From:                 Lavorato, John
Sent:                 Wednesday, May02, 2001 10:16AM
To:                   Delainey, David


Dave

I changed it slightly so I could sleep at night.

The top line is just a little joke from me to you.


	       Ii
	    EES.doc (24 KB)
Let me know.

Lavo


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Given (the explosive growth) explosion of EES,


Given the growth in EES it has become apparent that it is time to consolidate the risk functions between
EES and EWS. This will provide EES 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 main function is to provide these services to
EES. We have asked Rogers Herndon, currently Vice President- Trading in the Eastern Power Group, to
manage this function in the Eastern Interconnect (this includes both gas and power). Rogers will continue
to report to Kevin Presto. We have asked Don Black, formerly Vice President - EES Risk Management
and Sourcing, to manage this function in the Western U.S. 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.