Review of Charter

1. Review of Charter Overview of 4Q 2000 - Outlook for 2001 Meeting on 22 February 2001 Enron North America - Principal Investments

2. DOWNSTREAMPOWER TECHNOLOGY UPSTREAMPOWER TECHNOLOGY OTHER ENRONRELATED TECHNOLOGY • Distributed Generation- Fuel Cells- Microturbines • Power Quality- Uninterruptible Power Systems • - Power Semiconductors • Power Control & Measurement- Load Mgmt (Hardware & Software) • HVAC Technologies • Turbine Technologies • Transmission and Distribution Technologies- Infrastructure Automation (Customer Care, Workforce Mgmt., Building Automation)- Geographic Information Systems- Superconductors and Applications • Utility Outsourcing • Trading & Risk Management • Liquids Technologies- Gas to Liquids Technology • Pulp & Paper Technologies • Coal/Emissions Technologies • Pipeline Technologies • Other natural extensions to Enron’s existing businesses Review of Charter Mission: • Exploit competitive market advantages of ENE to achieve asymmetric yields on comparatively small capital investments; • Facilitate ENE business expansion by targeting investment in companies that are complementary to ENE’s core operating strategy; • Expand ENE’s “network” of knowledge and opportunities by providing strategic insight into trends in the industry. • Knowledge Base - existing and future intellectual capital within the Enron organization - in the form of expertise and experience - in a variety of energy and risk management sectors - allows for competent assessment of the return potential of new investment opportunities; • Enron Brand - image/reputation in market, which makes Enron a preferred strategic and financial partner and provides preferred access to investment opportunities. • Enron Global Network - vast resource of commercially savvy professionals who interact daily with a) investment banks, b) VC firms and c) energy companies. CompetitiveAdvantages: TargetedSectors:

3. Portfolio at 31-Dec-2000

4. Portfolio at 31-Dec-2000 (con’t)

5. Major Earnings Events - 2000 1) Quanta Services, Inc. • Quanta is a leading provider of specialized contracting services, delivering end-to-end design, installation, repair and maintenance solutions for all types of utility infrastructure. • Acquisition of convertible preferred stock representing a fully diluted 19.9% interest for $49.4 MM. Deal closed in September 1998. • In September 1999, Quanta entered into a strategic alliance with Utilicorp United, which included the sale by Quanta to Utilicorp of $186 MM of a different class of preferred securities • Enron’s entire stake sold to Utilicorp in May 2000 for $206.0 MM • Gain of $156.6 MM over 19 months; IRR = 150% 2) Active Power, Inc. • Active Power designs, manufactures and markets battery-free, flywheel-based power quality products that provide the consistent, reliable electric power required by today's digital economy. • $5.0 MM investment, representing fully diluted interest of 3.0%, completed in November 1999. • Company completed IPO at $17.00 per share on 08-Aug-2000. Share price closed at $52.75 on first day of trading. • Position was sold into Raptor for $66.0 MM on 08-Aug-2000. • Liquidation of position commenced in 01/2001 - will conclude by year end • Gain of $61.0 MM over 7 months; IRR  5,000% 3) Verado Holdings, Inc. • Decline of $23.7 MM in value of 3,000,000 warrants not sold in transaction with Texas Pacific Group in 1999. Decline tracked precipitous fall in VRDO share price over year, from $17.00 at IPO to $0.65 at year end.Total earnings from Verado = $104 MM

6. Major Earnings Events - 2000 (continued) 4) Other • Revaluation of Portfolio Positions: • Dais-Analytic (+ $6.9 MM) Revaluation from $60 to $120 MM ($3 MM to $9.9 MM) based on LG equity investment @ $146 MM • Encorp, Inc. (+ $12.1 MM) Revaluation from $20 MM to $80 MM ($3 MM to $15.1 MM); Series D round of $38 MM completed @ $100 MM • MTC (+ $1.1 MM) Revaluation from $37.8 MM to $45 MM based on $15 MM Series E round with Aqua International Partners • FuelCell Energy (+ $0.5 MM) Screen @ 31-Dec-01 • Dispositions • Power Systems Mfg (+ $0.7 MM) Sold to Calpine Corporation for $43 MM

