Dan, sounds like we are moving backwards - but these guys tend to jump the 
gun at times.  If it is not possible for these orgs to work together lets not 
try and force them (ie) we will manage our own business and contract with 
NEPCO when and if it makes sense.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 02/01/2001 
08:22 AM ---------------------------


Brian Redmond
01/31/2001 05:56 PM
To: David W Delainey/HOU/ECT@ECT
cc:  
Subject: Re: Reviews Plus  

Dave,

Yes,  I've got these set up.

On a separate topic, I received a visit from D. Liebert (working for Dan L. 
on EE&CC) to discuss the memo I sent out on the Tech Services Group.    
During the discussion we identified several areas where EES' view diverges 
from the view in my memo that ENA will manage its own technical risk and will 
be supported by EE&CC.      Currently, EES is headed in the following 
direction:

1. EE&CC will manage all technical risk in Enron as part of a consolidated 
technical risk book. 
2. EE&CC will be the sign off on all DASH's with respect to technical risk.
3. EE&CC is still trying to work out how their services will be charged to 
the business units - not sure what "cost" is.

This central decision is (1.) above.  If EES is going to manage ENA's 
technical risk then the balance between managing engineering cost and 
managing technical risk will be eliminated.  Essentially we will be back to a 
ENA (origination) vs. EE&CC (construction) relationship where we argue about 
how much money they are spending and the amount of overhead that is included 
in their "cost".  Your thoughts on this?

We didn't draw any lines and agreed to keep discussing to make this work.  I 
would suggest that either I can meet with Dan L. to understand his views or 
that we have another joint meeting with you and Dan's team to resolve.

Regards,
Brian








David W Delainey
01/31/2001 03:11 PM
To: Brian Redmond/HOU/ECT@ECT
cc:  
Subject: Reviews

Brian, I assume that you are doing the review for Bob Virgo, Wayne Mays, Jean 
Mrha and Julie Gomez.

Regards
Delainey