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

• the transportation of natural gas through pipelines to markets throughout the
United States; and
• the generation and transmission of electricity to markets in the northwestern
United States.
Wholesale Energy Operations and Services
Enron's wholesale energy operations and services strategy is to establish fully
integrated regional energy networks, involving asset ownership, contractual access
to third-party assets and market-making activities, throughout the world. Enron
believes that it is the premier energy service provider in the rapidly growing and
highly competitive North American wholesale energy market. Similarly, Enron has
adopted a continent-wide approach in Europe, that it believes is unparalleled by any
other competitor. Enron's strategy in developing and deregulating markets such as
South America and India is to acquire and construct key assets that form the basis for
an integrated regional gas or electricity business. Enron also believes that its
combination of strategically located assets, skilled employees and expertise in
electricity and natural gas marketing gives it competitive advantages in deregulating
markets worldwide and will facilitate a leadership role in these markets as they
deregulate.
Enron's wholesale energy operations and services business provides integrated
energy solutions to Enron's customers, primarily through the bundling of products
and services. These products and services may include commodity supply and
purchase agreements, risk management, financial services or capital investments. As
part of its strategy of creating regional energy networks, Enron is one of the world's
leading developers of energy related infrastructure projects, including power plants,
pipelines and other energy related assets. Enron often makes a significant capital
investment in a project during its development phase. During the development and
construction of any given project, Enron will often reduce its investment in such
project in order to generate additional liquidity to fund other capital requirements.
Revenues from Enron's wholesale energy operations and services business
represented approximately 90% of Enron's total consolidated revenues for the year
ended December 31, 1999.
Retail Energy Services
Enron Energy Services provides energy expertise and capabilities to end-use
retail customers in the industrial and commercial business sectors to manage their
energy requirements and reduce their total energy costs. Enron Energy Services sells
or manages the delivery of natural gas, electricity, and other commodities to
industrial and commercial customers located throughout the United States and the
United Kingdom. Enron Energy Services also provides outsourcing solutions to
customers for full energy management. This integrated product includes the
- 426 -