Major budget focus for today beginning in a few minutes is to have our act together for the Delainey/Dietrich EES review tomorrow - Anthony Dayao, Beth Apollo and Kerry Roper will join me for a walk through.  
 
Finalizing EIM budget will likely not get done today.  Can give you the details on why later today.  Will become obvious. 
 
Just meet with Shankman and McConnell.  Not ready to finalize EGM budget yet.  They say that their commercial guys are waiting for Jeff Johnson to get with them on details of IT development projects.  I think that Jeff has been out for a few days, but I did see him on the 3rd floor when I was down there with Shankman and McConnell.  I will leave him a voice mail message to get an update on outstanding issues from his point of view.  Jeff and Mike want to have their stuff finalized by Friday.  I will convey that timeline to Jeff Johnson. 
 
After EES budget prep meeting this afternoon, next tall order of business is expanding our receivables monetization beyond EA to other commodities.  High priorty and very short time fuse on this one, for reasons that should be obvious.  I will have all of the Operations leads and settlements leads together this afternoon, along with Ramesh Rao and others in IT who may be required to help us extract necessary info.  
 
Nice way of telling you, Greg, that I understand your desire for a page of footnotes with budget explanations for Whalley, and that in my opinion that falls at the end of the list behind some of these other things today.  I will work with Kerry on this.  I can tell you, however, that updates on budgets are not top on anyone's lists today, including Whalley's.  We will honor your commitment to get him updated information, and will provide as much detail as possible.  Best approach given the state of business today may be to provide him with the high level overview (that one page of expense and capital), state where we are in the review process with each business unit, and highlight reductions in expense and capital to date.   We can continue to provide updates to Whalley as the EES, EIM, EGM and EBS (yes, I need to coordinate with Mark P. when he is back on some changes here - confidential at this point).  Don't know how useful detailed footnotes will be for Whalley before we truly finalize the various business unit budgets.  --Sally 
 -----Original Message-----
From: Piper, Greg 
Sent: Wednesday, October 24, 2001 12:12 PM
To: Beck, Sally; Pickering, Mark; Roper, Kerry
Subject: budget questions



Some things that jump out at me on the Whalley packet page labelled Global Support Dollars - 2002 Plan vs. 2001 Forecast Variance dated 10/23/01
 
Under EGM, increase of 5,573 in operations expense and increase of 16,159 in IT development expense.  Doesnt that sound like a big jump?
 
What made EIMs infrastructure go up 2,334?
 
How is energy operations for EES down 9,092?
 
What did EES spend capital on in 2001 to make the capital IT infrastructure variance be down 19,726?
 
What is going on at Corp. with a positive IT infrastructure variance of 13,924?
 
On the front page or Whalley summary page, why did depreciation go from 62,028 to 30,124 to 57,843.  I know some of what you said Kerry but we need to make sure that Enron knew the 2001 depreciation number in the 2001 plan and that 62,028 did get depreciated accurately and that it just so happened to turn out that only 30,124 got done on our books.
 
You get the point.  I think this is what Whalley will do too with the entire packet on all pages.  I know the numbers are right, they just beg alot of questions so make sure we have an updated, very accurate cheat sheet with all the explanations so when he gets the packet today, he can follow it!
 
I assume everything ties that should.
 
Thanks.
 
GP