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Enron Mail |
Even if it meets all the other requirements for an RTO, if the Board is a
creature of Southern Company's selection and serving at the pleasure of Southern Company , it cannot be an independent organization. There might be minor gains on the code of conduct issues, and this could be a hopeful indication of a move to full divestiture. However, the Gridco will still be in the position of proving its innocence whenever its actions seem to aid Southern Company. Even if the organization were perfect in every way except for independence, no one can be sure that it is not acting in the interests of the integrated utility. I see little value in the Gridco authoring a incentive plan vs the parent being the author, as long as the Board is not independent of the incumbent enterprise. From: Richard Ingersoll on 10/23/2000 09:20 AM To: Joe Connor/NA/Enron@ENRON cc: Christi L Nicolay/HOU/ECT@ECT, Dan Staines/HOU/ECT@ECT, Daniel Allegretti/HOU/EES@EES@ENRON, Donna Fulton/Corp/Enron@ENRON, James D Steffes/NA/Enron@ENRON, Janine Migden/DUB/EES@EES@ENRON, Jeff Brown/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@ENRON, Joe Hartsoe/Corp/Enron@ENRON, Mark Palmer/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT, Paul Kaufman/PDX/ECT@ECT, Richard Shapiro/NA/Enron@ENRON, Robin Kittel/HOU/EES@EES@ENRON, Ron McNamara/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Steve Montovano/DUB/EES@EES@ENRON, Steve Walton/HOU/ECT@ECT, Steven J Kean/NA/Enron@ENRON, Susan J Mara/SFO/EES@EES@ENRON, Thane Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ENRON, Tom Chapman/HOU/ECT@ECT, Tom Delaney/Corp/Enron@ENRON, Tom Hoatson/HOU/EES@EES@ENRON Subject: Re: Enron Response to October 15 RTO Filings/Southeastern RTO Perhaps them having no say is a big step but it appears that they, in reality have all the say. Joe Connor@ENRON 10/18/2000 09:13 PM To: Richard Ingersoll/HOU/ECT@ECT cc: Christi L Nicolay/HOU/ECT@ECT, Dan Staines/HOU/ECT@ECT, Daniel Allegretti/HOU/EES@EES@ENRON@ECT, Donna Fulton/Corp/Enron@ENRON, James D Steffes/NA/Enron@ENRON, Janine Migden/DUB/EES@EES@ENRON@ECT, Jeff Brown/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@ENRON, Joe Hartsoe/Corp/Enron@ENRON, Mark Palmer/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT, Paul Kaufman/PDX/ECT@ECT, Richard Shapiro/NA/Enron@ENRON, Robin Kittel/HOU/EES@EES@ENRON@ECT, Ron McNamara/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Steve Montovano/DUB/EES@EES@ENRON@ECT, Steve Walton/HOU/ECT@ECT, Steven J Kean/NA/Enron@ENRON, Susan J Mara/SFO/EES@EES@ENRON@ECT, Thane Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ENRON@ECT, Tom Chapman/HOU/ECT@ECT, Tom Delaney/Corp/Enron@ENRON, Tom Hoatson/HOU/EES@EES@ENRON@ECT Subject: Re: Enron Response to October 15 RTO Filings/Southeastern RTO I don't have what Southern filed. I understand the filing will be on Southern's web page (www.southernco.com) within a couple of days. I'm in Virginia at the SERC Joint Committee Meeting and won't get the filings until I get home Friday night. As for an independent Board, as long as Southern owns the transmission assets as it does in the proposed for-profit Gridco, there is about zero possibility of them agreeing to have no say in the selection of the Board or in setting the incentive plan. What specifically are you concerned about (the selection process or the incentive plan or both)? I think we have a shot at getting them to consider changing the setting of the incentive plan to let the Board do it, as long as it is restricted such that it cannot impact the value of the assets. Any thoughts?
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