsourcing ~nergy Portfolio Enron Direct USA Management Yes Yes Yes Tariff, URA Components: Tariff, URA None Infrastructure, lighting, Limited infrastructre Limited, small box curtailmentlPMC & real- depending on sire, lighting, technology, time metering real-time metering & curtailment curtailmentlPMC Maybe, in conjunction with Limited None Commodity & OSM Yes IYes* None ->During the meeting, submit your questions by e-mail to: talk2us@enron.com <- Confidential 8 Pi'oprietey CD 0 CD C (~,I C 0 a) I.- Client Management w Need to "commercialize3' and align with the Energy Outsourcing business: current account management and VEG functions Vision: - Sized/designed to match segment and maintenance model - Reduce redundancy, client confusion and increased commercial focus - Align with the segment or channel - Manage customer satisfaction plus protect and enhance the value of the portfolio - Broaden objective: * Subject matter specialists * Structured and strategic upsell * Client satisfaction * Restructurings - entire portfolio * Non-structured up sell * URS/Soft option execution - Will manage client satisfaction for both the Energy Outsourcing and Energy Portfolio Management Groups until the EPMG group determines its best course of action ->Durlng the meeting, submit your questions by e-mail to: talk2us@enron.com (- Confidential & Pmprietary In CD 0 a, 0 0 a, V Product Management Group LU * "Nests": product development and management groups inside all three segments accountable to the segment leaders * Maintains a number of centralized responsibilities, as a result reports to the OOC as well Vision: - "Nests" * Broadly increases our products available to the channels * Dramatically increases the velocity of new innovative product deveiopment * Taps into other new product components like "weather", etc. * Provides deal support and pricing matrices - Central * Rapidly shares new innovations and technologies across all the segments 40 -*Dwinng the meeting, submit your questions by e-mail to: t~Ik2us@enron.com <- Con fidential & Proprietary CO 0 C-, Product Management Group uJ * Vision (cont'd~j: o eritral * Promotes greater communication across the organization to the sales forces and the channels - Products - Market signals - Prices * Develop technology tools - Intranet or internet communication * Provides comprehensive economics for deals, campaigns and new business initiatives * Develops standard product components (assuming demand, lasic product terms and conditions1 pricing parameters and profitability) * Defines and implements appropriate procedures and processes * Works closely with the Structuring group to manage deal flaw * Manages the deal pipeline 41 ->During the meeting, submit your questions by e-mail to: talk2us@enron.com (- Confidential ~ Propdetary C', 0 0 di I- Segments w EES Office of the Chairman Energy Outsourclng Mann - Industrial GNO Client Management Muericti -' Accou~tMgmt VEG ~'UtiIity Representation: Energy Portfolio Mgmt Slachman I ____ 3 Commercial GNO Sctwarz * Fast Track * Sutter Reg~~nal Comrnodit~. Sharp Product Management ZdunkewlczANood Enron Direct USA Gahn 11 Reglonal Commodity. Sharp * Mass Market Initiative EElS Kettyle I .~ro~uct Management in Fast Track Market Deviopment in Regional Commodity -. Product Development.......................................- ->During the meeting, submit your questions by e-mail to: Ialk2us@enron.com (- Confidentiai & Proprietary U F ( Structuring Structuring ii L......................9 Holmes ->During the meeting, submit your questions by e.mail to: taik2us@enron.com E- Confidential & P,oprietaiy N 0 0 C-) Structuring Group w Centralized reporting to QOC * Vision: - Disciplined implementation of "Gutenberg" processes - Disciplined implementation of standardization and components necessary to scale and manage risk - Proper booking and pricing of transactions/deals - Independent look and verification: Arbiter of value - Manage the DASH process - Responsible for the development, management and "sole" owner of appropriate business or deal models - "Protects" the back-office and risk from poorly structured or processed deal flow -~During the meeting, submit your questions by e-mail to: talk2us@enron.com E- Confidential ~ Proprietap,' 0 N 0 (4 0 0 V I- 0 Structuring Structuring Holmes Gutenberg Underwriting AlP Hurt Structuring (From Origination) Knowledge Management I -~During the meeting. submit your questions by e-mail to: ta1k2us@enron.com E- ConI~dentia( & Proprie~aiy I-.. 