Enron Overview Jeff Skilling Chief Operating Officer

Enron OverviewJeff SkillingChief Operating Officer

Total Return to Shareholder*January 1, 1990 to May 31, 2000 1,200 Enron Corp 1,224% S&P 500 417% Pipeline Avg 279% Utility Avg 195% E&P Avg 93% 1,000 294% 800 600 400 200 0 -200 Dec-91 Dec-94 Dec-92 Dec-90 Dec-95 Dec-98 Dec-93 Dec-96 Dec-97 Dec-99 May-00 *Dividends Reinvested in Security

Fourth Vision ? (2000- ) Enron’s Visions to Date Third Vision To Become the World’s Leading Energy Company (1995-1999) Second Vision Become the World’s First Natural Gas Major (1990-1995) First Vision Become the Premier Integrated Natural Gas Company in North America (1986-1989)

Physical Assets Contract Access Market Making The Energy Network Model Applications Utility Facility Operations & Management Fuel Management Services Energy Outsourcing eCommerce Applications Price Risk Management Contracts Peaking & Storage Services Physical Delivery Contracts Settlement Services Finance

Energy Communications Transportation & Distribution Wholesale Energy Retail Energy Broadband Services Enron Net Works • Bandwidth Managementand Broadband DeliveryServices • Seeks IT Commercial synergies • Natural Gas Transportation • Electric Distribution • Marketing and Delivery of Energy Products Worldwide • Energy Outsourcingto Commercial and Industrial Customers Traditional New

Energy Communications Transportation & Distribution Wholesale Energy Retail Energy Broadband Services Enron Net Works • Natural Gas Transportation • Electric Distribution Traditional New

Transportation and Distribution Operating Highlights Northern Border 1,214 Miles • Began construction for Florida Gas Transmission’s Phase IV expansion. Conducted Open Season for Mainline expansion. • Transwestern installed new compressor station in Gallup, NM increasing available capacity by 15 percent. • 99% Utilization of Northern Border’s Pipeline. • Currently conducting open season for C & D line extensions on Northern Natural Gas’ Pipeline. Northern Natural Gas 16,463 Miles Transwestern Pipeline 2,487 Miles Florida Gas Transmission 4,795 Miles Interstate Throughput (Bbtu/d) 9,785 9,151 • Throughput for 1999 was 9.2 Bbtu/d • Operates 32,000 Miles of Natural Gas Pipelines • Serves Customers in 21 states • Transports 15% of U.S. Natural Gas Demand

Wholesale Energy Operations and Services Income Before Interest and Taxes (Millions) Physical Volumes (BBtue/d) 32,429 $1,317 27,308 $968 17,970 $654 12,392 $466 $401 8,966 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 38% Compound Annual Growth Rate 35% Compound Annual Growth Rate

COB Hub COB ComEd Hub Hub Cinergy Hub Cinergy Hub Palo Verde Hub Palo Verde Hub Entergy Hub Henry Entergy Hub Hub Henry Hub PJM Hub Enron’s Wholesale Energy NetworkNorth America Marketing Offices Owned and Leased Capacity NYMEX Trading Owned Gas Storage Leased Storage COB COB COB Power Plants Hub Hub Hub In Operation In Construction Under Development Cinergy Cinergy Cinergy Hub Hub Hub Energy Marketing Activity Palo Palo Palo Gas Power Coal Verde Verde Verde TVA Hub Hub Hub Hub Entergy Entergy Entergy Hub Hub Hub Henry Henry Henry Hub Hub Hub Enron’s Extensive Network and Broad Range of Capabilities Offer Customers Higher Value Products at Lower Costs

Enron’s European Wholesale Network Nordic Region Market Maker and Largest Power Marketer U.K. Established Market Leader in Power and Gas Helsinki Nord Pool Total Volumes (BBtue/d) Oslo 3,243 Offices Energy Exchange LNG Project Under Development Energy Services Energy Partnerships Leased Capacity Utility Services Stockholm Teesside 1,875 MW Power and Other Wilton 154 MW Gas Amsterdam Moscow APX Oxford Warsaw 1,825 Nowa Sarzyna 116 MW EEX Brussels London Frankfurt Power Plants In Operation In Construction Under Development Energovill Enron/Petrom JV Zurich +78% Budapest Milan Jertovec Energy Marketing Activity Bucharest 240 MW Gas Power Coal Sarlux 551 MW Madrid 1Q99 1Q00 Marmara 478 MW Arcos 1,200 MW Continental Europe Only Significant New Entrant in Power and Gas

