Nicki,

Can you believe that we will be working together again soon?  Chris, Claire 
and Michael were up last week for lunch and we all came by to see you but of 
course you hadn't moved yet.  It will be fun.

On the memo, I am fine with it and like the changes Mark put on the drafts.  
I do have 1 issue to talk to him about and that is the emissions piece which 
now appears to have separated from the coal group.  I will talk to him about 
it and see why that has changed but other than that business call, it is 
fine.  I was just with Skilling and I think he is ready for it when you get 
everyone's comments.

Mike




Nicki Daw@ENRON
07/28/2000 11:41 AM
To: Greg Whalley/HOU/ECT@ECT, Jeffrey McMahon/HOU/ECT@ECT, David W 
Delainey/HOU/ECT@ECT, Mike McConnell/HOU/ECT@ECT, John J 
Lavorato/Corp/Enron@Enron
cc: Liz M Taylor/HOU/ECT@ECT, Sue Ford/HOU/ECT@ECT, Kay Chapman/HOU/ECT@ECT, 
Cathy Phillips/HOU/ECT@ECT, Kimberly Hillis/HOU/ECT@ect, Lauren 
Urquhart/LON/ECT@ECT, Barbara Lewis/HOU/ECT@ECT 
Subject: DRAFT Announcement for review

Can you please review the following announcement regarding Enron Global 
Markets and pass back any comments?
Thanks
Nicki
___________________________________

As evidenced by an exceptionally strong performance in the second quarter, 
Enron,s wholesale energy businesses in North America and Europe continue to 
experience tremendous growth.  The opportunities to continue to grow our 
natural gas and power businesses have never been better and it is critical to 
Enron,s future success that we remain focused on expanding these businesses 
and maintaining the strong momentum we have in these markets.

It is equally important that we continue to develop new businesses outside of 
gas and electricity, which can make significant contributions to our earnings 
growth.  We have made significant progress in developing these businesses in 
North America, Europe, and most recently in our new Net Works business unit.  
Included in these developing businesses are our efforts in crude and 
products, coal, emissions, insurance, currency, equity trading, interest 
rates, paper and pulp, and metals.

While significant progress has been made in these efforts we need to 
accelerate the growth in these new businesses while continuing to 
aggressively expand our core gas and electricity businesses in North America 
and Europe.  In order to accomplish these two objectives and to capitalize on 
the increasingly global opportunities in these new businesses we are today 
announcing the formation of a new business unit ) Enron Global Markets.  This 
new business unit will focus on markets and commodities which are global in 
scope, but outside our traditional gas and power markets.  This new core 
business unit will operate in parallel with and in close coordination with 
the North American and European businesses.

Enron Global Markets will be headed by Mike McConnell, President and Chief 
Executive Officer, and Jeff Shankman, Chief Operating Officer.  They will 
report to Mark Frevert who will be Chairman of Enron Global Markets, in 
addition to retaining his current responsibilities as Chairman and CEO of 
Enron North America and Chairman of Enron Europe.  Mark, Mike and Jeff will 
comprise the Office of the Chairman for Enron Global Markets.

Included in this new business unit and reporting to the Office of the 
Chairman will be the following businesses and their leaders:
- Global Crude and Products:     John Nowlan
- Coal:         George McClellan
- Currency, equities, interest rate and agricultural trading:  Gary Hickerson
- Insurance and weather:      Jere Overdyke

Enron,s metals business will remain the responsibility of Enron Europe and 
the Paper and Pulp business will continue to reside in North America.  
Emissions trading is still primarily a North American activity and will 
report into John Lavorato.


With the departure of Mike McConnell from Enron Net Works, we are pleased to 
announce the following appointments in that business unit:
- Jeff McMahon: President and Chief Operating Officer
- Louise Kitchen: Chief Commercial Officer
- Philippe Bibi:  Chief Technology Officer

Jeff, Louise and Philippe and Greg Whalley will comprise the Office of the 
Chairman for Enron Net Works.

With Jeff Shankman,s departure from Enron North America,s natural gas 
operation, all of Jeff,s direct reports will report to John Lavorato.