Re:

Jeff,

I made a few suggestions and retyped in the document for your
consideration. I added a few words and changed the order. If you don't like
them, go ahead and change them back and send out.

Thanks,
m

From: Jeffrey A Shankman on 02/08/2001 02:44 PM
To: Mike McConnell/HOU/ECT@ECT
cc:
Subject:

any thoughts?
----- Forwarded by Jeffrey A Shankman/HOU/ECT on 02/08/2001 02:47 PM -----

Jeffrey A Shankman
02/07/2001 08:30 AM

To: Joseph P Hirl/AP/ENRON, Thor Lien/OSL/ECT, Paul Quilkey/ENRON_DEVELOPMENT
cc: Mark Tawney/HOU/ECT
bcc:
Subject:

As Mike and I look across all of our business units, we continue to look for
optimal organizational structures that will enable each business unit to
achieve it's targets for 2001 and beyond. In our weather business, there
appears to be a lack of seamlessness. Reporting relationships, P&L, and
vision for this business are not best aligned as this business exists today.

Mike and I would like to address this as follows: we need 100% full time
dedication from each and any employee that is dedicated to the weather
business. All identified employees in the weather business will now become
full time employees of EGM and report to Mark Tawney. Accordingly Mark and I
will be looking at, with each of you, the employees that may be affected by
this transition and the need to hire additional employees. It is important
that both business units work together to determine which individuals will be
in Weather, or will be in EEL. Once done, Mark will begin adding to the
weather team in each of your regions. It is obvious that the organizations
and product lines can lever each other and the synergy's will provide
powerful results in our regional gas and power businesses in particular.

If you look at coal, lng, equities, etc, we have employees based in each of
your regions who report back into the appropriate business unit within EGM.
This restructure will similarly align weather.

Please give me a call and we will discuss the issues surrounding this new
structure.