2001 Pro Forma

Guys, in addition please incorporate in each teams package - their Direct
Expense/Headcount ratio to plan average, Productivity ratio to plan average
and team ROCE to plan average and any variances from 2000 to 2001 for
income/expenses taking into account our most latest 2000 forecasts by group.

Wes, I assume that you will be putting together a final 2000 i/s package for
me in the next couple of days.

Thanks
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 01/02/2001
02:08 AM ---------------------------

David W Delainey
01/02/2001 02:15 AM
To: Wes Colwell/HOU/ECT@ECT, Faith Killen/HOU/ECT@ECT
cc:
Subject: 2001 Pro Forma

Guys, attached you will find a completed 2001 Pro Forma budget needing Lavo's
review and then detailed review with each team.

This workbook has a number of worksheets including:
a) pkrs o&m - this details the o&m costs for the sold peakers assuming we
own throught Q2 - charged to the OOC;
b) driftPrepay - shows the detail as provided netting drift and pre-pay
expenses - not all that relevant if you assume that increasing drift will be
offset by larger monetizations;
c) Summary - overall completed income statement - note that non-external
capital charges are added back to reach EBIT;
d) commercial income - guts of the commercial budget;
e) group expenses - shows the detail on ENA net groups expenses, EIS/ENW/IT
non-allocable, corporate charges not allocated to specific commercial groups
and bonus/other comp;
f) HP&L - takes a cut at HP&L income statement and balance sheet in 2001
assuming a sale by the end of Q2 - this needs some sit down work with Redmond;
g) Balance Sheet Allocations - this defines by group the capital employed,
assets to be sold and new capital expenditures expected in 2001 - then
calculates a net capital and depreciation charge;
h) Balance Sheet - this defines the existing balance sheet with no
anticipated sales or increases by vehicle (ie) Enserco, JEDI, etc - merchant
investments are charged @ a blended rate of 15% and strategic investments are
charged @ a blended rate of 9%.

Two action items:
a) Print out for John - Commercial Income & Summary worksheets for his
comment and review &
b) Start putting completed commercial packages together for
distribution/further comment by the business units in the next couple of
weeks - include detailed income statement, headcount, balance sheet
(including expected increases,decreases, capital charge and depreciation),
leave pages open for goals & objectives and target customer list. I would
like to review format and detail for each group before distribution.

Regards
Delainey