Enron Corp. - University of California | Office of The President

In discussing the most recent decline in "bandwidth" values across the telecom
industry with Mr. Skilling, two points we have made previously were reinforced.
First, ENE Communications is not in the bandwidth business, it provides a
bundled service ... linking application providers with end users. Second, ENE
clearly views bandwidth as a commodity .... Skilling's enthusiasm for the potential
of ENE Communications as a whole and bandwidth trading specifically could not
be contained ....
... Enron Energy Services CEO, Lou Pai, noted that EES ... has proven through
contracts signed to date that EDSing absolutely works....
... More importantly, EES ... continues to sign high quality full EDSing contracts.
168. On 9/14/99, Dow Jones Energy Service reported on Lay's appearance at a Dain
Rauscher Energy Conference:
Continued growth in Enron Corp.'s core businesses will help the company
maintain strong earnings growth in the coming years, the company's chairman
and chief executive said Tuesday.... The company will get an added kick in
earnings from another rapidly growing market – fiber optic bandwidth trading, he
added.
* * *
Enron now owns 9,500 miles of Internet Protocol fiber-optic in its U.S.
network, Lay said.... All of it should be operational by next year.
169. On 9/20/99, CitiGroup issued a report on Enron, rating Enron a "Buy," increasing
Enron's forecasted 00 EPS to $1.40 and stating:
[T]here is ... is a high probability that Enron can be a solid double-digit grower....
... Enron is the majority owner of Dabhol Power Co.... Maharashtra Pradesh
Congress Committee has indicated that it wants to ... re-negotiate Phase I because it
is affecting Maharashtra's industrial growth. However, Enron is confident that it
might work with any political party to apply the project.... Enron has established
optimistic relationships in the country and is convinced that it can work with several
political parties in power.
170. On 9/21/99, Lehman Brothers issued a report on Enron which rated Enron a "Buy,"
forecasted 00 EPS to $1.30 and a 15% five-year EPS growth rate for Enron and stated:
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