7. 4Q 2000 Completed Investments 1) Tridium, Inc. • Framework, software and services company whose main product is used in the building automation, industrial automation and energy management markets • $10.0 MM investment (initial ~18% stake) • EES is material customer and provided guidance in due diligence • Company seeking to conclude strategic alliance with Johnson Controls, which would involve a $5-10 MM investment in next funding round • Exit via IPO in 2002 or through trade sale (e.g. Cisco) 2) iMedeon • Leading provider of web-based workforce commerce solutions to enable and optimize workforce operations and to make customer service a competitive advantage. • $4.6 MM investment (initial 6.75% stake) • Warrants for an additional 0.9% • GE Equity, Insight Capital, Aether co-invested in this round (Endesa S.A. of Spain also wanted in) • IPO in 2002 - final exit 180 days later 3) AMPS - Advanced Mobile Power Systems, LLC • Design and manufacture of (initially) two 22 MW mobile generating units using Pratt & Whitney FT-4 jet engine • 85% ownership interest; sell down to Pratt & Whitney being negotiated • Partner is Dispersed Power, LLC (spin off from Power Systems Mfg, LLC) • Initial units to be put into service by Enron or sold to third parties (we have received numerous inquiries) • Longer term, want to expand product line and become provider of dis-tributed generation solutions for both utilities and commercial customers • Exit via IPO in 2002/03 or through trade sale (e.g. Calpine)

8. 1Q 2001 Completed Investments 1) Silicon Power • Leading US manufacturer of high power semiconductors required by industrial, utility, transportation and military applications • $2.5 MM investment (~ 3.4%) - no warrants • Bank of America Securities has been selected as advisor and lead underwriter for IPO, which is projected for 1H 2001 • GE Equity, Wexford Capital co-investing in $10 MM round • Exit 180 days post-IPO 2) Solo Energy • $2.25 MM (of total $7.0 MM) convertible bridge loan plus warrants to purchase 2.75 MM shares at attractive valuation. • Funds needed to fund company’s overhead while negotiating potential acquisition of Elektryon, which designs and distributes POWR/MSTR 100kW genset. • Loan is senior, secured and due at 30-Jun-01; converts at ENE’s option into Solo’s Series D round, which should close upon consummation of the acquisition (investors are identified); • Acquisition should accelerate IPO into 2H 2001; high level of banker interest 3) Encorp • Add-on investment of $5.0 MM in $38 MM Series D pre-IPO round @ $100 MM pre-money with ratchet to $50 MM if IPO not completed by 31-Dec-01 at pre-money valuation of $340 MM • Funds are sufficient to keep company liquid through middle of 2002 • Company generated 10.2 MM in sales in 2000 (vs. budget of $6.0 MM) and is targeting $32 MM in 2001 and $78 MM in 2002. • Intense dialogue between ENA/EES and Encorp - no sourcing deals yet, but outlook promising • Numerous potential trade buyers if IPO does not materialize

9. Targeted 2001 Investments 1) Syntroleum Corp. • Syntroleum has developed a proprietary process for converting natural gas into synthetic oil, which is the basis for its planned 10,000 bbl/d facility to be constructed in northwestern Australia • $20.0 MM investment for ~ 13% of project equity plus warrants to purchase 1.3 million Syntroleum shares (~ 4.8% fully diluted stake); stake in Australia project becomes convertible into ~ 4.2% of Syntroleum common shares one year after start-up (2004). • Project is being heavily subsidized by Australian state and federal government;Merrill Lynch advising on structuring and placing requisite project debt • Ivanhoe Energy of Canada providing additional $20 MM in equity 2) Ramgen Power Systems • Has developed and tested the Ramgen engine, a unique application of well-established ramjet technology to the stationary generation of power • Possible applications within AMPS or elsewhere within EES • Has completed 2 rounds of funding for $14 MM; has hired CSFB to do 3rd round of $30-40 MM in 1H 2001 • Exit 180 days post-IPO 3) Europe • OPRA - has developed a 1.6 MW gas turbine utilizing a patented low emission combustion system; • Proton-Motor Fuel Cell GmbH - one of the leading European enter-prises specialized in PEM fuel cell technology, their elements and system components and integration and control; • Vigor GmbH - new energy saving technology that can reduce electricity consumption of single and three phase electric motors by 20-50%

10. Targeted 2001 Investments 4) Power Line Communications (PLC) • Enikia - has developed high speed networking technology and products which allow up to 10 Mbps data transfer rate. • Inari - has developed MAC/PHY 2 Mbps Powerline Network Controller. • DS2 - European front-runner in development of chipsets for powerline communication applications. • Itran - has developed mixed-signal chip sets for home networking applications

