Q: 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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A: Memo

Q: Rick - this is the event that Cal Payne spoke to you about several weeks ago. He indicated to me that you would be interested in attending. I am David Johnson - a partner with Andersen and we are sponsoring the Risk Officers Roundtable. This is not a training seminar or an event with an audience. This group has been meeting for a couple of years and recently asked Andersen to take the lead in facilitating the group. The objective of this group is to focus on issues that each of you are facing as risk officers or leading energy trading organizations. The ideas and issues dicussed will remain confidential. This is a forum for people facing similar issues to bounce ideas off of each other and to discuss topics of mutual interest. From an anti-trust perspective, competitive approaches as an industry or similar initiatives will not be discussed. The group will meet about 4 times a year Our plans for the next meeting are as follows: Location - Las Vegas (Bellagio currently has rooms for $129/night) Date - Monday November 12 and Tuesday November 13 Agenda - We will get with each attendee and formulate an agenda. This will be circulated prior to the meeting. Attendees - Confirmed - Eddie Meche, Reliant, Philip Chesson - Williams, Glen Labhart - Dynegy, Cal Payne - UtiliCorp Invitations extended to Rick Buy - Enron, Rich Osborne - Duke, Mark Randle - Sempra and Bob Andersen - ElPaso.
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A: Risk Officers Roundtable

Q: Mark, Zhiyong and I met with Geoff this evening, to run over the budget numbers. Geoff was prepared to give the OK to the following items CGS Physical $ 2,065,308 Sitara/CPR/TDS Maint $ 1,310,853 TAGG/ERMS Maint $ 1,273,775 CGS Financial $ 1,451,316 Gas Performance Upgrades $ 800,000 TOTAL $ 6,901252 Of the the other items in that section, the IT Commerical Co-ordination piece needs to be handled by Tommy Yanowski, the Global Valuation Mtce piece shouldn't be there and has now been corrected in the underlying sheets, and the Gas Fundamentals piece needs to move to Chris Gaskill's pot. Zhiyong and I will meet with Chris Gaskill first thing in the morning to get sign off on the numbers for Gas Fundamentals. We don't anticipate a problem with this as Geoff Storey has already given him a heads-up on the costs. We have also cut around $700k off the Gas Fundamentals costs which didn't make it to the final printout today in the meeting. regards
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A: ENA Gas Budget Sign Off

Q: Enron North America Corp. will be the contracting party. For your information, Enron Corp. is the parent. The street address is listed below (the "EB" number is my location). Please call me in the a.m. for other questions you may have.
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A:
Please call me with your questions