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

customers. Enron's operations are conducted through its subsidiaries and affiliates,
which are principally engaged in:
• the marketing of natural gas, electricity and other commodities and related
risk management and finance services worldwide;
• the development, construction and operation of power plants, pipelines and
other energy related assets worldwide;
• the delivery and management of energy commodities and capabilities to enduse
retail customers in the industrial and commercial business sectors;
• the development of an intelligent network platform to provide bandwidth
management services and the delivery of high bandwidth communication
applications;
• the transportation of natural gas through pipelines to markets throughout the
United States; and
• the generation, transmission and distribution of electricity to markets in the
northwestern United States.
Wholesale Services
Enron's wholesale business includes its worldwide wholesale energy and
other commodities businesses and operations in developed markets such as North
American and Europe, as well as newly deregulating or developing markets,
including Japan, Australia, South America and India.
Enron builds its wholesale businesses through the creation of networks
involving selective asset ownership, contractual access to third-party assets and
market-making activities. Each market in which Enron operates utilizes these
components in a slightly different manner and is at a different stage of development.
This network strategy has enabled Enron to establish a significant position in its
markets. Wholesale services can be categorized into two business lines: (a)
Commodity Sales and Services and (b) Assets and Investments. Activities may be
integrated into a bundled product offering for Enron's customers.
Commodity Sales and Services. Enron provides reliable commodity delivery and
predictable pricing to its customers through forwards and other contracts. This
market-making activity includes the purchase, sale, marketing and delivery of natural
gas, electricity, liquids and other commodities, as well as management of Enron's
own portfolio of contracts. This market-making activity is facilitated through a
network of capabilities including selective asset ownership. In late 1999, Enron
launched an internet-based e-commerce system, EnronOnline, which allows
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