John , I now understand your line of questioning ..... You would like Evan - he has a better handle on some of this than you might think.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/EES on 05/24/2001 12:02 AM ---------------------------


Evan Hughes
05/23/2001 08:06 PM
To:	Rogers Herndon/HOU/ECT@ect
cc:	Dan Leff/HOU/EES@EES, Anthony Dayao/HOU/EES@EES, Don Black/HOU/EES@EES, David W Delainey/HOU/EES@EES, Janet R Dietrich/HOU/EES@EES 
Subject:	EES Billing/Settlements Function

If you would like to set-up some time to review what facts exist regarding billing and settlements in EES please give me a call.  I think you and I getting together would make a lot of sense.   

We (the Services Group) have a great deal that is being rebuilt/improved but at the same time have a lot that is currently working and we are making progress on many fronts.  

Anthony D. and his team will get us closer to where we need to be once our technology issues are addressed.  In the mean time -- we need to continue finding better ways to cobble our legacy systems together.  

Bottom line -- your note is misleading...see the red and next time -- before you launch something like this -- please ask someone who is accountable for the topic you decide to discredit.  I don't think we can grow a business together by tearing down others.

I can be reached at Ext. 53311 or on my mobile at (713) 444-3125.

Thanks and talk with you soon,

Evan
---------------------- Forwarded by Evan Hughes/HOU/EES on 05/23/2001 07:30 PM ---------------------------


Anthony Dayao
05/23/2001 07:02 PM
To:	Evan Hughes/HOU/EES@EES
cc:	 
Subject:	EES Billing/Settlements Function

Evan,

I give a risk update to Rodgers and Don today.  We deviated a little bit and I gave them a high level summary of billing
and settlements (as Rodgers paraphrased below).

You might want to setup a meeting with Rodgers to bring him up to speed.  Unfortunately I won't be around.

I could be on the phone if you want.

Regards,

--anthony


---------------------- Forwarded by Anthony Dayao/HOU/EES on 05/23/2001 07:00 PM ---------------------------


Rogers Herndon@ECT
05/23/2001 12:45 PM
To:	John J Lavorato/Enron@EnronXGate
cc:	Kevin M Presto/HOU/ECT@ECT, Tim Belden/Enron@EnronXGate, Don Black/HOU/EES@EES, Vladimir Gorny/Enron@EnronXGate, Anthony Dayao/HOU/EES@EES 
Subject:	EES Billing/Settlements Function

John -

The current functional reporting structure of Billing & Settlement's through EES poses near term and long term tactical risks we  feel jeopardizes our ability to meet our goals and objectives.

Currently, Deal Capture and Risk Analysis/Reporting report through Sally Beck.  However, Settlements and Billing report through Evan Hughes (EES).  As such, the reconciliation process (Wes Colwell and Wade Stubblefield) is held hostage to any piece that breaks down.  In this structure we (ENA) are able to control the progress and performance of Deal Capture and Risk Reporting.  We are making progress on these fronts.  We are completely out of the loop re: current state of affairs on the billing side (other than it just doesn't work).  We are also out of the loop in assuring the proper approach and solutions are being  implemented.  

According to Anthony Dayao and other, there are approximately 11 different billing systems that feed CSC (we outsource billing to CSC apparently).  Billing Group spent several months attempting to scope out the process and future requirements.  This was done in conjunction with Union Finosa.  I think that approximately $6.8 MM has been spent to date on this effort w/ Union Finosa (Anthony, is this accurate).  Union Fin recently provided the group with a proposal and Anthony has negotiated 60 - 90 days to review and respond (Apparently, Billing wanted to go forward with just one week of comments).  Bottom Line:  this does not appear to be the proper approach to ensuring that we are solving our comprehensive billing/settlement issues as well as near term necessities.

PROPOSED SOLUTION:
Billing/Settlements should report to Sally Beck (dotted lines to ENA and EES)
EES can maintain customer interface through call centers and logo on invoice
Convene an immediate meeting with Evan Hughes, Anthony Dayao et. al. to summarize current state (including Union Fenosa)
Retain Accenture or KPMG to fully scope out current reality vs. business needs
Implement action plan to address long term solution vs short term necessity.

Until we can resolve this, I am afraid that 1) decisions are being made without full consideration of ENA's view of business needs and 2) ENA cannot be accountable for when and if we can ever provide monthly reconciliations and flash to actuals.  As we all recognize, unless you can reconcile the books, you really don't have a legitimate business.

John, could we convene a meeting if necessary for you to address these issues.  I will be out next week and would like to leave knowing that we are on the path to getting this resolved.

Thanks,
Rogers