Enron Mail

From:christopher.calger@enron.com
To:louise.kitchen@enron.com
Subject:EES/EPMI Split
Cc:tim.belden@enron.com
Bcc:tim.belden@enron.com
Date:Sun, 25 Mar 2001 18:35:00 -0800 (PST)

Just to add to Tim's note - I suggest that the number of overlap issues wou=
ld be few and far between and can be resolved at the operating level. I th=
ink ENA can offer up representatives from each region that have an open lin=
e of communication with the appropriate EES people. If ENA and EES provide=
d each other with a short list of contacts there should be no need to deal =
with this at the OTC level. For example, Chris Foster (ENA West Power Mid =
Market) would direct questions/opportunities to EES and field calls from E=
ES people looking at deals in the western power market.

ENA Interface List:

Power:
West: Foster
Midwest: Baughman
East: Pagan
Texas: Sukaly

Gas:
West: Tycholiz
Midwest: Luce
East: Vickers
Texas: Martin

Dave knows all of these people and I believe that they do things in the bes=
t interest of "One-Enron".

Regards,

Chris =20
---------------------- Forwarded by Christopher F Calger/PDX/ECT on 03/25/2=
001 01:18 PM ---------------------------
=20
=09 From: Tim Belden 03/21/2001 07:05 AM=09
=09=09


To:=09Louise Kitchen/HOU/ECT@ECT
cc:=09Chris H Foster/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT=20
Subject:=09EES/EPMI Split

i heard dave's voicemail. i appreciate his concern. however, i don't thin=
k that the delineation is easy to do. i am confident that my team knows wh=
at we are good at and what we aren't good at. if we aren't best suited to =
serve the load, we will act like "one enron" and send the account over to t=
he them. the split should really be driven by the customer's needs and whi=
ch utility they are behind. for example, montana power has a wonderful bal=
ancing tariff where the utility looks at the scheduled volume and compares =
it to the actual volumes and settles directly with the customer for imbalan=
ces. we don't do any metering, we don't do any unique billing, the loads r=
ange anywhere from 1 MW to 25 MW. ena is definitely best suited to serve t=
hese industrials because commodity price is their top interest. the pugest=
system is about to open up with a structure that is similar to montana's. =
ena will be very well positioned to serve this load. the same company cou=
ld have a plant in california. we wouldn't serve that load because the exp=
ertise needed to manage the ctc risk (before this thing blew up anyway), th=
e challenge of metering and tracking metered volumes on a schedule vs. actu=
al basis, and the load forecasting. the same company could also own gas st=
ations in the west. we have no interest in serving gas stations.

i also heard the message attached to dave's from scott dann (sp?). his mes=
sage did little to open communication between groups. he provided no detai=
ls on what the issue was in the west with respect to epmi (ena) and ees. f=
or us to do this right, ees and ena need to be able to solve problems witho=
ut involving the office of the chair of each company. i would be happy to =
work with anyone from ees to resolve who should be covering which accounts.

i still can't think of a clean way to divide customers. each approach has =
its problems. each company (ees and ena) has its strengths. our strength =
is commodity pricing and delivering a mw to anywhere on the western grid. =
their strength is in tariff analysis, energy management, and aggregating lo=
ads.

for the west, i am confident that chris calger and i can sort out any dispu=
tes with ees that are reasonable. we know what we are good at. we have a =
proven track record with a large number of industrials in the west. i stil=
l believe that our customers and shareholders are best served with our favo=
red approach. it will require better communication on the operating level =
between ees and ena.