In the past few months, Enron has received numerous requests from other 
companies to share some of the processes and systems that we have developed 
within HR.  Also, several new businesses have been created recently by 
consulting companies to pursue what some financial analysts believe is a huge 
untapped market in aggregating HR services.  Recently, we completed an 
internal review to consider what role Enron could play in this arena and have 
decided to explore some very specific external opportunities.  Due to the 
time commitment required to pursue these opportunities, we are assigning 
dedicated resources to this effort.  Effective immediately, the HR community 
will have three major areas of focus that will be working together in order 
to optimize HR transformation and commercialization.  Taking the lead roles 
will be myself, Mary Joyce and David Oxley (see below and attached chart).

? I will lead this new effort in addition to continuing to lead those areas 
of HR that are our prime candidates for commercial opportunities.  Reporting 
to me on this commercialization effort will be:  Brad Coleman with the 
overall lead; Andrea Yowman who will focus on software applications such as 
PEP, Expertfinder and Global Compensation; Sarah Davis who will focus on 
Worklife; Elyse Kalmans who will focus on Community Relations; Cynthia Barrow 
who will focus on Benefits and Wellness; and Yevgeny Frolov and Dan Brown who 
will focus on E-learning and Talent Management.  I will continue to report to 
Steve Kean.

? David Oxley will take the overall lead for HR across all business units 
focusing on continuing to increase the value HR brings internally to Enron.  
The networked recruiting, Organization Development and Training and Business 
Unit Compensation consulting functions, the Global PEP team, as well as the 
generalist consulting responsibilities for all Corp. groups, will report 
directly to David. The HR leads for EWS, EES, EBS, ETS and EGAS will report 
jointly to their business unit OTC,s and to David from a functional HR 
perspective. In this regard David will now report to Steve Kean.

? Mary Joyce will add Global Information Management, Corporate Compensation 
services and Reporting/ Analysis, to her current Executive Compensation 
responsibilities.  Kathy Schultea, Felecia Acevedo, Cindy Ward and Suzanne 
Brown will report into Mary,s organization. Mary will continue to report to 
Steve Kean.

? With Drew Lynch,s promotion to COO Metals and David,s increased 
responsibilities, Robert Jones will take the HR lead for EWS Americas. Robert 
will report to the EWS OTC. Jon Chapman has been appointed head of HR for 
EEL, based in London, and will report to the EEL OTC. Both Robert and Jon 
will report to David from a functional HR perspective.

Additional realignment of resources will enable our team to further improve 
daily employee services, partner with Business Unit initiatives and maximize 
opportunities for commercialization.  These modifications are as follows:  

? Scott Gilchrist will lead HR for the newly formed EGAS.  As such he will 
focus his attention on the asset positions in South America, Latin and 
Central America, the Middle East and Asia.  The European assets will continue 
to be a part of EEL.  Scott will also work closely with Rebecca McDonald and 
Sandip Mallick in relation to our assets in India.  Scott will report to the 
EGAS OTC, Rebecca McDonald and David as above.

? Michelle Cash has agreed to take the lead of the Corporate OLER function 
for an interim period to determine how it should operate and be organized.  
She will report to me for this particular function, but of course will remain 
primarily a part of the EWS legal function reporting to Mark Haedicke.  

? Sheila Walton will lead the HR Generalist activities for all Corp 
functions.  Jo Ann Hill, and all of the corporate generalist functions 
currently under Jo Ann, will report to Sheila Walton.  Sheila will continue 
to report to David.

? Sarah Davis will add the Click at Home program to her current 
responsibilities, and will continue to report to me.