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

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Retail Energy Services<br />

<strong>Enron</strong> Energy Services is a provide <strong>of</strong> energy outsourcing products and<br />

services to business customers. This includes sales <strong>of</strong> natural gas, electricity, liquids<br />

and other commodities and the provision <strong>of</strong> energy management services directly to<br />

commercial and industrial customers located in North America and Europe. <strong>Enron</strong><br />

Energy Services also provides end-users with a broad range <strong>of</strong> energy products and<br />

services to reduce total energy costs or to minimize risks. <strong>The</strong>se products and<br />

services include delivery <strong>of</strong> natural gas and electricity, energy tariff and information<br />

management, demand-side services to reduce energy consumption, and financial<br />

services, including price risk management.<br />

<strong>Enron</strong> Energy Services' products and services help commercial and industrial<br />

businesses maximize total energy savings while meeting their operational needs.<br />

With a focus on total energy savings and nationwide commodity, services and<br />

financial capabilities, <strong>Enron</strong> Energy Services provides outsourcing and other<br />

innovative programs not only to supply electricity and natural gas to businesses, but<br />

also to manage unregulated energy assets to reduce their energy consumption,<br />

delivery and billing costs, to eliminate inefficiencies <strong>of</strong> decentralized systems, to<br />

reduce energy demand, and to minimize the risk <strong>of</strong> energy prices and operations to<br />

the customer.<br />

<strong>Enron</strong> is extending its retail products to Europe. During 2000, significant<br />

growth was experienced in marketing commodity services to medium-sized<br />

businesses. At the end <strong>of</strong> 2000, <strong>Enron</strong> had approximately 130,000 customers in the<br />

United Kingdom. <strong>Enron</strong> plans to expand this business model to other European<br />

countries.<br />

Broadband Services<br />

During 2000 <strong>Enron</strong> Broadband Services substantially completed the EIN, a<br />

high capacity, global fiber optic network which through pooling points can switch<br />

capacity from one independent network to another and create scaleability. <strong>Enron</strong><br />

Broadband Services provides: (i) bandwidth management and intermediation<br />

services, and (ii) high quality content delivery services.<br />

<strong>The</strong> EIN consists <strong>of</strong> a high capacity fiber-optic network based on ownership<br />

or contractual access to approximately 18,000 miles <strong>of</strong> fiber optic network capacity<br />

throughout the United States. At December 31, 2000, the EIN included 25 pooling<br />

points <strong>of</strong> which 18 were in the U.S. and one each in Tokyo, London, Brussels,<br />

Amsterdam, Paris, Dusseldorf and Frankfurt, allowing the EIN to connect to most<br />

major U.S. cities and a large number in Europe. <strong>The</strong> breadth <strong>of</strong> pooling points within<br />

the EIN extends its reach by allowing connectivity with a greater number <strong>of</strong> network<br />

and service providers. <strong>Enron</strong> anticipates further increasing the scope and reach <strong>of</strong> the<br />

EIN by adding pooling points during 2001.<br />

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