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

• the delivery and management of energy commodities and capabilities
to end-use retail customers in the industrial and commercial business
sectors;
• the development of an intelligent network platform to provide
bandwidth management services and 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
America and Europe, as well as newly deregulating or developing markets, including
Japan, Australia, South America and India.
Enron builds its wholesale business through the creation of networks
involving selective assets 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 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 the 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
wholesale customers to view Enron's real time pricing and complete commodity
transactions with Enron as principal, with no direct interaction.
Assets and Investments. Enron makes investments in various energy and
certain related assets as a part of its network strategy by either purchasing the asset
from a third party or developing and constructing the asset. In most cases, Enron
operates and manages such assets. Additionally, Enron invests in debt and equity
securities of energy and technology-related businesses, which may also utilize
Enron's products and services.
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