KENNETH LAY

Every market is in transition.

But certainly I didn't know he was doing anything that was criminal.

I mean, our primary businesses in wholesale pipelines, utilities, retail, were all doing extremely well.

We don't break the law.

We use competitive markets to arrange for delivery of our food supply.

Any slots at the senior level, including CEO or other slots, will be filled internally.

We've tried to get as much supply into California as we can.

Our liquidity is fine. As a matter of fact, it's better than fine. It's strong.

I have faith in the market when we get the rules right.

But indeed a market like California is not good for Enron.

Trillions of dollars every day are being exchanged around the world in all of the financial markets.

There are no accounting issues, no trading issues, no reserve issues, no previously unknown problem issues.

The problems in California have been that it's been very difficult to site and build new power plants.

In the case of Enron, we balance our positions all the time.

Well, rates would go up whether you deregulate or not, and of course, the rates that are going up right now on the electricity side are still within the regulated framework.

Investors don't like uncertainty.

There are absolutely no problems that had anything to do with Jeff's departure.

Am I a fool? I don't think I'm a fool. But I think I sure was fooled.

We see ourselves as first helping to open up markets to competition.

Today, there are also buyers and sellers of all these energy commodities, just like there are buyers and sellers of food commodities and many other commodities.

I've been a strong financial and political supporter of, first, President Bush Sr. when he was running for president, and even when he ran for president a time or two and failed.

I have to take responsibility for anything that happened within its businesses.

I don't think I'm a criminal, number one.

You'd rather have a surplus versus a shortage in your position.

Jeff knew full well what he was walking away from. Again, he needed to deal with this right away.