f3F''wescoiweii
	    0110212001 08:23 AM

To:      David W Oelainey/HOU/ECT@ECT
cc:
Subject: Re: 2001 Pro Forms j~

I don't know yet when you return, but here's the plan. Today and tomorrow we will finalise the DPR and
make any necessary adjustments to Schedule 'C' necessary to make our targets as promised to Corp.
Also, we need to finalise reyiew of the origination income and determine where each team came in
compared to what they had promised you. In that regard, the only soft areas I am aware of are upstream
orig and ECR. Each may have some difficulty getting their deals to "pass" Andersen audit (their issues
are, however, m~nageable). I am telling everyone the 'books" are Closed after Wed, but I doubt we will
finalise the DPR or schedule C until Mon. next week. FYI, we will likely get some pressure to overproduce
more for the purpose of beating the analysts estimates. I will keep you posted but don't expect much
paper until Thurs. morning.      -

W~s


David W Delainey


	    David W Delainey
	    01/0212001 02:21 AM

To:      Wes CoIwellll-IOU/ECT@ECT, Faith Killen/l-IOU/ECT@ECT
cc:
Subject: 2001 Pro Forma

Guys, in addition please incorporate in each teams package - their Direct Expense/Headcount ratio to plan
average, Productivity ratio to plan average and team ROCE to plan average and any variances from 2000
to 2001 for income/expenses taking into account our most latest 2000 forecasts by group.

Wes, I assume that you will be putting together a final 2000 i/s package for me in the next couple of days.

Thanks
Delairiey
     ----------Forwarded by David W Dalainey/HOU/ECT on 01/02/2001 02:08 AM------------

L     ~t    David W Delainey
	    01/02/2001 02:15 AM

To:      SPIes ColwellTh-IOUIECT@ECT. Faith KiIIenIHOUIECT@ECT
cc:
Subject: 2001 Pro Forma

Guys, attached you will find a completed 2001 Pro Forma budget needing Lavo's review and then detailed
review with each team.

This workbook has a number of worksheets including:
	 a) pkrs o&m- this details the o&m costs for the sold peakers assuming we own throught Q2 -
charged to the 000;                                                            --

									       IGOVERNMENTU
									       *EXHIBITfl
									       145171





      b) driftPrepay - shows the detail as provided netting drift and pre-pay expenses - not all that
relevant if you assume that increasing drift will be offset by larger monetizations;
      c) Summary - overall completed income statement - note that non-external capital charges are
added back to reach EBIT;
      d) commercial income - guts of the commercial budget;
      e) group expenses - shows the detail on ENA net groups expenses, EIS/ENW/lt non-allocable,
corporate charges not allocated to specific commercial groups and bonus/other corrp;
      f) HP&L - takes a cut at HP&L income statement and balance sheet in 2001 assuming a sale by
the end of 02 - this needs some sit down work with Redmond;
      g) Balance Sheet Allocations - this defines by group the capital employed, assets to be sold and
new capital expenditures expected in 2001 - then calculates a net capital and depreciation charge;
      h) Balance Sheet - this defines the existing balance sheet with no anticipated sales or increases
by vehicle (ie) Enserco, JEDI, etc - merchant investments are charged ~ a blended rate of 15% and
strategic investments are charged @ a blended rate of 9%.

Two action items:
      a) Print out for John - Commercial Income & Summary worksheets for his comment and review &
      b) Start putting completed commercial packages together for distribution/further comment by the.~
business units in the next couple of weeks - include detailed income statement, headcount, balance sheet
(including expected increases,decreases, capital charge and depreciation), leave pages open for goals &
objectives and target customer list. I would like to review format and detail for each grbup before
distribution.

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