David W Delainey
	 05/02(2001 09:12 AM

To:
cc:
Subject:

       John J LavoratolCorp/Enron

John, please get back with any comments.


EES.doc

Regards
Delainey





Given the explosive growth of EES, it has become apparent that it is time to consolidate the risk functions
between EES and EWS. This will provide EBS with the systems, resources and risk expertise of the
wholesale energy groups necessary for it to continue to grow and take advantage of current market
opportunities.

With this in mind and in agreement with the management of EES, two new risk groups inside Enron
Americas will be formed to provide EES with pricing, structuring, retail and wholesale commodity risk
management, logistics and back-office services. These groups sole purpose is to provide these services to
EES. We have asked Rogers Hemdon, currently Vice President- Trading in the Eastern Power Group, to
manage the provision of these gas and power services in the Eastem Interconnect. Rogers will continue to
report to Kevin Presto. We have asked Don Black, formerly Vice President - EES Risk Management and
Sourcing, to manage the provision of these gas and power services in the Western Council. Don will
manage this group from Houston and will report to Tini Belden.

These groups will work very closely with EES to pursue shared goals while ensuring close coordination
with the wholesale gas and power trading organizations.