FYI - Disbanding of Group within Energy Operations

I made the decision last week to disband the Strategic Initiatives team which
reported to Mary Solmonson within my organization. The group was led by a
director, and consisted of 2 managers, 1 senior specialist and 4
specialists. The employees were made aware of this decision last Friday
afternoon. My HR rep was on hand to explain the help that all will receive
in finding new assignments within Enron through the Enron Corp. Re-deployment
Team. Mary Solmonson continues as one of my direct reports, focused on
CommodityLogic and our business development efforts regarding the
commercialization of mid and back office services.

As part of my on-going effort to deliver both the best value and quality of
service within Energy Operations, I reviewed core versus non-core activities
within my team. I am committed to investing appropriately in people
resources to support core activities. And I believe that we can become even
more effective if investments in non-core activities are eliminated. The
role played by the Strategic Intiatives team in coordinating systems projects
will be more appropriately shouldered by the IT project leads and the
respective business sponsors/end users. The "middle-man" role played by the
Strategic Initiatives team had ceased to deliver appropriate value.

I wanted you to be aware of my decision in case you hear anything about the
re-deployment effort.