FYI.
---------------------- Forwarded by Osman Sezgen/HOU/EES on 04/23/2001 02:29 
PM ---------------------------
   
	Enron Energy Services
	
	From:  EES Distribution                           04/23/2001 01:29 PM
	

Sent by: Kay Chapman
To: All EES
cc:  
Subject: Organizational Announcement

Consistent with the floor talks of a couple weeks ago, we are following up 
with an e-mail describing the latest changes in our risk and back-office 
functions that are now complete.  EES,s Risk Management and the vast majority 
of EES,s Risk Controls and Operations Group will become a new group in Enron 
Wholesale Services. This group,s sole function will be to provide pricing, 
structuring, commodity risk management, logistics and back-office services 
for EES.  Both Don Black and Wanda Curry will report to the EWS Office of the 
Chairman. 

This change was driven by the explosive growth of EES and the resulting need 
to tap the systems, resources and risk expertise of the wholesale groups in 
order to continue to grow and take advantage of current market 
opportunities.  This change will allow us to more quickly capture the 
benefits of scale, process, and technology in risk, logistics and back-office 
functions from the larger Enron capability.  As discussed at the All Employee 
Meeting in March, these are important objectives, and this change allows us 
to reach those goals more quickly. 

Specifically, the following groups within the former EES Risk Management 
Group, will become a part of this new group reporting to Don Black:

- the gas, power and tariff desks,
- the options desk,
- the site profiles and consumption desks, and
- the matrix products/secondary products desks.

The DSM Group and IAM, along with its execution capability, will remain in 
EES and report to the EES Office of the Chairman. We are pleased to announce 
that Ozzie Pagan has agreed to lead this function.  Ozzie is an established 
commercial dealmaker in ENA.  He has experience in power trading, origination 
and plant development. In addition, the Services Group, which will provide 
billing, information and other retail services, led by Evan Hughes, will 
remain in EES and report to the EES OOC.  All support functions, within the 
former EES Risk Controls and Operations Group, that currently support the DSM 
and the Services Groups, will remain in EES.  The remaining parts of the Risk 
Controls and Operations Group will become part of EWS reporting to Wanda 
Curry.  As part of this change, we are pleased to add Evan Hughes and Ozzie 
Pagan to the EES Operating Committee.

In addition, the Structuring Group, led by Sean Holmes, will be re-named Deal 
Management.  The vision for this group remains the same as that discussed at 
the All Employee Meeting; however, it will also facilitate and ensure 
productive transaction interaction between EES and EWS.

We have asked, Marty Sunde, as part of his Vice Chairman role, to resource 
and lead a formal Restructuring Group to enhance or protect value in several 
key transactions in our portfolio primarily in  California. 


The newly created IT function, led by Anthony Dayao, will continue to report 
into the EES OOC but will support both EES and EWS IT requirements.

Other than these changes, the organizational structure, vision and objectives 
detailed out for EES at the All-Employee Meeting in March remain.  We need to 
continue to understand and drive deeper into our markets, manage our client 
relationships, mine our portfolio, build new products and execute on our 
opportunities.

Thanks for all your hard work.  With your help we will become the Worlds 
Leading Energy Retailer and Enron,s Leading Division.  If you have any 
questions please do not hesitate to ask