John, below are several issues I wanted to bring to your attention prior to 
finalizing merit increases for East Power.  I have also given David Oxley the 
same information in order for you to discuss this morning when you meet.  
Call me if you have any questions.

 M. Dana Davis's employment agreement will expire in February 28, 2001.  I 
imagine we will want to renew with the new salary on the employment 
agreement.  K Presto would like to recommendation that we give him a $20,000 
increase.


Rogers Herndon' s employment agreement  will expire September 14, 2001.  Do 
we want to renew earlier and roll the base salary changes (if any) into the 
employment agreement. Kevin Presto would like to give him a $15,000 increase.


Who will be responsible for John Zufferli's increase (if any ) since he 
transferred to Canada and now has been promoted to VP.



Rob Benson was given a significant increase in the global comp system at the 
insistence of K.Presto.  Kevin states that John Lavorato indicated to him 
that Benson needed to be taken care of.  With that being said Kevin would 
like to bring him up more in line with a commerical director, which he was 
just promoted to.  His employment agreement will expire 2/1/01.  So would it 
also make sense to delete him from the merit database and renew an employment 
agreement rolling in his new salary?



Finally, I need you to decide on Chris Dorland's new salary.  He is currently 
making $81,000 and I have recommended $90,000.  He is an Associate that is 
being made a commerical manager.  He was ranked superior and Presto has 
indicated that he is expecting around $100,000.  Presto finally settled on 
$95,000 provided you concur.  Our plan prior was slightly stagger salaries 
for individuals as associates promoted to commercial manager based on final 
rankings.  ($85,000 strong, $87,500 for excellent, $90,000 for superior). The 
guideline from the program is $86,000 but is left up to the business unit 
discretion.