ham/0033.1999-12-16.kaminski.ham.txt

Subject: revised : organizational changes
to : enron north america corp .
from : cliff baxter and kevin hannon
in july , as part of the enron north america ( ena ) reorganization , the
implementation of several objectives were highlighted as critical to the
continued growth of ena including : 1 ) accelerate the development of our
people , 2 ) significantly expand our customer network and associated markets ,
and 3 ) accelerate and enhance the information flow between groups , both
within ena and across enron . consistent with these objectives and with the
corporate goal of fostering 

b ) the downstream coverage / origination groups which focus on delivering a
broad range of products and services to the heavy industrial customers
including pulp and paper , chemicals , plastics , refined products , metals and
mining , heavy manufacturing , industrial gases , fertilizers , transportation ,
textiles and glass manufacturing the eastern and western u . s . midstream
coverage / origination groups which focus on energy , finance and industries .
downstream coverage / origination
as energy deregulation continues in north america , it is becoming clear that
the heavy industrial segment will be an important customer market for both
ena and enron corp . further , it is clear that ena can significantly expand
its industrial customer network and create more innovative industrial
solutions by having a group that can deploy all the capabilities of enron
corp . against this backdrop , the downstream coverage / origination function
will expand its product offering to include not only ena 
 , s existing energy
commodities , energy services , finance , assets and pulp and paper capabilities
but also ees 
 , s energy outsourcing capability and global fuel 
 , s chemicals ,
plastics and refined products risk management capability . these additional
capabilities will be offered in conjunction with ees and the global fuels
groups . given the size and importance of this enron initiative , greg piper
will be returning from portland to manage this business . under greg 
 , s
leadership , the downstream origination effort will be segmented into three
sub - groups given the nature of these industries and our product offering :
a ) pulp and paper 
 ) edward ondarza will continue to manage the coverage
activities in the pulp and paper business . this group will be responsible for
the provision of innovative
products and services in the pulp and paper industry including the provision
of paper risk management products ;
b ) chemicals , plastics and refined products 
 ) we have asked jim ajello to
lead the coverage activities in this business . this group will be
responsible for the provision of innovative products and services in the
chemicals and refined products industries ;
c ) non - integrated industrials 
 ) bruce garner , formerly leader of bankers
trust 
 , s global metals and mining group in london , has joined ena to lead the
coverage activities in this business . this group will be responsible for the
provision of innovative products and services for the metals and mining ,
heavy manufacturing , industrial gases , fertilizers , transportation , textiles
and glass manufacturing industries .
midstream coverage / origination
a ) eastern coverage / origination 
 ) this group 
 , activities will focus on
energy , finance and power development solutions for electric and gas
utilities , municipals , co - ops and energy service companies in the eastern
interconnect . we have asked janet dietrich to assume the leadership of this
group ;
b ) western coverage / origination 
 ) this group 
 , s activities will focus on
energy , finance and power development solutions for electric and gas
utilities , municipals , co - ops and energy service companies in the wscc . they
will also continue to manage all qualified facilities ( qf ) restructuring
opportunities in the western u . s . we have asked chris calger to assume the
leadership of this coverage group . chris will relocate to portland from
calgary where he currently leads the canadian downstream origination efforts ;
c ) ipp merchant coverage / origination 
 ) this group 
 , s activities will focus on
the provision of structured energy , finance and asset solutions for the
emerging merchant power generators who control large portfolio 
 , s of merchant
power generation either through development or acquisition . we have asked
mike miller to assume the leadership of this group . in addition , mike will
continue to manage the power development activities in the eastern
interconnect ;
d ) eastern qf restructuring 
 ) this group will focus on the qf restructuring
opportunities in the eastern interconnect including the existing
restructuring and re - capitalization of the east coast power assets . we have
asked dave duran to assume the leadership of this business . greg blair ,
formerly of enron asia 
 , s development group , doug clifford , formerly of
citizens power , and dick lydecker , formerly of cogen technology , will join
this newly formed business .
2 ) commercial transactions :
the commercial transactions group ( ctg ) , co - headed by ray bowen and jeff
donahue , was formed to provide a centralized resource for the execution of
transactions within ena 
 ) and thereby , improve ena 
 , s efficiency in executing
transactions and free - up the origination groups to increase their intensity
of client coverage . ctg consists of six primary functions : transaction
development , capital structuring and portfolio management , commodity
structuring and transportation , transactional support / accounting , technical
analysis and upstream asset management .
the transaction development group will be responsible for deal leadership ,
execution and optimization of all aspects of a transaction in conjunction
with the originator . the function will be divided into four teams , each of
which will be dedicated to between two and four origination groups . this
dedication to specific groups should provide a closer link , better service
and greater accountability with the origination groups ; however , the ctg
resources are designed to be a fungible and flexible resource allocated to
the highest value transactions across the coverage functions :
a ) midstream transaction development will be dedicated to the eastern and
western coverage / origination groups . the senior members of this group
include billy lemmons , george mccormick , erin norris and russ porter . billy
lemmons joined enron in 1992 . most recently , he was the vice - president of
capital structuring and risk management for ees . russ porter joins us today
from dynegy where he was a manager with responsibilities for power
origination .
b ) downstream transaction development will be dedicated to ena 
 , s industrial
origination efforts in pulp and paper , petrochemicals and refining ,
environmental energy , metals and mining and other industries as coverage is
established . the senior members of this team include rodney malcolm , jay
boudreaux , finley biggerstaff and chris helfrich . we anticipate announcing
two to four more additions to this team within the next few weeks .
c ) generation transaction development will be dedicated to the ipp merchant
services and power plant development and qf restructuring groups . the senior
members of this team include thomas suffield , andy kelemen , kelly mahmoud and
john house . thomas suffield joined enron in 1996 . most recently , he was the
vice - president of origination for the latin american group in azurix . we
anticipate announcing two more additions to this team within the next few
weeks .
d ) upstream transaction development will be dedicated to the producer
finance , coal and gas assets groups . the senior members of this team include
brad dunn , john curtin and chris hilgert . we hope to announce the addition
of at least one vp to this group prior to yearend .
ray bowen will have primary oversight responsibilities for the upstream and
downstream transaction development teams with jeff donahue having primary
responsibilities for the midstream and generation teams . andrea reed will
continue to head capital structuring and portfolio management : all junior
commercial resources within the transaction development teams will have dual
responsibilities to both their transaction development teams and to the
capital structuring group . the remaining four groups within ctg will remain
largely unchanged . in addition , the origination and the transaction
development teams and their respective origination groups will be located
together .
we believe that these changes will significantly enhance our market coverage
and industry knowledge in all ena 
 , s markets particularly in the industrial
markets . it will also provide a closer partnership and accountability between
the coverage / origination groups and the ctg groups .
please help us in continuing to build on the success we have enjoyed in north
america by working with us to implement these changes .