0 a, 0 4, Enron Energy I- 0 Risk Management & Sourcing 46 -~' During the meeting, submit your questions by e-mail to: taIk2us@enron~com <- Confldential & Pmprietay * Volume.' Conswnprion * Inventories 0 C C.) U U 3'UiWU Risk Management ~ * Reports to OOC; note change in name * EOL to provide wholesale liquidity; wholesale book transfer to ENA * Develop world-class ability to manage dretail~) risks * Facilitate deal flow, product development and information transfer * New risk policy being defined - memo to follow * Better identify, manage and compartmentalize risk components * Research - Centrally controlled by risk; manages and prioritizes projects Power Desk - Manages ancillaries, wholesale aggregation and retail load following - price only - Split into East and West . Gas Desk - Manage gas risk -* During the meeting, submit your questions by e-mail to: taik2us@enron.com (- Confidential ~ Proprietary 0 0 C" N I- Risk Management Options Desk - New options book formed recognizing the importance of the ability to price, manage and monetize optionality in our deals and the portfolio Site Profile Desk - Manages volume and consumption risk including load profiles by portfolio, customer, site and geography - Manages customer site and customer energy infrastructure inventories * Tariff Desk - Increasing focus on identifying and managing risk appropriately - Need to find more innovative ways to manage risk - Greater alignment of the Corporate Regulatory Affairs group Billing/Services Desk - Provide a template of services and prices - Manages and executes on these requirements - Controls the execution capability to provide greater alignment ->During the meeting. submit your questions by e-mail to: talk2us@enron.com E- Confidential & Propdet&y N I 1- ~a~um3h'd~Um~g'E Risk Management ~ Matrix Products/Secondary Commodities - Provides daily matrices for pricing to sales organization - Manages secondary commodities DSM Book - Vision: - Limit infrastructure products to those activities that can be commoditized and managed in a vendor managementl packaging approach - Need to transfer from the "heavy lifting" model to a "knowledge-based" model - Emphasis on "hard value" optionality - Emphasis on technology that can allow us to extract the value of the option plus manage vendors more appropriately - Will require national supply chain - Mark activity to Best-in-Class curves - Significant measurement and verification process - Syndicatable risk/contracts ->During the meeting, submit your questions by e-mail to: talk2us@enron.com (- Confidenftal & Propneteiy In F.- 0 0 0 0 9 I- Risk Management ~ Sourcing w DSM Book - Vision (cont'd): - Create bid/offers based upon what can be purchased and sold - Manage due diligence more completely through geographic, industry and climate profile versus labor-intensive models if possible - Align execution capability inside the book to increase accountability and focus -~.Ouring the meeting, submit your questions by e-mail to: talkZus@enron.com (- Confidential & Pioprle?aiy Co 0 C'4 0 0 Enron Energy Services: 1- Risk Management & Sourcing -> During the meeting, submit your questions by e-mail to: talk2us@enron.com ~E- Confidential & Prop~"ietaiy N N I- U w Process & Resource Re-Engineering I, Process & Resource Re-Engineering Me~sinaISprulell -) During the meeting, submit your questions by e-mail to: talkZus@enron.com (- Confidential & Proprtetay 0 Process & Resource Re-Engineering C-, w Reports to OOC Vision - Staff function and incubator that "re-thinks" and helps restructure and implement changes in the client management, DSM and IAM/EAM organizations - Manage transition and restructuring - Singular call center strategy/implementation - Singular billing ("CSC") services strategy/implementation - Re-think DSM product: take to "new"' level * Valuation * Execution * Monetization * Product definition including standardization * Legal and accounting ->Durmg the meeting, submit your questions by e-mail to: talk2us@enron.com E- Confidential & Pro priet an,' a, 0 0 0 Process & Resource Re-Engineering Process & Resource Re-Engineering MesslnalSptuell Call Centers Operations U. DSM Products -~During the meeting, submit your questions by e-mail to: talk2us@enron.com <- Confidenlial & Proprietay ( I Ct) N New Business Ventures () w C- New Business Ventures Muiler { tAerchar~t Acquisitions Ader Power Quality Melvin K Distributed Gen~ 1 & Sourcing ~~~mstein .9 r TNPC Williams J Corp. Development Golden/Williams -> During the meeting, submit your questions by e-mail to: talk2us@enron.com <- Con tYdentiai & Proprietary 0 0 Iv, 0 New Business Ventures * Merchant Acquisitions - Identifies