Becky,

The charges to Corp. go to RAC and are based on my projections of expected 
expenses.

The charges are based on the following assumptions (percentages in the 
parenthesis show
amount of time allocated by each person (group)) to RAC:

1. Value-at-Risk Group (VaR)

MD (25%)
VP (60%)
Director (100%)
5 managers (100%)

2. Enterprise wide risk management

Manager (100%)
Associate (100%)

Currently we hired (or will shortly hire)  4 managers for the VaR group. The 
expansion of the VaR
group was planned based on the requests from RAC for more support.


Vince
 
 
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/19/2000 
01:52 PM ---------------------------


Shirley Crenshaw
12/19/2000 11:30 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:  
Subject: Re: 2001 PRELIMINARY I/C billing


---------------------- Forwarded by Shirley Crenshaw/HOU/ECT on 12/19/2000 
11:25 AM ---------------------------


Becky Pham
12/19/2000 11:13 AM
To: Shirley Crenshaw/HOU/ECT@ECT
cc:  
Subject: Re: 2001 PRELIMINARY I/C billing

Madam,

 I have a meeting with Corp tomorrow in reference to the intercompany billing 
to Corp.  They are concerned about Research allocation.  I need some back up 
to this billing.  Can you help me?  Can I get it by the end of the day to 
have it reviewed and ready for tomorrow?  Please let me know....  Thanx
---------------------- Forwarded by Becky Pham/HOU/ECT on 12/19/2000 11:08 AM 
---------------------------


Stephen Schwarzbach@ENRON
12/18/2000 08:55 AM
To: Becky Pham/HOU/ECT@ECT
cc:  
Subject: Re: 2001 PRELIMINARY I/C billing  

Becky, 
I am discussing these allocations with the appropriate groups within 
Corporate, as they will be the ones accepting/rejecting these charges.  I am 
forwarding this to the appropriate individuals within the Corp. departments 
for their review.  So, do not consider Corp as "in agreement" until you hear 
back from me.  I also reviewed what we are receiving in 2000 and I have a few 
questions relating to both 2000 and 2001:

1. What is ESource?
2. What is ENA Ops Direct?
3. What is ENA OCC Direct?
4. What is ENA CO 021?  Is this Vince Kaminsky's group?  The charges for 2000 
have been about $16k and $20k to the RAC group, so at that rate, I would 
expect 2001 to be no more than $250k-$300k, but the plan amount you sent is 
$1.9MM.  I will need some detail on this.

Thanks,
Steve





Becky Pham@ECT
12/14/2000 05:15 PM
To: Stephen Schwarzbach/Corp/Enron@Enron, Regina Hawley/GPGFIN/Enron@ENRON
cc:  

Subject: 2001 PRELIMINARY I/C billing

Attached is the 2001 PRELIMINARY inter-company billing.  ENA will be billing 
plan numbers for all departments except for External Legal and External Tax, 
which will be billed base on actual.  A quarterly review will be done to 
determine the variance between plan vs. actual amounts.  If the variance 
amount is material, we will adjust the billing to your Business Unit 
accordingly.  

If you have any questions, call me at 5-7094.  Please review this billing, 
and notify me with any questions by Wednesday, December 20, 2000; otherwise, 
it is assumed that you agree to the intercompany billing from ENA.  

You are the only person in your Business Unit receiving this invoice.  If 
this invoice needs to go to someone else in your business unit,  please 
forward to the correct person and can I be included in the forward e-mail?