Was Jim asking questions about the number of employees in ENW who would remain with the Estate?  
 
Summary looks good - our meeting with Mike Deville on 2002 budgets is scheduled for tomorrow.  --Sally

-----Original Message-----
From: Piper, Greg 
Sent: Thursday, January 03, 2002 4:19 PM
To: Fallon, Jim
Cc: McMahon, Jeffrey; Jones, Robert W.- HR Exec; Detmering, Tim; Beck, Sally
Subject: Current ENW 


A quick summary on where ENW is relative to NetCo and the Estate.
 
Some quick numbers first (all numbers are exclusive of the pipelines and Steve Hotte's group).  
 
We will have about 117 employees remaining in the estate on the application side (Perlman) after about 100 go with NetCo.  We will have 121 employees remaining with the estate on the infrastructure side (Rub for now) after 60 go with NetCo.  We will have 9 on estate EOL IT (that will end up with the estate application group) after 40 go with NetCo.  We will have about 48 from EA operations (Hall) remaining with the estate after about 170 go with the NetCo.  We will have a few EOL operations people after about 40 go with NetCo.  We also have individuals remaining on the operations side for EGM and EIM under Kevin Sweeney.  We also have estate employees under Dayao with EES IT who have gas and power skills as well as EES operations people under Beth Apollo.  These numbers are all fluid and are not final as the NetCo deal and the people associated with it ebb and flow.  Currently, the estimate for ENW employees going to NetCo from all IT, operations and EOL operations is approximately 410.  Remaining in the estate to support non-pipeline IT and operations is approximately 453.
 
As we discussed this morning, we are trying to determine if the approximately 453 remaining ENW employees are the right number of people for the estate (EA, EGM, EIM, EBS, EES, Corp, etc.) for IT and operations as well as if they are the right people period.  We have draft org charts for estate infrastructure and estate application and are doing a skill set review of the employees in IT who are slated to stay with the estate but until NetCo is a done deal and the estate wholesale unit finalizes business plans, most of the IT estate people will be a pool of resources supporting both efforts.  Also, everyone in ENW knows which list they are on.
 
Also, we have spent money on additional hardware and a particular Unify license now (did it through Bowen and Weil as ordinary course) so that effective duplication of all wholesale applications can be completed hopefully by the end of January.  Therefore, the plan is to split ENW people out the day a NetCo deal gets done, split ownership of hardware the day a NetCo deal gets signed, agree that NetCo owns all the IP with all the Enron developed applications and they get a complete copy and the estate has a free license back in perpetuity and gets a copy of the same set of applications the day a deal gets done. We will get that duplication of all those applications done by the end of January (target date anyway). We will also begin a 6 month services agreement the day a deal gets signed.  Even though we will do the above, NetCo will still have their hardware and their applications sitting on that hardware initially in estate data centers (34 ECN, 9 ECS and Ardmore) and NetCo will also be on the estate network.  Hopefully NetCo will transition off those in that 6 months, hence the need for the services agreement.
 
We also submitted a 2002 cash budget to Corp. based on our estimate of remaining headcount, licenses, etc. but until we see what it is we are supporting, it is a placeholder.
 
Your thoughts on this?
 
Continue to include Sally in all your meetings if possible so she can coordinate the right support across your complete wholesale efforts going forward.
 
Thanks.

Greg Piper 
 


  
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