In Operation Power Plant Pipeline Other E&P LPG Facility LNG Facility Water Gas Distribution Electricity Distribution In Development Power Plant Pipeline Other E&P LPG Facility LNG Facility LNG Vessel Barge Offices Office Locations Enron Today: International Portfolio In Construction Power Plant Pipeline Other LPG Facility LNG Facility Teesside 1,875 MW United Kingdom London Poland Elektrocieplownia Nowa Sarzyna 116 MW Sutton Bridge 790 MW Germany Bitterfeld 125 MW Wessex Jertovec 240 MW Italy Milan Croatia Zagreb China Beijing Turkey Trakya 478 MW South Korea Seoul Western-Eastern China Natural Gas Pipeline Palestine Gaza Power Project Wuhan Loop Italy Sarlux 551 MW SK-Enron Gas Distribution LPG Import EOG Sichuan E&P Sichuan-WuhanNatural Gas Pipeline Dominican Republic Santo Domingo Puerto Rico San Juan LNG Vessel 135 Mc3m EOG - India 3,200 Bbls/d 38 MMcf/d Dabhol- Talasari Pipeline United Arab Emirates Dubai Wuhan Qingshan 443 MW EcoEléctrica 507 MW LNG Facility Puerto Plata 185 MW Guatemala Guatemala City Chengdu Logun 284 MW Wuhan Wuchang 189 MW Guam Anigua Abu Dhabi 500,000 Tons LNG Export Puerto Quetzal 110 MW 124 MW San Juan Gas LDC Philippines Manila India Delhi, Mumbai Oman 1.6 MM Tons LNG Export Jamaica Kingston Piti 80 MW Trinidad and Tobago EOG 115 MMcfd; 3,500 Bbls/d Hainan Island 160 MW ProCaribe Subic Bay 116 MW Thailand Bangkok Dabhol LNG Import IGL Progasco Vietnam Hanoi Batangas 110 MW Nicaragua Corinto 70MW Nigeria Lagos StatePower Project90 MW Barge 560 MW CCGT Venezuela Caracas First Gas Power Co Fuel Supply 30-35,000 Bbls/d Malaysia 2.6 MM Tons LNG Export India Dabhol 2,184 MW Phase I: 740 MW Phase II: 1,444 MW Ventane Colombia Bogotá Panama Bahía Las Minas 355 MW Phase I: 245 MW Phase II: 110 MW Citadel Venezolana Benin Integrated Gas & Power Project 80 MW 20 Miles Singapore Bachaquero III Promigas 1,062 Miles Accro III & IV Gaspart Northeast 5 LDC CALIFE LDC Centragas 357 Miles Pantanal Energía 480 MW Phase I: 150 MW Phase II & III: 330 MW Indonesia Jakarta Bolivia Santa Cruz Maputo Iron & Steel ProjectIntegrated Steel SlabManufacturing Facility 3.5 MTPY Brazil Salvador, Sáo Paulo, Rio de Janeiro Cuiabá Pipeline 385 Miles TRANSREDES 3,093 Miles Riogás/CEG LDC Bolivia to Brazil Pipeline 1,864 Miles Pande Gas Project378 Miles Gaspart South 2 LDC Elektro Eletricidade e Serviços Mozambique Maputo South Africa Johannesburg Obras Sanitarias de Mendoza Australia Sydney Argentina Buenos Aires TGS 4,104 Miles Enron projects completed or underway in over 30 countries

EnronOnline TM Putting the Energy into e-commerce TM

EnronOnline Extending Enron’s Products to the Internet Free, Reliable Transaction System with Enron as Principal Fully Integrated into Enron’sEstablished Risk Managementand Logistic Processes Utilizing Site to Offer Energy-Related Auction Capabilities Expands Enron’s Information Base and Market Knowledge “Tried and Tested” Platform for Expanding Enron’s eCommerce Activity

Mass CustomizationEnron Risk Products EnronOnline: 840 products Gas Electricity Liquids Other

EnronOnlineDaily Transactions Nov & Dec 1999 Jan Feb Mar Apr May June

EnronOnline EnronOnline Impact of EnronOnline Gas Power 544 116 480 109 452 97 EnronOnline start date EnronOnline start date 410 85 Deals per week 260 54 225 43 40 158 132 21 December January December January

Enron Energy Services Annual Contract Value (Billions) Profitability (Millions) $75 $16.0 ($107) ($119) ($68) $8.5 $3.8 $1.2 1997 1998 1999 2000E 1997 1998 1999 2000E

Total Energy Outsourcing Customer Needs Traditional Suppliers Enron Utilities Commodity Management Light Software Vendors Control Manufacturers Architects Energy Information Management Engineers Equipment Manufacturers Conditioned Air Mechanical Contractors Energy Asset Management Electrical Contractors HVAC Svc Companies Facilities Management Consultants Specialty Contractors Managed Facilities Lenders Capital Management Internal Treasury

Enron’s Retail Energy Customers High Technology Hotels / REITs Manufacturing • BICCGeneral • Lockheed Martin • MFG • The Orange County Register • Owens Corning • Polaroid • Ridgid • Solo • Tyco Healthcare • World Color™ • Applied Materials • Cisco Systems • GTE • IBM • InfoMart • Lucent Technologies Bell Labs Industries • Pacific Bell • Excelsior Hotel • Hilton • Hyatt • Simon Food Processing Sports Venues Financial Institutions Public Sector/Institutions • OceanSpray • Packaged Ice Inc. • Suiza • Tricon • Cleveland Browns • Enron Field • San Francisco Giants • Bank of America • Chase • First Interstate • Archdiocese of Chicago • California State University • Department of Veterans Affairs • DESC • Fort Hamilton • General Services Administration • Los Angeles County

Marketing Offices in London, Frankfurt, Stockholm and Amsterdam • 670 Employees • Successfully Expanding U.S. Relationships to Europe • Rolling Out Energy Outsourcing to Large European Customers • Significantly Growing Mid-Market Commodity Business • Customer Segments Include: • Retail Establishments • Transportation • Government Enron Retail in Europe

Enron Broadband Services Enron Intelligent Network BandwidthIntermediation ContentServices Deploy the Most Open, Efficient Network with Broad Connectivity Be the World’s Largest Provider of Premium Broadband Delivery Services Be the World’sLargest Buyer andSeller of Bandwidth Fiber Servers Pooling Points Software Bandwidth Marketing ComprehensiveBandwidthManagement Delivery of StreamingContent Data Management Services Replicating Enron’s Wholesale Energy Experience and Skill Base in a Highly Scalable, Efficient Broadband Strategy

Network Connectivity Europe Asia Fiber Servers Markets Pooling Points Unlimited, Real-Time Bandwidth Access with End-to-End Control

Enron Overview Jeff Skilling Chief Operating Officer