IN: As mentioned in our floor meeting recently, attached are listings of teams that we are forming to better address the business needs of Enron as it expands both in volume and scope. Supervisors of each RAC sub group provided the names for the groups with the understanding that they may have to be adjusted from time to time. Only the more senior people were included, but others will be included as appropriate. Many will have to be multidimensional. There will be no formal leader of the teams because each member is responsible for the activities of the team, regardless of the RAC group that you are in. Following are several thoughts concerning this process for consideration. - The purpose of this exercise is to better serve the customer, the commercial business units and achieve this within our control framework. - Ancillary benefits include cross training of RAC employees and heightened awareness of RAC issues. "De-silo-ization" . - All existing reporting relationships remain unchanged, for the moment. - Successful implementation of this effort will require a positive attitude among the teams. - Existing RAC responsibilities remain in effect. - Teams should meet weekly, at least, to discuss issues. Transactions will require more frequent informal meetings. - There are no excuses for forgetting to consider the impact on a deal of credit, market risk or our portfolio. - All team members are responsible for all aspects of a transaction. Offer to help out if needed. - If formal cross-training is necessary, force it to happen. - Encourage weak links in team to perform. - Each quarter RAC management will conduct portfolio reviews of the business unit with the team present. This may take one quarter to implement. - If it makes sense to sit together for logistical reasons try to arrange it with your supervisor. - Individual performance on the teams will be strongly considered in the PRC and compensation processes. The existing EES team has been quite successful and in large part was a catalyst to the recent reorganization there. You can have an impact. This process should begin immediately. Thanks in advance for your cooperation in this effort. Rick

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OUT: Memo

IN: Maureen, This is to remind you that we scheduled, at your request, regular weekly meetings. We are supposed to meet every Friday at 8:00 a.m. If I am not at the office, the meeting will be rescheduled. Vince

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OUT: Weekly meetings

IN: Here you go, Chris. Please ignore the last four days, as they are still under construction. And let me know if you have any questions. Thanks,

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OUT: EES April Daily Positions

IN: Richard, After going throught the numbers on this peaker. I can only pay 4-5 cents for a 10 day peaker at Chicago. That would be a net payment to you of $604,000. You are giving me 6.6% of the underlying days and I will pay 10% of the underlying price to get the optionality. As a relative value NYZ6 or Socal is worth much more. Alliance seems to have taken all of the strong interest out of this market. Hunter won't pay any additional premium as Chicago is too liquid physically to justify a premium for the molecules. Call me to go over the numbers if you want Pete

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OUT:
Chicago options