Ken:
Do to some problems with our email system last week, a few folks did not 
receive this update.  Just in case, here is a duplicate copy.
Michael
---------------------- Forwarded by Michael Mann/HOU/EES on 10/17/2000 08:08 
AM ---------------------------

	Enron Energy Services
	
	From:  Michael Mann                           10/11/2000 12:07 PM
	Phone No: 609-252-0907
   888-938-3908 (pager)
	



To: Kenneth Lay/Corp/Enron@ENRON
cc: Harold G Buchanan/HOU/EES@EES, Marty Sunde/HOU/EES@EES, Troy 
Henry/HOU/EES@EES, Thomas E White/HOU/EES@EES, Dan Leff/HOU/EES@EES 
Subject: UTC Sales Call

At UTC's request, yesterday Mike Jackson and I met with Kent Brittan, VP, 
Global Sourcing, and members of his sourcing group.  As you remember, we 
first met Kent when Tom White, Dan Leff, Harold Buchanan and I called on him 
two years ago.  At the time, we presented an early version of a fully bundled 
energy outsource in partnership with Fluor Daniel and a local real estate 
management firm.

Over the last two years, UTC attempted various energy procurement strategies, 
failing to execute any.  

Brittan was very pleased with the content of our revised proposal yesterday, 
and told us he would be taking the revised partnership strategy we discussed 
directly to George David, CEO.  

Brittan will also be taking the preliminary concept to UTC Corporate 
Treasury, to gain its buy in on the financing aspects of the deal required to 
support the demand side management infrastructure investments it so 
desperately needs to affect the energy  consumption reduction to which David 
committed two years ago.

Barring a problem there, it appears we have finally engaged UTC in an 
exclusive negotiating relationship that would yield a large scale outsource 
of energy supply and demand side investment operations in all the UTC 
companies, excepting Carrier.    Carrier continues to insist it be treated 
separately, and Brittan has decided to carve it out, rather than hold up the 
entire deal.  I think that strategy is part of what he will be speaking to 
David about.

I requested, and Brittan agreed, that Karl Kropic (COO) be the executive 
sponsor.

Mike Jackson who has worked on and off with UTC over the past 18 months will 
be the lead Originator for EES moving forward.