Re: EOL Revenues

Call with any questions or comments. Georganne has reviewed my model and
assumptions and on the service agrees to the computation. In addition she
has asked for volumes associated with the revenues for 1999. I have enhanced
the model to calculate volumes associated with the revenues.
---------------------- Forwarded by Bob Shults/HOU/ECT on 01/25/2000 01:01 PM
---------------------------

From: Georgeanne Hodges 01/25/2000 09:10 AM

To: Melissa White/HOU/ECT@ECT, Evelyn Aucoin/HOU/ECT@ECT, Scott
Earnest/HOU/ECT@ECT, Laura E Scott/CAL/ECT@ECT, Beth Apollo/LON/ECT@ECT,
Scott Mills/HOU/ECT@ECT, Kristin Albrecht/HOU/ECT@ECT
cc: Wanda Curry/HOU/ECT@ECT, Bob Shults/HOU/ECT@ECT, Jan
Johnson/GPGFIN/Enron@ENRON, Gary Peng/GPGFIN/Enron@ENRON, Mary Lynne
Ruffer/HOU/ECT@ECT, Faith Killen/HOU/ECT@ECT, Troy Klussmann/HOU/ECT@ECT
Subject: Re: EOL Revenues

I believe that Troy Klussman had contacted many of you to get this process
rolling but I just wanted to reiterate that we need to get this done as
quickly as possible. The questions about EOL revenues and volumes are really
starting to roll in. Troy will continue to follow up on the ENA front and I
will be checking up on London and Global Liquids. Please call us with any
questions. I have attached a file created by Bob Shults that shows 1999
revenues by product for use as a reasonableness check. Bob can provide more
detail if you need it
.

---------------------- Forwarded by Georgeanne Hodges/HOU/ECT on 01/25/2000
08:58 AM ---------------------------
From: Georgeanne Hodges on 01/25/2000 08:54 AM
To: Jason Barra/LON/ECT@ECT
cc: Bob Shults/HOU/ECT@ECT, Donnah Blake/LON/ECT@ECT, Beth Apollo/LON/ECT@ECT
Subject: Re: EOL Revenues

Jason,

We are looking for a way to extract Enron On-line revenues and sales volumes
out of your regular upstream invoicing system that presumably feeds SAP.
For the first quarter of 2000 (and thereafter) Enron Corp. in seriously
contemplating disclosing in press releases, EOL volumes and revenues separate
from traditional volumes and revenues. They need to be able to get these
numbers out of our regular accounting records. The numbers that the EOL team
calculates out of their systems (which is not a financial system) can be used
to verify that the accounting numbers are being extracted correctly.

Currently for ENA, the EOL trade system feeds Sitara (deal capture) and
passes over an EOL deal number. Sitara assigns it's own deal number but
passes both numbers when it feeds our settlement & logistics system (Unify).
Unify currently feeds our general ledger but it is not set up to book based
upon the EOL tag, we are designing that into our SAP design. In the
meantime, we will query Unify and extract the portion of Unify revenues and
volumes that are EOL. We will then book a reclass into Hyperion to separate
EOL revenues from traditional revenues. We are currently using numbers
provided by Bob Shults for 1999 to verify that everything is working
correctly. We are finding valid timing differences due to assumptions that
Bob is making.

Unfortunately, a few of the products that are being traded or will be traded
on EOL do not feed into settlement systems like Unify but rather are invoiced
manually. We are having to identify a way to accurately capture those
numbers as well, so that they can also be reclassified in Hyperion.

This project has a pretty short fuse as there is much outside interest in EOL
and thus a great need to be able to accurately calculate sales revenues and
sales volumes.

Please call me with any questions that you have and keep me updated on your
progress.

Jason Barra
01/24/2000 06:33 AM
To: Georgeanne Hodges/HOU/ECT@ECT
cc: Bob Shults/HOU/ECT@ECT, Donnah Blake/LON/ECT@ECT
Subject: EOL Revenues

Hi Georgeanne,

Donnah mentioned that Bob Shults has the statistical information you required
for London EOL transactions but you require more supporting documentation to
back them up.

Would you be able to send me the reports and let me know the information you
are looking for. I will then be able to ask around the relevant people and
see what we can dig out for you.

Thanks,
Jason