Texas Desk Employee Matters

I received notice today that Elsa Villareal , Gary Lamphier and Ed Gottlob have accepted jobs with AEP as part of the sale of HPL (not to leave until closing). This means that my staffing needs after closing are as follows:

1 Lead Physical Trader
1 Physical Trader
1 Basis Trader (or at least an asst. trader)

1 Industrial/Utility Middle Marketer/Originator
1 Supply Middle Marketer/Originator

I met with Jeanie Slone and the internal recruiters today to start the external search process for an experienced physical trader and industrial marketer.
I am hoping the other positions can be filled internally with associates and/or internal commercial personnel.

I delivered employment contracts to Janet Wallis, Jim Schwieger, Stacy Neuweiller, Eric Bass and Daren Farmer. They all wanted to review the documents and talk to me next week about it. Janet did not give a good feeling that she would be willing to sign it. I know that she has been contacted by companies other than AEP about job opportunities and I know other Enron Units have talked to her as well.

Although we met Jim's numbers he is still hung up on the super vesting language for options; I'll keep working on him.

The others I did not get any read on, but I will talk to them next week.

Given the severe shortage of talent that my desk is going to experience from the HPL transaction I want you to consider realocating experienced talent from other trading and middle marketing desks to the Texas desk.

I will follow up with you when I return from vacation on Monday, March 19th.

Thanks,

Tom