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Subject: 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 . |