Press Release

ENRON CEO KENNETH LAY CITES $174 BILLION IN SAVINGS, IMPROVED RELIABILITY, AND INCREASED FLEXIBILITY FOR CUSTOMERS RESULTING FROM NATURAL GAS COMPETITION

HOUSTON -- Enron Chairman and CEO Kenneth Lay called for regulators at a conference held today by the Interstate Oil and Gas Compact Commission (IOGCC) to allow the competitive natural gas market to continue delivering reliable service and solutions for consumers to reduce exposure to rising prices. Lay warned officials against overreacting to the recent run-up in prices and urged them to encourage utilities to take advantage of opportunities to protect consumers against price volatility. A copy of Lay’s presentation is available on Enron’s web site at http://www4.enron.com/corp/pressroom/pres/lay.09.20.2000/.

Lay pointed to the NYMEX futures market that shows gas prices declining over the next two years. “The gas resource base remains robust, and today’s prices will self-correct over time.” Overall, Lay added, “the natural gas market has delivered more than $174 billion in savings to consumers since the market was opened to competition in 1984.” He reminded the audience that even customers whose utilities have not protected against rising prices this winter will pay less per unit of gas in real terms than they did in the early 1980s.

Lay also urged government officials to consider lifting access restrictions to develop new gas supplies to meet growing electricity generation demand from the digital economy.

The IOGCC is an organization of states that promotes conservation and efficient recovery of domestic oil and natural gas resources, while protecting health, safety and the environment. The conference, “Responding to the Looming Energy Crisis,” is being held in Columbus, Ohio, under the auspice of Governors Bob Taft of Ohio and Tony Knowles of Alaska. Mr. Knowles is also chairman of the IOGCC.

Enron is one of the world’s leading electricity, natural gas and communications companies. The company, with revenues of $40 billion in 1999 and $30 billion for the first six months of 2000, develops, constructs and operates energy facilities worldwide, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Fortune magazine has named Enron “America’s Most Innovative Company” for five consecutive years, the top company for “Quality of Management” and the second best company for “Employee Talent.” In addition, Enron ranks in the top quarter of Fortune's "Best 100 Companies to Work For in America.” Enron’s Internet address is www.enron.com. The stock is traded under the ticker symbol “ENE.”

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Mark Palmer

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