To GPG Skill Based Pay Employees


Effective July 1, the Skill Based Pay structure will increase for the 
following Gas Pipeline and Gas Processing skill families:

Gas Pipeline Controls, Mechanical and Welding;
Gas Processing Instrumentation and Mechanical.

Attached are the Career Progression Charts for both Gas Pipeline and Gas 
Processing.

These increases make it possible for us to remain competitive with salaries 
paid by GPG,s peer companies.  Our Skill Based Pay structure targets the 
fiftieth percentile of our peer company market and our actual salary and 
total cash compensation continues to be in the top 10 percent.  

Once again this year, we are placing premiums on skill families that support 
the future direction of our industry.  A premium value is being placed on the 
Pipeline Controls and Processing Instrumentation skill families.  This 
premium provides an incentive to develop the skills of our current employees 
and to attract you to the controls skill family.  The premium is being placed 
on blocks 1 and 2.  We are also placing a premium on the Mechanical skill 
family as an incentive to attract and recruit skilled talent.  This premium 
is being added to the top-level mechanical block.  

In addition to these structure changes, other revisions to the SBP program 
will be effective July 1. These changes include: 

O&M Techs hired after July 1, 2000 will not be automatically moved into the 
Sr. O&M Tech category.  After attaining O&M Tech 2, the qualified employee is 
eligible to move into the Sr. O&M Tech category by responding to job postings 
to fill staffing vacancies. 

Training for developmental skills may now be company supported based on team 
needs.  Management approval is required.  Employees are not compensated for 
developmental skills.

The changes are also reflected in the 2000 SBP Program Administration Manual 
available to you through your regional director or the  GPG HR website. 
Please let me, Ann Vaughn, or your HR representative hear from you with any 
questions or comments. 

Thank you for your commitment to Enron Gas Pipeline Group.