11. 2001 Anticipated Timeline • Utiliquest(Trade Sale @ Enterprise Value = $66 MM)Potential ENE Write-Off = $4 MM • Solo Energy(1)(3rd VC funding round for~ $30-50 MM @ $90 pre)Potential ENE Gain = $15 MM • Encorp(3)(4th VC funding round for ~ $38 MM @ $100 M pre)Potential ENE Gain = $1.5 MM • Active Power, Inc.(952,382 shares, 324,000 warrants)Liberation on 03-Feb-01 • Tridium(2nd VC funding round for ~ $15 MM @ $75 M pre)Potential ENE Gain = $8.6 MM • MTC(3rd VC funding round for ~ $20 MM @ $80 MM pre)Potential ENE Gain = $2.5 MM • Encorp(IPO @ $250 - $500)Potential ENE Gain: $20-65 MM • Syntroleum Corp(1st Project Equity Round) ~ $20 MMPotential ENE Gain = $20-30 MM • Dais-Analytic(2)(3rd VC funding round for~ $30 MM @ $120 MM pre)Potential ENE Gain = $0.0 MM • Solo Energy(1)(IPO @ $500 - $750 MM)Potential ENE Gain = $60-110 MM • Dais-Analytic(IPO @ $500 - $750 MM)Potential ENE Gain = $50-90 MM • Tridium(IPO @ $200 MM pre)Potential ENE Gain = $17 MM • iMedeon, Inc.(IPO @ $250)Potential ENE Gain = $15-20 MM • FuelCell EnergySale of 0.5% stake (1) Solo currently negotiating combination with Elektryon, which would push VC 3rd round into 2Q, but would accelerate IPO (2) $6.9 MM gain taken in 4Q 2000. (3) $12.1 MM gain taken in 4Q 2000. 3rd Qtr 2nd Qtr 4th Qtr 1st Qtr 2002

12. 2001 Market Environment B of A Individual Share Performance Relative Sector Performance in 2000 Consensus: 1. IPO Market will remain closed to technology stories for at least 1Q, possibly 2Q 2. Private market valuations and deal structures have become more conservative and provideincreased downside protection 3. Energy technology should rebound before internet/communications sector, probably in 2Q or3Q, as the onset of summer again highlights the need for new power delivery technologies 4. Companies with solid business models should be able to achieve IPO in 2H 2001, howevertiming remains uncertain 5. Energy technology segment continues to attract high level of interest on Wall Street and - increasingly - the venture capital market.

13. Portfolio Statistics Number of Investments: $$ Invested: Number of IPO’s Number of Trade Sales: Number of Write-Offs: Number of Write-Downs: Outstanding Investments: Portfolio Hedged Value: Portfolio Current Trading Value: Margin Generated: 15 $80.1 million @ 21-Feb-2001 1 (Active Power1) 4 (Destec, Quanta Services, FirstWorld2,Power Systems Mfg, LLC ) 0 0 14 $186.1 @ 21-Feb-01 $128.3 @ 21-Feb-01 $128.1 MM (2000)$ 97.8 MM (1999)$ 80.4 MM (1998) 1) Active Power completed IPO on 08-Aug-00. ENA PI is subject to 180 day lock-up period which expires in Feb 2001. Gain of $62.3 MM has been hedged through “Raptor” vehicle. 2) Bulk of FirstWorld position was sold to Texas Pacific Group in April 2000 for $129 MM. ENA PI retains ownership of 3.0 MM warrants with strike price of $3.0 per share.

14. Why we like this space • Big push to increased power quality and reliability • Digital economy intolerant of grid level power quality/reliability • Fossil fuel being replaced by electricity as fuel of choice in information economy • Internet continues to pervade “old economy” • Expansion in generation capacity will increasingly be on a distributed basis • Smaller increments, closer to the end user • Deregulation and regulatory uncertainty will incentivize private sector to develop their own power solutions independent of the grid • Electricity infrastructure will (quickly) become increasingly networked • Grid/peak shavers/standby • Differentiated pricing will require real time metering • Monitoring, control and measurement technologies will become mission critical • Energy technology market estimated to total $50 billion within the next 5 years and $100 billion by 2010 • Investment in energy tech at same stage as investment in telecoms in 1986 • Enron uniquely positioned to capture value - based on name/reputation and commercial and technical capabilities

15. Charter / Strategy in Current Environment • Energy Tech is here to stay - increased investor attention focused on energy technology sector will not go away anytime soon • All major Wall Street firms have dedicated research and corporate finance teams focused on segment • Targeted energy tech funds have become popular (Ballentine, Perseus/GE, Merrill Lynch, Nth Power, Bank Sarasin, etc.) • Market recognizes importance of technology in improving/maintaining electricity infrastructure • Private valuations and deal structures have become more investor friendly • Substantial pools of capital have retreated from the technology VC market; those who stay the course have an outstanding opportunity to consolidate their position and pick up some bargain investments • Status of Enron as a preferred “strategic” investor based on reputation and position in energy marketshas been enhanced • Need to exploit current market to round out portfolio on a selective basis and cement our position as partner of choice in energy technology area • Achievement of 2001 budget heavily dependent on rebound in IPO market for technology companies • 1-2 scheduled IPO’s comprise bulk of anticipated margin • Investment strategy for 2001 • No fundamental change in charter necessary • Focus should be on selectively adding to portfolio where we see value • Heightened vigilance in reviewing new investments in order to fully exploit: • Cyclical downturn in public equity markets • Substantial decrease in liquidity in private markets - leading to less aggressive valuations and deal structures thatprovide substantial downside protection • Enhanced value of Enron as marquee investor