Re: WORKING GROUP PROGRESS

The Regulatory Risk WG status --

1. It operated until Project Summer got going in full swing. We have been
doing some work lately on Due Diligence framework. The EBR took some time
away from the on-going work.

2. Accomplishments -

a. The key thing that we accomplished was to put together a Due Diligence
framework (which will be on the web page John and Gia are putting together).
The idea is that Enron should learn from its prior activities (what risks
associated with key deals)

b. The WG also was instrumental in supporting our analysis of the Top 20
(most of the key risks were managed by people on the WG).

3. Continuing -

Yes. Although the WG efforts have to focus on improving the overall culture
and support for EGA Reg Risk activities. Also, the WG needs to focus on how
to grow GA Origination. I would like to see John and Gia take the lead and
really work to make this a key part of the knowledge activities. The WG must
become the place were we disseminate the key ideas from our activities.

Any further questions, please let me know.

Jim

Steven J Kean
Sent by: Maureen McVicker
11/20/2000 10:12 AM

To: Jose Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Scott Bolton/Enron
Communications@Enron Communications, Hap Boyd/EWC/Enron@Enron, Jeff
Brown/NA/Enron@Enron, Ricardo Charvel/NA/Enron@Enron, Paul Dawson/Govt.
Affairs/LON/ECT@ECT, Joe Hillings/Corp/Enron@ENRON, Harry
Kingerski/NA/Enron@Enron, Nicholas O'Day/AP/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron
cc: Richard Shapiro/NA/Enron@Enron, Mark Schroeder/LON/ECT@ECT, Marcia A
Linton/NA/Enron@Enron, Ginger Dernehl/NA/Enron@Enron, Lora
Sullivan/Corp/Enron@ENRON, Rubena
Buerger/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tracy Cooper/Enron
Communications@Enron Communications, Beverley Ashcroft/LON/ECT@ECT
Subject: WORKING GROUP PROGRESS

Please provide me an update on the progress of the working group you have led
this year. There are several things I would like you to cover in this regard.

Did the working group function through the year or was it terminated (I
recognize there may be good reasons for the latter, but would like to
understand those reasons).

What did the group accomplish?

Would you recommend continuing it? Any changes?

Are there other topics we should consider for working groups in the future?
Any changes to the working group process itself?

Please provide input on the individuals you worked with. You should be able
to do this through the PEP system. If you cannot, please provide the
feedback by confidential e-mail to me. Because the PRC is coming up soon,
please provide the feedback by December 1.