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Subject: Fwd: Revised: Organizational Changes






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Subject: Revised: Organizational Changes
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 (Embedded     Enron North America Corp.
 image moved
 to file:      From:  Enron NA Office of the Chairman
 pic13759.pcx) 12/16/99 10:22 AM






To:   All Enron North America
cc:
Subject:  Revised: Organizational Changes


To:  Enron North America Corp.

From:  Cliff Baxter and Kevin Hannon


In July, as part of the Enron North America (ENA) reorganization, the
implementation of several objectives were highlighted as critical to the
continued growth of ENA including: 1) accelerate the development of our 
people,
2) significantly expand our customer network and associated markets, and 3)
accelerate and enhance the information flow between groups, both within ENA 
and
across Enron. Consistent with these objectives and with the corporate goal of
fostering ?One Enron?, we would like to announce the following organizational
changes in the Coverage/Origination Groups and the Commercial Transactions 
Group
within ENA.

1) Coverage/Origination:

To ensure a consistent strategy, the free flowing of resources and product
technology and the appropriate focus in the midstream and downstream 
businesses,
the following coverage/origination groups will be consolidated under the
leadership of Dave Delainey :
        a)      the Eastern and Western U.S. Midstream Coverage/ Origination
        groups which focus on energy, finance and power development solutions
        for electric and gas utilities, municipals, co-ops, energy service
        companies and IPP?s;
        b)      the Downstream Coverage/Origination groups which focus on
        delivering a broad range of products and services to the heavy
        industrial customers including  pulp and paper, chemicals, plastics,
        refined products, metals and mining, heavy manufacturing, industrial
        gases, fertilizers, transportation, textiles and glass manufacturing 
the
        Eastern and Western U.S. Midstream Coverage/ Origination groups which
        focus on energy, finance and industries.

Downstream Coverage/Origination

As energy deregulation continues in North America, it is becoming clear that 
the
heavy industrial segment will be an important customer market for both ENA and
Enron Corp.  Further, it is clear that ENA can significantly expand its
industrial customer network and create more innovative industrial solutions by
having a group that can deploy all the capabilities of Enron Corp.  Against 
this
backdrop, the Downstream Coverage/Origination function will expand its product
offering to include not only ENA?s existing energy commodities, energy 
services,
finance, assets and pulp and paper capabilities but also EES?s energy
outsourcing capability and Global Fuel?s chemicals, plastics and refined
products risk management capability.  These additional capabilities will be
offered in conjunction with EES and the Global Fuels groups. Given the size 
and
importance of this Enron initiative, Greg Piper will be returning from 
Portland
to manage this business. Under Greg?s leadership, the Downstream Origination
effort will be segmented into three sub-groups given the nature of these
industries and our product offering:
        a)      Pulp and Paper ? Edward Ondarza will continue to manage the
        coverage activities in the Pulp and Paper business. This group will be
        responsible for the provision of innovative
        products and services in the pulp and paper industry including the
        provision of paper risk management products;
        b)      Chemicals, Plastics and Refined Products ? We have asked Jim
        Ajello to lead the coverage activities in this business.  This group
        will be responsible for the provision of innovative products and
        services in the chemicals and refined products industries;
        c)      Non-Integrated Industrials ? Bruce Garner, formerly leader of
        Bankers Trust?s global metals and mining group in London, has joined 
ENA
        to lead the coverage activities in this business.  This group will be
        responsible for the provision of innovative products and services for
        the metals and mining, heavy manufacturing, industrial gases,
        fertilizers, transportation, textiles and glass manufacturing
        industries.




