Boomberg - 02/01/2001

Enron to End Direct Sale of Power to Large Businesses, NYT Says
Bloomberg, 02/01/2001
Enron Will Honor Customers' Contractual Commitments (Update1)
Bloomberg, 02/01/2001

Enron to End Direct Sale of Power to Large Businesses, NYT Says
2/1/1 3:35 (New York)

Houston, Feb. 1 (Bloomberg) -- Enron Corp., the biggest
energy trader, is to stop selling power directly to large
industrial and commercial companies as financial pressure in the
power market mounts, the New York Times reported on its Web site,
citing the company.
The decision will affect companies such as Cisco Systems
Inc., Genentech Inc. and Clerox and could potentially raise the
rates they pay for power by more than 35 percent, the paper said.
Customers will immediately be switched from Enron's Energy
Services unit, which helps companies find ways of reducing their
overall energy costs, to the Pacific Gas & Electric Co., the paper
said. It isn't clear whether companies will receive compensation
from Enron for the loss of agreed discounts and low rates, the
report said.
Enron's decision will force the State of California to buy
more power on a emergency basis, the report said. The State has
already stepped in to aid Pacific Gas & Electric and Southern
Californian Edison, who say the rising price of wholesale power
has left them on the verge of bankruptcy, the NYT said.

(New York Times, 2/1)

To view the NYT's Web site enter {NYTI <GO<}

--Claire Shoesmith in the London newsroom (44) 020 7673 2659 or
cshoesmith@bloomberg.net /cp

Enron Will Honor Customers' Contractual Commitments (Update1)
2/1/1 6:4 (New York)

Enron Will Honor Customers' Contractual Commitments (Update1)

(Adds share price in sixth paragraph.)

Houston, Feb. 1 (Bloomberg) -- Enron Corp., the biggest
energy trader, said it will honor contractual commitments to
customers when it transfers their power supply from its Energy
Services unit to Pacific Gas & Electric Co.
Earlier, the New York Times reported it wasn't clear whether
companies would get compensation from Enron for the loss of
agreed discounts and low rates. The Times also said the transfer
may raise by more than 35 percent the rate companies such as
Cisco Systems Inc., Genentech Inc. and Clorox Co. pay for power.
``We are honoring our contractual commitments to our
customers and the customers' expenditure will not change,'' said
Enron spokeswoman Peggy Mahoney in an interview.
Enron's decision to stop selling power directly to large
industrial and commercial companies, brought about by increased
financial pressure in the power market, will force the State of
California to buy more power on a emergency basis, the Times
said, citing the company.
The state has already stepped in to aid Pacific Gas &
Electric and Southern Californian Edison, who say the rising
price of wholesale power has left them on the verge of
bankruptcy, the paper said.
Enron shares rose $1.50, or 1.9 percent, to $80 yesterday.

--Claire Shoesmith in the London newsroom (44) 020 7673 2659 or
cshoesmith@bloomberg.net /cp/ck