Temporary VaR Limit Changes, Policy Changes

Today, December 7th, the Executive Committee of the BOD met and approved the
following temporary limit increases:

12/7 - 12/15 12/6
Aggregate VaR Limit $140 MM $100 MM

NA Gas $110 MM $75 MM ($60 permanent limit, + $15 Discretionary VaR on
12/6 + $35 Temporary VaR)

UK Power $20.3 MM $15.3 MM

Please revise the DPR accordingly.

For your information, the proposed limit changes and P/L notification level
changes we are submitting to the BOD are in the attached memo - these will be
effective the day of the BOD meeting, Tuesday 12/12, except that given market
activity, the NA Gas, UK Power, and Agg Enron VaR limits may be revised.
Given the changes that will be necessary next week to the DPR, that might be
a good time to re-format the reporting along the new business unit lines.
You can see how we did so in the policy attached.

Thank you,
Cassandra.