We are prepared to get with you as soon as you would like after your return from New York to review projected cost savings from ENW. For each business unit that we support (EA, EGM, EIM, EES, EBS), we have prepared cost savings on expense and capital based on the three scenarios below. Scenario 1: Enron exits the line of business, with immediate headcount reductions and cost savings quantified; skeleton staff remains for orderly exit of business; then final headcount reductions and cost savings quantified (Lights Out) Scenario 2: Enron retains and maintains line of business, but does not invest for growth; assumes no further systems enhancements; support is scaled back from current level and is minimal (Lights On - But Dim) Scenario 3: Enron retains line of business and invests modestly to accommodate known market changes; service levels are scaled back from current level and are a step above minimal (Lights On - Brighter) Cost savings in all three scenarios have been quantified at the following level of detail by commodity for EGM and EIM: EGM: Freight Markets EIM: Forest Products FX/IR/Equity Steel Domestic Crude & Products International Crude & Products Domestic Coal International Coal Cost savings have been identified for ENW's unallocated expense and capital as well. We have worked with HR to adjust cost savings for anticipated severance costs.
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Enron Net Works - Cost Savings