Re: 2001 PRELIMINARY I/C billing

Becky,

The charges to Corp. go to RAC and are based on my projections of expected
expenses.

The charges are based on the following assumptions (percentages in the
parenthesis show
amount of time allocated by each person (group)) to RAC:

1. Value-at-Risk Group (VaR)

MD (25%)
VP (60%)
Director (100%)
5 managers (100%)

2. Enterprise wide risk management

Manager (100%)
Associate (100%)

Currently we hired (or will shortly hire) 4 managers for the VaR group. The
expansion of the VaR
group was planned based on the requests from RAC for more support.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/19/2000
01:52 PM ---------------------------

Shirley Crenshaw
12/19/2000 11:30 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Re: 2001 PRELIMINARY I/C billing

---------------------- Forwarded by Shirley Crenshaw/HOU/ECT on 12/19/2000
11:25 AM ---------------------------

Becky Pham
12/19/2000 11:13 AM
To: Shirley Crenshaw/HOU/ECT@ECT
cc:
Subject: Re: 2001 PRELIMINARY I/C billing

Madam,

I have a meeting with Corp tomorrow in reference to the intercompany billing
to Corp. They are concerned about Research allocation. I need some back up
to this billing. Can you help me? Can I get it by the end of the day to
have it reviewed and ready for tomorrow? Please let me know.... Thanx
---------------------- Forwarded by Becky Pham/HOU/ECT on 12/19/2000 11:08 AM
---------------------------

Stephen Schwarzbach@ENRON
12/18/2000 08:55 AM
To: Becky Pham/HOU/ECT@ECT
cc:
Subject: Re: 2001 PRELIMINARY I/C billing

Becky,
I am discussing these allocations with the appropriate groups within
Corporate, as they will be the ones accepting/rejecting these charges. I am
forwarding this to the appropriate individuals within the Corp. departments
for their review. So, do not consider Corp as "in agreement" until you hear
back from me. I also reviewed what we are receiving in 2000 and I have a few
questions relating to both 2000 and 2001:

1. What is ESource?
2. What is ENA Ops Direct?
3. What is ENA OCC Direct?
4. What is ENA CO 021? Is this Vince Kaminsky's group? The charges for 2000
have been about $16k and $20k to the RAC group, so at that rate, I would
expect 2001 to be no more than $250k-$300k, but the plan amount you sent is
$1.9MM. I will need some detail on this.

Thanks,
Steve

Becky Pham@ECT
12/14/2000 05:15 PM
To: Stephen Schwarzbach/Corp/Enron@Enron, Regina Hawley/GPGFIN/Enron@ENRON
cc:

Subject: 2001 PRELIMINARY I/C billing

Attached is the 2001 PRELIMINARY inter-company billing. ENA will be billing
plan numbers for all departments except for External Legal and External Tax,
which will be billed base on actual. A quarterly review will be done to
determine the variance between plan vs. actual amounts. If the variance
amount is material, we will adjust the billing to your Business Unit
accordingly.

If you have any questions, call me at 5-7094. Please review this billing,
and notify me with any questions by Wednesday, December 20, 2000; otherwise,
it is assumed that you agree to the intercompany billing from ENA.

You are the only person in your Business Unit receiving this invoice. If
this invoice needs to go to someone else in your business unit, please
forward to the correct person and can I be included in the forward e-mail?