Midstream Coverage/Origination

        a)      Eastern Coverage/Origination ? This group? activities will 
focus
        on energy, finance and power development solutions for electric and 
gas
        utilities, municipals, co-ops and energy service companies in the
        Eastern Interconnect. We have asked  Janet Dietrich to assume the
        leadership of this group;
        b)      Western Coverage/Origination ? This group?s activities will
        focus on energy, finance and power development solutions for electric
        and gas utilities, municipals, co-ops and energy service companies in
        the WSCC. They will also continue to manage all Qualified Facilities
        (QF) restructuring opportunities in the Western U.S.  We have asked
        Chris Calger to assume the leadership of this coverage group. Chris 
will
        relocate to Portland from Calgary where he currently leads the 
Canadian
        downstream origination efforts;
        c)      IPP Merchant Coverage/Origination ? This group?s activities 
will
        focus on the provision of structured energy, finance and asset 
solutions
        for the emerging merchant power generators who control large 
portfolio?s
        of merchant power generation either through development or 
acquisition.
        We have asked  Mike Miller to assume the leadership of this group.  In
        addition, Mike will continue to manage the power development 
activities
        in the Eastern Interconnect;
        d)      Eastern QF Restructuring ? This group will focus on the QF
        restructuring opportunities in the Eastern Interconnect including the
        existing restructuring and re-capitalization of the East Coast Power
        assets.  We have asked Dave Duran to assume the leadership of this
        business. Greg Blair, formerly of Enron Asia?s development group, Doug
        Clifford, formerly of Citizens power, and Dick Lydecker, formerly of
        Cogen Technology, will join this newly formed business.

2) Commercial Transactions:

The Commercial Transactions Group (CTG), co-headed by Ray Bowen and Jeff
Donahue, was formed to provide a centralized resource for the execution of
transactions within ENA ? and thereby, improve ENA?s efficiency in executing
transactions and free-up the origination groups to increase their intensity of
client coverage.  CTG consists of six primary functions: Transaction
Development, Capital Structuring and Portfolio Management, Commodity 
Structuring
and Transportation, Transactional Support/Accounting, Technical Analysis and
Upstream Asset Management.

The Transaction Development Group will be responsible for deal leadership,
execution and optimization of all aspects of a transaction in conjunction with
the originator. The function will be divided into four teams, each of which 
will
be dedicated to between two and four origination groups.  This dedication to
specific groups should provide a closer link, better service and greater
accountability with the origination groups; however, the CTG resources are
designed to be a fungible and flexible resource allocated to the highest value
transactions across the coverage functions:

        a)      Midstream Transaction Development will be dedicated to the
        Eastern and Western Coverage/Origination Groups.  The senior members 
of
        this group include Billy Lemmons, George McCormick, Erin Norris and 
Russ
        Porter. Billy Lemmons joined Enron in 1992.  Most recently, he was the
        Vice-President of Capital Structuring and Risk Management for EES. 
Russ
        Porter joins us today from Dynegy where he was a manager with
        responsibilities for power origination.
        b)      Downstream Transaction Development will be dedicated to ENA?s
        industrial origination efforts in Pulp and Paper, Petrochemicals and
        Refining, Environmental Energy, Metals and Mining and other industries
        as coverage is established.  The senior members of this team include
        Rodney Malcolm, Jay Boudreaux, Finley Biggerstaff and Chris Helfrich.
        We anticipate announcing two to four more additions to this team 
within
        the next few weeks.
        c)      Generation Transaction Development will be dedicated to the 
IPP
        Merchant Services and power plant development and QF Restructuring
        groups.  The senior members of this team include Thomas Suffield, Andy
        Kelemen, Kelly Mahmoud and John House. Thomas Suffield joined Enron in
        1996. Most recently, he was the Vice-President of Origination for the
        Latin American group in Azurix.  We anticipate announcing two more
        additions to this team within the next few weeks.
        d)      Upstream Transaction Development will be dedicated to the
        Producer Finance, Coal and Gas Assets groups.  The senior members of
        this team include Brad Dunn, John Curtin and Chris Hilgert.  We hope 
to
        announce the addition of at least one VP to this group prior to 
yearend.

Ray Bowen will have primary oversight responsibilities for the Upstream and
Downstream Transaction Development teams with Jeff Donahue having primary
responsibilities for the Midstream and Generation teams.  Andrea Reed will
continue to head Capital Structuring and Portfolio Management: all junior
commercial resources within the Transaction Development teams will have dual
responsibilities to both their Transaction Development teams and to the 
Capital
Structuring Group.  The remaining four groups within CTG will remain largely
unchanged.  In addition, the Origination and the Transaction Development teams
and their respective origination groups will be located together.

We believe that these changes will significantly enhance our market coverage 
and
industry knowledge in all ENA?s markets particularly in the industrial 
markets.
It will also provide a closer partnership and accountability between the
Coverage/Origination Groups and the CTG Groups.

Please help us in continuing to build on the success we have enjoyed in North
America by working with us to implement these changes.

 - pic13759.pcx