John,

This just got sent and it appears you were left of the cc list. We will be
discussing with your guys this week to determine the best way forward.
Everyone is under earnings pressure and it is asking too much for someone to
dedicate 10-20% of their time on a product. The intent of this email is not
to take people but to add people to the offices, if necessary, to make sure
they live, eat and drink weather.

We can discuss when I'm in later this week.

Mike
---------------------- Forwarded by Mike McConnell/HOU/ECT on 02/12/2001
10:50 AM ---------------------------
From: Jeffrey A Shankman on 02/12/2001 08:20 AM
To: Joseph P Hirl/AP/ENRON@ENRON, Thor Lien/OSL/ECT@ECT, Paul
Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Mike McConnell/HOU/ECT@ECT, Mark Tawney/Enron@EnronXGate
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.