innovative ways to acquire large blocks of customers in deregulated and regulated markets - Facilitates "virtual access" to customers behind munis and IOU's in regulated markets * Power Quality - Defines power quality and reliability product: take to commercial level quickly - Aggregation strategy as a principal; Technology agnostic ->During the meeting, submit your questions by e.maEI to: talkZus@enron.com E- Confidential & Pro pri etaq 0 0 (9 (\J 0 0 C) New Business Ventures Distributed Generation and Sourcing - Shore up EES "supply curve'1 - Actively idenbfying and implementing distributed generation opportunities that manage risk or promote profit opportunity Develops vendor relationships with the generators to augment our ability to manage our risk; particularly congestion, capacity, load following and ancillaries * TNPC - Manage our relationship with TNPC -~During the meeting, submit your questions by e-mail to: taik2us@enron.com (- Confidential & Proprietary 0 0 0 0 e~j Europe 0 w -)Dwing the meeting, submit your questions by e.mail to: ta1k2us@enron.com (- Confidential & Proprietary Canada Canada I Milnlhorp ) I' hi. Enron Direct Canada I -* During the meeting, submit your questions by e-mail to: taIl~2us@enron.com *- Con fidenejal & Proprietary 59 EFS EarleANhaley -*During the meeting, submit your questions by e-mail to: talk2us@enron.com (- Confidential & Proprietary 0 U' so I Support Services w -> During the meeting, submit your questions by e-mail to: ta1k2us@enron.com (- Confidential & Pioprietary 51 Vendvr Mgmt Training a, I 0 0) I- Agenda LU introduction Vision Expectations 2000 Review Customer Video 2001 Targets Retail Market Overview Strategy/Themes Organization Awards Q&A Close -~Dudng the meeting, submit your questions by e-mail to: taIk2usc~enron.com E- Confidential & Proprietai'y + * 3 04t a, 0 ex~ 0 Awards: a) I- Power Players Heather Mitchell Elizabeth Howley Tom Munoz Ed Jerome Stacie Harrison Bibiana Norton Rob Davis Chuck Allured AndyWu Karen Harrison Mtcah Hatten * + * Debra Blake Jeanette Reese Humberto Cubillos Ursula Brenner Steve Nguyen Jeff Parker Judy Smith Jennifer Rudolph Nicole Schwartz Richard Miller Maurice Winter ->During the meeting, submit your questions by e-mail to: tail2us@enron.com <- Confidential & Proprietary 4 63 0) 0 ai Awards: Chairman's Award Deb Merril Q42000 Chairman's Award Because of Deb Merril's truly exceptional contributions as Director of Commodity Structuring, she has been selected by her colleagues to receive the EES Chairman's Award of Excellence for the fourth quarter 2000. Deb has been and continues to be highly instrumental in the success of many of our deals, most recently Pilkington and Owens Corning, working tirelessly to keep team members current on the status of the ever-evolving dynamics of the marketplace and the subsequent issues facing our deals. In addition, Deb has consistently gone above and beyond the call of duty to balance multiple client meetings from the road and leaving her MBA classes to address emerging deal issues. She has also worked with the deal teams on the weekends and late into the night to ensure that our clients had solutions that could confidently be presented and approved by their boards. Driving our innovative environment is a diverse population of professional backgrounds and experiences. Deb aiways takes the time to appreciate the alternative opinions and consistently works towards the common goals of the team. Most impressive, however, in the urgent environment we know as Enron, she never compromises the notion of treating each team member with the utmost respect. Deb's attitude, creativity and drive have truly made a difference to EES. Her work ethic and dedication to finding the best deal structuring solutions for our customers distinguish her as an individual committed to excellence. Thank you, Deb, for your many contributions to EES! -~'During the meeting, submit your questions by e-mail to: talk2us@enron.com E- Confidential & Proprielary 0 0) M 0 0 0) I- Agenda w Introduction Vision Expectations 2000 Review Customer Video 2001 Targets 4 4 * 4 4 Retail Market Overview Strategy/Themes Organization Awards Q&A Close ->During the meeting, submit your questions by e.maII to: ta1k2us@enron.com 4- Confidential & Proprietor,' 4 4 4 4 4 0 N 0 0 I- Agenda U.' Introduction Vision Expectations 2000 Review Customer Video 2001 Targets 4 .4 4 Retail Market Overview Strategy/Themes Organization Awards Q&A * Close ->During the meeting, submit your questions by e-mail to: talk2us@enron.com (- Confidential & Pi'ctprietary 4 4 4 4 66 3