1

I.T Services

• Enron can provide the Contracts, Facilities, Customer Information, Trading, Risk, Scheduling, Volume Management, Credit Management and Settlements applications to the JV under a multi-year service agreement. These applications are a highly integrated package and should be bid as a package.

• Enron can also provide the SCADA application to the JV but this should be looked at closely across the multiple facilities and the proper interfaces could be built until a transition plan can be implemented to move on to the best SCADA package for the JV.

• Enron can provide the Accounting applications via SAP that will cover A/R, A/P and General Ledger functionality. Asset and project management applications are also available. Since many different accounting packages are available off the shelf this could be structured as an interim agreement until the right package is picked for the JV.

2

I.T Services - Continued

• Enron can also provide the following services under a multi-year agreement.– The use of Enron’s network, servers and desktop software including

Microsoft Office and Exchange applications.

– Initial deployment and support for desktop PC’s and printers.

– Unix, DBA, NT and Help Desk support for Enron’s applications and infrastructure.

– The use of Enron’s Lucent and Trading IPC phone networks.

– Internet access for the JV’s employees.

– Interfaces between JV’s and Enron’s applications.

– Enron’s Standard Market Data feeds for the JV’s traders.

– We will provide custom software enhancements to the JV at a negotiated rate.

– Any additional software or hardware costs not covered by the negotiated service agreement will be billed directly to the JV.

3

I.T. Services

• We do not want to sell software our software– Causes licensing issues

– Ongoing support becomes complicated

• Prefer to sell I.T. Services through JV’s or outsourcing agreements.